LONCIN MOTOR CO.LTD.
ENVIRONMENTAL
SOCIAL
AND GOVERNANCE
(ESG)REPORT 2024
STOCK CODE：603766
CONTENTS
LONCIN'sSustainability Policyand Performance Data
ESG Strategy and VisionKey Performance Indicators
Environmental Initiativesfor Green and DigitalDevelopment
Social Initiatives andInnovative Development
Human Resources Development
Technology-Empowered Industrial Upgrade Driven by Innovation
Rural Revitalization and Community Outreach
Compliance andTransparent Governance
Reinforcement of Compliance and Corporate Governance StructureTransparent Dialogue Targeting Specic Stakeholder Groups
Deliberate Planningand Long-term Vision
Targets Set for the 2030 VisionCooperation Build-up for Global Presence
IndexKey Performance
Green Intelligent Manufacturing and Low-carbon ProductionEcological Conservation and Responsible ContributionsPioneering Eorts to Address Climate Change
Appendix
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03-0809-12
14-2324-2829-31
34-4142-4546-48
50-5859-64
67-6866-66
70-7172-74
LONCIN's Sustainability Policy and
Performance Data
ESG Strategy and VisionKey Performance Indicators
Green development is a win-win that creates universal well-being and allows moreparticipants to realize their self-values. On this path of continuous innovation, we lookforward to joining hands with more peers to make the world a better place!
At this critical moment when LONCIN is embarking on anew journey of green intelligent manufacturing, I would liketo present the ESG Report for fiscal 2024 on behalf of themanagement of the Company.The year 2024 was extraordinary and also a milestone inthe history of the Company's development. There weresignificant changes in the Company's actual controllers andmajor shareholders, and corporate governance was improvedunprecedentedly.The Company adhered to the development strategy of “FourTransformations and One Boost” toward a positive transitionto electrification, intelligence, internet connectivity, andecologization, with steady growth of businesses as a result,and revenue, in particular, has hit a record high. Guided by thevision of “A Leading Brand with Low-carbon Power Systemand Intelligent Products”, the Company successfully developedan all-terrain vehicle equipped with hydrogen fuel batteriesand the purely electric intelligent unmanned platform SMP500,etc. Additionally, the Company continues to optimize theenvironmental performance of traditional fuel engines. VOGElaunched the rst full-scene ecological AI locomotive system inthe motorcycle industry - “Jiyu OS” version 3.0?, which bringsa new intelligent travel experience to users. The Company wasawarded titles such as “National Green Factory”?.1 VOGE's “Jiyu OS” deeply integrates with DeepSeek, opening a new era of intelligent motorcycle transportation https://www.loncinindustries.com/Group/NewsDetails.aspx?catid=7|68|80&id=21468229902 LONCIN was awarded the title of “National Green Factory”https://www.loncinindustries.com/Group/NewsDetails.aspx?catid=7-68-80&id=21468229843 Announcement on the action plan of “Improving Quality, Increasing Eciency and Focusing on Returns” by Loncin Motor Co., Ltd.https://notice.10jqka.com.cn/api/pdf/9853c7b1ccd46cb3.pdf4 “33618” Chongqing aims to build a modern manufacturing cluster in the next ve yearshttp://cq.people.com.cn/n2/2023/0606/c365402-40445291.html
ESG Strategy and Vision
CHAIRMAN'S ADDRESS
Meanwhile, the Company also highly values investor returnsand actively contributes back to investors through cashdividends, shares operating results with investors, and bringslong-term stable investment returns to investors. Since itslisting in 2012, its annual cash dividend amounts to more than30% of net profit attributable to shareholders of the listedcompany in the year, with cumulative cash dividends of RMB
3.996 billion (inclusive of dividends in the 2024 distribution
plan), accounting for 45.07%? of cumulative net profitattributable to shareholders of the listed company..The year 2025 is one to start a new chapter and to makegreater achievements. Under the leadership of President ZuoZongshen, the Company will further enhance its governanceand take the initiative to incorporate into the nationalstrategies, with Chongqing “33618” modern manufacturingcluster system? as its focus, the stock optimization as itsmanagement technique, and the incremental breakthroughas its development orientation in accordance with therequirements of “Four-chain” integration and “Four-side” synergism. We will vigorously uphold the principleof “Standardization, Leaning, Automation, Digitalization,Visualization and Intelligence” to build a digital intelligentfactory and a future factory. Focusing on the main businesses,we will start the replacement and integration of motorcycleassets and businesses. We have the ambition to build thekernel of the motorcycle industry by expanding the market
share of VOGE high-end brand and developing new energyrobot motorcycles. We will also double efforts to plan andbuild overseas factories to realize the transition from “ProductsAbroad” to “Manufacturing Abroad” and “Brand Abroad”.Through technological innovation, we will promote the globalpresence of our brand value and provide smarter choices forglobal users with green and intelligent products and services toenhance the competitiveness and inuence of the Company inthe global market, striving to become the industry pacesetteron all fronts.All things that grow live in harmony and benefit from thenourishment of Nature. I sincerely appreciate the dedicationof our employees and business partners, and the concernof friends from all sectors! It is your support and trust thatsecures the Company’s steady progress on green intelligentmanufacturing. Green development is a win-win that createsuniversal well-being and allows more participants to realizetheir self-values. On this path of continuous innovation, welook forward to joining hands with more peers to make theworld a better place!
Chairman of Loncin Motor Co., Ltd.
Dear colleagues, business partners, and friends from all sectors of society:
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Period Covered
This report covers the period fromJanuary 1st, 2024, to December 31st,2024. Some of the statements and dataare not within the above period and willbe explained when involved.
Organizations CoveredThe reporting entity is Loncin Motor Co., Ltd.,including more than 20 subsidiaries such asChongqing Loncin Motor Co., Ltd., ChongqingLoncin Engine Co., Ltd., etc. The financialdata used is from the audited annual reportof the Company, and other data is fromofficial documents and statistical reports ofthe Company (previous years' data should bebased on the disclosure in this report).
DenitionsFor the convenience of presentationand readability, “Loncin Motor Co.,Ltd.” is also referred to in the reportas “LONCIN”, “the Company”, or “we”.
Referenced StandardsThe preparation of this report is aboutGRISustainability Reporting Standards(GRIStandards) issued by Global SustainabilityStandards Board (GSSB),InternationalFinancial Reporting Sustainability DisclosureStandard No. 1 - General Requirements forDisclosure of Sustainability-related FinancialInformation(IFRS S1) andInternational FinancialReporting Sustainability Disclosure StandardNo. 2 - Climate-related Disclosure issued by
International Sustainability Standards Board(ISSB),Sustainability Reporting Guidelines forListed Companiesissued by the ShanghaiStock Exchange, and a series of relevantstandards issued by the Task Force onClimate-related Financial Disclosures (TCFD),and it also discloses LONCIN's contributions tothe United Nations Sustainable DevelopmentGoals (SDGs).
PublicationThis report is published in both Englishand Chinese, and the Chinese text shallprevail in case of ambiguity between theversions. You can download and read thePDF electronic version of the report onthe Company's official website (https://
www.loncinindustries.com/) and the
website of the Shanghai Stock Exchange(http://www.sse.com.cn/) to obtain moreinformation about our environmental,social, and corporate governance.
Contact for InquiriesAddress: Loncin C, No. 116, JuyeRoad, Jiulongyuan C, JiulongpoDistrict, ChongqingTel: 023-89028829Postcode: 400052Fax: 023-89028051Email: service@loncinindustries.com
This report, released annually, is the second ESG report publicly released by LONCIN (stock code: 603766.SH), aiming to respond tostakeholder expectations and comprehensively demonstrate the Company's philosophy, actions, and achievements in environmental, social,and corporate governance. This report has been reviewed and approved by the Board of Directors to ensure that there are no untrue records,misleading statements, or material omissions in its contents.
Basics of the Report
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Loncin Motor Co., Ltd. was established in 1993, listed on theShanghai Stock Exchange in 2012 (SH: 603766). Headquarteredin Chongqing, the company has a workforce of 10,529 employees,an asset size of RMB 16.089 billion, and an annual operatingincome of RMB 16.822 billion, of which overseas income accountsfor 64.74%. It has (controlling) shareholdings in more than 20companies all over the country; its products are sold popularlyin more than 100 countries and regions all over the world; andthe number of distributors is more than 2,000. The Company'smain products focus on motorcycles, engines, general-purposepower engines, small household generator sets and gardenmachinery products, digital energy products, etc. In 2024,motorcycle production and sales ranked the top 2 in the industry,and the exports ranked first in the industry; motorcycle enginesales ranked the top of the industry, and general machineryexport exchange ranked the top of the industry; the enginesales ranked the top of the industry. Strategic partnerships havebeen established with globally recognized companies such asBMW, TORO, and Cummins. It owns three independent brands:
“LONCIN”, “VOGE” and “BICOSE”. The two brands “LONCIN”and “KINLON” are both well-known trademarks in China.LONCIN is the first enterprise in the industry to pass thenational safety technology exemption certification formotorcycles. LONCIN's technology center is a “NationalEnterprise Technology Center”, and it has two “NationalAccredited Laboratories” and “National Industrial DesignCenter”. It is also a “National Intellectual Property DemonstrationEnterprise”. LONCIN will continue to promote industrialupgrading, build the optimal manufacturing base for globalhigh-end motorcycles and engines, and move towardsintelligent, sustainable, and high-quality development.
Company Overview
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in 2024
, LONCIN's EP series of portable energy storage power supplieswere launched in Amazon US, Europe and Japan, realizing the breakthrough ofe-commerce channel sales. In December of the same year, LONCIN's controllingshareholders and actual controllers changed signicantly, and the new shareholderstructure brought new vitality and opportunities to the Company, opening a newchapter in the development of LONCIN.
……
in 1993
, the predecessor “Chongqing LONCIN Transportation Machinery” wasestablished, and the rst motorcycle engine was listed on the market.
in 1998
, the rst motorcycle was listed on the market.
in 2001
, the rst general-purpose gasoline engine was listed on the market.
in 2002
, LONCIN motorcycle was recognized as a “Well-known Trademark in China”.
in 2004
, LONCIN Motorcycle was awarded the title of “Famous Brand in China”.
in 2005
, LONCIN started to cooperate with BMW in Germany, and theLONCIN technology center was recognized as “National Technology Center”.
in 2007
, LONCIN passed the motorcycle national safety technologyexemption certication.in 2012
, it was successfully listed on the Shanghai Stock Exchange.
in 2015
, it signed a whole vehicle strategic cooperation agreement withBMW.
in 2018
, it released its high-end brand for motorcycles, VOGE.
in 2021
, New Vision·New Mission·New Values was released.
in 2022
, the company launched the electric motorcyclebrand “BICOSE” and released its rst electric motorcycle,the Real5T.
History of Development
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ESG-Related Recognition
①In 2024, the Company was awarded the title of “National Green Factory” by the Ministry of Industry and Information
Technology.
②In 2024, the Company was awarded the title of “The Listed Company with the Most Growth in Large Consumption” in
the 14th China Listed Company Reputation Ranking.
③In 2024, the Company was awarded the title of “2024 Listed Company with Growth Value” in the 9th Golden Sail Case
of the 21st Century Capital Market.
④In 2024, the Company was listed in the 2024 EDGE AWARDS Innovation Awards as a “Pioneer of the Year in Going
Overseas”.
⑤In 2024, the Company was honored as the “Best Listed Company in Investor Relation Management” in the 2024 EDGE
AWARDS Innovation Awards.
⑥In 2024, the portable energy storage power supply EP600 won a gold medal at the French Design Awards.
⑦In 2024, the portable energy storage power supply EP600 won a platinum medal at the American Good Design Awards.
⑧In 2024, the Company won the bronze award at the China Import and Export Fair.
⑨In 2024, Chongqing top 100 enterprises，Chongqing top 100 private enterprises, Chongqing top 100 manufacturing
enterprises, and Chongqing top 100 private manufacturing enterprises.
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Our strategy:
Focus on “Motorcycle +General Purpose Engine”Business, “Bigger andStronger, More Specializedand Thorough”.
Our vision:
A Leading Brand with aLow-Carbon Power Systemand Intelligent Products
Our mission:
Technology-focused,Innovation-driven fora Better Life
Our values:
Strengthening the Country ThroughIndustrial Development, Puttingthe Customer First, and AchievingCommon Prosperity
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ESG Key Performance Data
In 2024, the Company made signicant achievements in a number of areas,including economic, environmental, social, and corporate governance, demonstrating
its excellence and strong commitment to sustainable development.
Economic performance:
In 2024, the company realized anoperating income of RMB
16.822
billionan increase of
28.74%
compared withthe same period last yearand taxes paid of RMB
914,491,700
.Of these, the sales volume of themotorcycle business exceeded
1,823,000
units, representing a
30%
growth compared with the sameperiod last year,and the export scaleranked rst in the industry.The Company's brand influencegradually increased and becomeapparent, and the growth rate ofrevenue from its brands is 1.8 timesthe growth rate of total revenue. Inaddition, the Company continuedto optimize cost management andimprove operational efficiency toensure good economic benefits andshareholder returns (e.g., 7 newstandard process compilations,2 automated production lineupgrades in the workshop, and an
8.28% increase in individual hourly
eciency).
Environmental performance:
In 2024, the Company's total annualwater use amounted to
46,800
tons;greenhouse gas emissions of
155,300tons of CO2 equivalent;saved a total of
33,463.54
liters ofbarreled and bottled water;the Company made full use of renewableenergy photovoltaic power generationwith a cumulative power generationcapacity of 96.33 megawatt-hours, witha cumulative carbon emission reductionof
26.20
tons of CO2 equivalent;and recycled trays, wooden crates andplastic baskets amounting to
140,317
.The annual environmental protectioninvestment was RMB
9,409,900
.The R&D personnel amounted to
1,594
.The annual R&D investment was RMB
534.53
million, and the number of newpatents authorized in 2024 was
.
Social performance:
LONCIN is committed to building adiverse and inclusive work environment.By the end of 2024,
27%
of theCompany's employees were female;the employee training reached
20,334hours?, an increase of
20.33%
compared with the same period lastyear; and the employee health checkupsreached
100%
coverage.The Company highly values consumerprotection, customer relations, and thequality of its products and services, with100%
complaints were resolved and
99.05%
customer satisfaction in 2024.
Corporate governance performance:
LONCIN has
Party members,accounting for 2% of the total numberof employees, which not only reflectsthe high quality and high sense ofresponsibility of the Company'semployees but also demonstratesthe positive results of the Company'sleadership in Party building andthe corporate culture building. TheCompany's proposed cash dividendsamounted to
RMB 821 million
in 2024,accounting for
73.26%
of the net protattributable to shareholders of the listedcompany for the current year, and thecumulative cash dividends amountedto
RMB 3.996 billion
, accounting for
45.07%
of the cumulative net profitattributable to shareholders of the listedcompany, which provided investorswith sustainable and stable returns oninvestment.
5 Notes:
Total training hours: 20,334 hours was the total number of training hours completed by all employees during the statistical cycle. Total Training Hours = Individual Training Hours * Number of Trainees.Individual training hours: The individual training hours was 2 hours according to the statistics.Scope of data: The above data covers all training programs during the statistical cycle, including online courses, oine centralized training, skills enhancement training, etc.
Key Performance Indicators
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Response to the United Nations SDGs
The Company actively practices the philosophy of sustainable development, closely integrates the development philosophies ofenvironment, society and governance with the United Nations 2030 Sustainable Development Goals (SDGs), establishes multi-dimensional development goals, and continuously improves the overall ESG governance level to realize the goal of sustainabledevelopment.
LONCIN’s Sustainability Policy and Performance DataTechnological InnovationGreen R&DOperating in Compliance with the LawBiodiversity ConservationImprovement of Environment Management SystemEnergy ManagementMonitoring Pollutant EmissionsUse Clean TechnologiesCreating a Factory with Landscape GardeningPromoting Green OceGreen R&DOperating in Compliance with the LawQuality ManagementBiodiversity ConservationSustainable Supply ChainsCustomer Satisfaction ManagementEmployment Opportunity EqualityEmployee DiversityEnhancing Employee CommunicationPerfect Training SystemUpholding Intellectual Property RightsProtecting Employee BenetsEnhancing Stakeholder EngagementFocusing on Employee Health and SafetyAssistance in Employment
Customer Satisfaction ManagementOperating in Compliance with the LawOptimizing the Management and Governance StructureEnsuring Customer Information Security and Privacy
Industry Cooperation and DevelopmentImproving Sustainable Development Goals
Environmental Initiatives for Green and Digital Development (E)
Social Initiatives and Innovative Development (S)
Compliance and Transparent Governance (G)
Deliberate Planning and Long-term Vision
Our Actions
Fields
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Analysis of Material Topics
Materiality to LONCIN
Materiality to Society and Stakeholders
The analysis of material topics is fundamental to the preparation ofthe sustainability report. It plays a core role in accurately identifyingand ltering out the key topics that companies need to focus on intheir reports. This process not only anchors a clear and strategiccourse of action for the Company but also ensures the accuracy,relevance, and effectiveness of information disclosure of thesustainability report. The systematic assessment enables companiesto focus on topics that have the most significant economic,environmental, and social impacts, thus providing stakeholderswith more valuable information and demonstrating corporateresponsibility in the eld of sustainable development.
We continuously optimize the process of the analysis of ESGmaterial topics, combining the expectations of stakeholders withthe background of sustainable development, national conditionsand policies, industry characteristics, and corporate strategies,and understand the importance of the impact of ESG topics onstakeholders through communication and interaction with internaland external stakeholders, and draw a matrix of material topicsfor management and information disclosure in the following twodimensions: “Materiality to Stakeholders” and “Materiality toLONCIN”. This matrix provides clear guidance so that we canfocus more on advancing our sustainable development efforts andcontributing to the harmonious coexistence of the economy, society,and the environment.
1 Carbon Emission2 Toxic Emissions and Wastes3 Use of Resources and Energy4 Cleantech Opportunities5 Circular Economy6 Environment Management System7 Biodiversity Conservation
8 Product Quality and Safety9 Employee Health and Safety10 Information Security and Privacy Protection11 Innovative R&D12 Intellectual Property Protection13 Supply Chain Management14 Customer Service15 Labor Management16 Employee Training and Development17 Industry Cooperation18 Rural Revitalization19 Industry-University-Research Collaboration
20 Sustainability/ESG Management21 Operational Compliance22 Risk ManagementDigital Transformation23 Business Ethics and CorporateGovernance24 Anti-corruption25 Boosting National and EconomicDevelopment26 Leadership of Party Building27 Stakeholder Dialogue and Collaboration
Environment
Society
Governance
ESG
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Engagement with Stakeholders
We highly value engagement with stakeholders and ensure information transparency a variety of channelsavailable for two-way interaction. We identied key stakeholders, including government and regulatory agencies,shareholders and investors, employees, community residents, customers, and value chain partners, and keptcommunication with them to address their concerns.
Governmentand RegulatoryAgenciesStakeholders
Expectations
andAppeals
Responses
Shareholders and
Investors
Employees
CommunityResidents
Customer
Value ChainPartners
IndustryAssociation &Organizations
Media andPublic
Compliancewith Law and
Regulations
Operational
ComplianceAnti-corruptionDriving LocalDevelopment
Responding
to NationalStrategiesEnvironmental
Protection
Public Disclosure
of InformationDebrieng andCommunicationof Daily
OperationsRegulatory
AssessmentReception ofVisitorsGreen and
Low CarbonOperation
ShareholderReturnsDisclosure ofInformationRiskManagement and
ControlCorporateGovernanceBusinessPerformance
Annual Reportsand PeriodicInformation
ReleasesAnnual GeneralMeetingOcial WebsiteInvestorRelations ColumnInvestor Hotlineand MailboxInvestorReception DayPerformanceBrieng
Employee Rightsand InterestsProtectionEmployee Healthand SafetyEmployeeTraining andDevelopmentDemocraticCommunicationRemunerationand BenetsEmployee Life
CareEmployeeDiversity
Employee HotlineEmployeeRepresentativeConferenceEmployeeTrainingChairmanMailboxSta ActivitiesSupport forEmployees inDiculty
Driving LocalEconomicDevelopmentLocalEnvironmentalImpacts fromProduction andOperationsCommunityService andPhilanthropy
Providing JobsOrganization ofPublic WelfareActivitiesParticipationin CommunityBuildingImprovementof LocalInfrastructure
Information andSecurityQuality Customer
ServiceProduct Qualityand SafetyProduct Qualied
RateDiversiedProductsAfter-salesService ProductInnovation
CustomerFeedbackCollectionCustomerSatisfactionSurveyCustomerComplaintHotlineCustomer Onlineand OineActivities
Transparentand HonestCooperationFair TradeMutualDevelopmentSupply ChainSustainability
SupplierConferenceSupplier ReviewBidding Meeting
SupportingSocial PublicWelfareFullling SocialResponsibilities
Helping RuralRevitalizationOrganization ofPublic WelfareActivities
Fair CompetitionPromoting theDevelopment ofthe IndustryTechnologyand ExperienceSharingHealthy andHarmoniousIndustryDevelopmentEnvironment
IndustrySeminarsParticipating inthe Compilationof IndustryStandardsProjectCooperationExchanges andLearning
Public Welfareand CharityOrganizations
Service and ProductInformationFuture Development
TrendsCorporate SocialResponsibilitiesFinancialPerformanceOpenness andTransparency ofInformation
OcialWebsite and
MediaInterviews and
Cooperation
Information
Disclosure
NewsPromotion
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Environmental Initiatives forGreen and Digital Development
Green Intelligent Manufacturing and Low-carbon ProductionEcological Conservation and Responsible ContributionsPioneering Eorts to Address Climate Change
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Green Intelligent Manufacturingand Low-carbon Production
In proactively implementing the philosophy of green development andvigorously promoting the green transformation of industries, LONCIN stoodout with the design of LONCIN Green Landscape Industrial Park, supportedby the green development philosophies widely used in terms of productsustainability innovation, low-carbon operation of the industrial park, andecological environmental protection of the industrial park, which became amodel of green development in the industry.
ecologicalprotection
｜Green Landscape Industrial Park?
6: The picture was from the “LONCIN People, LONCIN Events,LONCIN SPIRIT” photography competition organized by the TradeUnion of LONCIN, and the picture was taken by LONCIN’s employeesin the Company's industrial park.
>
the positiveinteractionbetween industrialdevelopmentand ecologicalenvironmental
protection
sustainableproductinnovation
The industrial park proactively built a greenecosystem, carried out large-scale afforestationand landscape greening projects, and the greeningcoverage rate reached more than 25%, whicheffectively improved the regional ecologicalenvironment. Driven by sustainable productinnovation, LONCIN's Green Landscape IndustrialPark design theme was underpinned by ecologicalprotection, realizing the positive interaction betweenindustrial development and ecological environmentalprotection.
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The R&D of motorcycles and related parts in the industrial park has alwaysadhered to the concept of green design to reduce the environmentalimpact of the whole life cycle of the products from the source. Forexample, in the R&D of motorcycle power systems, it has continuouslyexplored energy-ecient technologies to improve fuel economy and reduceexhaust emissions and has actively promoted the R&D and innovationof electric motorcycles and hydrogen fuel cell motorcycles to takepractical actions to help the green and low-carbon transformation of thetransportation sector. In addition, we focus on the sustainable selection ofproduct materials, giving priority to the use of recyclable and biodegradablematerials in order to protect the performance of the product whileminimizing the consumption of resources and the generation of waste. TheCompany's portable energy storage power supply EP600 won two awardsin France and the U.S.: a golden award in the French Design Award and aplatinum award in the American Good Design Award, which highlighted ourinternational leadership in the eld of green product innovation and design.
In terms of sustainable product
innovation, LONCIN is committed
to creating forward-looking and
sustainable products.
Portable Energy Storage Power Supply EP600
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1.Digital Transformation Driven by Intelligent Manufacturing
LONCIN has responded proactively to the call for low-carbon transformation of the manufacturing industry and activelypushed forward the upgrading of workshop digital intelligence, which has had a signicant positive impact on low-carbonemission reduction in various aspects while improving production eciency and product quality. The Company highly values
the digital intelligent transformation and continues to increase investment in related elds, with a cumulative investment ofup to RMB 4 billion. Through unremitting eorts, seven digitally intelligent benchmarking factories have been successfullybuilt. These factories use advanced digital technologies, intelligent equipment, and efficient management systems toautomate and fine-tune the control of the production process, effectively improving production efficiency and productquality. In addition, relying on the rich quality control experience accumulated through years of in-depth cooperation withBMW, the Company has always implemented the “Fine Workmanship” value proposition of “Fine Workmanship, ExcellentQuality Control”. The Company has established a perfect quality management system and strictly controls every phase, fromraw material procurement, production, and processing to product testing, to ensure that the quality of products reaches thestandards of leading companies in the industry, such as BMW. At the same time, through the continuous optimization of theproduction process, strengthening the sta training, and constantly improving the degree of renement and stability of theproducts, we are committed to creating a model of excellence in the industry of ne workmanship manufacturing.
Intelligent Production Workshop
Wind Tunnel Test
LONCIN has constructed an advanced energymanagement system in the process of workshopdigital intelligent upgrading. With the help of a large
number of sensors, the system is able to collect real-time and accurate data on the energy consumption ofvarious types of equipment in the workshop, coveringa wide range of energy types such as electricity, heat,and water. Through in-depth analysis of these data,the energy management system can clearly show thedistribution and trends of energy consumption. Basedon our energy consumption, we will continue to adaptand implement targeted energy optimization strategies.
By introducing an intelligent production schedulingsystem, the Company can effectively adjust resourceallocation and improve production efficiency. In the
production process, with the help of an intelligentproduction scheduling system, the reasonabledistribution of production tasks and ecient operationof equipment are realized according to the orderdemand, equipment status, and raw material supply.By optimizing the production scheduling, the idle timeof the equipment and the waiting time of the materialare reduced, and the utilization rate of the equipmentis improved. After the introduction of the intelligentproduction scheduling system, energy consumption issignicantly reduced at the same production scale, thuseectively reducing carbon emissions in the productionprocess.
The digital intelligent upgrading also provides strongsupport for LONCIN's green innovation in the productdesign and R&D stages. Using digital design tools andsimulation & analysis software, the Company is able toaccurately predict and optimize the carbon emissionsof its products at the product design stage and at thefactory stage to ensure that the motorcycles shippedfrom the factory comply with the relevant carbonemission standards. In the process of motorcycleengine design, the optimal design scheme is selectedby simulating the combustion efficiency and exhaustemissions of the engine under dierent design schemesso as to improve fuel utilization and reduce exhaustemissions.
In addition, the Company uses wind tunnels toaccurately simulate the motorcycles' interaction withthe air while driving, helping designers to optimize theshape of the motorcycle. Through extensive testingand adjustments in the wind tunnels, the motorcyclescan be made to have smoother body lines and less airresistance. This not only enhances the motorcycle'smaneuvering performance and driving stability but alsoreduces fuel consumption and power loss and realizesthe product's green innovation.
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2.Clean Energy Application and Energy Conservation and
Emission Reduction Technology Upgrade
LONCIN believes that new energy, digitalization, and recycling sustainability arethe future of transportation and general machinery. To this end, LONCIN adheresto the philosophy of sustainable development, continuously optimizes itsproduct mix, and develops new energy, digital, and intelligent products. With adiversied and powerful mix of new energy products, LONCIN demonstrates itsresolve to transition to a low-carbon future. By the end of 2024, we successfullylaunched the XWOLF EV10, an innovative electric ATV product, the EF40X, anew all-electric motorcycle positioned for o-road use on forest roads, and theEC15/30, a new all-electric model positioned for individual urban commuting, aswell as developing emerging technologies such as hydrogen fuel cells.
Green Transportation Products
newenergy
digital
intelligent
In response to the global promotionof green development and sustainabledevelopment, LONCIN is proactivelyengaged in the application of clean energyand the upgrading of energy-saving andemission reduction technologies, whichis not only an inevitable choice to complywith the trend of the times, but also akey approach to realizing its long-termdevelopment. We proactively respond tothe national strategy of “Carbon Peakingand Carbon Neutrality”, accelerate thetransformation of energy-saving travel andenergy-saving manufacturing, strengthenthe upgrading of energy-saving andemission reduction technologies, andmake every effort to improve the energyeciency of traditional drive technologies.
Hydrogen energy products
While actively upholding the concept of green development and promoting energytransformation, LONCIN makes robust investments in the research, development,and application of hydrogen energy products, securing its distinctive advantagesin environmental protection endeavours and providing strong support for the greentransformation of the industry.The hydrogen energy products produced by LONCIN boast of the core technology,highlighting the efficient utilization of hydrogen fuel cells. The products solely usehydrogen and oxygen as raw materials in operation and generate electricity throughan electrochemical reaction to power the equipment, which achieves zero carbonemission in earnest as the process emits only water. Dierent from traditional fuel-powered products, these products have fundamentally eliminated the emission ofmassive greenhouse gases produced by burning fossil fuels, such as carbon dioxide,nitrogen oxides, particulate matters, and other pollutants, thus mitigating atmosphericpollution by a large margin.
In terms of technology innovation, LONCIN is a pioneer in the thermal partition designof an entire vehicle that has been applied to hydrogen fuel-cell all-terrain vehicles,among others. This technology significantly improves the performance of hydrogenfuel cells and the specic power of an electric pile passed the 2.2kw/kg mark, whichensures efficient energy conversion and use along with the extended endurancemileage and the augmented stability and reliability of the products in practicalapplication.The successful research, development, and application of electric and hydrogenenergy products are of great significance to advance the related industries towardgreen and low-carbon development. It has not only provided clean, efficient powersolutions for various elds but played a pioneering and leading role in transportation,industrial operations, among others, driving the industry to accelerate the green energytransition.
H
hydrogenium
O
oxygen
Hydrogen Fuel-Cell All-Terrain Vehicles
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Electric energy products
LONCIN actively reduces the carbonfootprint of its products throughelectric energy technology innovationand is committed to providing greenand environmentally friendly productsand services to actively respond toclimate change. In addition, in responseto the national “Carbon Peaking andCarbon Neutrality” goals, we continueto improve the performance of electricenergy products, focusing on researchand development of products withlower energy consumption, longerrange, and longer battery life toimplement the philosophy of greenenvironment protection and revolutionarytechnological innovations and create abetter future of green transportation forconsumers.
LONCIN has continued to strengthen itstechnical research and product developmentin electric energy products by centering onthe brand positioning of electric, playfullocomotives. We have developed the XWOLFEV10 electric ATV, which is equipped with anautomotive-grade 291V high-voltage platformand a high energy density, high dischargemultiplier ternary lithium pouch cell 14.5kWh,which realizes a fast charging capability witha full charging time of 2-3 hours. Ensureefficient energy use, strong power, longrange, and continuous working capabilityof the vehicle. The XWOLF EV10 electricATV produces no direct carbon emissionsduring operation, eliminating carbon dioxideemissions from fuel combustion at thesource. This is not only in line with theurgent global demand for environmentalprotection and sustainable development butalso a practical action to contribute to theachievement of China's “Carbon Peaking andCarbon Neutrality” goals. With its outstandingadvantage of zero exhaust emissions, it playsa positive role in reducing greenhouse gasemissions and improving air quality, and itprovides a green travel mode for the majorityof o-road enthusiasts.
The introduction of the XWOLF EV10 electricATV, EF40X, EC15/30, and other models hasset a new benchmark for the electric off-road motorcycle industry with their advancedtechnology and excellent performance.Its green and environmentally friendlycharacteristics are in line with the national“Carbon Peaking and Carbon Neutrality”strategic goals, which is of great signicancein promoting the popularization of green traveland energy saving and emission reduction inthe eld of transportation.
CarbonNeutrality
Peak CarbonDioxide Emissions
lower energyconsumption
XWOLF EV10 Electric ATV
·no direct carbon emissions·eliminating carbon dioxideemissions from fuel combustionat the source·reducing greenhouse gasemissions·improving air quality
longer range
longer battery life
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2）Energy Conservation and Emission Reduction Technology Upgrade
Energy-ecient transportation
Not only does LONCIN provides new energy vehicles, but it is also committed to optimizing the eciencyof traditional fuels through technological innovation and sustainable development. With regard to traditional
fuel vehicles and general machinery, LONCIN makes every endeavour to develop energy conservation andemission reduction technologies in an effort to reduce carbon emissions and realize the value of everydrop of fuel. The resounding success is attributable to our unwavering pursuit of and rm commitment toenergy conservation, emission reduction, and sustainable development. While creating the unique pleasureof driving, LONCIN dedicates itself to energy conservation and consumption reduction and, by doing this,undertakes more responsibilities for the environment and society.In recent years, with the increasing awareness of environmental protection and the gradual adjustmentof the energy mix, greater importance is attached to the application of energy conservation and emissionreduction in general machinery manufacturing. To achieve energy conservation and emission reductiontechnology upgrade, LONCIN raises the utilization rate of fuels and reduced exhaust emissions byoptimizing the engine combustion technology so that the engine can accommodate different workingconditions with the best combustion to effectively cut down fuel consumption and exhaust emissions.In the meantime, lightweight design is also one of the important approaches to energy conservation andemission reduction. Applying new materials, such as aluminum alloy and carbon ber, makes the wholebody of a motorcycle lighter to reduce energy consumption while driving, thereby accomplishing the goalof energy conservation and emission reduction.Moreover, we roll out the SR150GT H model of the rst mass-produced hybrid scooter in China deemedto be a breakthrough in energy conservation and emission reduction of motorcycles. The V-HEV hybridtechnology platform entailed in the model is a brand-new power unit produced by the Company based onthe automotive-grade 48V hybrid architecture and by reference to multiple exclusive technology patents,enabling users to experience powerful impetus and realize energy conservation and consumption reductionin driving.
In the sector of traditional fuel engines, LONCIN launches the firstmass-produced engine using the electric fuel injection system, such asthe LC series of general-purpose engine products
with a decrease of 20% in fuel consumption and the air-fuel ratio in acarburetor, a reduction of 90% in carbon monoxide emissions, and anincrease of 5% in engine power.
As for the electric injection force, the products use porous injectorsto prevent the formation of oil lms and ensure complete combustionresulting in reduced emissions, hazardous gas emissions inparticular, with the support of a controllable digital ignition system.
SR150GT H Model of the First Mass-Produced Hybrid Scooter in China
SR150GT H Model of the First Mass-Produced Hybrid Scooter in ChinaThe power platform applies the WMTC circulation system and two energyrecovery modes using braking force and downhill coasting to realize energyconservation and consumption reduction.
Compared with traditional power platforms, its performance increasesby 20% within the range of 0-60km/h and 25% within the range of30-70km/h.In the charging process, the model comprehensively improves chargingeciency by controlling the three-phase bridge circuit, with chargingand discharging eciency rising to 98% and charging losses as low as5%.
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Energy-ecient manufacturing
Furthermore, LONCIN prioritizes energy conservation and emission reduction inthe production process. A package of measures is put in place to reduce energyconsumption and pollutant emissions during production through upgradedproduction process, energy-efficient equipment, and reinforced energymanagement. The introduction of an intelligent production system helps realizeautomation and delicacy management of the production process, improveproduction eciency, and reduce energy waste and environmental pollution.
The following is a comparison of the electricity consumption for manufacturing a single productbetween January and December 2024 with the same period in 2023. By comparison, the averageelectricity consumption for manufacturing a single product was 1.368kWh in 2024, a year-on-year decrease of 0.083kWh as compared with 1.451kWh in 2023, and the energy consumption formanufacturing a single product reduced by 5.7%.
The Company promotes green product design and creates a green supplychain through the stringent control of those projects featuring higher energyconsumption and more emissions. All departments (workshops) are engaged inclean and energy ecient production to conserve raw and auxiliary materials fromthe source and reduce energy consumption from the root, with the productionprocess and equipment with lower energy consumption and fewer industrial wasteemissions adopted on the premise of assuring product quality and productionefficiency, thereby achieving better results in energy conservation and costreduction.
The following is a comparison of the increases in sales revenue, installed capacity, and energyconsumption expenses in the same period of 2024 and 2023. By comparison, the increase of utilitieswas less than that of sales volume, and the increases of total sales, installed capacity, and utilitieswere 32.02%, 26.41%, and 12.51%, respectively, for the period from January to December. Overall,the increase of utilities was lower than that of installed capacity, meaning that effective energyconservation was achieved in the production process.
July 2024 saw an extremelysevere challenge in the electricitysupply guarantee in Chongqing.In order to mitigate this situation,LONCIN issued theElectricitySaving Initiative for a SmoothTransition to 2024 SummerElectricity Consumption Peakwith a view to calling upon allemployees to save electricity andalleviating the strong demand forpublic electricity.As part of these eorts,electricity-saving posterswere displayed in the factoryto advocate for conservingelectricity, and slogans pertainingto “Zero-Waste Factory” createdin 2024 were posted for publicityin Zone B of the factory.
2）Energy Conservation and Emission Reduction Technology Upgrade
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3.Practices of Green Factory and Circular Economy
Green development is fundamental to the high-quality development of enterprises and also thekey to sustainable growth of economy and society. LONCIN has always adhered to the corporatevision of “A Leading Brand with a Low-Carbon Power System and Intelligent Products”. Onthe one hand, LONCIN makes continuous efforts to improve product quality and innovatetechnologies and commits itself to providing consumers with products of excellent quality andhigh performance with a great sense of responsibility and mission; on the other hand, LONCINbuilds a profound understanding of the great signicance of green development, incorporatesthe concept of sustainable development into enterprise operation and management on all frontsand at all levels, and performs its corporate social responsibility in real earnest.In the course of the production process, LONCIN proactively responds to the national call forenergy conservation and emission reduction, vigorously promotes the application of advancedtechnologies in that regard, and optimizes the production process in an all-round way, toeectively improve the eciency of energy use and reduce waste emissions by a large margin.Thanks to a host of practical and effective initiatives, we demonstrate the concept of thegreen factory with practical actions, set a good example for the sustainable development ofthe industry, and make positive contributions to the green transformation of the economy andsociety.
Intensive land use
On the way to energetically promote green development and actively build the “National GreenFactory”, intensive land use holds extreme significance and has a deep positive impact on theconstruction of green factories in various aspects. For this reason, LONCIN redoubles eorts to pushforward the construction of U-shaped production lines in production workshops.The move is taken to optimize equipment layout by adopting the U-shaped production lines torealize tight equipment connection among various production processes, which can shorten thetransportation distance between processes, avoid great space being occupied by long-distancetransportation channels as a result of the traditional linear layout, thus improving the space utilizationof the factory and saving land area. For example, the equipment for the frame welding, componentsand parts assembly, and other processes is arranged in a U-shape, bringing about an ecient owof materials and semi-finished products between processes and eliminating the need to reserve awide transportation channel. By doing this, additional space is reserved for personnel activities, asthe U-shape production line facilitates the realization of one-person-multiple-machine operation,allowing one worker to simultaneously operate multiple equipment in the production line area. Thisnot only reduces the walking distance of personnel but also releases more space as necessary forscattered working areas, thus lowering the requirement for factory size.From the perspective of efficient resource utilization, intensive land use can remarkably improvethe utilization rate of land resources. The “National Green Factory” is constructed through rational
planning and layout, compact workshop design, scientic planning of functional zoning, and compactlayout of various links such as components and parts processing and complete vehicle assembly.Through these eorts, space redundancy is reduced as much as possible in the production processso that limited land can accommodate more production activities to maximize land value, which alignswith the core requirements for ecient resource utilization in green development.
1）“National Green Factory”
The manufacturing industry is now at the critical juncture of the green and low-carbon transformation, wherein the “National Green Factory”, as a pacesetter,plays a fundamental and guiding role of prime importance. This honorary title bearstestimony to the work we have done in core areas such as intensive land use andgreen logistics, as well as our high standards and comprehensive strength in terms ofgreen manufacturing to be an industry leader.
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Green logistics
In order to uphold the concept of green development andaccelerate the construction of green factories in full swing, greenlogistics is the key to the development of the green manufacturingsystem and has a profound impact on the construction of greenfactories in an all-round way. Developing green logistics isconducive to the efficient allocation and utilization of resourcesand the prominent reduction of environmental pollution resultingfrom transportation and packaging, thereby making the goal ofclean production come true in green factories.With regard to ecient resource utilization, we adopt low-carbontransportation, continue to promote such means of transportationas rail and sea transportation and vigorously develop low-carbonand multimodal transportation aiming at cutting down energyconsumption throughout the logistics and reducing a waste ofresources in logistics operations to ensure limited resourcesaccessible to the production and operation of green factoriesin a more precise and efficient manner, in line with the goal ofpursuing ecient utilization of resources in green factories.In respect of green product packaging, we use recyclable cartonsto package motorcycles, engines, and general machinery, soas to effectively reduce the environmental pollution resultingfrom packaging wastes, minimize a waste of resources, andassist in implementing the concept of sustainable development.Furthermore, recycled cartons are reused in production after
processing to reduce packaging costs and improve economicefficiency. Throughout the year of 2024, the Company used136,390 recyclable wooden pallets, 1,923 recyclable woodencrates, 2,004 recyclable plastic boxes, and 4,607,451 recyclablecartons, among which the number of wooden crates and plasticboxes decreased by 93% and 80% respectively compared with2023, and more environmentally friendly recyclable cartons wereused.Moreover, LONCIN further advances the construction of greenfactories in terms of low-carbon energy and plant greening.
LONCIN values the use of low-carbon energy by laying out solarphotovoltaic panels on the roofs of the factory, vacant land,and other areas to make full use of renewable energy sources.At present, the photovoltaic power generation capacities are3,100kWh per day and 93,000kWh per month, the cumulativepower generation capacity is 162MWh, and the cumulativecarbon emission reduction is 44.2 tons. Measures are also takenin plant greening, along with the dedicated formulation of theImplementation Rules for Greening Maintenance Managementapplicable to the placement and maintenance managementof indoor and outdoor plants in the industrial park, and themaintenance of an amicable green environment in the industrialpark, so as to strengthen the greening management in theindustrial park and make the greening work of the industrial parkstandard and institutional.
LONCIN has been awarded the title of “National GreenFactory”, representing not only a high recognition of ourin-depth exploration and continuous investment in thegreen manufacturing eld for long, but a proof that we havemade a solid and robust stride in implementing the conceptof sustainable development and advancing the progressof green development as well. Going forward, LONCIN willtake this opportunity to continuously deepen the greenmanufacturing practice, play a greater role in guiding andleading the green and low-carbon transformation of themanufacturing industry, and make positive contributions tothe comprehensive green transformation of economic andsocial development.
recyclable wooden pallets
136,390recyclable wooden crates
1,923recyclable plastic boxes
2,004recyclable cartons
4,607,451
Implementation Rules for Greening Maintenance Management
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2）2)“Zero-Waste Factory” in Chongqing
Indicator
Total general solid wasteEmission intensity ofgeneral solid wasteTotal recycling of general
solid wasteTotal emission ofhazardous wasteEmission intensity ofhazardous waste
FY2024 dataFY2023 dataFY2022 data Unit
448.81189195
0.03
448.81
4,630.25
0.28
0.01
487.99
0.03
0.02
421.77
0.04
Tons/RMBMillion in Revenue
Tons
In terms of energy, the Company develops a complete resource recycling industry chainto convert the wastes in the production process into reusable resources. A wastewatertreatment system is put in place in the production workshop for the advanced treatmentof wastewater generated in the production process, which realizes the recycling of waterresources and significantly reduces the consumption of water resources. The Companyfurther utilizes waste heat recovery technology to recycle the waste heat generated in theproduction process for heating or power generation, thereby improving the comprehensiveutilization eciency of energy.LONCIN's achievement in building the “Zero-Waste Factory” is not only reected in energyconservation, emission reduction, and ecient utilization of resources within the enterprisebut sets a positive example for the green development of the industry. We are ready toshare our construction experience and promote the construction of a green supply chainwith upstream and downstream enterprises with an aim to advance the green transformationof the entire industry by driving the upstream and downstream enterprises of the industrialchain to strengthen waste management and resource recycling.
While the concept of green development is rmly upheld and ecologicalcivilization is fostered at the same time, active efforts are made tofacilitate the construction of “Zero-Waste City” in Chongqing. “Zero-Waste Factory”, as its important component, has strict requirements forenterprises in terms of comprehensive utilization of resources, wasteminimization, and harmless treatment.In active response to relevant policies of Chongqing, LONCIN takesthe initiative to apply for “Zero-Waste Factory”. As a support, it setsgreat store by the application process through the establishment of aleadership group tasked with the creation of a “Zero-Waste Factory”,and scientic organization and planning. In the production and operatingpractice, our company vigorously innovate the green production processto cut down the generation of wastes from the source. The introductionof advanced production equipment and technology facilitate delicacymanagement of raw materials and eective reduction of materials lossin the production process.Additionally, LONCIN advances the development of greener productionprocess in full strength. The introduction of advanced intelligentmanufacturing technology and automation equipment has helped realizeprecise control of the production process, effectively reducing theloss of raw materials. During the processing of components and parts,high-precision processing equipment and optimized process flow hasimproved the utilization rate of materials and cut down the generationof waste materials. The Company has also proactively explored theapplication of new materials and prioritized the use of recyclableand biodegradable environmentally friendly materials to cut down thegeneration of wastes from the source.LONCIN also develops a full-fledged resource recycling system forwaste treatment. The industrial solid waste, hazardous waste, domesticwaste, and other wastes generated in the production process arecollected by category and treated appropriately. The high-valuerecycling of wastes has been achieved by cooperating with professionalrecycling enterprises and setting up oil lters. In the meantime, LONCINis active in researching the harmless treatment of wastes to ensure thatall types of wastes have no negative impact on the environment.
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Tons
TonsTons/RMBMillion in Revenue
战略领航
战略领航
To act on Xi Jinping Thought on Ecological Civilization and comprehensivelyimplementing the national decisions and plans of great significance onstrengthening ecological conservation and promoting biodiversity conservation,LONCIN displays a strong sense of social responsibility, actively engages in thecause of ecological conservation, and deepens the integration of the ecologicalconservation concept into the whole process of the enterprise's developmentstrategy and production and operation, so as to make contributions to protectinglush mountains and lucid waters and achieving harmony between humankind andnature.We have worked hard to reduce resource consumption to the greatest extentat all stages of production for less impact on the environment, including themanagement and emission reduction of greenhouse gas, water resourceconservation and recycling, and the emission reduction of wastes and volatileorganic compounds, etc. In 2024, we invested a total of RMB 9,409,900 inenvironmental protection, an increase of 6.9% compared with 2023.
Indicator
Investment in environmentalprotection in FY2024
Investment in environmentalprotection in FY2023
Investment inenvironmental protection
Unit
940.99
RMB Ten Thousand
880.00
140.00
Ecological Conservation andResponsible Contributions
940.99
Investment in environmental protection
RMB Ten Thousand
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RMB Ten Thousand
RMB Ten ThousandInvestment in environmentalprotection in FY2022
1.GHG Management Initiatives and Results
1）GHG Emission Reduction Targets
For the present, the Company has been promoting energy conservation and carbon reduction in an orderly mannerand adopting a series of measures to support the achievement of carbon reduction targets in an eort to realizethe harmonious coexistence of sustainable development of the enterprise and ecological environment. It plays anactive role in leading the industry to achieve sustainable development with high quality, wholeheartedly supportingthe national “3060 Carbon Peaking and Carbon Neutrality Strategy” and striving to achieve carbon neutrality by2058. It also strives to signicantly reduce Scope 1 and Scope 2 GHG emissions in the production and operationprocess and mitigate the adverse impact on the climate and environment.
2）GHG Management Systems
IndicatorAccounting for the average carbon
footprint of products
GHG emissions (Scope 1)
GHG emissions (Scope 2)
FY2024 data
Unit
424.72
?
Kilograms of CO2
equivalent
18,932.44
?
136,348.10
?
Tons of CO2equivalentTons of CO2equivalent
7 For the product life cycle assessment, select the average raw material usage amount for the production of a single product, adopt Green Delta’s “Open LCA” software, the standards in IPCC Guidelines for National Greenhouse Gas Inventories, and the “ReCiPe 2016 Midpoint (H)” calculation method.8 Scope 1 GHG emissions = Total GHG from annual consumption of natural gas used for production + Total GHG from annual consumption of diesel fuel used for production + Total GHG from annual consumption of gasoline used for production, with reference to the emission factors from the data source: GHG Emission Database (https://data.ncsc.org.cn).9 GHG emissions of Scope 2 = Total GHG from total annually purchased natural gas + Total GHG from total annually purchased electricity, with reference to the emission factors from the data source: GHG Emission Database (https://data.ncsc.org.cn), the Ministry of Ecology and Environment’s “Carbon Footprint Factor Data for Electricity in 2023”.
In order to further reduce greenhouse gas emissions and strengthen greenhouse gasmanagement, LONCIN strictly abides by theEnvironmental Protection Law of the People'sRepublic of Chinaand other regulations. In addition, we formulate targeted internalsystems such as the Wastewater,Waste Gas, and Solid Waste Management Measures, theMeasures for the Prevention and Control of Waste Gas Pollution, and the Measures for theEnvironmental Management of Related Parties.
4）GHG Emission Reduction MeasuresTo improve energy eciency, we introduce an advanced energy management mechanism withsmart meters, sensors, and control equipment installed to monitor energy consumption in theproduction process in real time. Based on the collected data, we analyze the energy use in anin-depth manner, identify high energy-consuming links and equipment, and then optimize theapproaches to energy distribution and use. On the production line, energy is supplied preciselyaccording to the actual needs of dierent processes to avoid energy waste, thereby improvingthe overall energy eciency.
We advocate for low-carbon office by encouraging our employees to adopt double-sidedprinting, reduce paper use, and implement other possible measures to reduce resourceconsumption throughout the work. As a complement, we promote the use of energy-ecienthome appliances and oce equipment, such as energy-ecient air-conditioners and energy-ecient computers, to reduce energy consumption in the oce area, thereby cutting downgreenhouse gas emissions accordingly. Furthermore, our employees are motivated to purchaseelectric vehicles instead of fuel vehicles for commuting to reduce carbon emissions on theway to work.In 2024, the number of electric vehicles held by employees was 387, an increase of 101%compared with 2023, while the number of fuel vehicles held by employees only increased by28% during the same period, resulting in a significant decrease in carbon emissions fromemployee commuting.
3）GHG Management Systems
Indicator
Holdings of electric vehicles
among employees in 2024
Vehicle holdingsIncrease
3,1522,456
Holdings of fuel vehicles among
employees in 2024
101%
Unit
Vehicle
28%
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VehicleVehicleVehicle
Holdings of electric vehiclesamong employees in 2023
Holdings of fuel vehicles among
employees in 2023
2.Water Management Initiatives and Results
1）Water Management ObjectivesTo better conserve water resources, LONCIN has improved the efficiency of waterresources and raised the awareness of water conservation among employees. A widerange of effective measures are taken, for example, reducing water consumption andwastewater discharge aiming at the sustainable development of the Company. Meanwhile,it plays a due role in performing social responsibilities and making contributions to theprotection of water resources and the environment.
IndicatorTotal water consumption
FY2024 dataUnit
Total wastewater generated
Intensity of wastewater discharge
3）Water Conservation Measures
To achieve the goal of conserving water resources and improving the efficiency ofwater resources, LONCIN creates a strong atmosphere for all to participate in waterconservation by carrying out water conservation publicity activities to see that theawareness of water conservation is deeply implanted in the minds of everyone, andwater conservation actions are transformed into employees’ conscious behaviours inreal earnest. Besides, we actively innovate technologies, introduce advanced waterconservation processes and equipment, and further optimize the water use of theproduction process.
2）Water Management-Related Data
4）Water Management Systems
To fulfil water conservation goals, intensify water management, and implementwastewater treatment processes, LONCIN strictly complies with theWater PollutionPrevention and Control Law of the People's Republic of China, theEnvironmental ProtectionLaw of the People's Republic of China, and theCircular Economy Promotion Law of thePeople's Republic of China, among other laws and regulations. In addition, we haveformulated targeted internal systems such as theWastewater, Waste Gas, and Solid WasteManagement Measures, the Drinking Water Management Measures, and theWastewaterDischarge Management Measures.
5）Wastewater Discharge Reduction Measures
Wastewater resulting from various production processes in the factory, includingdemoulding wastewater generated in the die-casting workshop, cleaning wastewater inthe painting workshop, emulsification wastewater in the machining workshop, and oilywastewater generated in the engine performance test, together with domestic euents,are all collected in a comprehensive manner through the well-established euent pipelinesystem. Afterward, all the wastewater is transported to the wastewater treatment stationin the factory.
The wastewater treatment station is equipped with advanced treatment facilities for theadvanced treatment of various types of wastewater, with the capacity to treat 150 tons ofwastewater per hour in full-power operation. The treated wastewater can be dischargedinto the effluent pipeline network of the industrial park only after reaching the Tier 3discharge standard, thus eectively reducing the impact on the environment. In 2024, theCompany generated 500,300 tons of wastewater, a decrease of 11% compared with 2023,and reused 46,800 tons of recycled water in the euent treatment station, with a waterreuse rate of 9.4%.
FY2023 dataFY2022 data
Density of water consumption
114.76
50.03
0.003
0.01
99.44
56.10
0.43
0.76
98.80
39.48
0.32
0.80
Ten Thousand TonsTons/RMBTen Thousand in Revenue
Synthetical OilyWastewater
SeparationTank
RegulatingPond
Demulsication
Settling
Biochemical
Pond
SyntheticalWastewaterRegulating Pond
Filtration
AirFlotation
Sludge Thickening
Ground
Wastewater Treatment Process
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Ten Thousand Tons
Tons/RMBTen Thousand in Revenue
3.Energy Management Initiatives and
Energy-Ecient Technology Achievements
1）Energy Management Objectives
LONCIN is a faithful champion for the national strategic policies on energyconservation, emission reduction, and green development, as it proactivelyresponds to the national call, takes energy conservation as a strategy of greatsignicance for enterprise development, and makes every eort to acceleratethe formulation and implementation of energy conservation targets with astrong sense of social responsibility and mission.
2）Energy-Related Data
To further fulfil energy conservation and carbon reduction targets and tasksset out in the “14th Five-Year Plan” and secure solid progress in energyconservation and carbon reduction, the Company adopts a number of eectiveenergy conservation and emission reduction measures. Thanks to the supportof many other parties, it made outstanding achievements in 2024, and theenergy consumption data in 2024 were as follows:
3）Energy Management Systems
To further make energy management standard and institutional in theCompany’s production process, the Company has worked out theEnergyManagement Measures, Equipment and Special Equipment ManagementMeasures,and other relevant systems for the present. Moreover, theCompany's Energy Ecient Production Leadership Group gives full play to itsleadership role to further establish and improve the energy ecient productionmechanism and implement the energy ecient production policies and goals,among others.
4）Energy Management Measures
To achieve more ecient energy management, the Company conducts regularenergy eciency inspections of workshops, formulates plans for updating andreplacing high energy-consuming equipment, examines and recties the wasteof resources in the production process of the factory, and optimizes the eectof energy ecient production of the enterprise. Meanwhile, relevant educationand training courses are held to train and teach new employees about themanagement of energy-efficient production, enabling front-line productionemployees to deepen their understanding of energy-efficient production andbuild up their awareness of energy eciency.
Review
OptimizationTraining
Indicator
Purchasedelectricity
FY2024 dataUnit
Gas consumptionIntensity ofgas consumption
FY2023 dataFY2022 data
Intensity of
electricityconsumption
12,636.45
861.48
0.0005
0.008
10,686.08
686.8
5.26
81.78
8,867.00
654.57
5.27
71.45
Kilowatt Hours/RMBTen Thousandin Revenue
Indicator type
Electricalenergy
Gas
Ten ThousandKilowatt Hours
Ten ThousandCubic MetersCubic meter/RMB
Ten Thousand inRevenue
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4.Biodiversity Conservation
1）Objectives of Biodiversity Conservation
In active response to the national biodiversity conservation strategy, LONCIN hasthoroughly recognized the signicance of biodiversity conservation for maintainingecological balance and promoting sustainable development and put biodiversityconservation on the corporate development agenda of great importance. A widerange of measures are taken to advance the further development of biodiversityconservation.
IndicatorFY2024 dataUnit
Greening coverage of Zone C
2）Biodiversity Conservation-Related Data
Greening coverage of Zone B
24.1%
25.1%
26.1%
/
/
/
Greening coverage of Zone A
3）Biodiversity Conservation Management SystemsTo further intensify biodiversity conservation in surrounding areas of the Company,we have formulated theImplementation Rules for Greening Maintenance Management,Implementation Rules for Cleaning and Sanitation Management, Harmful and HazardousSubstances Management Measures, Noise Management Measures,and otherrelevant management measures to ensure the green and environmentally friendlydevelopment of the industrial park. In addition, a wide range of managementmeasures have been adopted to ensure biodiversity conservation in the upstreamand downstream of the supply chain in an eort to achieve the green developmentof the entire industrial chain.
LONCIN is committed to protecting andexpanding the natural ecological space inthe factory and its surrounding areas andcarrying out ecological transformation ofvacant land in the factory, e.g. increasinggreen area by means of tree planting andafforestation to create diversified ecologicalhabitats, and planning and building ecologicalcorridors in the factory to provide space forflora and fauna to inhabit, reproduce, andmigrate, in an effort to promote the naturalrestoration and growth of biodiversity. In themeantime, the design of our oce buildingsand the like adopt the decoration style offaux-brick exterior to minimize the use ofglass curtain walls, which can mitigate therisk of bird impacts, protect bird resources,and preserve species diversity of theecosystem in an eective manner.
4）Biodiversity Conservation Measures
Ecological Corridors in the Industrial ParkGreen Building Design in the Industrial Park
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Pioneering Efforts to AddressClimate Change
1.“Carbon Peaking and Carbon Neutrality” Goals
In active response to the national strategic goal of “Carbon Peaking and Carbon Neutrality”,the Company sets the following dual-carbon goals: bring greenhouse gas emissions to a peak
by 2028 and become carbon-neutral by 2058; cut Scope 1 and Scope 2 emissions by 20%from scal 2019 levels by 2030. In the meantime, the Company will develop scientic carbongoals no lower than the goal set in the Paris Agreement of limiting temperature increase tobelow 2 Celsius, which will be assessed and verified by the Science-Based Carbon TargetsInitiative (SBTi) in the future, in an eort to create experience in addressing climate change forthe industry. On the supplier side, carbon accounting of at least 80% of suppliers is expectedto be completed by 2026, with customized carbon reduction targets developed in a rationalmanner. By 2027, the Company’s energy consumption of industrial added value per unit will bereduced by 13% compared with 2022, and signicant progress will be made in energy resourceutilization and green manufacturing.
2.Climate Risk Management and TCFD Framework Response
The Task Force on Climate-related Financial Disclosures (TCFD) frameworkis designed to help companies identify, assess, and disclose climate-relatedrisks and opportunities. We actively integrate the climate risks we face withthe TCFD framework, comprehensively identify and assess climate-relatedphysical and transformational risks, systematically sort out potential risks, andformulate coping strategies in advance so as to enhance our ability to cope withuncertainties and reduce potential losses due to climate risks.
1）Corporate Governance
Against the backdrop of the global active response to climate change, LONCIN attaches great importance to climate-related risks and opportunities as a key issue for the sustainable development of the enterprise, carries out scienticmanagement through a well-established corporate governance system, effectively fulfills its corporate socialresponsibility, and contributes to the green and low-carbon economic and social transformation.a. Board oversight of climate risks and opportunitiesIn terms of corporate governance structure, LONCIN has established a governance system with clear lines ofauthority and accountability. The Board of Directors plays a central leadership role in climate-related matters and isresponsible for nalizing the Company's climate strategy, objectives, and policies, overseeing their implementation bymanagement, and ensuring that the Company's strategic direction on climate change issues is correct.b. Management's responsibility for managing climate risks and opportunitiesManagement, under the direction of the Board of Directors, is responsible for the implementation of climate-related risk management and opportunity capture. Based on corporate strategy and assessment of climate risks andopportunities, management formulates clear and quantiable climate-related targets and response strategies, setscarbon reduction targets, and plans specific paths to achieve the targets, including investing in green technologyresearch and development, and adjusting the product mix to meet the demands of the low-carbon market, etc., so asto provide guidance for the green transformation of the enterprise.
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2）Corporate Strategic Management
The Company fully responds to the trend of global energy transformation, incorporates Green and Low Carbon into its own strategic planning, actively explores the path of product technologytransformation and upgrade, systematically plans for new energy-oriented travel changes, and is committed to setting an example for the industry's green and low-carbon development, inorder to promote the Company's and the industry's green and low carbon development, and to contribute to the country's realization of the “dual-carbon” goal.
SectionEnvironmental risk
Type of risk
Descriptionof risk impact
Riskadaptation/opportunities
Climate change
risk
In recent years, thefrequency and intensityof extreme weatherevents have beenincreasing, with disasterssuch as heavy rainfall,ooding, drought andhigh temperatures posinga direct threat to theCompany's productionfacilities and supplychain; in addition, dueto the extreme weather,travel conditions havebeen impacted, andconsumer demand formotorcycles and otherproducts has decreased,exposing the Companyto market risk.
Resource supplyand demand risk
Fluctuations in theavailability and pricingof raw materials, suchas steel, rubber, andplastics, will exposethe Company to supplyrisk. If changes in theinternational situationor natural disastersaect the supply of rawmaterials, resulting in asignicant increase inprices, the Company'sproduction costs willincrease.
On the one hand,the Companyhas increasedits investment inthe research anddevelopment of newenergy products, suchas electric motorcyclesand hybrid engines,to reduce carbonemissions, and onthe other hand, ithas improved theadaptability of itsproducts in dierentadverse weatherconditions, so thatthey can operatenormally under a widerange of weatherconditions. In addition,the Company enhanceslabor protectionfor its employeesby providing themwith the necessaryprotective equipmentand training to ensuretheir health and safetyin extreme weatherconditions.
The Company activelyestablishes long-termand stable cooperativerelationships withsuppliers and is deeplyinvolved in suppliers'production planning andquality control. In theprocurement of coreengine components, wework with suppliers toformulate productionplans, lock the share ofsupply in advance, andprioritize the Company'sproduction needs. Whenthe price of raw materialsuctuates greatly, westabilize procurementcosts by signing annualframework agreementsand setting up priceadjustment mechanisms.In addition, we activelyexpand our supplychannels and introducenew suppliers to reduceour dependence on asingle supplier. In theprocurement of rawmaterials such as steel,in addition to workingwith traditional suppliers,we have developedsuppliers from dierentregions to eectivelyreduce supply risks.
The Company tracks changes in climate-related laws and policies incountries around the world through the establishment of a professionalteam or the use of external consulting organizations, and keeps abreastof new regulations, such as carbon emission standards and requirementson the proportion of renewable energy use, which provides a basis forcorporate decision-making and enables the Company to plan its responsestrategies in advance, thus avoiding being caught in a passive situationdue to changes in laws and regulations.In addition, the Company has perfected its environmental managementsystem and formulated strict internal environmental protection standardsand operating procedures in accordance with the requirements oflaws and regulations in countries in which it operates. The Companyclaries the responsibilities of each department in responding to climatelegal compliance and assigns the responsibilities to specific positionsand personnel. In addition, the Company strengthens staff training toenhance the awareness and implementation of climate regulations, andfurther implements GB/T24001-2016/ISO14001:2015 EnvironmentalManagement System Requirements and Guidelines for Use and Rules forthe Implementation of Compulsory Product Certification - Motorcycle(CNCA-C11-02) (CNCA-00C-005) during the production processto ensure that the Company's whole process of operation meets therequirements of regulations.
Social riskEnvironmentalcompliance risk
Global economic
volatility risk
Product quality riskDriving safety risk
GB/T24001-2016/ISO14001:2015 Environmental Management System Certication
In response to theissue of decliningmarket demand,the Company hasexpanded intomultiple marketsand reduced itsdependence ona single market.Geographically, theCompany has beenactively expandingits domestic andinternationalmarkets andlaunching targetedproducts inresponse to marketdemand. In termsof products,the Companyhas establisheda moderatelydiversied productfamily and, withina reasonablerange, has activelyexpanded itsproduct rangeto meet theproduct needs ofa wider range ofconsumers.
In order to cope with the risk of product quality, the Company mayfurther strengthen the control and management of the productionprocess. The Company implements Total Quality Management(TQM) in the production process, establishes and improves theproduction standard operating procedures, clarifies the qualitycontrol standards for each production process, and furtherimplements the IATF16949:2016 Quality Management System -Special Requirements for the Implementation of ISO9001:2015for Automotive Manufacturing Parts and Related Service Parts,GB/T19001-2016/ ISO9001:2015 Quality Management SystemRequirements, etc. The Company regularly maintains and calibratesits production equipment to ensure that it is in optimal workingcondition and to minimize quality uctuations caused by equipmentproblems. The Company strengthens sta training, improves staoperation skills and quality awareness so that the staff strictlyfollow the standard operation procedures for production to ensureproduct quality.
GB/T19001-2016/ISO9001:2015 Quality Management System Certication
The Company responds to motorcycle drivingsafety risks from various aspects such assafety education, technology research anddevelopment, and quality control. In termsof safety education, the Company regularlyorganizes activities to enhance driving safety-related education for users and raise safetyawareness. In terms of technology researchand development, the products are equippedwith millimeter-wave radar and other driver-assisting equipment to realize driver-assistingfunctions such as blind-zone detection, lane-change assistance, and collision warningand to improve the ability to perceive thesurrounding environment. In terms of qualitycontrol, we carry out the forward developmentof chassis systems and handling systems andutilize advanced tools to simulate and analyzesystem functions to eliminate design defects.In addition, the Company has set up a strictquality control system and a special qualitytraceability system to ensure the consistencyof the production process and realize zerodefects in the delivered products.
The Company has further strengthenedinformation disclosure and standardizedgovernance in terms of compliancemanagement and system development.With respect to information disclosure, theCompany strictly follows the provisions ofthe Company Law, the Securities Law, theAdministrative Measures for InformationDisclosure of Listed Companies, the Rulesfor Listing of Stocks on the Shanghai StockExchange and the Articles of Associationof the Company to ensure that informationdisclosure is in accordance with the laws,rules, and regulations, and to ensure thatinformation disclosure is truthful, accurateand complete, and that all shareholdersand potential investors are treated fairly.In terms of standardized governance, theCompany ensures that there is a cleardivision of powers and responsibilitiesamong its authority, decision-making body,supervisory body and the management,with each performing its duties and witheective checks and balances, ensuresscientic decision-making, and ensuresthat the process of convening meetingsis legal and compliant. The Companymaintains mutual independence fromits controlling shareholders in terms ofbusiness, personnel, assets, organization,and nances, urges key personnel suchas directors, supervisors, and seniormanagement to be diligent in their duties,and protects the legitimate rights andinterests of all shareholders, especiallysmall and medium-sized shareholders.
ESG-related risk identication and impact
Corporate governance risk
With the accelerated transformation of the worldto a low-carbon economy, countries continue tointroduce more stringent environmental policiesand regulations, which has led to increasinglyhigher energy-saving and emission reductionstandards for the motorcycle industry. This couldresult in the Company facing fines, productionrestrictions and other penalties for exceedingcarbon emissions, exposing the Company tolegal compliance risks.
The global economicdownturn may leadto a reduction inconsumer demandfor motorcyclesand other products,aecting theCompany's salesrevenue; LONCIN,as an export-oriented enterprise,may be aectedby exchange rateuctuations in termsof competitivenessin the internationalmarket and prots.
Product quality problems may trigger consumercomplaints, returns, and compensation, damagingbrand reputation and market competitiveness.Defective products in terms of driving safety anddurability not only lead to loss of consumers butmay also expose the Company to lawsuits andfinancial compensation, increasing operatingcosts and nancial risks.
Motorcycles pose a high safety risk,mainly due to their poor stability, lackof protection, and vulnerability toenvironmental inuences.
Failure to disclose informationin a timely and accurate mannerin accordance with the relevantregulations may jeopardizeinvestors' right to know andtrigger a crisis of confidence inthe Company, which in turn mayaffect the Company's marketimage and stock price stability.
Risks in disclosure andstandardized governance
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3）Corporate Risk Management
The Company fully considers the impact of climate change on the industry, nationalpolicies and industry development trends, incorporates climate change risks into theoverall risk management system of the Company, systematically identies and analyzesclimate risks faced by the Company, and formulates corresponding risk managementmethods and countermeasures promptly, to lay a solid foundation for timely andeffective avoidance of climate risks, grasping of climate opportunities and adoption ofcountermeasures.
（1）Climate risk identication and assessment
In order to eectively manage climate-related risks, LONCIN has established relevant identication andassessment mechanisms. Climate change considerations are fully taken into account in the strategicplanning process. Through in-depth market research and industry analysis, we assess the changes inmarket demand for our products under dierent climate scenarios, the stability of the supply chain, andthe direction of technological innovation, such as increasing R&D investment in the eld of new energybased on our judgment of the future trend of low-carbon energy. During the investment decision-making process, the Company strictly implements a climate risk assessment procedure. For projectswith high carbon emissions or susceptible to climate risks, prudent assessment and strict screening willbe conducted, and priority will be given to investing in low-carbon, environmentally friendly, and risk-resistant projects to ensure the long-term and sound appreciation of the Company's assets.
（2）Climate risk management
LONCIN is active in seizing climate-related opportunities. The Company has keenly captured the globaltrend of growing demand for low-carbon travel and has invested heavily in the research and developmentof new energy motorcycles. Through continuous technological innovation, a series of high-performance,low-emission new energy products have been launched to meet market demand for green travel andclean energy equipment, creating new growth drivers for the Company. In addition, the Company makesfull use of its technological advantages in the manufacturing industry, strengthens cooperation withscientific research institutions and universities, and carries out research and development projects onlow-carbon technologies. In the production process, the Company promotes the application of energy-saving technologies and equipment to improve energy use efficiency and reduce energy consumptionand carbon emissions. The Company is actively exploring green supply chain management and workingclosely with suppliers to promote the low-carbon development of the entire supply chain and enhance theCompany's green competitiveness in the industry.
（3）Integration of climate risk management with overall corporate risk
managementThe Company has integrated climate risk management objectives into its overall corporate strategicplanning, combining them with traditional business development and nancial objectives. In formulatingfuture business expansion plans, the management fully assesses the climate risks that may be faced bydierent regions and business areas and prioritizes low-carbon and climate-resilient business directions.In addition, we expand our risk identification beyond traditional risk identification to include climate-related physical risks and transformation risks. We use a variety of methods, such as systematic scanningof internal and external environments, sorting out the corporate value chain, collecting relevant dataand information, brainstorming, scenario analysis, etc., to comprehensively identify climate risks andtraditional risks.Short-term objectives
(1-3 years)
The Company plans to reduce the carbonintensity of Scope 1 and Scope 2 by 3-5%per year over the next 1-3 years, whilesetting a target to increase the share ofrenewable energy in energy consumption,reduce the carbon intensity of Scope 3by 5% over 3 years, and enhance carbonreduction in non-production areas such asemployee commuting and green oces.
Medium-termobjectives (3-5 years)
Within 3-5 years, the Companyplans to achieve a cumulative15% reduction in absolute carbonemissions of Scope 1 and Scope 2, a10% reduction in Scope 3 emissionintensity, and carbon emissionreductions in the production processin the production area, includingfurther improvements in energy use.
Long-term objectives
(5-10 years)
The Company is set to achieve furtherreductions in Scope 1, Scope 2, andScope 3 GHG emissions within 10 yearsthrough the addition of carbon offsetprojects, deep decarbonization, andother technologies. In the long term,we will further integrate the concept ofcorporate sustainability into the entirelife cycle of our products, ensure thatthe carbon emissions of our productsare signicantly reduced during the usephase, and strengthen product recyclingmanagement.
reduce the carbon intensity ofScope 1 and Scope 2 by
3%-5%
per yearreduce the carbon intensity ofScope 3 by
5%
plans to achievea cumulative
15%
reduction
a10%
reductionin Scope 3 emission intensity
4）Indicators and targets
To more vigorously promote the implementation of various initiatives to address climate change,the Company has clearly defined the carbon emission reduction targets, actively carry outtargeted emission reduction-related actions to eectively reduce the Company's resource andenergy consumption and eectively contribute to the improvement of the environment and theclimate, which has contributed to the Company's green and low-carbon transformation anddevelopment, as well as to the national "dual carbon" goal.
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Human Resources DevelopmentTechnology-Empowered Industrial Upgrade Driven by Innovation
Rural Revitalization and Community Outreach
We firmly believe that the growth of an enterprise depends to a certainextent on the nourishment of society, and the success of an enterpriseshould also contribute to the development of society. LONCIN is committedto building a platform for the growth of employees, energizing the prosperityof society, and supporting the revitalization of the countryside throughthe three dimensions of talent cultivation, scientific and technologicalinnovation, and rural empowerment. We cultivate talents with the spirit ofcraftsmanship, water the countryside with the power of innovation, andstrive to find the best balance between corporate development and thefulllment of social responsibility, contributing LONCIN's eorts to build amore harmonious and sustainable social ecology.
talent cultivation
scientic andtechnological
innovation
ruralempowerment
In LONCIN's pursuit of sustainabledevelopment, social responsibility hasalways been one of the core driving forces
for the enterprise heading forward
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Human ResourcesDevelopment
LONCIN has always adhered to the coreconcept of being “people-oriented” and iscommitted to building an open, collaborative,warm, and inclusive organizational ecology.We are well aware that talent is the coredriving force of enterprise development andthat the well-being and growth of employeesare directly related to the competitivenessand sustainability of the enterprise. Therefore,LONCIN regards talent cultivation as thecornerstone of enterprise development and iscommitted to creating an all-around, multi-level talent growth system. By optimizing careerdevelopment paths, providing rich trainingresources, creating an inclusive innovationenvironment, and improving employee caremechanisms, we not only provide employeeswith broad career development space butalso provide comprehensive care in work-lifebalance and mental health support. LONCINadheres to the concept of being “people-oriented”, practices the concept of “talent isthe primary resource” with practical actions,strives to let every employee realize his/her self-worth in the development of theenterprise, so that the enterprise and theemployees can jointly promote each other'sgrowth and progress.
LONCIN has always regarded “fairness and justice” asthe core principles of corporate culture and management.
Fairness and justice are not only the basic rights and interestsof employees but also the cornerstone of the sustainabledevelopment of the enterprise. LONCIN strictly abides bytheLabor Law of the People's Republic of China, the LaborContract Law of the People's Republic of China, the Law of thePeople's Republic of China on the Protection of Minors,and otherlaws and regulations, and has formulated the managementdocuments involving personnel employment, remunerationand benefits, assessment and promotion, and separationfrom service, such as the Employment Contract ManagementPractices, theRecruitment and Hiring Management Practicesand theEmployee Separation Management Practices.TheCompany strictly fullls the national laws and regulations onremuneration, vacations, welfare, safety and health, laborinsurance, etc., and fully guarantees the rights and interestsof employees. In all aspects of recruitment, promotion, andremuneration, the Company strictly follows objective criteria,eliminates any form of prejudice and discrimination, prohibitsthe employment of child labor, prohibits the recruitmentof employees under the age of 16 (including internships),prohibits forced or compulsory labor, opposes discriminationand dierential treatment, guarantees equal pay for men andwomen for work of equal value, and follows the limitationson working hours, etc., to ensure that the employment ofemployees is standardized.In addition, the Company provides suitable positions forpersons with disabilities and military-to-civilian transitionpersonnel, such as positions of disciplinary inspection,enterprise management, enterprise publicity, inspection,and security, to create an inclusive and diversified workingenvironment. During the reporting period, the total number ofemployees of the Company was 10,529, and the rate of laborcontract signing and social security coverage were both 100%.optimizing career development paths
providing rich training resources
creating an inclusive innovation environment
improving employee care mechanisms
10,529
100%
the totalnumber ofemployees
socialsecuritycoverage
· LONCIN has always regardedcampus recruitment as a key strategyfor the Company's talent reserve andlong-term development.
The Company focuses on attractingoutstanding fresh graduates fromdomestic and international universitiesand provides a platform for young talentsto realize their full potential through aseries of well-designed recruitment andtraining measures. In 2024, LONCINCampus Recruitment closely focuseson the 7 major dimensions of software/embedded development, electrificationand controls , product design, electricaltechnology, process technology, businessdevelopment, and functional supportto recruit talents. We successfullyonboarded 85 fresh graduates throughour 2024 campus recruitment program,of which 23 graduated from graduateschool and 50 graduated fromundergraduate school.
·LONCIN regards Experienced HireRecruitment as a key driving factor tostimulate corporate vitality, promotesustainable development, and achievecorporate strategic objectives.In 2024, LONCIN onboarded 1,516 peoplethrough experienced hire recruitment.The Company adheres to the recruitmentconcept of “Skills-First Hiring: NoDegree or Experience Bias”, focuses onthe actual ability and potential of talents,and is committed to attracting excellenttalents who can work together to solvethe diculties and problems encounteredin the process of the Company'sdevelopment. Through experienced hirerecruitment, LONCIN can introducediversified professional backgroundsand rich industry experience for itself,and it can provide employees withample career growth opportunities anda perfect training system, which leads tothe common growth of employees andthe enterprise. This open and inclusiverecruitment strategy not only injectsnew vitality into the Company but alsoprovides a platform for employees torealize their personal values, furtherconsolidating LONCIN's competitivenessin the industry.
1.Employment and Compliance Management
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Sta Proportion by Gender
Sta Proportion by Category
Sta Proportion by Age
LONCIN boasts a diverse, structured, highly experienced, and dynamic workforce.As of December 31st, 2024, LONCIN had a total of 10,529 employees, of which7,671, or 73%, were male and 2,858, or 27%, were female.There are 2,342 employees under the age of 30, accounting for 22% of the totalnumber of employees, who continuously infuse fresh energy into the Company;6,361 employees aged 30-50, accounting for 60%, who serve as the dual enginefor experience inheritance and technological innovation, and a stable backbone oftechnical experts; 1,826 employees aged 50 and above, accounting for 17%, whohave the "craftsmanship spirit" of traditional techniques, and act as a platform formentorship-based knowledge transfer to younger employees through the master-apprentice model.The workforce consists of 5,367 production sta, accounting for 51%; 565 salessta, accounting for 5%; 1,594 technicians, accounting for 15%; 136 nancial sta,accounting for 1%; 517 administrative sta, accounting for 5%; 385 managementcadres, accounting for 4%; and 1,965 other sta, accounting for 19%.
2.Diverse Composition of the Workforce
femalemale
sales staproduction staother stamanagement cadresadministrative stanancial statechnicians
aged 30-50under the age of30aged 50 and above
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3.Employee Benets and Safeguards
As a leading company in the motorcycleindustry and one of the representativeenterprises of the Chongqing manufacturingindustry, LONCIN always puts the well-being of all its employees in the rst place.
LONCIN has always taken humanisticcare as an important part of its corporateculture and has long been offering timelycare and precise assistance to employeesin diculty and female employees in termsof their lives and physical health. To thisend, LONCIN has formulated theEmployeeWelfare Management Measures, Regulations(Guidelines) on the Use of Caring Mothers'Nooksand other systems and measures.In accordance with the requirementsof the Company's system, we regularlyorganize special care activities to deeplyunderstand the actual needs of employeesin difficulty and female employees, andprovide them with practical and effectiveassistance. Whether it is difficulties in lifeor challenges in work, the Company activelyextends a helping hand to help them tideover difficulties by distributing subsistencematerials, providing financial assistance,caring for special groups, and other ways.
distributingsubsistencematerials
providing
nancialassistance
caring forspecial groups
LONCIN attaches great importance to theprotection of the rights and interests, andspecial needs of women in the workplace.LONCIN not only adheres to gender equalityin the recruitment and promotion processbut also supports the professional growthof female employees through a varietyof measures, fully demonstrates respectand recognition of women's professionalcapability, and is committed to creating aninclusive and caring work environment.
1）Humanistic Care for Female Employees
（1）We recognize the power of women on
the occasion of International Women's DayDuring International Women's Day in 2024,the trade union of LONCIN specially plannedfestive activities and distributed gifts toall female employees to convey warmththrough practical actions. The theme of theevent, “Women Match Men in Every Way”,highlights the Company's full affirmationof the ability of female employees andencourages them to show their resilience andwisdom in the workplace and in life. Whetherit is the struggle in the professional field orthe work-life balance, LONCIN has alwayssupported female employees in their pursuitof excellence and expressed deep respectthrough holiday blessings and benefits.LONCIN believes that every woman is animportant force for social progress and willcontinue to create an equal and inclusiveenvironment going forward to help themshine with their unique brilliance.
Event with the theme of “Women Match
Men in Every Way”
（2）“Caring Mothers' Nooks” have been
set up for pregnant and nursing femaleemployeesIn order to better care for pregnant andnursing female employees, LONCIN hasset up “Caring Mothers' Nooks” to providethem with a private, comfortable, and safeplace to rest and breastfeed. These nooksare equipped with facilities such as sofas,refrigerators, sterilizers, purifiers, electricfans, etc., and disposable mother and babyproducts and popular books on women andbabies are also provided to meet the needsof female employees at special physiologicalstages. Through this initiative, LONCINnot only provides tangible care for femaleemployees but also contributes to genderequality in the workplace and women'scareer development.
“Caring Mothers' Nooks”
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2）Summer Cooling Care
LONCIN attaches great importance to the working experience andhealth safeguards of employees in a hot environment.
In order to effectively do a good job of preventing heatstroke andcooling in summer, LONCIN organized and carried out the “SummerCooling Care” event to send attentive care to the employees who workin high-temperature environments.
During the event, LONCIN distributed watermelon, cold drinks, andother cooling supplies for front-line employees to reduce the impactof hot weather on their bodies and ensure that they can maintain agood working condition in the hot summer, and also provided high-temperature work subsidies.
Through the series of initiatives, LONCIN not only sent coolness tothe employees but also conveyed the Company's deep concern forthe health of the employees, which further enhanced the sense ofbelonging and happiness of the employees.
Event with the theme of “Summer
Cooling Care”
附录
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3）Encountering Romance through Youth Fellowship
LONCIN is extremely concerned about the marriage and love needs of youngemployees and actively builds a dating platform for single youth. In July 2024,the youth dating and networking event with the theme of “Love in Jiulongpo -Love Forever” was successfully held at the LONCIN Training Center in Area B.The event attracted over 100 single young adults from the Jiulongpo District.Through meticulously designed segments like "ice-breaking games", "interactivesessions", and "rst choices of love", the event promoted communication amongyoung people based on their dierentiated needs and enabled them to talk abouttheir ideals and expand their social circle in a relaxed atmosphere. Eventually,nine pairs of young people were formed on the spot and embarked on theirromantic journey amidst cheers from fellow participants, marking a heart-warming conclusion to the event.
4）Athletes Sweat It Out
LONCIN attaches great importance to the physical and mental health ofemployees and team cohesion development. In the 2024 “VOGE Cup” soccertournament, the Company fully demonstrated its care and support for thesports life of its employees by organizing a one-month sports event withthe participation of more than 100 employees. The players demonstratedteamwork and tenacity, fighting for collective glory. Seizing this momentum.The Company also took this opportunity to advocate the integration of passionand collaboration on the field into daily work, encouraging employees to usesportsmanship as a driving force and strive for annual goals. Through suchactivities, LONCIN continues to create a positive corporate atmosphere, helpingemployees achieve a win-win situation in terms of a healthy body and ecientwork, and promoting the Company's high-quality development.
The scene of the “Love in Jiulongpo - Love Forever” eventGroup photo of “VOGE Cup” nals
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4.Employee Rights and Supervision
LONCIN attaches great importance to guaranteeing the rights and interests of employees, and provides employees with all-around care and support through a perfect human resource management system and a rich welfare system, to ensure that everyemployee can feel respect and warmth in the enterprise, which will help individuals realize their values and the enterprise achievedevelopment.To eectively guarantee the rights and interests of employees, LONCIN has formulated a series of human resource managementsystems, such asHuman Resource Management Procedures, Attendance and Vacation Management Measures, Operational Rules forSalary Management, Provisions on Social Insurance and Housing Provident Fund, Employee Rewards and Punishments, Rules on theManagement of Occupational Health, Rules on the Management of Work Clothing and so on, in accordance with the Labor Law of thePeople's Republic of China, the Labor Contract Law of the People's Republic of China,and other laws and regulations. The abovesystems cover a wide range of aspects, such as remuneration and benets, labor protection, and occupational health and safety,providing solid institutional protection for the legitimate rights and interests of employees.LONCIN is committed to creating a healthy and harmonious working environment for its employees. The Company has astandard working hour system of 8 hours a day, 5 days a week, supplemented by a special working hour system. In addition tothe two-day weekend, statutory holidays, marriage and funeral leave, maternity leave, and other national statutory holidays, theCompany also strictly enforces the annual leave system that is consistent with the national Regulations on Paid Annual Leave forEmployees and the Measures for theImplementation of Paid Annual Leave for Enterprise Employees.LONCIN has established a labor supervision and inspection team consisting of the trade union, human resources department,each line management department and relevant personnel to supervise the publicity, implementation and enforcement of theLabor Law and the Labor Contract Law, as well as the conclusion, fulllment, alteration, cancellation and termination of the laborcontract, so as to ensure that the rights and interests of the employees are fully guaranteed.LONCIN also provides employees with a wealth of welfare rights and benefits, including meal subsidies, free commutertransportation, annual free medical checkups, and holiday care packages. For employees' marriage, childbirth, and other lifeevents, the Company gives out gifts as a blessing; if an employee suers from a major illness or family disaster, the Companywill also give condolence payments or condolence gifts according to the actual situation, to give employees attentive care.
Employee commutervehicle
Stacanteen
remuneration and
benets
laborprotection
occupationalhealth and safety
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LONCIN has always placed the occupational health and safety of its employees at the core of its corporate development, continuously optimizing the occupational health and safety management system for itsemployees, and establishing a series of safety management systems, such as theSafety Inspection System, the Safety Production Goal Management System, the Emergency Rescue Plan Management System, theSafety Education and Training Management System and the Safety Risk Prediction and Early Warning Information Management Measures,in accordance with the domestic and international standards, such as GB/T45001-2020 and ISO 45001. The Company guards the health and safety of its employees in all aspects by improving the system, strengthening training, upgrading facilities, strengthening supervision, and otherinitiatives. To enhance the safety literacy of its employees, the Company organized online trac safety training and exams covering more than 5,200 people in 2024, with a pass rate of 94.4%. By citing historicalaccident cases and clarifying the control measures of key links from the three dimensions of operators, professional technicians, and managers, the Company has compiled the “Today in History” accident casewarning manual, which promotes improvement and serves as a warning. The Company carries out activities such as “Safety Production Month” and “Fire Prevention Month” and organizes diversied activitiessuch as safety knowledge competitions, accident case studies, and emergency drills to create a strong safety culture. These activities not only enhance the safety awareness of the sta but also stimulate theenthusiasm of all sta to participate in safety management, forming a good situation of “Everyone speaks safety, everyone practices safety”.
5.Occupational Health and Safety Management
1）Provision of Comprehensive Health Checkups and HealthManagement to Protect Employee Health
LONCIN is extremely concerned about the continuous optimization ofthe occupational health and safety management system and alwaysputs the health and safety of employees the first place. LONCINstrictly complies with national policies by contributing to employees'basic medical insurance. The Company regularly organizes scheduledmedical checkups for all employees every year, establishes perfecthealth records, and provides a scientific basis for employees' healthmanagement, so as to guarantee employees' physical and mentalhealth in all aspects. As of December 31st, 2024, LONCIN had 10,529employees on record and 100% coverage of employee medicalexaminations.
2）Enhancement of Security Management by Creating a Zero-Risk WorkEnvironmentLONCIN has always been committed to creating a zero-risk workingenvironment and making every effort to prevent workplace accidents. Withthe goal of achieving “zero deaths, zero serious injuries and zero major reaccidents”, we strengthen safety management by identifying, assessing andcontrolling health and safety risks in the workplace. Through the formulationof the Safety Target Responsibility Statement, safety responsibilities at alllevels have been claried to ensure that safety targets are implemented at alllevels. LONCIN organizes regular safety training covering key areas such asproduction safety management, occupational health awareness, notificationof hazards and hygiene protection in each position, and emergency responseprocedures to comprehensively enhance employees' safety awareness andoperational skills.
3）Performance of Emergency Drills to Guard the Safety Bottom LineLONCIN has always adhered to the concept of “No safety issue is too small -mitigate risks proactively”. To ensure the life safety of its employees, LONCINorganized 32 rapid-response emergency response drills covering varioustypes of accidents, including fire accident, limited-space operation accident,heat stroke accident, hazardous chemical leakage accident, electrocutionaccident, mechanical injury accident, and high-temperature burns, etc., in2024, representing a year-on-year increase of 113.33%. Through these drills,the Company has not only strengthened the safety awareness and emergencyresponse capability of its employees but also further improved the scientificrigor and practicality of its emergency response plans, resulting in an accidentrate of only 0.25 per million working hours for LONCIN in 2024.
HealthCheckups
100%
coverage of employeemedical examinations
riskSafety training forthe operation ofCNC machine tools
Emergency response drill for heat stroke accident
Drill on production safety accident
Fire accident emergency response dril
Emergency response drill for electrocution accident
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Adhering to the concept of “talent as the core competitiveness”, LONCIN is committedto providing each employee with an all-round, multi-level training system, coveringprofessional skills training, management capacity enhancement, leadership developmentand cross-departmental exchanges, etc., and has invested RMB 2,876,400 in trainingfunds throughout the year.In 2024, 415 senior and middle managers of the Company set a good example by activelyparticipating in various types of training courses, which eciently drove 4,540 employeesto enthusiastically participate in job-corresponding training courses, with a total of 20,334hours of training, a year-on-year increase of 20.33%, and an average per capita trainingduration of 2 hours.These trainings comprehensively cover employees at all levels and positions, furtherstimulate the potential of employees, guide the planning of their career development path,create a high-quality talent team, and lay a solid foundation for the long-term developmentof the enterprise. LONCIN is making in-depth strategic expansions into overseas markets,so it has customized a 10-week business English systematic training for the backboneteam members, which effectively improves the English skill level of the backbone teammembers, provides a strong support for the future work, and helps the Company to make abigger breakthrough in the overseas market.
6.Diversied Training and Career Development Paths
2,876.40
415 4,540
20,334
（thousand）in training funds throughout the year.
employees to enthusiastically participate injob-corresponding training courses
hours of training
20.33%
a year-on-year increase
Business English
training
Tax training
senior andmiddle managers
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Technology-Empowered IndustrialUpgrade Driven by Innovation
LONCIN has always insisted on taking scientic and technological innovationas the engine, focuses on the development direction of “electrification,intelligence, network connectivity and eco-friendliness”, actively promotesindustrial synergy, cooperation and innovation through continuoustechnological innovation and industrial upgrading, and has establishedstrategic cooperative relationships with several well-known domesticand foreign enterprises and scientific research institutes, such as BMW,MV Agusta, CIP Group and Baidu, to accelerate the commercializationand industrial application of technological achievements and inject newmomentum into the development of the industry.
Electrication
Intelligence
Connectivity
Ecosystem-Oriented
Development
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1.Product Innovation Results and R&D Investment
LONCIN has always adhered to thedevelopment concept of “Technology-focused, Innovation-driven for a BetterLife” and regarded R&D investment asthe core driving force to promote thesustainable development of the enterprise.Through continuous investment inR&D, LONCIN has achieved remarkableinnovation results in various elds, such asengines, motorcycles, all-terrain vehicles,and energy storage devices. Theseinnovations not only provide new ideas anddirections for technological advancementand market expansion in the industry butalso improve people's daily lives in manyways.
无极RR
S
EHOMEP
1）Innovation Driver: Industry-ResearchCollaboration
LONCIN has always taken technological innovation asthe core driving force of enterprise development. Weknow that investment in R&D is the key to maintainingcompetitiveness in the industry. In 2024, LONCINhas 1,594 R&D team members of various types, andaccumulated R&D investment of RMB 534.53 million.Relying on the R&D structure of “Group TechnologyCenter + Division Engineering Research Institute”, weactively engage in deep cooperation with professionalinstitutions such as R&D institutions and technologycompanies. By integrating the advantageous resources ofall parties, we accelerate the research, development, andapplication of green technologies such as Straight-LineABS Self-Calibration Technology and Forward Designof Powertrain Thermal Engine Bolts and Seals. Wecontinue to increase our investment in green technologyinnovation, continuously improve the synergistic effectof technology development, and promote the green andlow-carbon transformation of the Company.
2）VOGE RR660S: “Energy Maxed,Superbike Awakened”The VOGE RR660S is the flagship sport motorcyclelaunched by LONCIN in 2024 and was the brand'smain star product of the year thanks to its outstandingperformance and innovative design. The VOGERR660S is powered by a high-performance 660cctwin-cylinder engine that delivers strong power whilemaintaining excellent fuel economy and environmentalperformance. The lightweight body design andoptimized aerodynamic styling give the RR660S asuperb handling experience. Whether it's a city streetor a professional race track, it's easy to drive andgives you the ultimate driving pleasure. The VOGERR660S not only surpasses some of its internationalcounterparts in terms of core performance but alsoprovides consumers with a high-quality option at amore aordable price, promoting the rise of domesticmotorcycles in the high-end market.The VOGE RR660S is equipped with the industry-leading “active value-added rescue” JUNYOS 3.0rescue system, which is based on vehicle hardwareperception and AI prediction algorithms, and iscapable of quickly obtaining on-site information suchas the location of the incident and the speed of thecar at the time of the accident, allowing exclusive 24-hour customer service personnel to take the initiativeto call the owner to draw up the best rescue plan. It isalso equipped with several advanced electronic controlsystems, including a traction control system and,ABS anti-lock braking system, with a variety of ridingmodes to choose from, so as to protect the user's all-around riding safety and comfort.
3）EHOM EP350: “Your ultimate lightoutdoor companion - where style meetsperformance”
As the “Digital Companion” of the EHOM portableenergy storage series, the EP350 prioritizessleek design and lightweight portability as itscore competitive edges. The EP350 featuresinterchangeable long/short straps and multiplecolor options, precisely meeting young users’dual demands for personalization and practicalityand redefining the ”light-outdoor” experienceof portable energy storage. In particular, theenhanced metal handle design at the top and theoriginal design of the “small magic box” witha one-stop storage function at the bottom putrespect for the user experience at the top of thelist. The EP350 is equipped with a built-in 299WhLi-Iron Phosphate battery that supports 350Wrated output power and can reach 700W peakoutput with SpurFlux upscaling technology. Thispowerful power reserve can meet the chargingneeds of all types of devices in outdoor camping,hiking, photography, and other scenarios. What'smore, in special environments such as emergencyrescue or plateaus, EHOM EP350 is able toprovide power support for oxygen cylinders,oxygen supply machines, and other equipment toensure the safety of outdoor activities.
LONCIN has been actively building motorcycleculture through the VOGE brand, organizing allkinds of motorcycle circle activities, such asGymkhana competitions and track experience days.The VOGE RR660S has captivated motorcycleenthusiasts worldwide with its high performanceand striking design, significantly boosting thespread of motorcycle culture and fostering astronger rider community. It not only enhances theinuence of Chinese motorcycle brands in the worldbut also lays the foundation for further expansion ofdomestic motorcycles in the global market.
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2.Supply Chain ESG Management
and Supplier Empowerment Program
LONCIN attaches great importance to the sustainable development of its supply chain, integratingESG principles into all aspects of supply chain management to build a green, efficient, andtransparent supply chain system. By formulating strict supplier access standards, establishing acomprehensive ESG evaluation system, and conducting targeted empowerment training, LONCINpromotes continuous improvement of its suppliers in environmental, social, and governance aspects,thereby contributing to the high-quality development of the entire industrial chain.
In 2024, LONCIN achieved remarkable success in customer management andsatisfaction. According to the customer satisfaction survey results, over 95.71%of domestic and foreign customers highly recognized LONCIN across five keydimensions: sales personnel performance, R&D capabilities, service systems, productquality, and delivery processes.In response to isolated cases where customer expectations were not fully met,LONCIN promptly developed improvement plans and implemented optimizationmeasures. In addressing product complaints, LONCIN efficiently analyzed the rootcauses and promptly formulated corrective measures, ensuring a 100% on-timecomplaint resolution rate.
3.Customer Management
and Satisfaction Enhancement Program
95.71%
domestic and foreign customers highly recognized
100%on-time complaint resolution rate
1）Supply Chain ESG Management
LONCIN rmly believes that building a "green supply chain" is critical to its long-term competitivenessand fulfillment of social responsibility. LONCIN has fully integrated ESG principles into its entirelifecycle of procurement management and has formulated relevant systems such as theProcurementControl Procedures, Supplier Access and Exit Management Measures, Supplier Contract and ManagementManual, and Supplier Evaluation Management Measures,which explicitly require suppliers to strictlycomply with LONCIN's standards in environmental protection and social responsibility. LONCINconsistently requires suppliers to conduct operating activities in compliance with laws and regulations,effectively safeguarding employees' legal rights. Suppliers are required to organize regular trainingfor employees to ensure employees are familiar with and comply with relevant laws and regulations,prohibit the use of child labor and forced labor, respect employees' freedom, and adhere to principlesof equal employment. Additionally, suppliers must provide employees with a safe and healthy workingenvironment, equip necessary medical facilities, and prevent harm caused by exposure to hazardouschemicals. By integrating ESG principles into the entire lifecycle of procurement management,LONCIN not only enhances the sustainability of its supply chain but also contributes to driving greentransformation in the industry and promoting harmonious social development.
2）Supplier Conference
LONCIN deeply recognizes the importance of delivering a "green supply chain". LONCIN plans to holda National Supplier Empowerment Conference in 2025 to promote the sustainable development ofthe supply chain. Through this conference, LONCIN aims to actively promote the joint implementationof green development principles between suppliers and enterprises, popularize fundamental ESGknowledge and information on sustainable supply chains, and provide suppliers with capacity buildingand knowledge empowerment. In addition, at the end of the year, the Company will conduct anexcellent supplier evaluation activity by combining the materials reported by suppliers, and will award100 "Green Supplier" partners and other honorary titles, to honor supplier partners with outstandingperformance in low-carbon development, and to jointly promote the green transformation and high-quality development of the supply chain. Through these initiatives, LONCIN not only enhances itscompetitiveness in green manufacturing but also sets a benchmark for the sustainable developmentof the entire industry.
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4.Property Rights Management
1）In 2024, LONCIN continued to advance technologicalinnovation, achieving remarkable results and furtherconsolidating its technological leadership position in theindustry.In 2024, LONCIN was granted 6,962 patents, including 578domestic and international invention patents, demonstratingits strong technological reserves. Newly granted patents in2024 totaled 217, covering domestic invention patents (58),utility model patents (73), and design patents (80 domesticand 6 international), continuously releasing its innovativevitality. Currently, LONCIN holds 1,591 valid patents, bothdomestically (1,576) and internationally (15), including 350invention patents (347 domestic and 3 international), 664utility model patents (663 domestic and 1 international), and577 design patents (566 domestic and 11 international).This forms a three-dimensional patent protection networkprimarily focused on domestic coverage while extendingto key global markets, providing core support for productcompetitiveness enhancement and international strategyadvancement.
2）LONCIN prioritizes intellectual property protection and hasestablished a comprehensive management system to ensurethe security and competitiveness of its intellectual property.LONCIN effectively manages various types of intellectualproperty through a series of systems, includingIntellectualProperty Management Measures, Patent Management and WorkManual, Property Rights Application Process, Property Rights RiskSearch Process, and Intellectual Property Reward ManagementMeasures,integrated with LONCIN's OA system. The LegalDepartment of LONCIN successfully organized 10 specializedtraining sessions in 2024 to enhance the awareness of relevantdepartments regarding intellectual property and facilitateefficient intellectual property work. The training covered keyareas such as patent disclosure writing, patent infringementinterpretation, and intellectual property risks in cross-bordere-commerce.Through systematic training, LONCIN aims to strengthen theprofessional capabilities of various departments in intellectualproperty management and application, providing solid supportfor the Company's technological innovation and marketexpansion.
3) In 2024, LONCIN achieved outstanding results
in the generator and engine sectors, accomplishingdual breakthroughs in product upgrades and marketexpansion through technological innovation andglobal cooperation.In the generator sector, the RV7000 RV (recreationalvehicle)-specific generator set, co-developed witha global industry leader, CUMMINS, successfullycompleted prototype testing and received customerapproval. It is expected to be officially launchedin the first quarter of 2025. In the engine sector,LONCIN successfully developed multiple commercialvertical-axis engines, among which the CV170-2 has completed the project application in STIHL,the third-largest customer in Europe, laying asolid foundation for LONCIN to further expand itscommercial engine market and enlarge its marketshare.
domestic andinternational inventionpatents
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Rural Revitalization and CommunityOutreach
While promoting high-quality development, LONCINactively engages in rural revitalization and communityintegration practices and is committed to achieving long-term collaborative development between the enterpriseand society. LONCIN actively responded to the nationalrural revitalization strategy, combined with its industrialadvantages, and through multi-dimensional measures,including targeted procurement of agricultural productsand establishment of intelligent counters for povertyalleviation through consumption, it helped rural economicdevelopment and environmental improvement, contributedto the integrated development of urban and rural areasand the modernization of community governance,demonstrating the Company's commitment and role in thefulllment of its social responsibility.
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1.Sustained Investment in Social Welfare Programs
As a corporation with a strong sense of social responsibility, LONCINcontinues to uphold its corporate mission of "Serving through IndustrialDevelopment and Assuming Social Responsibility," actively fulfilling itsrole as a corporate citizen through practical actions that benet societyand support vulnerable groups.In 2024, LONCIN actively participated in the "Caring for Disabilities,Sharing Sincere Companionship" public welfare fund-raising activityorganized by the Chongqing Welfare Foundation for the Physically andMentally Challenged, demonstrating the Company's compassion andsense of responsibility.
LONCIN deeply understands that public welfare is not only an effectiveway to address social issues but also an important means for acorporation to undertake social responsibility and project positive energy.By participating in this public welfare fund-raising activity, the Companyhas not only provided practical help to families of the disabled but alsofurther enhanced the sense of social responsibility and cohesion of itsemployees. At the same time, LONCIN also actively responded to theinitiative of the activity, encouraging employees to participate in thesympathy activities, to transfer warmth through practical actions, andto create a sound atmosphere for assisting persons with disabilities tointegrate better into society.In addition, LONCIN supports public welfare through various means,including but not limited to providing employment opportunities forpersons with disabilities, participating in community welfare services, andsupporting education. LONCIN firmly believes that a corporation's valueis not only reected in its economic benets but also its contribution tosociety and support for vulnerable groups. Through sustained investmentin public welfare, LONCIN hopes to inspire more enterprises and socialforces to engage in public welfare, collectively contributing to the creationof a more harmonious and inclusive society.
Going forward, LONCIN will continue to uphold the concept of "serving the country through industrial developmentand assuming social responsibility", actively participate in more public welfare programs, practice corporate socialresponsibility with practical actions, and contribute more to the sustainable development of society.
Certicate of Honorfor Supporting Personswith Disabilities 2024
Provide Employment OpportunitiesCommunity Public Welfare ServicesSupport for Education and Industry
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2.Rural Industry Support with Additional Channels
LONCIN actively responds to the national rural revitalizationstrategy by setting up poverty alleviation counters to help increasefarmers' income and promote rural revitalization.The Company has strategically deployed poverty alleviationcounters in areas with dense populations and high consumptionfrequencies, such as corporate canteens and employee living areas.Each counter is equipped with an intelligent temperature controlsystem that precisely regulates the temperature, ensuringagricultural products are maintained at optimal freshnessconditions, maximizing their quality and preservation state.Additionally, the counters thoughtfully display product origininformation, enabling employees to learn about the rural storiesbehind the products while shopping, thereby strengthening theemotional connection associated with consumption-based support.This initiative not only provides employees with convenientshopping channels to satisfy their demand for healthy and greenagricultural products but also broadens the distribution channels ofagricultural products in rural areas, promotes the development ofthe agricultural industry, and provides tangible support for farmersto increase their income. It serves as a vivid example of LONCINempowering rural revitalization.
povertyalleviationcountersintelligenttemperature
controlsystem
displayproduct origininformation
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Operating and Setting up Agreements for Intelligent Counters
for Poverty Alleviation through Consumption
Compliance andTransparent Governance
Reinforcement of Compliance and Corporate Governance StructureTransparent Dialogue Targeting Specic Stakeholder Groups
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Reinforcement of Compliance andCorporate Governance Structure
（1）Organizing party lectures by the Party Branch Secretary
Through the initiative of the Secretary delivering Partylessons, Party members’ awareness of integrity, self-discipline, and their sense of mission have been enhanced.To thoroughly study and implement General Secretary XiJinping’s important speeches and instructions on Partydiscipline study and education, and to accurately graspthe objectives and key tasks of this education, the activityhas effectively enhanced the integrity and self-disciplineof all Party members in the branch, thereby building arobust ideological defense against corruption. In 2024, thegeneral Party branch committees initiated and launched theactivity of Party lessons by secretaries, and the secretariesof the general Party branch committees and each Partybranch delivered Party lessons to Party members 16 times,delivering the latest theories, lines, principles, and policiesof the Party to CPC Party members. Through this activity,it has effectively enhanced the awareness of integrity andself-discipline of Party members, built a firm ideologicalline of defense against corruption, guided Party membersto establish a correct worldview, outlook on life and values,further enhanced the sense of mission and responsibility ofParty members, and provided a solid ideological safeguardand disciplinary support for the promotion of high-qualitydevelopment of the corporate.
1.Promotion of the Leadership of Party Building
LONCIN maintains its original commitment to followingthe Party's guidance, thoroughly comprehending theguiding principles of the 20th National Congress, andfully implementing Xi Jinping Thought on Socialismwith Chinese Characteristics for a New Era, be self-confident and self-improvement. In 2024, LONCIN'sParty-building work focused on its development goals,guiding Party members to play an exemplary vanguardin technological innovation, market expansion, andbrand building.
1）Structure of the Party OrganizationThere are ve Party branch committees under the generalParty branch committees of LONCIN. There are 219serving Party members, with an average age of 38. Ofthese, 75.23% have a bachelor's degree or above. Thishigh-quality, youthful Party member team provides asolid foundation for the high-quality advancement of theCompany's Party-building work.
2）Party History Education on a Regular, On-going BasisThe general Party branch committees of LONCIN haveestablished a mechanism for the normalization andlong-term institutionalization of Party history studyand education, guiding Party organizations at all levelsto thoroughly study the lines, principles, policies,fundamental theories, and basic knowledge of the Party.Through this mechanism, all Party members have engagedin an in-depth study of Party history, continuouslystrengthening their Party spirit cultivation and stimulatingwork enthusiasm. The achievements in the Party historystudy are effectively transformed into a strong drivingforce for the Company's development, injecting sustainedvitality into the high-quality development of the Company.
Learning Activities:
Party Lessonsby Party Branch Secretaries
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Learning Activities:
Party Lessonsby Party Branch Secretaries
（2）Strengthening and standardizing the "Three Meetings and One
Lecture" system
Leveraging the "Three Meetings and One Lecture" system as a key tool to advance thein-depth and practical study of Party history. By conscientiously implementing the "ThreeMeetings and One Lecture" system, the general Party branch committees actively conveythe line, principles, policies, and important deployment of the Party organization at thenext level up, guides the Party branches to carry out study and work, and constantlystrengthens the education and management of Party members, consolidates thefoundation of Party building and improves the quality of Party building through the formsof general meetings, Party branch committees, Party group meetings and party lessons.In April 2024, the general Party branch committees organized and led all Party branchesin conducting Party discipline study and education, further strengthening the sense ofdiscipline and guiding Party ocials to enhance self-restraint while consciously adheringto the Party's discipline and regulations. This activity has provided robust political anddisciplinary support for the Company to be a vanguard of the Scientific Outlook onDevelopment in practice.
结篇
（3）Conducting distinctive Party-building activities aligned with corporate strategy
Conduct distinctive party-building activities that align with corporate strategy to enhance the cohesion and ghting spiritof Party organizations. To celebrate the 103rd anniversary of the founding of the Communist Party of China (CPC), reviewits glorious history, and honor its monumental achievements, the Party General Branch carried out a series of themedactivities titled "Carry forward the Revolutionary Traditions and Heritage" in 2024 to further enhance the cohesion andghting spirit of Party organizations. The specic activities are as follows:
In January, the general Party branch committees of LONCIN held the "2024 LONCIN New Youth Forum" event. Outstandingyouth representatives from different positions served as lecturers, sharing career experiences and life insights withnearly 200 young core employees and new graduate recruits. The activity inspired young employees to strengthen theircommitment to serving the country through science, master professional skills, embrace innovation, integrate theoreticalknowledge with practical work, continuously promote technological innovation and achievement transformation, andcontribute to the Company's high-quality development.In May, members of the Party committee, members of the general Party branch committees, secretaries of Party branches,and selected Party member representatives visited the Chongqing Jianchuan Museum to commemorate the outstandingmerits of revolutionary martyrs, and deeply felt the ghting spirit, self-sacrice, hard work, and relentless progress of therevolutionary predecessors. The activity inspired every Party member to strengthen their commitment to communist idealsand service to the people while enhancing their political responsibility and historical mission.In June, the general Party branch committees organized care visits for Party members facing hardships on the eve of July1st, delivering the warmth and care of the Party. These eorts ensured that members in need genuinely felt the supportand solidarity of the Party organization, thereby consolidating the collective drive for progress.The Company held the July 1st Review and Awards Ceremony and "My Story with LONCIN" Speech Contest in July. Atthe ceremony, "Outstanding Party Members" and "Exemplary Party Workers" from each Party branch were honoured,and three representatives of Party members delivered speeches on the stage, sharing their stories of growing up in theCompany and their experiences and insights of growing up with the Company, demonstrating the exemplary and vanguardroles of the Party members in the development of the Company.
Visit Chongqing Jianchuan Museumto Commemorate the Outstanding Merits ofRevolutionary Martyrs in May 2024
Party Discipline Study and Education
Activity in April 2024
2024 LONCIN New Youth Forum
July 1st Review and Awards Ceremony and "My
Story with LONCIN" Speech Contestseminar
Party Discipline Study and Education
Activity in April 2024
Party Discipline Study and Education
Activity in April 2024
2024 LONCIN New Youth Forum
July 1st Review and Awards Ceremony and "My
Story with LONCIN" Speech Contest
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（4）The general Party branch committees, trade union, and mass organization
synergistically promote the sustained, healthy, and rapid enterprise developmentTo enhance the attractiveness, cohesion, operational capacity, and outreach ofthe general Party branch committees and mass organizations while invigoratingemployees’ entrepreneurial passion and vitality, the Company continues tostrengthen the mass organization with the general Party branch committees asthe core and to promote the Company’s sustained and healthy development.To eectively popularize the prevention of telecommunication fraud knowledge,further enhance the preventive awareness and fraud identification ability ofall employees, and effectively curb the infiltration of telecommunication fraudand other illegal and criminal activities to the Company, to maintain the safetyand stability of the Company, on April 26th, 2024 the Company's general Partybranch committees, in coordination with the trade union, and together with thePeople's Government of Bafu Township and Bafu Township Police Station, heldan anti-fraud publicity and training activity.Through this training, employees have a deep understanding of the harm oftelecommunication fraud, mastered the practical skills of prevention, theirawareness and ability to prevent fraud has been significantly improved. Tofacilitate both "educational qualification" and "professional competency"enhancement of industrial workers, the grand opening ceremony of the"LONCIN Class" for the educational qualification improvement of industrialworkers in autumn, which was meticulously planned and prepared jointly by theHuman Resources Department, the trade union, and the general Party branchcommittees of the Company, was held on October 31st, 2024.The successful opening of the "LONCIN Class" has built a broad learningand growth platform for industrial workers, allowing them to enhance theirprofessional skills and comprehensive quality while upgrading their educationalqualifications, truly achieving the goal of "gaining both knowledge anddiplomas simultaneously". This not only injects strong talent power for theCompany’s high-quality development but also builds solid talent supportfor the construction of new socialist Chongqing and the “33618” modernmanufacturing cluster system, demonstrating the Company’s active role intalent cultivation and social responsibility.
Anti-fraud Publicity and Training
Opening Ceremony of the "LONCIN Class" for Educational Qualication Improvement
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With increasing global attention to sustainable development, ESG has become an important standard for measuring an enterprise's ability to develop sustainably.The Company actively responds to the national "Carbon Peaking and Carbon Neutrality" policy and meets the sustainability demands of both domestic andinternational markets.The Company has established an ESG Management Leadership Group, the highest decision-making body for ESG management, led by the Chairman. The mainresponsibilities of the Leadership Group include the comprehensive review, decision-making, and supervision of major ESG matters, including the Company'sESG governance structure and systems, ESG strategy, ESG risks, ESG reports, ESG plans, climate change risk impacts, and response measures. Under theLeadership Group, a working group has been set up to implement specic tasks. Under the Leadership Group, a working group has been set up to implementspecic tasks. The working group comprises the following departments: Operations Management Center, Strategic Management Center, Securities Aairs Center,Financial Management Center, Organization and Human Resources Center, Digitalization Center, Manufacturing Technology Center, Technology Center, Party andCommunity Aairs Center, Risk Management Center, and General Manager Oce.. The Securities Aairs Center is responsible for coordinating the Company'sESG-related work, which includes establishing the governance structure, preparing reports, planning activities, organizing training, identifying and enhancing ESGtopics, and reporting the work progress to the Leadership Group. The management platform designates ESG liaisons to cooperate, implement management plans,coordinate stakeholders, systematically manage topics, collect and report information, and actively participate in training.
In 2024, the Company actively implemented ESG measures to ensure that its environmental, social, and corporate governance objectives were met. The specicmeasures are as follows:
Practicing green manufacturing and leading industry standards. In terms of environmental management, the Company was awarded the title of "National GreenFactory" in 2024. This honor not only represents high recognition of the Company's long-term efforts in green manufacturing but also highlights its leadingposition in promoting sustainable development within the industry.With win-win as the core, to promote the common development of the brand and employees. In terms of social responsibility, the Company actively advanced itsglobal brand strategy in 2024, continuously enhancing brand value and channel quality. With its outstanding performance in the consumer sector, the Companywas awarded the title of "The Listed Company with the Most Growth in Large Consumption" in the 14th China Listed Company Reputation Ranking, demonstratingits robust market competitiveness and positive reputation.Optimizing structure and strengthening internal controls and risk management. In terms of corporate governance, the Company successfully completed the re-election of its fifth Board of Directors on August 29th, 2024, injecting new vitality into its steady development. By optimizing the structure of the Board ofDirectors, the Company can better formulate strategic plans and improve decision-making eciency while also strengthening internal control and risk managementto ensure the compliance and soundness of its operations.Enhancing transparency and boosting investor condence. In terms of information disclosure and communication, the Company maintained close interaction andcommunication with investors through various channels, ensuring that investors could promptly and comprehensively understand the Company's value and strategicdirection. In 2024, the Company proactively prepared and disclosed the Environmental, Social, and Governance (ESG) Report 2023, conveying its rm commitmentand practical actions in sustainable development through high-quality information disclosure.
2.Board ESG Oversight Mechanism and Governance Structure Improvement
1）ESG Governance
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（1）Optimizing governance organizational structure
According to theArticles of Associationof LONCIN, the generalmeeting is the highest authority of the Company and exercisesits powers in accordance with the law. The Company's Boardof Directors has established the Strategy and InvestmentCommittee, Audit and Risk Control Committee, NominationCommittee, Remuneration and Appraisal Committee, BudgetManagement Committee, and Related Transaction Committee.On August 29th, 2024, the Company held its rst extraordinarygeneral meeting of 2024, successfully completing the re-election of the Board of Directors and the SupervisoryBoard. The meeting considered and passed theProposalfor Re-election of the Board of Directors and Election of Non-independent Directors for the Fifth Session of the Board ofDirectors, Proposal for Re-election of the Board of Directors andElection of Independent Directors for the Fifth Session of theBoard of Directors, and Proposal for Re-election of the SupervisoryBoard and Election of Non-employee Supervisors,completingthe re-election of the Board of Directors and the SupervisoryCommittee, electing the members of the Fifth Session ofthe Board of Directors and the Supervisory Committee, andidentifying the members of the various specialized committees.As of December 31st, 2024, the Board of Directors of LONCINcomprises 9 directors, including 3 independent directors(33.33%). The age of members of the Board of Directorsranges from 30 to 60 years old, forming a tiered structure ofsenior, middle-aged, and young members. Over 80% of thedirectors hold postgraduate degrees or higher, with diverseprofessional backgrounds covering multiple fields such asfinance, law, and management, enabling the Company toreceive comprehensive and professional guidance, effectivelyenhancing corporate governance levels, and providing solidintellectual support and decision-making assurance for theCompany's healthy and stable development.
2）Governance Structure
To ensure the achievement of theCompany's sustainable developmentgoals, the Company strictly adheres torelevant laws and regulations, includingthe Company Law of the People'sRepublic of China, the Securities Lawof the People's Republic of China, andthe Constitution of the Communist Partyof China,as well as the listing rulesand the requirements of securitiesand futures management regulationsof the Shanghai Stock Exchange, tostandardize corporate governanceand management practices. Relyingon the governance structure of theGeneral Meeting and the Board ofDirectors, the Company steadilypromotes standardized operations. Onthis basis, the Company continuouslyimproves its internal managementsystems and processes, refines theArticles of Association, and strengthenscompliance operations. These measureseectively elevate the level of corporategovernance and enable the Company toaddress the various risks and challengesencountered during its operationsand business development, therebyproviding a solid guarantee for theCompany's healthy and stable growth.
30-60
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NameLi YaoGong Hui
Hu Xian yuan
HuangPeiguo
JiaoYiyang
Liu Zhao
YangZeyan
ChenDingwen
LiuJianxin
Gender
MaleMale
Male
Male
Male
Male
Male
Male
Male
Year of birth 1964 1970
1972
1976
1986
1988
1965
1971
1979
PositionChairmanDirector
Director
Director
Director
Director
IndependentDirector
IndependentDirector
IndependentDirector
Political aliationCommon citizenCommon citizen
Common citizen
Common citizen
CPC Party Member
Common citizen
CPC Party Member
Common citizen
CPC Party Member
Educational qualication
Master ofManagementMaster of BusinessAdministration
Master ofEngineering
Master ofEconomics
Master of Science
Master ofEngineering Science
Master of Laws
Master ofAccountancy
Doctor ofManagement
Professional Committee
AppointmentsChairman of the Strategyand Investment Committee,Member of the Nomination
CommitteeMember of the Strategy andInvestment CommitteeMember of the Remunerationand Appraisal Committee,Member of the BudgetManagement Committee,Member of the Strategy andInvestment CommitteeMember of the RelatedTransactions Committee,Member of the Strategy andInvestment CommitteeMember of the RelatedTransactions Committee,Member of the Strategy andInvestment CommitteeMember of the Strategy andInvestment CommitteeChairman of the RelatedTransactions Committee,Chairman of the Remunerationand Assessment Committee,Member of the Audit and RiskControl Committee, Member ofNomination Committee, Memberof the Budget ManagementCommittee, Member of theStrategy and Investment
CommitteeChairman of the Audit andRisk Control Committee,Chairman of the BudgetManagement Committee,Member of the Strategyand Investment Committee,Member of the RelatedTransactions Committee,Member of the Remunerationand Assessment Committee
Chairman of the NominationCommittee, Member ofStrategy and InvestmentCommittee, Member ofthe Related TransactionsCommittee, Member ofthe Audit and Risk Control
Committee
Board of Directors Information Table
10 The committees under the Board of Directors of the Company have been adjusted and newly established in accordance with the changes in functions. On the one hand, theformer Strategy Committee and Audit Committee have been adjusted to become the Strategy and Investment Committee and the Audit and Risk Control Committee; on the otherhand, the Budget Management Committee and the Related Transactions Committee have been newly established.After the newly established and adjusted committees under the Board of Directors of the Company, the main composition includes the Strategy and Investment Committee, Auditand Risk Control Committee, Budget Management Committee, Related Transaction Committee, Nomination Committee, and Remuneration and Appraisal Committee.
100%
attendance rate
（2）Increasing synergy of Three Corporate Governance Bodies
In 2024, the efficient operation of the "Three CorporateGovernance Bodies" mechanism, i.e., the synergy of the Boardof Directors, Board of Supervisors, and General Meeting ofShareholders, was the guarantee for the scientic and legitimatedecision-making of the Company. In selecting and recruitingdirectors, supervisors, and executives, the Company prioritizedprofessional competence and a sense of responsibility, ensuringleadership stability and steady operations. In terms of remunerationmanagement of directors, supervisors, and senior management,the Company has established a scientific and reasonableincentive mechanism, closely linking the remuneration of seniormanagement with the overall performance of the Company, to fullymotivate them to invest more energy and wisdom in the long-termdevelopment of the Company, and to realize the co-developmentof individuals and the Company.In 2024, the Company held 4 General Meetings, 5 Board ofDirectors meetings, 1 Strategy Committee meeting, 5 AuditCommittee meetings, 2 Nomination Committee meetings, 1Remuneration and Appraisal Committee meeting, 3 IndependentDirectors' special meetings, and 4 Board of Supervisorsmeetings. The attendance rate of the Board of Directors, variousspecial committees, and the Board of Supervisors was 100%,ensuring timely and effective decision-making of the Companyand providing strong support for the Company's high-qualitydevelopment.
To strengthen the Company's headquarters management functions and align with strategic development needsand internal control requirements, the subordinate committees of the Board of Directors and the originalorganizational management structure underwent adjustments and additions in February 2025 based onfunctional changes and strategic development needs. The committees were reorganized from the original four:
Strategy Committee, Audit Committee, Nomination Committee, and Remuneration and Appraisal Committee,into six committees.Additionally, the Company restructured its departments to comprise ten Centers and one Oce, specically:
Operations Management Center, Strategic Management Center, Securities Affairs Center, FinancialManagement Center, Organization and Human Resources Center, Digitalization Center, ManufacturingTechnology Center, Party and Community Affairs Center, Risk Management Center, and General ManagerOce. Various functions have been split, supplemented, and optimized in this process.
the Board ofDirectors
the Board ofSupervisors
GeneralMeetings
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3.Anti-corruption Compliance System and Data Security Protection
In active response to the call of the CPC Central Committeeand the State Council to "Build Law-based and Integrity-driven Private Enterprises," the Company upholds a high level ofpolitical consciousness and commitment to responsibility. It hascomprehensively carried out initiatives to construct an integrityprivate enterprise system and foster an integrity culture, aimingto regulate the integrity in the professional conduct of leadersat all levels and employees. These eorts eectively safeguardthe Company's interests and ensure its healthy and sustainabledevelopment.
1）Enhancement of the Integrity System
The Company has established a standardized and transparent integrity systemthat forms the foundation for sustainable development. In November 2024,the Company revised and improved itsIntegrity Management System, whichclearly outlines detailed anti-corruption requirements for employees andbusiness partners such as suppliers and strictly prohibits any form of bribery,thereby establishing a robust institutional defense line for integrity. The HumanResources and Corporate Management Department of the Company has setup a file on integrity employment, regarding their integrity performance asan important basis and component for performance evaluation, appointment,and promotion. This initiative not only reinforces supervision mechanismsfor integrity and self-discipline but also motivates employees to consciouslycomply with integrity regulations, preventing violations and disciplinaryincidents from their roots and ensuring that they abide by the law and maintainself-awareness.In 2024, leaders in charge of various business departments at the Company'sheadquarters, general managers of each entity, and leaders in charge ofprocurement and quality at each entity signed theIntegrity CommitmentLetter.They solemnly pledged to abide strictly by national laws, regulations,and the Company's rules and regulations, resolutely resist commercialbribery, refrain from seeking improper benefits through their positions, andeffectively safeguard the Company's interests. This action highlights thedetermination of the Company's leadership to be integrity and disciplined,and sets an example for all employees. To enhance the influence of theintegrity culture, the Company has arranged publicity boards in prominentpositions such as the employee cafeteria, publicized the institutional setupof integrity private enterprises, integrity management system, tip-off andcomplaint channels, compliance management, common types of job-relatedcrimes and the consequences of violation of the law, and so on. Throughsuch vivid and visualized publicity, the Company has successfully fostered astrong atmosphere of integrity culture, and the publicity eect is equivalent toproviding systematic integrity training to over 1,000 employees.In July 2024, the Company invited the People's Procuratorate of JiulongpoDistrict to conduct a legal awareness campaign on "Safeguarding Businessesand Protecting Enterprises." Through analysis of actual cases, the campaignhighlighted how common legal violations harm corporate interests, promptingthe corporation to strengthen its institutional system further, eliminatemanagement vulnerabilities, and prevent corruption. This campaign not onlyenhances the employees' legal awareness but also creates a clean and positivebusiness environment for the Company.
2）Establishment of Smooth Whistleblowing ChannelsAccessible tip-o channels are a crucial tool for corporates tostrengthen internal management, prevent risks, and enhancecompliance. To ensure that the tip-off channels operateeciently, the Company has formulated and implemented theCompany Complaint and Wistleblowing Mailboxes ManagementMeasuresand has actively built a diversied tip-o platform,set up a complaint and tip-o mailboxes and publicized themon the official website and the internal office platform, andwidely accepted the tip-os and complaints of the Company'semployees and outsiders on the Company's employees'violation of the integrity of the behavior. The Companysolemnly commits to keeping the personal information ofreporters and complainants strictly condential, ensuring theirlegal rights are protected, and eliminating any concerns aboutretaliation.If any behavior that violates the Company’s compliance,relevant laws and regulations, or other stipulations is identied,tip-offs can be submitted either with full identification oranonymously through the following channels:
Email: tousu@loncinindustries.com
1,000+
equivalent to providing systematic integrity training to
over 1,000 employees.
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The Company Invited the People's Procuratorate of Jiulongpo District to Conduct a Legal
Awareness Campaign on "Safeguarding Businesses and Protecting Enterprises."
First Line of Defense: Business Department Defense Line
The defense line of business departments is mainly composed of the Company's businessdepartments or subordinate entities, which are responsible for the daily operation andmanagement of front-end departments. As the primary risk responders and main partiesresponsible, these departments autonomously identify major risks in their business processesand design corresponding risk response measures. By integrating with the Company’soperations and risk management work, these departments establish and maintain appropriatestructures and processes to ensure that all business activities comply with legal, regulatory,and ethical requirements. These departments achieve closed-loop risk management throughrisk identication, assessment, and implementation of response measures.
Second Line of Defense: Internal Supervision and Monitoring Defense
The internal supervision and monitoring defense line is mainly composed of the Company'sfinance, quality, legal, safety, risk control, and other related departments, which provideprofessional knowledge, support, and supervision for the matters related to risk managementof the first line of defense, put forward reasonable suggestions, and are responsible forplanning and supervising the risk management work and improving the risk managementsystem in combination with the corresponding business processes.
Third Line of Defense: Internal Audit Defense LineThe Audit Committee and the Audit Department of the Board of Directors have establishedthe third line of defense for risk management and control. The Audit Department regularlyaudits various businesses of the Company to provide independent evaluation and assuranceon the risk points existing in relevant businesses and the eectiveness of internal control.Additionally, the Audit Department continuously monitors and manages the identied risksand tracks and supervises the improvement and enhancement of internal control by themanagement of the Company. Moreover, the Audit Department reports quarterly to the AuditCommittee of the Board of Directors to ensure the independence of audit work. The internalaudit defense line provides independent and objective confirmation and consultation forthe accuracy and eectiveness of corporate governance and risk management, driving theimprovement of the risk management system.
Based on the Risk Classication Framework and risk assessment standards, the Companyregularly conducts internal and external risk identication in six areas: strategic risk, marketrisk, operational risk, financial risk, legal risk, and social responsibility risk. The Companydevelops dierentiated response strategies for risks of varying categories and impact levelsand continuously improves risk management processes based on assessment results toachieve closed-loop risk governance. The Company integrates ESG risk control measuresinto its internal control and risk management system, optimizing and consolidating riskreview and resource allocation, and strengthening its risk response and control capabilitiesin the eld of sustainable development.
4.Risk Management and Internal Control
In a complex and ever-changing globaleconomy, factors such as the uncertainty ofSino-U.S. trade relations, an uneven globaleconomic recovery, geopolitical conflicts,exchange rate fluctuations, and rising rawmaterial costs due to global inflation maypose potential threats to the Company’sexport business and market confidence. Infacing these internal and external challenges,the construction of the Company's riskmanagement system and internal controlis fundamental and crucial to dealing withinternal and external risks and safeguardingits stable and robust operation. In compliancewith relevant laws and regulations, theCompany continuously strengthens itsrisk control measures and refines itsinternal control management systems andframeworks. Through systematic mechanismsfor risk identification, assessment, andresponse, the Company enhances its strategicresilience in a complex and volatile marketenvironment, thereby promoting sustainedand stable growth.
1）Comprehensive Risk Prevention and Control
（1）Risk management structure
The Audit Committee is the highest deliberative and decision-makingbody for risk management, with the Office of the Board of Directorsassisting in its related work. In September 2024, the Company optimizedits risk management structure and ocially established the Risk ControlDepartment. As the daily operational body set up by the Audit Committee,the Risk Control Department is primarily responsible for internal auditingand risk control within the Company. According to the annual audit planapproved by the Audit Committee, the department conducts variousroutine operational audits, special audits, exit audits, closed-loopsupervision of audit issue rectifications, and supervision of risk controlover critical business processes. In addition, the department reviews andevaluates the appropriateness and eectiveness of the Company's businessactivities, internal controls, and risk management to promote improvedgovernance, add value, and achieve goals. The Risk Control Departmentreports annually to the Audit Committee on the management of signicantrisks and the operational effectiveness of the risk management systemand is subject to the Audit Committee's review and supervision.In the same year, the Company renamed the Intellectual PropertyDepartment and adjusted it to the Legal Department, further integratinglegal resources and ensuring professional and systematic legal work.In 2025, the Company will further optimize its risk management structureby restructuring the Audit Committee into the Audit and Risk ControlCommittee and formulating and issuingthe Work Regulations of the Auditand Risk Control Committee of the Board of Directors.Under the Auditand Risk Control Committee, the Audit Department will be establishedand tasked with internal auditing and risk control. Additionally, the RiskManagement Center will be established, comprising the Legal AffairsDepartment and the Supervision Department, which will primarily handlelegal aairs and supervision management.
（2） “Three Lines of Defense” in Risk Management
The Company places great emphasis on building its risk managementsystem. Under the leadership of the Board of Directors, it has establisheda risk management organizational structure consisting of “three linesof defense”, namely, the business department defense line, the internalsupervision and monitoring defense line, and the internal audit defenseline, clearly defining the levels and division of responsibilities for riskmanagement.
further optimize its riskmanagement structure
Three Lines of Defense in RiskManagement
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2）Internal Control
1）Continuously enhancing the internal control systemThe Company attaches great importance to its internalcontrol. In strict adherence to theCompany Law ofthe People’s Republic of China, theBasic Norms forEnterprise Internal Controland its supporting guidelines,as well as the internal control supervision requirementsof the China Securities Regulatory Commission, theShenzhen Stock Exchange, and other relevant bodies,the Company has established a comprehensive internalcontrol system tailored to its unique circumstances,characteristics, and management needs, which iscontinuously rened and enhanced. During the reportingperiod, the Company further strengthened its systemdevelopment, continually optimized managementsystems such as the Internal Audit System, enhancedinternal control processes across various stages,and improved the internal control process manual.Additionally, the Company integrates aspects suchas corporate internal control risk prevention, divisionof responsibilities and authorities, and task allocationinto the internal control process descriptions, therebypromoting the eective operation of the internal controlsystem.
2）Setting great store by internal auditThe Company attaches great importance to the implementationand management of internal audits. According to theAudit Lawof the People's Republic of China, the Regulations of the Audit Officeon Internal Audit Work,the BasicStandards on Internal Auditand itsspecific guidelines, the BasicNorms for Enterprise Internal Controland its supporting guidelines, and other relevant national lawsand regulations, the Company has established theInternal AuditSystem.The Company clearly defines the Risk Control Departmentas the main responsible department of internal audit, giving it thefunctional role of independently exercising audit authority. Accordingto the annual audit plan approved by the Audit Committee, theCompany conducts various routine operational audits, special audits,and exit audits. Through closed-loop supervision of audit issuerectifications and supervision of risk control over critical businessprocesses, the Company reviews and evaluates the appropriatenessand effectiveness of its business activities, internal controls, andrisk management to promote improved governance, add value, andachieve goals. The Audit Department reports its work to the Auditand Risk Control Committee annually, which guides, supervises, andevaluates the internal audit work.In terms of internal monitoring, the Company has established adual-track model that combines daily monitoring with specialmonitoring to ensure comprehensive, multi-layered risk control.Daily monitoring covers management-level supervision and entity-level supervision, which involve reviewing risk analysis reports andholding special meetings to monitor daily operations and promptlyidentify and resolve potential issues. Special monitoring focuses onthe Company's development strategy and major projects, conductingtargeted inspections to ensure eective identication and control ofrisks in core business areas, thereby safeguarding the achievement ofstrategic objectives.The Company attaches great importance to enhancing theprofessionalism of its audit personnel. It has established acomprehensive internal and external training mechanism to ensurethat the audit personnel can fully master the Company's internalmanagement system, such as its work rules and regulations and workmanuals, as well as the latest industry audit standards and methods.In 2024, the Company selected audit personnel to participate inbusiness skills training organized by the Shanghai National AccountingInstitute. This training not only provided them with cutting-edge riskcontrol insights but also significantly improved their professionalproficiency and overall capabilities, injecting new vitality into theCompany’s internal audit work.
The Company has formulated a scientific internal controlevaluation mechanism, which includes self-evaluation byheadquarters departments, self-evaluation by affiliatedentities, annual inspection evaluations, and special inspectionevaluations to comprehensively and systematically assessthe eectiveness of internal controls. For identied issues,the Company promptly proposes improvement suggestionsand measures to drive continuous optimization of theinternal control system. At the same time, the Companyhas engaged an annual accounting firm to conduct anindependent audit of the internal control and issue a self-assessment and external audit report, to further enhancethe internal control level of the Company with the help ofexternal professional forces and build a solid foundation forthe sound development of the Company.
5.Tax Transparency
The Company consistently upholds a strong senseof responsibility and the principle of transparencyby fully and promptly disclosing tax-relatedinformation to the public through various channels,including regular reports, equity distributionannouncements, and major matters disclosure.The Company strictly follows the national taxpolicy to ensure the legality and standardizationof tax treatment. At the same time, relying onthe Company's independent financial accountingsystem, the accuracy and transparency of nancialdata are guaranteed. Moreover, the Companyactively maintains close communication withinvestors, promptly addressing market concernsand further strengthening investors' trust in theCompany's tax management.
Implementation and Management
Dual-Track Monitoring ModelInternal and External Training Mechanism
Scientic Internal Control Evaluation Mechanism
Independent Audit
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Transparent Dialogue Targeting Specic Stakeholder Groups
1.ESG Communication and Information Disclosure Mechanism Specic to Investors
1）Investor Relations Management
To strengthen information communication between the Company and its investors, improvecorporate governance structure, and eectively protect the legal rights and interests of investors,especially those of public investors, the Company has formulated theInvestor Relations WorkSystem in accordance with the Company Law of the People’s Republic of China, the Securities Lawof the People’s Republic of China, the Stock Listing Rules of the Shanghai Stock Exchange, the WorkGuidelines for the Investor Relations of Listed Companies,and other relevant laws, regulations, aswell as the provisions of the Articles of Association.The Company attaches great importance to investor relations, follows the principles of openness,fairness, and impartiality, and is committed to building an efficient and transparent investorrelations management system to promote effective communication and interaction betweenthe Company and investors. For this purpose, the Company has established a multi-channeland multi-level communication system, including results announcement, the SSE e-interactiveplatform, Investor Reception Day, investor hotlines, on-site research, online communicationplatforms, regular reports, and other means to ensure that investors can conveniently obtaininformation and participate in the communication. In 2024, the Company actively engaged ininvestor relations activities. It hosted over 80 investor surveys and reverse roadshows, participatedin more than 15 securities rm strategy meetings, and conducted nearly 50 reverse roadshows.Additionally, the Company organized 3 results announcements and 1 Investor Reception Day. Itresponded to over 200 investor inquiries, addressed nearly 50 questions on interactive platforms,handled more than 20 investor phone calls, and replied to 5 investor emails. The Company not onlypromptly addressed market concerns but also further strengthened investors' trust and condencein the Company's management.In 2024, the Company actively upheld the concept of protecting the rights and interests of smalland medium-sized investors. It conveyed its commitment to steady operations and sustainablereturns through cash dividends. The Company distributed RMB 821 million in cash dividends,providing investors with continuous, stable, and reasonable returns, eectively safeguarding theirlegal rights and interests.
investor surveys and reverse roadshows
securities rm strategy meetings
reverse roadshows
results announcements
Investor Reception Day
investor inquiries
addressed questions on interactiveplatforms
handled investor phone calls
replied investor emails
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2）Information Disclosure Mechanism
The adoption of an information security management systemis a strategic decision by the Company to comprehensivelyimprove its information security management capabilities, ensurethe confidentiality, integrity, and availability of information, andgive stakeholders confidence that risks are being adequatelymanaged. The Company's information security principle is fullparticipation, scientific prevention, and control to safeguardinformation assets and support continuous business operations.The Company attaches great importance to information securitymanagement, considering it a key factor in guaranteeing businesscontinuity and data security. In 2024, the Company implementedthe Information Security, Cybersecurity and Privacy Protection— Information Security Management Systems — Requirements(ISO/IEC 27001:2022)and TISAX VDA ISA 6.0 standards andcomprehensively carried out the construction of the informationsecurity management system. By establishing, implementing,and continuously improving the documented informationsecurity management system, the Company has formulatedthe Information Security Management Manual, which providesprogrammatic guidance for information security management.TheInformation Security Management Manualis a regulatorydocument of the Company that species the information securitymanagement principles, objectives, and specific requirements.The manual's formulation realizes the effective operation andcontinuous improvement of the information security managementsystem and embodies the Company's commitment to society.The Company's information security objectives are① 0incidents/year for condential/secret information leakage;② ≤3Incidents/year for business system failures aecting productionoperations; ③0 incidents/year for abnormal disconnection of thebackbone network for more than 4 hours; and④ 0 incidents/yearfor the Company's major information security incidents.
3）Strategies for Coping with Extreme Weather
The frequent occurrence of extreme weather eventshas posed numerous challenges to the Company'ssupply chain, including production disruptions, logisticalblockages, raw material shortages, rising costs, anddramatic fluctuations in market demand, which not onlyincrease operational uncertainty but also pose a serioustest to the Company’s sustainable development. Toeffectively mitigate the risks posed by extreme weather,the Company has adopted a series of forward-lookingstrategies and is committed to improving the resilienceand robustness of its supply chain.Firstly, the Company has implemented a diversifiedprocurement strategy to reduce its reliance on a singlesupplier by establishing long-term relationships withsuppliers of dierent regions and sizes and to ensure thatit can quickly switch to a backup supplier in the event ofsupply disruption caused by extreme weather.Secondly, the Company makes use of advancedtechnology and data analysis tools to optimize supplychain management, monitor logistics and inventory statusin real time, provide early warning of potential risks, andformulate response plans.In addition, the Company has strengthened its disasterprevention measures and improved its contingency plansto ensure that it can respond quickly and minimize losseswhen extreme weather events occur.At the same time, the Company actively promotes low-carbon transformation and integrates the concept ofsustainable development into all aspects of supply chainmanagement. By optimizing transportation methods,reducing carbon emissions, using environmentally friendlymaterials, and improving energy eciency, the Companynot only minimized the negative impacts of extremeweather but also enhanced the competitiveness of itssupply chain in the context of climate change.
In 2024, the Company conducted information security knowledgetraining for all employees and organized 4 informationsecurity training sessions to deepen employees’ awareness ofinformation security. For new employees, the Company focuseson strengthening the condentiality regulations and, through thesharing of classic cases of information leakage, to help themlearn from actual cases, enhance their awareness of prevention,and build a rm “rst line of defense” of information security.In addition, the Company has customized a diverse range oftargeted information security training courses based on thediversity of positions and responsibilities. The content coverspractical exercises on cybersecurity defense, the introduction of adata security baseline, knowledge sharing on data cross-border,the identication and sorting out of important information assets,and the systematic construction of data security. Through precisetraining, the Company comprehensively enhances employees'risk management and control capabilities and builds a more solidinformation security defense line.With regard to the operation and maintenance of the informationsystem, the Company has taken a series of measures to ensurethe normal, reliable, and secure operation of the system. TheCompany continuously improves the system, optimizes resourceallocation, extends the life cycle of the system, and enhancesthe vitality of the system to adapt to the ever-changing businessdemands and technological environment. Through continuoustechnology upgrades and management optimization, theCompany provides strong protection for business continuity anddata security.
≤3
condential/secret information leakage
incidents/year
business system failures aecting productionoperations
abnormal disconnection of the backbone network formore than 4 hours
Company's major information security incidentsincidents/year
incidents/year
incidents/year
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2.Customer Satisfaction and Consumer Rights Protection Practices
（2）
Conducting satisfaction surveys to understand customer needs inall aspects.In 2024, the Company conducted a customer satisfaction survey usinga questionnaire based on six key dimensions, such as satisfaction withsales personnel, satisfaction with product development, satisfaction withproduct quality, satisfaction with delivery, satisfaction with service, andthe customer's willingness to recommend LONCIN to him/her. The surveystrictly follows the Customer Satisfaction Survey Management Measures,in accordance with the sales accounted for more than 80% of the fullcoverage of the customer survey, as well as sales accounted for 20% ofthe customers within the completion of more than 5% of the principle ofthe plan to complete the survey of the number of customers 42, a totalof 42 questionnaires. Finally, the actual number of completed surveycustomers was 42, recovered 42 valid questionnaires were recovered,completion rate of 100.00%. The survey results show that the overallcustomer satisfaction performance is excellent, of which the satisfactionand very satised rate is 95.71%; the general satisfaction rate is 3.33%;and the dissatisfaction rate is 0.95%. In response to customer feedbackof “general satisfaction”, “dissatisfaction,” and other comments andsuggestions, the Company has sorted out 12 items that need to beimproved. At present, six items have been successfully implemented andcompleted, and the remaining six items are being positively progressed.
successfully implemented and completed
being positively progressed
items
items
快准全
无条件提供服务
100%
70.16%
very satised
rate
25.56%
satisfaction
rate
C
u
s
t
ome
r
Sati
sfaction
in
1）Customer Satisfaction
（1）
The Company always prioritizes user satisfaction at the core andcontinuously strives to improve the user experience. The Company focuseson following the needs and feedback of the users and is committed toresponding to each and every one of the demands and expectations of theusers through ecient and high-quality services. The Company's service goalis “Full Service for Customer Complaints, Zero Complaints for the Service”,and the service policy is “Fast, Accurate, and Comprehensive” to ensurethat every customer can get a timely, accurate, and comprehensive serviceexperience. In the principle of service, the Company strictly implements the“Three Guarantees” service requirements and provides 100% unconditionalservice for customer complaints that meet the requirements; for cases that donot meet the requirements, the Company will also consult amicably with thecustomer and provide high-quality solutions. For the realization of this serviceconcept, the Company has established a comprehensive service procedureand process system, which includes:
After-sales Service Control Procedure,Market Quality Information Management Measures, “Three Guarantees” ServiceManagement Measures, After-sales Maintenance Service Management Measures,Customer Training Management Measures, and Customer Satisfaction AssessmentManagement Measures.In response to customer complaints, the Company has specically formulatedthe Market Quality Information Management Measures and set up a specific“Market Quality Penalty Ticket” procedure in the OA system. For quality issuesthat need to be rectified, the relevant departments will quickly analyze thecauses and work out as well as implement improvement measures. For thetypical quality problems, the Company adopts the 8D report for systematicprogress, and the Company arranges special persons to follow up on penaltyticket dispositions to ensure that every problem can be handled appropriately.In order to continuously improve the quality of service, the Company willsummarize and analyze the disposition of market quality information feedbackfrom customers every month and every year, form and output monthly andannual reports, and organize regular monthly quality meetings to presentand notify the main market quality problems, ensuring that the problems arepromptly followed and solved. The important quality issues improvementmeasures will be incorporated into the monthly key tasks of the relevantdepartments to ensure that the issues are prioritized and dealt with.
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2024 Awarded the European Top Enterprise (STIGA) “Outstanding Quality Improvement Award for 2023”
（3）Enhancing the customer
experience
The Company adheres to the conceptof “Customer Demand as theCenter” and carries out customerservice in every aspect of theCompany's production, operation, andmanagement. 2024: The Companyhas committed to creating moreintelligent and humanized productsfor users. Through the application ofa number of technologies, such asintelligent instruments, AMT automaticgearshift, ARAS driver assistance,and intelligent electronicallycontrolled hybrid technology, theCompany has eectively improvedvehicle safety, handling, comfort, andintelligence, and enhanced the user'sdriving experience and the ability ofuser connectivity. Meanwhile, theCompany organizes “QJMOTORRiding Campus”, “Safety Training”,“Benelli Weekend”, and otheractivities to create a rich, immersive,and scenario-based experience forusers. These activities not only allowusers to understand the productmore deeply but also build a platformfor communication and interactionso that users can feel the brand'stemperature and care in the sharingand experience.
（4）Honors awarded by customers
LONCIN 2024 has been awarded theEuropean Top Enterprise (STIGA)“Outstanding Quality ImprovementAward”, an honor that not onlyreects the team's persistent pursuitof renement but also highlights theCompany's commitment to continuallyimproving customer satisfactionand brand competitiveness in theglobal market. By continuouslypromoting quality improvement andtechnology upgrading, the Companyhas successfully achieved signicantimprovement in product performance,which has won high recognitionfrom industry authorities and furtherstrengthened the strategic partnershipwith STIGA.
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Participation in major exhibitions in 2024:
2024.01
the Company attended Intersolar NorthAmerica 2024 with EP3600 and other star products. Withexcellent product performance and innovative technology,the Company attracted a lot of attention from the industryand demonstrated the strong capabilities and cutting-edge layout of the Company in the eld of new energy.
2024.02
the Company participated in the 25thBeijing International RV and Camping Exhibition. At theexhibition, the Company's newest product series - thewhole series of silent inverter generators and energystorage solutions made a stunning debut, providing a newintelligent and environmentally friendly energy solutionfor RV and camping enthusiasts and highlighting theCompany's profound heritage and innovative strength inthe eld of outdoor energy.
2024.04
the Company participated in the 25thBeijing International RV and Camping Exhibition. At theexhibition, the Company's newest product series - thewhole series of silent inverter generators and energystorage solutions made a stunning debut, providing a newintelligent and environmentally friendly energy solutionfor RV and camping enthusiasts and highlighting theCompany's profound heritage and innovative strength inthe eld of outdoor energy.
2024.06
the Company participated in The SmarterE Europe 2024. In this leading international smartenergy industry event, the Company, with its advancedtechnological concepts and innovative products, competedwith global counterparts and participated in the industryexchanges and cooperation in depth, which furtherenhanced the Company's visibility and influence in theeld of international smart energy and contributed to theglobal energy transition.
2024.10
the Company appeared at the 136th ChinaImport and Export Fair with a variety of products, andLONCIN was strongly settled in the Electric Power Zoneand the New Energy and Intelligent Mobility Zone, whichcomprehensively demonstrated the Company's latesttechnological achievements and innovative products inthe eld of green energy. The Company carries a varietyof household small generators, engines, portable energystorage power supply and charging piles and other coreproducts, with its intelligent, environmentally friendly andecient features, attracted many professional visitors andbuyers to pay attention to the Company, a comprehensivedisplay of the Company's strong capabilities and leadingedge in the eld of intelligent energy solutions.
2024.10
Smart Nation Expo 2024 was grandlyopened in October 2024 at the Kuala Lumpur InternationalTrade and Exhibition Center in Malaysia. LONCIN NewEnergy made a wonderful appearance with its safe andreliable new energy charging products and smart energysolutions, focusing on its latest technical achievementsand innovative applications in the electric vehicle chargingpile industry, which attracted wide attention from theexhibitors.
2024.10
the Company participated in the EquipExposition (GIE+EXPO) in Louisville, U.S.A. In thisinternationally renowned garden machinery industryevent, the Company, by virtue of the rich product line andcutting-edge technology, exchanged in-depth informationwith global industry elites, demonstrated its innovativeachievements and strong capabilities in the eld of gardenmachinery, and further expanded the North Americanmarket, enhancing the brand's popularity and reputation inthe international garden machinery eld.
2024.11
the Company participated in the 81st MilanEICMA MOTOR EXPO (EICMA), with three brands (VOGE/LONCIN/BICOSE), a total of 31 models of exhibits, withoutstanding product design, cutting-edge technologicalinnovations, and strong brand strength attracted theattention of motorcycle enthusiasts, industry expertsand the media around the world, and achieved extremelyoutstanding exhibition results, fully demonstrating thedeep heritage and unlimited potential of the Company inthe eld of motorcycles.
responsible marketing training sessions
persons
hours of training
2）Consumer Rights Protection
（1）Responsible marketing
The Company is committed to enhancing usersatisfaction and continuously optimizing theservice process and standards by responding touser demands and providing customized serviceson time. In respect of marketing and publicity, theCompany strictly complies with the Advertising Lawof the People's Republic of China and other lawsand regulations, regulates advertising and salesbehavior, ensures the accuracy and consistencyof external information, and prevents fraudulentpublicity or excessive marketing. All externalpublicity content, such as energy consumption,safety, intelligent functions, and other data, arerequired to be certified by the national authority.At the same time, the Company incorporatescompliance marketing into the performanceappraisal system of the sales employees andexplicitly requires the sales employees to strictlycomply with the high-standard responsiblemarketing guidelines to ensure that the high-standard responsible marketing guidelines areimplemented. In 2024, the Company conducted atotal of 11 responsible marketing training sessions,involving 376 persons and a total of 65 hours oftraining, which included new product promotionconsiderations and fair guarantee of sales andservices, etc., to further strengthen the senseof responsibility and compliance of businessemployees, and to build a strong foundation for theCompany's responsible marketing philosophy.
Intersolar North America 2024
The Equip Exposition (GIE+EXPO)
2024 in Louisville, USA
The 135th China Import and Export Fair
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（2）Customer information
protection
The Company has achieved significant resultsby improving the system and training system tocomprehensively strengthen the protection ofcustomer privacy and information security. TheCompany attaches great importance to customerprivacy and information security, strictly followsthe Data Security Law of the People's Republicof China, Personal Information Protection Law ofthe People's Republic of China and other laws andregulations, and formulates and improves a numberof rules and regulations, such as the Standard ofConduct for Employee Information Security, PrivacyProtection Compliance Management Rules andother regulations, so as to safeguard and protectthe information security from the system level.Organizing information security awareness trainingfor new employees and data leakage preventiontraining for R&D designers ensures that everyemployee always follows the customer privacyprotection norms in their daily work and integratesthe concept of information security into every worklink. In 2024, the Company did not experienceany breaches of customer privacy or information,which fully demonstrates the effectiveness of theCompany's governance in protecting customerinformation.
A.Full-edged service proceduresThe Company has established comprehensive after-sales service procedures, including anAfter-salesService Control Procedure, Market Quality InformationManagement Measures, “Three Guarantees” ServiceManagement Measures, After-sales MaintenanceService Management Measures, Customer TrainingManagement Measures, Customer SatisfactionAssessment Management Measures,and so on. Inthe domestic market, the Company relies on dealerservice as the main service and factory personnelservice as a supplement, forming a complementaryservice pattern. Also, in Zhejiang, Jiangsu,Shandong, and other places to set up officesequipped with permanent service personnel to beable to quickly respond to and promptly deal withcustomer installation and maintenance needs. Inthe international market, the Company innovativelyadopts the combination of customer self-builtservice network and third-party service providers,giving full advantage to the customer's localresources and the third-party professional servicecapabilities, to ensure that customers around theglobe, wherever they are, can enjoy timely, ecientand professional service support, and to truly realizethe “Service without Borders”.
C.Comprehensive complaint response systemThe Company has established a comprehensivecomplaint-handling system, preparedthe MarketQuality Information Management Measures, andset up a specific process in the KOA system.The procedure is divided into two phases:
rapid response to customers (replacementparts, complete machines, etc.) and internalproblem tracing (corrective measures, preventivemeasures, and summarization), through whichthe Company is able to quickly solve customerproblems while preventing the recurrence ofsimilar problems from the root cause. In 2024,the Company's product and service complainthandling rate reached 100%, fully reecting theCompany's efficiency and standardization inafter-sales service governance.
100%service complaint handling rate
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（3）Development of a responsive after-sales service network
B.After-sales service resource allocationThe Company has carefully organized aprofessional and efficient technical andservice team, including two technicalsupport employees, six after-sales serviceemployees, one “Three Guarantees”processing employee, one market qualityinformation processing employee, and twomotorized after-sales service employees,which ensures that we can respond tocustomers' needs quickly and provideaccurate services in different situations. Interms of customer training, the Companyadopts diversied customer training methodsto meet the learning needs of differentcustomers, including video, online, graphic,door-to-door, visit, and on-site training,etc., to help customers quickly master theuse of products and maintenance skills.In order to facilitate customers to obtaintechnical support at any time, the Companyhas built a multi-channel communicationplatform, customers can consult technicalissues at any time through the phone,e-mail, QQ, WeChat and other networkcommunication tools, but also throughthe Company's website, service hotline,WeChat ocial account and other channelsto dynamically understand the productinformation and technical developments andafter-sales policy, to truly realize the “One-click Reach, Worry-Free Service”.
Deliberate Planning and
Long-term Vision
Targets Set for the 2030 VisionCooperation Build-up for Global Presence
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LONCIN is deeply aware of the urgency and importance of responding to climatechange and is actively practicing the concept of green development. In order topromote the sustainable development of the industry and help achieve the national“Carbon Peaking and Carbon Neutrality” goal, LONCIN has set a clear and challengingtarget for the reduction of carbon emissions.In the process of low-carbon R&D layout, we make all-around eorts, focusing on keylinks such as upstream supply, manufacturing, downstream use, and product types,and are committed to building a more complete sustainable product system and low-carbon ecological chain. At the same time, we have clearly dened the strategic goalof increasing the proportion of clean energy use, and plan to increase the proportionof renewable energy in total energy consumption in our production plants to 30% by2030, to take practical actions to promote green development and contribute to therealization of carbon emission reduction targets.In the field of green procurement, we are committed to the concept of sustainabledevelopment, not only exploring and innovating in the application of green materials butalso setting clear and forward-looking goals in the procurement of raw materials. Weactively guide our suppliers to adopt more environmentally friendly production modesand promote the sustainable development of the industrial chain in all aspects. Lookingahead to 2030, we aim to increase the proportion of suppliers using green power inthe production process to 40%, thereby contributing to the creation of a green andlow-carbon industrial ecosystem and to environmental protection and sustainabledevelopment.In the field of green production, we are committed to environmental responsibilityand are steadily moving forward with the goal of meeting emission standards andenvironmental information transparency. On the one hand, we continuously strengthenthe management of environmental protection, emission control, and efficient useof resources and energy, etc. By improving the production process and upgradingthe environmental protection equipment, we ensure that 100% of the three-wasteemissions meet the standards and reduce the pollution of the environment from thesource. On the other hand, we attach high importance to the disclosure and supervisionof environmental information and make every effort to realize 100% completion ofthe declaration, monitoring, and public announcement of environmental informationso that the production activities of enterprises can operate under the sunshine. Inaddition, through the improved emergency plan and safety management system, we arecommitted to continuing to achieve the goal of zero environmental pollution accidents,make unremitting efforts to build a green and safe production environment, andpractice the concept of green development through practical actions.
Targets Set for the 2030 Vision
30%
40%
100%
plan to increase theproportion of renewableenergy in total energyconsumption in ourproduction plants to
aim to increase the proportionof suppliers using green powerin the production process to
the three-waste emissions meet the standards
100%completion of the declaration, monitoring, and publicannouncement of environmental information
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1.Intensied Industry Cooperation
In terms of advocating green supply chaincooperation, LONCIN actively advocatesenterprises in the industry to jointly build agreen supply chain, closely cooperates withupstream and downstream suppliers, andrequires suppliers to adopt environmentallyfriendly materials and optimize productionprocesses to reduce carbon emissions. In theprocurement of raw materials, we prioritizesuppliers that have passed the ISO 14001environmental management system certicationto promote the green transformation of theentire supply chain. At the same time, weorganize suppliers to carry out energy-savingand emission-reduction training and experienceexchange activities, share green productiontechnology and management experience,and work together to enhance the greendevelopment level of the supply chain.In the field of industry technology researchand development cooperation, LONCIN hasactively participated in it, and has carried outa series of in-depth research and developmentcooperation activities together with BMW,making every effort to promote technologicalinnovation in the eld of motorcycle engines. Asearly as May 2024, LONCIN and BMW enteredinto an in-depth cooperation agreement on theengine program, aiming to inject new vitalityinto the global motorcycle market and furtherpromote the development of motorcycle enginetechnology by leaps and bounds.This cooperation focuses precisely on thedevelopment and production of new large-displacement engines. Relying on its deeptechnical background and rich manufacturingexperience accumulated over many years ofdeep cultivation in the field of motorcycleengines, LONCIN is deeply integrated with
Cooperation Build-up for Global Presence
As a reputable enterprise in the eld of motorcyclesand general-purpose power equipment, LONCINhas always upheld a high sense of responsibilityand mission and has actively participated in thedevelopment and construction of the industry.As a member of the Chongqing Automobile andMotorcycle Industry Association, LONCIN has madepositive contributions to the formulation of industrystandards, the fight against unfair competition,brand building, the enhancement of services, andthe expansion of overseas markets. The Companytakes innovation as the lead and promotes thetransformation and upgrading of the industry withfull strength. With the strategy of steady scientificand technological research and development, theCompany has successfully realized the independentinnovation of products and technology so thatthe scientific and technological competitivenesshas achieved a qualitative leap and has set a newbenchmark for the high-quality development of theindustry.
BMW's cutting-edge advanced technology andinnovative concepts. The two parties quickly set upa joint R&D team to collaborate on key technicalindicators such as engine performance improvement,fuel economy optimization, and emission reduction.By integrating the advantageous resources of bothparties and collaborating closely on technical researchand development, the Company strives to breakthrough the technological bottleneck in the industryand bring consumers motorcycle engine products thatare more ecient, environmentally friendly, and withbetter performance.To meet future requirements for low emissions andlow fuel consumption, the two parties plan to jointlyresearch and develop new combustion technologiesto precisely control the fuel injection volume and airintake, eectively reducing the emission of hazardoussubstances in the tailpipe so as to comply with morestringent environmental protection standards.
LONCIN and BMWDeep Cooperation
11 Loncin and BMW｜ Successfully Signed Contract for New Engine Project：https://www.loncinindustries.com/Group/NewsDetails.aspx?catid=7-68-80&id=2146821978
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To ensure product emissions in step withinternational practices, for motorcycle export,LONCIN refers to the European Union's Euro Vemission standards and continuously optimizesits product design and production process toenhance the environmental performance ofits products. We improve engine combustiontechnology through research and developmentto reduce the emission of hazardous substancesin exhaust gases, ensuring the competitivenessof our products in the international marketand reducing the risk of environmentalnoncompliance. At the same time, the Companypays close attention to the updated dynamicsof international standards and adjusts theproduct standards in time to keep in sync withthe international advanced level.
2.Alignment with International Standards
To keep consistent with the internationalESG disclosure standards, LONCINuses the widely recognized global ESGinternational standards, such as the GlobalReporting Initiative (GRI) standards and theSustainability Accounting Standards Board(SASB) standards, as a frame of reference.
To ensure management systems in compliancewith international standards, we refer to theinternationally recognized ISO 14064 standardfor greenhouse gas accounting and reporting,establish and improve the internal carbonemission management system, accuratelyaccount for the enterprise's carbon emissions,and formulate scientific emission reductiontargets and measures. We also introduceinternational advanced environmentalmanagement concepts and methods, such asLife Cycle Assessment (LCA), to assess theenvironmental impact of products throughoutthe entire process from raw materialprocurement, production and manufacturing,use to disposal and recycling, and to optimizethe environmental performance of productsthroughout their life cycle.
In-depth research into the specificterms and requirements of the abovestandards to ensure that the practicesand disclosures of enterprises in thethree core dimensions of environment (E),society (S) and corporate governance (G)are in line with the international advancedlevel, for example, in the environmentaldimension of the benchmarking of theGRI's climate-related standards, to sortout the key information on the sources ofcarbon emissions, energy use and impacton the ecosystem of the enterprise, andto systematically sort out and show theeorts and achievements of the enterprisein sustainable development, whileproviding comprehensive and transparentinformation to stakeholders to promotethe common sustainable development ofthe enterprise and society.
Euro
Euro5+
E
S
G
ISO14064
LCA
GRI
SASB
Environmental
Social
Governance
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Appendix
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IndexKey Performance
I. LONCIN’s Sustainability Policy and Performance Data
1. ESG Strategy and Vision
2. Key Performance Indicators
(1) ESG Key Performance Data
(2) Analysis of Material Topics
(3) Engagement with Stakeholders
(4) Response to the United Nations SDGs
II. Environmental Initiatives for Green and Digital Development
1. Green Intelligent Manufacturing and Low Carbon Production
(1) Digital Transformation Driven by Intelligent Manufacturing
(2) Clean Energy Application and Energy Conservation and
Emission Reduction Technology Upgrade
(3) Practices of Green Factory and Circular Economy
2. Ecological Conservation and Responsible Contributions
(1) GHG Management Initiatives and Results
(2) Water Management Initiatives and Results
(3) Energy Management Initiatives and
Energy-Ecient Technology Achievements
(4) Biodiversity Conservation
3. Pioneering Eorts to Address Climate Change
(1) “Carbon Peaking and Carbon Neutrality” Goals
(2) Climate Risk Management and TCFD Framework Response
Index
ChaptersGRI
2-222-1，2-2，2-3，2-6
201-1，
2-29，413-1
416-1201-2，306-1，306-2，301-1，301-2，301-3，306-3，306-4
305-1，305-2，305-3，305-5，306-2，303-4，303-5，306-1，306-2，306-2，304-1
416-2201-2
Sustainability Reporting Guidelines for A-share Listed Companies
-
Stakeholder Engagement
Innovation Driver, Technology EthicsPollutant Emissions, Product and Service Security, and QualityEnergy UseWaste Treatment, Environmental Compliance Management, Circular Economy
Ecosystem and Biodiversity ConservationWater Resources UtilizationEnergy UseEcosystem and Biodiversity ConservationResponding to Climate Change
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III. Social Initiatives and Innovative Development
1. Human Resources Development
(1) Employment and Compliance Management
(2) Diverse Composition of the Workforce
(3) Employee Benets and Safeguards
(4) Employee Rights and Supervision
(5) Occupational Health and Safety Management
(6) Diversied Training and Career Development Paths
2. Technology-Empowered Industrial Upgrade Driven by Innovation
(1) Product Innovation Results and R&D Investment
(2) Supply Chain ESG Management and Supplier Empowerment Program
(3) Customer Management and Satisfaction Enhancement Program
(4) Property Rights Management
3. Rural Revitalization and Community Outreach
(1) Sustained Investment in Social Welfare Programs
(2) Rural Industry Support with Additional Channels
IV. Compliance and Transparent Governance
1. Reinforcement of Compliance and Corporate Governance Structure
(1) Promotion of the Leadership of Party Building
(2) Board ESG Oversight Mechanism and Governance Structure Improvement
(3) Anti-corruption Compliance System and Data Security Protection
(4) Risk Management and Internal Control
2. Transparent Dialogue Targeting Specic Stakeholder Groups
(1) ESG Communication and Disclosure Mechanism Specic to Investors
(2) Customer Satisfaction and Consumer Rights Protection Practices
V. Deliberate Planning and Long-term Vision
1. Targets Set for the 2030 Vision
2. Cooperation Build-up for Global Presence
(1) Intensied Industry Cooperation
(2) Alignment with International Standards
2-7
401-1，401-2，404-3，405-1405-1，406-1401-3401-3403-1，403-2，403-3，403-5，403-7，403-8，403-10404-1，404-2，404-3
302-1，302-4，302-5，416-1，417-1204-1，302-1，302-4，302-5，308-1，414-1302-1，302-4，302-5，417-2417-1
413-1413-1
404-22-9，2-10，2-11，2-12，2-14，2-16，2-172-272-27，207
205-1，205-2，418-1417-1，417-2，418-1
2-28，308-1
Employee, Stakeholder Engagement
Innovation Driver, Technology EthicsSupply Chain Security, Equal Treatment of SMEs
Social ContributionsRural Revitalization, Social Contributions
Data Security and Customer Privacy Protection,Anti-commercial Bribery, and Anti-corruptionAnti-commercial Bribery and Anti-corruptionResponding to Climate Change, Data Security andCustomer Privacy Protection, Stakeholder EngagementSupply Chain Security, Product and Service Security and Quality,Data Security and Customer Privacy Protection, Stakeholder Engagement
Responding to Climate Change, Innovation DriverAnti-unfair CompetitionDue Diligence InvestigationsInnovation Driver
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Chapters
GRI
Sustainability Reporting Guidelines for A-share Listed Companies
Key Performance
GasDiesel fuelPetrolRenewable energyPurchased electricityTotal waste gas emissionsParticulate matterNon-methane hydrocarbonsNitrogen oxidesSulfur oxidesVOC emissionsAmmoniaMunicipal water purchasesTotal wastewater dischargeChemical oxygen demand (COD)Five-day Biochemical Oxygen Demand (BOD5)Suspended substanceAmmonia nitrogenTotal phosphoruspHAnionic surfactantsFluoride (measured as F-)Oil typeFormaldehyde
2,081,733.00128,131.00372,966.00 041,899,138.002,510,617,200.00
15.36
0.51
1.33
0.04
29.61
0.06
797,949.00394,833.00
44.31
9.74
9.26
3.76
1.26
7.27
0.04
0.48
0.38
0.19
2,677,584.0061,232.00443,053.00 28,760,965.0040,691,138.002,579,906,290.00
18.48
3.38
1.27
0.33
21.39
0.04
768,149.00560,974.00
66.98
28.58
16.82
7.45
0.64
7.12
0.06
0.66
1.38
0.11
2,566,771.0088,531.00503,741.00162,520.0059,197,270.002,572,050,400.00
7.03
8.44
0.47
0.02
12.21
0.10
1,147,600.00623,024.00
58.54
15.71
45.19
4.27
0.84
7.14
0.16
0.95
3.85
0.00
Cubic meterLiterLiter(kWh) kilowatt hour(kWh) kilowatt hourCubic meterTonsTonsTonsTonsTonsTonsTonsCubic meterTonsTonsTonsTonsTonsDimensionlessTonsTonsTonsTons
ESG
KeyPerformance
Indicators
Environmental Performance
Use of Energy
GaseousPollutionEmissions
Water Use
WaterPollutionDischarge
Types Item FY2022 FY2023 FY2024 Indicator UnitI
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II
Social Performance
Total recyclable wasteTotal general solid wasteTotal recycling of general solid wasteEmission intensity of general solid wasteTotal hazardous wasteTotal hazardous waste incinerationTotal hazardous waste recyclingEmission intensity of hazardous waste
Packaging materials used: wooden palletPackaging material applicable: wooden buckboard boxPackaging material used: plastic boxPackaging materials used: cardboard boxNumber of electric private car ownershipNumber of fuel private car ownershipEnvironmental InvestmentTotal number of employeesMaster's degree and aboveBachelor's degreeJunior collegeSecondary vocational school/High schoolJunior high school and belowNumber of trainings during the yearTotal number of employees trainedNumber of basic-level employees trainedMiddle management trainedSenior management trainedTotal hours of employees trainedAverage length of employee trainingTotal number of hours of basic level employees trainedTotal hours of middle management trained
Total hours of senior management trained
195.00
195.00
195.00
0.02
421.77
75.82
345.95
0.04
50,144.0030,000.006,910.002,305,605.00 32.00 2,368.00
149.00
8,535
1,3211,2592,3873,3507,6107,6107,242
15,220
11,5403,130
189.00
189.00
189.00
0.01
487.99
129.11
358.88
0.03
650.00
30,000.0010,101.002,018,796.00
193.00
2,456.00
880.00
8,932
1,3931,3502,6113,3548,1658,1657,744
16,200
11,9903,650
448.81
448.81
448.81
0.03
4,630.25
955.91
3,276.29
0.31
136,390.001,923.002,004.004,607,451.00
387.00
3,152.00
940.99
10,529
1,5711,6283,1673,9314,54010,1679,753
20,334
16,1943,620
TonsTonsTonsTons/million in revenueTonsTonsTonsTons/million in revenue
PiecePiecePiecePieceVehicleVehicleRMB Ten ThousandPersonPersonPersonPersonPersonPersonTimesPersonPersonPersonPersonHoursHoursHoursHoursHours
Environmental Performance
Waste Management
and PollutantPrevention
Green Package
Transportation
EnvironmentalInvestment
Education
Employee Training
Employee Type
Employee Category
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ESG
KeyPerformance
Indicators
Types Item FY2022 FY2023 FY2024 Indicator Unit
1,241,017.2652,732.3743,859.0916,428.33
0.80
56,163.35 826,590.00
1,306,648.1358,342.1853,821.4420,535.42
1.00
52,397.51 855,353.00
1,682,224.10 112,127.17 91,449.17 82,141.67 4.00 53,453.00 1,088,973.54
PieceTimesTimesTimesTimesTimesPersonPersonPersonPersonPersonRMB Ten ThousandRMB Ten ThousandRMB Ten ThousandRMB Ten ThousandRMBRMB Ten ThousandRMB Ten Thousand
Number of disclosure reportsNumber of meetings of the Board of DirectorsNumber of meetings of the Supervisory BoardNumber of meetings of the Committee of AuditorsNumber of meetings of the Nominating CommitteeNumber of meetings of the Remuneration and Appraisal CommitteeNumber of members of the Board of Directors
Operating incomeNet protTotal tax paymentsTotal cash dividends (including tax)Cash dividends per 10 sharesR&D investmentOverseas income
Genders
Type
Male directorsFemale directorsIndependent directorsNon-independent directors
Corporate Governance PerformanceEconomic Indicators
12 Total number of hours of basic level employees trained: 16,194 hours is the total number of training hours completed by all basic level employees who received training during the statistical cycle. Total number of hours of basic level employees trained ≈ training hours per basic level employee*number of basic level employees trained.Average length of training per basic level employee: According to statistics, the average length of training per employee is about 2 hours.Scope of data: The above data covers all training programs during the statistical cycle, including on-line courses, o-line centralized training, skills enhancement training, etc.13 Total number of training hours of mid-level managers: 3,620 hours is the total number of training hours completed by all mid-level managers trained during the statistical cycle. Total number of training hours of mid-level managers ≈ per employee training hours of mid-level managers * number of mid-level managers trained.Average training hours per mid-level manager: statistically, the average training hours per employee is about 10 hours.Scope of data: The above data covers all training programs during the statistical cycle, including on-line courses, o-line centralized training, skills enhancement training, etc.14 Total number of training hours of senior management: 520 hours is the total number of training hours completed by all senior management trained during the statistical cycle. Total number of training hours of senior management ≈ per employee training hours of senior management * number of senior management trained.Average training hours per senior manager: statistically, the average training hours per employee is about 10 hours.Scope of data: The above data covers all training programs during the statistical cycle, including on-line courses, o-line centralized training, skills enhancement training, etc.
Types Item FY2022 FY2023 FY2024 Indicator UnitI
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ESG
KeyPerformance
Indicators
LONCIN WeChat Ofcial AccountVOGE WeChat Ofcial Account
InvestorHotline：023-8902 8829
CompanyAddress：
Loncin C, No. 116, Juye Road,Jiulongyuan C, JiulongpoDistrict, Chongqing
E-mail：
security@loncinindustries.com