长青科技：2023长青科技ESG报告(英文版)

CHANGZHOU EVERGREEN TECHNOLOGY CO., LTD.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

ENVIRONMENTAL，SOCIAL ANDGOVERNANCE REPORT

CHANGZHOU EVERGREEN TECHNOLOGY CO., LTD.ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Changzhou Evergreen Technology Co., Ltd. Address: No. 300 Hehai West Road, Xinbei District, Changzhou City, Jiangsu ProvincePostcode: 213125 Phone: [phone] Email: [e-mail]

2023

ESG

About This Report

Importance

The report clearly identi?es ESG issues thatare of signi?cant relevance to the Companyand provides targeted disclosure on theseissues.The report discloses relevant data on report-ed emissions/energy consumption (whereapplicable), including information on stan-dards, methods, assumptions, and/or calcu-lation tools used, as well as the sources ofconversion factors used.

Report IntroductionThis report is the ?rst Environmental, Social and Governance (ESG)report released by Changzhou Evergreen Technology Co., Ltd. (here-inafter referred to as "Evergreen Technology," "the Company," "we,"etc.). It aims to provide regular and systematic disclosure to stake-holders such as shareholders and investors, local governments andregulatory agencies, employees, customers, partners and suppliers,media and the public, as well as local community residents, aboutthe Company's concepts, methods, practices and performance inenvironmental, social and governance (ESG) aspects. This disclosurestrengthens stakeholders' understanding and awareness of theCompany and subjects it to societal scrutiny.

The report is compiled following the principles of importance,quanti?cation, consistency and balance.

This report is compiled in accordance with the Shenzhen StockExchange's Shenzhen Stock Exchange Listed Company Self-Regula-tion Guidelines No. 1 - Standard Operation and Listed CompanySocial Responsibility Guidelines, as well as referencing the Interna-tional Organization for Standardization's Guidance on SocialResponsibility (ISO 26000), the Global Reporting Initiative's Sustain-ability Reporting Standards (GRI Standards 2021), and the UnitedNations Sustainable Development Goals (SDGs). It focuses on report-ing the Company's e?orts in promoting social, environmental,ecological and economic sustainability development.Report ScopeThis report covers Changzhou Evergreen Technology Co., Ltd. and allits wholly-owned and controlling subsidiaries. The scope of socialand governance data in the report is consistent with the annualreport, while the environmental data scope, unless otherwise speci-?ed, includes Evergreen Technology and its wholly-owned subsidi-ary, Evergreen Decorating. Unless otherwise speci?ed, the data inthe report covers the period from January 1, 2023, to December 31,2023. Considering the continuity and comparability of disclosedinformation, some information may extend beyond the reportingperiod. Unless speci?cally stated otherwise, the currency unit usedin the report is RMB.The abbreviations of the wholly-owned subsidiaries mentioned inthe report are as follows:

Evergreen Decorating Refers to Jiangsu Evergreen DecoratingMaterical Co.,Ltd.TrainFX (Anhui) Refers to TrainFX Company(Anhui) Ltd.TrainFX Refers to TRAINFX LIMITEDReport AccessYou can download the electronic text of this report from the websiteof Changzhou Evergreen Technology Co., Ltd. (https://www.ce-trail.com) and access more information. If you wish to further under-stand us, you can supplement by reading the Company's annualreport or browsing the Company's website.Contact InformationChangzhou Evergreen Technology Co., Ltd.Address: No. 300 Hehai West Road, Xinbei District, Changzhou City,Jiangsu ProvincePostcode: 213125Phone: [phone]Email: [e-mail]

Compilation Basis

Quanti?cation

The statistical methods used for data disclo-sure in the report remain consistent. Anychanges in disclosure methods, key perfor-mance indicators, or other factors a?ectingmeaningful comparisons are clearlyexplained in the report.The content of the report objectively andfairly describes the Company's performancein environmental, social and governanceaspects, avoiding inappropriate misunder-standings, decisions and judgments by read-ers.

Consistency

Balance

CATALOGUE

Environmental, Social and Governance Report

Company Pro?leDevelopment MilestonesCorporate Culture

Chairman's AddressAbout Evergreen Technology

AppendixKey PerformanceIndex TableReader Feedback Form

Major Achievementsand ESG Highlights of 2023

Responsibility as the FoundationConstructing a New Corporate OrderGovernance Section

Corporate GovernanceDeepening Green ManagementPursuing Excellent QualityBuilding a Happy WorkplaceCollaborating with Partners to Achieve Mutual SuccessOptimizing Resource UtilizationWaste ManagementAddressing Climate ChangeInformation Security

ESG GovernanceBusiness Ethics and Anti-Corruption

Environmental Section

Practicing Environmental ProtectionPursuing Sustainable Development

Social SectionCreating the Future TogetherEmbracing Social Responsibility

2023 is the ?rst year of fully implementing the spirit of the 20th National Congress of the Communist Party of China.Underthe strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, Evergreen Technology bears in mind its origi-nal aspiration and mission, unswervingly promotes the development of manufacturing, and strives to become a global leader in thehigh-quality manufacturing of lightweight "sandwich" composite materials. We seize the opportunities of the times, strive to explorehigh-quality development paths, and make positive contributions to promoting the progress of the composite material industry andthe sustainable development of society.

After decades of highs and lows, every step forward made by Evergreen cannot be separated from the care and assistanceof lifelong friends, from the encouragement and guidance of industry experts, and most importantly, with the trust andsupport of our customers. Evergreen will always be grateful to you, and with you Evergreen will shine even brighter!

In May 2023, Evergreen Technology successfully listed on the main board of the Shenzhen Stock Exchange, taking anotherstep towards becoming a global leader.With a modern enterprise system as the core, we continuously strengthen the functions ofthe board of directors and supervisory board to ensure transparency and fairness in corporate governance. We pay increased atten-tion to environmental, social, and governance issues, incorporating these factors into our company strategy and daily operations. Wecontinue to learn and improve our corporate governance standards, providing a solid foundation for the steady development of thecompany. In the future, we will continue to deepen corporate governance reforms, enhance the company's competitiveness andmarket position, and create more value for shareholders and society.

Evergreen Technology adheres to the core values of "Integrity, Innovation, and Perseverance"with the vision of becoming a"global leader in the high-quality manufacturing of lightweight "sandwich" composite materials." We take it as our responsibility tobuild a green ecological environment, continuously strengthen and expand the production of lightweight "sandwich" compositematerials, and explore their application in various ?elds. We actively promote green technological innovation and continuouslyenhance the development of our technical talent pool. In the future, we will continue to research and apply advanced technologies,improve production e?ciency, reduce environmental pollution, and make positive contributions to sustainable development and theconstruction of an ecological civilization.

Evergreen Technology demonstrates social responsibility and commitment in the new era, ful?lling its duties to employ-ees and society through practical actions. We uphold the social responsibility of a responsible enterprise, dedicated to improvingthe working and living environment for employees, continuously focusing on social welfare causes, and actively practicing socialresponsibility. We value the growth and development of employees, providing a good working environment and favorable bene?ts. Inthe future, we will continue to participate in social welfare activities, setting an example of responsibility.

Marching triumphantly and seizing opportunities as they arise.Evergreen Technology, as a leading domestic provider of light-weight “sandwich” composite materials, is always committed to providing lightweight, energy-e?cient, environmentally friendly, safe,reliable, and comfortable composite products for applications such as rail transit and architectural decoration. Deeply aligned withnational strategies like "carbon peak and carbon neutrality" and "new infrastructure," we always adhere to the corporate culture of"Loyalty, Diligence, Dedication, and Caring" We prioritize both social and economic bene?ts, insisting on the integration of social andeconomic responsibilities, and steadily moving towards our vision of becoming a globally leading and excellent enterprise!

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportChairman's Address

Chairman's Address

ZHOU YIN MEIRepresentative of the 10th and 11th National People's CongressChangzhou Evergreen Technology Co.,Ltd. Chairman

Evergreen Technology is a high-tech enterprise specializing in the development and application of lightweight "sandwich" compositematerials. The Company possesses strong technical research and development capabilities, exquisite production processes,advanced testing equipment, scienti?c management systems and responsive service capabilities. Since its establishment, we haveaccumulated numerous high-quality customer resources and extensive project implementation experience, establishing a good repu-tation and brand image in the industry.

Evergreen Technology has established a comprehensive product system in two major ?elds: rail transportation and architectural dec-oration, achieving signi?cant market positions. In the ?eld of rail transportation, we provide interior decoration products for rail vehi-cles, maintenance services, spare parts and onboard passenger information systems. In the architectural decoration business, weo?er interior and exterior decoration products. We will always adhere to the research and application of lightweight composite mate-rials for "sandwich" structures and continuously expand the application of products in various ?elds.

About Evergreen Technology

Company Pro?le

International Partners

ZEFIRO PLATFORMTGV2020

CORADIA PLATFORM

CHONGQINGJIANG JUMPER

BEIJING LINE 19SUZHOU LINE 5

QINGDAOJIAODONG AIRPORT

SHENYANGLIFE CIRCLE

LONDONRAILWAY STATION

SHENZHEN HUAWEIR&D CENTER

VENETIAN GRAND

HOTEL MACAU

OMENO PLATFORM

NEW EMBASSY OF THEFRENCH EMBASSY IN CHINA

TAIYUANART MUSEUM

TAIYUAN CHANGFENG CULTURAL

ISLANDCROSS FEN RIVERXUEFU LANDSCAPE BRIDGE

CHONGQINGJIANGBEI AIRPORT

CHINA ZUN

NATIONAL LIBRARY

SHANGHAIMARITIME MUSEUM

SANYA HAITANG BAY

KING POWER

XI'AN LINE 5

FUXINGHIGH-SPEED TRAIN

NATIONAL CONVENTIONCENTER PHASE II

THE MINISTRY OFCOMMERCE OF THE PEOPLE'SREPUBLIC OF CHINA

SHAANXI TELECOM NETWORK

MANAGEMENT BUILDING

SHENZHEN VANKE BINHAI REAL ESTATE

GUANGZHOU INTERNATIONALCONVENTION ANDEXHIBITION CENTER

BEIJING NEWPOLY BUILDING

SHANXIGRAND THEATRE

SHENYANG OLYMPICSPORTS CENTER

Classic Cases

Global Footprint ofEvergreen's Business

Domestic Partners

Environmental, Social and Governance ReportAbout Evergreen Technology

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

About Evergreen Technology

Development Milestones

Changzhou Evergreen Aiwei Transportation Equipment Co., Ltd. (the predecessor of the company) was estab-lished, realizing the ?rst domestic application of aluminum honeycomb composite material in domestic railtransit and the ?rst domestic application of super high-rise stone honeycomb panel curtain wall construction.

Established TrainFX Company(Anhui) Ltd. as a jointventure with Anhui Comprehensive TransportationResearch Institute Co., Ltd. to serve the domestic railtransit vehicle passenger information system ?eld.

2005

201020112012

Set up Qingdao Workstation to carry out theoverhaul business of EMU ?oor and interior decorationin Qingdao area.2017

Set up the Changchun Workstation to carry outthe overhaul business of the ?oor and interiordecoration of EMUs in Changchun area.

2018

Established a subsidiary,Guangdong QingwuTechnology Co., Ltd.

2020

Established subsidiaries ChongqingEvergreen New Material Co., Ltd. andJiangxi Qingwu Technology Co., Ltd.Established Changchun and Qingdaobranches at the same time.

2021

Listed on the ShenzhenStock Exchange MainBoard on 22nd May.

2023

2016Exporting heated laminate ?ooring to Europe, becoming Bombardier'sonly quali?ed supplier of heated laminate ?ooring in China.

The company completes theshareholding system restructuring.

Entered the ?eld of rail transit vehiclepassenger information system through itssubsidiary TrainFX.

Became the ?rst company in China to obtain DIN6701 (bonding system) certi?cation from Germany.Export the integrated ?oor of rail transit to Europe, and become Alstom’s only quali?ed ?oor supplier in China.The Saudi Mecca project started, becoming the ?rst to China CRRC is a quali?ed supplier of integrated solutions forsubway interiors.

2009

Environmental, Social and Governance ReportAbout Evergreen Technology

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Core ValuesIntegrityInnovationPerseverance

Evergreen Culture

LoyaltyDiligenceDedicationCaring

Corporate VisionTo become a globalleader in the high-qualitymanufacturing of lightweight

"sandwich" composite

materials.

About Evergreen Technology

Corporate Culture

Environmental, Social and Governance ReportAbout Evergreen Technology

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Operating revenue was RMB 530 million,representing a year-on-year increase of 2.44%.Net pro?t attributable to parent company wasRMB 72 million, representing a year-on-year increase of 7.99%.Basic earnings per share: RMB 0.58/share

Economic Performance

Governance Performance

Environmental Performance

Social Performance

Operatingrevenue

millionmillion

representinga year-on-yearincrease of

Total greenhousegas emission

Environmental-related investmentGreen transformationprojects investment

Invested in the constructionof photovoltaic project

Greenhouse gasemission intensity

Net pro?tattributable toparent company

2.44

%

representinga year-on-yearincrease of

727.99

%

earningsper shareRMB

0.58

/share

Proportion of femaledirectors on the board

board meetings

shareholders

meetings

material issues

supervisory boardmeetings

55.56%

times

timesterms

times

tons of carbon dioxideequivalent

tCO2e per million of revenue

2,472.114.66Compliance disposal rateof waste emissions

%millionRMB

millionapproximatelyRMB

1.0849

3.8382.988MW

PatentAuthorization

InventionPatents

Utility ModelPatents

12921108

95.6

scores

CustomerSatisfaction

Proportion offemale employees

Total employee training hours

Public welfare investmentTotal expenditureon safety productionTotal employeetraining expenditure

20.40

%

3,570hours

0.415

millionRMBRMBRMB

millionmillion

1.50911.025

About Evergreen Technology

Major Achievementsand ESG Highlights of 2023Highlights of 2023 Performance

Environmental, Social and Governance ReportAbout Evergreen Technology

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Proportion of female directors on the board: 55.56%Number of board meetings held:10 timesNumber of supervisory board meetings held: 9 timesNumber of shareholders' meetings held:4 timesInvited 475 stakeholders for material issue surveys, identifying 22 material issues

100% signing rate for Supplier Integrity Agreement and Employee Integrity Commitment Agreement

Total greenhouse gas emissions (Scope 1 + Scope 2): 2,472.11 tonsof carbon dioxide equivalentCompliance disposal rate of waste emissions: 100%Environmental-related investment: RMB 1.0849 millionConducted 5 green transformation projects, with a total investmentof approximately RMB 3.838 millionInvested in the construction of a 2.988 MW distributed photovoltaic project,with an average annual power generation of 1.7 million kWh

Greenhouse gas emission intensity: 4.66 tCO2e per million of revenue

ISO 9001 Quality Management System certi?cation since 2005IRIS ISO 22163 International Railway Industry Management System certi?cation since 2010

First domestic enterprise to receive DIN6701 adhesive quality management system certi?cation fromGermany's TBB Cert Certi?cation CenterTotal number of patent authorization: 129, including 21 invention patents and 108 utility model patentsCustomer satisfaction score of 95.6 pointsProportion of female employees: 20.40%Total employee training hours: 3,570 hoursTotal employee training expenditure:

RMB 0.415 millionTotal expenditure on safety production:

RMB 1.5091 millionPublic welfare investment: RMB

1.025 million

terms

terms

terms

RMBRMB

During the reporting period, Evergreen Technology was honored with several signi?cant awards and certi?cations, including Certi?ca-tion for China Green Building Materials Products, Certi?cation for Changzhou City Green Factory, Recognition as a specialized, re?nedand new small and medium-sized enterprise (SME) in Jiangsu Province, Recognition as a specialized, re?ned, and new SME in Chang-zhou City. Additionally, we participated in projects under the Changzhou City Science and Technology Plan and successfully passedthe acceptance inspection.

（Evergreen Decorating）（Evergreen Decorating）

（Evergreen Decorating）（Evergreen Decorating）

Jiangsu Province Specialized,

Re?ned and New SME

（Evergreen Technology）（Evergreen Technology）

（Evergreen Technology）（Evergreen Technology）

Changzhou City Specialized,

Re?ned and New SME

Jiangsu Province Specialized,

Re?ned and New SME

Changzhou City Specialized,Re?ned and New SME

Innovation and EntrepreneurshipCompetition Acceptance Certi?cate

Green Building MaterialsProduct Certi?cationChangzhou City Green Factory

2023 Changzhou CityStar Three-Star Enterprise

About Evergreen Technology

Major Achievementsand ESG Highlights of 2023Company Honors in 2023

Environmental, Social and Governance ReportAbout Evergreen Technology

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Responsibilityas the FoundationConstructing a New Corporate Order

Governance Section

Anti-corruptionCompliance GovernanceBusiness Ethics

Benchmarking against the United NationsSustainable Development Goals

The Chairman of the Company isfemale, with women comprisingof the board of directors.This brings diverse perspectivesand experiences to the Company'sdecision-making process, demon-strating the Company's commit-ment to gender equality and diver-sity.Inviting various stakeholders toparticipate in substantive issuesurveys, resulting in the collectionof questionnaires. After anal-ysis, materiality matrix were drawn.

Directors, supervisors and seniorexecutives participated in traininga total of 18 times, with a total of116 participants and a cumulativeduration of hours.

Establishing and continuouslyimproving the ESG managementframework, with the board of direc-tors as the highest decision-makingbody for ESG matters. The StrategyCommittee assists the board ofdirectors in formulating and super-vising ESG strategies.

Key Issues

Corporate GovernanceESG GovernanceBusiness Ethics and Anti-corruptionInformation Safety

body for ESG mattersbody for ESG mattersthe highest decision-making the highest decision-making

Corporate GovernanceThe Company strictly adheres to the requirements of relevant laws, regulations, and normative documents such as the Company Lawof the People's Republic of China, the Securities Law of the People's Republic of China, and the Guidelines for Corporate Governanceof Listed Companies. We have established and improved the Company's Articles of Association, the Independent Director System, andinternal control regulations, in accordance with legal requirements. Continuously enhancing the corporate governance structureensures the establishment of a clear and e?cient corporate governance mechanism with clear responsibilities and powers.

Evergreen Technology continuously improves its governance system to enhance governance standards, ensuring stable operationsand high-quality development. The Company has established a governance structure centered around the shareholders' meeting, theboard of directors, the supervisory board and the management team, forming an internal control system. The board of directors hasset up four specialized committees - the Nomination Committee, the Audit Committee, the Compensation and Assessment Commit-tee and the Strategy Committee - to standardize corporate governance and strengthen daily operational management and deci-sion-making on major matters. The management team strictly implements the resolutions of the board of directors, striving to achieveannual production and operational goals and enhance lean management while optimizing the industrial structure. Each governanceentity of the Company has clear division of responsibilities and boundaries, operates independently, collaborates, and checks andbalances each other.During the reporting period, the Company held a total of 4 shareholders' meetings, 10 board meetings, and 9 supervisory board meet-ings. The various special committees held a total of 10 meetings, and the independent directors held 1 special meeting. A total of 123proposals were deliberated, reviewing, deciding on, and approving matters related to the company's operations and development.

Governance Structure

Diverse Governance

Evergreen Technology considers board diversity as a key factor in enhancing board e?ciency, maintaining competitive advantage,and supporting sustainable development. To promote board diversity, the Company comprehensively considers various factors whenscreening board candidates, such as professional experience, skills, knowledge, gender, age, cultural background, ethnicity, and yearsof service, to build a diverse board structure. Currently, the board members possess expertise in various ?elds including economics,law, accounting, etc. Several directors also hold the European Adhesive Specialist (EAS) certi?cate. As of the end of the reportingperiod, the chairperson of the board is female, the board consists of 9 members including 3 independent directors, with women com-prising 55.56% of the board. Additionally, there is 1 female independent director to ensure the independence and fairness of theboard.

Shareholders

Meeting

Supervisory

BoardSecretaryto the Board

Board ofDirectors

GeneralManager

Nomination Committee

Audit Committee

Compensation andAssessment Committee

Strategy Committee

Marketing Department

Finance Center

Domestic Subsidiaries

Foreign Subsidiaries

Audit Department

Securities A?airs DepartmentSupply Chain CenterTechnology Research and Development Center

Human Resources and Administration Center

Strategy and InvestmentFinancing DepartmentOperations Department

board meetings

times

supervisory board

meetingstimes

special committees

meetings

times

independent directorsspecial meeting

times

Deliberating proposals

shareholders meetings

times

Evergreen Technology, guided by investor demands, has established the Information Disclosure Management System and the InvestorRelations Management System. These systems clearly de?ne the scope of information disclosure, the process for external informationsubmission, and con?dentiality measures to ensure the authenticity, accuracy, completeness and timeliness of company informationdisclosure. To establish e?ective communication channels with investors and potential investors, the Company has not only set up aninvestor relations management section on its corporate website but also receives and promptly responds to investor inquiries andsuggestions via email and the Interactive Easy platform. Additionally, the Company has established dedicated investor consultationtelephone and fax lines to facilitate investor inquiries, safeguard investor rights, and enhance good relations with investors.During the reporting period, the Company disclosed a total of 41 announcements, all of which were truthful, accurate, and complete,without any false records, misleading statements, or major omissions.

Investor Communication

The Organizational Structure of Changzhou Evergreen Technology Co., Ltd.

Environmental, Social and Governance ReportGovernance Section

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

ESG Governance

Evergreen Technology adheres to sustainable development as its core, dedicated to promoting the healthy development of society.We continuously explore and improve the Company's Environmental, Social and Governance (ESG) system, gradually enhancing itsESG governance level, and actively responding to the expectations of various stakeholders, working together to create a better future.

Evergreen Technology attaches great importance to ESG governance and continuously improves the Company's ESG managementframework and operating mechanisms. The Company clari?es the responsibilities of the board of directors and the Strategy Commit-tee in ESG governance, establishing the board of directors as the highest decision-making body for ESG, with the Strategy Committeeassisting the board of directors in formulating and supervising ESG strategies. Additionally, the Company has established an ESG Man-agement Team, with the Chairman serving as the head and the General Manager and the Secretary of the Board of Directors serving asdeputy heads. This committee is primarily responsible for key communication and coordination e?orts regarding ESG a?airs. Further-more, an ESG Working Group has been set up as an executive layer, with active participation from department managers. This group istasked with discussing, implementing and promoting ESG management matters within their respective departments.

ESG Management Framework

During the current year, the Company has identi?ed important stakeholders that interact with its operations, and speci?c communica-tion matters and channels are outlined in the table below:

The long-term sustainable development of Evergreen Technology relies on the trust and support of stakeholders. The Company hasidenti?ed key stakeholders including shareholders and investors, government and regulatory agencies, customers, employees, suppli-ers, industry partners, and communities. In order to understand and respond to the needs of various stakeholders in a timely manner,the Company actively communicates with them through various channels, taking their opinions and demands as driving forces forcontinuous improvement of ESG management.。

Stakeholder Communication

ESG Management Framework

Assist the board of directors in formulating sustainable development strategies,frameworks, and policies.Research and provide suggestions on the Company's overall ESG manage-ment objectives, strategies, and policies.Supervise the implementation of ESG practices and report to the board of directors atleast once a year on the above matters.

Board of Directors

Review and approve the Company's sustainable development strategies, goalsand signi?cant matters related to social responsibility.Regularly receive ESG work reports and receive updated information on ESGrisks and opportunities at least once a year.

Strategy Committee

ESG Management Team

Establish ESG implementation mechanisms and evaluate ESG managementmethods.Responsible for key communication and coordination of ESG a?airs.

ESG Working Group

Implement and promote ESG management matters.Actively respond to stakeholders' opinions and inquiries regarding the Compa-ny's ESG a?airs.

Stakeholder

Expectations and

Demands

Shareholders/Investors

Government and regulators

Customers

Continuous growth of businessperformanceOpen and transparent corporateinformationProtecting shareholders' rightsand interestsStandardise corporate governanceRisk prevention

Paying taxes in accordancewith the lawDrive employmentComply with the businessPromote economic developmentUndertake social responsibility

Maintain long-term goodco-operationProvide high quality product serviceHonest transactionProtect the legitimate rights andinterests of customersProduct quality and service management

Holds General Meeting ofShareholdersPublishes company announceme-nts and periodic reportsOrganises performancebrie?ng sessionsInvestor service hotlineInvestor on-site researchDisclosure of informationDaily communication and reportingCo-operation with regulatorybodies for veri?cationParticipation in governmentresearch activitiesPolicy implementationVisits and researchIssuance of compliance certi?catesEstablishment of CustomerEnquiry and Complaint HotlineCustomer satisfaction survey andcomplaint return visitVisit and researchProduct quality managementsystemCompany o?cial website andother media

Response andCommunication Approach

Environmental, Social and Governance ReportGovernance Section

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Material Issue Analysis

Material issues serve as the cornerstone for Evergreen Technology's ESG management and disclosure. Through continuous communi-cation with stakeholders and considering the Company's nature and industry characteristics, along with reference to domestic andinternational ESG standards, guidelines and industry trends, the Company has identi?ed 22 material issues from the three dimensionsof environment, society and corporate governance. These issues are compiled into a list of signi?cant ESG topics and are prominentlydisclosed in the report.The Company adheres to the principles of substance, completeness and stakeholder engagement. It formulates stakeholder question-naires based on these issues and invites stakeholders such as shareholders and investors, employees, customers, suppliers, businesspartners, industry associations, media and government o?cials to ?ll out the questionnaires. A total of 475 questionnaires werecollected. Based on the responses received, the Company conducts empirical analysis of the importance of these issues. The issuesare ranked and analyzed based on two dimensions: "Importance to the Sustainable Development of Evergreen Technology" and "Im-portance to Stakeholders", forming a material issues matrix.

Stakeholder

Expectations and Demands

Customers

Suppliers

Industry Partners

Communities

Protecting Employee Rightsand Bene?tsSound career developmentchannelsOpen communication channelsOccupational Health and Safety

Improve compensation andbene?t systemHold annual company meetingHolds labour union activities andsta? cultural and sports activitiesEmployee CongressEmployee satisfaction surveyConducting diversi?edemployee trainingMaintain long-term goodco-operationProcurement is fair andtransparentProcurement with integrityCompliance with business ethics

Develop procurement managementpracticeOpen and fair biddingSupplier vettingDaily communicationVisit and research

Mutually Bene?cial and Win-WinOpen communication channelsPromote the development ofthe industry

Active association activitiesParticipation in industryconferences

Focus on and support forcommunity development

Charitable givingParticipate in voluntary communityservice

Importance to stakeholders

Low level material issues

Highly material issues

Biodiversity Conservation

Employee DiversityCombating Climate ChangeCommunity Communication

Public Welfare Donation

Greenhouse Gas Emissions

Waste Management

Responsible Sourcing

Energy Management

Intellectual Property Protection

Anti-CorruptionTax TransparencyTalent Attraction and RetentionTalent Training and DevelopmentEmployee Rights and Bene?ts

Occupational Health and Safety

Product Safety and QualityProduct Eco-Friendly

R&D InnovationCompliance & GovernanceBusiness Ethics

Industry Promotion

Importance to Evergreen's sustainability

Response andCommunication Approach

Environmental, Social and Governance ReportGovernance Section

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Business Ethics and Anti-CorruptionEvergreen Technology strictly adheres to laws and regulations such as the Anti-Monopoly Law of the People's Republic of China, theAnti-Unfair Competition Law of the People's Republic of China, and the Interim Provisions on Prohibiting Commercial Bribery. TheCompany continuously improves its business ethics management system, clari?es employee ethical norms, and establishes a cleanworking style.

Evergreen Technology has established a comprehensive compliance management system and implemented the Internal ControlManagement Manual to ensure the legality and compliance of the Company's operations, asset security and the authenticity, accuracyand completeness of ?nancial reports and related information.

Legal and Compliance Operations

Regular or ad hoc self-assessment, external audits, and communication with businessdepartments are conducted to comprehensively identify compliance risks faced by theCompany. Risks are assessed and categorized accordingly.Compliance Risk Identi?cation and Assessment

Compliance policies are formulated or updated based on legal requirements, regulato-ry demands, and the Company's business development needs. This ensures clarityregarding compliance standards and requirements.

Regular compliance training and educational activities are organized to enhanceemployees' awareness of compliance and their capabilities in adhering to compliancestandards.

ComplianceManagement Mechanism

Enhanced Risk Management

In our daily operations, Evergreen Technology prevents risks by formulating and improving systems and processes. Additionally, theCompany supervises, inspects, reviews and evaluates daily contracts and business operations. Risk control is conducted throughmethods such as problem tracking and recti?cation, departmental improvements and performance assessments. The senior manage-ment and internal audit department assess and monitor various compliance risks, promptly identifying and correcting non-compliantbehavior to e?ectively control and prevent operational risks. During the reporting period, Evergreen Technology had zero signi?cantde?ciencies or material de?ciencies in both ?nancial and non-?nancial reports.The Company actively conducts internal risk control training to promote the construction of risk control. Through cooperation withexternal intermediary agencies and internal audit departments, the Company provides training to all employees to enhance theircompliance awareness and capabilities, thereby fostering the formation of an overall compliance culture within the Company. Addi-tionally, the Company's directors, supervisors, and executives actively participate in training activities organized by the Jiangsu StockAssociation, Jiangsu Securities Regulatory Bureau, Shenzhen Stock Exchange, and other external intermediary agencies to enhancetheir compliance awareness and improve their performance. As of the end of the reporting period, the Company's directors, supervi-sors, and executives participated in training 18 times, with a total of 116 participants, accumulating 195.5 hours of training.

Training from JiangSu Association for

Public Companies

Training from Intermediary Agencies

Signi?cant de?ciencies in ?nancial reporting

?nancial reports Numberof important defects

Non-?nancial reportingNumber of important defects

Signi?cant de?cienciesin non-?nancial reporting

0000

Trainingfrequency

Number oftrainees

Accumulatedduration

timeshours

persons

195.5

directors, supervisors, andexecutives participated in training：

Development andUpdating of Compliance Policies

Compliance Trainingand Education

Compliance Reportingand Improvement

Compliance Monitoringand InspectionThrough internal audits, external audits, and self-inspections by business departments,compliance risks in the Company's operations are monitored. Any non-compliantbehaviors are promptly identi?ed and corrected.

A compliance reporting mechanism is established to promptly report compliance risksand issues. E?ective measures are taken for improvement and prevention.

Environmental, Social and Governance ReportGovernance Section

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Protection of Whistleblowers

The Company has formulated the "Whistleblowing and Supervision Management Regulations" and established smooth channels forreporting and supervision, aiming to eliminate various illegal and criminal activities, actions that harm the interests of the Company,behaviors that harm employees, and violations of company management systems. We encourage all employees to report violations oflaws and regulations, company policies, and ethical standards, and take measures to ensure the con?dentiality of information aboutwhistleblowers, the security of reporting channels, and the protection of whistleblowers' personal safety.For reported incidents within the scope of acceptance, once veri?ed as true, we will provide corresponding rewards to the whis-tleblowers, especially for serious violations such as bribery, collusion, and misuse of public resources. To protect the interests of whis-tleblowers, the personnel handling reports will strictly keep con?dential the whistleblowers' names, units, contact information, andother personal information. Furthermore, investigations into incidents will be conducted without revealing the whistleblowers' identi-ties, ensuring that whistleblowers will not face any form of retaliation or reprisal for legitimate reports.

Integrity Culture Construction

Evergreen Technology attaches great importance to the construction of an integrity culture, strictly adhering to relevant laws andregulations such as the Anti-Unfair Competition Law of the People's Republic of China, the Interim Provisions on Prohibition of Com-mercial Bribery, the Anti-Monopoly Law of the People's Republic of China, and relevant provisions of the Code of Business Conduct.During the reporting period, the Company revised the Integrity Management Regulations, e?ectively ful?lling the requirements of fairtrade and integrity compliance, further standardizing the integrity practices of employees at all levels.As of the end of the reporting period, the Company had not been subject to any penalties for violations of relevant laws and regula-tions in the social and economic ?elds. We disseminate requirements for business ethics, anti-corruption, and other principles to allour employees and suppliers, actively promoting the signing of the Supplier Integrity Agreement and the Employee Integrity Commit-ment Letter, and working together with all stakeholders to promote the construction of an integrity culture.

Methods of Reporting:

Reports can be sent directly to the recipient via SMS or phone call, either anonymously or with real names.Phone or SMS:

Internal hotline:

0519-68867992

Supervision mailbox:

External hotline:

0519-68867993

Complaints can be submitted anonymously orwithreal names to the supervision mailbox,which is opened by supervisors once a week.

Email:

Electronic complaint materials can be sent to the Company'sgeneral manager's supervision mailbox or the Company'ssupervision email ([e-mail]).

Human Resources andAdministration Center:

Complaint materials can be submitted directlyto the o?ce.

Direct confrontation:

Whistleblowers can have face-to-face discussions withsupervisors and submit complaints directly to them.

Environmental, Social and Governance ReportGovernance Section

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Information Security

Evergreen Technology strictly adheres to relevant laws and regulations such as the Cybersecurity Law of the People's Republic ofChina, the Data Security Law of the People's Republic of China, and the Personal Information Protection Law of the People's Republicof China. During the reporting period, the Company revised the IT Management System to establish a rigorous information protectionsystem, ensuring the security of information and privacy for stakeholders. At the same time, the Company formulated the NetworkEmergency Response Plan based on actual conditions, requiring all departments to strengthen timely and comprehensive educationand guidance for their personnel to enhance security awareness.As of the end of the reporting period, the Company had not been subject to any penalties from relevant authorities for violations oflaws and regulations related to information security and privacy protection.

Emergency Measuresfor Network IncidentsWebsite Managementand Security Measures

Data Backupand Disaster Recovery

Websites are equipped with information auditors andsecurity managers.Strict implementation of computer network security management systems.Standardized management of internet access locationssuch as o?ces and computer rooms.Dedicated personnel and log retention forinternet-connected computers.

Establish sound mechanisms for timelybackup of important data and recovery of catastrophic data.

Prevention and Handling of

Harmful Informationand Malicious Attacks

Security Measures forComputer Network Equipment

Information o?cers in each department act as the ?rst lineof defense, promptly deleting harmful information afterpreserving original data.The IT department serves as the second line of defense,responsible for monitoring and auditing all information,promptly handling harmful information.

Ensure e?ective ?re, theft, lightning, andunauthorized access prevention for computer networkequipment.All con?dential computers are strictly prohibited fromaccessing the international internet, following the principlesof dedicated networks, machines, personnel, and usage,and implementing physical isolation.Computers connected to the international internet mustnot store ?les involving state secrets, work secrets,or business secrets.

Environmental, Social and Governance ReportGovernance Section

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Key Issues

Environmental Section

Benchmarking against the United NationsSustainable Development Goals

Greenhouse gas emissionsEnergy managementAddressing climate change

Conducted an environmental protection investment of RMB .Obtained ISO environmental management systemcerti?cation since 2020.Completed a MW distributed PV generation project, withan average annual power generation of million KWh.Conducted green transformation projects, with a total investmentof approximately RMB million.Continuously strengthening the construction of a green warehousingsystem, replacing traditional forklifts with new energy lithium electric forklifts,greatly reducing carbon emissions in the warehousing and transportation process.

1,084,9001,084,900

ISO 14001ISO 14001

.9882.988

..1 71 7

.8383.838

Deepening Green ManagementOptimizing Resource UtilizationWaste ManagementAddressing Climate Change

PracticingEnvironmental Protection

Pursuing Sustainable Development

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Deepening Green Management

Evergreen Technology strictly adheres to the provisions of multiple laws and regulations such as the Environmental Protection Law ofthe People's Republic of China, the Energy Conservation Law of the People's Republic of China, and the Water Pollution Preventionand Control Law of the People's Republic of China. We commit to actively adopting environmental protection technologies and mea-sures to reduce the negative impact on the environment in our daily production and operations. The Company's main products arelightweight "sandwich" composite materials, which align with the concept of green, energy-saving, and environmental protection.

Evergreen Technology places high importance on managing environmental aspectssuch as climate change and water resource protection. We have established andcommitted to continuously improving the organizational structure and policy mea-sures of the company's environmental protection management system. Both theCompany and its wholly-owned subsidiary, Evergreen Decorating, have obtained ISO14001 certi?cation for environmental management systems. Additionally, we havedeveloped a series of environmental-related system documents, including theResource and Energy Management System, Hazardous Waste Management System,Emergency Management System, Emergency Preparedness and Response ControlProcedures, and Emergency Plan for Sudden Environmental Incidents, to standard-ize environmental management practices. During the reporting period, the Compa-ny's environmental protection investment totaled RMB 1.0849 million.

Environmental Management System

Environmental Risk Management

We continuously improve and enhance the company's environmental risk management system and elevate management e?ective-ness by conducting regular environmental risk assessments, implementing risk mitigation measures, and developing environmentalemergency plans.During the reporting period, the Company completed the annual environmental risk assessment and prepared the Report on Assess-ment of Sudden Environmental Incidents, gaining a deeper understanding of our environmental risk status. This enabled us to identifyenvironmental risk prevention and control measures, laying the groundwork for subsequent environmental risk management and thedevelopment of environmental emergency plans. Our e?orts aim to prevent and minimize the occurrence of sudden environmentalincidents.

Routine

Workshops, warehouses, and o?ce areas are equipped with ?reextinguishers, indoor ?re hydrants, emergency lighting, ?re alarmsystems, and emergency pumps. Lightning protection andanti-static facilities are installed in main workshops.

Hazardous waste storage areas are equipped with ?reextinguishers, yellow sandboxes, and monitoring probes incollection trenches.

Outdoor ?re hydrants are available in the factory area.

Rainwater Outfalls,Sewage Inlets

Environmental Risk Prevention and Control Measures

ISO 14001Certi?cation for Environmental Management Systems

EnvironmentalProtection Facilities

Rainwater Outfalls have been installed.

Exhaust gas treatment facilities and sewage treatmentstations are established.

An emergency pool of approximately 270m

capacityis installed in the factory area.

Environmental, Social and Governance ReportEnvironmental Section

The Company implements the basic national policy on environmental protection and the environmental governance system. We com-prehensively strengthens environmental supervision and management, annually formulates environmental work plans and trainingplans, and sets environmental protection goals.

Environmental Protection Goals

The Company convenes an annual environmental protection training session for employees and management involved in environ-mental operations, focusing on environmental laws, company regulations, and professional knowledge. We aim to conduct environ-mental protection-related training to ensure that all employees fully understand national laws and regulations related to environmen-tal protection and increase their awareness of environmental protection. We seek to encourage employees to work together with theCompany to promote greening and sustainable development.

Environmental Protection Training

Our environmental protection goals include:

Our environmental protection training measures include:

The Company has established an emergency rescue organization, which consists of the Factory Emergency Leadership Group, Emer-gency Response O?ce, and various emergency specialized teams. Members of each group include department heads, workshopsupervisors, technical personnel, safety o?cers, and environmental personnel.

Environmental Emergency Response Mechanism

For the risk of hazardous chemical spills, the Company has a 270m

emergency pool, and the rainwater discharge outlet is equippedwith a control valve, which can promptly contain the leaked substances within the plant and pump them to the emergency pool usingan emergency pump. For the risk of ?re accidents, the Company has ?re hydrants and a certain number of ?re hydrants inside theplant to prevent insu?cient ?re?ghting water supply. For the risk of ?re and explosion accidents, the Company can close the valve ofthe rainwater discharge outlet to prevent pollutants from spreading to nearby water bodies. Additionally, the company has an emer-gency response team that arrives at the scene promptly to carry out emergency rescue operations.

Commander-in-Chief: General Manager of Evergreen Technology

Deputy Commander-in-Chief: Security Supervisor

EnvironmentalTechnology LeaderEHS Specialist

100% proper disposal of solid waste.Emission of exhaust gas and wastewater meeting standards.No chemical leakage accidents.No ?re or explosion accidents.Prevent major environmental pollution incidents.Eliminate environmental pollution caused by accidents such as explosions and ?res,conserve energy, reduce waste pollution, and control pollution sources to meetnational standards.Prohibit the unauthorized discharge of sewage and industrial water, preventing riverand water source pollution and blockages.Strictly control various channels of environmental pollution.Prevent and control the dumping and disposal of hazardous solidwaste, unauthorized disposal, and other environmental pollution activities.

Strengthening pre-job environmental knowledge training to ensure 100% coverage and maintaining training assessment records.Increasing environmental awareness through publicity, requiring each workshop to set up notice boards or slogans promotingenvironmental protection.Periodic environmental inspections conducted by environmental protection sta? to promptly rectify any issues found on-site andensure compliance with environmental governance standards.Assigning speci?c personnel responsible for sorting and storing solid waste according to its characteristics, with proper labeling,and standardizing the collection, packaging, and transportation of various types of solid waste in workshops.

EmergencyResponse Team LeaderEquipment Supervisor

Logistics Evacuation

Team LeaderQuality DepartmentManager

Emergency Support

Team LeaderProcurementDepartment Manager

EmergencyMonitoring Team

IT Specialist

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportEnvironmental Section

Emergency Rescue Organization Chart

Optimizing Resource UtilizationEvergreen Technology deeply understands the importance of reducing resource consumption for sustainable development. It activelyresponds to the national call by developing and promoting more environmentally friendly and energy-e?cient products and technol-ogies. We implement energy-saving measures within the Company and actively engage in digital transformation e?orts.Resource and Energy Management

Evergreen Technology has established and continuously improves its energy management system. We have formulated the Resourceand Energy Management Regulations to reasonably allocate and utilize resources and energy, thereby enhancing resource and energye?ciency. Additionally, we have formulated the O?ce Area Environmental Safety Management Regulations, which stipulate require-ments for energy consumption, waste emissions, and o?ce environment safety concerning paper, water, electricity, and otherresources. Furthermore, we have formulated the Energy Consumption Reduction and Greenhouse Gas Emission Management Proce-dures to carry out energy conservation and emission reduction initiatives, thereby reducing the adverse environmental impact of ourdaily production and operations.The Company's main sources of energy and resources include electricity for production, water resources, o?ce paper, and raw materi-als. The administration department is responsible for monitoring electricity and paper consumption. The warehouse is responsible formonitoring the consumption of raw materials. The supply chain center is responsible for the rational procurement of materials. Otherrelevant departments are responsible for monitoring, planning, and conserving energy and resource consumption within their respec-tive departments. During the reporting period, the company purchased 4,298.62 MWh of electricity, used 11.17 tons of gasoline, 5.37tons of diesel, 148,800 m

of natural gas, and consumed 39,016 tons of water resources.At the beginning of each year, the Company's Human Resources and Administration Center formulates an annual Environmental Man-agement Plan to establish goals and targets for energy and resource conservation based on the previous year's average consumptionlevels.

4,298.62

5.37

39,016

MWh

tons

m

purchased electricity

11.17

tons

used gasoline

used diesel

used natural gas

used water resources

tons

The installation points of the Company's electricity monitoring equipment should comprehensively cover major production facilitiesand pollution control facilities. Core electricity monitoring devices should be installed for total electricity consumption, productionlines involving air pollution (production processes, production equipment), and corresponding pollution prevention and control facili-ties. By monitoring the total electricity consumption of the company and the electricity consumption of the pollution generation andpollution control ends in real-time, ensure that production facilities and pollution control environmental facilities are simultaneouslyoperational, achieving green production and standard emissions.

Environmental Facilities: Online Electricity Monitoring Devices

Pollution generation location:

Honeycomb cutting room electrical cabinet

Energy and resource conservation measures:

Electricity for production:Ensure that if one machine can handle production tasks, avoid turning on additional machines unnecessar-ily. Control the use of lighting and machinery to the minimum necessary level. Implement a responsibility system for machine andlighting electricity usage, with designated personnel for con?rmation.Water resources:Install "water-saving" signs at various water usage points. Regularly inspect and prohibit any dripping water phenom-enon. Promptly contact relevant departments for repairs upon discovering leaks.O?ce paper:Enhance education on paper-saving plans in each department. Utilize double-sided printing and use recycled paperwhenever possible.Raw materials:Strengthen control over materials in the production process. Keep track of and analyze production defects, aiming toreduce defect rates. Minimize the consumption of trial materials during production changes and utilize production waste and scrapse?ectively.

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportEnvironmental Section

148,800

Pollution control location:

Adjacent to the bonding room

Waste ManagementThe Company strictly adheres to the requirements of laws and regulations such as the Environmental Protection Law of the People'sRepublic of China, the Air Pollution Prevention and Control Law of the People's Republic of China, and the Identi?cation Standards forHazardous Waste issued by the Ministry of Ecology and Environment of the People's Republic of China for waste management. Ever-green Technology is not classi?ed as a heavily polluting industry. The wastewater, exhaust gas, solid waste, and other byproducts gen-erated during the Company's production process are all subjected to classi?cation processing. After processing is complete, they areeither discharged in compliance with standards or transferred in a regulated manner.

Waste Management System

The Company continuously improves its waste management system and measures. We have established a series of systems such asthe Responsibility System for Waste Management Positions and the Control Procedures for Solid Waste Management. By implement-ing compliant waste management practices, we aim to safeguard the health of our employees and reduce waste pollution in thesurrounding environment.

The Company actively utilizes clean energy to reduce the negative environmental impact of greenhouse gas emissions. As of now, theCompany has completed a 2.988 MW distributed PV power generation project, with an annual average electricity generation of 1.7million KWh.

Clean Energy Utilization

The Company has 7 sets of waste gas disposal equipment, including activated carbon adsorption, catalytic oxidation, ?lter cotton &NaClO spray & water spray & activated carbon adsorption, bag dust removal, two-stage high-e?ciency ?lter precision ?ltration,two-stage activated carbon adsorption, and smoke puri?er, to comprehensively treat welding fumes, organic waste gases, and othergases generated during the production process.

Waste Gas Management

Waste Management Responsibilities

Supervising Leadership: Responsible for establishing and improving waste management procedures, establishing and enhancing wastemanagement teams, organizing training for technical personnel in waste management, strengthening employee environmental education, andinspecting and assessing the company's environmental performance.

Waste Treatment Operators: Regularly review waste monitoring results, conduct routine inspections and maintenance of waste treatmentfacilities, and promptly report any abnormalities to the supervising leadership.

Supervising Department: Conducts environmental awareness campaigns, conducts on-site inspections to understand the operation of wastetreatment facilities, and assesses wastewater treatment operations.Monitoring Personnel: Regularly inspects, records, and reports on waste discharge situations, collects routine data samples daily, maintainsledgers, and reports to higher authorities periodically.

In May 2023, the Company installed wastegas treatment equipment in the hazardouswaste warehouse. We adopted a secondaryactivated carbon adsorption device tocollect and purify volatile organic com-pounds and particulate matter inside thehazardous waste warehouse, furtherenhancing the e?ciency of waste gas emis-sion.

Environmental Facilities:

Waste Gas Treatment Equipment

2.988

MWdistributed PV power generation project

1.7

million KWhannual average electricity generation

Environmental, Social and Governance ReportEnvironmental Section

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

The Company's wastewater mainly consists of domestic sewage. Production wastewater generated by the Company includes surfacetreatment process wastewater, ground cleaning wastewater, spray wastewater, boiler circulating water, and pure water preparationsystem drainage. Both production wastewater and domestic sewage are treated at the on-site sewage treatment plant before beingdischarged into the centralized treatment facility at the Sewage Treatment Plant in Changzhou City. Rainwater collected through theon-site stormwater drainage network is also directed into the municipal sewage network and treated at the Sewage Treatment Plantin Changzhou City.The Company owns a self-built sewage treatment plant, which employs the treatment process of "primary sedimentation & contactoxidation & secondary sedimentation." The concentration of pollutants in the Company's wastewater is relatively low, and after treat-ment at the sewage plant, it consistently meets the standards for handover to the Sewage Treatment Plant in Changzhou City. Duringthe reporting period, the company discharged a total of 7,980 tons of wastewater.

Wastewater Management

The solid waste generated in the Company's production process mainly includes waste packaging materials, waste edge materials,dust collected from dust removal, welding slag, waste cutting ?uid, waste tank sludge, waste ?lter cotton, waste cleaning cloths,gloves, mops, waste activated carbon, waste packaging barrels, waste water treatment sludge, and domestic garbage.The waste packaging materials, waste edge materials, and dust collected from dust removal are outsourced for comprehensive utili-zation after collection. The waste cutting ?uid, waste tank sludge, waste ?lter cotton, waste cleaning cloths, gloves, mops, waste acti-vated carbon, waste packaging barrels, and waste water treatment sludge are transported and disposed of by quali?ed units. Thedomestic garbage generated is uniformly cleared by the sanitation department.The Company has established the Hazardous Waste Management System to standardize the management of hazardous waste dispos-al. An independent hazardous waste warehouse has been set up, and professional hazardous waste managers are appointed to over-see its operations. After hazardous waste is generated, it is classi?ed, placed on pallets, weighed, and then stored in the hazardouswaste warehouse with proper documentation. During transportation, all hazardous waste must be sealed and packaged to preventchemical spills. Additionally, hazardous waste labels are a?xed to each pallet to ensure proper identi?cation and classi?cation, thusensuring safe handling and transportation. Through these measures, the potential harm of hazardous waste to human health and theenvironment is minimized. During the reporting period, the total amount of hazardous waste generated by the company was 77.16tons, all of which were disposed of in compliance with regulations.

Solid Waste Management

The Company has implemented several green transformation projects aimed at reducing greenhouse gas emissions and wastedischarge, thus minimizing its environmental impact. During the reporting period, the company conducted 5 green transformationprojects, with a total investment of approximately RMB 3.838 million. Additionally, the Company continues to strengthen the construc-tion of a green warehousing system by replacing traditional forklifts with new energy lithium electric forklifts, signi?cantly reducingcarbon emissions in the warehousing and transportation processes, and actively responding to the national "Double Carbon" strategyinitiative.

Green Transformation Project

The green transformation projects we have implemented include:

3.838

green transformationprojects

approximately RMB

million

Installation of waste gas collection and treatment equipment in the hazardous waste warehouse toachieve organized emissions.

Expansion and renovation of the company's emergency pool to meet the company's emergencyhandling requirements.

The upgrading, renovation, and relocation of wastewater treatment equipment have further enhancedthe Company's level of wastewater pollution prevention and control.

Replacement of old equipment with ?ve new dust-collecting CNC machines in the CNC machining center,improving workshop environment.

Replacement of outdated equipment with enclosed chip removal devices in the machining center forpro?le processing.

Environmental, Social and Governance ReportEnvironmental Section

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Addressing Climate Change

The Company's products are mainly applied in the ?elds of rail transportation and building decoration. With the rapid development ofthe economy, issues such as greenhouse gas emissions and noise pollution have attracted increasing attention. The overall trend inthe domestic rail transportation and construction industries is shifting towards low-carbon, environmentally friendly, and energy-e?-cient practices. The "sandwich" composite materials independently developed by the company belong to a new type of lightweightcomposite material, which is of great signi?cance for reducing weight, noise, energy consumption, and enhancing safety in buildingsand vehicles.As a global strategic partner of the ALSTOM Alliance,, our company actively responds to the European Carbon Border AdjustmentMechanism (CBAM) policy. We increasingly adopt green and energy-e?cient process designs throughout the product lifecycle toreduce and minimize carbon emissions generated during the process, aiming to achieve carbon reduction and zero-carbon goals.The main sources of greenhouse gas emissions for the Company are electricity consumption in the o?ce area and production. Duringthe reporting period, the total carbon emissions of the Company amounted to 2,472.11 tCO2e. Of this total, Scope 1 emissionsaccounted for 379.12 tCO2e, representing 15.34% of the total emissions, while Scope 2 emissions amounted to 2,092.99 tCO2e, repre-senting 84.66% of the total emissions. The greenhouse gas emission intensity per RMB million of revenue (Scope 1 and Scope 2) was

4.66 tCO2e.

Scope of A?liation

Scope 1Gasoline34.7339.9235.73

18.75 19.6911.72

325.64375.94309.09

379.12435.55356.542,092.992,346.152,451.502,472.112,781.702,808.04

dieselNatural Gas/PurchasedElectricity/

Scope 1Scope 1Scope 1 TotalScope 2Total (Scope 1 + Scope 2)

Type

Carbon Emissions（tCO2e）202320222021

1. Scope 1 and Scope 2 data cover Evergreen Technology and its wholly-owned subsidiary Evergreen Decorating.

2. The emission factor for purchased electricity is 0.5703 tCO2/MWh, taken from the Notice on the Management of Greenhouse Gas

Emission Reporting for the Power Generation Industry Enterprises for 2023-2025 (Climate O?ce Climate Letter [2023] No. 43).

The greenhouse gasemission intensityper RMB millionof revenue

4.66

(Scope 1 and Scope 2)

Scope 1emissions

Scope 2emissions

379.12

15.34

%

ofthe total emissions

ofthe total emissions

2,092.99

84.66

%the total carbon

emissions

tonstonstons

tons2,472.11

Environmental, Social and Governance ReportEnvironmental Section

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Social Section

Expanding into more application areas through targeted technical development.The Company has already ventured into the supporting businesses for maritime vessels.

Creatingthe Future TogetherEmbracing Social Responsibility

Benchmarking against the United NationsSustainable Development Goals

Pursuing Excellent Quality

R&DInnovation

Occupational Healthand Safety (OHS)

QualityControlEmployee Recruitmentand Development

Intellectual PropertyProtection

ResponsibleProcurementRural RevitalizationServices

CommunityEngagement

CharitableDonations

The Company carries out various trainings, the training coverage rate and participationrate both reached .100%100%

Acquired Quality Management System Certi?cation,International Railway Industry Standard Certi?cation, and Occupational Healthand Safety Management System Certi?cation.

ISO 9001ISO 9001IRIS ISO 22163IRIS ISO 22163

ISO 45001ISO 45001

The Company had a total of employees, among whom the proportion of femaleemployees reached .

20.40%20.40%

The total investment in the Company's safety production is RMB million.

1.50911.5091

The total social welfare investment of the Company is RMB million.

1.0251.025

The ?rst domestic enterprise to receive the Adhesive Quality ManagementSystem quali?cation certi?cate issued by the German TBB Cert Certi?cation Center.

DIN6701DIN6701

Building a Happy WorkplaceCollaborate with Partners toAchieve Mutual Success

Key Issues

Wholly-owned subsidiary Evergreen Decorating was awarded the by our client for the year 2023.

The Company established a new R&D workshop for double-curved panels, primarilyaddressing the pre-roll coating process for metal curved surface preforming, the adhesiveprocess for curved metal honeycomb panels, and the secondary forming process for curvedhoneycomb panels.The Company focused on improving the construction of intelligent workshops and enhanc-ing its IT capabilities, comprehensively promoting the Company's digital transformation.

Pursuing Excellent Quality

Evergreen Technology places a high emphasis on product quality and innovative development. We actively respond to national indus-trial policies promoting energy conservation, environmental protection, green low-carbon initiatives, as well as lightweight andassembly-oriented manufacturing. Through continuous technological and equipment upgrades, we consistently enhance productquality and competitiveness. Our products have been recognized as pioneering examples of domestic production in the industry, andwe hold multiple certi?cations from internationally renowned institutions and clients for product quality assurance.

Prioritize Quality Control

Evergreen Technology obtained the ISO 9001 Quality Management System certi?cation since 2005 and the IRIS ISO 22163 Internation-al Railway Industry Standard certi?cation since 2010. Both certi?cations underwent annual audits during the reporting period.Evergreen Technology is the ?rst domestic enterprise to receive the DIN6701 Adhesive Quality Management System quali?cationcerti?cate issued by the German TBB Cert Certi?cation Center. It actively promotes high-quality product standards in the industry.The Company is committed to continuously improving its quality management system. To achieve this, we have established the Con-tinuous Improvement Control Procedure to enhance work performance and product compliance, and to increase customer and otherstakeholders' satisfaction. The General Manager is responsible for creating an atmosphere of continuous improvement throughoutthe company, making decisions on major improvement projects, and organizing the planning of system and product continuousimprovement. The Quality Department is responsible for developing and implementing the annual system improvement plan, whileeach department is responsible for execution.

To ensure product quality, core processes of the product are manufactured by the Company, while some non-core processes are out-sourced. The Company has established a series of procedural documents such as the Production Planning Control Procedure and theProduction Process Control Procedures to ensure the quality and timeliness of product manufacturing. Additionally, the company hasdeveloped an Outsourcing Control Procedure to conduct comprehensive audits and evaluations of external vendors, ensuring thatoutsourced products meet the company's quality management system requirements.Evergreen Technology has established the Process Discipline Inspection and Incentive Management System to uphold the seriousnessof the process and ensure orderly production and stable improvement in product quality. The process group of the company's QualityDepartment is responsible for process discipline inspections and supervision. They conduct monthly process discipline inspections.Upon identifying issues during on-site inspections. They issue Process Discipline Inspection PDCA Forms, and arrange for correspond-ing workshops or departments to rectify them. Positive or negative performance incentives are implemented based on the monthlyimplementation rate of process discipline and the completion status of recti?cations in each workshop. This collective e?ort acrossdepartments and workshops drives the steady improvement of product quality.The Company conducts external training for team leaders and middle-level functional sta? on quality management systems and qual-ity awareness. Additionally, internal training sessions on quality management and product quality control are organized. During thereporting period, the Company conducted a total of 2,180 hours of quality training, with 728 participants. The company plans to con-duct training on quality management systems, skill enhancement, and related topics in 2024.

（2）Quality Control

（1）Quality Management System

ISO 9001

Quality Management System Certi?cation

IRIS ISO 22163

DIN6701

The ?rst German TBB Cert certi?cation in China

persons

Number of participantsin training

Company qualitytraining duration

2,180

Environmental, Social and Governance ReportSocial Section

International Railway

Industry StandardCerti?cation

Adhesive Quality Management System Quali?cation Certi?cation

hours

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

High-Quality Customer Service

Evergreen Technology's main customers are spread across multiple countries globally as well as domestically. We continuously devel-op and upgrade new products based on the latest market information, ensuring that our technology and products align with the latestuser demands. This enhances customer stability and loyalty, while also laying a solid foundation for expanding into new customerbases.During the reporting period, the Company primarily sold products to clients such as CRRC, Alstom Group, Jangho Group, and ChinaRailway Construction Engineering Group. As of the end of the reporting period, Evergreen Technology was the sole domestic supplierof heated composite ?ooring for the Bombardier (now acquired by Alstom), as well as Alstom's procurement of modular composite?ooring and modular heated composite ?ooring. Evergreen Technology has become a global strategic alliance partner of AlstomAlliance.In addition to solidifying cooperation with major clients such as Alstom, the Company is actively seeking opportunities to collaboratewith other foreign clients. During the reporting period, the Company became quali?ed suppliers for CAF and Talgo.

（1）Customer Relationship Maintenance and Expansion

Evergreen Technology adheres to the business development goal of "Focusing on the R&D Of "Sandwich" Composite Materials, Striv-ing to Achieve Multi-Domain Applications." We actively respond to national industrial policies promoting energy conservation, envi-ronmental protection, green low-carbon initiatives, as well as lightweight and modular construction. We actively expand our portfolioof material products for emerging application areas such as specialty vehicles, ships and cruise liners, and photovoltaic and windpower industries.The Company has established the New Product Development Control Procedure. Following this procedure, we transform custom-er-required "design inputs" into "design outputs" ?les that the Company can procure, manufacture, test, and accept. By adhering tothis procedure, we ensure the orderly progress of the Company's product development process, control the quality at the source, andprevent the occurrence of quality issues in batch production. We extensively collect customer market feedback, promptly provide thelatest market information for production and research and development, and strictly adhere to the company's system requirementsto ensure the quality of new products.The Company strategically penetrates into specialized ?elds such as specialty vehicles, maritime vessels, and the photovoltaic andwind power industries through targeted technological development, expanding into more application areas. During the reportingperiod, the Company has already ventured into the supporting businesses for maritime vessels.

（2）Expansion of Business in Emerging Fields

Evergreen Technology has formulated the Customer Satisfaction Control Procedure. According to this procedure, the Company con-ducts at least one customer satisfaction survey annually. Based on the feedback and suggestions provided by customers, correctiveand preventive measures are devised. This aims to achieve continuous improvement in the company's products and services, enhanc-ing customer satisfaction.During the reporting period, Evergreen Technology achieved an average customer satisfaction score of 95.6, meets the Company’scustomer satisfaction KPI target requirements.

（3）Customer Satisfaction Survey

An appreciation letter from CAF An appreciation letter from ALSTOM

awarded the 'Excellence in Quality Award' by our client for the year 2023

2021

2022

2023

94.9

96.2

95.6

score

scorescore

Customer satisfactionCustomer satisfactionCustomer satisfaction

score

95.6

average

customer

satisfaction

score

Customer Appreciation LetterWholly-owned subsidiary Evergreen Decorating

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

Customer Appreciation Letter

For quality issues raised through customer complaints, the Marketing Department noti?es the Quality Department to record them inthe Customer Complaint Statistics Form, and responds according to the regulations.Evergreen Technology has established the Non-Conforming Product Control Procedure. We adhere to this procedure to standardizethe process of handling non-conforming products, preventing their unintended use and delivery, thereby enhancing customer satis-faction and reducing customer complaints. It is the responsibility of any department within the company to report any identi?ednon-conforming products to the Quality Department. The Company categorizes non-conforming products based on safety, environ-mental requirements, ?ame retardancy, quality hazards, product structure, etc., and then takes actions such as returns, rework, repair,concession acceptance, or scrapping.

（4）Customer Complaint Handling

The Company is committed to responsible marketing, ensuring transparency in product labeling. We have established the Labelingand Traceability Control Procedure to label products, preventing the mixing and misuse of products from di?erent batches or status-es, and ensuring traceability of the product formation process when needed. The methods of product labeling include material label-ing cards, tags, engraving, etc. Product labeling requirements include at least the company name or logo, material number/drawingnumber/model/production order, year/batch number, and the inclusion of production dates and expiry dates for chemicals such asadhesives and paints.Through the above-mentioned methods, we ensure that customers and end-users can access information about safe usage, environ-mental compliance, material identi?cation, etc. Additionally, the company clearly showcases key social and environmental perfor-mance indicators in ESG reports, enabling customers to make informed purchasing decisions. During the reporting period, the compa-ny did not experience any violations related to product and service information or labeling.

（5）Responsible Marketing

Recall Procedure

Recall

Physical review

Repair

Scraphandling

Inspectionpassed

Rework

Delivery

Obtain customerconsent

Issue recall noticeto customersOrganize project team reviewCustomer complaint/Internaldiscovery of non-complianceProduct Recall Procedure：

During the reporting period, Evergreen Technology receiveda total of 37 customer complaints, which decreased by 17.8%compared to the previous year. The customer complaintacceptance rate was 100%.。

Technological Innovation and Product Development

The Company stipulates and commits to prioritizing consumer health and safety in the process of product innovation and researchand development. Secondary considerations include standards such as ?re prevention, environmental protection, and noise reduc-tion.For consumer health and safety, we ensure that emergency doors do not open unexpectedly and that vehicles operate safely. Weadopt redundant designs for door locks, and structural components have a safety factor of 1.5 times or higher.In terms of ?re prevention, we conduct ?ame retardant tests according to various standards such as TBT3237, TBT3138, andEN45545-2 for di?erent materials to meet the ?re performance requirements of our products. Additionally, to enhance ?re resistance,we prioritize the use of materials with excellent ?re performance during product development. For example, we use aluminum alloy orstainless steel for metal parts and ?ame-retardant ?re-resistant materials for non-metal parts, submitting samples to third-party labo-ratories for testing before use.In the area of environmental protection, we strictly adhere to standards such as TB/T 3139-2021 for non-metallic materials in locomo-tives and indoor air pollutant limits, as well as EU Reach and RoHS standards. We prioritize the use of lightweight metal parts and envi-ronmentally friendly materials for non-metal parts, submitting samples to third-party laboratories for testing before use.For noise control, we incorporate materials with good sound insulation properties or sound-absorbing materials into the basic struc-ture for noise reduction.

（1）Key Directions for Innovative Research and Development

security

health

noisereduction

?reproof

environmentprotection

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

During the reporting period, the Company established a new R&D workshop for double-curved panels, primarily addressing thepre-roll coating process for metal curved surface preforming, the adhesive process for curved metal honeycomb panels, and thesecondary forming process for curved honeycomb panels. Additionally, the Company expanded its scope of type testing to includedynamic and static load testing, fatigue testing, salt spray testing, high and low-temperature testing, as well as coordinate measuringmachine and projector dimensional testing. These expansions provide high-quality technical support and testing assurance for thedevelopment of new products and optimization of existing ones.

During the reporting period, the Company's new product R&D situation is as follows:

Evergreen Technology

Subsidiary Evergreen Decorating

Subsidiary TrainFX (Anhui)

Retractable Handrails

Installed at the front doors of railcars, facili-tating the driver's inspection when disem-barking at locations without platforms. Canbe retracted and hidden when not in use tosave internal space of the vehicle.

Shock-absorbing Stairs

Used in high-capacity double-decker trainsand double-decker tourist coaches, facili-tating passenger access to the secondlevel.

Cork Core Interior WallPanels for Rail Vehicles

Excellent thermal insulation properties,conducive to interior insulation; lowsurface density, bene?cial for weightreduction and energy saving of vehicles,with a focus on environmental protection.

Foldable Partitions

Serve to isolate other passengers, protect-ing disabled individuals from overcrowd-ing; also applicable for segregation in VIPareas of high-speed or bullet trains.

Framework Foam Core Flooring

Maintains thermal insulation properties,reduces ?oor weight, saves energy requiredfor vehicle operation, and enhancesmechanical properties such as resistanceto delamination and bending.

Heated Seats

Utilizes ?exible heating membranes to heatseat surfaces and backrests to 30°C,improving passenger comfort.

Unitized Honeycomb Panel

Suspension System

Factory-prepared unitized system, provid-ing high assembly precision and savingon-site construction costs.

Manufacturing Process for Rock-type

Stone Honeycomb Panels

Addresses safety application challenges ofloose stone materials in interior and exteri-or decoration.

Eaves Stone Honeycomb

Panel Module System

Utilizes various production moldingand assembly techniques.

Intelligent Rubber-Wheel

Train Test PlatformUsed for current tramcars, rubber-wheelvehicles, and airport shuttle buses, amongother vehicle types.

Self-cleaning Onboard Television

Utilizes air?ow to automatically clean dustfrom the surface of the device.

Onboard Headrest Display

Display screen used for commercial vehicles.

Curved Composite Panel

Molding TechnologyMeets the diverse needs of architecturaldecoration styling, catering to designers'pursuit of diverse design elements.

Multi-fold HoneycombPanel Molding Technology

Requires integrated pre-molding due tolimited internal cavity space, ensuring highassembly precision.Stainless Steel Honeycomb Panels for Exterior Wall DecorationMeets the speci?c requirements of di?erentcustomers for surface treatment, adhesiveperformance, and installation structure.

Multi-functional Berths

Incorporates ?ame-retardant foam, envi-ronmentally friendly and compliant withrelevant standards, enhancing comfort,convenience, and versatility.

Integrated Self-retracting

Wide Escape SystemImplements one-touch retraction function,saving maintenance costs and improvingmaintenance e?ciency.

As a pioneer in the development and application of “sandwich” composite materials in China, Evergreen Technology attaches greatimportance to enhancing its innovation and R&D capabilities, as well as protecting its intellectual property rights. The Companyassigns dedicated personnel to handle patent applications and maintenance, and signs con?dentiality agreements with relevantemployees to ensure the security of the Company's core technologies, thereby creating a strong foundation for research and develop-ment activities.The stone honeycomb composite panels developed by the Company have been applied in the Shaanxi Telecom Network Manage-ment Building, while the aluminum honeycomb composite panels have been applied in the ?ooring and ceiling of subway vehicles inGuangzhou Metro Line 2 and Shenzhen Metro Line 1, marking the ?rst domestic application of aluminum honeycomb compositematerials in rail transportation in China. As of the end of the reporting period, Evergreen Technology has a total of 129 patents, includ-ing 21 invention patents and 108 utility model patents.

（2）Patent Authorization and Intellectual Property Protection

The Company is the ?rst domestic enterprise to apply "sandwich" lightweight composite materials to the ?eld of architectural decora-tion. It is a participating unit in the national standards for aluminum honeycomb panels and stone honeycomb panels. It has succes-sively participated in the formulation of standards such as "Ultra-thin Natural Stone Composite Panels" (JC/T1049-2007), "Stone Hon-eycomb Composite Panels for Architectural Decoration" (JG/T328-2011), "Aluminum Honeycomb Composite Panels for Building Exte-rior Walls" (JG/T334-2012), and "Technical Speci?cation for Curtain Wall Engineering of Engineered Panels" (JGJ336-2016).During the reporting period, two industry standards co-authored by the Company were o?cially released. "TCBDA 67 - 2023 TechnicalRegulations for Component Glass Curtain Wall Installation" can ensure safe, applicable, reliable, technically advanced, and economi-cally reasonable installation of component glass curtain walls. "Technical Speci?cation for Escalators for Metro Use - TCEA 301—2023"combines domestic characteristics with foreign experience to propose technical speci?cations for metro escalators. As of the end ofthe reporting period, the Company has participated in the formulation of 2 national standards and 4 industry standards.

（3）Participation in Standardization

securityapply

qualityreliable

technology

advanced

economicreasonable

Patentauthorizations

Inventionpatents

Utility modelpatents

12921108

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

items

items

items

Key initiatives of the Company's digitaltransformation during the reporting

period include

During the reporting period, the Company focused on improving the construction of intelligent workshops and enhancing its IT capa-bilities, comprehensively promoting the Company's digital transformation.

（4）Digital Transformation

SRM(Supplier Relationship Management System)

Introduction of the SRM system to review supplier quali-?cations, communicate procurement demands, guidesuppliers in signing procurement contracts, andmanage goods receipt. Within the production workorder system, production progress can be tracked at theprocess level based on production plans, facilitatingfunctions such as personnel piece-rate wage calculationand quality issue tracing.

ERP

Implementation of an ERP system to aggregate ?naldata transmitted from various systems, manage theinbound and outbound logistics of raw materials and?nished products, and provide data support for costanalysis to assist in formulating procurement and pro-duction plans.

Design end

Adoption of CAXA CAD, CATIA, AutoCAD in conjunctionwith PLM for the management of drawings, projects,materials, and bills of materials (BOMs).

Other software andhardware equipment systems

Utilization of o?ce software, enterprise email, dataencryption, behavior control, data backup, and ?rewallto ensure the company's normal operations.

Building a Happy WorkplaceEmployees are the most precious resource of any enterprise and the critical driving force behind its development. Evergreen Technol-ogy is committed to legally protecting the rights and interests of its employees. We strive to create a harmonious, equitable, anddiverse working environment that fosters growth and opportunities for all. Additionally, we place great importance on democraticcommunication with our employees, encouraging them to unleash their full potential and creativity. Through this approach, we aim toachieve mutual progress and development alongside our valued team members.

Compliant Employment

Our Company boasts a diversi?ed employee management system and has formulated the Regulations on the Prohibition of ChildLabor Use. These regulations mandate that all departments, production workplaces, and potential external contractors/suppliers ofthe company are prohibited from using child labor in any position or capacity.

（1）Compliant Recruitment

Our Company strictly adheres to laws and regulations such as the Labor Law of the People's Republic of China and the Labor ContractLaw of the People's Republic of China. Based on our actual operational circumstances, we have formulated a series of systems includ-ing the Recruitment Management Regulations, Promotion Management Regulations, Performance Evaluation Management Regula-tions, and Employee Handbook. In accordance with regulations listed above, Evergreen Technology promises and insists that inemployee recruitment, promotion, and daily work, no one will be subjected to any unfair treatment, such as discrimination or bully-ing, due to di?erences in gender, skin color, nationality, ethnicity, cultural background, religious belief, or family situation.

The Company's preventive and remedial measures against the use of child labor:

The Human Resources Department and sta? across departments will conduct a uni?ed general survey of new employ-ees within one month, and conduct spot checks after one month depending on the situation.If it is found that a juvenile or child under the age of 16 has been mistakenly hired, the company will immediately settleall salaries and take remedial measures. Remedial measures include, but are not limited to: sending someone to escortthe child labor back to their original place of residence and having their parents or guardians sign for receipt; providingsupport based on the circumstances, such as supporting the child labor to continue receiving school education, etc.According to the latest recruitment system, the Company only hires adults aged 18 and above. The Company has signed the Commit-ment to the Prohibition of Child Labor, promising that since its establishment, neither the Company nor any of its subsidiaries haveever engaged in child labor. During the reporting period, the Company did not experience any incidents of hiring child labor, genderdiscrimination, or any other non-compliance with labor standards.

During recruitment, strict veri?cation of candidates is conducted, including checking their ID cards, photos, householdregistration information, and other relevant details. Only after con?rming that all information is authentic and compli-ant, can the candidate be allowed to join the company.Require applicants to accurately ?ll out the "Employee Entry Registration Form" and register in the company's "Employ-ee Roster" for record-keeping purposes.

Preventive

measures

Remedialmeasures

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

(Enterprise Resource Planning)

During the reporting period, the Company had a total of 755 employees, among whom the proportion of female employees reached

20.40%, and the proportion of local employees accounted for 29.27%. There were 5 employed veterans and 20 employees from pov-

erty-stricken areas. The data of all employees divided by gender, age, and class of position is shown in the following chart:

During the reporting period, the Company had a total of 299 newly recruited employees. The data of newly recruited employees divid-ed by gender and age is shown in the following chart:

MaleFemaleAged 31 to 40Aged 41 to 50Aged 50

and aboveAged 30and below

Male

79.60%

Aged 31 to 40

29.67%

Aged 41 to 50

29.40%

Aged 50 and above

21.32%

Female

20.40%

Aged 30 and below

19.60%

Senior and middle

management

7.81%

Juniormanagement

4.90%

Sta?

87.28%

The numberof employees

（divided by gender）

The numberof employees

（divided by age）

The numberof employees（divided by class of position）

Number of newlyrecruited employees（divided by gender）

Number of newlyrecruited employees

（divided by age）

The Company aims to improve employee satisfaction and retention by establishing a comprehensive training management mecha-nism, providing fair compensation and welfare bene?ts, and organizing various employee care activities. Additionally, the Companyhas implemented the "Employee Resignation Management Regulations" to ensure adequate communication with employees whointend to leave, in order to understand their reasons for leaving and facilitate subsequent improvement and enhancement e?orts bythe Company.During the reporting period, the employee turnover rate of the Company was 19.51%. The employee turnover data divided by genderand age is presented in the chart below:

Note: Turnover rate = (Total number of employees who left / (Total number of employees who left + Total number of employees at theend of the year)) x 100%

（2）Employee retention

The Company strictly complies with laws and regulations such as the Labor Law and the Labor Contract Law, and has formulatedinternal regulations such as the Salary Management Regulations and Performance Evaluation Management Regulations to standard-ize the management of salary, welfare, and performance.The Company provides various bene?ts to all employees, including "?ve insurances and one fund" (pension insurance, medical insur-ance, unemployment insurance, work injury insurance, maternity insurance, and housing provident fund), paid annual leave, parentalleave, maternity leave, breastfeeding leave, as well as festival and birthday gifts. These comprehensive bene?ts fully protect the legiti-mate rights and interests of employees, thereby enhancing their sense of identity and loyalty to the company. During the reportingperiod, all employees of the Company, except for retired and rehired employees, are covered by social insurance and housing provi-dent fund contributions.The Company regularly conducts performance evaluations for employees and provides positive or negative incentives for compensa-tion based on the evaluation results. If employees at any level have objections to the performance evaluation process or results, theyhave the right to appeal to their direct supervisor's immediate superior or the human resources department within 5 working daysduring or after the evaluation. The relevant leaders and the Human Resources Department will review the performance evaluationprocess or results with the appellant and their direct supervisor, and provide a formal response to the appellant. The Human Resourc-es Department will keep a record of the performance review results and the appellant's feedback.

（3）Salary, Welfare, and Performance Evaluation

MaleAged 30

and below

Aged 31 to 40Aged 41 to 50Aged 50

and aboveFemale

21.54%

31.80%

21.13%

13.28%

11.05%

10.47%

The employeeturnover data

（divided by gender）

The employeeturnover data（divided by age）

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

Talent Cultivation and Development

Evergreen Technology places great emphasis on talent development and has formulated the Promotion Management Regulations tomeet the needs of both the Company and its employees for personal development, and to enhance their core competitiveness. Adher-ing to the principle of "equal emphasis on morality, ability, and performance", the Company comprehensively considers employees'personal qualities, abilities, and achievements in their work. It provides a dual-channel promotion system that combines vertical andhorizontal promotions. In addition to promotions within their own job sequences according to the requirements of di?erent levels, theCompany also takes into account employees' di?erent career aspirations and provides platforms and opportunities for cross-se-quence development among di?erent departments or roles.

（1）Multiple promotion channels

Promotion channels for Evergreen Technology employees

Management SequenceTechnology SequenceProduction Sequence

General worker

Technician

Workshop director

Manager/Deputy ManagerDirector/Vice director

Director/Vice director

Manager/Deputy manager

General manager/Deputygeneral manager

Supervisor

Skilled worker

Group leader

Employees(assistants,specialists,

and seniorspecialists)

Technician( technical level 1)

Intermediate engineer(technical level 3)

Senior engineer(technical level 5)

Assistant engineer( technical level 2)

Advanced engineer(technical level 4)

Chief engineer(technical level 6)

Types of employee training:

The Company attaches great importance to the construction of employee training systems and adheres to the correct orientation forselecting and employing personnel. To standardize and strengthen employee training, we have formulated the Training ManagementRegulations. Every year, each department assesses the skills required for members to perform their jobs based on the company's busi-ness strategies and goals. The training needs and budget are proposed in the Annual Training Needs Survey Form, which is thensigned by the department manager, approved by the responsible leader, summarized and submitted by the Human ResourcesDepartment, and ?nally implemented after approval by the manager. The manager of the Company serves as the highest supervisor ofemployee training management, responsible for the ?nal approval of the annual training plan and budget. The Human ResourcesDepartment is responsible for summarizing training needs, coordinating speci?c training arrangements, tracking training e?ective-ness, and preserving training materials. Each department is responsible for reporting training needs and budgets, as well as imple-menting training plans. During the reporting period, the Company invested a total of RMB 415,000 in employee training and develop-ment.

（2）Employee training

RMBEmployee trainingdevelopment

investment

To integrate into the company culture as quickly as possible, new employees need to learn the Company'svarious rules and regulations, job skills, and safety training. Only those who pass the safety training can startworking, and those who fail the training need to be retrained.New Employee

Orientation

Training

In accordance with national laws and regulations, quali?cation training is provided to personnel in posi-tions that require quali?cation certi?cation. Only those who have obtained the necessary quali?cations andcerti?cations are allowed to work in these positions.Targeting relevant personnel from various departments, job skills training is conducted in a combination ofinternal and external training. This helps personnel from di?erent departments strengthen their businesscapabilities, understand the latest developments in the industry, grasp the cutting-edge trends and devel-opment directions in related ?elds, and improve their professional technical level.Through various safety production trainings, safety managers and all employees are helped to understand,master, and be familiar with various safety production laws and regulations, and to enhance employees'ability to handle emergencies. The Company also familiarizes and masters knowledge related to ?re safety,personal safety, and disaster prevention and mitigation through drills and other forms of practical exercises.Targeting the Company's middle and senior management, management improvement training is conduct-ed to help clarify their positional powers, obligations, responsibilities, and basic management skills. Thistraining also keeps them updated on domestic policies and industry trends, thereby enhancing their profes-sional management capabilities.

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

General manager/Deputy general manager

In order to strengthen talent development, the Company has established a process formanaging employee career development. The Human Resources Department isresponsible for creating career development ?les for employees, while departmentheads serve as mentors for employee career development. Each year, they assistemployees in assessing their personal strengths and skills, and ?ll out the EmployeeCareer Development Planning Form, which includes information on employees' knowl-edge, skills, quali?cations, and career interests. Within three months of a new employ-ee's probation period ending, the department head will have a conversation with themto help con?rm their personal career development direction and ?ll out the EmployeeCareer Development Planning Form. The Human Resources Department will reviewthe Employee Career Development Planning Form annually and provide suggestionsfor the next stage of development based on the employee's learning, training, assess-ment results, and promotion opportunities for that year. After the end-of-year assess-ment, the department head will have a conversation with their department employeesabout future development to con?rm future goals. During the reporting period, theCompany achieved a 100% coverage rate of career development records for manage-ment personnel and a 100% coverage rate of newly recruited employee interviews.

415,000

Quali?cationTraining

Job SkillsTraining

SafetyProductionTraining

ManagementImprovement

Training

Employee Health and Safety

The Company strictly complies with relevant laws and regulations such as the Safety Production Law of the People's Republic of Chinaand the Law of the People's Republic of China on Prevention and Control of Occupational Diseases. Based on the actual work safetysituation of the company, we have established the Occupational Health and Safety Production Committee (Safety Committee) andformulated a series of safety production responsibility systems. The Safety Committee meets quarterly to make decisions on majorsafety issues. The EHS supervisor is responsible for implementing the decisions of the Safety Committee and exercising the Compa-ny's safety management and supervision functions. Additionally, in accordance with the Jiangsu Province Safety Production Manage-ment Regulations, we have established a safety production management department and appointed full-time safety managementpersonnel.

（1）Occupational health and safety management system

Occupational health and safety management structure

diagram of Evergreen Technology

As a responsible enterprise, Evergreen Technology attaches great importance to the company's primary responsibility for safety pro-duction, lays a solid foundation for safety production work, and has established a sound long-term mechanism for safety productionmanagement. During the reporting period, the Company's total investment in safety production amounted to RMB 1.5091 million.

During the reporting period, the total employee training duration reached 7,220 hours, with 2,278 participants, and an average train-ing duration per person of 9.56 hours. The training coverage rate and participation rate both reached 100%. The training data, divid-ed by gender and training type, is as follows:

Occupational Health and Safety Production Committee

EHS group of the Operations department

Production units

In order to strengthen safety production, Evergreen Technology, in accordance with the Safety Production Law of the People's Repub-lic of China and other relevant legal provisions, has formulated annual occupational health and safety related goals. The OperationalDirector and the Production Director have signed the following Occupational Health and Safety Target Responsibility Agreement:

Since July 2020, Evergreen Technology has obtained the ISO 45001 Occupational Health and Safety Management System certi?ca-tion, and it commits to continuously improving the Company's occupational health and safety management e?orts.

The Company has established a safety production supervision and assessment system. The EHS team of the Operations Departmentis responsible for supervising safety management in production operations and functional departments, as well as assessingnon-compliance with EHS standards. We adhere to the principle of "safety ?rst" and organize production under the premise of ensur-ing safety, preventing surprise or overloaded production to ensure safety. We organize the compilation of various equipment safetyoperating procedures and post safety operating procedures, urge employees to learn and implement them. In the event of a produc-tion operation accident, the EHS team of the Operations Department is responsible for investigating the accident and reporting it tothe company in a timely manner. At the same time, we regularly organize safety inspections of the production site, urging responsibleindividuals to rectify equipment safety hazards.

（2）Occupational health and safety supervision and assessment

Training Hours

Numberof participants

Male

Female

6,7292,133

491145

Employee training data(divided by gender)

No ?re accidentsNo serious injuries and fatalities

among personnelThe incidence of occupational diseases

shall be zeroNo poisoning accidentsThe number of minor safety incidents is

no more than 4 per year The recti?cation rate of accident hazards

shall be 100%The participation and quali?cation rate of safety

education and training shall be 100%The rate of holding relevant quali?cations for

operating special equipment shall be 100%The perfection rate of main equipment

shall be 100%The quali?cation rate of on-site occupational

hazard factor testing shall be 100%

Occupational health

and

safety goals

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

Productqualitytraining

AbilityimprovementtrainingOthers

Safetyproduction

training

Employee training data(divided by training type)

2,1807283,6127281,144286

284536

Numberof participants

Training Hours

We are well aware of the importance of safety production and actively organize employees to participate in safety production educa-tion and training. The training content includes the standardized use of production equipment, emergency drills, ?re drills, safetyrequirements for special operations, daily safety production management, and other aspects. The training targets new employees,production workshop directors and squad leaders, paint shops, machining centers, logistics teams, and all employees. During thereporting period, we organized a total of 21 safety production education and training sessions, with a total of 3,612 hours of safetyproduction-related training and 728 participants.

（3）Safety Training and Emergency Drill

Emergency drill for grinding dust explosion

On November 19, 2023, the Company organized an emergency drill for a grinding dust explosion, simulating ascenario where a spark generated during the grinding process encounters dust and causes an explosion.Through this emergency dust explosion drill, all employees were able to understand the dangers posed by dustexplosions and learn how to carry out rescue and evacuation operations in emergency situations. Prompt orga-nization of personnel for ?re suppression minimized the damage caused by the accident and ensured the safetyof personnel and property.

Emergency drill for mechanical injury accidents

On June 9, 2023, the Company organized an emergency drill for mechanical injury accidents, simulating ascenario where an employee sustains a ?nger injury while operating a drill bit, requiring emergency medicaltreatment. Through this emergency drill for mechanical injury accidents, all employees learned how to provideemergency medical treatment in critical situations and promptly notify relevant departments and rescue teamsfor appropriate response, minimizing the severity of the injury.

Fire Emergency Drill

On June 28, 2023, in order to further strengthen the ?re safety education of employees, improve ?re preventionand control capabilities, as well as response capabilities to emergencies, and teach employees how to properlyuse ?re extinguishers and various ?re?ghting equipment, facilities, and devices, the company organized a ?reemergency drill.Through this ?re drill activity, employees gained a better understanding of ?re safety knowledge, and the partici-pants' awareness of prevention and their ability to use ?re-?ghting equipment were enhanced. Their ability torespond to emergencies has also been greatly improved. The drill achieved the desired e?ect and was a com-plete success.

Safety productioneducation and training

times1,428hours

persons

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Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

Training duration

Number of participantsin training

Con?ned space emergency drill

On July 7, 2023, in order to strengthen the safety management of con?ned space operations in our Companyand prevent and control production safety accidents such as poisoning and asphyxiation, the Company orga-nized a con?ned space emergency drill. This drill simulated a scenario where an operator su?ers from suddenshock while cleaning the activated carbon equipment box.During this drill, the detection was accurate, and the response was timely. Everyone was able to stick to theirpositions and ful?ll their responsibilities. Various rescue equipment was fully prepared, and the rescue wastimely and rapid, without any blind rescue e?orts, thus avoiding secondary accidents. Meanwhile, the tacit coop-eration among various departments won valuable time for the rescue.

Employee Care

Evergreen Technology continuously focuses on employee belongingness, is committed to improving employees' working and livingconditions, listens to employees' voices, embodies corporate care, and shapes its corporate culture.Evergreen Technology has formulated the Constitution and Working Regulations of the Labor Union. The Company's labor unionful?lls social functions such as maintenance, construction, participation, and education according to law, protects and mobilizes theenthusiasm of employees, and gives full play to the role of employees as masters of the Company. The chairman of the Company'slabor union is responsible for coordinating and supervising the related work of the labor union, representing employees to enter theboard of directors or supervisors, participating in decision-making and supervision at all levels of the Company, and urging the Com-pany to establish a workers' congress system and other democratic management systems.The Company regularly collects employees' demands and suggestions on various aspects such as work environment, promotion,salary, and welfare bene?ts, and makes comprehensive improvements every year. At the same time, it also provides a platform forcommunication between employees and management.

2023 Workers’representative conferenceOn July 20, 2023, Evergreen Technology legally convened the ?rst Workers' Representative Conference of 2023 inaccordance with the provisions of the Company Law of the People's Republic of China, and other relevant regu-lations. After deliberation by the participating worker representatives, the workers agreed by a show of hands toelect Mr. Liu Yanxing as the worker representative supervisor of the company's fourth supervisory board. Theworker representatives provided their opinions and suggestions during the conference, which the Company fullylistened to and recorded. The Company will continue to actively listen to the workers' voices in its future man-agement.

The Company also attaches great importance to the prevention of occupational diseases and has formulated the ManagementSystem for Labor Protection Equipment to reasonably equip and correctly use labor protection equipment, protecting workers' occu-pational health and safety in the production process. The Occupational Health and Safety Production Committee takes the lead inpreventing occupational diseases in the Company, regularly organizes the distribution of labor protection equipment and healthcareexpenses, and supervises the use of labor protection equipment by individuals and departments.Meanwhile, we hire professional third parties to conduct workplace occupational hazard factor testing in accordance with relevantregulations, and all testing items meet occupational health requirements. During the reporting period, the number of work-relatedinjuries in the Company was 3, the lost workdays due to work-related injuries was 26, and there were no work-related fatalities. TheCompany completed health screenings for 148 employees in occupations involving occupational hazards, and no exceedances werefound in environmental and occupational hazard factor testing.

（4）Preventive measures for occupational diseases

Annual number ofwork-related injuries

persons

days

persons

Occupational Injury Prevention Safety Training

In 2023, the Company regularly organized occupational injury prevention safety training, with 90 participants.The training included practical on-site operations, emergency ?rst aid drills, electric shock experiences, electron-ic ?re extinguishing, etc. This enhanced employees' awareness of occupational injury prevention safety, reiterat-ed the principle of prioritizing prevention in occupational injury prevention, and emphasized the shift from 'I amrequired to prevent' to 'I want to prevent,' constantly reminding employees of the importance of safety.

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Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

Lost workdays dueto work-related injuries

Occupational hazardsjob health examination

In terms of employee satisfaction, we conducted voluntary surveys on employee satisfaction with the cafeteria and Mid-Autumn Festi-val bene?ts through questionnaires. The surveys achieved a 100% coverage rate among employees, and the satisfaction scores were

2.96 and 2.55 out of a total of 3 points, respectively. This allowed us to accurately understand employee satisfaction with their treat-

ment and bene?ts, and make timely improvements to address any shortcomings, thus meeting the reasonable needs of employees.In terms of employee welfare, we strictly abide by the national laws and regulations. Besides the statutory welfare, we also providebirthday welfare and festival welfare for female employees.

Special Event for International Women's DayOn March 8, 2023, our Company organized a special event for International Women's Day under the theme of"Saluting the Power of 'Her', Building the Future with Women's Strength." Ms. Zhou Yinmei, the Chairman of theCompany, and Ms. Ding Jing, the Manager, both attended the event to extend sincere greetings and wishes to allthe female employees on this special day! The Company prepared exquisite gifts for all the female employees:

brooches and carnations. Additionally, in order to care for the health of the female employees, the Companyorganized a health checkup for all the female sta?.

"Wisdom in Parenting, Renewed Vitality" Family Education Theme EventOn October 10, 2023, in order to help female scientists and technologists acquire relevant knowledge and skillsin family education, our Company invited the Women's Federation and relevant psychological experts to con-duct the "Wisdom in Parenting, Renewed Vitality" family education theme event. This event was designed as anexperiential psychological group session, focusing on science popularization related to children's learning. Itaimed to guide participants to help their children develop a love for learning from a parental perspective. Theevent provided high-quality family education guidance for female scientists and technologists, guiding them toestablish correct family education concepts and master scienti?c family education methods.

Collaborate with Partners to AchieveMutual SuccessEvergreen Technology attaches great importance to supply chain management, adhering consistently to the procurement principlesof "fairness, impartiality, and transparency." We are committed to building a sustainable supply chain network that is mutually bene?-cial, e?cient, healthy, and dynamically managed. At the same time, we pay close attention to industry trends, seek industry exchang-es, and actively assume the corporate responsibility of promoting positive industry development.

Sustainable Supply Chain

Before a new supplier is included in the Quali?ed Supplier List, the Company requires them to possess relevant licensing quali?ca-tions. The Procurement Department organizes an investigation and audit of their supply capabilities, product quality, managementlevel, service capabilities, equipment and facilities, and, if necessary, conducts an on-site audit. Only after approval can they be includ-ed in the Quali?ed Supplier List. The Company selects suppliers from this list for procurement, and before bulk supplies are provided,the Quality Assurance Department approves their release through sample trials or ?rst-article inspection.

（1）Supplier Management

Evergreen Technology is committed to procurement of products and services in a responsible manner, striving to achieve higher-qual-ity sustainable development in collaboration with suppliers.

Determine development

requirements

Approved bythe General Manageroran authorized person bythe General Manager

Preliminaryassessment

Comprehensiveassessment

Included in the"List of Quali?edSuppliers"On-site audit

Sample trial

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

Evergreen Technology is committed to establishing a fair and diversi?ed supplier management system, selecting quali?ed suppliersthrough various methods to maintain the stability and continuity of the supply chain. At the same time, we actively collaborate withlocal quali?ed suppliers to reduce greenhouse gas emissions during material transportation.As of the end of the reporting period, Evergreen Technology had a total of 345 suppliers, with a local procurement ratio reaching

54.20%. The breakdown of suppliers by di?erent regions is as follows:

We have established regulations such as the Procurement Control Procedure, the Supplier Evaluation Control Procedure, and the Out-sourcing Control Procedure to standardize the management of suppliers and ensure the joint promotion of a sustainable supply chainwith suppliers and other partners.In terms of the procurement process, we have established rigorous procedures for supplier applications, audits, procurement approv-al, and supplier re-evaluation. We evaluate and audit suppliers from multiple dimensions, including product quality, service quality,delivery capabilities, and price advantages, to strictly control procurement quality.In the daily procurement management process, the Company collects, analyzes, and utilizes data related to suppliers in accordancewith the requirements of the "Data Analysis Control Procedure." In the event of variations in the supplier's product quality, pricing,contract ful?llment, or after-sales service, we promptly notify the supplier to analyze the reasons and actively take measures to ensurethat the purchased products stably meet the requirements speci?ed by our Company.

（2）Procurement Management

We conduct supplier audit and evaluation strictly in accordance with the provisions of the Supplier Evaluation Control Procedure. Wecategorize and manage suppliers based on established systems, assigning quantitative values to suppliers based on four dimensions:

supplier classi?cation, order volume, possession of relevant quali?cations, and annual evaluation results. Suppliers scoring 50 pointsor above are classi?ed as Level I suppliers, those scoring between 30 and 50 points are Level II suppliers, and those scoring below 30points are Level III suppliers. Level I and Level II suppliers must undergo performance appraisals and written evaluations for productquali?cation rates and timely delivery rates before bulk supply. On-site audits may be conducted if necessary, along with ?rst-articleinspection or sample trials. Only suppliers who pass the evaluation are eligible for supply. Level III suppliers are procured based onplans or orders, with written evaluations of their production or business quali?cations, and incoming inspection. Only suppliers whopass the evaluation are eligible for supply.We annually organize personnel to conduct annual evaluations of suppliers, including ESG audits. The audit and evaluation itemsinclude but are not limited to: company management, process technology, employee training, environmental and occupationalhealth and safety awareness, etc. Suppliers who are found to be inadequate or unquali?ed during the evaluation will be required torectify the issues within a speci?ed time limit. Suppliers who fail to rectify the issues within the speci?ed time limit will be removedfrom the Quali?ed Supplier List. During the reporting period, the Company developed the 2023 Supplier Audit Plan and completed theaudit plans for 23 suppliers, urging suppliers to make corrections and continuous improvements.

When the procured materials or services fail to meet the requirements, the Supply Chain Center will organize personnel from relevantdepartments to analyze the reasons for non-conformance. At the same time, the supplier is required to investigate the causes leadingto the unquali?ed materials or services and submit corrective and preventive measures. Subsequently, the Quality Assurance Depart-ment will evaluate, track, verify, and con?rm the supplier's Corrective and Preventive Measures Report.

（3）Supplier Audit and Evaluation

Northeast area

Others

North China

Southwest area

East China

Central China

South China

suppliers

companies

suppliers

companies

54.20%

Employee Training and DevelopmentEmployee Awareness Education in Quality, Environment,

and Occupational Health and Safety

Democratic Communication and

Employee Satisfaction SurveysEmployee Protective EquipmentCustomer Complaint Handling and

Customer Satisfaction EnhancementEnvironmental Protection, Safety Warnings,

and Sanitary FacilitiesEnvironmental and Safety-Related

Emergency Response Measures

During our ESG audits of suppliers,the topics covered include but are not limited to

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

local procurementratio reaching

Promoting Industry Exchange

Evergreen Technology is committed to ful?lling its corporate responsibility of promoting industry exchange and development, activelyengaging in various industry-academia-research collaborations and industrial exchange activities.In terms of industry-academia-research cooperation, the Company has established a technology center and formulated a manage-ment charter for it, equipped with various research and development equipment. The Company has been recognized by the Chang-zhou Science and Technology Bureau as the 'Changzhou City Engineering Technology Research Center for Lightweight Interior Prod-ucts and Equipment of Rail Vehicles,' and by the Provincial Department of Industry and Information Technology as the 'ProvincialEnterprise Technology Center.' Simultaneously, a management system for industry-academia-research cooperation has been estab-lished, and long-term collaborations have been established with Hehai University.We continuously monitor industry trends and actively participate in various industry associations and events. As of the end of thereporting period, the Company has joined 27 industry associations, including the Rail Transit Professional Committee of the Chang-zhou Integrated Transportation Society, the Jiangsu Provincial Decoration and Renovation Industry Association, and the China Build-ing Materials Federation. This marks the recognition and a?rmation of our status and reputation within the industry.

Jiangsu Provincial Listed Companies AssociationChangzhou Capital Market AssociationRail Transit Professional Committee of ChangzhouAssociation for Comprehensive TransportationRailway (Rail) Branch of Jiangsu ProvincialAssociation for Comprehensive TransportationChina Association of Women EntrepreneursChangzhou Association of Women EntrepreneursMember of Changzhou Associationfor Production SafetyChangzhou Chamber of Commerce for UrbanRenewal and Carbon Neutrality IndustriesYouth Entrepreneurs Chamber of Commercein Xuejia Town, Xinbei District, ChangzhouJiangsu Provincial Association ofProfessional ManagersChangzhou Association for Foreign Investmentand Economic CooperationWomen Entrepreneurs Association of Xuejia Town,ChangzhouChamber of Commerce for Women Entrepreneursof All-China Federation of Industry and CommerceChangzhou Charity Federation

High-Tech Enterprise Association of Xinbei District,ChangzhouChangzhou Decoration and RenovationIndustry AssociationJiangsu Provincial Decoration and RenovationIndustry Association (Chamber of Commerce)Shanghai Stone Industry AssociationCurtain Wall Shared Design Professional Committeeof Shanghai Creation SocietyBuilding Curtain Wall Professional Committee ofShanghai Decoration and Renovation Industry Association

Shenzhen Architectural Doors, Windows andCurtain Wall SocietyMember of Shenzhen DecorationIndustry AssociationShenzhen Building Decoration Industry FederationChina Elevator AssociationMetal Composite Materials Branch of ChinaBuilding Materials FederationChina Building Materials FederationArchitecture and Municipal Engineering ProductsApplication Branch of China Association for EngineeringConstruction Standardization

1-2-3-4-5-6-7-8-9-10-11-12-13-14-

15-16-17-18-19-20-21-22-23-24-25-26-27-

The Company has always adhered to green and low-carbon development, and communicated its green and low-carbon philosophy toits suppliers, customers, and other stakeholders.

（4）Communication with Customers, Suppliers, and Other Stakeholders

Visit the European Vehicle Manufacturer, CAF

In 2023, the Chairman of Evergreen Technology led a team to visit the European vehicle manufacturer, CAF. Bothsides engaged in in-depth discussions on market, technology research and development, product services, andother aspects, laying a solid foundation for the Company's future advancement in overseas markets.

We were invited to Attend Alstom's Global Supplier Conference

In October 2023, the Chairman of Evergreen Technology was invited to attend Alstom's Global Supplier Confer-ence. During the event, he engaged in a profound discussion with Danny DI PERNA, Vice President and COO ofAlstom Group, in Morocco, regarding future collaborations between the two parties. This exchange aimed tofurther strengthen comprehensive cooperation in areas such as product innovation and research and develop-ment, supply chain optimization, green and energy-saving carbon emissions reduction for products, and theimprovement and enhancement of the after-sales service chain.

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

"Evergreen Technology and its subsidiary, TrainFX (Anhui), participatedin the Symposium of Enterprises Supporting Hefei Urban Rail Transit Vehicle."In February 2023, Evergreen Technology and its subsidiary, TrainFX (Anhui), participated in the Symposium ofEnterprises Supporting Hefei Urban Rail Transit Vehicle as outstanding suppliers of Hefei Metro passenger infor-mation systems. During the symposium, they focused on reporting the current development journey of Tech-Force and the outstanding achievements of Evergreen Technology in the ?eld of rail transit and architecturaldecoration, laying a solid foundation for fully exploring the markets of vehicle interior decoration, station interiorand exterior decoration materials, and on-board PIS systems in the ?eld of Hefei rail transit in the future.

We were invited to participate in the Third 718 Shanghai Curtain Wall Shared Design FestivalIn July 2023, Evergreen Technology was proudly invited to participate in the Third 718 Shanghai Curtain WallShared Design Festival held in the Golden Hall of the National Convention Center (Shanghai). At this design festi-val, we showcased our independently developed high-performance honeycomb panels and stone honeycombpanels to the guests. Additionally, we shared numerous outstanding engineering cases, fully demonstrating ourinnovative capabilities and professional standards in the ?eld of curtain wall design, striving to meet customerneeds to the fullest extent.

Onsite of Shanghai Curtain Wall Shared Design FestivalAwarded the "Shanghai Curtain Wall

Shared Design Innovation Award"

2023 Asian Metal Building Design and Industry Expo

In September 2023, Evergreen Technology participated in the three-day 2023 Asian Metal Building Design andIndustry Expo. At the expo, our independently developed high-performance products, including honeycombpanels and stone honeycomb panels, garnered widespread praise and keen interest from participating designersand customers due to their exceptional performance and exquisite appearance. Additionally, we shared our out-standing engineering cases, fully demonstrating Evergreen Technology's innovative achievements and remark-able strength in the ?eld of metal building decoration.

The 25th China International High-Tech Fair

In November 2023, Evergreen Technology participated in the 25th China International High-Tech Fair held at theShenzhen Convention and Exhibition Center. During the ?ve-day exhibition, we showcased products such ashoneycomb panels, multi-fold honeycomb panels, integrated honeycomb panels, and stone honeycomb panels.Through extensive discussions and communications with suppliers, and independent innovative experimentsconducted by our research and development team, we ultimately designed various high-performance greenproducts. Additionally, we shared numerous outstanding engineering cases, fully demonstrating our company'sinnovative capabilities and practical achievements in the ?eld of high-tech.During the exhibition, we conducted in-depth discussions, learning, and exchanges with numerous high-techenterprises. Through these exchanges, we gained insights into industry frontiers, technological trends, anddiscovered more potential collaboration opportunities.

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

Building a Better Society

Evergreen Technology deeply engages in charitable activities, promoting the traditional virtues of the Chinese nation. In order to pro-mote the harmonious development of enterprises, we continuously expand our social in?uence, actively undertake more socialresponsibilities, persistently focus on social welfare a?airs, and continuously practice charitable actions, embodying the core socialistvalues with practical actions. The Company regularly donates to the Changzhou Charity Federation and the Guangcai Foundation,increasing its investment in social donations. During the reporting period, the total investment in social welfare by the Companyamounted to RMB 1.025 million.

Continuous Support for Guangcai Foundation's Public Welfare ProjectsIn May 2023, the Company donated RMB 25,000 to the Guangcai Foundation. These funds were used to supportvarious public welfare projects of the Guangcai Foundation, including active participation in poverty alleviation,earthquake relief, ecological construction, cultural protection, and promotion of employment, among otherpublic welfare initiatives.

Signing Donation Agreement with Changzhou Charity FederationIn July 2023, the Company signed a donation agreement with the Changzhou Charity Federation. According tothe agreement, the Company will donate RMB 10 million to the Charity Federation, to be distributed over 10years, with an annual donation of RMB 1 million to the Charity Federation, thereby continuously supporting itscharitable endeavors.

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Environmental, Social and Governance ReportSocial Section

Appendix

Key PerformanceIndex TableReader Feedback Form

Appendix

Key Performance

Governance PerformanceRisk ManagementTraining

Purchased Electricity

Megawatt-hoursTonsTonsThousandcubic meters

4,298.62

11.17

5.37

14.88

4,113.89

12.84

5.64

17.18

3,669.98

11.49

3.36

14.12

GasolineDieselNatural Gas

Tons39,01632,14059,311Water UsageTons/million revenue

73.5862.09123.51Water Intensity

Tons of CO2equivalentTons of CO2equivalentTons of CO2equivalentTons of CO2equivalent/million revenue

379.12 435.55 356.54 Scope 1 Emissions

2,092.99 2,346.152,451.50 Scope 2 Emissions2,472.112,781.702,808.04Total Emissions (Scope 1 + Scope 2)

4.665.375.85Emission Intensity (Scope 1 + Scope 2)

Number of DirectorsNumber of FemaleDirectors

Times1824

PersonsPersons

41//ItemsDisclosure of VariousAnnouncements

Environmental PerformanceEnergy Consumption

Water Resource Consumption

Greenhouse Gas Emissions

CategoryUnit202320222021

Waste Disposal

Wastewater Discharge

Total Number ofPatents Granted

ItemsItemsItemsScore

95.6

96.20

94.90

Invention PatentsUtility Model PatentsCustomer Satisfaction

Cases37 45 55 Customer Complaints

%100.00 100.00 100.00Customer ComplaintHandling Rate

Exhaust Gas Emissions (Particulate Matter)Hazardous WasteDisposal

Tons7,980.008,000.008,000.00

0.170.160.18

77.1681.4884.00KilogramsTons

100.0100.0100.0%

Compliance Rate ofWaste Disposal

Social PerformanceResearch and Professional Services

Environmental, Social and Governance ReportAppendix

CategoryUnit202320222021

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Employee EmploymentTotal Number of

Employees

Total Numberof Employees(By Gender)

MaleFemale

Bachelor's degree

and aboveAssociate

degree

Junior management

personnel

373231Employees659539580

Persons183141159

Veterans

Personnelfrom poor areas

201512Local personnel221191209

Senior managementpersonnel

596878

Total Numberof Employees(By Education)

Total Numberof Employees(By Position)

Recruitment of SocialResponsibilityNumber ofEmployees Leaving

High schooland technicalsecondary school

201 160157

Junior highschool and below

308 240235

Total Numberof Employees(By Age)

Persons755639689

14883106224182212Aged 30 and belowAged 31 to 40

222204201Aged 41 to 50161170170Aged 50 and above

Employee Employment

Employee Training Performance

EmployeeAttrition Rate

MaleFemale

Persons

21.54%

10.47%

2,278

18.15%

17.76%

20.55%

11.11%

6,7292,8863,060

491702756

286288305

Totaltraining hours

Totaltraining hours

2,180718763TrainingparticipationTrainingparticipation

728718763

1,1441,1521,219

Hours7,2203,588 3,816

Number ofTrained Employees

Number ofTrained Employees

(By Gender)

Total Training Hours

(By Gender)Total Training Hours

Product Quality RelatedSkills Improvement

Related

Male2,133577612Female

MaleFemale

145140151

EmployeeAttrition Rate(By Age)

EmployeeAttrition Rate(By Gender)

/19.51%18.08%18.75%

31.80%37.12%10.17%

21.13%21.55%11.30% Aged 30 and belowAged 31 to 40

13.28%12.45%6.07%Aged 41 to 50

11.05%7.10%38.63%Aged 50 and above

Environmental, Social and Governance ReportAppendix

CategoryUnit202320222021CategoryUnit202320222021

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Appendix

Key Performance

Trainingparticipation

Category

GRI Standards

Chairman's AddressAbout Evergreen Technology

Governance StructureDiverse GovernanceInvestor CommunicationESG Management Framework

About This Report

ESG Governance

2-122-16 2-29Stakeholder CommunicationSubstantive Issue AnalysisLegal and Compliance OperationsEnhanced Risk ManagementIntegrity Culture ConstructionProtection of Whistleblowers

Environmental Management System

Environmental Risk ManagementEnvironmental protection objectivesEnvironmental protection training

205-32-25 2-27

Environmental EmergencyResponse Mechanism

205-1 205-2 205-3

2-16 3-1 3-2 3-3

Business Ethics andAnti-Corruption

Information Security

Deepening GreenManagement

CorporateGovernance

—

—

—————

—

2-2 2-3

2-1 2-2 201 202 2072-9 2-12 2-13 2-14 2-17 405

2-10 2-112-29

Employee Training Performance

Social Welfare

Special Investment

Safety Production Related

Ten thousandTen thousand

150.91

108.49

158.64

116.65

100.30

208.41

3,6121,435 1,526728718763

102.52.52.5Ten thousand

Social Welfare

InvestmentSafety ProductionEnvironmentalProtection

Ten thousand41.50 1.16 46.48 Employee Training

Environmental, Social and Governance ReportAppendix

CategoryUnit202320222021Appendix

Key Performance

Appendix

Index table

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

Totaltraining hours

Category

GRI Standards

Waste Gas ManagementThree Waste Management System

Clean Energy UtilizationResource and Energy Management

Wastewater ManagementSolid Waste ManagementGreen Transformation Project

Optimizing ResourceUtilization

Addressing Climate Change

2-12

Prioritize Quality ControlHigh-Quality Customer Service

Technological Innovationand Product Development

Compliant EmploymentTalent Cultivation and Development

Employee CareEmployee Health and Safety

Sustainable Supply ChainPromoting Industry ExchangeBuilding a Better Society

—

2-7 2-8 401 402 405

406 407 408 409

PursuingExcellent Quality

Buildinga Happy Workplace

Buildinga Better Society

Waste Management

416 417 418

2-6 308 4142-6 2-28

—

—

301 302 303

2-1 2-2 201 202 2072-9 2-12 2-13 2-14 2-17 405

2-10 2-112-29

CategoryGRI Standards

Index tableReader Feedback Form

Key Performance—

——

Environmental, Social and Governance ReportAppendix

Appendix

Index table

Changzhou Evergreen Technology Co., Ltd.2023ESG

Changzhou Evergreen Technology Co., Ltd.2023ESG

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Environmental, Social and Governance ReportAppendix

Changzhou Evergreen Technology Co., Ltd.2023ESG

Appendix

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