2024 Environmental, Social & Governance Report

This report presents an overview of the sustainability initiatives and critical performance metrics of Hainan Jinpan Smart Technology Co., Ltd. and its affiliated companies. This report serves as an annual report, covering the period from January 1, 2024, to December 31, 2024. Certain contents exceed the above time range to enhance the completeness and continuity of the report. The information and data presented in this report are sourced from the Company’s annual reports, internal official documents, internal statistical data, and publicly available information.

Continued Focus on Digitalization through AI Intelligent Manufacturing

Jinpan Smart Technology has built 7 digital factories, including those for transformers, complete sets, and energy storage, forming unique green, low-carbon, and intelligent manufacturing industry clusters. By deeply integrating cutting-edge technologies such as digital twins with traditional manufacturing processes, Jinpan Smart Technology has successfully achieved the digital transformation of discrete manufacturing industries. This has significantly improved overall production efficiency and product quality, while also greatly reducing energy consumption and emissions, setting a new benchmark for efficiency, environmental sustainability, and intelligentization in the industry. In 2024, our company:

• Officially broke ground on the “New Energy Equipment Intelligent Manufacturing (Tongxiang)” project
• Completed the main factory building of Phase I of “New Energy Equipment and New Materials Intelligent Manufacturing Industrial Park” project in Shaoyang, Hunan of Jinpan Smart Technology
• Launched the first batch of Excellence level smart factories
• Initiated the exploration of vertical large models

Environmental Highlights

We continuously focus on the impact of climate change on our business operations. Based on climate scenario analysis, we identify and assess climate change risks related to the Company. At the same time, we develop targeted measures to enhance our ability to adapt to climate change. In 2023, Jinpan Smart Technology applied to join the Science Based Targets initiative (SBTi) to ensure that our carbon emissions goals are consistent with the global scientific carbon reduction pathways. In 2024, our company: 

• Reduced greenhouse gas emissions (GHGs) by about 70.39%—achieving our 2030 emission target earlier than expected
• Obtained 16 carbon footprint certifications for 16 products
• Increased clean energy consumption by 74.46%—achieving a clean energy utilization rate of 61.35% 
• Earned national recognition for Green Factories and Zero-Carbon Factories for our Haikou, Guilin and Wuhan facilities 
• Treated and reused about 1,353 tons of wastewater, achieving zero discharge and zero pollution of industrial wastewater

Social Highlights

We are committed to innovation-led development, providing customers with high-quality products and services and creating diversified values for customers. We work hand in hand with customers to meet their diverse service needs and continuously optimize customer service experience. In addition, we are committed to providing a safe and comfortable working environment, as well as creating an inclusive, open, diverse, and equal workplace atmosphere for our employees. We value the development of a diverse workforce and support the growth of professional talents needed for our business development with a comprehensive training and incentive mechanism. In 2024, our company: 

• Invested 5.15% of total revenue toward Research & Development
• Accumulated a total of 284 technology patents 
• One-time passing rate of finished products reached 100%
• Reported zero incidents of product recalls due to health and safety reasons 
• Achieved 100% labor contract signing rate 
• Reported zero work-related deaths or lost workdays due to occupational injuries and health issues
• 98.26% customer satisfaction rating 
• 183,335 hours of employee training and professional development
• Audited 70 suppliers and completed a total of 42 on-site supervisions to ensure quality of incoming materials
• Donated RMB 932,700 to various charitable organizations in our local communities 

Governance Highlights

We adhere to the principle of integrity as our core business philosophy, strictly comply with relevant laws and regulations, continuously optimize our corporate governance structure, and conduct operations with transparency and fairness. We consistently improve our risk management framework and systems, actively earning the trust of investors, partners, and the broader community, and ensuring the Company’s stable and long-term development. In 2024, our company: 

• Optimized and upgraded its risk management system by incorporating the 21 topics from the ‘Sustainability Reporting Guidelines’ by the Shanghai Stock Exchange
• Reported zero incidents of commercial bribery or corruption and zero lawsuits or significant administrative penalties due to unfair competition
• Provided specialized training on the “Bidding Compliance Law” for all sales personnel at marketing centers nationwide and bidding and quoting staff across departments
• Achieved 100% signing rate for employee integrity commitment letters 
• Achieved 100% signing rate for new suppliers’ integrity and confidentiality agreements
• Organized internal training for 100% employees across the company on business ethics, integrity and self-discipline, and
  confidentiality policies