先导智能：2024Environmental,Social and Governance(ESG)Report

Wuxi Lead Intelligent Equipment Co., Ltd.

2024 Environmental,Social and Governance(ESG) Report

CATALOGUE

About this Report

OverviewReporting EntityReporting PeriodBasis of the ReportData Source and ReliabilityForm of the ReportContact Us

Chairman Message

目录

GovernanceStrategyImpact, Risk and Opportunity ManagementMetrics and TargetsGreen Solutions

Special: Responses to Climate Change

Suggestions and Feedbacks

About LEAD

IntroductionDevelopment HistoryBusiness LayoutGlobal LayoutStrategic DirectionCorporate CultureAnnual Rating and Award

Corporate GovernanceOrganizational StructureInvestor Equity ProtectionRisk Management and Internal ControlBusiness EthicsBusiness Information Protection

Environment and Energy

Environment and Energy Management SystemsGreen ProductionGreen Operation

Labor and Human Rights

Protection of Employee Rights and InterestsEmployee DiversityEmployee RecruitmentEmployee DevelopmentEmployee Bene?tsOccupational Health and Safety

Product R&D and Intellectual Property ManagementProduct Quality and SafetyCustomer Service SystemWorking Together to Promote Industry Development

Public Welfare DonationsCommunity ActivityPublic Welfare Culture

Products and ServicesCommunity Responsibility

Sustainable Supply ChainsSupply Chain Management SystemResponsible Procurement ManagementSupplier Quality Management and Full Empowerment

Appendix

Key Performance TableUNGC Ten Principles IndexGRI Content IndexThird-party Veri?cation and AuthenticationInformation

Sustainability Management SystemESG Governance StructureSustainable Development StrategyResponse to the United NationsSustainable Development GoalsMateriality AssessmentStakeholder Engagement

This report is the ?fth Social Responsibility or Environmental, Social and Governance (hereinafterreferred to as "ESG") report issued by Wuxi Lead Intelligent Equipment Co., Ltd. (hereinafterreferred to as “LEAD" or “the Company"), re?ecting the practices and achievements of the Compa-ny and its af?liates in ESG. This report was reviewed and approved at the 11th meeting of the 5thBoard of Directors on April 28, 2025.

Overview

The ?nancial data in this report comes from the audited ?nancial report of the Company. If there isany discrepancy between the ?nancial data and the annual report, the annual report shall prevail.Other data come from the data provided by relevant departments of the Company. Unless otherwisespeci?ed, the currency types and amounts involved in this report are denominated in RMB.This report is published in simpli?ed Chinese and English. In case of any discrepancy, the simpli?edChinese version shall prevail.

Data Source and Reliability

Unless otherwise speci?ed, the scopeof this report covers LEAD and itssubsidiaries and branches, the sameas the scope of the consolidated?nancial statement.

Reporting Entity

January 1, 2024 to December 31, 2024 (hereinafterreferred to as the “reporting period"). In order toenhance the comparative and forward-looking natureof this report, some of the contents may containretrospective information or forward-lookingdescriptions as appropriate.

Reporting Period

This report is published in electronic version. If you need to obtain it, please download the electronicversion of this report on www.leadintelligent.com or www.cninfo.com.cn.Form of the Report

Address: No.18 Xinzhou Road, National High-tech Industrial Development Zone, Wuxi City,Jiangsu ProvincePhone: 0510-81163600Email: [e-mail]

Contact Us

This report is based on the Self-Regulatory Guidelines No. 2 for Companies Listed on Shenzhen StockExchange--Standardized Operation of Companies Listed on the ChiNext Market (December 2023Revision) and Annex 1 “Disclosure Requirements for Social Responsibility Reports of ListedCompanies” of the Self-Regulatory Guidelines No. 1 for Companies Listed on the ChiNext Market ofShenzhen Stock Exchange--Business Handling (2024 Revision), and references the Self-RegulatoryGuidelines No. 17 for Companies Listed on Shenzhen Stock Exchange--Sustainability Report (For TrialImplementation), the Self-Regulatory Guidance No. 3 for Companies Listed on the ChiNext Market ofShenzhen Stock Exchange--Preparation of Sustainability Report, the Corporate SustainabilityDisclosure Standards--Basic Standards (For Trial Implementation) issued by the Ministry of Finance ofthe P.R.C., the GRI Standards of the Global Sustainability Standards Board (GSSB), the UNSustainable Development Goals (SDGs), and key concerns of domestic and international major ESGratings.

Basis of the Report

About this Report

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

The year of 2024 marks a year of continuous advancement in theESG ?eld for LEAD. On the 20th anniversary of the proposal ofthe ESG concept by the United Nations Global Compact (UNGC),the global ESG policy system has entered a substantive andin-depth stage. The Baku Climate Unity Pact reached at the 29thUN Climate Change Conference in Azerbaijan clearly de?nes theclimate funding goals and ?nancing arrangements after 2025.The three major securities exchanges in China have also issuedguidelines for the sustainability reporting of listed companies.All of these have raised higher requirements for ESG informationdisclosure and management of enterprises.In the context of profound changes in the global economiclandscape and social environment, sustainable development hasbecome the theme of our time. As a world-leading new energyintelligent manufacturing solution provider, LEAD is well awareof the responsibility and mission the age has entrusted on us. Weare well aware that ESG governance has gone beyond the scopeof corporate responsibility and has become a key element inmeasuring the future core competitiveness and sustainable

Chairman Message

Wuxi Lead Intelligent Equipment Co., Ltd.yanqing wang

Chairman

operational capability of companies. Therefore, LEAD hasincorporated ESG governance into our development strategy,aiming to drive global energy transition with technologicalinnovation.LEAD has contributed to the global energy transition with the powerof intelligent manufacturing in 2024. According to Frost & Sullivan,LEAD is the world's largest provider of new energy intelligentequipment and solutions in terms of the 2024 order value, with amarket share of 9.1%, an increase of 3.3% from 2023. Among them,intelligent equipment for Li-ion battery accounted for 22.4% of theglobal market share, while smart logistics equipment for Li-ionbattery, 23.8%. In addition, LEAD’s XBC ultra-high speed stringerfor photovoltaic module manufacturing ranked ?rst among globalphotovoltaic intelligent equipment providers in terms of shipmentvolume. Our self-developed MEAR2R assembly line Generation 4can be used for fuel cell and electrolyzer membrane manufacturing,effectively promoting the industrialization of hydrogen energy andfuel cells.

In terms of carbon neutrality, LEAD has released its carbonneutrality blueprint, committing to achieve carbon peaking atcore operations by 2030, and achieve carbon neutrality at coreoperations by 2035 in Scope 1 and 2. This makes LEAD becomethe ?rst Chinese enterprise engaging in new energy intelligentequipment to publish a clear timetable in the respect. Thiscommitment is based on a clear strategic path: First, we willcontinue to increase investment in green technology R&D andlaunch low-carbon and intelligent equipment solutions to helpcustomers reduce production energy consumption and carbonfootprint. Second, we will accelerate the digital and intelligentmanagement of energy consumption and carbon emissions byupgrading the planning and design of the energy managementsystem, the carbon management system, and the carbonmanagement platform. Furthermore, we will further collaboratewith upstream and downstream partners to build a green supplychain so as to promote the building of a low-carbon supply chainsystem while providing customers with low-carbon intelligentmanufacturing solutions.In terms of social responsibility, LEAD has always upheld theconcept of "Intelligence for Good" and been actively ful?llingits social responsibilities. We have established a long-termassistance mechanism with 12 underprivileged children inYan'an City, Shaanxi Province, to help them complete theirstudies, kindling hopes through education. The LEAD VolunteerService Association was established to concentrate our publicservice efforts, and to encourage more employees to participatein public good undertakings. We observe laws and regulationsduring operations and pay taxes as required. LEAD rankedseventh in the 2024 Top 100 Taxpayers in Wuxi, providing strongsupport for economic and social development. As a member of

the UNGC, we have always adhered to the core conventions ofthe International Labor Organization (ILO) and have built adiverse employee care system that extends from occupationalhealth and safety management to cultural activities, aiming tomake every employee be respected and realize their value intheir work.Multiple commendations have honored LEAD’s achievements andprogress in 2024. We have released our Social Responsibility/ESGreport for the ?fth consecutive year. Our CDP Climate Changeand Water Security ratings have both improved to a B level. Wehave also obtained an S&P Global ESG score of 41, the highest Arating for six years in a row in the information disclosureevaluation by the Shenzhen Stock Exchange (SZSE). Theseachievements showcase our outstanding performance in the ESG?eld. Additionally, we have obtained the certi?cation for ISO 37001Anti-bribery management system and the Level 3 certi?cate forISO 56005 Innovation and Intellectual Property ManagementCapability, demonstrating our commitment to complianceoperations and our pursuit of high-standard governance.The road ahead is long and arduous, but with determined steps,we will reach our destination. In the ESG journey concerningthe fate of all humanity, the new energy equipmentmanufacturing companies will exert unparalleled power. Goingforward, LEAD will always uphold the mission of promotingglobal energy transition through intelligent manufacturing.Driven by technological innovation and based on intelligentmanufacturing, we will work hand in hand with upstream anddownstream partners to contribute wisdom and strength to thefuture of global new energy and the sustainable developmentfor mankind.0405

Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

ABOUT LEAD

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Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

About Lead

Established in 2002, Wuxi Lead Intelligent Equipment Co., Ltd was listed on the ChiNext market of SZSE in2015 with stock code 300450. The Company has grown into the world's leading turnkey solution provider of newenergy intelligent manufacturing, covering intelligent Li-ion battery equipment, intelligent photovoltaicequipment, intelligent 3C equipment, intelligent logistics, automobile production line, intelligent hydrogenequipment, laser precision machining and other ?elds. By the end of the reporting period, LEAD has 15,025employees, including more than 4,512 R&D engineers. LEAD is committed to providing customers withone-stop overall solutions from consultation, design, manufacturing, installation, commissioning, training andsubsequent upgrades, and continuously improving the customer experience.

DevelopmentHistoryIntroduction

2002300450

15,0254,512

Founded inStock code

Number of employeesNumber of R&D engineers

Core Values

Customer-centric, devotion and diligence,

integrity and pragmatism,sel?essness and responsibility, innovation

Focus, perfection, reputation, ef?ciencyVisionTo be a world leading intelligentequipment manufacturer

Mission

Create value for customers,Seek wellbeing for employees

2002Establishment of Wuxi Lead Automation Equipment Co., Ltd.2008Entering Li-ion Battery Equipment Industry

2008Entering Li-ion Battery Equipment Industry

2009Entering Photovoltaic Equipment Industry

2009Entering Photovoltaic Equipment Industry2011

Shareholding System Reform:

Wuxi Lead Automation Equipment Co., Ltd. By Shares

2011

Shareholding System Reform:

Wuxi Lead Automation Equipment Co., Ltd. By Shares2015

2015

2017

2019

20192022

20222024

Wholly-owned acquisition of TitansNew Power, integrating upstreamand downstream industries tobecome whole-line Li-ion battery

equipment manufacturer

Included in MSCI index and becoming representative of

high-end equipment enterprises on ChiNext

Acquisition of ONTEC in Germany, and establishment of the EuropeanTechnical Capability Center, accelerating the globalization process

Won the titles of "2024 Top 500 Private Manufacturers in China" and"Fortune China Top 50 Techs,” and launched a whole-line solution forsolid-state battery production line, a step forward to become a world

leading intelligent equipment manufacturer

Listed on the ChiNext of Shenzhen StockExchange with code 300450 and renamedWuxi Lead Intelligent Equipment Co., Ltd.

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

Expand Product Matrix Based on Production and Turnkey Solution Delivery Capabilities

Assembly and TestingAutomated Visual Inspection

3C Intelligent Equipment

Electrolyzer and Fuel Cell Production Lines

Hydrogen Energy Intelligent Equipment

ModuleCellPV Intelligent Equipment

Automotive Intelligent Production LineLaser Precision Processing Equipment

Intelligent Logistics Equipment

Shuttle VehiclesTackersConveyor LinesIntelligent Automated Warehouses

Intelligent Logistics Systems

Front-end Process

MixingEquipment

CoatingEquipment

RollingEquipmentDryingEquipment

Lithium-ion Battery Intelligent Equipment

With continuous upgrading of the market and customer needs in mind, LEAD is ?rmly committed to the internationalization strategy,integrating resources, setting up of?ces and branches worldwide, and always keeping ahead of the curve. At present, LEAD productshave been exported to many countries and regions, such as USA, Germany, France, Japan, Korea, India, Sweden, Turkey, Vietnam, etc.We have set up several branches and subsidiaries worldwide, using globalized technology to serve global customers, thus gainingglobal support.

Zhuhai, China

Shanghai, China

Hong Kong, ChinaDongguan, ChinaNingde, China

USA

FranceSlovakia

Hungary

Turkey

Vietnam

Malaysia

Republic of KoreaJapan

NetherlandsSweden

Singapore

Germany（European Headquarters）

Wuxi, China（LEAD Headquarters）

Mexico

UK

Business LayoutGlobal Layout

Focusing on “New Energy + High-end Equipment,” LEAD is committed to providing customers with turnkey intelligent manufacturingsolutions.

Platform Based Approach to Expand into Diverse Business Sectors

Rolling and SlittingIntegrated Equipment

MBB string weldingEquipment

Pulping/grindingEquipment

Intelligent Production Lines

for All Forms of Modules

Battery Charging andDischarging Test Lines

PACK IntelligentProduction Lines

Electric Drive IntelligentProduction Lines

Wafer MarkingEquipment

FPC/PCB LaserDrilling Equipment

High-precision MassTransfer EquipmentLaser NotchingEquipment

Laser WeldingEquipment

Catalyst LayerCoating Equipment

Membrane ElectrodePreparation Equipment

Stack and System AssemblyEquipment

Bipolar Plate ProductionEquipment

Stack Activation andTesting Platform

0BB StringerEquipment

XBC StringerEquipment

Integrated Laser ScribingEquipment

3D AssemblyHigh-?ow Sealing

Five-axis High-speedDispensing

Electrical TestingReliability TestingVisual MeasurementDefect DetectionImaging Testing

Complete BusbarWelding Equipment

IBC StringersEquipmentTab WeldingEquipment

Middle-end ProcessBack-end ProcessSolid-state BatteriesFlakingEquipment

Winding

Equipment

StackingEquipment

AssemblyEquipment

Chemical CompositionEquipment

Dry ElectrodesEquipmentCopper-lithium IntegratedEquipment

Monocrystalline TexturingCleaning Equipment

BSG Removal and Alkali PolishingEtching Cleaning EquipmentScreen Printing/sinteringEquipment

Testing and SortingProcess Equipment

Solid-state StackingEquipmentInspectionEquipmentElectrolyte Injection EquipmentSlitting and Stacking Integrated Equipment

Automotive IntelligentAssembly Lines

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Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

Since its inception, LEAD has always regarded corporate culture as a driving force for development, mobilizing all employees toincorporate the culture in thinking, discussion, and practice, and constantly upgrading, enriching, and extending the concept of ourcorporate culture. Employees actively practice cultural values, and participate in activities such as Chairman quotes study, exemplarystory promotion, cultural concept re?ning, and cultural theme months, demonstrating the charm of LEAD corporate culture, andbuilding a unique corporate culture system.In order to promote corporate culture effectively, we have established performance-oriented employee management and leaderappointment systems. In addition, multi-level and multi-form training helps employees gain a deep understanding of the essence ofcorporate culture. The Chairman personally revised the “LEAD Corporate Culture Manual,” further clarifying the connotation andrequirements of corporate culture. It is disseminated through various channels such as company website, wall posters, departmentsignboards, and name badges to create a strong cultural atmosphere. This allows the corporate culture to deeply resonate withemployees and become a shared value and a behavioral guideline for all staff.

"Excellent operation" is to enhance competitiveness by ensuringproduct excellence, ef?cient operation of the value chain, anddeep optimization of the cost structure. Meanwhile, with a strongfocus on customer core value and satisfaction of their needs, weaim to achieve a triple leadership in technological advancement,cost ef?ciency, and delivery speed, with integrated productdevelopment system as the core.

Excellent Operation

Strategic Direction

CultureSystemC

oncept

Cultu

re

C

ul

tu

r

e

-roote

dC

o

nstr

uctionEnv

ironmen

t

Cultur

e

Behavior

culture

Core Values

Customer-centric, devotion and diligence, integrity and pragmatism,sel?essness and responsibility, innovation, focus, perfection,reputation, ef?ciencyMission

Create value for customers, Seek wellbeing for employees

Steady Growth"Steady growth" is the cornerstone of the sustained developmentand consolidation of a company's competitive edge. Strengtheningcore competitiveness is the source of this process. The Companyneeds to clarify its business layout and dedicate itself to theoverall quality and service improvement. Based on this, LEADadheres to the principles of market-oriented demand, ef?cientresource sharing and collaboration, and steady and orderlyprogress. We prudently carry out diversi?ed expansion in order toeffectively reduce operational risks, broaden revenue channels,and achieve sustainable development.

Agile InnovationHigh-tech and high-value-added products are the essential pathfor driving business leapfrog development. LEAD is committed toadvancing new technologies, new businesses, and new markets ina forward-looking manner to gain a competitive advantage. Withan ef?cient and professional team that quickly responds to themarket, we focus on breakthrough strategies in our core areas.Driven by innovation, we strive to build our core competitiveness,enhance our products and services, and innovate all-roundpractices. Currently, we have achieved a leading position globallyin many ?elds including Li-ion batteries, photovoltaics, hydrogenenergy, and more.

Corporate Culture

Vision

To be a world leading intelligent equipment manufacturer

Quality CultureCraftsmanship, focus on quality

Execution

Focus, perfection, reputation, ef?ciency

Green LEAD

Build an environmental-friendly enterprise

TalentVirtue, attitude and ability

OrientationCustomer-centricto be a world leadingintelligent manufacturing turnkey solution provider

Innovation CultureIndependent innovation to make an intelligent LEADBrand CultureBe a world-leading intelligent manufacturing turnkey solution provider

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

General PerformanceESG RatingAnnual Rating and Award

Postdoctoral Research Station2024 Top 500 Private Manufacturers in China2024 Forbes China Go-International Brands Top 30

2024 Fortune China Top 50 TechsPioneering Manufacturers of Jiangsu Province

Listed Company Golden Bull Award — Golden Information Disclosure AwardAward for Investor Relations Management of Chinese Listed Companies

Excellent New Quality Productivity AwardESG Innovation Award of Guancha 2024 ESG Exemplary Enterprise

2024 Top 30 Best Employers in China

All-China Federation of Industry and Commerce

Forbes ChinaFortune

TitleIssuing Authority

The ?rst set of major equipment recognition in Jiangsu Province —LHCCM480CA/A high-end complete set equipment for precision coating of

hydrogen fuel cell membrane electrode

Green Supply Chain Management Award of the 2nd ChinaCorporate Carbon Neutrality Performance Ranking

China Machinery EnterpriseManagement AssociationDepartment of Human Resources andSocial Security of Jiangsu Province2024 Top 500 Machinery Industrial Enterprises in China

Information Disclosure Evaluation result Aof ChiNext Listed Companies in 2023-2024

China Securities JournalSecurities TimesStock StarGuancha NetYicaiZhilian Recruitment

Shenzhen Stock ExchangeIndustry and Information TechnologyDepartment of JiangsuIndustry and Information TechnologyDepartment of Jiangsu

In 2024, LEAD continues to maintain an excellent ESG rating level by the following ESG rating agencies:

CDPS&P Global

Wind ESG ratingEcoVadis

A

ESG score: 41CSA score: 39Included in S&P Global’s 2025Sustainability Yearbook (China)Climate change 2024 BWater safety 2024 B

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

SUSTAINABILITYMANAGEMENT SYSTEM

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

Based on the actual situation of the Company, LEAD has established an ESG governance system with the Chairman as the principalresponsible person, which provides a solid organizational foundation and institutional guarantee for the formulation of sustainabledevelopment goals, progress tracking and related risk management. At the same time, the Company links ESG-related performancewith the salary performance appraisal system of relevant management, continuously improves the corporate governance level andfollows up the key concerns of stakeholders, so as to promote the steady operation and sustainable development of the business andrealize the vision of "becoming a world leading intelligent equipment manufacturer.”

LEAD takes “Promoting Global Green Energy Transition Through Intelligent Manufacturing" as the core of its sustainable developmentstrategy, establishes ?ve ESG value creation and risk management modules, namely, "creating value for customers,” "seekingwell-being for employees,” "achieving mutual bene?ts for partners,” "driving transformation for society,” and "paving the way for along-lasting future,” and joins hands with stakeholders to support the realization of the United Nations Sustainable Development Goalsand contribute to a better future for mankind. LEAD is committed to: meeting the needs of our customers through high-qualityinnovative products and services; growing with our employees through a comprehensive employee compensation and bene?t systemand development and promotion channel; bringing win-win opportunities to upstream and downstream partners through the promotionof intelligent industry transformation and sustainable value chain management; sharing the fruits of development with ourshareholders by realizing our own sustained and healthy growth; helping build a greener, more inclusive, and more affordable world byinvesting in clean technology and public welfare and charity; paving the way for the everlasting development of the Company by buildinga well-established and ef?cient governance system.

Sustainability Management System

ESG Governance Structure

Coordinationsupport

Highest responsible body for ESG management and public disclosure, responsible for reviewingand approving the Company's ESG strategic objectives and important affairs as well asmonitoring and guiding the ESG Management Committee's ESG governance work.Guidance andsupervision

Decision-making

management

Board of Directors

Execution

The members of ESG Management Committee and Executive Committees take the lead topromote the implementation of speci?c ESG work in various departments, branches andsubsidiaries, follow up and track relevant ESG indicators, and report to the ESG ManagementCommittee on a regular basis.Departments,Branches andSubsidiaries

The Chairman serves as the Director of the ESG Management Committee, and the heads ofvarious departments serve as committee members, working in cooperation with the ESGOf?ce. The ESG Management Committee is responsible for guiding, supervising, managing andmaking decisions on the ESG work of the Company, including monitoring the risks andopportunities related to ESG, formulating the ESG development strategy, objectives andmanagement system of the Company, coordinating and promoting the implementation of ESGstrategic objectives and projects, reviewing the annual ESG reports and other publicly disclosedinformation, conducting regular communication and opinion collection with external expertpartners and other key stakeholders, and reporting the progress and achievements of ESGwork to the Board of Directors quarterly. In addition, there are executive committees under theheads of various departments, which are responsible for implementing speci?c ESG work.

ESG ManagementCommittee(Director: Chairman)

Set up a special external expert advisory group to provide professional advices to the ESGManagement Committee, support the Committee's work and decision-making, provide ESGprofessional capacity building and training, and share ESG best practices and trends on aregular basis.Externalconsultation

Expert Think Tankand Partners

ESG Of?ce

Composed of full-time ESG of?cers to support the work of the ESGManagement Committee. It is responsible for performing work planning andproject design according to the Company's ESG strategic objectives,conducting daily overall coordination and information collection andmanagement of the Company's ESG affairs, and taking the lead in compilingthe annual ESG reports.

Sustainable Development Strategy

Promoting Global Green Energy Transformation

Through Intelligent Manufacturing

Paving the way for a long-lasting future

·ESG risk management and disclosure·Business ethics and compliance·Anti-corruption

·Intellectual property protection·Information security and privacy·Corporate governance

Creating value forcustomers

Seeking well-beingfor employees·Product quality and safety·Technology innovation·Product carbon footprint and life cycle management

·Employee rights and welfare·Human capital development·Occupational health and safety

Achieving mutual bene?tsfor partners

Driving transformationfor society·Responses to climate change·Emissions and waste management·Energy management·Clean technology and green products·Philanthropy and community engagement·Sustainable growth·Driving industrial intelligent transformation·Sustainable supply chain management·Sustainable sourcing of raw materials

Value Creation ModuleRisk Management Module

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

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As a member of the UNGC, LEAD supports the UNGC's ten principles in the areas ofhuman rights, labor, environment and anti-corruption, and continues to invest inaddressing environmental challenges, developing and promoting environmentallyfriendly technologies, eliminating occupational discrimination, and combatingcorruption, in order to promote the achievement of the UN 2030 SDGs and contributeto the global sustainable development process.

LEAD focuses on the impact on biodiversity during the construction,production, and operation. We strictly adhere to policies and regulations,identify risk factors, and investigate potential dangers, so as to create agreen industrial park. Moreover, the Company actively engages inenvironmental protection activities such as tree planting and mountaincleaning to safeguard the habitats of animals.

LEAD takes the initiative to participate in various industry exchanges andassociation events, both domestically and internationally, to promote theintelligent transformation of the industry. Through sustainable supplychain management and comprehensive empowerment, we seekknowledge sharing with global suppliers, create opportunities for jointdevelopment and capacity enhancement, and lead the industry incollaborative development.

LEAD ActionsLEAD has joined hands with Xinwu District Charity Association to establish the "Warm Light Public Welfare Fund,”aiming to bring warmth to more people in need. In response to the national strategies of “rural revitalization” and“leading country in education,” the Company has established long-term assistance projects for left-behind andunderprivileged children in Yichuan County, Yan'an City, to help them complete their studies. It has also set up the"Wang Yanqing Scholarship" in six universities to provide ?nancial support to students with potential.

LEAD continuously enhances the basic welfare security system for our employees. We organize regular health checkupsfor employees and provide health screenings and other bene?ts for employees and their family members, so as to putdisease prevention into practice. LEAD strives to enhance the prevention and control of occupational health hazards andcreate a healthy and safe working environment. We have obtained ISO 45001 certi?cation for occupational health andsafety management system. We take measures such as providing personal protective equipment and ?rst aid facilities,organizing regular occupational health examinations, and conducting occupational disease hazard factor assessments toensure the health and well-being of our employees.

LEAD is dedicated to providing equal, safe, and decent jobs for people ofdifferent genders, ages, nationalities, and races. We adhere to the principle ofequal pay for equal work, ensuring that our employees enjoy fair andreasonable income, better working conditions, welfare bene?ts, and growthopportunities. Simultaneously, we promote the establishment of a diverse,equitable, and inclusive culture and support the creation of a female-friendlywork environment. This includes providing multifunctional nursing rooms andorganizing workshops to empower women, thereby supporting thedevelopment of female employees.

Response to the United Nations Sustainable Development Goals

Community Responsibility

Labor and Human Rights

Under the guidance of the national dual carbon goals, LEAD has built acomplete ecosystem of new energy green intelligent manufacturing,actively contributing to the global energy transition. We have enhancedclimate governance levels by establishing the Company 2035 carbonneutrality goal and incorporating climate change into our strategicplanning, risk management system, and regular production andoperation management. We have optimized the operational energy mixthrough the deployment of distributed photovoltaics and other methodsto support a shared low-carbon future.

Responses to Climate ChangeEnvironment and Energy

Labor and Human Rights

LEAD emphasizes the conservation and reuse of water resources. Wehave achieved the cyclical and ef?cient use of water resources bysynchronously constructing rainwater collection and utilization systemsin new projects. Additionally, we enhance the water-saving awareness ofemployees through daily training and publicity.

Environment and EnergyLEAD is committed to adopting a sustainable productionmodel and adheres to the environmental managementconcept of "clean production, green development." We activelycarry out pollution control and emission management, andhave obtained certi?cations for ISO 14001 environmentalmanagement system and ISO 50001 energy managementsystem. In addition to our own operation, we also build aresponsible supply chain that requires suppliers to complywith relevant laws and regulations, as well as the LEADSupplier Code of Conduct, in terms of labor rights, health andsafety, environment, and business ethics, in order to establisha sustainable supply chain management system.

Products and ServicesSustainable Supply ChainsEnvironment and Energy

Environment and EnergyCommunity Responsibility

Products and ServicesSustainable Supply Chains

LEAD continuously improves its corporate governance structure andsustainable development management system, establishes a diversi?edBoard of Directors, deepens the compliance system, and promotes aculture of integrity. It has obtained certi?cations for ISO 37001anti-bribery management system and ISO 27001 Information securitymanagement systems. The Company maintains a steadfast "zerotolerance" attitude towards bribery, corruption, fraud, money laundering,and unfair competition.

Sustainability Management System

Corporate Governance

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

Through benchmarking analysis and stakeholder research on a regular basis, LEAD screens 21 strategic issues that are conducive to therealization of sustainable value co-creation and ranks the importance of the issues according to the opinions of internal and externalstakeholders to update the materiality matrix annually, so as to better respond to the expectations of stakeholders and provide a referencefor the Company's ESG governance priorities. Among them, material topics with high and medium importance are the key disclosures inthis report, and the scope and boundaries of the report are determined according to the availability of data.

Stakeholders

Issues ofConcerns

CommunicationChannel

ImportantExtremely Important

Product Quality and SafetyOccupational Health and Safety

Business Ethics and Compliance

Emissions and Waste Management

Corporate Governance

Intellectual Property ProtectionAnti-corruptionInformation Security and Privacy ProtectionTechnology InnovationEmployee Rights and WelfareHuman Capital DevelopmentSustainable Supply Chain ManagementEnergy ManagementSustainable Sourcing of Raw MaterialsProduct Carbon Footprint and Life Cycle Management

Clean Tech and Green Products

Driving Industrial Intelligent TransformationSustainable Growth

ESG Risk Management and DisclosurePhilanthropy and Community Engagement

Responses to Climate Change

SocialEnvironmentGovernance

Importance to LEAD’s Operations

Materiality Matrix

Materiality Assessment

Stakeholder Engagement

Benchmarking Analysis

Stakeholders SurveyIssue Materiality Assessment

and RankingIssue Identi?cationand Disclosure

Con?rmation of issues and disclosure priorities after review by the ESGManagement Committee and being reported to the Board of Directors

Sorting out the feedbacks and scoring results of the surveyPreparation of materiality matrix

Distribute questionnaires to 13 categories of stakeholders, including the Boardof Directors, management, employees, investors, customers, suppliers, media,and regulatorsInterview with key stakeholders

Requirements of capital markets, rating agencies and international standardsMacro policies, industry policies and regulatory requirementsBest practices of peers and business features and advantages of LEAD

Material Topics Benchmarking Process

Community

Responses to climate changeEmissions and waste managementEnergy managementPhilanthropy and communityengagement●●●●

Of?cial websiteWeChat of?cial accountCommunity activityVolunteer activity●●●●

ShareholdersESG risk management and disclosureBusiness ethics and complianceAnti-corruptionIntellectual property protectionCorporate governanceSustainable growth

●●●●●●Of?cial websiteInvestor hotlineInvestor relations EmailInteractive platform of ShenzhenStock ExchangePerformance brie?ngInvestor reception dayInstitutional researchGeneral meeting of shareholders

●●●●●●●●

MediaSustainable growthResponses to climate changePhilanthropy and communityengagementTechnology innovation●●●

●

Of?cial websiteWeChat of?cial accountPress conferenceNews brie?ng●●●●

Government AuthoritiesSustainable growthResponses to climate changePhilanthropy and community engagementBusiness ethics and complianceCorporate GovernanceAnti-corruptionDriving industrial intelligent transformation

●●●●●●●

Of?cial correspondenceDaily communicationInstitutional investigation

●●●

EmployeesEmployee rights and welfareHuman capital developmentOccupational health and safety●●●Employees' congressTeam buildingInterest associationTheme activityChairman’s mailboxWhistle-blowing lineContinuous improvement (CI)suggestion platformSatisfaction survey

●●●●●●●●

Suppliers and PartnersSustainable supply chainmanagementSustainable sourcing ofraw materialsDriving industrialintelligent transformation

●●●

Of?cial websiteWeChat of?cial accountSupplier management systemBiddingTechnical exchange meeting

●●●●●

Customers

Product quality and safetyTechnology innovationInformation security and privacy protectionClean tech and green productsProduct carbon footprint and life cyclemanagement

●●●●●

Of?cial websiteWeChat of?cial accountCustomer relationship management(CRM) systemRegular visitTechnical exchange meetingProject teamAfter-sales service systemSatisfaction survey

●●●●●●●●

Extremely ImportantImportance to Stakeholders

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

Responses to Climate Change

Governance

As the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) warned the accelerating approach of climatetipping points, climate change has evolved into a signi?cant challenge of systemic and disruptive risks. From supply chain disruptionscaused by extreme weather to the reshaping of international trade patterns through the European Union's Carbon Border AdjustmentMechanism (CBAM), businesses are now facing dual pressures of physical and transition risks. LEAD has taken action to lead theindustry towards a more environmentally friendly and sustainable direction. We have increased R&D investment to promote theinnovation and application of green and low-carbon technologies and optimize energy ef?ciency, with the aim of contributing our wisdomand strength to global carbon neutrality.

As an active practitioner of China’s dual carbon strategic goals, LEAD has integrated sustainability into its development and comprehensivelystrengthened its climate governance system. The Company has built a climate governance framework from the Board of Directors to variousdepartments, based on the ESG Management Committee, to achieve top-down governance of climate issues.During the reporting period, the Company regularly invited third-party experts to conduct executive ESG strategy and practice training, whilecontinuously seeking external professional support through expert think tanks and partners. At the same time, the Company organizes annualsustainability-themed learning months, both online and of?ine, to disseminate professional knowledge of ESG, carbon neutrality, and energymanagement to all employees.LEAD recognizes the signi?cance of professional talents in enhancing its climate governance capabilities. Therefore, careful consideration wasgiven to the quali?cations of relevant personnel, with a preference for individuals with expertise in environmental and energy ?elds, during theestablishment of the ESG Management Committee and ESG Of?ce to guide the Company's environmental and climate management efforts. Asa result, LEAD climate-related department is staffed with professionals who have backgrounds in environment and energy to continuously keepup with the latest knowledge of dual carbon policies, climate change trends, and other related updates.The Company systematically identi?es, assesses, and manages climate risks and opportunities, establishes scienti?c development plans andgoals, and ensures timely reporting of climate-related important information to the Board of Directors through a combination of regular and adhoc meeting mechanisms. In addition, the Company links senior management compensation to climate change-related indicators as a way toenhance internal management mechanism, so that the Company’s climate strategy is valued and implemented effectively from top to bottom.

Incentive Object

Senior management

All employees

Incentive Type

Financial incentive

Financial incentive andnon-?nancial incentive

IndicatorIncentive Description

The Company encourages all employees to offer advicesand suggestions on sustainable development. After thesuggestion put forward through the Company's internalprocess is adopted and rated, the employee will receivecorresponding cash rewards and honorary rewards.

The Company incorporates “Energy Conservation andEmission Reduction, Cost Reduction and Ef?ciencyImprovement” into the performance appraisal system ofrelevant senior management and links them with theirsalaries.Energy conservation andemission reduction, costreduction and ef?ciencyimprovement

Energy conservation andemission reduction, costreduction and ef?ciencyimprovement

Strategy

Special

LEAD actively identi?es, analyzes and manages risks and opportunities related to climate change, formulates climate-related workplans and targets, and reports information to the Board of Directors through regular and ad hoc meetings.The Company has identi?ed physical risks and transition risks based on climate scenario analysis, helping us to manage climate risksmore effectively. We have chosen the IPCC’s Representative Concentration Pathways (RCPs) SSP1-2.6 (global warming <2℃), SSP2-4.5(global warming approximately 2-3℃), and SSP5-8.5 (global warming >4℃) as the scenarios for analyzing the climate physical risks. Foreach climate risk, we have developed corresponding measures to comprehensively enhance our ability to respond to risks. At the sametime, we take into account the industry opportunities brought by climate change, and lay a solid foundation for sustainable developmentof the Company through technological optimization and green transition. Below is a brief table outlining our key climate risks andopportunities.

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CountermeasuresPhysical RiskRisk Category

Acute risk

Risk Description

PotentialFinancial Impact

Chronic risk

Transition Risk

Policy risk

Technological risk

Extreme weather such as typhoons,?oods, droughts, and heat waves cancause signi?cant damage to infrastruc-ture or disrupt supply chains, therebyimpacting business operations, causing?nancial losses, and posing risks topersonnel safety.

Increasedmanagement

expenses

Increasedoperating costs

Increasedmanagement

expenses

Increasedoperating costs

Increasedoperating costsIncreased R&D

expenses

Increasedmanagement

expenses

The global climate disasters, such asthe rise in average temperature andsea level, will have public healthimpacts, increase energy consumptionof cooling equipment, and causerelocation costs for coastal plants.

With accelerating global green transi-tion, companies need to incorporatelow-carbon strategies to promote inno-vation and ef?ciency. Carbon taxes,CBAM, and other policies increasecosts, prompting businesses to accel-erate green transition in response tocompetition and carbon tariffs.Failure to timely invest in low-carbontechnology or undertake collaborativevalue chain transformation may lead toincreased costs and decreased com-petitiveness.

Pay close attention to meteorological information and promptlyimplement emergency response mechanisms;Regularly inspect and reinforce buildings and productionequipment, and supply ?ood prevention materials; equippedwith emergency water tanks in the plant to provide backupwater source; plan transportation routes in advance.

●●

Adjust employees' working hours and provide them with heat-stroke prevention and cooling supplies;Evaluate historical climate data and prioritize areas with higheraltitudes before plant construction; stay vigilant about the risingsea levels in the region.●●

Set carbon neutrality goals, invest in green technologies,purchase renewable energy and renewable energy certi?cates,and explore carbon offsetting;Pay attention to the new energy policies and develop cleanenergy equipment production to seize the opportunity of greentechnology;Conduct a research on the impact of CBAM on company opera-tions, and promote the calculation of equipment carbon footprints.

●●●

Increasedoperating costsIncreased R&D

expenses

Incorporate an energy and carbon digital management platformto enhance the transparency of carbon emission data collection,monitoring, and reporting;Optimize equipment energy management with automationtechnology, analyze the potential for carbon reduction and energysaving, and conduct process and equipment improvement.●●

Market risk

With the global low-carbon transitionand the increase in customers' greendemands, failure to adjust companyproducts in time can lead to a decline incompetitiveness and in market share.Moreover, it is needed to reduce depen-dence on high-carbon raw materials.

Reduced operating

revenue

Increasedoperating costsAffected market

expansionDiminished marketcompetitiveness

Offer carbon footprint tracing to customers, collaborate onlow-carbon products, and reduce product carbon footprints;Purchase low-carbon recyclable raw materials and designgreen low-carbon products; reduce carbon emissions throughmeasures such as using reusable pallet boxes and replacingmetal with non-metal; prioritize low-carbon sustainablesuppliers to promote a green supply chain.

●●

Reputational risk

Failure to effectively reduce environ-mental impact may result in decreasedinvestor con?dence, reduced valuation,and damaged reputation.

Decreased market

share

Increasedmanagement

expenses

Develop and disclose the commitment and action plan forcarbon neutrality to enhance transparency and credibility;Disclose climate indicators and performance annually, show-casing achievements and progress in climate management.

●●

CountermeasuresOpportunityCategory

Opportunity Description

PotentialFinancial Impact

Climate RisksClimate Opportunities

Enterprises can optimize energy ef?cien-cy, reduce costs, and enhance competi-tiveness in collaboration with the valuechain through digital energy manage-ment, photovoltaic installation, andlow-carbon product application.

Reduced operatingcostsAdditional ?nancial

subsidiesImprovement ofresourceutilizationef?ciency

Utilize clean energy ef?ciently, and develop photovoltaics inthe plant area to enhance energy self-suf?ciency; optimizeequipment energy consumption management and energyutilization ef?ciency through online monitoring system;Optimize the logistics route, and promote the reuse ofpallets to reduce logistics costs and carbon emissions.●●

Enterprises can reduce carbon emis-sions through digitalization, electri?ca-tion, and clean technologies, whileempowering the supply chain to promotegreen energy, so as to enhance competi-tiveness and sustainable developmentcapabilities.

Reduced operatingcostsAdditional ?nancial

subsidiesEnergysubstitution andnew technologyapplication

Establish a platform-based layout featuring "new energy +intelligent manufacturing" in the new energy equipmentmanufacturing business to enhance risk resistance capa-bility;Phase out diesel forklifts and gasoline of?cial vehicles withelectric vehicles to reduce operational carbon emissions.●●

With new energy intelligent manufactur-ing solutions and a globalization strategy,enterprises can broaden its market,explore the potential of energy savingand carbon reduction in its products, andpromote the green development of theglobal new energy industry.

Increasedoperating revenueEnhanced marketshareAdditional ?nancial

subsidiesExpansion ofnew market

Explore the markets of Li-ion batteries, energy storage,photovoltaics, and hydrogen energy by leveraging techno-logical advantages, so as to promote the low-carbon transi-tion of the global new energy industry;Stay closely aligned with the global new energy trends, andseek insights into the latest developments in the Chinese,Asia-Paci?c, and Euro-American markets, so as to adjustour market strategies to embrace opportunities.

●●

Enterprises can develop low-carbonproducts through green technology inno-vation to meet global green consump-tion, enhance competitiveness, lead thezero-carbon manufacturing of Li-ionbatteries, photovoltaics, and hydrogenenergy, and promote industrial transfor-mation.

Increasedoperating revenueReduced operatingcostsAdditional ?nancial

subsidiesDevelopment oflow-carbonproducts and

services

Enhance forward-looking technology R&D, maintain over10% R&D investment, and improve innovative capabilitiesto respond to climate change;Conduct carbon footprint calculation of core products anddevelop energy-saving technologies to help customersachieve full life cycle carbon traceability and enhance prod-uct competitiveness;Provide an intelligent manufacturing solution for the entirevalue chain and lifecycle of new energy, aiming to achieveenergy conservation and emission reduction from thesource, and to assist customers in ef?cient and low-con-sumption production;Develop new energy products and services and obtain?nancial rewards and subsidies by aligning with policysupport and encouragement.

●●●●

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Impact, Risk and Opportunity ManagementMetrics and TargetsLEAD takes climate risks as part of our risk management system. We establish a climate risk and opportunity identi?cation list, upgradethe climate risk and opportunity management process, and take targeted measures to mitigate the impact of climate risks on ouroperations and to capitalize on the opportunities brought by climate change. We have identi?ed the main physical and transition risksaffecting the Company and have formulated risk response measures and opportunity transformation plans to ensure the orderlyprogress of climate work.

Identify climate risks and opportunities that may have an impact on business operations by benchmarkingagainst international standards, following industry trends, and analyzing the demands of stakeholders.Identify a list of climate risks and opportunities, and clarify the potential scope, duration, and probabilityof each risk and opportunity.Identification of

climate risksand opportunities

●●Every six months, the ESG Management Committee organizes a climate risk and opportunity assessmentbased on the climate change situation reported by the ESG Of?ce.Analyze the impact of identi?ed climate risks and opportunities on the Company's business, strategy and?nancial planning through climate scenario analysis.●●

Take countermeasures to various climate risks, such as strengthening infrastructure construction andoptimizing energy mix.Take active actions for various climate opportunities, such as developing green products and low-carbonmanagement.●●

Monitor the changing trends of climate risks and opportunities regularly in order to take timely action.Disclose the management situations of climate risks and opportunities regularly, adjust managementstrategies promptly, and optimize risk management measures.●●

As a world leading intelligent manufacturing solution provider for new energy, we adhere to the concept of "clean production, greendevelopment." We publicly commit to achieving carbon neutrality, and have established and implemented a scienti?c roadmap. We arededicated to collaborating with all stakeholders along the industrial chain to contribute to human progress and sustainable developmentwith intelligent manufacturing. In order to ensure the achievement of our goals, we have established a comprehensive system fortracking climate change indicators, regularly disclosing the progress of our objectives and continuously promoting the green transitionof our company.

Energy Consumption and Greenhouse Gas EmissionsEnergy Consumption IndicatorsUnit：MWh

Greenhouse Gas (GHG) Emissions Indicators

Direct energy consumptionIndirect energy consumptionRenewable energy consumptionNon-renewable energy consumptionTotal energy consumption

3,747.5860,227.329,553.0054,421.9063,974.90

Scope 1 GHG emissionsScope 2 GHG emissionsScope 3 GHG emissionsTotal GHG emissions

1,902.6132,317.984,008,964.954,043,185.54

Unit：MWh/100 Million RMB

Unit：tCO

e /100 Million RMB

Unit：tCO

e

Assessment ofclimate risks andopportunities

Management ofclimate risks and

opportunities

Monitoring ofclimate risks and

opportunities

539.64

288.66

Energy consumption per unit of business revenue

GHG emissions per unit of business revenue (Scope 1+2)2829

Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

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Green Solutions

Product Carbon FootprintLEAD Commitment to Carbon Neutrality

According to ISO 14067:2018 Greenhouse Gases - Carbon Footprint of Products - Requirements and Guidelines for Quanti?cation and PAS2050:2011 Speci?cation for the Assessment of the Life Cycle Greenhouse Gas Emissions of Goods and Services, using the cradle-to-gatesystem boundary, LEAD has completed the carbon footprint accounting for three core products, of which the Li-ion battery cell electrodecutting and stacking machine and the dual-layer coating machine have obtained ISO 14067 product carbon footprint certi?cation.

LEAD will continue to strengthen product carbon footprint management, expand the coverage of product carbon footprint,enhance product low-carbon competitiveness, and provide professional data support for customers in green procurement bymeans of product carbon footprint certi?cation, enabling customers and other stakeholders to better understand theenvironmental impact and sustainability of the product throughout its lifecycle.

ProductCarbon FootprintProportions of Carbon Emissions in Each Phase of the Product

FU (functional unit): The functional unit is de?ned as one machine.

In our operation, we have taken diverse innovative measures and promoted technological transformations in six aspects: building energyconservation, auxiliary systemenergy conservation, production system energy conservation, renewable energy utilization, managementsystem enhancement, and the application of intelligent energy and carbon digital intelligence systems. In this way, we have comprehen-sively achieved digitization, high ef?ciency, electri?cation, and cleanliness in energy use, signi?cantly reducing operational carbonemissions and promoting the realization of green transition goals. In the reporting period, LEAD did not participate in the carbon credittrading of China Certi?ed Emission Reduction (CCER), and was not involved in the clearance of carbon quotas in pilot carbon market. Inaddition, we offset part of the direct emissions and the indirect emissions generated by purchased electricity in 2024 by purchasing 311tons of Veri?ed Carbon Standard (VCS) certi?ed emission reductions and 9,553 Green Electricity Certi?cates (GEC).

In 2024, the Baku Climate Unity Pact reached at the 29th UN Climate ChangeConference urged all parties to submit more ambitious Nationally DeterminedContributions (NDCs). It calls for the gradual phase-out of fossil fuels and athree-fold increase in renewable energy capacity by 2030, as well as a doublingof the global energy ef?ciency annual growth rate, in order to narrow the gaptowards the 1.5℃ temperature control target. As a global leader in new energyequipment, LEAD is committed to practicing green and low-carbon production,working together with the upstream and downstream of the industrial chain tobuild a green and low-carbon world, and promoting sustainable developmentthrough intelligent manufacturing and innovation.Currently, we have already built a complete intelligent manufacturing solution business ecosystem in the ?elds of new energy Li-ionbatteries, photovoltaic equipment, hydrogen equipment, etc. The Company has established mutually bene?cial and growing strategicpartnerships with global customers, actively participating in customer technological transformation and low-carbon revolution. Taking theinitiative to promote the scale and intelligence of the new energy industry, we assist customers in building ef?cient andlow-energy-consuming intelligent factories, contributing to the global new energy.

Li-ion battery cell cuttingand stacking machine

Dual-layer coating

machine

Winding machine

162.57 tCO

e/FU

2,817.95 tCO

e/FU

59,227.70 tCO

e/FU

LEAD Carbon Neutrality Goals

Carbon Peaking

Achieve carbon peaking in core operationsScopes 1 and 2End of 2030

Scope 3

Value Chain Emission ReductionContinuously drive emissions reductionthroughout the value chain

Transparency

Regularly report progress towarddecarbonization goals

Carbon Neutrality

Achieve carbon neutrality in core operations

Scopes 1 and 2End of 2035

Raw materialacquisition 91.30%

Raw materialtransportation 0.15%

Productprocessing 8.55%

Raw materialacquisition 93.77%

Raw materialtransportation 5.29%

Productprocessing 0.94%

Raw materialacquisition 95.96%

Raw materialtransportation 0.96%

Productprocessing 3.08%

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Photovoltaics

Solar energy, as the most cost-effective clean energy, is crucial for energy transition. According to Bloomberg Finance, global photovoltaicinstallations reached nearly 600GW in 2024, up by 35% compared to the previous year. Data released by China National EnergyAdministration shows that China's newly installed solar energy capacity reached 277GW in 2024, showing a great increase in photovoltaicpower generation.LEAD provides a turnkey solution for the intelligent manufacturing of photovoltaic modules and batteries. Our ultra-high speed stringer,MBB multi-busbar stringer, and complete sets of shingling stringer are all at the forefront of the global market. Combined with ourindependently developed MES system, intelligent warehouse logistics system, as well as laser technology and machine vision technology,we can create an "unmanned workshop" for the photovoltaic industry.We have introduced the highest-capacity LDDS15000S cutting stringer, 0BB busbar-less stringer, and XBC stringer, leading the industry,and provided customers with a turnkey solution for TOPCon high-ef?ciency photovoltaic cell intelligent factory with a conversion ef?ciencyexceeding 26.5%.At the same time, LEAD actively deploys BC (Back Contact) technology with higher photoelectric conversion ef?ciency, HJT(Heterojunction) technology, and perovskite technology, providing customers with leading solutions for intelligent manufacturing ofphotovoltaic cells and modules. We have accumulated over 25GW of orders for BC photovoltaic process equipment, including screenprinting and testing production line, wet texturing cleaning equipment, module stringer, and whole-line automation equipment. In 2024,we assisted top BC players in the industry to achieve excellent power generation performance with BC modules reaching a design powerof 675W. In the same year, we successfully commissioned the ?rst GW-level perovskite cell production line for industry-leadingcustomers.

Hydrogen energy, as the ultimate clean energy of the 21st century, is highly regarded for its zero-emission characteristics. LEAD hasactively deployed green hydrogen production, hydrogen fuel cell manufacturing, battery testing and other ?elds. In 2024, the Companyinaugurated the ?rst automated electrolyzer factory for a globally renowned mining and renewable energy corporation. The facility isamong the ?rst to be equipped with an automated assembly line, capable of producing over 2 GM PEM electrolyzer annually, providingsigni?cant support to global clean energy production. Our high-end MEA coater has been listed in the ?rst major equipment of JiangsuProvince. The coater is speci?cally designed for the high-precision, high-quality, and large-scale production of hydrogen fuel cellmembrane electrodes, and has achieved breakthroughs in multiple international leading technical indicators. The thickness deviation ofthe monolayer catalyst is within ±0.5?m, and the maximum coating linear speed can reach 5m/min. The edge in?uence area of themachine is controlled within ≤2mm. These technical parameters are at the forefront of the industry and are prerequisites for the massproduction of high-performance membrane electrodes.

Energy StorageBattery energy storage is crucial for the widespread application of renewableclean energy. It is an essential means to address the discontinuity, instability,and uncontrollability of solar power, wind power, and other renewable energysources, effectively reducing solar and wind energy waste. In 2024, in the ?eldof energy storage applications, LEAD put more emphasis on R&D in productionline ef?ciency, ?exibility, and modularity. We actively adapted to customerrequirements such as CE/UL/BIS, enhancing its overseas delivery capabilitiesand customer satisfaction. By 2024, we have cumulatively provided over300GWh production line equipment orders to energy storage customers bothdomestically and internationally. These products have been exported tooverseas markets such as Europe, North America, Southeast Asia, and India,with overseas orders accounting for over 50% of our total. Furthermore, theCompany has strategically collaborated with multiple customers in the R&D of500-1,000Ah large-scale energy storage batteries, energy storage chargingand discharging systems, and testing systems.

In recent years, the market share of electric vehicles in the automotive market has been rapidly increasing. According to the data from theChina Association of Automobile Manufacturers, both of the production and sales of new energy vehicles in China exceeded 10 million in2024, with a production of over 12.88 million and a sales of over 12.86 million, representing a year-on-year growth of 34.4% and 35.5%,respectively. The sales of new energy vehicles reached 40.9% of the total sales of new vehicles, with an increase of 9.3% compared to that in2023.

New Energy Lithium-ion Battery

Hydrogen Energy

The popularization of electric vehicles and clean energy supplyis the key path for China to promote the "carbon peaking andcarbon neutrality" strategy and for the world to achieve thelow-carbon emission goals. Electri?cation has become themain development trend of new energy vehicles worldwide.LEAD provides global battery and vehicle manufacturers withan intelligent equipment turnkey solution for the entire valuechain and lifecycle of new energy Li-ion battery, including cells,batteries, module/PACK, and charging and discharging tests.Through technological innovation and intelligent upgrades toproduction lines, we help customers improve battery energydensity and safety, while reducing unit energy consumptioncosts, and promote the large-scale production of high-perfor-mance and low energy consumption vehicle and energystorage Li-ion batteries.

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CORPORATEGOVERNANCE

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LEAD timely optimizes and adjusts the design of organizational structure in accordance with the requirements of the Company Law ofPeople's Republic of China, the Securities Law of People's Republic of China and other relevant laws, regulations and normativedocuments, and based on the business characteristics and strategic requirements of the Company. LEAD establishes and improves theorganizational structure and operation mechanism of modern enterprises composing of general meeting, board of directors, board ofsupervisors and management. All organizations shall exercise their functions and powers and perform their obligations according to lawwithin their terms of reference to jointly promote the ef?cient and compliant operation of the Company. LEAD also establishes andimproves various internal management systems based on the Articles of Association.

In strict accordance with the Guidelines for the Management of Investor Relations of Listed Companies, the Rules for Listing on ChiNext ofShenzhen Stock Exchange (2024 Revision), and the Self-Regulatory Guidelines No. 2 for Companies Listed on Shenzhen StockExchange--Standardized Operation of Companies Listed on the ChiNext Market (December 2023 Revision), LEAD conscientiously implementsthe relevant requirements and instructions of the regulatory authorities to protect investors, ful?lls the obligation of informationdisclosure according to law, treats all investors equally (especially providing opportunities to small and medium-sized investors toparticipate in activities), listens to investors' opinions and suggestions and responds to investors' demands timely, strengthenscommunication with investors and potential investors, enhances investors' understanding and recognition of the Company, andimproves the level of corporate governance and the overall value of the enterprise to achieve the goals of respecting, protecting andrewarding investors.

Year2023202220212020

Dividend Payout Ratio 35.47%

49.34%

36.29%

30.05%

Corporate Governance

Organizational StructureInvestor Equity Protection

In strict accordance with the Company Law, the Articles of Association, the Rules of Procedure forShareholders' General Meeting and other laws and regulations, LEAD regulates the convening,holding and voting procedures of shareholders' general meeting to ensure that all shareholdersenjoy equal status and equal rights, and fully exercise their rights and ful?ll their obligations.During the reporting period, LEAD held one annual general meeting and two extraordinarygeneral meetings, all of which were convened and held by the Board of Directors.

About Shareholders and General Meeting

Annual general meetingExtraordinary general meetings

LEAD ful?lls its information disclosure obligations in strict accordance with the requirements of theCompany Law of People's Republic of China, the Rules for Listing on ChiNext of Shenzhen Stock Exchange, theAdministrative Measures for Information Disclosure of Listed Companies and other relevant laws andregulations to ensure that the contents of the reports are true, accurate, timely and complete and theinformation is publicly disclosed to all investors. In 2024, 162 announcements and documents weredisclosed. The Company has received A ratings in the information disclosure assessment of the ShenzhenStock Exchange for 6 consecutive years.

Ful?lling Information Disclosure Obligations According to Law

A

Informationdisclosure ratingsfor 6 consecutive years

LEAD attaches importance to communication with domestic and foreign investors and has established rich communication and feedbackchannels with investors, thus strengthening investor con?dence and effectively protecting the vital interests of investors, especially small andmedium-sized investors.Investors can better understand information that helps them make decisions, such as the characteristics of the industry in which the companyoperates and the company's business, through various forms such as general meetingsof shareholders, performance brie?ngs, visits, brokerstrategy meetings, the Interactive Zone on the SZSE website, investor hotlines and other forms.This enhances the interaction and mutual trustbetween the Company and investors, and to establish a good corporate image in the capital market.

Diversi?ed Investor Communication Mechanism

LEAD pays continuous attention to shareholder return, actively shares business development achievements with shareholders, establishescontinuous, stable and scienti?c return planning mechanism for investors, and periodically reviews such mechanism. LEAD makes appropriateand necessary adjustments to the pro?t distribution policy of the Company based on the opinions of shareholders, especially public investors andindependent directors, and formulates a shareholder return plan for that period. In principle, LEAD implements pro?t distribution once a year,giving priority to cash dividends. Under the premise of ensuring full cash dividend distribution, LEAD may also adopt stock dividend distributionand capital reserve converted into share capital.

Stable Shareholder Return Mechanism

There are seven directors on the Board of Directors of the Company, including three independentdirectors, and one female director. The number and composition of the Board of Directors are incompliance with the requirements of laws, regulations and the Articles of Association. TheCompany fully considers the diversity of the Board of Directors in terms of gender, culture,educational background, professional skills, and other aspects during director appointment, inorder to ensure the scienti?c and effective decision-making of the Board. All directors earnestlyperform their duties in an honest, diligent and conscientious manner, attend meetings on time,actively participate in trainings, and constantly improve their performance of functions. There arefour special committees under the Board of Directors, which are respectively the StrategyCommittee, Nomination Committee, Audit Committee and Remuneration and AppraisalCommittee, and corresponding rules have been formulated. All these play an important role inpromoting the Company's standardized operation and safeguarding shareholders' rights andinterests. During the reporting period, the Company held 9 board meetings with 100% directorparticipation.

About Directors and Board of Directors

DirectorsIndependent directorsFemale directorBoard meetings

SupervisorsEmployee supervisorFemale supervisorsMeetings of the Board of Supervisors

The Board of Supervisors consists of three supervisors, including one employee supervisor and twofemale supervisors. The number and composition of the Board of Supervisors meet the requirementsof laws and regulations. During the reporting period, the Board of Supervisors held meetings in strictaccordance with the regulations. All supervisors perform their duties conscientiously with the bestinterests of shareholders in mind, supervise the legality and compliance of the Company's ?nancesand the performance of duties by the Company's directors and senior management, and protect thelegitimate rights and interests of the Company and shareholders. During the reporting period, theCompany held 8 meetings of the Board of Supervisors.

About Supervisors and Board of Supervisors

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LEAD continuously strengthens its decision-making mechanism to respond to risks, reducing unexpected losses during operationalprocesses, and enhancing its ability to create long-term value.The Company has established a comprehensive risk management and internal control organizational structure, with the Board ofDirectors and management assuming the responsibility of overseeing the execution of the Company's strategy and comprehensive riskmanagement. On this basis, the Company has established a three-line-of-defense system composed of business departments, riskmanagement department, and internal audit department, ensuring the comprehensiveness and effectiveness of risk management.

First Line of Defense: Self-inspection and Self-assessment by Business DepartmentAs the ?rst line of defense in risk management, each business department adopts a "self-supervision" approach to regularly self-in-spect and self-assess its own risk situations.Second Line of Defense: Supervision and Inspection by Risk Management DepartmentThe Finance Department, Internal Control Department, Legal Compliance Department, etc., serve as the second line of defense, whichare responsible for assessing the effectiveness of the risk mitigation measures established by various business departments from a riskassessment perspective. They also oversee the implementation of risk response plans. The Company has established a dedicated inter-nal control department, which is responsible for planning internal control management rules, operational mechanisms, and capacitybuilding. It also organizes internal control training and educational publicity activities to continuously optimizethe company's internalcontrol risk management system.Third Line of Defense: Supervision and Audit by Audit Department

The Audit and Supervision Department, as the third line of defense, independently supervises and evaluates the Company's risk man-agement work. Through forms such as special audits and internal control testing evaluations, it promptly identi?es issues and providessuggestions for improvement.Following the Basic Norms for the Internal Control of Enterprises and its supporting guidelines issued by the Ministry of Finance, andtaking into consideration the actual production and management situation, the Company has established an integrated internal controlrisk management system that encompasses eight aspects: internal environment, goal management, risk identi?cation, risk assess-ment, risk response, activity control, information and communication, and internal supervision. This system is built on the theoreticalframeworks of the Internal Control - Integrated Framework (2013) and the Enterprise Risk Management - Integrated Framework by theCommittee of Sponsoring Organizations of the Treadway Commission (COSO). This system revolves around the company's overall goals,embedding risk control measures in various key operational areas, continuously deepening risk management and internal controls, andbuilding a solid risk defense line for the Company's high-quality and stable development.

Risk Management and Internal Control

Internal EnvironmentThe Company, based on its internal control environment,actively practices a culture of integrity, strictly adheres tolaws and regulations, and strengthens professional ethics.The Company clearly de?nes responsibilities and authorityallocation, and sets up approval authority for differentmanagement levels, in order to eliminate any unauthorizedactions.

Goal Management

The Company sets strategic goals that are aligned with thecorporate mission and vision, breaks them down intodepartmental goals and individual targets, and plansresources to ensure that the goals are achieved. TheCompany continuously monitors the execution of its strategicinitiatives and assesses the results.

Risk Identi?cation

The Company extensively collects internal and external risk information, establishes monitoring and communication mechanisms, andensures that business departments promptly report risks and opportunities to the management. The internal control departmentidenti?es potential risks by checking risk lists, conducting process analysis, ?nancial analysis, and other methods. The internal auditdepartment uses a risk-oriented auditing approach for risk identi?cation.

Risk Assessment/Risk Exposure

The Company analyzes risks through formal procedures and daily management practices, establishing an "overall assessment" at theCompany level and a "targeted assessment" at the business unit level. By employing a combined qualitative and quantitative approach,we assess the likelihood of risk occurrence and the degree of impact, and develop risk management strategies. Each businessdepartment evaluates risks through business analysis meetings, industry benchmarks, and other methods. The internal controlmanagement department qualitatively and quantitatively monitors and evaluates the overall risk level of the Company based onquarterly risk warning indicators. It also quantitatively evaluates the risk of key internal control points by scoring the likelihood andimpact, and prioritizes internal control optimization based on the risk level.

Information and Communication

The Company establishes multi-dimensional channels ofinformation and communication to promptly obtain externalinformation and ensure the adequacy and timeliness ofinternal information transmission. The Company encouragesall employees to put forward improvement suggestions andcontinuously invests resources to support the construction ofinformation systems, ensuring the quality of informationprocessing.

Internal Supervision

The Company continuously monitors internal control riskmanagement, clarifying the levels and responsibledepartments for supervision and inspection. The riskmanagement execution department and the riskmanagement supervision department each perform theirrespective duties under a mechanism of checks andbalances to ensure the effectiveness and sustainability ofrisk management.

Activity ControlThe Company establishes and implements comprehensive policies and procedures to ensure the proper execution of managementinstructions and the control of risks. Each department formulates rules, regulations and measures in key areas such as strategy, R&D,?nance, legal, quality, safety, environmental protection, and market operations, centering around the objectives of the riskmanagement strategy, to ensure the effective operation of internal control mechanisms. The Company integrates internal controlrequirements into the front-end systems, enhancing internal control rigidity through automatic controls and standardized processes.

The Company, based on risk identi?cation and assessment, comprehensively balances costs and bene?ts, determines responsestrategies for different risk characteristics, and keeps risks within an acceptable range. Each department reports risk events to themanagement in a timely manner according to their respective responsibilities. The management, through close monitoring, providesguidance and make appropriate responses.

Risk Response

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LEAD incorporates “Integrity and Trustiness" into its core values, requires all employees to adhere to the business ethics with “Integrityand Compliance with Law and Commitment” as the core, and strictly abides by laws and regulations on operation, environment, safety,quality and ?nance. LEAD attaches great importance to strengthening risk awareness. It has formulated relevant documents such as the“Code of Business Conduct for Employees,” the “Supplier Anti-commercial Bribery Declaration,” the “Bidding Management System,” the“Procurement Management System,” the “Code of Conduct for Integrity in Procurement Business,” the “Integrity Management System,”and the “Financial Management System.” In addition, the Company has adopted various methods to disseminate laws and regulations toall employees. For instance, the Audit and Supervision Department organizes compliance training and tests irregularly on a monthly basis.The Legal Department organizes periodic legal training focusing on key areas such as sales, procurement, and overseas compliance.These efforts have enhanced the legal operating capabilities of the leadership and the legal awareness of the employees, thereby fosteringa sound legal atmosphere.In 2024, the Company held a total of 40 business ethics training sessions for employees,including 12 sessions of specialized integritytraining for procurement, 4 sessions of compliance management training, and 17 sessions of specialized integrity training for businessdepartments, 1 compliance training session for directors, supervisors, and senior executives, and 6 integrity training sessions and contentpushes for suppliers.Based on high-quality development, LEAD always adheres to legal and compliance management, conscientiously implements national taxlaws, regulations and relevant system provisions, actively pays taxes, and contributes strong momentum to the high-quality developmentof local industrial economy. The Company disclosed relevant tax information in accordance with the law. Please refer to the Company'sannual report for 2024 for details.

The business of LEAD covers many countries and regions around the world. LEAD requires all employees to comply with the generalcode of business conduct as well as other rules of the Company, their departments or business areas. Therefore, in accordance with thelegal requirements of the countries in which the Company operates, LEAD formulates the “Code of Business Conduct for Employees” toregulate employees’ behaviors from four dimensions: basic rules, internal business behaviors, external business behaviors and personalbehaviors.

In view of possible corruption and fraud, LEAD has developed the “Complaint Reporting Management System” and set up variousreporting channels for employees, customers, suppliers and the general public. Whistleblowers can provide clues with or withoutrevealing their identity. The Company conducts evaluations on received reports, initiates investigations into cases with clear illegal anddisciplinary facts, and ensures the independence and fairness of the investigation results. If the reported materials are veri?ed, LEAD willreward the whistleblower accordingly.In order to protect whistleblowers, the Audit and Supervision Department has designated dedicated personnel and positions to contactwhistleblowers through the reporting channels they used, and to keep the whistleblowers' information strictly con?dential throughout theprocess. The accused person shall not retaliate or instruct others to retaliate against the whistleblower. Once discovered, he/she will bedealt with severely, and if he/she involves illegal or criminal activities,he/she will be referred to the public security authority for handling.

Focusing on anti-bribery work for the year 2024, LEAD enhanced business anti-briberyinternal control measures, strengthened the prevention and the control of violations andbribery at the project end, and deepened fraud governance in high-risk business areas. Inthe reporting period, we obtained the certi?cate of ISO 37001 anti-bribery managementsystems, which is an important manifestation of LEAD practice of the ESG developmentstrategy, and also a strong proof of the high-level standardized governance. In addition, tofurther enhance the anti-bribery governance capabilities, the Company strengthened thesynergy between anti-crime measures related to corporate economic activities, anddeepened the collaboration mechanisms with the police. As a result, it has become a"police cooperation enterprise" and contributed to the economic and social development ofthe area.

Internal BusinessBehaviors

Reporting channelsWeChat of?cial account: Clean LEADHotline (WeChat): 18795605971E-mail: [e-mail]

AuditDepartment

ComplianceconstructionSupervision and

inspection

ChairmanAudit & Supervision

DepartmentSupervisionDepartmentDepartmentCompliance Of?cer

Basic Rules

Business Ethics

Compliance System

Employees Code of Conduct

Anti-bribery Management

The Company has set up the Audit and Super-vision Department as its functional depart-ment for the internal supervision and inspec-tion, which reports directly to the Board ofDirectors, and has set up departmental com-pliance of?cers in each department, who arerequired to conduct compliance training withintheir departments and submit departmentalcompliance materials to the Audit and Super-vision Department on a regular basis.

Certi?cate of Anti-briberyManagement SystemsReporting Channels and Whistleblower Protection

●Employees shall comply with the general code of business conduct and adhere to the Company's values, mission and vision.

External BusinessBehaviors

Personal Behaviors

Prohibit discriminatory behaviors such as gender, race and ethnicity discrimination, harassment,and violations of laws and regulations.Protect the Company's tangible assets, intellectual property, technical and trade secrets, and otherintangible assets.Keep correct and honest recording and reporting of information, and comply with the relevantsystems for the proper preservation and destruction of handled documents.Strictly limit the authority of employees' personal information and protect their privacy.

●●●●

When selecting suppliers, always adhere to the principle of fairness and it is forbidden to get bene?tsfrom suppliers.Be customer-oriented in the process of serving customers, that is, using customer thinking, startingfrom customer needs, satisfying customers, and creating value for customers.Observe laws and business ethics, ?ght against monopoly and unfair competition, and do not offer orpromise to offer monetary or other bene?ts to government of?cials in the course of carrying outbusiness activities.Comply with the laws, regulations, practices and standards of the business place, including investment,trade, labor and employment, environmental protection, contracts, accounting, taxation, etc.

●●●●The ?rst priority is always integrity when recruiting employees.Avoid con?icts of interest, and do not use inside information and conduct insider trading.Protect the proprietary information of the Company, customers and suppliers.Be honest and law-abiding, and prohibit corruption and fraud.●●●●

1.Take compliance management system

as the cornerstone

2.Take Code of Business Conduct for

Employees as the criterion

3.Take compliance incident handling

methods as the guidance

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LEAD strictly complies with the Data Security Law of the People's Republic of China,the Personal Information Protection Law of the People's Republic of China, and thelaws and regulations of other countries or regions to conduct business, includingthe EU General Data Protection Regulation (GDPR).LEAD takes "information security in collective responsibility; active defense andcomprehensive prevention, customer trust for sustainable management" as itsinformation security policy. We attach great importance to information securitymanagement, and have set up the Information Security Committee to be fullyresponsible for the company's information security management work. TheChairman of the Board of Directors serves as the director of the managementcommittee. Under it, there is an Information Security Department in charge ofdaily management which operates independently in accordance with the require-ments of the Company's information security strategy.The Information Security Department established ISO 27001 information securitymanagement system in 2017, adopting PDCA (Plan, Do, Check, Act) cycle man-agement method to comprehensively protect the Company's information assetsin terms of con?dentiality, integrity, availability and other dimensions. In early2023, LEAD was rated as high TISAX (Trusted Information Security AssessmentExchange) level.

Information Security Testing and Audit

47 information security training sessions, 100% online platform learning task for all staffInformation security examination for all staff: once a quarterPublicity: publish information security guidance announcements irregularly, and require all employees to post information securitymnemonics

Internal:

Internal audit of information security management system:

Once a quarter for business departments and subsidiaries inWuxi, and once a year for of?ces and subsidiaries outside WuxiSecurity testing: phishing email drill covering all staffDaily security audit: once per weekInformation security emergency response testing: once every six monthsCooperate with domestic leading security manufacturers to conduct networksecurity information and dynamic perception of LEAD

In order to protect the privacy security and personal information rights and interests of customers, employees and related parties, and tostandardize personal information processing activities, according to the Personal Information Protection Law of the People's Republic ofChina and the EU GDPR, and taking into account the actual situation of the Company's business, LEAD has formulated the“General DataProtection Management Norms and Procedures” to regulate the rights and ways of exercising rights of the data subjects, the ways oftransmitting the information to and from the data subjects, data management norms and audit processes, and complaint procedures,etc. In addition, during the reporting period, the Company engaged external institutions to carry out GDPR specialized training for keypositions, with a training pass rate of 100%.

Information Security System

Information Security Measures

Information Security Issue Feedback Channel

Privacy Protection

Business Information Protection

LEAD ISO 27001 InformationSecurity Management System

●Legality, justice and transparency●Purpose limitation

●Data minimization●Accuracy

●Storage limitation●Integrity and con?dentiality

Basic Principles:

Information Security Awareness Improvement

Phone: [phone]WeComE-mail: [e-mail]

●●●●●

●●●

External:

Third-party organization ISO 27001 audit: once every yearThird-party organization TISAX certi?cation: once every 3 yearsExternal penetration test: once every year●●●

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PRODUCTS& SERVICES

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LEAD has been recognized as a National Technology Innovation DemonstrationEnterprise by the Ministry of Industry and Information Technology. It is also a keyhigh-tech enterprise under the National Torch Program, a champion productenterprise, and a benchmark factory for industrial Internet in Jiangsu Province.We have established 7 R&D institutions at the provincial level or above, includingthe National Enterprise Technology Center, the National Postdoctoral ResearchWorkstation, the Jiangsu Province Enterprise Technology Center, the JiangsuProvince Lithium-ion Battery Equipment Engineering Center, the JiangsuProvince Capacitor Automation Equipment Engineering Technology Research Center, the Jiangsu Province Postdoctoral InnovationPractice Base, and the LEAD Industrial Design Center.In recent years, LEAD continues to increase investment in R&D, establishes collaborative design mechanism, and builds digital R&Dmanagement platform that runs through the entire business process to achieve modular design. In addition, it has built a knowledgemanagement system to further improve the enterprise R&D knowledge sharing and innovation capability. Meanwhile, LEAD also hasobtained CNAS lab certi?cation, and set up global research institutes in Wuxi, Shanghai, South China, and overseas regions to enhanceR&D capabilities.

Product R&D and Intellectual Property Management

Products and Services

R&D Platform

R&D Investment

R&D Personnel

4,9174,512

Qty. of R&D Personnel

Ratio of R&D personnel 30.03%Ratio of R&D personnel 25.71%

Education of R&D Personnel

Qty. of R&D Personnel

Age of R&D Personnel

20242023

2022

Operating revenue (unit: million RMB)R&D investment (unit: million RMB)

Ratio of R&D investment to operating revenue: 10.05%

Ratio of R&D investment to operating revenue:14.14%2024

2023

Ratio of R&D investment to operating revenue: 10.67%

Operating revenue (unit: million RMB)R&D investment (unit: million RMB)

Operating revenue (unit: million RMB)R&D investment (unit: million RMB)

1,400.3413,932.35

1,773.5716,628.36

BachelorDoctorMaster

1,675.8411,855.10

1,977

2,038

1,883

2,825

Below 3030~40 岁

20242023

3,382

2024

3,691

2023

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

LEAD always adheres to the concept of "innovation-driven development,” attaches great importance to the cooperation of industry,academia, and research institutions, and is committed to transforming cutting-edge scienti?c and technological achievements intopractical productivity, promoting technological progress in the industry. In order to enhance the Company's technological innovationcapability, LEAD has formulated the “Management Measures for the Industry-university-research Cooperation” to strengthen thecooperation between enterprise technology centers and domestic universities, foreign universities and research institutes. For thispurpose, LEAD has established a good mechanism for cooperation and technology exchange by signing mutual cooperation agreements,integrating technological resources, and jointly undertaking major projects to tackle key core technologies and enhance thecompetitiveness of the enterprise in the market.Through the industry-university-research cooperation, LEAD has formed the cooperation mechanism of industry, technology and talents,and has cooperated with Shanghai Jiao Tong University, Huazhong University of Science and Technology, Southeast University, JiangsuUniversity, Jiangnan University, etc. Through these cooperations, LEAD has tackled core technologies such as high-speed cell windingprocess, high-speed calendaring and de-folding process, high-speed and high-precision stacking process, and high-speed industrial CTinline inspection algorithms, undertaken or participated in 17 scienti?c and technological projects at provincial and ministerial level orabove, solved the problems of low automation level, process complexity, low production ef?ciency and low precision of Li-ion battery cellmanufacturing process, and enhanced the technological innovation capability of the Company.

ISO 56005 Certi?cate of Innovation andIntellectual Property Management CapabilityIntellectual Property Protection

Quality Management System Building

In order to improve the digitization and standardization of quality management, the Company actively establishes and improves the ISO9001 quality management system certi?cation. It also establishes an information technology and industrialization integratedmanagement system based on the requirements of GB/T23001-2017 Integration of informatization and industrialization managementsystems--Requirements and GB/T23006-2022 Integration of informatization and industrialization management systems--Requirementsfor enhanced capability grading. Furthermore, it establishes a measurement management system in accordance with the requirementsof GB/T19022-2003 Measurement management systems--Requirements for measurement processes and measuring equipment.

ISO 9001 Quality ManagementSystem Certi?cate

GB/T19022-2003 MeasurementManagement System Certi?cate

GB/T23001-2017 andGB/T23006-2022 Integration of Informatizationand Industrialization Management

System Certi?cate

Industry-university-research Cooperation

Intellectual Property Management

LEAD has formulated and released the relevant intellectual property rights management and control procedures and process documentsin accordance with the Enterprise Intellectual Property Management, so as to establish a standardized system of intellectual propertywork, conscientiously implement Outline of the National Intellectual Property Strategy, strengthen the guidance of intellectual propertywork, help the Company further strengthen the creation, application, management and protection of intellectual property rights, andimprove the independent innovation capability, competitive advantages and brand reputation of the Company. In 2024, LEAD obtained theInnovation and Intellectual Property Management Capability certi?cate (Level 3) based on the ISO 56005. This signi?es that the Companyimplements intellectual property management throughout the entire innovation project process, effectively supporting the achievementof innovation project goals and value realization at the project level, and promoting sustainable high-quality development.As of December 31st, 2024, LEAD and its fully-owned subsidiaries have obtained 2,830 authorized patents, including 446 inventionpatents, 2,304 utility model patents and 80 design patents, which broke themonopoly position of imported equipment from Japan and South Korea. Manyproducts of LEAD are classi?ed as high-tech products, ?rst major equipment orfamous brand products in Jiangsu Province.

LEAD has formulated various rules and regulations such as “Patent Application Process and Reward Rules,”“Intellectual Property ComplianceSystem,”“Patent Rights Protection Incentive System” to regulate the creation, management, application and protection of intellectual propertyrights, so as to internally enhance the importance of intellectual property rights within the Company, externally demonstrate the Company's ?rmdetermination and responsibility for the protection of intellectual property rights, and contribute to creating an industry business environment thatrespects intellectual property rights, encourages innovation and fair competition.In order to enhance employees' awareness of intellectual property protection, LEAD has provided multiple trainings to R&D personnel andinternal patent engineers for many times. LEAD have released intellectual propertyrelated training videos on our internal learning platform for allemployees to share and learn. In addition, for external agents, LEAD has set up non-competition mechanism when signing contracts withsuppliers to protect the Company's intellectual property rights from being infringed upon.LEAD regularly organizes or participates in intellectual property seminars, forums and other activities to strengthen communication andexchanges with players inside and outside the industry, and continuously improve its professionalism in intellectual property protection. Byparticipating in these activities, LEAD can not only keep abreast of the industry dynamics, but also learn from the excellent experience of otherenterprises to further optimize the Company's intellectual property protection system.

8 Design patents205 Invention patents314 Utility model patents2024527 New authorized patents in 2024

LEAD practices the quality concept of “Starting with Craftsmanship, Focusing on Improvement, Pursuing Excellence, and Aiming forPerfect Delivery,” establishes quality gate management mechanism throughout the entire lifecycle from supply chain management toafter-sales service, de?nes quality objectives and assessment mechanism, and clari?es quality responsibility in each process.Meanwhile, LEAD also has independently built a full process quality cloud management system, covering the whole process fromproduct design to site delivery, including R&D quality, design quality, supply chain quality, processing and assembly quality, andcommissioning service quality. Through a comprehensive evaluation system that is visual, intelligent, and traceable, each product canachieve 100% quality traceability and control. Meanwhile, the Company actively promotes the development of quality managementtalents, and strives to build a team of internal auditors with professional competence. With the assistance of this professional team, theCompany actively conducts internal audits, peer reviews, and maturity assessments, in order to diagnose and rectify the current state ofquality management in a timely manner.

Product Quality ManagementProduct Quality and Safety

"Double Cores and Four Drives" Quality Strategy

digitalization, standardization, modularization, collaborationFour Drives

culture and modeDouble Cores

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Group LevelSubsidiary LevelDepartment Level

Zerotolerance for

dishonestbehavior

Integrityincentive

Integrityafter-sales

service

Integrityeducation

Integritytraceability

Integrityinspection

Integrityevaluation

Quality and Integrity Building

LEAD has established the "Quality Red and Yellow Line Management Regulations,” and implemented management based on the "360quality integrity model”.That is, zero tolerance for dishonest behavior from the group level, subsidiary level, and department level; and 6dimensions, which are respectively integrity traceability, integrity after-sales service, integrity education, integrity inspection, integrityevaluation, and integrity incentive to regulate the behavior of all employees.

Quality and Safety BuildingThe Company implements the "Quality and Safety Assessment Management Regulations,” which adopts a "one veto" system for qualityand safety projects, responsible personnel for quality incidents, and responsible departments for quality incidents, ensuringcomprehensive quality and safety.

TypeOperation ProcessKey Management Points

SupplierQuality

R&DQualityProductionQualityServiceQuality

Supplier management coveringonboarding, tiered classi?cation,performance evaluation, exit andchange procedures, and incomingmaterial inspection

New supplier trial approval; supplier category capability quali?cation; majorchange approval; incoming material quality gates.

Equipment quality control andabnormality handling throughoutpost-delivery commissioning,maintenance, warranty, andpost-warranty periods

Quality control during assemblyand commissioning, and on-siteabnormality management

●Rapid handling and improvement for production site abnormalities●Quality gate maturity enhancement and process quality metrics improvement●Quick production-caused customer complaint resolution and correctionRapid analysis and handling of faulty components during off-site commissioningto enhance commissioning quality and promote quick equipment production andmaintenanceManagement of complex and key issues during off-site maintenance toaccelerate equipment acceptance and deliveryImprovement of customer satisfaction during maintenance service phase

●●●

Design and developmentDesign change rate reduction

One-veto Rejection Item

Veto on quality and safety project

Veto on personnel responsiblefor quality accidentsVeto on departments responsiblefor quality accidents

ContentsIdentify critical quality and safety performance indicators for products.Any non-conforming batch of equipment is subject to one-vote rejection.Personnel responsible for quality accidents caused by subjective factors aresubject to one-vote rejection, with role change or employment termination.Departments primarily responsible for quality accidents are subject to one-voterejection, with no excellence awards or commendations during the speci?edpenalty period.

LEAD 360 Quality Integrity Model

Quality Management System Maturity AssessmentLEAD has established a comprehensive quality management system that covers the entire lifecycle of marketing, R&D, procurement,manufacturing, logistics, and after-sales, along with a three-tier quality management department for the LEAD group, subsidiarycompanies, and various departments and a Chief Quality Of?cer system.The Company has developed the ?rst set of quality management system maturity assessment standards in the non-standard automationequipment industry. By conducting multiple rounds of evaluation activities between the group and subsidiaries, we have developed a setof quality management system evaluation criteria and scoring models suitable for the Company's business and meeting departmentalneeds. This can effectively quantify the maturity of the Company's quality management system, thus driving the continuousimprovement of the Company and even the non-standard automation equipment industry's quality management.

The Company has established a rigorous product inspection procedure to ensure that the incoming material quality meets the standards.Inspectors inspect incoming materials and determine the quality according to the inspection standards. After quali?ed products arepackaged and restored, they are recorded in the warehouse management system and transferred to the warehouse for future use.Unquali?ed products are recorded in the "Unquali?ed Product Disposal Form,” go through the return process, and are reported in thewarehouse management system. Within the Component Quality Control Center, the review personnel conduct defect reviews onnon-conformities, and the review results are communicated to suppliers by the Supplier Quality Engineering Center to drive reasonablerework, temporary containment measures, and long-term improvement. For critical components, high-precision parts, and contentiousissues regarding new parts, the joint review is conducted by the R&D teams, Process teams, as well as the Supplier Quality EngineeringCenter to determine the inspection results and ensure the reliability and consistency of product quality.

Product Inspection Procedure

Product Safety ManagementSafety is the top priority for the Company in providing products and services to customers. The Company has established a comprehensiveproduct safety and quality standard speci?cation, which covers the entire process from product design, product testing to product usage. Wedesign and deliver products that comply with domestic and international standards, including national machinery safety regulations, the EUMachinery Directives, Electromagnetic Compatibility Directives, Explosion-proof Directives, and US Electrical Speci?cations, in accordancewith CE, UL, and other certi?cation requirements.When it comes to product design, the Company integrates safety into every structural and equipment development process. It incorporatesdesign concepts such as safety interlocks, safety circuits, safety light curtains, and E-stop buttons and applies comprehensive simulationtechnologies such as ?uid mechanics and thermodynamics to ensure safety at the product development level. In terms of product testing,the Company employs various levels and multi-dimensional testing methods, such as temperature testing, gas concentration testing, andpressure testing, to achieve real-time inline monitoring and ensure the safety of personnel. In terms of product usage, the Company not onlyequips products with safety warning labels, E-stop labels, and safety protection labels, but also provides customers with safety training thatcovers all personnel and a comprehensive safety maintenance and production manual.During the reporting period, the Company did not experience any product recalls required by relevant laws and regulations or governmentauthorities. There were no situations where sold products needed to be recalled due to safety and health issues. There were no signi?cantproduct quality disputes.

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Diversi?ed Service Support

Environment-friendly ProductsLEAD is committed to helping downstream customers reduce pollution, energy consumption and carbon emissions during the use ofmachine by providing environmentally friendly products.In the part and raw material procurement stage, we controlled toxic and harmful substances according to China's Administrative Measure onRestricted Use of Hazardous Substances in Electrical and Electronic Products, and EU and international directives such as the Restriction ofHazardous Substances (RoHS) and the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH). In the design andmanufacturing stage, we adopt functions and modules such as waste heat utilization, dry air recycling, microenvironment control,energy-saving motor, electrical intelligent control, compressed air management, intelligent management of fans and lighting, and energyconsumption monitoring and forecasting, which greatly reduce the energy consumption during the use of machine. In addition, we alsoconsider maintainability design and meet the requirements of EU mechanical directives to optimize the maintenance and repair ofcomponents, improve the durability of machine, and extend the service life of machine.

Management SystemLEAD has successively formulated and implemented relevant systems and procedures such as “Guidelines for Optimization ofCustomer-Oriented Processes,”“After-sales Service Management Procedures,”“Customer Abnormality Handling Procedure,”and“Management of Customer Information Security Numbers,” etc. In addition, LEAD has further formulated the Survey Procedure forCustomer Satisfaction and the Fast Response Procedure of Customer Major Quality Issues to improve service management and respond tocustomers' needs.

Service ProcessThe Company has formulated and implemented the “External Service Execution Process,”“Service Project Completion AcceptanceProcess,”“Customer Training Process,”“Service Improvement Process,” and other after-sales related business processes, aiming toenhance the standardization and systematization of after-sales service and improve service quality to provide better service to customers.Service FacilitiesThe Company has implemented a digital and intelligent management system guided by business and information architecture, with a focuson customer needs. This was achieved through LEAD self-developed data platform and Customer Relationship Management (CRM) systemthat integrates the Enterprise Resource Planning (ERP) system, Manufacturing Execution System (MES) system, and Supplier RelationshipManagement (SRM) system to provide end-to-end feedback and handling of customer demands, ensuring timely satisfaction of marketneeds.Service TeamThe Company has established a professional after-sales service team, which covers multiple departments including product R&D, projectmanagement, planning management, customer training, as well as assembly and commissioning teams. This enables us to respond quicklyto customer needs, solve customer problems, and complete project cycles, greatly enhancing our customer service capabilities.

Customer Service SystemLEAD adheres to the core value of “Customer-Centered, Creating Value for Customers,” continuously strengthens the pre-sale, sale andafter-sale services, and builds a customer service system with customer needs as the core of the whole value chain.

Making full use of

waste heat

Fully control the utilization of waste

heat in each process phase during the

plant design stage

Dry air recovery andrecycling

Recover exhausted air from themachine, remove impurities in the dryair, then send the dry air to theworkshop for reuse

Fine control of machinemicroenvironmentEffectively control humidity and dustmicroenvironment to reduce energyconsumption and operation cost

Motor energy-saving

technology and selection

Use the IE4 energy-saving motor

compliant with national standard to

effectively realize energy saving of

machine

Electrical intelligentcontrolIntelligent control of electricalmachine to reduce powerconsumption in each process phase

Energy-saving fan and

lighting

Integrate the energy-saving

capabilities of fans, lighting and other

points to jointly reduce the energy

consumption of the whole line

Online energy consumptionmonitoringReal-time monitoring and analysis ofbig data for regulation andimprovement

Fine management ofcompressed airIntelligent monitoring of speci?cworking conditions of machine and ?necontrol of compressed air pressure and?ow, to achieve effective energy saving

Customer Service Center After-sales SolutionSmart operation andmaintenance

Remote supportSmart maintenanceTransparent informationEf?cient operations

Guardianservices

Genuine partsQuality assurance

Expert serviceTraining support

SmartfactorySmart factoryDigital operations

Data drivenOperation excellence

Quickchangeover

Technology upgrade

Performanceenhancement

Customer-centric, Professional expertise, Dedicated service

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In order to ensure that the satisfaction survey method suits the Company, LEAD conducts annual management review regularly everyyear to timely improve and adjust the survey methods and contents, organizes monthly analysis and summary, and publishes customersatisfaction monthly report to make continuous improvements.In order to timely and ef?ciently receive, respond to and solve customer complaints, LEAD comprehensively promoted the constructionof real-time online customer service management system. Combined with LEAD's global 400 service hotline and on-site customercomplaints system, it provides customers with 24/7 real-time online customer service worldwide. In response to customer needs, itaims to resolve issues online within 2 hours and on-site within 8 hours. Additionally, the feedback mechanism has been upgraded torespond to customer needs through closed-loop management. During the reporting period, the complaint closed-loop rate of LEAD'scustomer service system is 100%.

In terms of customer satisfaction surveys, in 2024, the Company has improved the process of customer follow-up on the service side,standardized the follow-up rules and corresponding management system, and developed standardized questionnaires for differentservice product categories. We have actively followed up the operational status of equipment and customer needs through an intelligentplatform, promptly and effectively addressed abnormal operation and customer needs, and urged relevant departments to improvecustomer satisfaction.

Principle of minimization: Minimize the disclosure of data based on the responsibilities of each business department, protect-ing customer privacy and business data security.

Permission hierarchical control: Assign access permissions based on role responsibilities, with core data requiring special

application and being limited to speci?c positions; regularly review personnel permissions to identify and mitigate risks.Document encryption: Equipped with a document encryption system that encrypts all documents to ensure the con?dentialityof business content.Employee training and audit: Conduct information security training for new employees during onboarding, and arrangeannual/semi-annual information security training in departments with a 100% pass rate.

The Company upholds responsible market marketing and product promotion, engages in sales and marketing practices that comply withlaws, regulations, social norms, and ethical standards, and promotes the establishment of a marketing responsibility system that coverscustomer sales, marketing, product promotion, and after-sales service. Moreover, the Company upholds a commitment to compliantmarketing and instills compliance throughout marketing and product promotion. All advertisements and marketing activities undergointernal reviews to ensure accuracy and compliance.We continuously strengthen the compliance capability building for marketing-related teams and personnel, eliminating allnon-compliant marketing activities and unfair competition behaviors. We also encourage our subsidiaries, joint ventures, partners, andother stakeholders to actively practice responsible marketing.

LEAD Feedback PlatformOperation GuideCustomer-centric approach toensure rapid and effectiveescalation and closed-loophandling of critical ?eld issuesStep 1:

Scan QR code to download

Step 2:

Log in with registeredmobile number

Failure frequency:

Select current failure frequency from dropdownProblem description:

Provide detailed information including failureoccurrence time, background, and speci?crequirements

Progress tracking:

Check the handling progress of reported issuesIssue feedback:

Fill in feedback information

Customer service hotline

Equipment status:

Select current operation status from dropdown

Customer Satisfaction ManagementCustomer Privacy and Data Security

Responsible Marketing

●

●

●

●

For inquiries, please call LEAD400 customer service hotline.

Equipment code:

Enter SCJH-pre?xed number on nameplateto auto-generate equipment information

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Working Together to Promote Industry Development

From April 27th to 29th, 2024, the 16th China InternationalBattery Fair (CIBF) are held in Chongqing. As aworld-leading new energy intelligent manufacturingsolution provider, LEAD unveiled its brand-new intelligentmanufacturing solution for Li-ion battery making, Li-ionbattery formation and capacity grading, vision/?uid/testing,smart automotive production line, smart logistics, andintelligent manufacturing digital factory system at the S1LEAD Pavilion. We also showcased 16 new energyintelligent manufacturing technologies and processes,reshaping the future landscape of the energy industry anddriving the global manufacturing innovation.

In order to promote the high-quality development of the new energy equipment manufacturing industry, LEAD have actively participatedin various industry exchanges, contributing its intelligence and strength as a pioneer. Over the past year, the Company has attendedmultiple industry association communication activities. The industry associations that LEAD joined include: China Industrial Associationof Power Sources (CIAPS), CIAPS Power Battery Branch, CIAPS Energy Storage Battery Branch, China Photovoltaic Industry Association,China Association for the Promotion of Industrial Development, Perovskite Battery Industry Association, and Jiangsu Power and EnergyStorage Battery Industry Innovation Alliance (as the vice chairman unit).On June 13th, 2024, the 17th International Photovoltaic Power Generation and Smart Energy Conference & Exhibition was opened in Shanghai.As a global leader in the next generation of photovoltaic technology, LEAD debuted its cutting-edge photovoltaic cells and intelligentmanufacturing solutions and showcased its comprehensive solutions and innovative technological achievements in photovoltaics, energystorage, hydrogen energy, and more, leading the intelligent way towards a green future.

From June 18th to 20th, 2024, the world-class battery event, theBattery Show Europe, was held in Stuttgart, Germany. As aworld-leading new energy intelligent manufacturing solutionprovider, LEAD unveiled a groundbreaking new intelligentmanufacturing solution that covers the entire value chain andlifecycle. With the release of 12 new technologies and processesfor intelligent manufacturing of new energy, it showcased LEAD'spioneering technological strength and "carbon-neutralintelligent manufacturing” philosophy, displaying China'smanufacturing prowess on the international stage.

From October 3rd to October 10th, 2024, the prestigious BatteryShow, showcasing the world's top batteries and electric vehicles,was held in New Delhi, India and Detroit, USA. LEAD, aworld-leading new energy intelligent manufacturing solutionprovider, showcased its breakthrough production ef?ciency,innovative and ef?cient process capabilities, and cutting-edgeintelligent manufacturing technology with the "entire value chain +entire life cycle" intelligent manufacturing solution, bringing thenew concept of "ultimate intelligent manufacturing" to the SouthAsia and North America.

Industry Exchange

Industry Participation

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SUSTAINABLESUPPLY CHAINS

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Quality Risk Prevention and Control

Ensure that components and quality meet the standards, reducing delivery delays or cost losses caused by quality issues.Delivery Risk ManagementImprove the on-time delivery rate of suppliers to ensure stable execution of production plans.

Financial Risk MitigationOptimize payment methods and credit management to maintain the Company's liquidity and business reputation.Supplier Sustainable DevelopmentPromote transparency and compliance in supplier cooperation, and build a long-term and stable supply ecosystem.

Sustainable Supply Chains

The core objective of supply chain management of LEAD is to provide support for sustainable development by continuously optimizingprocurement strategies, strengthening supplier management, enhancing supply chain collaboration, and improving risk management. Tothis end, the Company reinforces supply chain management in the following respects:

Onboarding Screening MechanismLEAD is committed to providing suppliers with a platform for fair competition. When selecting suppliers, LEAD conducts an overallassessment of supplier delivery ability, cost ability, technical ability, quality, after-sales service, corporate social responsibility, and riskself-control ability through the “Supplier Quali?cation Review Form” and the “Supplier Operation Environment Review Form” and inaccordance with the “Procurement Management System,” and the “Supplier Management Procedure.”Dynamic Assessment and GradingLEAD evaluates suppliers in terms of quality, delivery, cost, service, and other metrics in a monthly basis. According to the evaluationresults, main suppliers are divided into four categories: excellent suppliers, quali?ed suppliers, limited suppliers and unquali?edsuppliers, and relevant supporting measures are taken according to these categories. The Company conducts annual audits of itssuppliers, in which procurement and technical personnel jointly score and evaluate the suppliers based on an audit form so as to checkthe operating environment, process, and process quality of suppliers.

Supplier Lifecycle Management

Supply Chain Management System

Risk Prevention and Response Mechanism

Digital Collaborative Management

Quality Risk ControlExecute “incoming quality control" strictly, immediatelyreturn unquali?ed components and raw materials anddemand suppliers to rectify.

We have built a Supply Chain Management (SCM) platform to achieve end-to-end online processes from demand planning to ordertracking, enhancing information transparency and communication ef?ciency. At the same time, historical data accumulation has helpedto optimize procurement strategies to reduce cost risks caused by market ?uctuations.

Market Risk Management

Establish a monitoring system for component andraw material market information, and track price?uctuations and technological iterations in real time,ensuring the timeliness of procurement decisions.

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In March 2024, the 2024 LEAD Global Supplier Conference with the theme of “Address the hardships together, grow together" wassuccessfully held, where government leaders at all levels and representatives of more than 200 suppliers from home and abroad gatheredto seek a new pattern of future development.

LEAD is committed to creating a responsible supply chain, extending the concept and requirements of social responsibility to the supplychain, communicating with suppliers on labor rights, business ethics, health and safety, and environmental protection, continuouslydeepening the sustainability management of suppliers, and working together with suppliers to develop and establish a sustainabledevelopment system.

LEAD is committed to the responsible procurement of mineral raw materials such as tin, tantalum, tungsten, gold, cobalt, etc. that areused in products and during production, and takes responsible mineral management as an integral part of the supply chain sustainablemanagement system, and integrates it into the supplier access and supervision and audit process.In accordance with the relevant regulations and survey templates of the Responsible Minerals Initiative (RMI), the Organization for Econom-ic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals and the Chinese Due DiligenceGuidelines for Responsible Mineral Supply Chains, LEAD has formulated the “Due Diligence Guidance for Responsible Supply Chains ofMinerals and the Supplier Con?ict Minerals Self-Assessment Form." Suppliers are required not to procure con?ict minerals and ensurethat products do not directly or indirectly fund armed con?icts or other inhumane acts. Suppliers involved in the procurement of relevantmineral raw materials are also required to provide their Con?ict Minerals Reporting Template (CMRT) reports to LEAD.

Responsible Mineral Management

In order to strengthen supply chain business ethics management and integrity construction, the Company has formulated the “Code ofConduct for Integrity in Procurement Business” and other relevant systems, and required suppliers to sign the “Supplier Anti-commer-cial Bribery Declaration.” LEAD regularly pushed integrity training videos and integrity letters to all suppliers during the period of highincidence of fraud such as holidays. In addition, LEAD delivers its code of business conduct to participating suppliers through the annualsupplier conference to build a supply chain culture of fair competition, mutual trust and win-win situation. We organized two suppliertraining sessions, and pushed four integrity letters to all suppliers in 2024.

Construction of Supplier Integrity Culture

Responsible Procurement Management

Control of Restricted SubstancesLEAD has formulated a list of restricted substances and its control process, and required suppliers to sign the “Statement of Require-ments for Restricted Substances and Candidate Substances” and meet RoHS and REACH directives. Suppliers of chemicals, materialsand parts are required to provide test reports on environmentally hazardous substances for products that have an impact on the environ-ment, and to sign material environmental protection agreements when necessary. The chemical suppliers shall also provide informationon the chemical properties of corresponding products and control the products during transportation and handling.

Supplier Code of Conduct

LEAD attaches great importance to responsible management of stakeholders and has formulated the “Supplier Sustainability Commit-ment,” which requires suppliers to comply with relevant laws and regulations and the “Supplier Sustainability Code of Conduct” forsustainable development in terms of labor and human rights, health, safety and environment, and business ethics. Suppliers are alsorequired to formulate relevant policy statements that de?ne their commitments to due diligence and continual improvement, obtain theendorsement of the senior management,and make sure the policy statementsare communicated to all employees through accessiblechannels in a language they can understand. In addition, LEAD encourages suppliers to communicate to their higher tier suppliers theseapplicable requirements. The areas of focus include:

Labor and Human RightsForced labor, child labor, working conditions,health and safety, discrimination and harass-ment, freedom of association and collectivebargaining

EnvironmentGreenhouse gas emissions and energy con-sumption, pollution prevention and wastemanagement, resource ef?ciency, biodiversity

Business EthicsAnti-corruption and con?ictof interest, anti-competition

Supplier Quality Management and Full Empowerment

Global Supplier Conference

Supplier Quality System BuildingTwo-way Training and Knowledge SharingForward empowerment of suppliers: Train suppliers to master the speci?c standards andthe quality management tools of the non-standard automation equipment industry, andcommunicate LEAD supplier quality management requirements. The main courses include"LEAD Supplier Quality Management Process Requirements,” "Full Process QualityRequirements for Components,” "History of Quality Management & Quality Awareness,”"Total Quality Management (TQM) Practice - Quality Management and Quality Improve-ment,” "Machining Programming,” "Interpretation of Outsourced Processing ProductDrawings,” and "Inspection Skills Training,” etc. In 2024, the Company conducted a total of10 sessions of supplier empowerment training, focusing on over 40 courses related toquality improvement and professional skill and knowledge. The training was attended by atotal of 958 participants from the supplier management team.

Process Assistance and Capacity Enhancement

LEAD has launched a supply quality improvement program speci?cally for vulnerable suppliers, providing on-site guidance to help themoptimize their processes, such as ?xture design and inspection method upgrading. Additionally, the Company has promoted automationtransformation by introducing visual inspection equipment, thereby assisting suppliers in enhancing production ef?ciency and productquality consistency.Technical Review and Joint DevelopmentLEAD has organized cross-department technical review meetings to assess the feasibility of alternative proposals from suppliers, such asmaterial substitution and process simpli?cation. In addition, we have involved strategic suppliers in early joint development, such asco-designing of modular components, in order to shorten the lead time of non-standard projects.

Reverse learning from suppliers: Collect supplier process innovation cases (e.g., new processing methods), supplier component installa-

tion guidance, etc. to promote internal technological upgrading.

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LABOR &HUMAN RIGHTS

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According to the survey feedback, various departments actively worked out improvement action plans and put the improvementresponsibility on the relevant responsible persons. LEAD will continue to promote the implementation of those plans and best practices tofurther enhance the workplace experience of employees.

Driving Factors

Labor and Human Rights

A10. I am willing to earn higher salary through better performance.A9. The performance evaluation results can objectively and truthfully re?ect my work performance.A8. The performance evaluation system is clear and reasonable.A7. My overall salary level is more competitive compared to that of other companies.A6. My income and efforts are directly proportional.A5. The existing organization, processes, and systems enable me to work ef?ciently.A4. I can ?nd a relative balance between work and life.A3. I am satis?ed with my work hours and overtime days.A2. I work here without receiving any discrimination or differential treatment.A1. The working environment I am in is safe, healthy, and comfortable.

B10. I can give my opinions to the relevant departments or superiors without any worries.B9. The communication and complaint channels within the Company are clear, and I know who to turn to when I have problems.B8. I have some good friends in the Company.B7. My coworkers and I work well together on shared tasks.B6. My teammates are highly motivated, cohesive, and committed to achieving their goals.B5. I feel well respected at work and I am able to work in a happy mood.B4. I can be trusted and reasonably empowered to deal with problems at work.B3. I understand and am satis?ed with the management style of my immediate supervisor.B2. My immediate supervisor is willing to help me solve problems and is very helpful to me.B1. My immediate supervisor has communicated with me in a timely and adequate manner about my job achievement or career development within the last 1 year.

D3. My work and achievements are recognized and motivated by the Company.D2. I have a clear understanding of the team goals, and I am willing to make extra efforts as a team member.D1. I agree with the core values of the Company and integrate them into the code of conduct and work.

C4. I am very clear about my career path in the Company.C3. The Company's skill level examination certi?cation requirements or quali?cation/promotion standard requirements are reasonable and motivating.C2. I am satis?ed with my skill improvement and growth over the past year.C1. The Company provides me with the training and resources I need to do my job.

VALUERECOGNITIONLEARNING ANDDEVELOPMENTWORKINGRELATIONSHIP

WORKING CONDITIONS

RECOGNITION ANDMOTIVATIONCORPORATE CULTURECAREER DEVELOPMENTPROMOTION STANDARDSKILL IMPROVEMENTTRAINING RESOURCEEMPLOYEE COMMUNICATIONCOLLEAGUE RELATIONSHIPWORK ATMOSPHEREWORK AUTHORIZATIONIMMEDIATE SUPERVISORPERFORMANCE EVALUATIONCOMPENSATION AND BENEFITSWORK FLOWWORKING HOURSWORKING ENVIRONMENT

LEAD solemnly declares that it always observes the Labor Law of the People's Republic of China and other domestic laws and regulations, andlocal laws and regulations applied to foreign operation areas, and that it always abides by internationally recognized labor and human rightsstandards, including but not limited to the UN Universal Declaration of Human Rights, the Responsible Business Alliance (RBA) Code of Conduct,the core conventions of the International Labor Organization and other relevant international treaties and norms. We are committed to therespect and protection of labor and human rights in all our operations, as well as in our cooperative relationships with suppliers and part-ners.Our labor and human rights protection policy covers a wide range, not only paying attention to the rights and interests of employees withinthe Company, but also actively promoting suppliers and partners to comply with labor and human rights standards. We ?rmly oppose anyform of human traf?cking and forced labor, and adopt a zero-tolerance attitude towards this. Once it is found, we will take immediate actionand report it to relevant departments. We promise not to employ child labor and strictly abide by national and international laws and regula-tions on child labor. We respect employees' freedom of association and right of collective bargaining, provide employees with diversi?ed com-munication channels, and encourage employees to express their opinions and demands through legal channels.We adhere to the principle of equal pay for equal work, and ensure that employees can receive fair and reasonable salary and bene?ts in lightof their job value, experience, expertise, and performance. We ?rmly oppose any form of discrimination and harassment, including sexism,racial discrimination and sexual harassment, and have established a complete complaint handling mechanism to ensure that employees'rights and interests are safeguarded in a timely and effective manner.

Statement on Labor and Human RightsProtection of Employee Rights and Interests

Employee Communication MechanismLEAD attaches great importance to internal communication with employees and is committed to building an open, transparent and ef?cientcommunication environment. We have established diversi?ed communication channels and actively built communication bridges between theCompany, managers and every employee, including regular staff meetings, hierarchical morning meetings and regular meetings, face-to-facewith executives, employee voice suggestion boxes, employee engagement survey, etc., in order to help the Company better understand theneeds and expectations of employees to formulate policies and measures that are more in line with the interests of employees.

Collection of opinions in 202448,000

+

In order to ensure that employees' rights and interests are fully protected, LEAD has established a comprehensive human rights due diligenceprocess. This process covers all employees, and also suppliers and partners to ensure that they comply with labor and human rights stan-dards in the process of cooperation. For example, we ensure compliance with employment age requirements by leveraging both manual regis-tration and system identi?cation technologies to verify and track employee identity documents, and establishing a full-cycle monitoringsystem for "onboarding-employment-departure.”Our human rights concerns include, but are not limited to, working conditions, health and safety, pay and bene?ts, working hours, anti-dis-crimination and anti-harassment. To solve these problems, we have formulated a series of relevant policies, such as “Employee Handbook,”“Salary and Bene?ts Management System,”“Safety Risk Hierarchical Management and Control System.” These policies aim to provideemployees with a safe, fair and healthy working environment.In the process of human rights due diligence, we pay special attention to those who may face higher risks, such as new employees and foreignemployees. We provide them with necessary training and support to ensure that they can adapt quickly to the working environment andunderstand their rights and interests and how to safeguard them.When human rights problems are found, we take active mitigation and remedial measures.

Human Rights Due Diligence Survey Process

● Immediately stop the violation of employees' rights and interests, and seriously deal with the responsible.●Provide necessary assistance and support to employees to help them recover their rights and interests.● Analyze the root causes of the problems and formulate improvement measures to prevent similar problems from happening again.

At the same time, we have established an ef?cient feedback mechanism. By appointing specially-assigned person to follow up the problemsand suggestions put forward by employees and provide feedbacks in time, the Company not only enhances the trust of employees, but alsoimproves the operational ef?ciency.In addition, we ensure that the Company's policies and systems, caring services, warm reminders are communicated to each employee in atimely, accurate and ef?cient manner through online channels such as WeCom announcements, WeChat of?cial account, columns, pushnoti?cations, as well as of?ine channels such as advertising machines, roll up banners, cultural walls, bulletin boards and other channels.CI Suggestion Platform for All EmployeesIn order to enhance employees' participation in enterprise management and sense of owner-ship, LEAD collects and adopts employees' suggestions on the sustainable development of theCompany through Continuous Improvement (CI) suggestion platform, with an adoption rate ofabout 81.2%.

Engagement Survey

We actively listen to employees' voices, understand employees' demands, respond to employees' concerns, conduct regular internal evalua-tions and implement targeted improvement measures to enhance employees' satisfaction and engagement.

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LEAD adheres to the talent concept of "employee-oriented, helping employees to give full play to their talents and making the best use ofemployee’s talents.” The Company strictly abides by the Labor Law of the People's Republic of China, the Labor Contract Law of the People'sRepublic of China, the Law of the People's Republic of China on the Protection of Women's Rights and Interests, the Law of the People’s Republicof China on Work Safety, the Law of the People's Republic of China on the Prevention and Control of Occupational Disease, and other laws andregulations, and implements national regulations and standards in labor safety and health system and social security. The Companyformulates and continuously improves its internal system norms to provide an equal and open growth platform for talents of differentgenders, ages, nationalities and races, as well as create a homeland where everyone can display their talents and work together. LEADrespects and safeguards the legitimate rights and interests of employees, insists on equal employment and equal pay for equal work, andopposes any form of discrimination. As of the end of the reporting period, LEAD had a total of 15,025 employees, of which 2,200 werefemales, accounting for 14.64%. In addition, the Company has more than 500 employees from Zhuang, Manchu, Tujia, Miao, Korean, Hui,and other ethnic groups, as well as foreign employees from the United States, Japan, Germany, France, South Korea, India, Sweden,Malaysia, New Zealand, Pakistan, and other different countries.

Labor DisputesAttaching great importance to the settlement of labor disputes and adhering to the principle of putting employees ?rst, LEAD builds afair, impartial and ef?cient labor dispute handling mechanism to effectively protect the legitimate rights and interests of employees andpromote the stable and harmonious development of the Company.

Preliminary mediation

After receiving the complaint, we will arrange special personnel to conduct preliminary investigation to understand the details of thedispute and the claims of both parties. On this basis, we will try to mediate the two parties to reach a settlement.Professional arbitration

If the two parties fail to reach an agreement during the preliminary mediation, we will submit the dispute to a professional arbitrationinstitution for arbitration. The arbitration institution will make a fair and equitable ruling on disputes in accordance with relevant laws,regulations and company policies.

Legal litigationIn speci?c circumstances, if the arbitration outcome fails to meet both parties' requirements, we encourage employees to resolvedisputes through legal means. We will actively assist employees in legal proceedings to ensure that their legitimate rights and interestsare protected by law.

Labor Dispute Settlement Mechanism

Employee Diversity

Employee Recruitment

GenderAgeEducation Level

Male 85.36%Female 14.64%

30 years old and under

45.66%

31~50 years old

53.60%

Above 50 years old

0.73%

Master degree and above

6.61%

Undergraduate degree

41.43%

College degree

21.18%

Below college degree

30.78%

Labor Dispute Complaint Mechanism

The Company adopts an open approach for communication, treats every employee with equalityand sincerity. Employees are encouraged to provide opinions and suggestions and seek solu-tions through the of?cial and formal communication platform and channels.

Complaint Policy

Unreasonable behavior of employees and superiors that harms the interests of the Companyand employees, or behavior that violates the Company's management system or national lawsand regulations.

Online channelOf?ine channelComplaintChannel

Complaint ScopePrinciples of HandlingCon?dentiality, fairness, timeliness, and accuracy.

Email, WeCom - Mediation Committee Feedback Assistant, Mediation Committee HotlineImmediate superior, HRBP, employee seminar, Mediation Committee of?ce

LEAD takes "fairness, justice and meritocracy" as the employment standard, and adheres to the strategy of mainly cultivating talentsinternally and complementarily recruiting for scarce positions externally. Combined with annual personnel planning, it continuouslyexpands talent acquisition channels through internal selection and competition, social recruitment, campus recruitment, headhuntingservices, and other forms to meet the rapid development needs of the Company. In 2024, the Company carried out organizational optimiza-tion and talent structure adjustment to better adapt to the demands of international business development. It actively introducedhigh-quality talents, including international talents, individuals with master's degrees or above, and senior managers. The Company alsostrictly adheres to fairness and justice, striving to achieve a balance between organizational optimization and employee rights andinterests.The Company attaches importance to school-enterprise cooperation, continuously strengthens the cooperative relationship with China’sintelligent equipment professional colleges, and enhances the brand in?uence of the Company through school-enterprise cooperationbrand projects to attract and reserve talents in advance. In 2024, LEAD carried out more than 30 school-enterprise activities and 70 jobfairs in 31 universities across 23 cities, and deepened the close cooperation between schools and enterprises through visits to the Compa-ny, summer internships, school-enterprise classes, campus recruitment presentations and other activities. LEAD has also set up "WangYanqing Scholarship" in six key universities such as Harbin Institute of Technology to provide ?nancial support and encouragement forpotential students.6869

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Performance AppraisalLEAD has established the strategic performance management system, encom-passing organizational performance and individual performance. Based on thedual model of balanced scorecard and personal business commitment, theCompany has established a penetrating breakdown mechanism from strategicgoals to department/position goals, forming a closed-loop management pro-cess through "annual goal setting, monthly/quarterly tracking, mid-yearassessment feedback and adjustment, and year-end assessment summary."With employees being guided and driven by goals, we fully unleash the potentialof employees, achieving a synergistic win-win for both individuals and the Com-pany. The Company places great emphasis on empowering leaders and motivat-ing high-performance employees as well as strengthening the talent attractionand retention capabilities through effective performance incentive and empow-erment mechanisms. At the same time, we have continuously optimized theperformance process and system to ensure that the performance managementsystem is upgraded for sustainable development, driving the continuousimprovement of individual and company overall performance, and building anef?cient and high-performing team.

Dual-channel Career SystemGuided by the open talent development concept that em-phasizes both upward and downward mobility, as well asinternal and external opportunities, LEAD has establisheda professional team to support employees in their careerdevelopment planning, which has enabled a multi-dimen-sional approach to development and training, a goal-ori-ented approach to management and supervision, as wellas a concrete performance evaluation. By focusing on keyprocesses such as talent reserves, talent inventory, talentpipeline development, internal talent selection andappointment, we have established comprehensive careerdevelopment pathways for employees.

Employee Development

ManagementEmpowerment

Pathway

Professional

DepthPathway

Grassroots Employees

Vice-presidentDirectorManagerSupervisor

Industry-level expertCompany-level expertSection leaderTechnical contributor

P

er

fo

rmance

communication

Application ofperformance effect

Performanceprocess management

Performancegoal setting

Performanceevaluation

PerformanceManagementConcept

In order to accelerate the implementation of LEAD's globalization development strategy and strengthen the building of learning organi-zation, LEAD has established a comprehensive employee training system and formulated a series of training plans including but notlimited to new employee orientation, general ability and professional ability building, team management and leadership building, etc.Besides, in line with the digital strategy, we have been constantly improving the online learning platform, LEAD e-Learning, for employ-ees, achieving a comprehensive upgrade of the training system. The "online + of?ine" learning mode has enabled employees to partici-pate in training in a more convenient manner with greater enthusiasm. In 2024, LEAD conducted 1,819 training sessions covering allemployees. The Company has conducted over 170 new courses in 2024. The user engagement rate on the LEAD e-Learning platformreached 96%, with an average learning time exceeding 40 hours and the total number of learners surpassing 800,000. Various themeactivities such as learning month and open classes were organized to fully create a learning-oriented organization.

LEAD Training SystemThink Big, Start Small, Act Fast

Leadership improvement: According to the capabilityrequirements of different levels in the capabilitymodel, the management post talent cultivation projectis designed in layers and grades, giving considerationto "present" and "future".Professional capability improvement: Work withvarious professional sequences to build a professionalcapability training system and cultivate professionaltalents.

General capability: Ef?cient meetings, communi-cation, speeches and business etiquetteIntegration of new employees: School recruitmentand social recruitment

Publicity of corporate strategy, corporate cultureand values

Leadershipcenter

Professional capability center

Generalcapability center

Talent Development and Promotion SystemTalent Training System

Multi-channel IncentivesIn order to fully mobilize the enthusiasm of the core team members, the Company has established short-term, medium-term andlong-term incentive mechanisms to attract and retain outstanding talents through various channels such as salary adjustment, year-endbonus, outstanding recognition and equity incentive. Furthermore, the Company continues to improve the long-term incentive mecha-nism. Since going public, it has successively implemented six phases of equity incentive plans, covering directors, senior executives,middle-level managers, and core technical (business) personnel.

In order to stimulate the enthusiasm and initiative of employees, the Company has set up a dual-track system for technical and manageri-al advancement, providing suitable development opportunities for both technical and managerial talents, and fully leveraging theirstrengths and expertise. In addition, the Company has built an internal talent pool and the talent rotation mechanism. By expanding theinternal talent ?ow channels, and updating internal recruitment policies, the internal talent pool is fully mobilized. During the reportingperiod, nearly a hundred positions were successfully matched through internal competition.

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

Committed to the mission of "seeking well-being for employees” and the development concept of “people ?rst,” LEAD has beenupgrading the compensation and bene?ts policies and building a diversi?ed, ?exible, comprehensive, and competitive employee bene?tsecosystem to enhance employees' sense of belonging and happiness and to strengthen talent attraction and retention.

LEAD states that during the reporting period, the salaries of all employees who have signed labor contracts or service contracts with the Company arein compliance with the local wage rate set by the respective local authorities allowing a full-time worker to cover basic needs. All employees of theCompany and its subsidiaries, including subsidiaries in Wuxi, Shanghai, Zhuhai, etc., are covered by the statement. The Company has always adhered tolong-term and sustainable development and sought well-being for employees. Therefore, we ensure that the compensation of each employee can meettheir basic needs.The Company, in compliance with laws and regulations, provides social security and housing provident fund for every employee upon their onboarding.Furthermore, the Company closely monitors policy changes in various regions. In the event of an increase in local minimum wage standards or socialsecurity standards, the Company will promptly respond and adjust its compensation policy accordingly. By ensuring that the daily life needs of theemployees are met, we create a fair, positive, and sustainable working environment for them, enabling them to focus more on corporate development.

Case: Parenting Support Plan

●Parental leave: Eligible employees can enjoy 10-day parental leaves per year before their

children turn 3 years old, to strike a balance between work and family;●Breastfeeding break: Breastfeeding mothers can enjoy breast-feeding breaks of one hour everyday (an additional one-hour break for each additional baby in multiple births) and are provided with?exible working hours to effectively protect women's rights and interests.In 2024, the Company has continued to upgrade the employee care facilities. We have set up aversatile nursing room that provides a private and comfortable space for working mothers tobreastfeed and rest, demonstrating our ?rm commitment to gender equality and workplace inclu-sivity. Meanwhile, we have continued to carry out the "Newborn Care Program" to provide newborngift packs for new parents and offer practical parenting support. The aim is to enhance employeesense of belonging and well-being, deepen corporate cultural cohesion, and further promote thepractices of corporate social responsibility.

CompensationBene?tsCareer DevelopmentWork-life Balance

In order to ful?ll the mission of "seeking well-being for employees,” LEAD has created a diverse culture and sports platform throughinterest associations. We have organized 4 large-scale interdepartmental sports events throughout the year to promote teamwork andcultural exchange. Sports facilities such as football, basketball, badminton, and table tennis ?elds are opened on Fridays and Saturdays,with a total of over 200 regular activities being held, involving more than 2,100 employees. Association activities responds to the call for"national ?tness" and creates a healthy, vibrant, and sustainable cultural environment.

Employee Bene?ts SystemInterest Associations

Employee Bene?ts

Statement of Living Wage

Basic salaryShort-termincentivesLong-termincentives (equity

incentive)Year-end bonusSpecial recognitionProject rewardAllowances andsubsidies

Challenging jobWell-establishedpromotionmechanismAbundant internaland external trainingopportunitiesJob rotationCareer developmentopportunities

Comfortable workingenvironmentFlexible leave of absence

systemWell-developed vacation policyHealth and ?tness bene?ts(annual health check-ups forall employees, sports clubsand ?tness activities)

Statutory bene?tsSocial security and housing provident fund

Heat allowancePaid annual leave

Company bene?ts

Employee care(birthday gift/wedding gift/newborn gift/health

check-up, etc.)

Team building(team-building activities/company or department

year-end party, etc.)Holiday bene?ts(holiday gift)New employee bene?ts (welcome package/mentorship, etc.)

Other bene?ts

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Dedicated to creating a harmonious and warm work environment, LEAD has carried out a variety of care events annually with over14,000 participants:

Poetry SalonSports Meeting

Summer Parent-child Fire?ghter Occupational ExperienceLantern Festival Celebration

Cervical Cancer and Breast Cancer ScreeningHelicobacter Pylori Detection

Organizational StructureLEAD has established an EHS Management Committee with the Chairman as the director and department managers as members.From the Chairman to department managers and employees, safety responsibility is assigned at every level, ensuring thewell-rounded accountability for safety production. The Committee, as the highest governing body for occupational health and safetymanagement, is responsible for the Company's occupational health and safety work. It organizes a quarterly special meeting onoccupational health and safety.Safety Management SystemThe safety management system is a standardized framework of "clear hierarchy, closed-loop management, and dynamicoptimization” based on national safety production laws and regulations and combined with industry characteristics and enterpriserealities. The following systems are currently in effective practice: "New Construction and Expansion Project AcceptanceManagement System,” "Safety Performance Assessment and Reward-Punishment Regulations,” "Safety Production ResponsibilitySystem Management System,” " Project Safety Management System,” "Hidden Danger Investigation and Management Regulations,” "Safety Hazard Severity Determination Standards,” "Special Equipment Management System,” "Special Operations Management andApproval Procedures,” "Job Safety Operating Procedures,” "Labor Personal Protection Equipment Management Standards,”"Warning Signs and Safety Protection Management System,” "Safety Accident Management Procedures,” "Supplier SafetyManagement System,” "Pedestrian and Vehicle Segregation Safety Management System,” etc.Safety Risk ManagementLEAD has systematically identi?ed the sources of danger within its management scope by promoting risk classi?cation control andhidden danger investigation and treatment work, and formulated control and preventive measures. Additionally, we havestrengthened emergency organization construction and conducted emergency drills to reduce accident risks and enhance ourcapabilities in safety risk management and response.

ISO 45001 Occupational Health andSafety Management System Certi?cate

Employee Care

Safe Production

Occupational Health and Safety

LEAD follows the Labor Law of the People's Republic of China, the Law of the People’s Republic of China on Work Safety, the Law of the Peo-ple's Republic of China on the Prevention and Control of Occupational Diseases, the Labor Contract Law of the People's Republic of China, theFire Protection Law of the People's Republic of China, and other laws and regulations. Adhering to the principle of “safety priority, preven-tion ?rst and comprehensive management,” and taking human life as an insurmountable red line, the Company has been enhancing thelevel of safety management and employee safety awareness to beef up the corporate safety culture.

The Company is committed to building a safe, green, and environmentally friendly enterprisewith "zero injuries, zero accidents, zero occupational diseases, and zero pollution." TheEnvironment, Health, and Safety (EHS) Management Committee of the Company formulatesannual safety objectives and breaks them down into sub-objectives for various businessdepartments/subsidiaries. The achievement of these objectives is linked to the evaluation ofannual organizational performance. Additionally, the Committee develops annual safety workplans, establishes the safety production responsibility system, and organizes all staff to signsafety responsibility letters. The safety management system is regularly updated, and a dualprevention mechanism of risk classi?cation and hidden danger investigation and control isimplemented. Various safety training and education programs are organized to foster thecorporate safety culture. Compliant innovative practices such as "Behavior-Based Safety(BBS)" and "Safety Performance Evaluation" are taken. The safety production responsibilitysystem is used to solidify the accountability chain and create a governance model leveragingthe synergy of "regulatory bottom line + management top line." The Company hasestablished the ISO 45001 occupational health and safety management systems. In 2024, itwas recognized by the Jiangsu Provincial Department of Emergency Management as asecond-level enterprise (machinery) in safety production standardization. It also joined theEmergency and Safety Production Association of Xinwu District, Wuxi City, and participated inthe relevant work of the association as a governing unit.

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Each department isresponsible for formulating itsown “Safety Risk HierarchicalManagement and Control List”according to the safety riskidenti?cation list, anddecomposing it to each post.

The general manager isresponsible fororganizing andimplementing themanagement andcontrol of major risks.

The EHS ManagementCommittee is responsible fororganizing special meetings toexamine and analyze theimplementation and control ofthe identi?ed major andmoderate risks every year andset the focuses of safety riskcontrol for the next year.

The Safety and EnvironmentDepartment is responsiblefor supervising theimplementation of safety riskmanagement and control ofeach department, andmaking real-time adjustmentto prevent a “lifetime rating.”

Risk Control Process

Recti?cation rate for hidden dangers uponexpiration in 2024Quali?cation rate for inspections in occupationalhazard workplaces in 2024

Emergency drills in 2024,covering ?re protection,safety, and occupational health

100%

The Safety and Environment Department is responsible for organizing alldepartments to carry out safety risk identi?cation according to the “ManagementProcedure for Identi?cation and Evaluation of Environmental Factors and HazardSources.” According to the “Safety Risk Hierarchical Management and ControlSystem,” the safety risks are classi?ed as major risk, moderate risk, general riskand low risk using the Likelihood, Exposure, Consequence (LEC) method.

Risk Identi?cation and Assessment

The Company formulates occupational health and safety inspection plans everymonth that incorporates occupational PPE, sanitary equipment, canteen environmentand more, and promptly reports and recti?es any problems identi?ed. Special inspec-tions of the working environment are conducted to ensure compliance with relevantrequirements.

Occupational Health and Safety Inspection

The Company formulates the “Emergency Preparedness and Response Control Procedure” thatstandardizes the emergency handling process, clari?es the rights and obligations of the emergencyhandling organization, lists the types of emergency accidents, and provides guidance to carry outvarious emergency drills. The emergency drill plan is formulated each year and carried outaccordingly. By rehearsing different accident types, employees enhance their ability to handleemergencies.

Emergency Response and Drills

Emergency Response

The Company has established the "Safety Accident Management Procedures" and a series of processes for handling work-related injuries andemergency incidents. It has actively developed emergency rescue plans for work-related accidents and executed drills. Through measures suchas the dual prevention mechanism, safety inspections, and safety training, we have reduced various work-related injury risks. After awork-related accident occurs, the Company follows the procedure to report, investigate, and analyze the causes of the accident, as well as tracksand improves the existing problems.

Each workshop is equipped with Automated External De?brillators (AED) and eachworkshop is equipped with ?rst aid kits to ensure that employees receive timelytreatment. The Company regularly conducts training and drills on ?rst aid knowledgesuch as cardiopulmonary resuscitation (CPR), burns treatment, and Heimlich maneu-ver, so that employees can master basic ?rst aid knowledge. In addition, the Companyhas signed a rescue agreement with surrounding hospitals to ensure immediatemedical treatment in the event of an accident.

First Aid and Emergency Treatment

Stakeholder Safety ManagementWith great attention to stakeholders’ safety management, LEAD has implemented the safety management requirements in accordance with the"Supplier Safety Management System" and "Stakeholder Management Control Procedures,” etc. In 2024, the Company has further optimizedthe Integrated Security System, enabling automatic identi?cation of ID cards to determine personnel information. It has achieved a uni?edcontrol interface for application processes, operation staff safety training, exam information, visitor passes, and tool carrying status. We havealso added the function of sending texts noti?cations to suppliers so as to identify the business contact personnel and strengthen the safetymanagement of supplier on-site operations. Moreover, the online training system for suppliers has been enhanced to provide one-on-oneoccupational health and safety management training for supplier personnel entering our factory. As for customers, the Company has carriedout safety management on customer project sites in accordance with the relevant project safety management regulations. For example, weassigned dedicated or part-time safety managers based on customer requirements and actual project conditions.

Occupational Health Risk Management and ControlLEAD carries out the prevention and control of occupational health hazards and formulates and implements various safety and occupationalhealth management systems in strict accordance with the Labor Law of the People's Republic of China, the Law of the People’s Republic of Chinaon Work Safety, the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases and other national laws andregulations, as well as the requirements of customers and relevant parties.We strictly implement the "three simultaneous" occupational health management regulations that all kinds of occupational health protectivefacilities are designed, constructed and put into use simultaneously with the project. In accordance with national occupational health laws andstandards, strict control is placed on the purchase and use of chemical substances involving occupational hazards, with preferences given tosafe materials over toxic and harmful substances. We regularly organize employees to undergo occupational health examinations before,during and after taking a post. We also conduct occupational hazard factor testing of the work environment in accordance with relevant lawsand standards to ensure that the work environment meets national standards and that employee health is protected.

Occupational Health

100%The main occupational hazard factors involved in the production activities of LEADare noise and dust. The Company has prepared the “Identi?cation List of Post Occu-pational Hazard,” which clari?es the hazard factors and harmful substances, andtaken control measures such as adding shock absorption measures and dust collec-tion devices, distributing personal protective equipment (PPE), and organizing regularoccupational health examination and occupational hazard factor detection. In 2024,the coverage rate of occupational health examination for employees was 100%.

Occupational Health Hazard Identi?cation and Control Means

Coverage rate of occupational health examination

for employees in 2024

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

Cleaning and inspection forms are displayed publicly, and dedi-cated personnel are assigned for the inspection and regularsummary. Food safety information is displayed on the noticeboard for information disclosure and joint supervision. Strictregistration and protective measures are taken for external visi-tors. Regular elimination of canteen pests is conducted toensure safe and hygiene dining environment.

System Construction

Canteen staff can only go on duty after daily morning inspection.Regular staff meetings and practical drills are held to reinforce theawareness of food safety.

Canteen Staff Management

Canteens are divided into dining area, storage area, and cookingarea so as to ensure a clean and tidy dining environment and adiverse selection of healthy and safe meals.Dining Experience Upgrade

We have enhanced employee interaction and disseminated knowl-edge on healthy diet through a total of over 100 article feeds aboutmenus, seasonal diet, and more in 2024.

Knowledge Popularization

The canteen management system have been upgraded in acomprehensive manner in 2024. An inspection team have beenestablished to conduct inspections 3-4 times per week in coor-dination with unannounced inspections. The "food sample48-hour retention" system are implemented to ensure foodhygiene. The supplier database for raw materials is updated toensure strict quality control over ingredient acceptance, andeach batch of materials comes with report for traceability. Aservice counter and a suggestion feedback hotline have beenadded, resulting in an 80% increase in on-site resolution ratefor employee dining problems. The goal of zero food safety inci-dents hasbeen achieved throughout the year.

Quality Control and Supervision

Food Safety

LEAD’s canteens always provide employees with safe,healthy, and high-quality dining services by executingmultidimensional management and strict "4D Kitchen"standards.

Safety culture development is a systematic project, the core of which is to internalize the concept of safety as a conscious action for allemployees through value guidance, behavior shaping, and environment creation. LEAD has established a multi-dimensional occupation-al health and safety training system by utilizing the LEAD e-Learning platform to carry out regular training for managers, team foremen,and employees of work returning or job rotation, and runs "four new" education. We have also put into practice the three-level safetyeducation, and strengthened safety training for post operation procedures, hazard identi?cation and control, road traf?c, etc., so as toenhance employees' safety awareness.

Safety MonthIn June 2024, LEAD held the Safety Month event with the theme "Safety for Everyone,Emergency Treatment by Everyone - Smooth the Path of Life.”The number of participantsreached nearly 7,000 in a series of promotional and educational activities including safetyknowledge competitions, vehicle blind spot experience, and videos with heartfelt messag-es from loved ones. These activities effectively enhanced the Company's ability to handlesafety emergencies and strengthened the safety fortress.

119 Fire Prevention MonthIn November 2024, LEAD held the 119 Fire Prevention Month event, focusing on the themeof "Prevention First, Life First." In conjunction with winter ?re prevention and controlpublicity work, a series of ?re prevention awareness activities were organized. A total of4,227 employees actively participated in the ?re safety competition, gaining knowledge of?re-?ghting equipment and ?re safety. The employees, organized by departments, tookpart in a comprehensive ?re-?ghting competition, which included tasks such as extin-guishing initial ?re, wearing protective gear, connecting water hoses, and water relay. Thiscompetition has enhanced the employees' professional skills, teamwork, and emergencyresponse capabilities.

Health and Safety Training and Culture Development

Furthermore, LEAD has actively promoted corporate safety culture development and created a safety culture atmosphere participated by allemployees. This is done through activities such as safety month, ?re prevention month, safety innovation competition, 7S mobilization,four-color risk maps and risk lists, factory pedestrian and vehicle segregation, preventive driving courses, post safety risk noti?cation cardsand safety warning signs, safety culture corridor, safety warning videos, and LEAD EHS WeCom platform push noti?cations.

The Company formulates and executes the annualsafety education and training plan to continuouslystrengthen employees' occupational health and safetyability. Safety education and training subjects includethe new employee three-level safety training, ?re safetytraining, occupational health and safety training, ?rstresponder training, driving ground operation training,specialized operation supervisor safety training, etc.

Regular Training

The Company provides onlinesafety training for externalconstruction personnel andone-on-one occupationalhealth and safetymanagement training foron-sitepersonnel.

Stakeholder TrainingThe three-level pre-jobsafety training andassessment are performedto ensure new employeeshave the necessaryknowledge of occupationalhealth and safety.

Pre-job Training

4D Kitchen

Well organizedResponsibility assumption

Necessary trainingProper execution

100%Average training hours per productionworkers in health and safety in 2024Coverage rate

Safety training sessions given toon-site construction contractors in 202410,922100%Coverage rate

Individuals obtained certi?cation asspecialized operators in 2024Individuals obtained certi?cation asspecialized equipment operators in 2024

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ENVIRONMENT & ENERGY

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

LEAD is committed to building a green and intelligent manufacturing ecosystem that covers the entire new energy industrial chain, withintelligent manufacturing technology as the cornerstone. We are unwavering in our pursuit of a zero-carbon sustainable developmentstrategy, aligning well with the global green development trend.

Waste Gas ManagementLEAD has formulated waste gas management regulations such as "Regulations on Waste Gas Emission Management" and "ManagementProcedures for Waste Gas Treatment Equipment and Facilities.” We have installed gas collection devices to collect machining oil mistwaste gas before introducing it into waste gas treatment facilities through waste gas pipelines, ensuring that the waste gas emissionconcentration meets the national and local emission requirements such as "Comprehensive Emission Standard for Air Pollutants" (GB16297-1996).The Company monitors the operation of the waste gas treatment facilities in real time through the working condition power monitoringsystem,and regularly conducts environmental monitoring every year to control the emission of air pollutants. It also identi?es, monitors,and controls the use of ozone-depleting substances (ODS), and establishes the "Ozone-Depleting Substances Control Procedure" tocontrol the consumption of ODS at source through the development of a sustainable procurement strategy.Furthermore, we have reduced the use of fossil fuels at the source by increasing the proportion of electric vehicles in the corporate ?eet,thereby minimizing the environmental impact of emissions on our operations.

LEAD "Environmental Management Policy" adheres to the core concept of "clean production andgreen development,” formulating scienti?c and reasonable environmental management proce-dures and quantitative targets with the aim of comprehensive and ?ne-grained control of pollu-tion sources throughout the whole process. Furthermore, we actively advocate and encourage allstakeholders to jointly adhere to this policy, consolidating the collective efforts for sustainabledevelopment. The Company, guided by the ISO 14001 environmental management system, hasestablished and improved the environmental management system. Through systematic, institu-tionalized, and process-oriented management, it has effectively guided the orderly implementa-tion of environmental management and compliance work, signi?cantly improving the ef?ciency ofpollutant management and continuously enhancing the Company's environmental performance.The Company has strictly executed the "three simultaneous" management regulations for envi-ronmental protection in construction projects, conducted relevant environmental impact assess-ment and acceptance, as well as held pollution/drainage permits, radiation safety permits, andother related licenses.

LEAD takes energy management as a key driver of green intelligent manufacturing, andpractices green operations through system improvement, equipment upgrades, monitoringoptimization, and the use of renewable energy.The Company adopts ISO 50001 energy management system as the framework, establishesenergy management regulations and procedures, and conducts regular system reviewsevery year to ensure the suitability, adequacy and effectiveness of the management system.The Company always takes zero environmental pollution as its direction.We have formulat-ed scienti?c and reasonable environmental and energy management goals based on actualoperational conditions. Monthly statistical analysis and annual comprehensive reviews areconducted. In the event of changes in the operational environment, production processes, orupdates to relevant national and local laws and regulations, the target indicators arepromptly revised and updated to ensure scienti?c and timely environmental and energymanagement.

ISO 14001 EnvironmentalManagement System Certi?cate

ISO 50001 EnergyManagement System Certi?cate

Environment and Energy

Environmental Management System

Clean Production

Waste Management (Waste Gas, Waste Water, Solid Waste)

Energy Management System

Environment and Energy Management SystemsGreen Production

After a new round of clean production audit and guidance, LEAD has taken systematic and comprehensive pollution treatment measuressuch as source reduction and process control, cutting the annual output of waste emulsion, the Company's main hazardous waste, by

31.76% year-on-year during the reporting period. This fully veri?es the remarkable effect of clean production measures in hazardous

waste reduction.

LEAD has formulated the internal management system for water, gas, noise, and solid waste in accordance with relevant national and locallaws and regulations, combined with its current situation. We have actively conducted environmental pollution control and waste dischargemanagement, regularly supervised and detected waste discharge to ensure regulatory compliance, and continuously upgraded thetreatment facilities. In 2024, LEAD entrusted a third-party testing agency to conduct tests on its water, air, and noise emissions, all of whichmet the relevant discharge standards.

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Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

Solid Waste ManagementThe Company has developed the "Solid Waste Management Procedures" and "Hazardous WasteManagement Regulations" to implement the principles of "waste reduction, resource utilization,and harmless treatment." It aims to ensure the collection, disposal, and comprehensive utilizationof various types of solid waste in compliance with the regulations, achieving zero discharge of solidwaste. The Company has also established a plan to reduce hazardous waste. Through cleanproduction, the amount of waste emulsion generated in 2024 decreased by 31.76% compared tothat in 2023. Comprehensive management of hazardous waste has been implemented throughoutthe entire process and life cycle.

Case: Rainwater Collection and Utilization System

In 2024, LEAD constructed an advanced rainwater collection and utilization system in the newly developed area. This systememploys a three-stage treatment process of "sedimentation-?ltration-puri?cation" to process rainwater and store the treatedrainwater in the collection tank. Processed rainwater can be directly used for irrigation within the industrial area, signi?cantlyreducing the intensity of water resource consumption and achieving the ef?cient and sustainable utilization of water resources.

Greening

water

Municipal rainwater pipeline/

sewage pipelineOver?owInitial diverted

rainwater

Roofrainwater

Preliminarygrid ?ltration

Rainwater collectionpipeline networkPollutantinterception device

Initial rainwaterdiversion device

Storage

tank

Roadrainwater

Road sprinklingwater

LEAD abides by Chinese and overseas laws and regulations related to chemical safety, such as the Regulations on the Administration ofControlled Chemicals, the Regulations on the Safety Management of Hazardous Chemicals, the Interim Provisions on the Supervision andAdministration of Major Hazard Sources of Hazardous Chemicals, the Catalogue of Hazardous Chemicals, etc. We have formulated systemssuch as the “Chemical Life-Cycle Management Procedures” to regulate the whole process of chemical procurement, compliantpurchasing, storage, use, emergency disposal and waste treatment.We have established a stringent process for the management of hazardous chemicals. Through our information system, we examineand approve the chemical procurement requests and the introduction of new chemicals in the factory. In strict accordance with laws andregulations, we implement controls such as prohibition of entry and substitution for restricted substances, highly toxic chemicals, andchemicals with serious occupational health and safety hazards in the areas of operation. In 2024, the training coverage rate for chemicalmanagement among employees exposed to chemicals reached 100%, with a total of 7,510 participants.

Chemical Management

Noise Management

Radiation Safety Management

Emergency Management

Environment Protection Training

Wastewater ManagementDuring the reporting period, the Company's water supply was solely obtained from the municipal water system, with no signi?cantdirect or indirect impacts on water resources resulting from changes in water intake, consumption, discharge, or storage.The Company has no industrial wastewater generation or discharge, and the main source of wastewater is domestic sewage. Afterpretreatment in septic tanks (for domestic sewage) and oil separators (for canteen wastewater),the sewage is connected to theXincheng Wastewater Treatment Plant. The in?uent concentrations meet Grade III standard of “Comprehensive Wastewater DischargeStandard” and Class A standard of “Water Quality Standard for Wastewater Discharged into Urban Sewers.”In order to comprehensively improve the ef?ciency of water resource management, and to address water scarcity and environmentalrisks, the Company has formulated the "Rain and Wastewater Management Procedure" and innovatively introduced an intelligent initialrainwater diversion system. This system achieves precise control of rainwater discharge through real-time monitoring and dataanalysis, effectively enhancing the environmental risk warning capability.

The main sources of noise in the Company include waste gas treatment facilities and equipment, air compressor rooms, the operation ofproduction equipment, handling and loading/unloading operations, etc. We have established the "Noise Management System.” After noise isreduced through plant sound insulation, fan vibration reduction, distance attenuation, soundproof walls and enclosures are used toeffectively block and eliminate the noise. In 2024, LEAD entrusted a third-party inspection agency to conduct noise testing. According toresults, the noise levels at the factory boundary meet the Class 3 standards stipulated in the "Emission Standard for Environmental Noise atthe Factory Boundary of Industrial Enterprises" with a maximum of 65dB(A) during the daytime and 55dB(A) during the nighttime.

LEAD strictly adheres to the Regulations of the People's Republic of China on the Safety and Radiation Protection of Radioisotopes and RadiationDevices, the Administrative Measures for the Safety License of Radioisotopes and Radiation Devices, the Administrative Measures for the Safetyand Protection of Radioisotopes and Radiation Devices, and other relevant laws and regulations, and has formulated the “RadiationManagement Rules and Regulations” to implement the radiation safety management of employees from the aspects of operation training,occupational health examination and regular detection of radiation dosimeters.

LEAD strictly adheres to the Environmental Protection Law of the People's Republic of China, the Water Pollution Prevention Law of the People'sRepublic of China, the Air Pollution Prevention Law of the People's Republic of China, and other relevant laws and regulations, and hasestablished a scienti?c sound environmental emergency management system. Based on the dynamic environmental risk assessmentmechanism, we have continued to improve the three-in-one emergency plan system covering comprehensive plan, special plan, and on-sitehandling plan in an annual basis to ensure that the plan system is both strategically preventive and practical.In terms of emergency support capability, the Company has established a comprehensive management model to optimize the emergencysupplies of different categories and promote the quantitative reserves and ef?ciency monitoring. It has also built a professional emergencyrescue team and continuously enhanced the team's professional competence and emergency response capabilities through a cultivationsystem of "selection, training, drills, and evaluation.”Furthermore, the Company conducts annual environmental emergency drills as planned to examine and enhance the effectiveness of theemergency response mechanism, thereby responding to various unexpected environmental incidents effectively and providing a solidguarantee for environmental safety.

LEAD has carried out environment protection training as scheduled. The training covered key topics such as water conservation, integratedmanagement of rainwater and wastewater, management of gas emissions, classi?cation and disposal of solid waste, and noise pollutioncontrol. The total number of participants in the environmental protection training reached 7,710, with a 100% pass rate in the training test.

Radiation Area DetectionIn 2024, the Company entrusted a third-party testing agency to conductprotective detection on the radiation areas within the factory premises.The results meet the limit requirements speci?ed in the “Standard forRadiological Protection in Low-energy Radiation Generating Devices”(GBZ115-2023).

Radiation Training and AssessmentAll employees working in radiation-related positions are required toobtain the certi?cate of "Radiation Safety and ProtectionAssessment for Nuclear Technology Utilization" or pass the internaltraining test.Radiation Dose DetectionLEAD cooperates with third-party agencies to conduct quarterly testingof the radiation dosimeters worn by radiation-exposed employees andissue compliance testing reports.

Occupational Health MonitoringLEAD organizes occupational health examinations forradiation-exposed employees every year, tracks the examinationresults and follow-up arrangements, establishes and properlykeeps personal health monitoring ?les to ensure compliance withregulatory requirements.

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LEAD actively responds to the dual carbon goal and agrees with the latest climate assessment report by IPCC. We are committed to energyconservation management, and have been contributing to keeping global temperature rise within 1.5 and mitigating climate risks. TheCompany has formulated the climate and energy management policies and implemented a comprehensive response strategy to promoteglobal sustainable development.

The Company has improved electricity ef?ciency by executing precise management on the air conditioning system and monitoring andmanaging power factor through the transformer substation. It has also reduced exhaust by managing the compressed air system, conductingthorough inspections on air leaks, and adopting low or zero air-consumption drainage equipment. In addition, the Company has improved energymanagement level and ef?ciency through digital and intelligent upgrades. This includes the introduction of an online monitoring system forsubstation equipment, a remote monitoring system for the compressed air stations, and a smart forklift management system.

Case: Air Conditioning Power ManagementAs the factory expands, the energy demand increases. In order to implement the energy-saving and emission reduction policy,LEAD continues to explore the energy-saving potential of the air conditioning system and has conducted a hierarchical con-straint index management and incentive program in the entire company. We have improved the management mechanism of airconditioning power consumption by strictly executing the seasonal temperature control standards (set 26°C for summer withoutdoor temperatures ≥30°C, and set 20°C for winter with outdoor temperatures ≤5°C), and developed employees' awarenessof energy saving and emission reduction.

Case: Construction of Charging Piles

In line with the green and low-carbon concept, LEAD installed intelligent charging piles in the parking lot in 2024 to provideconvenient new energy vehicle charging services for employees and encourage green travel. While improving the green infra-structure of the industrial park, we have also reduced the carbon footprint of employees, further contributing to carbon neu-trality.

Case: Remote Monitoring System for Compressed Air StationsLEAD has built a digital energy ef?ciency management system to promote the energy-saving renovation of the compressed airsystem. By deploying the Mogulinker intelligent management platform, we have achieved the 24-hour real-time monitoring,energy ef?ciency diagnosis, and warning linkage for the compressed air unit, providing accurate data support for energy con-servation. With the data from the management platform, we have implemented technical improvement projects such as pres-sure sensor network optimization and pipeline renovation, leading to an over 36% year-on-year decrease in energy consump-tion of the compressed air system and a power saving of 1,680 MWh in 2024.

Smart air compressor station cloud platformAir compressor

operationmonitoring

Conduct Energy-saving Management to Deal With Climate ChangeGreen Operation

Energy Ef?ciency Improvement

Optimized Monitoring

Established an energy monitoring systemto track and reduce energy waste

Consciousness DevelopmentElevated employees' consciousness ofwater and electricity conservation throughenergy-saving slogans

Upgraded EquipmentPrioritized the procurement of high-ef?ciencyenergy-saving lamps and low energy-intensiveequipment to reduce energy consumption fromthe sourceImproved SystemEstablished and continuously improved the energymanagement system to ensure its ef?cient operation

Statistical analysisof air compressoroperation data

Maintenancewarning forair compressor

Integrated controloperation of aircompressor system

Mobile terminal

operation

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Case: Garbage Sorting Game

In order to enhance employees' environmental awareness, LEADheld a garbage sorting knowledge quiz in June 2024 to help em-ployees easily acquire the knowledge of waste classi?cationfrom games. The activity infused waste sorting knowledge intogames, where employees learned waste sorting skills andunderstood the signi?cance of garbage separation for environ-ment protection in a relaxed and enjoyable atmosphere throughinteractive experiences and team cooperation. The event hashelped to contribute to building a resource-saving and environ-mentally friendly society.

Case: Sustainable Procurement of Employee Bene?tsLEAD practices the sustainable development concept in every aspect of its operations. The Mid-Autumn Festival gifts foremployees in 2024 used 100% inkless and biodegradable packages made from 8,000kg sugarcane bagasse, and each bucket hatwas made from 8 recycled water bottles. This not only shows the concept of environmental protection and sustainability, butalso adds a unique sentimental value to the gifts.

Use of Renewable EnergyTo follow global carbon neutrality goals, further reduce carbon emissions, and promote green and low-carbon transition, LEAD hasoptimized the energy mix and increased the proportion of renewable energy consumption, striving to create a green operation model.The factory in Naila, Germany has achieved 100% green power supply, making it a ?agship of LEAD's international green manufacturing.Meanwhile, the three production bases in Xinwu District, Wuxi City have been constructing rooftop distributed photovoltaics andsimultaneously deploying an intelligent energy management platform to achieve re?ned control of energy consumption. Once theconstruction is completed, all the green electricity generated will be consumed by the Company. We will continue to deepen theapplication of renewable energy and explore more innovative ways to reduce emissions.

Every year on Arbor Day, the Company organizes tree-planting activities within and around the industrial park. On important occasionssuch as Earth Day and World Environment Day, we conduct sustainability promotion activities, environmental knowledge competitions,and other events to enhance the awareness and ability for environmental protection.During the reporting period, the Company did not have any production bases or operational sites located within and adjacent to naturereserves, or in biodiversity areas. All production, operation, products, and services of the Company have not been found to have asigni?cant negative impact on biodiversity. LEAD will continue to evaluate the environmental impacts that may arise from theconstruction, production, and operation activities of the Company, and formulate ecological conservation policies to build a harmoniousplanet.

LEAD focuses on the impact of its operation on biodiversity. We strictly adhere to policies and regulations, such as the Opinions onFurther Strengthening Biodiversity Protection, and identify risk factors and potential dangers. As the "Green Factory of Jiangsu Province,"the Company places great importance on biodiversity conservation in its construction and operation. It is committed to creating anecological demonstration park to provide a habitat for animals.

Build an Environment-friendly Park to Protect Biodiversity

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COMMUNITYRESPONSIBILITY

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Since its establishment, LEAD has always upheld the concept of "Intelligence for Good” under the leadership of Chairman WangYanqing. The Company set the "Wang Yanqing Scholarship" with 10 million RMB in 2017 at Xishan Senior High School in JiangsuProvince to inspire more students to pursue their dreams. Starting from 2021, we have set up the "Wang Yanqing Scholarship" at sixprestigious universities: Harbin Institute of Technology, Southeast University, Huazhong University of Science and Technology, ChinaUniversity of Mining and Technology, Nanjing University of Science and Technology, and Hefei University of Technology. Since theinception, hundreds of thousands of RMB have been invested annually to provide ?nancial support to nearly a hundred promisingstudents as encouragement.

The Xinwu District of Wuxi has established a pairing assistance relationship with Yichuan County of Yan'an City. As an important participantand contributor to the pairing cooperation, LEAD has started a long-term assistance program for 12 left-behind and disadvantaged childrenin Yichuan in 2024 to offer them ?nancial support each year, aiming to help them complete their studies. This has sowed the seeds of hopefor the future of children in the old revolutionary base, while supporting the national rural revitalization and education cause.

In order to provide necessary assistance to employees in need, to encourage them toovercome challenges, and to bring warmth and care from the Company and their colleagues,LEAD has established the Love Fund since 2018. The Fund aims to help employees whoexperience ?nancial dif?culties due to personal or immediate family’s disabilities, illnesses,deaths, or other unexpected accidents. The fund is from the monthly donations from theCompany and employees: Employees can make a certain amount of voluntary donations permonth depending on their willingness and sign the donation letter, and the donation istransferred from their salary to the Fund account every month. The Company, on the otherhand, donates 50,000 RMB to the Fund annually. During the reporting period, the long-termLove Fund assistance mechanism has provided special consolation money to over 20employees who suffered from serious illnesses or unexpected dif?culties, effectivelyaddressing their concerns.

Key universities establishing “Wang Yanqing Scholarship”

Harbin Instituteof Technology

SoutheastUniversity

HuazhongUniversity ofScience andTechnology

NanjingUniversity ofScience andTechnology

China University ofMining andTechnology

HefeiUniversity ofTechnology

Donation Certi?cateLetters from Sponsored Children

Community Responsibility

Public Welfare Donations

Wang Yanqing ScholarshipRural Revitalization

Love Fund

LEAD takes "integrity, harmony, green, and development" as its social responsibility concept. We have clari?ed the principles, key areas,and application and approval process for public welfare support, and set a special public welfare budget to support ?elds such asscienti?c research and development, education, rural revitalization, and environmental protection.

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In addition to welfare donations, LEAD also engages in community voluntary services asgratitude. The Company has established the LEAD Volunteer Service Association to encourageemployees to actively participate in volunteer activities. The association has established anemployee welfare spirit pro?le database through forms such as questionnaires, and plansvolunteer programs based on the employees' willingness. It has also implemented a welfarecause points system that converts volunteer service hours into points. Based on the amount ofpoints, we select the LEAD Volunteer Star and provide gifts to commend and encourageemployees who actively participate in volunteer activities, thereby inspiring more employees toengage in philanthropic endeavors.

Under the call and organization of the Xinwu Safety and Green Development PromotionAssociation, LEAD, as a caring enterprise, actively participated in the "Caring for theElderly Living Alone" campaign. In 2024, we visited multiple homes of elderly people wholive alone or who have lost their only child, performing gas inspections, electrical facilitiesinspections and maintenance, and cleaning.We also brought rice, oil, and other groceries toensure a safe living environment for them and expressed our care. In the same year, theCompany was awarded the "Most Caring Enterprise" by the Association, which was a highrecognition of its social responsibility practices from an industry organization.

In 2024, LEAD, together with Tencent Charity, organized the "Little Red Flower Collection" fundraising event, attracting dozens of LEADvolunteers and their children. In this event, all the funds were raised through donation instead of purchase and were donated to the WuxiCharity Federation's "Wuxi One-Day Charity" project and the Shanghai Rende Foundation's "Making Acoustic Children Live Better" project,to provide assistance to students, patients, the underprivileged, the disabled, and other people in need. During the event, the Company alsoorganized a series of book and clothing donation activities internally, enabling the corporate welfare culture deeply ingrained in people.

In the collaboration between the Jiacheng community and LEAD, the two sides have engaged in negotiations based on the principles of"equality and mutual bene?t, complementary advantages, resource sharing, serving the people, and common development” to strengthencoordination. We have built a party building alliance hand in hand, and established a corporate volunteer service team. Through corporatevolunteer services in the community, we have promoted the linkage between the enterprise and the society, as well as residents, ensuringthe satisfaction of residents' demands. Moreover, we have cooperated in the ?eld of community welfare by organizing our corporatevolunteers to participate in community holiday activities such as the Lantern Festival cultural event.

Caring for the Elderly Living Alone

Community Culture Activity

Giving for Good Welfare Program

Community Activity

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LEAD always adheres to the concept of taking from the society andgiving back to the society, and integrates public welfare culture into theblood of the enterprise. In addition to charitable donations andcommunity activities, the Company also conveys warmth throughinitiatives such as agricultural assistance and support. For example,when selecting holiday gifts for employees, we direct our attentiontowards groups in need of care. For instance, we chose gift packagingboxes made of artwork created by children on the spectrum,combining holiday blessings with charitable acts. Our company alsopurchased agricultural products from the poverty-stricken areas inQinghai Province, such as goji berries, to contribute to ruralrevitalization.

LEAD has been carrying out long-term environmental protection activities, practicing the concept of green development and contributing tothe building of a "Beautiful China” with its practical actions. In recent years, the Company has continuously organized volunteer activitiessuch as garbage collection and mountain cleaning, attracting nearly a thousand participants. These activities have effectively enhanced theenvironmental awareness of the employees and contributed to the improvement of the community environment. In 2024, the Company hasfurther deepened its social responsibility practices by innovatively integrating environmental protection themed activities into theonboarding training for new employees, and incorporating the ESG concept into the new employee development system. In the communitypark, new employees picked up litter, cleaned the clogged sewage drains, and searched for plastic bottles, cigarette butts, and other wasteon the grassy paths, experiencing ?rsthand the importance of ecological conservation. LEAD will continue to explore more innovative waysto drive the deep integration of environmental protection with employee growth and community development, and create long-term valuefor society.

Environment Protection Activity

Public Welfare Culture

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APPENDIX

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The scope of environmental statistics includes the main production bases and warehouses located in Wuxi and Zhuhai, and excludesoutsourced canteens. Companies involved include Wuxi LEAD Intelligent Equipment Co., Ltd., Jiangsu Lead Technology Co., Ltd., JiangsuLead Hydrogen Intelligent Equipment Co., Ltd., Wuxi Lead Laser Precision Technology Co., Ltd., Zhuhai Titans New Power Electronics Co.,Ltd. and Guangdong Lead Intelligent Technology Co., Ltd.

Key Performance Table

1. Range of nitrogen oxides, sul?des, and PM: Canteen in No. 18 Xinzhou Road, Wuxi City, Jiangsu Province, China; Range of VOC: emissions from machining workshop.

Gas (direct energy)Fuel (direct energy)Water

Natural gasLique?ed petroleum gasGasolineDiesel fuelMunicipal water supply consumption

Waste emulsionWaste oilOil-containing wasteWaste organic solventWaste package and containerActivated carbonWaste solventBurning (without energy recovery)

Other disposal methods

Scrap steel

Scrap wire

Scrap plasticScrap non-ferrous metals

Scrap paperOther recycling methods

NOx

SOxPMVOC

60,227.32105,94817,374.50179,638.64100,180.79333,794

52.82

12.60

0.91

0.37

0.15

0.87

0.26

1.65

66.33

910.38

41.44

18.74

65.53

26.00

1,062.08

28.20

100.39

4,043,185.541,902.6132,317.984,008,964.95

MWhm

kgLLttttttttttttttttkgkgkgkgtCO

etCO

etCO

etCO

eTotal GHG emissionsScope 1 total GHG emissionsScope 2 total GHG emissionsScope 3 total GHG emissions

Index TypeIndexY2024Unit

The scope of social statistics is consistent with the scope of the consolidated ?nancial statement.

Employee diversity

Employee training

Employee rights

and bene?ts

Occupational healthand safety

Supply chainsResponsible marketing

Customer service

Total number of employees

on parental leave

Number of core suppliers

Average training hours per capitaAverage training expenditure per capitaNumber of company-level training sessionsPercentage of employees participation in trainingHours of employees training on employee bene?ts policies or proceduresPercentage of employees receiving training on employee bene?ts policies or proceduresPercentage of employees undergoing regular performance and career development assessments

MaleFemale30 years old and under31~50 years oldAbove 50 years oldMaster degree and above

Undergraduate degreeCollege degreeBelow college degree

MaleFemale

Total

ChinaOverseas

15,02512,8252,2006,8618,054

6,2253,1824,625

1,819

10,176

1,266

0.84

10,922

personspersonspersonspersonspersonspersonspersonspersonspersonspersonshoursRMBsessions%hours%%personspersonsincidents-%hours%sessions%drills%supplierssupplierssuppliers%incidentsincidents%

Index TypeIndexY2024Unit

Discrimination and harassment incidentsLost Time Injury Frequency Rate (LTIFR)

Coverage of occupational health examination for employeesAverage hours of health and safety training per production workerCoverage of health and safety training for production workersNumber of safety training sessions for on-site construction contractorsCoverage of safety training sessions for on-site construction contractors

Number of emergency drills

Employee coverage of emergency drills

Proportion of new suppliers screened on environmental/social dimensionsNumber of ?nes, penalties and warnings due to violation of product service information and identi?cation regulations

Number of ?nes, penalties and warnings due to violation of relevant marketing laws and regulations

Complaint resolution rate

TotalGender

AgeEducation level

1. Index calculation formula: LTIFR = (Number of lost time injuries/Total working hours) x 10

;

2. Including ?re protection, safety, environmental protection and occupational health emergency drills;

3. Including productive and indirect material suppliers.

Environmental Performance

Social Performance

Appendix

Resourceconsumption

Dangerous waste

(by composition)

Dangerous waste

(by recycling/disposal method)

General waste (by recycling/disposal method)

Major gas emissions

General waste

(by composition)

Waste

Exhaust gas

GHG

Purchased electricity (indirect energy)

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The scope of corporate governance and economic performance statistics is consistent with the scope of the consolidated?nancial statement.

Economicperformance

Intellectual

property

Information

security

Penalty

situation

Anti-competition,anti-corruption and

anti-monopoly

Authorized patent

Annual new authorized patents

TotalInvention patentUtility model authorizationAppearance design authorization

TotalInvention patentUtility model authorizationAppearance design authorization

36,182,558,952.99 11,855,098,145.55

286,100,791.80 -1,567,132,795.63 0.18402,830

2,304

RMBRMBRMBRMBRMB/share

itemsitemsitemsitemsitemsitemsitemsitemsincidentsincidentscomplaintspieces%%persons%RMBRMBRMBpiecespieces

Index TypeIndexY2024Unit

Serious and major cybersecurity incidents

Customers and other stakeholders affected by information security issuesCon?rmed incidents of disclosure, theft or loss of customer dataSubstantiated complaints convening breaches of customer privacy and losses of customer data

Litigation cases involving anti-competitive, antitrust and monopolistic practicesPercentage of corporate anti-corruption policies and procedures submitted to the board of directors

Percentage of staff who have received anti-corruption training and publicityTotal number of directors, supervisors, and senior executives who have received anti-corruption trainingPercentage of directors, supervisors, and senior executives who have received anti-corruption training

Penalty amount from product violationsPenalty amount from violating environmental laws and regulationsPenalty amount from violating laws and regulations in the social and economic ?elds

Number of non-economic penaltiesNumber of incidents of non-compliance concerning the health and safety impacts of products and services

Total assetsOperating revenueNet pro?t attributable to shareholders of the listed company

Net cash ?ow from operating activitiesBasic earnings per share

1. Refers to a four-hour and more downtime of corporate core and important systems or general systems.

Human Rights

Labor and Human Rights

Labor and Human Rights

Corporate GovernanceSustainable Supply Chains

Responses to climate change

Products and ServicesEnvironment and Energy

CategoryPrincipleCorresponding Chapter

Principle 1Principle 2Principle 3Businesses should support and respect the protection of internationally proclaimed human rights.Businesses should make sure that they are not complicit in human rights abuses.

Corporate Governance and Economic Performance

UNGC Ten Principles lndex

Businesses should uphold the freedom of association and the effective recognition of the right tothe collective bargaining.Businesses should uphold the elimination of all forms of forced and compulsory labor.Businesses should uphold the effective abolition of child labor.Businesses should uphold the elimination of discrimination in respect of employment and occupation.Businesses should support a precautionary approach to environmental challenges.Businesses should undertake initiatives to promote greater environmental responsibility.Businesses should encourage the development and diffusion of environmentally friendly technologies.Businesses should work against corruption in all its forms, including extortion and bribery.

Principle 4Principle 5Principle 6Principle 7Principle 8Principle 9Principle 10Anti-corruption

Environment

Labor

customers/stakeholders

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2-1 Organizational details2-2 Entities included in the organization's sustainability reporting2-3 Reporting period, frequency, and contact point2-6 Activities, value chain, and other business relationships2-7 Employees2-9 Governance structure and composition2-10 Nomination and selection of the highest governance body2-11 Chair of the highest governance body2-122-13 Delegation of responsibility for managing impacts2-14 Role of the highest governance body in sustainability reporting2-15 Con?icts of interest2-16 Communication of critical concerns2-17 Collective knowledge of the highest governance body2-18 Evaluation of the performance of the highest governance body2-20 Process to determine remuneration2-22 Statement on sustainable development strategy2-23 Policy commitments2-24 Embedding policy commitments2-25 Processes to remediate negative impacts2-26 Mechanism for seeking advice and raising concerns2-27 Compliance with laws and regulations2-28 Membership associations2-29 Approach to stakeholder engagement2-30 Collective bargaining agreements

IntroductionReporting entityReporting period, Contact usAbout LEAD, Products and Services, Sustainable Supply ChainsLabor and Human RightsOrganizational structureOrganizational structureOrganizational structureOrganizational structureOrganizational structureSustainability Management SystemSustainability Management SystemSustainability Management SystemSustainability Management SystemSustainable development strategyBusiness ethics, Protection of employee rights and interestsBusiness ethicsBusiness ethicsBusiness ethicsEach chapter of the reportIndustry participation, Sustainable development strategyStakeholder engagementProtection of employee rights and interests

GRI 2: GeneralDisclosures 2021

General Disclosures

Role of the highest governance body in overseeing themanagement of impacts

Corporate Governance(For more details, please refer to the annual report.)

Organizational structure(For more details, please refer to the annual report.)

3-1 Process to determine material topics3-2 List of material topics3-3 Management of material topics

Materiality AssessmentMateriality AssessmentMateriality Assessment, each chapter of the report

GRI 3: Materialtopics 2021

Material Topics

201-1 Direct economic value generated and distributed201-3 De?ned bene?t plan obligations and other retirement plans201-4 Financial assistance received from government

Responses to climate changeEmployee bene?tsPlease refer to the annual report.GRI 201: EconomicPerformance 2016

Economic Performance201-2 Financial implications and other risks and opportunities due toclimate change

Corporate Governance, Employee development,Employee bene?ts, Key performance table

302-1 Energy consumption within the organization302-2 Energy consumption outside of the organization303-3 Energy intensity303-4 Reduction of energy consumption303-5 Reductions in energy requirements of products and services

Responses to climate change, Key performance tableResponses to climate change, Key performance tableResponses to climate changeGreen production, Green operationEnvironment-friendly productsGRI 302: Energy 2016

Energy

205-1 Operations assessed for risks related to corruption205-3 Con?rmed incidents of corruption and actions taken

Business ethicsBusiness ethicsBusiness ethics, Key performance tableGRI 205:

Anti-corruption 2016

Anti-corruption

303-1 Interactions with water as a shared resource303-2 Management of water discharge-related impacts303-3 Water withdrawal

Green productionGreen productionKey performance tableGRI 303: Water andEf?uents 2018

Water and Ef?uents

304-1 Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outsideprotected areas

Green operationGreen operationGRI 304:

Biodiversity 2016

Biodiversity304-2 Signi?cant impacts of activities, products and services onbiodiversity

203-1 Infrastructure investments and services supported203-2 Signi?cant indirect economic impacts

Community ResponsibilityCommunity ResponsibilityGRI 203: IndirectEconomic Impacts 2016

Indirect Economic Impacts

206-1 Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

Business ethics, Key performance tableGRI 206: Anti-competitiveBehavior 2016

Anti-competitive Behavior

GRI Content IndexStatement of UseGri 1 Used

GRI 1: Foundation 2021DisclosureLocationGRI Standard

LEAD has reported the information cited in this GRI content index for the period from January 1 to December 31, 2024with reference to the GRI Standards.

205-2 Communication and training about anti-corruption policiesand procedures

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305-1 Direct (Scope 1) GHG emissions305-2 Energy indirect (Scope 2) GHG emissions305-3 Other indirect (Scope 3) GHG emissions305-4 GHG emissions intensity305-6 Emission of ozone-depleting substances (ODS)305-7 Nitrogen oxides (NOX) , sulfur oxides (SOX) and other signi?cant air emissions

Green productionGreen production, Key performance tableGRI 305: Emissions 2016

Emissions

403-1 Occupational health and safety management system403-2 Hazard identi?cation, risk assessment, and incident investigation403-3 Occupational health services403-5 Working training on occupational health and safety403-6 Promotion of worker health403-8 Workers covered by an occupational health and safety management system403-9 Work-related injury403-10 Work-related ill health

Occupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and Safety

GRI 403:

OccupationalHealth andSafety 2018

Occupational Health and Safety

306-1 Waste generation and signi?cant waste-related impacts306-2 Management of signi?cant waste-related impacts306-3 Waste generated306-5 Waste diverted for disposal

Green productionGreen productionKey performance tableKey performance tableGRI 306: Waste 2020

Waste

404-1 Average hours of training per year per employee404-2 Programs for upgrading employee skills and transition assistance programs

Key performance tableEmployee developmentKey performance tableGRI 404: Training and

Education 2016

Training and Education

401-3 Parental leave

Employee bene?tsEmployee bene?tsGRI 401:

Employment 2016

Employment

413-2 Operations with signi?cant actual and potential negative impactson local communities413-1 Operations with local community engagement, impact assessments,and development programs

Community ResponsibilityEnvironment and Energy,Community ResponsibilityGRI 413: LocalCommunities 2016

Local Communities

416-2 Incidents of non-compliance concerning the health and safetyimpacts of products and services416-1 Assessment of the health and safety impacts of product andservice categories

Product quality managementKey performance tableGRI 416: CustomerHealth and Safety 2016

Customer Health and Safety

417-3 Incidents of non-compliance concerning marketing417-2 Incidents of non-compliance concerning product and serviceinformation and labeling

Key performance tableKey performance tableGRI 417: Marketing andLabeling 2016

Marketing and Labeling

418-1 Substantiated complaints convening breaches of customer privacyand losses of customer data

Key performance tableGRI 418: CustomerPrivacy 2016

Customers Privacy

308-1 New supplier that were screened using environmental criteriaKey performance tableGRI 308: SupplierEnvironmentalAssessment 2016

Supplier Environmental Assessment

405-1 Diversity of governance bodies and employees

Organizational structure,

Employee diversityGRI 405: Diversity andEqual Opportunity 2016

Diversity and Equal Opportunity

406-1 Incidents of discrimination and corrective actions taken

Protection of employee rights

and interestsGRI 406:

Non-discrimination 2016

Non-discrimination

407-1 Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk

Responsible procurement management,

Protection of employee rights and interestsGRI 407: Freedom ofAssociation and CollectiveBargaining 2016

Freedom of Association and Collective Bargaining

408-1 Operations and suppliers at signi?cant risk forincidents of child labor

Responsible procurement management,

Protection of employee rights and interestsGRI 408: Child Labor 2016

Child Labor

409-1 Operations and suppliers at signi?cant risk for incidents offorced or compulsory labor

Responsible procurement management,

Protection of employee rights and interestsGRI 409: Forced orCompulsory Labor 2016

Forced or Compulsory Labor

Responses to climate change,Key performance tableResponses to climate change,Key performance tableResponses to climate change,Key performance tableResponses to climate change,Key performance table

401-2 Bene?ts provided to full-time employees that are not provided totemporary or part-time employees

403-4 Worker participation, consultation, and communication on occupationalhealth and safety403-7 Prevention and mitigation of occupational health and safety impactsdirectly linked by business relationships

404-3 Percentage of employees receiving regular performance and careerdevelopment reviews106107

Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental, Social and Governance (ESG) Report

Special: Responses to Climate ChangeCorporate GovernanceProducts and ServicesLabor and Human RightsSustainable Supply ChainsEnvironment and EnergyCommunity ResponsibilityAppendixAbout LEADSustainability Management System

Third-party Veri?cation and Authentication Information

Independent Verification Statement

T?V S?D

Certification and Testing

(China) Co., Ltd.
No.151 Heng Tong Road,
Shanghai 200070

			Page 1 of 3
			Tel: [phone]
			Fax: [phone]
			Web: www.tuvsud.com

Verification Statement：EIV2 102675 0091 Rev. 00

ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 1 of 3

To the management and stakeholders of LEAD,T?V S?D Certification and Testing (China) Co., Ltd. (hereinafter referred to as "T?V S?D") has been engaged by WuxiLead Intelligent Equipment Co., Ltd. (hereinafter referred to as "LEAD" or "the Company") to perform an independentthird-party verification on 2024 Environmental, Social, and Governance (ESG) Report (hereinafter referred to as "theReport"). During this verification, T?V S?D's verification team strictly abided by the contract signed with LEAD andprovided verification regarding the Report in accordance with the provisions agreed by both parties and within theauthorized scope stipulated in the contract.This Independent Verification Statement is based on the data and information collected by LEAD and provided to T?VS?D. The scope of verification is limited to the given information. LEAD shall be held accountable for authenticity andcompleteness of the provided data and information (contains assumptions, projections, and/or historical facts).Scope of Verification

Time frame of this verification:

? The Report contains the data disclosed by LEAD during the reporting period from January 1

st, 2024 to December

st

, 2024, including governance, environmental and social information and data, methods for management ofmaterial issues, actions/measures and the Company's sustainability performance during the reporting period.Physical boundary of this verification:

? The on-site verification sampling took place at below listed location:

18 Xinzhou Rd., Xinwu District, Wuxi, Jiangsu Province, ChinaScope of data and information for the verification:

? The scope of verification is limited to the data and information of LEAD and all companies under its operational

control covered by the Report.The following information and data are beyond the scope of this verification:

? Any information and contents beyond the reporting period of this Report; and? The data and information of LEAD's suppliers, partners and other third parties; and? The financial data and information disclosed in this Report that have been audited by an independent third party

are not verified again herein.Limitations

? The verification process is conducted in the above scope and places. Sampling and verification are adopted for

the data and information in the Report by T?V S?D, and only the stakeholders within the Company are

interviewed; and

? The Company's standpoint, opinions, forward-looking statements and predictive information as well as the

historical data and information before January 1

st, 2024 are beyond the scope of this verification.

? T?V S?D's verification conclusions are based on the analysis of the data and information collected by T?V S?D

and may not identify all problems and conditions, nor constitute a guarantee of the credibility or status of the

subject of verification.

Basis for the Verification

Independent Verification Statement

ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 1 of 3

T?V S?D Certification and Testing (China) Co., Ltd.
No.151 Heng Tong Road,
Shanghai 200070

			Page 2 of 3
			Tel: [phone]
			Fax: [phone]
			Web: www.tuvsud.com

：

EIV2 102675 0091 Rev. 00

ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 2 of 3

This verification process was conducted by T?V S?D's expert team with extensive experience in the economic,environmental, social and other relevant areas and drew the conclusions thereof. The verification conforms to thefollowing standards:

? AA1000AS v3, Type 2 Engagement and Moderate level Assurance? International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits orReviews of Historical Financial Information, Limited Assurance? Sustainability report verification programme operation rule (CCB_EIV_GR_002E Rev02)

In order to perform adequate verification in accordance with the contract and provide reasonable verification for theconclusions, the verification team conducted the following activities:

? Preliminary investigation of the relevant information before the verification;? Confirmation of the presence of the topics with high level of materiality and performance in the Report;? On-site review of all supporting documents, data and other information provided by LEAD; tracing and

verification of key performance information;

? Special interview with the representative of LEAD's management; interviews with the employees related tocollection, compilation and reporting of the disclosed information; and? Other procedures deemed necessary by the verification team.

Verification ConclusionsAccording to the verification, we believe that the data and information presented in LEAD's report are objective, factualand reliable, without systematic problems.The verification team has drawn the following conclusions on this Report:

Inclusivity

ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 2 of 3

LEAD has identified the internal and external stakeholders such as shareholders, customers,

suppliers and partners, employees, government authorities, etc., and established astakeholder communication mechanism to collect the demands of stakeholders.

Materiality

LEAD has identified the internal and external stakeholders such as shareholders, customers,

LEAD has established the prioritization process of material topics determination, identified and

assessed the priority of the sustainability topics which are highly related to the industry, theCompany disclosed the governance structure, management approach as well as sustainabilityperformance in corporate operation, therefore the Report's adherence to materiality principleis guaranteed.Responsiveness

stakeholders concern, such as product quality and safety, occupational health and safety,intellectual property protection, business ethics and compliance, employee rights andwelfare, etc., and has established a communication mechanism, to fully respond to thedemands and expectations of stakeholders.Impact

LEAD has disclosed the management approach and performance of high material topics that

LEAD has established a ESG Management Committee to enhance the Company's efforts in

the areas of environmental, social responsibility and corporate governance. Through theprocess of identifying and assessing material topics, the Company disclosed the impact ofidentified material topics on sustainable development.

Recommendations on Continuous Improvement

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Independent Verification Statement

T?V S?D

Certification and Testing

(China) Co., Ltd.
No.151 Heng Tong Road,
Shanghai 200070

			Page 3 of 3
			Tel: [phone]
			Fax: [phone]
			Web: www.tuvsud.com

：

EIV2 102675 0091 Rev. 00

ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 3 of 3

? It is recommended that the Company supplements relevant qualitative and quantitative targets based on the

existing sustainable development strategy.Statement on Independence and Verification CapabilityT?V S?D is a trusted partner of choice for safety, security and sustainability solutions. It specializes in testing,certification, auditing and advisory services. Since 1866, the company has remained committed to its purpose of enablingprogress by protecting people, the environment and assets from technology-related risks. Today, T?V S?D is present inover 1,000 locations worldwide with its headquarters in Munich, Germany. Through expert teams represented by morethan 26,000 employees, it adds value to customers and partners by enabling market access and managing risks. Byanticipating technological developments and facilitating change, T?V S?D inspires trust in a physical and digital world tocreate a safer and more sustainable future.

T?V S?D Certification and Testing (China) Co., Ltd. is one of T?V S?D's global branches and has an expert team whosemembers have professional background and rich industrial experiences.T?V S?D and LEAD are two entities independent of each other and both T?V S?D and LEAD and their branches orstakeholders have no conflict of interest. No member of the verification team has business relationship with theCompany. The verification is completely neutral. All the data and information in the Report are provided by LEAD. T?VS?D has not been involved in preparation and drafting of the Report, except for the verification itself and issuance of theverification statement.

Signature:

On Behalf of T?V S?D Certification and Testing (China) Co., Ltd.

Zhu WenjunT?V S?D Sustainability Authorized Signatory OfficerApril 09

th

, 2025Shanghai, China

Note: In case of any inconsistency or discrepancy, the simplified Chinese version "Independent Verification Statement CN" of thisverification statement shall prevail, while the English translation is used for reference only.

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Suggestions and Feedbacks

Dear readers:

Hello!Thank you very much for reading this report in your busy schedule. In order to provide you and other stakeholders with morevaluable ESG information and further improve the quality of our ESG reports, we sincerely invite you to ?ll out the relevantquestions in the feedback form. You can give us feedback in the following ways. Thank you for your strong support for our ESGwork!Phone: [phone]Fax: [phone]Email: [e-mail]: No.18 Xinzhou Road, National High-tech Industrial Development Zone, Wuxi City, Jiangsu ProvinceContact: ESG Of?ce of Wuxi Lead Intelligent Equipment Co., Ltd.

1. Which of the following stakeholders do you belong to?

囗Government of?cials 囗Regulatory authorities 囗Shareholders and investors 囗Employees囗Customers 囗Suppliers and partners 囗Community residents 囗Peer enterprises囗Others

2. What is your overall evaluation of this report?

囗Excellent 囗Good 囗Neutral 囗Poor

3. What do you think of the quality of ESG information disclosed in this report?

囗Excellent 囗Good 囗Neutral 囗Poor

4. Do you think this report re?ects the signi?cant economic, social and environmental impacts of LEAD?

囗Yes 囗Not really 囗No 囗No idea

5. What aspects of the report do you think need improvement?

囗Layout design 囗Report length 囗Topic coverage 囗Release form/media

6. You are welcome to provide your comments and suggestions on LEAD's ESG work and the report:

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Wuxi Lead Intelligent Equipment Co., Ltd.2024 Environmental,Social and Governance(ESG) Report

Wuxi Lead Intelligent Equipment Co., Ltd.

Address: No.18 Xinzhou Road, National High-tech Industrial Development Zone,Wuxi City, Jiangsu ProvincePhone: 0510-81163600Email: [e-mail]