WCON ELECTRONICS CO.,LTD. - Environmental & Social Information 2025

Strengthen Compliance to Solidify Governance

Low-Carbon Operations Innovation-Driven for a Green World Transformation

Human-Centric Commitment

Sustainable Development Governance

2024 Environmental, Social, and Governance Report

Appendix

About the Message from About Report Chairman WCON

Appendix 60

==> picture [842 x 16] intentionally omitted <==

About the Report Message from Chairman 01 02 About WCON Performance in 2024 Company Profle Industrial Layout Corporate Culture Honors Shareholding Structure Development Course 03 03 05 07 08 08 08 09			Strengthen Compliance to Solidify Governance
		Standardize Governance for Stable Operation Enhance Investor Relations to Protect Shareholders' Interests Reinforce Compliance for Business Ethics Prioritize Data Security to Prevent Privacy Breach 16 18 19 22

Strengthen Compliance to Solidify Governance

	Low-Carbon Operations	Low-Carbon Operations	Appendix	60
	for a Green World		Key Performance Form	60
			Metric Index	66
Low-Carbon Initiatives to Address		25	Feedback	67
Climate Change
Strengthen Pollution Control Optimize Energy Management		3 1 34

==> picture [842 x 236] intentionally omitted <==

----- Start of picture text -----

Sustainable Development 10 Innovation-Driven Human-Centric
Governance Transformation Commitment
Sustainability Governance 10
Objectives Co-accelerate Industrial Ecosystems 37 Safeguard Employees' Rights 52
Sustainability Governance 1 1
Premium Brand from Quality 4 1 Unblock Development Channels 56
Structure
Reinvent Sourcing Governance 46 Health Protection Network for Public 57
Communications with 12
Safety
Stakeholders
Management of Material Topics 13 Social Engagement for a Sustainable 59
Future
----- End of picture text -----

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Human-Centric Commitment

Sustainable Development Governance

Innovation-Driven Transformation

About WCON

2024 Environmental, Social, and Governance Report

Appendix

About the Report

The 2024 Environmental, Social and Governance (“ESG”) Report of WCON Electronics (Guangdong) Co., Ltd. (hereinafter referred to as “ the Report”) is the first ESG report issued by WCON Electronics (Guangdong) Co., Ltd. (hereinafter referred to as “WCON” or “the Company”). In the principles of objectivity, standardization, transparency, and comprehensiveness, the Report provides a detailed disclosure of the Company’s practices and performance in social responsibilities such as environment, society, and corporate governance for 2024.

Reporting Scope

The Report focuses on WCON Electronics (Guangdong) Co., Ltd. and its branches and subsidiaries. The scope of the Report is consistent with the Company ’ s Annual Report unless otherwise stated. The Report covers from January 1, 2024, to December 31, 2024 (the “Reporting Period”) and is released annually, consistent with the financial year. To improve comparability and completeness, some sections of the Report may be appropriately referred to previous years or contain forward-looking statements.

Preparation Basis

The Report is prepared according to the guidelines of the stock exchange where the Company is listed and international information disclosure standards, and the reference disclosure documents are as follows:

Shenzhen Stock Exchange Self-Regulatory Guidance No. 3 for Companies Listed on ChiNext Market of Shenzhen Stock Exchange—Preparation of Sustainability Report
Shenzhen Stock Exchange Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial Implementation)

==> picture [67 x 52] intentionally omitted <==

Global Reporting Initiative Sustainability Reporting Standards (GRI Standards)
China Enterprise Reform and Development Society Guide to Corporate Sustainability Reporting in China (CASS-ESG 6.0)
UN Sustainable Development Goals (SDGs)
Task Force on Climate-related Financial Disclosures (TCFD) Recommendations of the Task Force on Climate-related Financial Disclosures

Data Explanation

Data sources used in the Report include the Company’ s actual operational data, annual financial data, internal statistical reports, third-party questionnaire surveys, etc. The financial data in the Report is expressed in RMB. The financial statements shall prevail in any discrepancy between the Report and the financial statements.

Appellation Description

Unless otherwise indicated by the context, the following terms in the Report have the meanings as below:

==> picture [251 x 131] intentionally omitted <==

----- Start of picture text -----

Term Definition
WCON, the Company, We WCON Electronics (Guangdong) Co., Ltd.
WCON Automotive Dongguan WCON Automotive Electronics Co., Ltd.
State/Government The People's Republic of China and
its administrative agencies
SZSE Shenzhen Stock Exchange
Company Law Company Law of the People's Republic of China
Securities Law Securities Law of the People's Republic of China
Articles of Association of WCON Electronics
Articles of Association
(Guangdong) Co., Ltd.
----- End of picture text -----

Confirmation and Approval

◎ The Company’s Board approved the Report of Directors on April 25, 2025, and was subsequently released in conjunction with the Company's Annual Report for 2024. The Board pledges to exercise oversight over the contents of the Report, ensuring its absence of any false records or misleading representations and assuming responsibility for its truthfulness, accuracy, and completeness.

◎ The Report is published in Chinese, with the English version derived from the Chinese version. For any discrepancy between the two versions, the Chinese version shall prevail.

Access to the Report

The electronic version of the Report is available for reference and download from the information disclosure website designated by the Shenzhen Stock Exchange, CNINFO (www. cninfo.com.cn), or the Company's website (www.wcon. com). If you have any questions or suggestions about the Report, you can send an email to [email protected] or call 076985358915.

About the Message from About Report Chairman WCON

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About

2024 Environmental, Social, and Governance Report

Appendix

Message from Chairman

Hello! I am deeply honored to present WCON's first Environmental, Social, and Governance (ESG) Report. On behalf of WCON, I would like to express my sincere gratitude to all stakeholders who have given us firm support and trust.

2024 was full of challenges and the first year for WCON to launch its ESG strategic deployment officially. Amidst intensifying industry competition and market volatility, we forge ahead with unwavering resolve, anchored in our core strategy of “Quality as our Cornerstone, Innovation as our Driver, and Customer Primacy as our Compass.” In the past year, we completed the commissioning of the projects funded by the initial public offering of shares and took a historic step towards manufacturing overseas. At the same time, we thoroughly implemented the corporate vision of “becoming a global high-end precision connectors and customer solution service provider” and continuously invested in research and development innovation and intelligent manufacturing construction. We unswervingly followed the development path driven by both innovation and quality. In addition, we actively responded to the global trend of sustainable development and committed to improving corporate governance. We strived to achieve harmonious coexistence among economic growth, social welfare, and environmental protection and to explore and enhance the multi-faceted internal value of the enterprise.

WCON is committed to building a green, intelligent, equal, and transparent modern industrial park and deeply implanting the ESG concept into the Company's strategic decision-making and long-term planning.

In terms of the environment and green development, we actively introduced green energy technologies such as chilled water storage systems, photovoltaic devices, and energy storage facilities and established an energy management system to achieve refined classification monitoring and management of the plant's resources, continuously optimize energy allocation, and repeatedly set new lows in carbon emissions.

Regarding social responsibility, WCON adheres to “humanism” by fully respecting and protecting employees' rights and interests, creating a safe and healthy working environment, and guiding employees' growth with a positive corporate culture. We provide high-quality working, living, and dining conditions, hold monthly birthday parties, and offer abundant festival and family visit benefits. In 2024, we implemented an employee stock ownership plan, comprehensively reformed the compensation system, and broaden the channels for employee training and promotion. By combining short-term benefits with long-term incentives, we promoted the synchronous growth of employees and the enterprise.

In terms of corporate governance, we strictly abide by national laws, regulations, and international industry standards and meticulously construct and optimize the internal control system to enhance the effectiveness of risk management, improve the transparency of information disclosure, and ensure that the decision-making process is scientific, fair, and transparent. By continuously refining the corporate governance structure, we strive to maximize value creation while ensuring all stakeholders' legitimate rights and interests are embedded in our governance processes with complete respect and protection.

Looking ahead, WCON will continue to deepen its sustainable development practices, leveraging the dual engines of “Quality Leadership” and “Innovation-Driven Growth” to comprehensively elevate its core competitiveness, steering toward a new phase of synergistic co-development among economic, social, and environmental benefits. We sincerely invite all partners to join hands to create a brilliant and sustainable future.

WCON Electronics (Guangdong) Co., Ltd. Chairman & General Manager: Li Wenhua

==> picture [85 x 34] intentionally omitted <==

==> picture [280 x 420] intentionally omitted <==

Message from About Chairman WCON

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

2024 Environmental, Social, and Governance Report

Appendix

About WCON

Performance in 2024

==> picture [172 x 9] intentionally omitted <==

Economic Performance

(in RMB 10,000) 53,417.23 Total Operating Income

==> picture [242 x 86] intentionally omitted <==

----- Start of picture text -----

(in RMB 10,000)
8,546.64
Net Profit Attributable to Shareholders of
the Parent Company
----- End of picture text -----

(in RMB 10,000) 2,688.32 Total Taxes

==> picture [32 x 32] intentionally omitted <==

Environmental Performance

240.20

RMB Total Environmental Investment

tCO2e 4,336.63 Total Emission of Greenhouse Gases

==> picture [53 x 42] intentionally omitted <==

==> picture [52 x 42] intentionally omitted <==

==> picture [371 x 61] intentionally omitted <==

----- Start of picture text -----

14 times
Number of Environmental Training Sessions
----- End of picture text -----

==> picture [42 x 42] intentionally omitted <==

100%

Waste Disposal Compliance Rate

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

About Sustainable Development WCON Governance

About the Report

2024 Environmental, Social, and Governance Report

Appendix

Social Performance

100% Percentage of Contract Workers

0 Number of case Labor Disputes

100% Employee Training Coverage

==> picture [178 x 61] intentionally omitted <==

----- Start of picture text -----

0 case
Number of Safety Production Accidents
----- End of picture text -----

100% Coverage Rate of Physical Examinations for Employees

==> picture [33 x 38] intentionally omitted <==

100% Percentage of Suppliers that Have Signed the Integrity Agreement

99.66% 201 Product Percent of Pass

Cumulative Patents Granted

(in RMB 10,000) 6,435.57 Investment in R&D

==> picture [40 x 35] intentionally omitted <==

12.05% Percentage of R&D Investment in Operating Income

==> picture [36 x 35] intentionally omitted <==

Governance Performance

104 hours Duration of Offline Legal Training for Directors, Supervisors, and Senior Executives

100% Signing Rate of the Business Ethics Agreements

==> picture [35 x 35] intentionally omitted <==

0 time Number of Reports of Corruption or Bribery Incidents

100% Proportion of Management Personnel Attended the Anticommercial bribery and Anti-corruption Training

100% Reply rate to investors’ inquires

==> picture [39 x 37] intentionally omitted <==

0 Material Legal Non-compliance Incidents

==> picture [35 x 34] intentionally omitted <==

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations Innovation-Driven Human-Centric for a Green World Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Company Profile

WCON Electronics (Guangdong) Co., Ltd., established in November 2002, was listed on the ChiNext Market of the Shenzhen Stock Exchange on September 8, 2022 (Stock Short Name: Wcon Electronics, Stock code: 301328). The company provides board-to-board (BTB) and wire-to-board (WTB) precision connectors and cable assemblies. Its main business focuses on research, development, design, production, and sales of connectors and cables in industrial control, automotive electronics, and new energy industries.

Committed to providing customers with customized, intelligent, and efficient connectivity solutions, the Company offers 17 prominent product families with over 50,000 active trading SKUs and over 100,000 reserved product SKUs. These serve applications across industrial automation control, three-electric systems (motor/battery/electronic control system) of electric vehicles, ADAS, smart cockpits, and solar inverter systems.

17 Prominent product families

50,000+

Active trading SKUs

100,000+

Reserved product SKUs

==> picture [605 x 469] intentionally omitted <==

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Op ~~e~~ ration ~~s~~ for a Green World

Innovation-Driven Human-Centric Transformation Commitment

About Sustainable Development WCON ~~G~~ overnance

About the Report

2024 Environmental, Social, and Governance Repo ~~r~~ t

Appendix

G lo ba l distribution of enterprises

==> picture [746 x 312] intentionally omitted <==

----- Start of picture text -----

It aly Hefei WCON Electronics Co., Ltd.
W CON ELECTRONI C S E U ROPE SRL
Hefei
Kun shan
Hengyang WCON Electronics Co., Ltd.
Kunshan WCON Electronics Co., Ltd.
Heng
yang
Dong
guan
WCON Electronics (Guangdong) Co., Ltd.
(Headquarters)
H ong
Thai land
Kong Dongguan WCON Automotive Electronics Co., Ltd.
WCON ELECTRONICS (THAILAND)
CO.,LTD. (under c o nstru c tion)
W CON HA R DWARE ELECTRO N ICS LI M ITED
S ingapor e
W C ON ELE CTR ONICS (SINGAP O RE) PTE. LTD.
----- End of picture text -----

==> picture [134 x 81] intentionally omitted <==

WCON Headquarters (Nov. 2002) Kunshan (July 2006) Building area: 60,228 m2 Building area: 46,000 m2

==> picture [134 x 81] intentionally omitted <==

Hefei (Oct. 2022) Building area: 1,800 m2

==> picture [134 x 81] intentionally omitted <==

Hengyang (Nov. 2022) Thailand (under construction) Building area: 4,000 m2 Building area: 45,000 m2

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Report

Industrial Layout

Industrial Control Connectors

In the industrial control field, the Company's products mainly include BTB connectors and WTB connectors.

Main Products

Introduction

The products are primarily used for signal transmission and power supply, with pitches ranging from 0.4mm, 0.5mm to 3.96mm, 5.08mm, and transmission rates ranging from 5Gbps to 30Gbps. They can provide various PCB installation methods such as SMT and THT.

Industrial control BTB connectors

==> picture [65 x 51] intentionally omitted <==

The products are mainly used for signal input and output, with pitches ranging from 0.8mm, 1.0mm, 1.27mm to 5.08mm, 7.5mm, and transmission rates ranging from 5Gbps to 30Gbps. They can provide multiple wire diameter specification solutions of 18-36AWG.
Industrial control WTB connectors

==> picture [82 x 54] intentionally omitted <==

Application fields: They can be applied explicitly to industrial control and automation equipment such as servo motors, programmable logic controllers (PLCs), robotic arms, and industrial computers.

==> picture [238 x 100] intentionally omitted <==

Automotive Connectors

In the automotive field, based on different application scenarios, the Company strategically focuses its deployment on the medium and low-voltage signal transmission connectors and, at the same time, complements and synergizes its business operations with high-frequency and high-speed connectors.

Main Products

Introduction

The products are primarily used for signal transmission and power supply, with pitches ranging from 0.5 mm, 0.8 mm, 2.2 mm to 3.0 mm, 4.0 mm, 6.0 mm, and the waterproof grade reaching IP67, IP68, and IP6K9K. Equipped with terminal reinforcement, mating anti-misinsertion, and secondary locking designs, they exhibit strong anti-vibration performance, stable contact, and reliable transmission capabilities while providing multiple mounting design options.

Medium and low-
voltage signal transmission connectors

==> picture [90 x 46] intentionally omitted <==

◎ High-frequency and We have already offered products such high-speed connectors as FAKRA, MINI FAKRA, HSD, Ethernet, automotive TYPE-C, radar housings, and large-current stud terminals.

Application fields: The medium and low-voltage signal transmission connectors are primarily used for the three-electric systems (battery, motor, and electronic control system) of new energy vehicles; the high-frequency and high-speed connectors are primarily used for intelligent cockpit systems, autonomous driving systems, and body domain control systems.

==> picture [237 x 81] intentionally omitted <==

New Energy Connectors

In the new energy field, the Company's products are mainly used for signal control transmission, and applied to solar and wind energy inverter systems. Moreover, the Company continues to expand the connectors required for household and commercial energy storage and charging applications and provides photovoltaic energy storage system solutions, forming a comprehensive coverage of the three fields of photovoltaics, energy storage, and charging, to strengthen the business layout of new energy connectors.

Main Products

Introduction

The products are mainly used for signal control transmission, with pitches ranging from 1.27 mm, 2.0 mm to 5.08 mm, and 7.62 mm. With a dual-contact and multi-contact terminal structure design, they can achieve reliable connection and extend the service life simultaneously, and can work stably in an environment with a large temperature difference.

New Energy Connectors

==> picture [92 x 64] intentionally omitted <==

==> picture [78 x 92] intentionally omitted <==

==> picture [61 x 92] intentionally omitted <==

==> picture [78 x 80] intentionally omitted <==

==> picture [238 x 100] intentionally omitted <==

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Corporate Culture

Honors

==> picture [80 x 10] intentionally omitted <==

Corporate Vision：Become a global high-end precision connectors and customer solution service provider to lead technological innovation and application development.

Corporate Mission：Meet the diverse needs of global customers and create sustainable value for the connector industry and society.

National “Little Giant”

Enterprise (Specialized and Sophisticated SMEs)

Ministry of Industry and Information Technology

Innovative Enterprise in Guangdong Province

Industry and Information Technology Department of Guangdong Province

Values：Integrity-Driven Operations, Quality First, Innovation-Driven Growth, Collaboration for Win-Win Outcomes.

National High-Tech Enterprise

Ministry of Science and Technology, Ministry of Finance, State Taxation Administration

Dongguan “Double Increase Enterprise” in 2024

Dongguan Double Increase Plan Working Leadership Group

Shareholding Structure

WCON Electronics (Guangdong) Co., Ltd.

==> picture [670 x 196] intentionally omitted <==

----- Start of picture text -----

100% 100% 60% 100% 51%
Kunshan WCON Dongguan WCON Automotive Hengyang WCON Hefei WCON Electronics
WCON Hardware Electronics Co., Ltd.
Electronics Co., Ltd. Electronics Co., Ltd. Electronics Co., Ltd. Co., Ltd.
100% 52%
WCON ELECTRONICS (SINGAPORE) PTE.,LTD WCON ELECTRONICS EUROPE SRL
(Incorporated in Singapore) (lncorporated in ltaly)
95%
WCON ELECTRONICS (THAILAND) CO.,LTD 5%
(Incorporated in Thailand)
----- End of picture text -----

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Human-Centric Commitment AppendixAppendix

About Sustainable Development WCON Governance

Innovation-Driven Transformation

About the Report

2024 Environmental, Social, and Governance Report

Development Course

==> picture [20 x 149] intentionally omitted <==

==> picture [20 x 209] intentionally omitted <==

2010

2015

2019

==> picture [20 x 206] intentionally omitted <==

==> picture [19 x 207] intentionally omitted <==

We developed automotive electronics series products, began to enter the automotive field, and obtained the ITAF16949 quality system certification in the automotive industry.

We increased investment in high-end stamping and injection molding equipment and expanded the mold processing center. Meanwhile, the Company held the founding conference of the joint stock company and unanimously resolved to convert and establish as a joint stock company.

We successively launched such products as Box h e a d e r s a n d E j e c t o r headers, which are mainly used for solar inverters, entered the new energy field, and developed I/O series products, further enriching the application scenarios of industrial control connectors.

2002

2023

==> picture [20 x 125] intentionally omitted <==

The predecessor of the Company, Dongguan WCON Hardware Electronics Co., Ltd., was established.

Through our holding subsidiary WCON Automotive, we developed high-frequency and high-speed automotive connectors such as Fakra, mini Fakra, and Ethernet to expand our business field.

==> picture [19 x 62] intentionally omitted <==

==> picture [20 x 88] intentionally omitted <==

==> picture [20 x 65] intentionally omitted <==

==> picture [20 x 124] intentionally omitted <==

==> picture [20 x 28] intentionally omitted <==

2024

2013

2022

A s t h e p r o j e c t s funded by the initial public offering of shares were put into production, we moved our Dongguan HQ to the Daning Plant and increased the premise area to more than 60,000 square meters, further improving the capacity of intelligent manufacturing production.

2004

We were listed on the ChiNext Market of the Shenzhen Stock Exchange.

We introduced the lean production management mode, CAE product development, and Model3D mold flow analysis simulation software to o p t i m i ze p r o d u c t i o n management efficiency and strengthen product development capabilities.

2017

We secured UL (US) and CUL (Canada) safety certifications while launching the Wafer series products, significantly expanding the portfolio.

We moved our Dongguan HQ to the Humen Plant, increasing the premise area to more than 30,000 square meters.

About the Message from About Report Chairman WCON

Strengthen Compliance Low-Carbon Operations to Solidify Governance for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

2024 Environmental, Social, and Governance Report

Appendix

◎ Strictly implement the waste management Action system and explore new channels for waste Objectives conversion

Sustainable Development Governance

Sustainability Governance Objectives

The Company actively aligns with the UN Sustainable Development Goals (SDGs), formulating sustainability management objectives based on SDG principles and its operational context. These objectives span five key areas: production operations, supply chain, employees, products, and social engagement. By collaborating with global enterprises and governmental agencies, the Company aims to address critical global challenges, including environmental protection, social equity, and economic prosperity, to co-create a sustainable future landscape.

Management Level Production/Operation

Employees Product Social Engagement

Supply Chain

◎ Further, refine and implement the environmental and hazardous substance process control standards and systems under the ISO 14001 and QC080000 systems

◎ Require suppliers to sign integrity and confidentiality agreements and continuously monitor their certifications of social responsibility-related systems.

◎ Improve the EHS management system to achieve the goal of zero work-related accidents

◎ Establish and optimize innovative manufacturing bases while introducing industry-leading manufacturing and quality management software

Regularly organize community volunteer
activities
Create high-quality job opportunities
◎ Advocate peace and justice on a global scale

◎ Ensure unimpeded access to employee complaint and reporting channels while regularly conducting anonymous employee satisfaction surveys

Optimize the energy structure and increase
the share of clean energy
- Further refine and implement the internal
- quality control standards and systems under the ISO 9001 and IATF 16949 systems
Integrate the requirements of sustainable
development actions into supplier audit criteria and establish a regular communication and supervision mechanism
Establish a carbon emission management
system and achieve the ISO 14064 certification for carbon emission system
Intensify R&D investment, comprehen-
sively optimize the R&D environment, and significantly drive technological innovation and product upgrading

◎ Engage a third-party company to conduct ◎ Provide supplier training resources and workplace environment assessments to prevent plans occupational diseases regularly

Meet the standards for sewage detection

◎ Intensify professional training in information security and privacy protection

Encourage R&D and technology iteration
in green products and clean technologies
Implement the 3R concept

◎ Continuously conduct the anti-corruption and integrity training and achieve 100% employee sign-off on the Anti-Corruption and Integrity Agreement for Employees

◎ Improve the corporate governance and internal control system and reduce the risk of information leakage

Strengthen the business ethics manage-
ment and training systems, ensure unimpeded access to anti-corruption reporting platforms and channels, and establish a feedback loop for reporting and resolution

◎ Implement a comprehensive employee performance reform, clarify the promotion pathways for each position, and create all-around on-job training opportunities

Improve the level of employee benefits
Regularly conduct multi-channel communi-
cation with stakeholders

==> picture [55 x 67] intentionally omitted <==

----- Start of picture text -----

SDGs
----- End of picture text -----

==> picture [697 x 67] intentionally omitted <==

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Sustainability Governance Structure

The Company integrates sustainability into its overall governance framework by developing the Sustainability Management Handbook and establishing a three-tier governance structure: Board of Directors - Strategy Committee - Sustainability Task Team (decision-making level - planning level - implementation level). With clear responsibilities defined for each tier, this structure ensures that ESG-related impacts, risks, and opportunities are adequately considered in business decision-making processes.

The Board of Directors oversees the overall decision-making of the Company’s ESG strategy and action plans. The Strategy Committee leads the formulation of ESG strategies and medium-to-long-term plans and manages and supervises the Sustainability Task Team’s annual work plans. The Sustainability Task Team handles day-to-day ESG operations, deploys and tracks sustainability initiatives, reports progress to the decision-making level, ensures the smooth deployment and effective implementation of annual work plans, coordinates with third-party consulting and rating agencies, organizes ESG-related training, and manages the archiving of all ESG documents and reports. The implementation level consists of functional departments, each responsible for establishing and enforcing ESG-related policies and organizing and supervising the implementation of departmental ESG initiatives.

==> picture [758 x 286] intentionally omitted <==

----- Start of picture text -----

Board of Directors Chairman Decision-making Level
Strategy Committee Planning Level
Sustainability Task Team
Implementation
Securities Human Resources Administration IT Management Procurement Management Audit Level
Department Department Department Department Department Department
Operations Center R&D Center Engineering Center Marketing Center Quality Center Finance Center
----- End of picture text -----

The Company has established internal and external audit systems for sustainability management to ensure effective implementation and continuous improvement of sustainability initiatives. Annual audits are conducted in accordance with these systems, improvement tracking plans are developed based on audit reports, and the Sustainability Task Team is tasked with supervising and urging responsible units to implement improvement measures until full completion.

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Communications with Stakeholders

==> picture [266 x 10] intentionally omitted <==

The Company prioritizes stakeholder engagement by conducting a stakeholder identification process based on business operations. Key stakeholders include shareholders and investors, employees, suppliers, customers, industry associations or research institutions, and government or regulatory bodies. Multiple communication channels are established to gather and respond to stakeholders’ expectations and suggestions systematically.

==> picture [766 x 381] intentionally omitted <==

----- Start of picture text -----

Industry Associations
Shareholders and Social Organizations, Governmental or
Stakeholders Employees Suppliers Customers or Research
Investors Media and the Public Regulatory Agencies
Institutions
◎ Corporate Governance ◎ Protection of Employ- ◎ Supply Chain Security ◎ Product and Service ◎ Innovation-Driven ◎ Contribution to Society ◎ Environmental Com-
Compliance ees' Legal Rights and ◎ Anti-commercial Brib- Safety and Quality Growth ◎ ESG Governance pliance Management
◎ Protection of Share- Interests ery and Anti-corruption ◎ Innovation-Driven ◎ Product and Service ◎ Corporate Govern-
Topics of Concern holders’ Rights and ◎ Training and Develop- Growth Safety and Quality ance Compliance
Interests ment ◎ Data Security and
◎ Compliance and Risk ◎ Occupational Health Privacy Protection
Control and Safety
◎ ESG Governance
◎ Shareholders’ Meeting ◎ Labor Union Commit- ◎ Supplier Assessment ◎ Customer Communica- ◎ Industry Exchanges ◎ Community Public Wel- ◎ Special Reports
Communication ◎ Information Disclosure tee and Audit tion and Feedback Channels ◎ Industry-university-re- fare Activities ◎ Cooperate with
◎ Performance Briefings ◎ Employee Training ◎ Supplier Communica- ◎ After-sales Support search Cooperation ◎ Media Communication Government Research
Methods and
◎ Investor Research ◎ Employee Activities tion ◎ Customer Satisfaction ◎ Compliance Supervi-
Channels
Reception ◎ Employee Satisfaction Survey sion Investigation
Surveys ◎ Industry Exchanges
◎ Improvement of Corpo- ◎ Improving Compensa- ◎ Improve the Supplier ◎ Adhere to product ◎ Strengthen Innovation ◎ Provide Local Job ◎ Improve the Environ-
rate Governance tion and Benefit Systems Management System Quality Management Capabilities Opportunities mental Management
◎ Strengthen investor ◎ Establishing an Em- ◎ Implement Transparent ◎ Improve Customer ◎ Adhere to Product System
relations management ployee Training System Procurement Service Management Quality Management ◎ Compliant Operation
Response ◎ Improvement of Profit- ◎ Offering Clear Career ◎ Supplier ESG Manage- ◎ Strengthen Innovation
ability Development Channels ment Capabilities
◎ Improve the Sus- ◎ Ensuring Employees’ ◎ Strengthen Information
tainable Development Occupational Health and Security Management
Management System Safety
----- End of picture text -----

About the Message from Report Chairman

Strengthen Compliance Low-Carbon Operations Innovation-Driven Human-Centric to Solidify Governance for a Green World Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Management of Material Topics

Analysis Steps of Material Topics

The Company refers to the assessment methods stated in domestic and international disclosure standards such as the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial Implementation). It introduces the analytical perspectives of impact materiality and financial materiality to identify and assess material topics, with the specific implementation steps as follows:

Assessment Step 1: Understand the Process of Material Company's background

Step 1: Understand the Step 2: Conduct Step 3: Assess the materiality Process of Material Company's background preliminary topic screening of topics Topics 1-1：Analyze based on global trends Drawing on the Self-Regulatory Guide3-1：Assess impact materiality and conduct macro-environment anallines No. 17 for Companies Listed on Sort through the potential or actual positive or ysis of China's industry development Shenzhen Stock Exchange - Sustainabilnegative impacts of each topic on the external trends ity Report (For Trial Implementation), UN environment, society, and economy, and conSustainable Development Goals (SDGs), duct a survey analysis of stakeholders using 1-2：Analyze based on the industry a questionnaire. A total of 194 questionnaires SASB, MSCI, and related topics from 1-3：Analyze based on the Company's domestic and international peers, the were collected, and based on the survey results, business model Company identified 23 material topics 17 topics with impact materiality were identiAssessment fied. based on its conditions and established Method 1-4：Identify the stakeholders of the a sustainability topic library. 3-2：Assess financial materiality Company and the impacts, risks, and Through the analysis of impacts, dependencies, opportunities the Company faces and other factors, in combination with questionnaires (74) and expert judgments and risk identification and evaluation lists from departments, identify and assess risks and opportunities under each relevant topic and identify 5 issues with financial materiality.

Step 4: Confirm material topics

Form a topic list based on impact materiality and financial materiality, and ensure that the relevant topics are transparently, fairly, and comprehensively disclosed in the report.

==> picture [668 x 10] intentionally omitted <==

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Material Topic Library

Dimension

Topics

==> picture [75 x 23] intentionally omitted <==

----- Start of picture text -----

Environmental
----- End of picture text -----

Pollutant Emissions
Environmental Compliance
Management
Waste Disposal
Energy Utilization
Ecosystem and Biodiversity
Protection
Response to Climate Change
Water Resource Utilization

==> picture [75 x 24] intentionally omitted <==

----- Start of picture text -----

Social
----- End of picture text -----

Protection of Employees'
Legal Rights and Interests
Data Security and Privacy
Protection
Supply Chain Security
Training and development
Contribution to Society
Occupational Health and
Safety
- Rural Revitalization
Innovation-Driven Growth
Product and Service Safe-
ty and Quality
Corporate
Governance ◎ Protection of Shareholders’ Rights and Interests
Due Diligence
Communications with Stake-
holders
Corporate Governance
Compliance
ESG Governance
Compliance and Risk Con-
trol
Anti-commercial Bribery
and Anti-corruption

Assessment Result of Topic Materiality

Based on the analysis results of industry standard and stakeholder feedback from returned surveys, we identified key issues in two dimensions of "impact materiality" and "financial materiality" to form a matrix of material topics in 2024.

-Dual Materiality Assessment and Analysis-

==> picture [327 x 322] intentionally omitted <==

----- Start of picture text -----

◎ Environmental Compliance ◎ Data Security and
Management Privacy Protection
◎ Water Resource Utilization ◎ Protection of
◎ Pollutant Emissions Shareholders’ Rights and ◎ Energy Utilization
Interests ◎ Response to Climate Change
◎ Waste Disposal
◎ Corporate Governance ◎ Innovation-Driven Growth
◎Legal Rights and InterestsProtection of Employees' Compliance ◎ Product and Service Safety and Quality
◎ Training and development ◎ControlCompliance and Risk ◎ Supply Chain Security
◎ Occupational Health and ◎ Anti-commercial Bribery
Safety and Anti-corruption
◎ Ecosystem and Biodiversity Protection
◎ Contribution to Society
◎ Rural Revitalization
◎ Due Diligence
◎ Communications with Stakeholders
◎ ESG Governance
General Materiality Very high
Materiality to corporate finance
Very high
General Materiality
----- End of picture text -----

Note: Topics such as technological ethics, ecosystem and biodiversity conservation, and equal treatment of small and medium-sized enterprises fall under disclosure topics for specific stakeholders that the Company does not currently engage in, and thus relevant content will not be disclosed.

About the Report

2024 Environmental, Social, and Governance Report

Message from Chairman

About Sustainable Development WCON Governance

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment Appendix

==> picture [86 x 57] intentionally omitted <==

Strengthen Compliance to Solidify Governance

==> picture [264 x 10] intentionally omitted <==

WCON remains steadfastly committed to fulfilling legal obligations and ensuring regulatory compliance in corporate governance. It continuously improves its corporate governance structure, strengthens internal control and risk management systems, protects shareholders' legitimate rights and interests, and strictly upholds business ethics. These efforts solidify the Company’s development foundation and safeguard its comprehensive and stable operations.

Responded Topics

◎Standardization of Corporate Governance ◎Protection of Shareholders' Rights and Interests ◎Compliance and Risk Control ◎Anti-commercial Bribery and Anti-corruption ◎Data Security and Privacy Protection

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

About Sustainable Development WCON Governance

2024 Environmental, Social, and Governance Report

Appendix

Standardize Governance for Stable Operation

Governance through the Shareholders’ Meeting, Board of Directors, and Board of Supervisors

During the Reporting Period, the Company strictly adhered to laws and regulations, including the Company Law, Securities Law, and Governance Code for Listed Companies. It revised key governance documents such as the Articles of Association, Related Party Transaction Decision-Making System, and Information Disclosure Management System, continuously improving corporate governance frameworks to standardize operations further and enhance governance standards.

The Company has established a corporate governance structure with a clear division of responsibilities among the Shareholders’ Meeting, Board of Directors, Board of Supervisors, and the Management, ensuring each entity fulfills its distinct roles while maintaining checks and balances. This structure enables scientific decision-making and standardized operations by implementing scientific and practical governance frameworks and operational processes, maximizing the roles of governance bodies in strategic decision-making, operational management, and oversight to safeguard stable and efficient corporate operations.

==> picture [368 x 128] intentionally omitted <==

----- Start of picture text -----

Shareholders’ Meeting
Board of Supervisors
Board of Directors
Compensation and Appraisal
Nomination Committee Strategy Committee Audit Committee
Committee
----- End of picture text -----

Shareholders’ Meeting

The convening, holding, and voting procedures of the Company’s Shareholders’ Meeting comply with the requirements of the Company Law, Articles of Association, and Rules of Procedure for Shareholders’ Meeting. Professional lawyers were retained to witness the proceedings on-site and issue legal opinions on their legality. The Shareholders’ Meeting adopts on-site and online voting methods to provide convenient conditions for shareholders to participate in the meeting. Separate vote tabulation is carried out for material matters affecting the interests of minority shareholders to ensure that all shareholders, particularly minority shareholders, can fully exercise their rights and safeguard the legitimate rights and interests of shareholders.

Board of Directors

The Company has formulated the Rules of Procedure for the Board of Directors to strictly regulate meeting procedures and decision-making processes, ensuring directors and the Board of Directors fulfill their duties effectively. The Board of Directors consists meets the requirements for board size and composition. The Board of Directors has established four specialized committees: the Nomination Committee, Compensation and Appraisal Committee, Strategy Committee, and Audit Committee, each with adopted rules of procedure. Each committee comprises at least one independent director, which enhances the operational capacity and professional expertise of the Board of Directors while ensuring its scientific and standardized decision-making processes.

==> picture [373 x 88] intentionally omitted <==

----- Start of picture text -----

During the Reporting Period
Business management
the Company held 9 special committee meetings
Professional
to deliberate 37 proposals. distribution Accounting
of directors
The Board of Directors consists of 5 directors,
including 2 independent directors. Engineering
----- End of picture text -----

During the Reporting Period

Board of Supervisors

The Shareholders’ Meeting convened 5 meetings, deliberated and approved 20 items;

The Board of Directors convened 6 meetings, deliberated and approved 39 items;

The Board of Supervisors convened 5 meetings, deliberated and approved 24 items, of which,

20 items were approved by the Board of Supervisors and 4 items were submitted to the Shareholders’ Meeting for approval.

The Company’s supervisors strictly adhere to the Articles of Association and Rules of Procedure of the Supervisory Board, attend the meetings of the Board of Supervisors, participate in the Board of Directors and Shareholders’ Meeting as non-voting observers, review periodic reports prepared by the Board of Directors, and issue written verification opinions. They effectively oversee the Company’s daily operations, material matters, financial status, and the legality and compliance of directors’ and senior management’s duties, ensuring standardized corporate operations.

During the Reporting Period

the Board of Supervisors comprised

3 members, including 1 employee

representative supervisor.

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Remuneration Management of Directors, Supervisors and Officers

In accordance with the Company Law and Articles of Association, the Company has formulated the Remuneration Management System for Directors, Supervisors, and Senior Managers, establishing a remuneration and performance evaluation framework for directors, supervisors, and senior executives. This system aims to rationally determine their compensation levels and payment structures, ensure active and effective discharge of responsibilities and duties, and promote the Company’s healthy, sustainable, and stable development.

Based on operational performance during the Reporting Period, the Company formulated and deliberated the Remuneration Plan for Directors, Supervisors, and Senior Managers in 2024. It is comprehensively evaluated and confirmed according to their specific job positions in the Company, in accordance with the remuneration management regulations and performance assessment. None of the Company's independent directors hold other positions in the Company, and their allowance standards are implemented in accordance with the resolution of the Company's second extraordinary shareholders’meeting in 2022, that is, RMB 120,000/year (including tax).

==> picture [103 x 69] intentionally omitted <==

----- Start of picture text -----

basic salary
year-end bonus
----- End of picture text -----

==> picture [245 x 41] intentionally omitted <==

----- Start of picture text -----

The remuneration of the Company's non-independent
directors, supervisors, and senior managers
----- End of picture text -----

==> picture [58 x 22] intentionally omitted <==

----- Start of picture text -----

Risk
Early Warning
----- End of picture text -----

Monitor and analyze various factors in the Company's operational process to identify potential risks in advance and trigger timely warnings.

Through continuously monitoring and tracking the identified risks, the Company maintains real-time awareness of evolving risk profiles to enable timely adaptation and implementation of responsive measures for effective risk control.

◎ Clarify the specific risk indicators of different risk types;

Risk ◎ Establish a risk monitoring system and improve the efficiency and accuracy of Tracking risk tracking through the automatic collection and analysis of real-time data;

◎ Regularly conduct a comprehensive assessment of risks, analyze the development trends of risks, and evaluate the effectiveness of the measures taken by the enterprise to deal with risks to adjust strategies promptly.

Each functional department conducts regular self-assessments and inspections Risk to implement the risk management solutions, while the Internal Audit Department Controlling provides oversight and evaluation.

Risk Management and Internal Control

Internal Control

Risk Management

The Company places significant emphasis on risk management, continuously establishing a comprehensive risk management framework that integrates risk identification into corporate decision-making processes, strengthens risk controls, and enhances risk mitigation capabilities to provide a solid foundation for sustainable development.

The Company has established a dedicated risk management function that periodically inspects and assesses the implementation and effectiveness of risk management practices across departments and business units. It evaluates cross-functional risk management solutions, provides recommendations for adjustments or improvements, and issues evaluation and recommendation reports. The Company’s Internal Audit Department conducts at least one annual supervisory evaluation of risk management practices and their effectiveness across all departments, preparing and submitting evaluation reports to the Audit Committee for oversight.

Collect internal and external initial information related to corporate risks and risk Risk management based on the analysis of risk types, including historical and predictive Identification data. Among them, the risk types include but are not limited to strategic, financial, market, operational, and legal compliance risks.

To standardize the Company's internal control, reasonably prevent and effectively control the risks in the Company's operations and management, and promote its sustainable development, the Company has formulated the Internal Control Management System and established a long-term mechanism for internal control evaluation. During the Reporting Period, under the leadership of the Board's Audit Committee, the Company's Audit Department actively carried out audit oversight in accordance with the Company's 2024 internal audit work plan, completing the 2024 annual internal audit work. No material irregularities were identified upon review.

Tax Management

The Company strictly complies with relevant tax laws and regulations, implementing rigorous management of all tax-related operations. The Company's Finance Department is responsible for tax filings, tax accounting, and tax planning activities, supported by a dedicated General Ledger Tax position that handles national and local tax declarations, duty drawback filings, monitors changes in tax policies, and mitigates enterprise tax-related risks.

During the Reporting Period

the Company made a total tax payment

of RMB 26,883,155.63.

Message from Chairman

Strengthen Compliance Low-Carbon Operations to Solidify Governance for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Enhance Investor Relations to Protect Shareholders' Interests

==> picture [434 x 10] intentionally omitted <==

Investor Relations Management

To standardize the management of investor relations, the Company has formulated the Investor Relations Management System and the Measures for the Management of Media Interviews and Investor Research Engagement Reception in accordance with the requirements of laws and regulations such as the Company Law, the Securities Law, and the Guidelines on Investor Relations Management of Listed Companies. The Company adheres to the principles of full information disclosure, compliant information disclosure, equal opportunities for investors, integrity and trustworthiness, high efficiency and low consumption, interactive communication, etc. It communicates with investors through multiple channels and at various levels to objectively, truthfully, accurately, and completely introduce and reflect the company's actual situation, enhance investors' understanding of the Company and value recognition, and effectively safeguard investors' right to know.

Company Announcement Interactive Easy Platform Email Telephone Consultations Investor Reception Days Teleconferences Investor communication Web Conferences Shareholders’ Meeting Performance Briefings Company's Website One-on-one Communications channels

During the Reporting Period

the Company held 2 performance briefings in total, participated in 1 reception day event, received investors' on-site research engagement activities many times,Replied to over 150 investor calls and emails;Published 5 records of investor relations activity and answered 105 questions on the Interactive Easy platform with a reply rate of 100%.

Information Disclosure

Dividend Return

The Company strictly complies with the laws and regulations, such as the Administrative Measures for Disclosure of Information by Listed Companies, and formulates the Information Disclosure Management System to standardize the information disclosure behaviors of the Company and relevant information disclosure obligors and ensure that the information disclosure is true, accurate, complete and timely. Meanwhile, the Company has formulated an Insider Registration System to strengthen the confidentiality of inside information and maintain the principle of fairness in information disclosure, which can ensure that the processes of transmission, review, and disclosure of undisclosed information are legal and compliant to prevent insider trading.

During the Reporting Period, the Company further revised the Information Disclosure Management System and continuously improved the transparency and quality of information disclosure. Beyond mandatory disclosures, the Company proactively and timely discloses all information that may materially impact stakeholders’ decisions, ensuring equal access to information for all shareholders.

During the Reporting Period

After a comprehensive evaluation by the Shenzhen Stock Exchange, the Company received a rating of A for its information disclosure work from 2023 to 2024.

60 announcements were disclosed, including 6 periodic reports and 54 temporary announcements. 0 penalties imposed for violations related to information disclosure.

A level

While paying attention to its development, the Company attaches great importance to shareholder returns and actively formulates and effectively implements the profit distribution plans. In line with the guidance of the China Securities Regulatory Commission to encourage enterprises to distribute cash dividends and provide investors with stable and reasonable returns, the Company implemented the 2023 profit distribution plan. To further increase the frequency of dividends and enhance the level of investor returns, the Company promoted and implemented the semi-annual equity distribution plan for 2024.

Dividends in the Past Three Years

Cash Dividend Per Share (Including Tax) (yuan/share) 2022 Annual 0.50 2023 Annual 0.30 0.50 2024 Annual		3,663.12 Total Cash Distribution (Including Tax) (In 10,000 yuan) 3,267.33 5,475.03		The proportion of Net Proft Attributable to Shareholders of the Parent Company(%) 64.06
				25.06
				32.70

Note 1: It includes the actual dividend distribution in the first half of 2024 and the total amount of the proposed dividend distribution for the year 2024

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Human-Centric Commitment

Sustainable Development Governance

Innovation-Driven Transformation

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Reinforce Compliance for Business Ethics

Compliance Management

The Company always adheres to honest operation and establishes a sound compliance management system. To effectively prevent and control the compliance risks and improve the Company's compliance-driven operational management capabilities, the Company has formulated the Internal Control Management System and established a dedicated Compliance Management Department according to the requirements of laws and regulations such as the Company Law. The Company’s principal responsible person serves as the primary driver for advancing the rule of law and bears ultimate accountability for compliance. The Compliance Management Department leads and coordinates compliance-related initiatives, while functional departments implement compliance risk assessments, reviews, and other measures in line with their respective functions.

The Company continuously strengthens its compliance management system by standardizing the compliance operation mechanism, cultivating a compliance culture, enhancing the information system's control, reinforcing supervision and accountability, raising overall compliance awareness, and ensuring lawful and compliant business operations.

Standardize the Operation Mechanism

Cultivate a Compliance Culture

Strengthen Information Control

Strengthen Supervision and Accountability

Establish a compliance risk identification,
assessment, and early warning mechanism
Embed compliance review as a necessary
procedure in the operation and management process
Each functional department establishes a
rectification mechanism for non-compliance issues
Establish and improve a coordinated op-
eration mechanism for compliance management, legal affairs management, internal control, risk management, etc., in combination with the actual situation
Incorporate compliance management into
the annual special learning topic
Establish a normalized compliance train-
ing mechanism
Strengthen the compliance publicity and
education, promptly release compliance manuals, and organize the signing of compliance commitments
Incorporate the compliance regulations,
typical cases, compliance training, records of non-compliant behaviors, etc., into the information system
Regularly review the business processes
to identify the compliance risk points and strengthen compliance reviews at critical junctures
Realize the interconnection, data sharing,
and common use between the compliance management information system and other information systems for finance, investment, and procurement

The Company's Audit Department and Securities Department monitor the implementation of compliance requirements, investigate non-compliant behaviors, and pursue accountability in accordance with relevant regulations and within their respective authorities.

Regularly carry out an effectiveness
evaluation of the compliance management system

About the Message from Report Chairman

Strengthen Compliance Low-Carbon Operations to Solidify Governance for a Green World

Innovation-Driven Human-Centric Transformation Commitment

About Sustainable Development WCON Governance

2024 Environmental, Social, and Governance Report

Appendix

Anti-Commercial Bribery and Anti-Corruption

The Company and its affiliated companies are committed to responsible business behaviors and strictly abide by relevant laws, regulations, and business ethics. The Integrity and Anti-bribery Policy has been formulated to require all employees and external third parties engaged in business with the Company to comply with the Policy while expressly prohibiting all forms of bribery and corrupt practices. The Company establishes an audit team responsible for formulating and implementing the Company's anti-bribery policy and supervising and facilitating the execution of relevant compliance initiatives.

The Company proactively adopts and implements control measures to prevent and detect bribery and corrupt practices, promoting clean management.During the reporting period, no litigation events occurred as a result of commercial bribery or corruption.

Sign the Agreement for Integrity and Self-discipline of Employees with employees and the Integrity Agreement with business partners to institutionalize the prevention of corrupt practices;
Interview employees in key departments and sensitive executives, including middle-level managers and senior leaders, and conduct questionnaires on corporate integrity, ethics, and commercial bribery for employees in key departments at different levels to gain in-depth insights into employees’ genuine perspectives and actual situations and strictly control and prevent any potential conflicts of interest;
Conduct self-examinations by irregularly reviewing relevant contracts, reimbursement vouchers, and other documentation and analyzing the business data of key positions and sensitive processes;
Standardize the management of the gift acceptance and entertainment expenses to prevent commercial bribery through improper gifts and entertainment;
Implement the job rotation system and the nepotism avoidance policies for key positions to prevent the abuse of power and commercial bribery.

To ensure the effective implementation of the anti-bribery management system, the Company carries out anti-bribery-related training programs. It integrates the Integrity and Anti-bribery Policy into the new employee onboarding so that employees can understand the anti-corruption laws, requirements, and obligations of the Company's anti-bribery management. By aligning integrity culture with corporate governance and job functions, the Company strives to foster an environment of ethical business conduct. During the Reporting Period, the Company held 2 special training sessions on the Integrity and Anti-bribery Policy for employees in key and sensitive positions. The trainees encompassed all the staff at middle and senior management levels.

During the Reporting Period

Total duration of anti-commercial bribery and anti-corruption training

provided to directors: 6 hours provided to the Management: 80 hours

provided to employees: 238 hours

==> picture [75 x 75] intentionally omitted <==

==> picture [368 x 144] intentionally omitted <==

----- Start of picture text -----

Anti-Commercial
Bribery
----- End of picture text -----

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations Innovation-Driven Human-Centric for a Green World Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Anti-Unfair Competition

To standardize marketing management and prevent unfair competition behaviors, the Company has formulated systems such as the Anti-monopoly Compliance Management System and the Measures for Management of Market and Competition Analysis in accordance with the Anti-Monopoly Law of the People's Republic of China and the Anti-monopoly Compliance Guide for Operators, explicitly prohibiting unfair practices such as false advertising, maliciously slandering competitors, and stealing trade secrets in marketing. By doing so, the Company continuously enhances its ability to prevent, control, and deal with anti-monopoly compliance risks and solidifies the foundation for law-abiding and compliant operations. The Company adheres to the principles of problem orientation, practicality and high efficiency, and comprehensive coverage in anti-monopoly compliance management, establishing a continuous supervision mechanism to monitor the market dynamics, industry competition conditions, changes in laws and regulations, and the Company's internal practices. It periodically reviews the effectiveness of risk management measures and adjusts strategies based on the actual situation to ensure ongoing compliance with anti-monopoly and anti-unfair competition requirements.

The Company regularly organizes anti-unfair competition training for marketing personnel, including relevant laws and regulations, internal corporate rules, and case studies to strengthen awareness of fair competition. Anti-unfair competition compliance is integrated into the performance assessment, with the results directly linked to employees' salary adjustments, bonus distributions, promotions, and job adjustments. Employees demonstrating excellence in anti-unfair competition will receive commendations and incentives, and those who violate the regulations will be punished proportionately to the severity of the offense.No incidents of unfair competition took place during the reporting period.

Whistleblowing and Whistleblower Protection

The Company establishes a unique whistleblowing channel through which reporting information can be received. Any relevant party aware of any actual or suspected violations of the Integrity and Anti-bribery Policy may report the relevant incidents according to the established process. The Audit Team will initiate appropriate actions for alleged misconduct, improper behavior, or fraud. The Company supports both named and anonymous whistleblowing, firmly safeguarding whistleblowers’ safety and interests from any negative impacts while ensuring the confidentiality of reported information is strictly protected. Rewards are provided to individuals whose recommendations are implemented or whose reports are verified to be true.

==> picture [156 x 9] intentionally omitted <==

==> picture [155 x 9] intentionally omitted <==

Channels

==> picture [187 x 59] intentionally omitted <==

----- Start of picture text -----

Phone
0769-85358920-6075
----- End of picture text -----

WeChat Public Account Clean WCON

Email Written or in-person reports [email protected] Audit Department, WCON Electronics (Guangdong) Co., Ltd., No. 15 Wenming Road, Daning, Humen Town, Dongguan, Guangdong

==> picture [391 x 168] intentionally omitted <==

----- Start of picture text -----

Anti-Unfair Competition
----- End of picture text -----

Whistleblowing Handling Process

==> picture [38 x 38] intentionally omitted <==

==> picture [37 x 38] intentionally omitted <==

==> picture [38 x 38] intentionally omitted <==

==> picture [253 x 45] intentionally omitted <==

----- Start of picture text -----

Occurrence of the
Incidents and Receipt of Incident Investigation
Whistleblowing
----- End of picture text -----

==> picture [116 x 45] intentionally omitted <==

----- Start of picture text -----

Evaluation and
Handling
----- End of picture text -----

The Audit Team receives the whistleblowing information and conducts a preliminary verification;

The Audit Team expeditiously conEvaluate the impact caused by ducts information gathering and the incident and impose approother related tasks, launching a priate disciplinary actions on the further in-depth investigation into persons involved based on the incidents with profound integrity investigation findings and impact or bribery problems identified in assessments. In cases involving the preliminary investigation. If illegal or criminal acts, the case necessary, external professional shall be referred to the judicial institutions are enlisted to assist authorities for handling. in the investigation;

Abnormalities in fund flows are identified during the internal audit or financial inspection;

About the Message from Report Chairman

Strengthen Compliance Low-Carbon Operations to Solidify Governance for a Green World

Innovation-Driven Human-Centric Transformation Commitment

About Sustainable Development WCON Governance

2024 Environmental, Social, and Governance Report

Appendix

Prioritize Data Security to Prevent Privacy Breach

Data Security Protection

The Company regards data security as an essential cornerstone of its development, upholding the data security management philosophy of “prevention orientation, comprehensive governance, security and controllability, and continuous improvement.” A multifaceted approach covering technology, management, and personnel awareness constructs a comprehensive, multi-layered protective system to strictly safeguard the absolute security of internal core business data, operational information, and customer privacy. The Company continuously optimizes and improves its security management strategies to adapt to the challenges posed by new technologies and emerging business models. During the reporting period, no incidents of data security breaches or customer privacy breaches were reported at the Company.

Governance of Data Security

The Company strictly follows laws and regulations such as the Network Security Law of the People's Republic of China, the Data Security Law of the People's Republic of China, and the Personal Information Protection Law of the People's Republic of China, formulating the Information Security Protection System to standardize the scientific and secure data management strategies and processes. It implements effective data security technologies and management measures to safeguard the confidentiality, availability, and integrity of data during the processes of collection, transmission, exchange, processing, and storage.

The Company establishes an IT Department led by an information security officer and supported by operations and maintenance personnel. It is responsible for the daily security management of corporate systems and data to conduct information security risk assessments, implement security projects, and organize contingency drills. Through well-defined institutional frameworks and organizational structures, the Company ensures clear functional demarcation and effective implementation of data security management. In order to strengthen the information security expertise of relevant personnel, the Company organizes specialized training programs on relevant knowledge of information data security and continuously improves their professional capabilities.

During the Reporting Period

The Company conducted 12 information data security training sessions,

investing RMB 97,000 in data security.

The Company regards data security as an essential cornerstone of its development. It adopts a multi-pronged approach covering technology, management, and personnel awareness to construct a comprehensive, multi-layered protection system. This effectively guarantees the security of corporate data assets, maintains the corporate reputation and customer trust, and lays a solid foundation for the Company's sustainable development.

Management Measures

Establish a Data ◎ Adopt the Tipray Green Shield Encryption System to encrypt data;
Security Protection ◎ Implement a multi-factor authentication mechanism and role-based access control Platform permissions.

◎ The data center is equipped with physical protection facilities such as automatic alarm Build a Data systems and surveillance cameras; an environmental monitoring system is deployed to Center ensure that the equipment operates in suitable environmental conditions; ◎ Establish a secure network architecture and deploy server security protection software.

==> picture [66 x 41] intentionally omitted <==

----- Start of picture text -----

Implement
System Security
Protection
----- End of picture text -----

◎ Deploy firewalls and intrusion detection/prevention systems;

Provide security development training for various business applications developed by the Company; deploy web application firewalls for applications.

==> picture [66 x 53] intentionally omitted <==

----- Start of picture text -----

Periodically Test
Critical Data Hardware
Equipment
----- End of picture text -----

Regularly conduct health checks on servers, storage devices, and network equipment that store key data;
Adopt redundant design for key data hardware equipment;
Regularly test data backup devices and check the integrity and recoverability of backup data.

==> picture [66 x 52] intentionally omitted <==

----- Start of picture text -----

Periodically
Test Key Data
Systems
----- End of picture text -----

◎ Regularly conduct functional and performance tests on key data systems;

Establish a security vulnerability management mechanism to track and manage
identified security vulnerabilities;
Regularly conduct security vulnerability tests.

==> picture [117 x 66] intentionally omitted <==

==> picture [117 x 17] intentionally omitted <==

----- Start of picture text -----

Data Center
----- End of picture text -----

==> picture [117 x 17] intentionally omitted <==

----- Start of picture text -----

Tipray Green Shield Encryption System
----- End of picture text -----

==> picture [117 x 17] intentionally omitted <==

----- Start of picture text -----

Sangfor Firewall
----- End of picture text -----

About the Message from Report Chairman

Strengthen Compliance Low-Carbon Operations to Solidify Governance for a Green World

Innovation-Driven Human-Centric Transformation Commitment

About Sustainable Development WCON Governance

2024 Environmental, Social, and Governance Report

Appendix

Customer Privacy Protection

The Company attaches great importance to customer information security, protects customer information assets, maintains customer privacy, avoids information security incidents, and ensures the security and confidentiality of customer information.

Protective Measures

Encrypt Customer Data

Adopt an automatic encryption strategy to save customer data and set the control level for decryption permissions. If the permission level does not match, the file's content will remain encrypted and unreadable after opening it.

Control File Access Permissions

Control the permissions of the file directories storing user data information, set different permission categories, and allocate them according to business needs.

File Access Audit

Record the operation activities related to user data and the corresponding users. The audit system will trigger alerts and record non-compliant operations to ensure the security of user file directories.

==> picture [368 x 295] intentionally omitted <==

Low-Carbon Operations for a Green World

2024 Environmental, Social, and Governance Report

About the Report

Message from Chairman

About

WCON

Sustainable Development

Governance

Strengthen Compliance to Solidify Governance

Innovation-Driven Human-Centric Transformation Commitment

Appendix

==> picture [99 x 57] intentionally omitted <==

Low-Carbon Operations for a Green World

==> picture [264 x 10] intentionally omitted <==

WCON has always adhered to the concept of green development, proactively responded to the challenges of climate change, continuously improved the level of environmental management, strengthened the prevention and control of pollution and waste, improved the efficiency of energy and resource utilization, and is committed to building a green and low-carbon modern industrial park, promoting the green and sustainable development of the enterprise, and making contributions to the national “dual carbon” goal.

Responded Topics

◎Response to Climate Change

◎Environmental Compliance Management

◎Pollutant Emissions

◎Waste Treatment
◎Energy Utilization
◎Water Resource Utilization

==> picture [9 x 6] intentionally omitted <==

----- Start of picture text -----

24
----- End of picture text -----

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Low-Carbon Initiatives to Address Climate Change

Climate change is one of today's most significant global risks, threatening human health and enterprises' long-term sustainable development. To implement the national “dual-carbon” policy, by drawing on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), the Company manages climate-related risks and opportunities through four dimension, namely governance structure, risk and opportunity identification, risk management, and metrics and targets.

Climate Change Governance

The Company formulates the Control Procedure for Combating Climate Change to standardize the management and response measures of the enterprise in addressing the environmental and climate variability issues. It progressively constructs a climate governance system to tackle challenges posed by climate change proactively. The General Manager's Office of the Company is responsible for formulating climate strategies and objectives to ensure the proactive alignment of overall corporate development strategies with climate change trends. The Environmental and Climate Change Management Committee is responsible for the specific formulation of climate policies, risk assessment, and supervision of implementation to ensure the effective implementation of climate strategies. The Management integrates climate strategies into daily operations and supervises the implementation of climate adaptation measures across all business units. Each business unit formulates and implements specific climate adaptation measures according to its characteristics and business scope to ensure that the enterprise fully considers climate change factors in daily operations and achieves sustainable development.

To improve climate variability governance, the Company established positions of Carbon Emission Administrators and Verification Process Inspectors, enforcing strict requirements for personnel's years of professional experience, general knowledge and skill proficiency, and specialized knowledge and expertise.

==> picture [498 x 249] intentionally omitted <==

----- Start of picture text -----

General Manager’s Office General Manager
Environmental and Climate Change Management Committee
Member Member of the
Member of Member of Member of Member of the Member of of the Member
the Human Member of the Quality Hardware of Project Manufacturing
Marketing Manufacturing Production
DepartmentResources Center R&D Center Management Department Department Departmentand Plastic Planning Management Department Engineering
Department Department
----- End of picture text -----

==> picture [65 x 74] intentionally omitted <==

During the Reporting Period, the Company organized 2 knowledge training sessions for carbon management personnel and conducted question-based assessments on the trainees. The overall assessment results were

all qualified[.]

Risk and Opportunity Identification Process

The Company systematically evaluates the array of risks and opportunities confronting the Company, classifying them into physical risks, transition risks, and opportunities. Drawing on national laws and regulations, policy directives, domestic and international sustainable development trends, and organizational context, we define and describe the risks and opportunities climate change precipitates. Based on identified risks and opportunities, the Company analyzes their likelihood and severity in light of daily operational activities, further evaluates potential financial impacts on the Company, and formulates corresponding management and response measures to address climate change while seizing opportunities proactively.

About the Message from Report Chairman

Strengthen Compliance Low-Carbon Operations Innovation-Driven Human-Centric to Solidify Governance for a Green World Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Climate Change Strategy

==> picture [758 x 442] intentionally omitted <==

----- Start of picture text -----

Risk Risk Risk Analysis Explanation of Potential
Description Management Measures
Type Description Severity Frequency Financial Impact
◎ Screen alternative suppliers to reasonably control the purchase costs.
Factors such as climate change
◎ Promote suppliers' transition towards energy conservation and emission reduction
may lead to an increase in raw
Increase in Raw Material Costs 5 2 through supplier communication, implementation programs, and investigation.
material prices and purchase
◎ Establish a low-carbon monitoring mechanism for upstream raw materials.
costs.
◎ Accelerate the green transformation and introduce new technologies and materials.
Market
Risks
The change in consumer pref-
erences leads to a decrease ◎ Advocate for using clean energy, building rooftop photovoltaics, purchasing green elec-
in the demand for goods and tricity and certificates, etc., to accelerate the green transformation.
Change in Consumer Behavior 5 2
services, a reduction in operat- ◎ Introduce new technologies and materials.
ing income, and an increase in ◎ Establish a low-carbon monitoring mechanism for upstream raw materials.
operating costs.
Transition
Risks ◎ Pay attention to policy changes in various regions and adjust based on the situation
and customer needs.
Policy changes lead to the
◎ Use clean energy such as rooftop photovoltaics and purchase green electricity to re-
write-off, impairment, or early
place traditional fossil energy and promote the transformation of the energy structure.
retirement of existing assets;
◎ Set the objectives of energy conservation and consumption reduction, promote energy
Carbon Emission Control Policy 5 2 failure to promptly respond to conservation and emission reduction, and improve energy use efficiency from the man-
control policy may lead to ille-
gal fines and increased compli- agement and technical levels.
Policy and ance operation costs. ◎ Analyze the future change trends of energy efficiency standards to ensure that the
Company's production equipment and processes meet the requirements of new stand-
Regulatory
ards.
Risks
The government, social
The pollution emissions may ◎ The EHS management plan shall be strictly implemented to ensure that the company's
organizations, and residents do
4 1 lead to illegal fines and cause wastewater, exhaust gas, and perimeter noise emissions meet the standards, with at
not accept excessive pollution
a negative reputation. least compliance monitoring once a year.
emissions
----- End of picture text -----

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

==> picture [758 x 444] intentionally omitted <==

----- Start of picture text -----

Risk Risk Risk Analysis Explanation of Potential
Description Management Measures
Type Description Severity Frequency Financial Impact
There is a lack of proper identi-
fication, collection, and publicity
of applicable EHS laws and reg-
Failure to promptly identify and
ulations. Moreover, the environ-
Policy and respond to policy control may lead ◎ Strengthen the identification, collection, and periodic updates of applicable EHS laws
mental factors and hazards re-
Regulatory 3 1 to illegal fines; inadequate internal and regulations, with key provisions incorporated into training programs or institutional-
lated to the Company's internal
Risks risk identification increases oper- ized in company policies.
activities are not clearly defined,
ating costs.
and some employees have a
weak sense of compliance with
the law
◎ Pay close attention to green innovations such as clean energy and energy-saving tech-
Transition Technology Increase in R&D expenditures nologies, and evaluate whether the enterprise can adapt to technological changes.
Technology Substitution Risk 5 2
Risks Risks and procurement costs. ◎ Establish diversified relationships with technology suppliers to mitigate reliance on a
single technology supplier and minimize the risks associated with technology transition.
◎ Publicly disclose policies and information related to climate change to ensure all stake-
holders can obtain relevant information and supervise and evaluate the Company's per-
formance.
The decrease in customers' trust
◎ Evaluate the possible impact of climate change on the enterprise's brand image and
Reputation Increased Concerns or Negative in the Company leads to a decline
5 2 customer loyalty and formulate response strategies for maintaining and enhancing the
Risks Feedback from Stakeholders in product demand and a reduc-
brand reputation.
tion in revenue.
◎ Conduct a customer satisfaction survey in the form of a questionnaire once a year and
summarize the customer satisfaction survey results to let relevant departments take cor-
responding corrective and preventive measures.
Sudden weather causes damage
to infrastructure and equipment,
Extraordinary Climate Emergen-
Physical leading to an increase in operating ◎ Formulate the Control Procedure for Emergency Response.
Climate Risks cies (such as Typhoons, Rain- 5 1
Risks costs; it may affect the production ◎ Provide training programs for employees on such emergency response plans.
storms,Floods, Earthquakes, etc.)
schedule and cause a decrease in
operating income.
----- End of picture text -----

Remarks：1、Severity: 1) Extremely Severe, 2) Severe, 3) Significant, 4) Moderate, 5) Minor 2、Frequency: 1) Rare, 2) Unlikely, 3) Occasionally, 4) Likely, 5) Frequent

About the Message from About Report Chairman WCON

Strengthen Compliance Low-Carbon Operations Innovation-Driven Human-Centric to Solidify Governance for a Green World Transformation Commitment

Sustainable Development Governance

2024 Environmental, Social, and Governance Report

Appendix

==> picture [758 x 318] intentionally omitted <==

----- Start of picture text -----

Description Opportunity Content Management Measures
◎ Establish a special fund for EHS management to ensure the source of funds for EHS man-
Financial Management Sufficient Funds for the Company's EHS Management System
agement investment.
◎ Optimize the design of green products and reduce the use of materials from the source.
Resource Efficiency Recycling Technology ◎ Advocate the recycling of materials and the transformation of waste.
◎ Implement water recycling practices and establish a reclaimed water reuse system.
◎ Build rooftop photovoltaics, purchase green electricity, certificates, etc., to accelerate the
green transformation.
◎ Set the objectives of energy conservation and consumption reduction, promote energy con-
Energy Source Low-emission Energy Sources servation and emission reduction, and improve energy use efficiency from the management
and technical levels.
◎ Accelerate the construction of the energy management system to create a green manufac-
turing system.
The Company has not received any complaints or penalties from
Compliance Provisions ◎ Comply more strictly with regulatory requirements.
government authorities or surrounding residents.
Some customers require the Company to establish an ESG manage- ◎ Continuously implement the ESG management system and accept a third-party institution's
ment system. certification audit to ensure the ESG certificate's effectiveness.
Requirements and Expectations
of Stakeholders
The audit institution requires the Company to meet the requirements
◎ Accept the review of the audit institution and promptly improve and track any identified
of the ESG management system and continuously improve the ESG
problems. Make the ESG management system operate effectively.
management system.
----- End of picture text -----

Low-carbon Goals

In alignment with the national initiative for a green, low-carbon circular economy, the Company has proactively advanced energy conservation and carbon reduction by formulating the Enterprise Low-Carbon Action Plan during the Reporting Period. The Company has enhanced environmental and energy management capabilities through continuous investment in green resources for decarbonization efforts. We are fully managing its carbon emission pathways with the ambition to reduce carbon emissions by 35% by 2035 and achieve a net-zero carbon factory within the next decade.

==> picture [191 x 10] intentionally omitted <==

Reduce the proportion of greenhouse gas emissions: carbon emissions will be reduced by 5% in 2024 and 35% in 2035.

==> picture [191 x 10] intentionally omitted <==

Improve energy utilization efficiency and ensure that the proportion of carbon emissions relative to output during production continues to decrease.

==> picture [35 x 35] intentionally omitted <==

==> picture [191 x 10] intentionally omitted <==

Reduce dependence on traditional

energy, proactive utilization of renewable, clean energy, such as solar, wind, and air, is recommended.

==> picture [191 x 10] intentionally omitted <==

Promote energy-saving and environmental protection technologies and improve the overall environmental protection level of the enterprise.

==> picture [35 x 35] intentionally omitted <==

==> picture [191 x 10] intentionally omitted <==

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Report

Greenhouse Gas Management

The Company establishes a data monitoring system to conduct real-time comprehensive monitoring of greenhouse gas(“GHG”) emissions, energy consumption during production, and wastewater and exhaust gas emissions. It regularly evaluates the emission reduction work and promptly discovers and solves problems. According to the evaluation results, the Company summarizes and analyzes the experience of emission reduction, promptly adjusts and optimizes the emission reduction plan, learns from the experience of advanced enterprises, and introduces new emission reduction technologies and concepts.

==> picture [758 x 205] intentionally omitted <==

----- Start of picture text -----

Main Production and Operation Activities of Carbon Emissions
Corresponding Activities/
Category Subcategories Emission Source Forms of Emission Source Potential Types of GHG
Facilities
Direct Emissions Gasoline Company cars Transportation CO2, CH4, N20
Category 1
(Direct GHG Emissions)
Fugitive Emission of
Sewage Septic Tanks Fugitive CH4
GHG
Category 2
Indirect Emissions from Purchased Energy Consumption of
(Indirect GHG Emissions from Electric power Energy CO2
Electricity Equipment and Lighting
Energy)
----- End of picture text -----

During the Reporting Period Total GHG Emission 4,336.63 tCO2e Direct GHG Emissions (Scope 1) 73.93 tCO2e Indirect GHG Emissions (Scope 2) 4,262.71 tCO2e

Statistical Explanation: Scope 1 GHG emissions are calculated based on default values of common fossil fuel characteristic parameters issued by the National Development and Reform Commission of the People's Republic of China; Scope 2 GHG emissions are calculated based on average carbon dioxide emission factors for China's regional power grids issued by the National Development and Reform Commission of the People's Republic of China.

Carbon Asset Management

To standardize the Company's carbon asset trading behavior, improve the transparency and credibility of carbon asset trading, and promote the healthy development of the carbon market, the Company formulates the Procedure for Carbon Asset Trading Management, establishes a Carbon Finance Department to manage and carry out the carbon asset trading activities, the supervision department supervises and inspects the compliance and fairness of the Company's carbon asset trading, and the environmental protection department supervises the situation of carbon assets and carries out emission reduction work. The Company strictly stipulates the processes and requirements, supervision and review, risk management, information disclosure, and penalties for violations of carbon asset trading. It clarifies that the Carbon Finance Department shall strengthen the early warning, monitoring, and prevention of carbon asset trading risks. The carbon asset trading institution shall establish and improve the internal control system and promptly report the trading information to the Carbon Finance Department.

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Implement Carbon Reduction Initiatives

Low-carbon Measures

Specific Actions

Optimize Production Processes, Promote Clean Technologies and Energy-saving Equipment

Build dust-free workshops and CNAS laboratories that can meet the General Requirements for the Competence of Testing and Calibration Laboratories of the ISO/IEC
17025:2017 Laboratory Management System;
Solar photovoltaic and energy storage charging canopy; solar light guiding system installed in the basement; solar-powered streetlights; enclosed cooling tower;
heat-insulating film applied to factory and dormitory windows; and double-glazed windows installed.

Implement Low-carbon-related Systems to Improve Energy Efficiency Management

◎ Currently implement the ISO14064-1:2018 carbon verification system. It is expected to complete the third-party certification in Q4 of 2025

Strengthen energy management and establish an energy informatization monitoring and management system

==> picture [129 x 246] intentionally omitted <==

----- Start of picture text -----

Promote Clean Energy
Promote Recycling and
Reuse
Green Office
Promote the Concept of
Energy Conservation and
Environmental Protection
----- End of picture text -----

Encourage employees to use public transportation to reduce vehicle exhaust emissions.
Build solar power generation facilities to provide clean energy for the Company's electricity consumption.
Collect and utilize the condensed water of air conditioners ◎ Recycle the material packaging PE bags/cartons, etc.
◎ Reuse the material reels
Set up waste classification and recycling facilities con◎ Reuse office supplies such as file bags and data bags ◎ Advocate water conservation
venient for employees ◎ Use Lark and other systems to implement a paper◎ Save electricity for office equipment and air conditioners less office
Conduct publicity and education on energy conservation and environmental protection knowledge to improve employees' and the public's awareness of energy con-
servation and environmental protection.
Cooperate with relevant departments to strengthen the publicity of environmental protection policies and supervise compliance.

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Strengthen Pollution Control

The Company adheres to the EHS management policy of “complying with environmental regulations, committing to pollution prevention and control; making rational use of resources, manufacturing green products; improving environmental protection awareness, continuously improving the environment; caring for employees' health and attaching importance to work safety,” and strictly complies with the requirements of national laws and regulations such as the Environmental Protection Law of the People's Republic of China and the Environmental Protection Tax Law of the People's Republic of China to carry out the environmental management. During the Reporting Period, the Company reported zero environmental incidents or zero violations of laws and regulations concerning environmental protection.

Environmental Management System

Environmental Emergency Management

The Company establishes an EHS management system based on the ISO 14001:2015 and ISO 45001:2018 standards, clarifies each department's environmental responsibilities, and formulates and implements the Environmental/Occupational Health and Safety Manual. At least once annually, internal audits and management reviews are conducted to identify corrective and preventive actions for continuous improvement. Currently, the Company has passed the ISO 14001 environmental management system certification.

==> picture [108 x 153] intentionally omitted <==

ISO 14001:2015 Certification

Management of Environmental Risks

The Company formulates the Control Procedures for Identification and Evaluation of Environmental Factors, identifying and determining the environmental factors that may impact the Company's activities, products, and services to effectively control the critical ecological impact factors. The company established an ISO 14001 Implementation Committee to evaluate environmental and significant environmental factors. It engages a third-party institution to assess its construction projects' environmental impact.

To effectively prevent and respond to sudden environmental incidents and reduce the harm caused by incidents to the environment and society, the Company formulates the Emergency Plan for Environmental Management according to relevant laws and regulations such as the Emergency Response Law of the People's Republic of China and local environmental protection policies. The Company established an Environmental Management Emergency Command Center, which is responsible for organizing, coordinating, and commanding the emergency handling of sudden ecological incidents. By strengthening environmental monitoring, maintaining environmental protection facilities, strengthening employees' environmental awareness education, and promoting and training emergency plans, the Company comprehensively improves its emergency handling ability.

Hazardous Substances Monitoring

The Company formulates standard documents such as the Regulations on the Management of Hazardous Substances to investigate, label, and manage the hazardous substances to the environment, throughout the whole process from incoming materials to product shipment, to ensure that the products are healthy and safe and can continuously meet the requirements for the use and management of hazardous substances to the environment put forward by customers or relevant domestic and foreign organizations. The Company strictly implements the national laws and regulations, local policies, decrees of the customer's country, and appropriate customer requirements, and formulates the Restriction Standard for Hazardous Substances to standardize the “Control List of Hazardous Substances.” This list details all hazardous substances used, managed across three management levels, and classified by applicable product categories, with real-time updates to prevent non-environmentally friendly materials, components, and products from entering the supply chain and mitigate environmental impact.

During the reporting period, all the identified hazardous substances of the Company passed third-party testing and certification.

==> picture [121 x 100] intentionally omitted <==

----- Start of picture text -----

Ecological Leakage of
Pollution Toxic and
Accidents Hazardous
Substances
Emergency Plan
for Environmental
Management
Other Incidents Hazardous
that may cause Chemical
Environmental Pollution
Accidents
----- End of picture text -----

==> picture [154 x 136] intentionally omitted <==

----- Start of picture text -----

Materials
Investigate,
Auxiliary
Component Label
Materials
Manage
Tools,
Packaging Materials
----- End of picture text -----

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Strengthen Pollutant and Waste Prevention and Control

The Company strictly complies with laws and regulations such as the Law of the People's Republic of China on the Prevention and Control of Water Pollution, the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution , the Law of the People's Republic of China on Prevention and Control of Environmental Pollution by Solid Wastes and the Regulations of Guangdong Province on the Prevention and Control of Environmental Pollution by Solid Wastes, formulates procedure documents such as the Control Procedure for Water Pollution and the Control Procedure for Waste Gas Emission and Noise, establishes and improves the pollution and waste management system, proactively takes measures to reduce the emission of wastewater, waste gas and waste, and is committed to reducing the impact of its operation on the environment.

==> picture [569 x 171] intentionally omitted <==

----- Start of picture text -----

Environmental Management Objectives Achievements in 2024 Metrics Performance in 2024
Wastewater Discharges 76,748.79 tons
The disposal of hazardous solid
waste complies with relevant reg- Waste Gas Emissions 0.66 tons
ulations, with 100% categorized Achieved
storage and handling by qualified
Quantity of General Waste Generated 3 tons
units.
Quantity of General Waste Disposed of 3 tons
The emission of wastewater,
Quantity of Hazardous Waste Generated 2 tons
waste gas, and noise complies
Achieved
with relevant regulatory require-
ments. Quantity of Hazardous Waste Disposed of 2 tons
----- End of picture text -----

Waste Management

The Company implements waste management in accordance with the principles of “classified recycling and reduction,” formulating the Waste Management Control Procedure. Waste is divided into two major categories: general waste (recyclable and non-recyclable) and hazardous waste. Corresponding treatment measures are adopted based on waste categories, with each department implementing classified collection and storage management of generated waste in compliance with regulations. During the Reporting Period, the Company formulates a hazardous waste management plan, evaluates the annual expected generation and transfer volume of hazardous waste, and determines hazardous waste's receiving units and qualification capabilities.

==> picture [758 x 178] intentionally omitted <==

----- Start of picture text -----

Waste Categories Disposal Method
Recyclable waste: Waste electronic wires, waste metal scraps, Collected by the Company and then sold to professional recycling entities for recy-
General waste packaging materials, etc. cling and reuse
Waste
Non-recyclable waste: Domestic waste garbage Handed over to the Sanitation Department for disposal
Hazardous
Emulsion, waste engine oil, etc. Entrusted to a qualified third party for waste collection and treatment
Waste
----- End of picture text -----

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations Innovation-Driven Human-Centric for a Green World Transformation Commitment

Sustainable Development Governance

About the Report

About

2024 Environmental, Social, and Governance Report

Appendix

WCON

Wastewater, Waste Gas and Noise Management

Types of Pollutants and Waste

==> picture [103 x 96] intentionally omitted <==

----- Start of picture text -----

Wastewater
----- End of picture text -----

Mainly domestic sewage, a small amount of equipment cleaning wastewater, and cooling water for the factory building construction project.

==> picture [40 x 31] intentionally omitted <==

Specific waste gas is generated in steps such as the injection molding and grinding processes.

Waste Gases Specific noise will be generated during the operation of machinery and equipment, such as high-speed punching machines and mixers. Noise

Treatment Measures

Both sewage and wastewater are centrally treated, and the cooling water for the project can be recycled and will not be discharged outside. Domestic sewage is pretreated by a septic tank and then discharged into the municipal sewage interception pipeline network. It will not directly enter the water body, which complies with the national requirements for emission management standards.

By strengthening the ventilation in the workshop and collecting the waste gas for centralized treatment, the generated organic waste gas is treated by a two-stage activated carbon adsorption device and discharged at a high altitude after meeting the standards. In addition, the primary air pollutants emitted during the factory building construction project are mainly VOCs. Through accounting, the total VOCs emission of the project is 0.0863t/a, which is a small amount, and the emission concentration can meet the ambient air quality standard, with little impact on the surrounding atmospheric environment, and complies with the national emission standards.

Strictly control and manage the noise in accordance with the requirements of the Emission Standard for Industrial Enterprises Noise at Boundary (GB 12348-2008), and prevent and control the noise by measures such as installing vibration damping foundations for high-noise equipment and sound insulation of the factory building. During the Reporting Period, the noise detection outside the Company's factory boundary met the standards, which was lower than the Class 2 emission limit of 60dB(A) and did not cause any adverse impacts on the environment.

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations Innovation-Driven Human-Centric for a Green World Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Optimize Energy Management

Energy Management Strategy

The energy and resources used within the Company mainly include municipal water supply, purchased electricity, gasoline, paper, raw materials, etc. The Company strictly complies with relevant laws, regulations, and rules such as the Energy Conservation Law of the People's Republic of China and the Law of the People's Republic of China on the Prevention and Control of Water Pollution. It proactively promotes the efficient use of energy and resources.

Energy Management System

The Company formulates system procedures such as the Control Procedure for Energy and Resource Conservation, the Regulations on Domestic Electricity Management, and the Management Measures for the Air Conditioning System and implements refined management of the energy and resources used in operation links such as production workshops, offices, warehouses, and employee dormitories to improve overall energy utilization efficiency.

The Company delegates the energy management responsibilities and powers to the key energy-consuming and maintenance management departments, including the Product R&D Department, the Human Resources Department, and the Procurement Department. Each department implements energy management measures according to the Company's overall energy management objectives, organizes training on energy conservation for the employees in its department, and continuously improves the professional ability of the team in energy and resource management. By establishing an energy efficiency reward and punishment system, the Company encourages employees to put forward effective energy conservation and emission reduction suggestions, which promotes the achievement of the Company's energy management objectives.

Energy Management Measures

The Company proactively takes a series of energy management measures to control the energy consumption from the source, reduce the energy consumption, optimize the energy structure, and increase the proportion of green electricity to improve the Company's energy management level continuously.

During the Reporting Period Direct Energy Consumption Gasoline 4.36 tons Indirect Energy Consumption Purchased Electricity 8,069,948 kWh

==> picture [368 x 33] intentionally omitted <==

----- Start of picture text -----

Explanation of
Risk Type Description Frequency Potential Financial Management Measures
Impact
----- End of picture text -----

Risk Type	Description	Frequency	Explanation of Potential Financial Impact	Management Measures
Extreme weather events	Extreme storms or heavy precipitation may cause dam- age to energy-re- lated facilities, thus leading to the interruption of en- ergy supply.	Low	Result in power outages or inter- ruptions of energy supply, which may affect production.	◎Strengthen equipment maintenance and overhaul to ensure the effective oper- ation of equipment. ◎Formulate emergency procedures and implement training on emergency re- sponse plans.

==> picture [368 x 158] intentionally omitted <==

----- Start of picture text -----

Explanation of
Opportunity
Description Potential Financial Response Measures
Type
Impact
◎ Improve the production
Increase the devel- process to reduce energy con-
Energy By utilizing clean energy or inte- opment costs and sumption.
alternatives grating renewable energy. reduce the energy ◎ Self-invest in the develop-
expenses ment of energy-saving renova-
tion projects.
Adopting an intelligent energy
◎ Develop a digital energy
management system can effi-
Resource Reduce energy management system to unify
ciently improve energy manage-
Efficiency expenses the Company's energy con-
ment efficiency and standardize
sumption management.
energy utilization procedures.
----- End of picture text -----

==> picture [202 x 114] intentionally omitted <==

Digital Energy Management

The Company establishes a core indicator management platform based on a unified data standard and an energy consumption analysis indicator model repository. This platform enables real-time monitoring, collection, statistics, and analysis of energy consumption data, conducts comprehensive visual management, enhances data traceability, and improves energy control.

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations Innovation-Driven Human-Centric for a Green World Transformation Commitment

About Sustainable Development WCON Governance

2024 Environmental, Social, and Governance Report

Appendix

Energy-saving Project Renovation

==> picture [83 x 8] intentionally omitted <==

----- Start of picture text -----

Energy Storage Project
----- End of picture text -----

==> picture [182 x 153] intentionally omitted <==

==> picture [105 x 9] intentionally omitted <==

----- Start of picture text -----

Chilled Water Storage Project
----- End of picture text -----

==> picture [182 x 198] intentionally omitted <==

==> picture [32 x 22] intentionally omitted <==

----- Start of picture text -----

CASE
----- End of picture text -----

The Company invests in the construction of a user-side energy storage project. The energy storage battery unit of the project employs nano-silicon solid lead batteries, which have the advantages of high safety, long service life, and recyclability and can effectively solve the industry pain point that electrochemical energy storage batteries are prone to fire and explosion. After being put into use, the project can fully use the peak-valley price difference in industrial electricity tariffs between day and night. The system automatically charges during offpeak nighttime periods and discharges to meet demand during peak daytime hours, effectively addressing the enterprise's instantaneous power load demand for electricity during the day, reducing its instantaneous power consumption, and lowering its base electricity costs.

CASE

The Company's chilled water storage project was completed and put into operation in May 2024. It is expected to achieve annual peak shaving and valley filling of approximately 3.1 million kWh of electricity for air conditioning and production equipment, transferring peak and flat-rate electricity to off-peak periods. This reduces peak load on thermal power generation, equivalent to reducing annual CO2 emissions by 2.41 million kilograms.

Reduce CO2 emissions by 2.41 million kilograms annually.

Optimize the Energy Structure

==> picture [32 x 22] intentionally omitted <==

----- Start of picture text -----

CASE
----- End of picture text -----

==> picture [111 x 7] intentionally omitted <==

----- Start of picture text -----

Photovoltaic Power Generation
----- End of picture text -----

==> picture [182 x 153] intentionally omitted <==

Relying on the relatively abundant solar energy resources in Daning, Humen, the Company follows the consumption mode of “self-generation for self-use and surplus electricity fed into the grid” and has installed a distributed photovoltaic power generation system on the rooftops of the No. 1 factory building, No. 2 factory building and No. 3 dormitory building at its factory complex, covering a total area of about 4,000 square meters. After the project is implemented, it is expected to generate about 860,000 kWh of electricity annually, reducing carbon emissions by 857 tons.

Water Resource Utilization

The Company formulates the Regulations on Domestic Water Management and implements control measures for daily water consumption to avoid waste. The Company has improved the water recycling rate and reuse efficiency by implementing water-saving renovation projects to reduce water resource consumption.

During the Reporting Period

The total water consumption is

50,682 tons.

Water-Saving Retrofit Project

Renovation Effect

The kitchen purified water system generates 1.5T of wastewater every day. A water tank collects this wastewater for cleaning purposes, which can save 547.5T of water every year.

Recycling of Wastewater from the Kitchen Purified Water System

A 12T stainless steel water tank is built in the factory area to collect the air conditioning condensed water through the pipe network. An automatic water level control system regulates the operation of the pressure pump, transferring the collected water to the air conditioning cooling tower as makeup water. The daily collection amount of condensed water is about 21T, with annual cost savings of about RMB 31,500.

Condensed Water Recovery Technology of the Central Air Conditioning System with Chilled Water Storage

2024 Environmental, Social, and Governance Report

About the Report

Message from Chairman

About WCON

Sustainable Development Governance

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Appendix

==> picture [95 x 55] intentionally omitted <==

Innovation-Driven Transformation

==> picture [264 x 10] intentionally omitted <==

WCON upholds “honest operation, quality first, innovation-driven, and win-win cooperation.” Through continuous innovation and R&D efforts, the Company enhances product and service quality to meet customer needs and create greater customer value. Meanwhile, it also proactively builds a sustainable supply chain, collaborating with upstream and downstream partners to forge a new chapter of shared success and contribute high-quality productivity to China's connector industry.

Responded Topics

◎Innovation-driven

◎Product and Service Safety and Quality ◎Supply Chain Safety

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and

Appendix

Governance Report

Co-accelerate Industrial Ecosystems

The Company has always regarded technology research and development as its core competitiveness. It has continuously stepped up efforts in core technology research, continuously promoted the reform and innovation of the research and development system, strengthened the cultivation of scientific and technological talents, stimulated the driving force for innovation, and used the power of value creation to boost the Company's high-quality development.

R&D Innovation Governance

The Company has established an R&D center as the core department for technological innovation, and it is engaged in developing products such as electronic connectors. Through continuously optimizing and upgrading the R&D organizational structure, the Company enhances experience accumulation and knowledge transfer among design teams while strengthening the dedicated focus on product design. The Company has formulated regulations, including the Measure for Management of Product Design and Development and the Project Management Control Procedure, to improve the rigor and standardization of each process in the R&D projects, ensuring the smooth implementation of R&D projects and reinforcing the Company's sustained independent R&D capabilities.

==> picture [368 x 235] intentionally omitted <==

----- Start of picture text -----

R&D Center
Product R&D Department Product Engineering Department
Precision Industrial Automotive
Integrated Product
Connector Connector Product
Product Engineering
Development Development Development
Section Section
Section Section Section
Principal Functions: Principal Functions: Principal Functions: Principal Functions: Principal
Development of Development of Development of New Integrated Product Functions: Product
Precision Connectors Industrial Connectors Energy Products Support Technical Support
----- End of picture text -----

After years of development, the Company has gathered a group of core technicians with rich industry experience who have good professional qualities and technical strength in product design, mold development, connector manufacturing process development, and other technologies. The Company actively transforms the talent advantage into the driving force for high-quality development. To fully mobilize the enthusiasm of employees for technological innovation, the Company has formulated such incentive systems as the Procedure of Employee Incentive and Authorization Control and the Measures for Patent & Copyright Management to encourage employees to give full play to their creative and innovative abilities, engage in invention activities, and contribute to technical standard documentation, further stimulating their autonomous innovation potential.

==> picture [368 x 89] intentionally omitted <==

----- Start of picture text -----

2022 2023 2024
R&D Investment (yuan) 58,904,472.15 72,336,311.24 64,355,742.49
Number of R&D Personnel (persons) 224 267 210
Proportion of R&D personnel 18.62% 19.32% 13.60%
----- End of picture text -----

==> picture [368 x 154] intentionally omitted <==

----- Start of picture text -----

R&D Personnel by Gender R&D Personnel by Age
(in persons) (in persons)
Male 202 / 96.20% Under 30 (exclusive) years old 62 / 29.52%
Female 8 / 3.80% 30 (inclusive) to 40 (exclusive) years old 107 / 50.95%
Above 40 years old (inclusive) 41 / 19.52%
----- End of picture text -----

R&D Empowerment Training

During the reporting period, the company's integrated product section organized 16 R&D empowerment training programs for product engineers, packaging engineers, and assistant engineers, steadily improving the comprehensive quality and professional skills of R&D personnel.

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

R&D Innovation Strategy

==> picture [758 x 437] intentionally omitted <==

----- Start of picture text -----

Risk Identification List
Explanation of Potential
Category Description Time Range Response Measures
Financial Impact
TechnologyRisks Technology Outflow ◎neer or adopt our technologies, eventually emerging as direct rivals.Competitors in the same industry may reverse-engi- Medium and long-term Competitors may quickly launch similar products, eat-ing into market share and causing a drop in revenue. ◎◎nesses.Sign confidentiality agreements with employees;Maintain customer relationships and expand other customers' busi-
◎ The Company's connector products are primarily tar-
geted at industrial control, automotive, and new energy The product or service may ◎ Proactively track market trends, make forward-looking assessments of
Uncertainty of Market sectors, where the operating environments are inherently Medium and not be widely accepted by industry changes, swiftly respond to and precisely capture market trends,
Demand complex and market demands are diverse. This results long-term the market, leading to a de- sustainably increase R&D investment, and encourage R&D innovation and
in an operational model characterized by “multi-variety, cline in revenue. the commercialization of outcomes.
small-batch, and customization.”
Market
Risks
◎ Market competition may intensify with the changes ◎ The Company maintains a competitive market position through multiple
strategies, including continuously increasing R&D investments, enhancing
Market in the domestic and foreign economic and political en- Medium and Reduction in market share product innovation capabilities, expanding product portfolio diversity, op-
Competition vironments. If the Company fails to make continuous long-term and decline in revenue. timizing production processes, efficiently operating the quality manage-
improvement and innovation in terms of technology and
ment system to ensure product quality and service responsiveness, and
products, its market competitiveness may decline
intensifying market expansion efforts.
◎ The Company needs to pay attention to changes in
domestic and foreign regulations and industry standards Short- to ◎ The Company strengthens the identification, collection, and regular
Policy and Compliance and differences in local labor laws where new factories medium- Increase in operating costs update of domestic and foreign regulations and industry standards, with
Legal Risks Risks are located to ensure that its R&D and business activities term and decrease in revenues. key provisions incorporated into training programs or institutionalized in
comply with relevant laws and regulations. Otherwise, it company policies.
may face legal risks such as fines and lawsuits.
Opportunity Identification List
Explanation of Potential
Category Description Time Range Response Measures
Financial Impact
◎ With the continuous iterative development in various
emerging fields, including emerging demands in down-
stream markets such as communication equipment,
cloud computing, automotive electronics, industrial con- ◎ The Company must continually innovate and enhance product perfor-
trol, smart home, and AI applications, the connectors, as mance to meet market demands for high-quality, high-reliability, high-in-
Medium and
Market opportunities key essential components, are facing substantial market Augmented operating income. tegration connectors while capitalizing on market opportunities to capture
long-term
opportunities. market share.
◎ The photovoltaic industry will enter a stage of large- ◎ Select high-quality customers and cultivate potential customers.
scale, high-speed, and high-quality development, driving
the continuous technological progress of new-energy
connectors and increasing market demand.
----- End of picture text -----

About the Message from Report Chairman

Strengthen Compliance Low-Carbon Operations Innovation-Driven Human-Centric to Solidify Governance for a Green World Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

R&D Risk Management

The Company has formulated the Control Procedure for Design Potential Failure Mode and Effects Analysis. The DFMEA management method systematically analyzes each product component to proactively identify and evaluate potential failures and their effects during the design planning phase. Based on prioritized analysis results, targeted measures are taken to avoid or mitigate these risks of potential failure. The entire process is documented, continuously updated, and improved to provide empirical references for subsequent designs.

R&D Goals and Achievements

The Company adheres to independent R&D, benchmarks against leading international connector enterprises, and aims at connector miniaturization, integration, and intelligence development trends. Innovations in connectors are pursued in complex structure design, electrical performance simulation, precision mold design, and new material applications to consolidate its development pattern of “industrial control as the core pillar, automotive and new energy as twin wings,” steadfastly pursuing the path of domestic substitution.

The Company formulates an annual development plan based on overall business performance and customer needs to accelerate the commercialization of R&D achievements.

==> picture [365 x 25] intentionally omitted <==

----- Start of picture text -----

Metrics Goals for 2024 Achievements in 2024
----- End of picture text -----

◎50 R&D tasks were
completed
◎61 new product development
projects were initiated, and 58 pro-
jects were completed and entered
mass production.
R&D Tasks
◎2 CECA group stand-
ards
◎1 corporate technical
standard
◎2 national industry group stand-
ards are formulated: the WD and
BSC series.
◎1 corporate technical standard is
completed: Te Technical Standard
for Non-Magnetic Pin Header has
been fnalized.
Standard
Development
◎3 invention patents
◎20 utility model patents
◎2 design patents
◎Te Company applied for 30
patent applications, including 3
inventions and 27 utility model
patents.
Intellectual
Property

The Company continuously increases the intensity of R&D investment and invests in professional 3D design software, simulation testing systems, and high-end electrical and material testing equipment in the technical R&D stage, which effectively shortens the product R&D cycle, reduces the material consumption in the R&D stage of traditional connector products by leveraging the considerable data computing power for simulation testing, and effectively ensures the rapid delivery of new products. During the reporting period, the company developed 70 new products, further enriching its product portfolio to meet the customized needs of different customers. The new connector products have reached the technical level of similar imported products regarding service life, product reliability, and electromagnetic interference resistance.

3D Design Software Simulation Testing Systems High-end Electrical and Material Testing Equipment

Effectively shorten the product R&D cycle, reduce the material consumption in the R&D stage of traditional connector products, and effectively ensure the rapid delivery of new products.

==> picture [32 x 30] intentionally omitted <==

----- Start of picture text -----

CASE
----- End of picture text -----

FFC Connector CASE Development Project

0.5 mm Floating BTB Connector Development Project

The Company's 1.0 mm-pitch FFC connector adopts a flat design. The product weighs no more than 8 g, effectively reducing the volume and weight, making it more suitable for electronic and mechanical equipment with strict weight requirements. Meanwhile, it forms a flexible connection solution with FFC/FPC, achieving a more compact product design. It can be widely applied to fields such as automotive driving assistance information entertainment systems and industrial automation systems to meet the industry's demand for components that can quickly adapt to complex shapes and environments.

During practical applications of connectors, long dimension chains in assembly mechanisms often lead to installation deviations and misalignment of connection interfaces. Additionally, scenarios such as high transmission speeds and mechanical vibrations in real-world use can cause distortion of signal transmission. The Company has developed a 0.5 mm pitch floating BTB connector with up to 120 contacts, featuring X, Y, and Z three-axis floating capabilities. This design effectively accommodates installation deviations and ensures stable signal transmission. Its high precision and contact reliability meet the stringent requirements of automotive-grade environments, making it widely applicable in automotive ADAS, ECU, infotainment systems, and industrial PLCs.

==> picture [136 x 92] intentionally omitted <==

==> picture [137 x 86] intentionally omitted <==

Message from Chairman

Strengthen Compliance Low-Carbon Operations Innovation-Driven Human-Centric to Solidify Governance for a Green World Transformation Commitment

About Sustainable Development WCON Governance

About the Report

2024 Environmental, Social, and Governance Report

Appendix

Strengthen Industry Exchanges

The Company actively utilizes its strengths, devotes itself to research in specialized fields, actively participates in industry and standardization development, and takes the initiative to engage in industry exchanges and cooperation. Doing so strengthens communication with industry associations and jointly promotes the industry's progress. By the end of the Reporting Period, the Company has participated in 9 industry-related organizations and associations, including the Electrical Connectors Branch of China Electronic Components Association, the Guangdong Association for Quality, the Shenzhen Robot Special Wire and Cable Industry Association, and the Shenzhen Connectors Industry Association.

==> picture [369 x 91] intentionally omitted <==

----- Start of picture text -----

Type of Standard Names of Standards Led/Participated in Development and Revision
◎ Diecasting zinc alloys (GB/T 13818-2024)
National Standard
◎ Die-casting aluminum alloys (GB/T 15115 - 2024)
◎ 2.00 mm Pitch SIC High-Performance Connector
Group Standards ◎ 1.27 mm Pitch Small Computer System Interface Connector
◎ Ejector header lock series connector
----- End of picture text -----

During the Reporting Period, the Company actively participated in industry activities such as the Smart Production Solutions and ITES Exhibition, demonstrating the Company's latest technologies and achievements in connectors. Through in-depth communication with on-site guests and industry experts, the Company continuously enhanced the market application capabilities of its products, strengthened cooperative relationships in the industry, and jointly promoted the development of the connector sector.

==> picture [114 x 76] intentionally omitted <==

OE Auto Smart New Energy Vehicles Cost Reduction and Efficiency Enhancement Technology Exhibition

Smart Production Solutions Guangzhou

Shenzhen ITES Exhibition

==> picture [114 x 76] intentionally omitted <==

Electronica China Shanghai International New Energy Vehicle Exhibition

Electronica Munich

Protection of Intellectual Property Rights

The Company attaches great importance to independent innovation and the protection of intellectual property rights, continuously enhancing its capabilities in creating, utilizing, and managing intellectual property. To strengthen the enterprise's intellectual property rights management, the Company strictly complies with relevant laws and regulations such as the Patent Law of the People's Republic of China and the Code for Management of Intellectual Property Rights of Enterprises. In compliance with the requirements of the standard GB/T 29490-2023, the Company has established an intellectual property management system and formulated a series of institutional and procedural documents, including the Intellectual Property Management Manual, Procedure for Control of Intellectual Property Acquisition, and Procedure for Management and Control of Intellectual Property Risk, which ensured the scientific and standardized implementation of IP management and safeguarded the Company's legitimate rights and interests.

The Company has developed an Intellectual Property Training Plan, conducting targeted IP training sessions with evaluations for different employee groups to strengthen IP compliance awareness and risk prevention. This ensures IP protection becomes embedded into the daily operations of every employee, safeguarding the Company's long-term development. The Company also enters into Non-Disclosure Agreements, Non-Compete Agreements, and Intellectual Property Assignment Agreements with employees to ensure standardized management of trade secrets and technical secrets in business operations and clearly define intellectual property ownership, rights, and obligation clauses. A pre-classification review is conducted before formal secret classification, followed by post-classification monitoring to avoid losses from potential disclosures.

The Company obtained the certification of GB/T 29490-2013 intellectual property management system. There were no intellectual property disputes in 2024.

During the Reporting Period

As of the end of the reporting period, the

==> picture [97 x 138] intentionally omitted <==

Company had amassed 201 patented authorizations, comprising 21 granted invention patents, 168 utility model patents, 11 design patents, and 1 overseas patent. In addition, the Company has obtained 2 software copyrights.

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Human-Centric Commitment

Sustainable Development Governance

Innovation-Driven Transformation

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Premium Brand from Quality

Since its establishment, the Company has consistently upheld its philosophy of “Building Brand Reputation Through Quality, Gaining Market Trust Through Service, and Driving Growth Through Professionalism.” It strictly adheres to laws and regulations, such as the Law of the People's Republic of China on Product Quality, continuously innovates with relentless pursuit of excellence, and provides customers with professional and efficient solutions. Moreover, the Company implements a quality policy of “Quality First, Continuous Improvement, and Customer Satisfaction.” The company did not experience significant liability, quality, or safety issues during the reporting period.

Quality Management System

Quality Management Strategy

The Company has established a high-standard quality supervision system, integrating quality management into the entire chain process from product design and manufacturing to testing. The UL Witness Test Data Program recognizes the Company's laboratory. It is equipped with various advanced testing equipment, including film thickness testers, hardness testers, high-temperature aging testers, salt spray testers, etc., which can fully ensure that the product performance and quality meet the relevant standards.

The Company's Quality Center has a Quality Management Department and a Quality Assurance Department, responsible for implementing the requirements of the Company's major quality systems. These departments ensure strict compliance with system guidelines, review and evaluate actual operational performance and quality objectives, and continuously optimize system documentation and quality improvements. By the end of the reporting period, the company had obtained certifications for the IATF 16949:2016 quality management system and ISO 9001:2015 quality management system.

==> picture [173 x 114] intentionally omitted <==

----- Start of picture text -----

Quality Center
Quality
Representatives
Quality Management Quality Assurance
Department Department
----- End of picture text -----

==> picture [84 x 114] intentionally omitted <==

==> picture [85 x 114] intentionally omitted <==

==> picture [148 x 6] intentionally omitted <==

----- Start of picture text -----

IATF 16949:2016 ISO 9001:2015
----- End of picture text -----

==> picture [182 x 67] intentionally omitted <==

During the Reporting Period

23 quality training sessions were carried out, with 119 participants in attendance.

Quality Training

==> picture [368 x 347] intentionally omitted <==

----- Start of picture text -----

Risk Trigger Explanation of Potential
Risk Analysis Response Measures
Type Probability Financial Impact
◎ Updates to product-related ◎ The Company regularly collects
domestic and international laws,
laws and regulations, notably
stricter restrictions on hazard- ◎ Increase in regulations, standards, and industry
codes, promptly revises its inter-
Legal ous substance limits, require compliance costs or
Low nal hazardous substance control
risks the Company to promptly potential decline in
standards, and strictly implements
adapt to and comply with profits
these updates. Additionally, it signs
these changes to avoid compli-
the declarations on the non-use of
ance issues.
hazardous substances with suppliers.
◎ The product quality may be ◎ Product quality ◎ Formulate procedure doc-
affected by supplier qualifica- issues and delayed uments such as the Supplier
delivery may damage Control Procedure, Sample Control
Supplier tions, material performance,
Low the Company's repu- Procedure, and packaging specifi-
Risks supplier transportation routes,
tation, affect customer cations;
and changes in packaging and trust, and reduce sales ◎ Sign quality and confidentiality
transportation.
revenue. agreements with suppliers.
◎ The delivered products ◎ Formulate quality control sys-
tems and management measures
do not meet the customer’s
to strengthen quality control in the
requirements;◎ Undetected bulk raw mate- ◎ The costs of han- production process;
dling complaints and ◎ Strictly enforce the incoming
rial defects lead to defective
compensation lead and outgoing quality inspections of
products leaking to customers;
to increased costs; finished products;
Operational Average defective products are not ◎ Product quality ◎ Formulate the Procedure for
Risks timely labeled and controlled;
◎ Inadequate labeling of problems may lead Control of Corrective and Preventive
to customer order Actions and the Continuous Improve-
production materials resulted
cancellations and re- ment Control Procedure to drive
in mixing and misplacement of
duced sales revenue. ongoing improvement;
conforming and non-conform- ◎ Standardize the customer com-
ing products, compromising
plaint response system to ensure
product quality.
prompt resolution of customer needs.
----- End of picture text -----

About the Message from About Sustainable Development Report Chairman WCON Governance

Strengthen Compliance to Solidify Governance

Low-Carbon Operations Innovation-Driven Human-Centric for a Green World Transformation Commitment

2024 Environmental, Social, and Governance Report

Appendix

Quality Metrics and Targets

The Company formulates the Objectives, Targets, and Implementation Management Procedures to establish, monitor, and continuously improve Key Performance Indicators (KPIs) for processes related to the quality management system. This ensures process effectiveness and product quality compliance with requirements, fulfills customer expectations, and achieves organizational quality objectives. Annually, the Company sets annual objectives and targets systematically cascaded down to specific departments through a hierarchical decomposition mechanism. Adjustments are implemented promptly based on target achievement status.

==> picture [368 x 100] intentionally omitted <==

----- Start of picture text -----

Quality Pursue zero defects and make WCON a byword for high quality in the connec-
Objectives tor industry.
HSF
HSF customer complaint rate — zero.
Objectives
----- End of picture text -----

During the Reporting Period

The company's product qualification rate is 99.66%.

==> picture [367 x 180] intentionally omitted <==

==> picture [386 x 470] intentionally omitted <==

----- Start of picture text -----

2024 Target 2024 Actual
Performance Indicators
Values Achievement Values
C3-2 Stamping Process Inspection
≥ 98 99.20
Pass Rate (%)
C3-3 Molding Process Inspection
≥ 98.5 99.83
Pass Rate (%)
C3-5 Assembly Process Inspection
≥ 98.5 99.83
Pass Rate (%)
Cost of Poor Quality (COPQ)
≤ 0.5 0.115
Loss Rate (%)
Number of Continuous Improvement
5 5
Projects (Count)
Document Distribution Accuracy Rate (%) ≥ 99 100
Incoming Material Inspection Pass Rate (%) ≥ 97 98.49
Incoming Batch Missing Quantity (Pieces) ≤ 3 1.75
Assembly Batch Non-conforming
≤ 3 0.25
Quantity (Pieces)
Customer Return PPM 1500 761.57
Customer Acceptance Pass Rate (%) ≥ 99.6 99.67
HSF Incoming Inspection Pass Rate (%) ≥ 100 100
HSF Monthly Product Complaint Rate (%) 0 0
----- End of picture text -----

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Quality Management Measures

Whole-Life-Cycle Management of Products

To enhance product quality control, the Company has implemented an integrated full-lifecycle quality management system that comprehensively governs every stage, from incoming material inspection, manufacturing processes, and finished product inspection to post-sales service tracking. This end-to-end framework ensures precise quality monitoring at each phase, enabling systematic management and continuous product quality optimization. The system guarantees consistent product delivery that meets regulatory standards and customer expectations.

Incoming Material Inspection

Production Process

Finished Product Inspection

The Incoming Material Inspection The In-Process Inspection Control Procedure The Finished Product InspecControl Procedure is established to has been established to standardize critical tion Control Procedure has standardize the inspection process control protocols, including sample reception, been established to stringently for externally procured or outsourced first-article inspection, and last-article samstandardize incoming inspecproduction materials. This protocol enpling verification. This framework ensures tion (pre-warehousing verificacompasses supplier qualification verifithat all production stages operate under tion) and outgoing inspection cation, statistical sampling inspection, controlled conditions, maintaining consist(pre-shipment validation) material identification, and segregated ent quality stability. Additionally, dedicated processes based on product storage protocols. Materials passing incontrol procedure documents for stamping, categories, ensuring the outgospection are authorized for warehouse injection molding, and copper wire production ing products comply with the entry, while non-conforming items have been developed to define standardized requirements. are processed in accordance with the workflows across all manufacturing workNon-conforming Product Control Proshops, ensuring product quality through doccedure. umented process compliance.

Dispose Non-conforming Products

To ensure the control and handling of non-conforming products and suspected items throughout the entire process of raw material input, production, product output, and service delivery, and to prevent the mixing of defective products with qualified ones that could enter subsequent processes or shipments, the Company has established procedural documents such as the Non-conforming Product Control Procedure and the Defective Product & ROHS Disassembly Management Specification. These documents standardize the Company's defective product disassembly and processing workflow and clarify the criteria for non-conforming products and disposal requirements, including rework processes.

Non-conformance Category

==> picture [368 x 75] intentionally omitted <==

----- Start of picture text -----

IPQC In-process Inspection Non-
Incoming Inspection OQC Sampling Inspection Customer Return
Non-conformance conformance / FQC Sampling Inspection Non-conformance Non-conformance
Non-conformance
Stock Re-inspection Engineering Change Post-Test Verification RoHS Non-
Non-conformance Non-conformance Non-conformance conformance
----- End of picture text -----

Product Recall Management

The Company places high importance on product and service quality, establishing procedures such as the Product Recall Control Procedure and Corrective & Preventive Actions Control Procedure to standardize the supervision and management of its product portfolio. The Vice President convenes a task force to conduct recall evaluations for products with serious environmental non-compliance, quality defects, or potential safety hazards. If a recall is necessary, the Company promptly notifies relevant stakeholders to implement product retrieval, ensuring swift and complete control over affected items to prevent or minimize corporate losses. No products must be withheld or recalled during the reporting period due to health and safety concerns.

==> picture [326 x 315] intentionally omitted <==

----- Start of picture text -----

Recall Procedure
1 Triggering Circumstances
2 Product Identification & Evaluation
3 Traceability & Recall Planning
4 Information Disclosure
5 Product Retrieval
6 Disposal/Remediation
Documentation
7
Corrective Actions
8
----- End of picture text -----

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Optimization of Customer Service

The Company adheres to a customer-centric philosophy, committed to delivering high-quality products and providing professional services to earn customer trust. Through its established Sales Management Control Procedure, the Company implements standardized controls across the entire sales cycle – encompassing pre-sales, in-sales, and post-sales processes. A coordinated effort involving the Marketing Center, Production Planning Department, R&D Center, Quality Assurance Division, and Project Management Office forms a customer demand-driven team structure. This cross-departmental collaboration ensures a comprehensive understanding of client requirements and market dynamics, enabling efficient order fulfillment and continuous improvement in customer satisfaction.

Customer Complaint Handling

Customer Satisfaction Survey

The Company has established the Customer Complaint Handling Control Procedure to standardize identifying and resolving client grievances, ensuring prompt responses and effective solutions to enhance customer satisfaction. Complaints are systematically addressed through an 8D methodology to achieve root cause resolution and prevent recurrence

==> picture [368 x 236] intentionally omitted <==

----- Start of picture text -----

8D Customer Complaint Handling Process
4 Root Cause Analysis
Initial Problem Permanent
0 Understanding Potential Cause 5 Corrective Actions
Identification
Most Likely
Cause Selection Recurrence
1 Team Formation 6
Prevention
NO
Root Cause
Problem Verification Effectiveness
2 7
Description Verification
YES
Root Cause
Interim Containment Confirmation
3 8 Lessons Learned
Actions
----- End of picture text -----

During the Reporting Period

The customer complaint resolution rate was 100%. Carry out 3 special training sessions on customer complaint response.

The Company places high importance on customer feedback and suggestions. It has established the Customer Satisfaction Management Procedures to systematically collect and understand customer satisfaction levels regarding services, products, delivery timelines, quality, and systems. This is achieved through multiple channels, including monthly proactive monitoring of customer satisfaction, annual customer satisfaction surveys, and, for automotive clients specifically, monthly collection of customer scorecards or monthly performance appraisal data by business personnel. All collected data undergoes timely compiling and analysis to drive continuous improvements in our quality management system's performance, with the ultimate goal of consistently exceeding customer expectations.

During the Reporting Period

The Company's customer satisfaction score was 95.84.

==> picture [45 x 160] intentionally omitted <==

==> picture [103 x 91] intentionally omitted <==

==> picture [100 x 97] intentionally omitted <==

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Honors And Recognitions

==> picture [30 x 101] intentionally omitted <==

“Excellent Partner Award” in 2024 from Enpower

==> picture [135 x 90] intentionally omitted <==

2024 China New Energy Vehicle Technology and Supply Chain Enterprise Online Selection -“Top 10 Industry Leader Award”

==> picture [120 x 101] intentionally omitted <==

“Excellent Supplier” in 2024 from Bronze Technologies

==> picture [70 x 101] intentionally omitted <==

==> picture [62 x 101] intentionally omitted <==

“Excellent Supplier” in 2023 from RSPower Tech “Certified Quality Supplier” in 2023 from OE Automotive

==> picture [82 x 101] intentionally omitted <==

“Excellent Quality Award” in 2021 from FinDreams Powertrain

==> picture [727 x 117] intentionally omitted <==

----- Start of picture text -----

“Excellent Supplier” in 2020 from Evoc
“Technological Innovation Award” in 2022 from Midea “Excellent Partner Award” in 2022 from Enpower “Excellent Supplier” in 2021 from Cal-Boz Intelligent Technology
----- End of picture text -----

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Reinvent Sourcing Governance

Supply Chain Security Governance

The Company strictly complies with the Law of the People's Republic of China on Tendering and Bidding and other relevant laws and regulations, having established internal procurement management systems, including the Supplier Management Control Procedures and Procurement Control Procedures to standardize purchasing processes and supplier governance. The Company implements rigorous selection criteria, qualification assessment, evaluation, and performance reviews for suppliers providing production materials, equipment, tooling components, and related services. This ensures the engagement of competent suppliers and service providers capable of delivering qualified raw materials, precision components, and superior services. These measures enhance the Company's supplier management capabilities, maintain improved collaboration with suppliers, and guarantee compliance with stipulated quality requirements throughout the supply chain.

Procurement Department

◎Develop and evaluate new suppliers
◎Organize relevant departments to recommend and review potential suppliers
◎Approve qualified suppliers, document registration, and management
◎Conducted comprehensive evaluations of existing suppliers, including performance reviews for guidance and support
◎Negotiate procurement orders, delivery contracts, and related agreements with suppliers

R&D Center

Participate in reviewing and auditing newly developed suppliers to deter-
mine qualified suppliers
Confirm, evaluate, trial-assemble, and approve production parts for supplier
samples and product drawing compliance

==> picture [66 x 87] intentionally omitted <==

Quality Center

General Manager

Responsible for supplier quality assessment, judgment, and formulation of
quality standards
◎Approve final decisions on qualified supplier certification
Make critical decisions on significant issues arising during the procurement process
Verify incoming material quality from suppliers
Participate in initial evaluations of new supplier development and prelimi-
nary approval of qualified suppliers
Assess and guide suppliers in product control, quality management capabili-
ties, and inspection equipment competency

About the Message from About Sustainable Development Report Chairman WCON Governance

Strengthen Compliance Low-Carbon Operations to Solidify Governance for a Green World

Innovation-Driven Human-Centric Transformation Commitment

2024 Environmental, Social, and Governance Report

Appendix

Supply Chain Security Strategy

==> picture [368 x 442] intentionally omitted <==

----- Start of picture text -----

Risk Impact Potential
Risk Description Response Measures
Type Duration Financial Impact
Issues with suppliers'
production capacity,
quality performance,
Supplier or delivery schedules
higher
risks may result in pro-
duction interruptions ◎ Implement rigorous supplier
or product quality qualification screening and perfor-
defects. Delayed delivery mance evaluation;
triggers produc- ◎ Enhance incoming/inbound
tion interrup- quality inspection procedures;
Problems in trans- tions, leading to
◎ Cultivate high-performance sup-
portation, ware- economic losses pliers and establish relatively stable
Logistics housing, and other and revenue
Risks links may lead to higher reduction due procurement channels;
product damage, to client order ◎ Establish a multi-level supplier
delayed delivery, etc. cancellations, in- system and activate emergency
curring additional plans in case of emergencies;
procurement ◎ Closely monitor production
costs. progress and proactively discuss
revised delivery timelines with
External factors such affected clients.
Political
as political instability
and
and economic crises higher
Economic
may lead to supply
Risks
chain disruptions.
◎ Enhance business negotiation
Price volatility
stems from com- capabilities;
mercial negotia- ◎ Conduct thorough market
tions, geographic Price rises research;
Price
Risks pricing discrepan- low increase procure- ◎ Strengthen the timing of procure-
cies, emerging tech- ment costs. ment;
nologies/materials, ◎ “Conduct multi-vendor compar-
and environmental
ative analysis” and “implement the
compliance
inquiry and quotation system.”
----- End of picture text -----

Supply Chain Risk Management

The Company implements a comprehensive supply chain risk management system that enables precise identification, scientific evaluation, and real-time monitoring of risks across critical phases, including supplier selection, raw material procurement, and production processes. Risk-tiered mitigation strategies are formulated with operational contingency plans, supported by periodic risk assessments and scenario simulations to enhance organizational resilience against supply chain disruptions systematically.

Management Principles Prevention First Rapid Response Continual Improvement Establish tiered mechaOnce a supply chain Regularly evaluate and nisms covering supplier security problem occurs, optimize the supply chain performance evaluation, quickly activate the security management real-time logistics moniemergency plan, take adsystem to continuously toring, and cybersecurity equate measures to solve improve the supply chain compliance audits, enathe problem, and reduce security level. bling proactive identifilosses. cation and mitigation of supply chain risks.

Supply Chain Emergency Drills

The Company has developed an Emergency Drill Plan for Externally Sourced Processes to address significant supply chain risks. This plan outlines targeted emergency measures and establishes a Procurement-Supply Emergency Response Team tasked with coordinating responses to sudden material shortages or considerable quality issues. Regular drills are conducted under the plan to strengthen departmental preparedness, ensuring teams can effectively mitigate disruptions. These efforts prevent material shortages, delays in customer deliveries, and unexpected losses caused by inadequate or defective supplies. By doing so, the Company guarantees that materials are procured timely, efficiently, and to the required quality and quantity standards.

Emergency Drill for External Supply Interruption

CASE

On March 12, 2024, the Company’s Procurement Department conducted an emergency drill simulating a critical supply chain scenario: abnormal terminal electroplating in the T2150T-S4W02 product and a sudden supplier failure threatening customer delivery deadlines and urgent production line requirements. The Procurement Department swiftly collaborated across departments—including business, production, planning, and the emergency response team—to coordinate resources and timelines. To resolve the crisis, the department activated vetted backup suppliers capable of meeting strict quality and delivery standards, ensuring seamless material substitution. The drill concluded with successfully executing the contingency plan, averting potential delays, and safeguarding production continuity.

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Human-Centric Commitment

Sustainable Development Governance

Innovation-Driven Transformation

About the

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Report

Supplier Management

The Company continuously enhances its supplier management framework by implementing rigorous oversight of supplier entry, performance assessment, and supplier audit. This structured approach ensures consistent quality standards and strengthens supply chain reliability while mitigating operational risks.

Supplier Entry

For materials used in automotive products, the Company prefers to use suppliers certified by IATF16949 to ensure that the materials, processes, and services related to the purchased automotive products comply with the current laws and regulations in the receiving country, the country of dispatch, and the country of destination determined by the customer. All direct material suppliers are required to sign the following agreements with the Company: Supplier Quality Assurance Agreement, Supplier Material PCN Agreement, and Supplier Environmental Compliance Agreement.

==> picture [551 x 114] intentionally omitted <==

----- Start of picture text -----

1 2 3 4 5
Identify potential Preliminarily identify Collect supplier Preliminarily screen Supplier
suppliers the suppliers data suppliers evaluation
Based on material supply Determine the suppliers Complete the Supplier Suppliers with strong compre- Supply chain reliability,
status, supplier evaluation meet the qualifications Capital Information Form hensive capabilities, cooperation technical expertise, and
outcomes, and supplier commitment, and alignment quality assurance systems
development plans with the Company’s standards
----- End of picture text -----

Supplier Assessment

The Company operates a tiered supplier evaluation framework, conducting periodic performance reviews across supplier categories. Assessments focus on four core performance metrics: quality compliance, quality performance, delivery reliability, and collaborative engagement. Based on cumulative evaluation scores, suppliers are classified into four tiers: Grade A, Grade B, Grade C, and Grade D. The Procurement Department aligns sourcing strategies with these ratings.

==> picture [259 x 24] intentionally omitted <==

----- Start of picture text -----

Grade A Grade B
----- End of picture text -----

==> picture [68 x 12] intentionally omitted <==

----- Start of picture text -----

90-100 points
----- End of picture text -----

==> picture [97 x 125] intentionally omitted <==

----- Start of picture text -----

80-89 points
Maintain the current order
quantity, and the supplier
should continue to im-
prove.
----- End of picture text -----

==> picture [96 x 107] intentionally omitted <==

----- Start of picture text -----

Grant prioritized procure-
ment status with discretion-
ary increases in purchase
orders and manufacturing
allocations.
----- End of picture text -----

==> picture [143 x 24] intentionally omitted <==

----- Start of picture text -----

Grade C
----- End of picture text -----

70-79 points Appropriately reduce the procurement quantity or suspend procurement. Issue a warning to the supplier for some relatively serious problems and notify the supplier to rectify the deficiencies, follow up on the rectification results, and at the same time, strengthen the inspection of the materials from this supplier.

A supplier rated as Grade C for over three consecutive months will be downgraded to Grade D.

==> picture [181 x 44] intentionally omitted <==

----- Start of picture text -----

Grade D
60-69 points
----- End of picture text -----

The Procurement Department notifies the supplier to come to attend on-site review meetings or receive technical guidance at its facility. If a supplier is rated as Grade D twice in a row, the Procurement Department will issue an official corrective action notice (CAR); if the supplier fails to improve within the rectification period, the supplier will be disqualified. If a supplier is rated as Grade D for three consecutive months, its qualification as an approved supplier will be canceled, and its business will be terminated.

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the Report

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Supplier Audit

The Company establishes an audit team to audit the leading qualified suppliers annually.

Supplier Audit

During the Reporting Period

the Company completed auditing 34 suppliers, and the results showed all were qualified.

39 qualified suppliers with quality management system certification

Category A suppliers (key raw materials) and Annual mandatory on-site audits Category B suppliers (auxiliary materials)

Generally qualified suppliers Unscheduled audits or corrective guidance

Major quality nonconformities, C/D grade ratings, or critical delivery delays/service On-site evaluations disruptions impacting production

15 qualified suppliers with environmental management system certification

2 qualified suppliers with occupational health and safety management system certification 0 potential qualified suppliers rejected due to non-compliance 0 qualified suppliers whose cooperation was suspended due to non-compliance

Empower with Digitalization

Supplier Evaluation

Qualified Continue to purchase or increase the procurement quantity and give the supplier priority in new projects.

Audit score Notify the supplier to make improvements within one month. After providing materials for improvement, the supplier can apply for re-review. If the supplier rate ＜ 80% is still unqualified after the re-review, its qualification will be canceled and not or 85% eligible for review within one year.

The supplier can be given a rectification period of four months. After passing
Unqualified the re-review four months later, it can be included in the list of qualified suppliers again. Otherwise, it will be listed in the “Supplier Elimination Plan.”

Suppliers listed in the “Supplier Elimination Plan” or those without business transactions for two years

Go through the entire new supplier approval process to restart their business.

The Company places high importance on supply chain innovation and application initiatives, actively responding to national policy calls. Through digital transformation in the supply chain, it empowers the enterprise and its partners to achieve compliance transparency, cost reduction with efficiency improvement, and high-quality, sustainable growth. The Company uses the Supplier Relationship Management(SRM)system as an internal supplier management platform. The system integrates various functions such as the procurement process, supplier evaluation, and cooperation and collaboration, and effectively manages the entire life cycle of suppliers, from screening and admission to transaction cooperation, performance evaluation, and subsequent relationship maintenance. It standardizes and automates the procurement process, realizes information sharing and collaborative work between the enterprise and suppliers, such as sharing production plans, inventory levels, and other information, and enhances the trust and transparency of cooperation; at the same time, it can monitor supplier performance and risks in real-time, such as delivery delays, quality problems, etc., issue early warnings and take measures to reduce the risk of supply interruption.

About the Message from Report Chairman

Strengthen Compliance Low-Carbon Operations to Solidify Governance for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Build Sustainable Supply Chains

Supplier ESG management is critical for companies to achieve sustainable development goals. To effectively implement ESG practices across supply chains, enterprises adopt a systematic approach encompassing the following measures: formulating clear ESG policies and standards, selecting ESG-compliant suppliers, establishing a regular communication mechanism, providing training and support, setting clear ESG improvement goals and indicators, conducting supervision and audits, and establishing an incentive mechanism. At the same time, the Company maintains a vigilant focus on market dynamics, regulatory updates, and internal growth trajectories. It continuously refines ESG management frameworks and standards for supplier networks, fostering a mutually beneficial ecosystem that drives collaborative development. This commitment ensures joint progress toward co-creating an eco-conscious, socially responsible, and sustainable future with supply chain partners.

Topics

Environmental

Social

Corporate Governance

Require suppliers to take necessary environmen-
tal protection measures, such as reducing emissions, protecting resources, and recycling waste; ◎ Encourage suppliers to use renewable energy
Supplier and energy-saving factory technologies;
Management Standards ◎ Require suppliers to implement water resource management controls, take adequate measures to reduce water withdrawals, and process water and wastewater in an environmentally compatible manner.
Require suppliers to respect and protect internation-
al human rights and not engage in acts that violate or infringe on human rights.
Suppliers should be prohibited from using child labor,
forced labor, or any form of compulsory labor to protect the legitimate rights and interests of employees.
Encourage suppliers to provide employees with a
working environment that respects diversity and inclusiveness and advocates equal and fair business ethics.
Require suppliers to comply with all applicable
national and international laws to ensure the legality and compliance of their business activities.
Encourage suppliers to develop and implement
appropriate training so employees can understand generally accepted principles of behavior and international standards.
Supervise the implementation of suppliers' policies
related to anti-monopoly, anti-bribery, and anti-corruption to ensure the fairness and transparency of their business activities.

The Company takes the initiative to explore supply chain energy conservation and emission reduction measures. It continues to work hard in logistics, transportation, and warehousing to minimize carbon emissions and contribute to environmental protection. In supplier selection, the Company adopts the “proximity principle” to avoid excessive energy consumption caused by long-distance transportation. During the Reporting Period, the Company had 41 qualified suppliers, and the ratio of procurement expenditures from local suppliers was 48.77%.

Transparent Procurement

The Company proactively pioneers a “Transparent Procurement” model characterized by legal compliance, operational transparency, and ethical efficiency. It has institutionalized a comprehensive procurement governance framework with standardized operational protocols, ensuring open, equitable, and transparent procedures that eliminate backdoor operations. This strategic approach drives continuous enhancement of procurement management sophistication across the organization. The Company signs the Integrity and Honesty Agreement with suppliers, firmly resists commercial bribery and unfair competition, opposes commercial fraud, and safeguards the legitimate rights and interests of both parties.

During the Reporting Period

100% of our suppliers signed the Integrity and Honesty Agreement.

Appendix

2024 Environmental, Social, and Governance Report

Message from

About the Message from About Sustainable Development Report Chairman WCON Governance

Strengthen Compliance

to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

==> picture [102 x 57] intentionally omitted <==

Human-Centric Commitment

==> picture [264 x 10] intentionally omitted <==

WCON consistently regards employees as a crucial pillar in value creation, remaining committed to fostering an equal, inclusive, and diverse workplace environment. It safeguards employees' legitimate rights and interests while establishing a high-quality talent development system. Through supporting career advancement, prioritizing employee well-being, and enhancing workplace fulfillment, the organization strives to cultivate a profound sense of belonging among its workforce, ultimately achieving mutual growth for both employees and the enterprise.

Responded Topics

◎Safeguarding Employees' Legitimate Rights and Interests

◎Employee Training and Development

◎Occupational Health and Safety

◎Social Contribution

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Safeguard Employees' Rights

The Company strictly adheres to relevant laws and regulations, including the Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China, carrying out labor governance in compliance with legal requirements to establish a standardized employment management system. This compliance framework ensures lawful and orderly operations in employee administration while protecting workers' fundamental rights and interests. The Company adheres to the systematic development of its human resources management framework, establishing institutional documents such as the Employee Handbook, Child Labor Prohibition Policy, and Forced Labor Prevention and Freedom of Employment Regulations. These policies standardize employee conduct, rigorously prohibit child labor and coercive labor practices, and comprehensively safeguard workers' rights and interests. During the Reporting Period, no child labor or forced labor incidents occurred in the Company, and the labor contract signing rate was 100%.

Recruitment and Employment

The Company upholds the principles of “merit-based recruitment and selective hiring” principles, formalized through its Recruitment Management Policy to standardize employment procedures. Functional departments periodically assess workforce demands based on actual staffing conditions and organizational strategic plans, systematically determining departmental staffing quotas and talent requirements. These evaluations are documented in Human Resource Requisition Forms for tiered approval processes. The HR Department subsequently conducts needs assessments and authorization reviews in accordance with Position Descriptions and approved requisition forms, thereby implementing structured recruitment activities.

As of the end of the Reporting Period, the Company had 1,459 employees.

==> picture [758 x 258] intentionally omitted <==

----- Start of picture text -----

12 78 17 78 16
0.82% 5.35% 1.16% 5.35% 1.09%
698 761 616 542 260
47.84% 52.16% 42.22% 37.15% 17.82% 126
8.64%
By academic By job By
By gender By age
qualification level profession
301 1,065 122 1,364 211 1,028
20.63% 73.00% 8.36% 93.49% 14.46% 70.46%
Male Female Under 30 (exclusive) years old Master’s degree or above Senior management Production Sales
30 (inclusive) to 40 (exclusive) years old College degree Middle management Technology Finance
40 years old or above Bachelor’s degree Non-managerial Staff Administration
Below associate degree
----- End of picture text -----

About the Message from Report Chairman

Strengthen Compliance Low-Carbon Operations Innovation-Driven Human-Centric to Solidify Governance for a Green World Transformation Commitment

About Sustainable Development WCON Governance

2024 Environmental, Social, and Governance Report

Appendix

The Company actively diversifies its recruitment channels through collaboration with local human resources and social security authorities, regularly participating in government-organized offline job fairs and online live-streamed recruitment events. It implements cloud-based campus recruitment platforms for digital hiring campaigns and engages in seasonal campus recruitment activities at universities during autumn and spring semesters. During the Reporting Period, the Company participated in or held 8 campus recruitment activities, covering 8 institutions in Guangdong, Hunan, and Hubei provinces.

==> picture [173 x 115] intentionally omitted <==

“Searching for Talents in Hanjiang, Adding Wings to the Tigers” -- 2024 Humen-Wuhan Campus Recruitment Matching Event hosted by Humen Human Resources and Social Security Bureau

Invitation to Hunan Financial and Industrial Vocational and Technical College Career Fair for the Class of 2025

During the Reporting Period

Number of new employees 1,003 , in which Social recruitment 982 persons

On-campus recruitment 21 persons

Statistical scope: Newly recruited employees include both active and separated employees recruited within the year, excluding those who left within 7 days of joining.

==> picture [368 x 104] intentionally omitted <==

Diversity, Equality, and Inclusion

The Company recognizes international norms and guidelines such as the Universal Declaration of Human Rights and the Ten Principles of the United Nations Global Compact. It has established the Anti-Discrimination and Prohibition of Employee Abuse Regulations and the Human Rights Policy Statement to implement these commitments. These policies ensure equitable opportunities for employees across all stages of employment, including recruitment, compensation, training, promotion, benefits, and termination. The Company strictly prohibits discriminatory practices based on race, religion, region, gender, age, physical ability, or height and actively fosters a diverse, equal, and inclusive workforce.

During the Reporting Period

The Company had 2 disabled employees, 154 ethnic minority employees, in which 4 in the management.

The Company places a high priority on safeguarding the rights and interests of female employees, strictly adhering to the Law of the People's Republic of China on the Protection of Rights and Interests of Women. By legally guaranteeing the implementation of maternity leave, lactation breaks, and other statutory protections for female workers, the Company ensures full compliance with wage standards when providing compensation during these periods. Through these efforts, the Company fosters an inclusive environment that strengthens female employees’ sense of belonging and trust.

I Measures for the Protection of Female Rights and Interests

◎ It is strictly prohibited to assign female workers to perform tasks that endanger physical and mental health, jeopardize reproductive health, or pose safety risks;

◎ It is strictly prohibited to require pregnancy tests or contraceptive use as conditions of employment, to reduce base salaries, or to terminate employment contracts during female employees' pregnancy, maternity leave, or breastfeeding periods.

During the Reporting Period

14.74% of the Company's management were female, 4 employees enjoyed maternity leave, and 6 employees enjoyed parental leave.

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

About Sustainable Development WCON Governance

2024 Environmental, Social, and Governance Report

Appendix

Compensation and Benefits

The Company adheres to the principle of distribution according to labor, establishing a Compensation Management System and Performance Management System. Employee compensation is determined based on individual capabilities, contributions, and regional living standards. Employees who deliver outstanding performance are awarded bonuses through a structured evaluation process. The Company has established an All-Excellence Performance Team to ensure the effective implementation of the KSF (Key Success Factors) performance plan. Each department independently calculates monthly performance results, while the All-Excellence Performance Team oversees the verification of performance-based salaries, data collection for relevant metrics, public disclosure of outcomes, and resolution of any disputes.

==> picture [161 x 9] intentionally omitted <==

Employee Benefits

==> picture [190 x 9] intentionally omitted <==

----- Start of picture text -----

Leave Entitlements Living Security
----- End of picture text -----

==> picture [42 x 7] intentionally omitted <==

----- Start of picture text -----

Allowances
----- End of picture text -----

Employees are entitled Pay the five social insurProvide various allowances for to legal holidays, paid ances and one housing employees who have completannual leave, marriage fund in accordance with ed at least one year of service leave, bereavement the law, and provide free with the organization, such as leave, maternity leave, accommodation and meals marriage congratulatory monand other holidays in acfor on-the-job employees. ey, a funeral subsidy, a travel cordance with the law. subsidy for visiting relatives, and an annual living allowance.

==> picture [13 x 10] intentionally omitted <==

----- Start of picture text -----

+
----- End of picture text -----

==> picture [13 x 10] intentionally omitted <==

----- Start of picture text -----

+
----- End of picture text -----

Team-building Interaction

Bonuses

Employees are granted performance-based incentives, such as performance awards, full-attendance bonuses, and performance commissions, based on their job performance evaluations and attendance records.

Regularly organize team dinners and company trips and hold a collective birthday party for employees every month.

==> picture [32 x 21] intentionally omitted <==

----- Start of picture text -----

CASE
----- End of picture text -----

Employee Stock Ownership Plan

On November 27, 2024, the Company disclosed the 2024 Employee Stock Ownership Plan (Draft) and 2024 Employee Stock Ownership Plan Management Measures, proposing to implement an employee stock ownership program targeting directors (excluding independent directors), supervisors, senior executives, core management personnel, key technical (business) personnel, and other eligible incentive recipients within the Company (including consolidated subsidiaries and controlled subsidiaries). Following approval at the Shareholders’ Meeting, the non-trading transfer of shares was completed on January 22, 2025.

Employee Care

The company cares about its employees, attaches importance to the balance between employees' work and life, and organizes various employee activities, which enhances employees' happiness and sense of belonging to the enterprise and increases the company's cohesion.

==> picture [181 x 38] intentionally omitted <==

----- Start of picture text -----

Employee Basketball Game CASE
----- End of picture text -----

==> picture [32 x 21] intentionally omitted <==

----- Start of picture text -----

CASE
----- End of picture text -----

Employee Birthday Party

The Company holds an employee basketball game and provides a bonus of 30,000 yuan as an incentive. Each department selects 10 people to participate, aiming to improve employees' physical fitness and enrich their spare time.

The Company hosts a monthly birthday celebration for employees celebrating birthdays in the current month. Each employee participates in a dedicated celebration ceremony and receives a personalized gift, fostering a stronger sense of belonging and happiness among staff.

==> picture [159 x 89] intentionally omitted <==

==> picture [181 x 39] intentionally omitted <==

----- Start of picture text -----

Outdoor Team-Building CASE
----- End of picture text -----

==> picture [32 x 21] intentionally omitted <==

----- Start of picture text -----

CASE
----- End of picture text -----

Retirement Staff Farewell Party

In January 2024, the Company organized a farewell party for retired employees. Company leaders and personnel from relevant departments participated together to express gratitude for the retiring employees' hard work and promote the company's harmonious and stable development.

T h e C o m p a n y o r g a n i z e d a n o u t d o o r team-building activity themed “Step Out of the Office, Embrace Nature. " The activity led employees to Xiachuan Island via a stop at the historic Chikan Old Town. Participants immersed themselves in breathtaking natural landscapes and cultural heritage throughout the journey, fostering a deeper connection with the Company’s values and collective spirit.

==> picture [159 x 87] intentionally omitted <==

==> picture [159 x 68] intentionally omitted <==

About the Message from Report Chairman

Strengthen Compliance Low-Carbon Operations Innovation-Driven Human-Centric to Solidify Governance for a Green World Transformation Commitment

About Sustainable Development WCON Governance

2024 Environmental, Social, and Governance Report

Appendix

Employee Democratic Governance

The Company respects and safeguards employees' rights to exercise democratic management. It continuously improves the employee democratic management system led by the Labor Union Committee of the Company and streamlines multi-dimensional communication channels. It ensures timely collection, processing, response, and reporting of employee feedback and suggestions. The Company advocates equality in dignity and obligations across all hierarchical levels, emphasizing that every employee is responsible for autonomously participating in corporate governance. The Company respects employees’ rights to self-organize and form groups to collectively express, advance, pursue, and safeguard their shared interests, upholding their freedom of peaceful assembly and association. Simultaneously, it protects employees’ freedom of speech by establishing platforms for diverse viewpoints and actively encouraging staff to contribute ideas for WCON’s development.

Establish Labor Union Committee

Following the Trade Union Law of the People’s Republic of China, the Constitution of the Chinese Trade Unions, and relevant regulations, the Company established a labor union committee composed of employee representatives in 2021. This body organizes employees to lawfully exercise democratic participation, decision-making, management, and oversight, safeguarding their rights to information access, involvement in governance, and supervisory authority—core democratic entitlements under Chinese labor frameworks.

==> picture [366 x 18] intentionally omitted <==

----- Start of picture text -----

During the Reporting Period
----- End of picture text -----

71.10% of employees were union members.

Employee Satisfaction Surveys

The Company continuously enriches employee communication channels and methods and conducts regular employee satisfaction surveys. The survey content is designed from the employee's perspective and covers aspects such as work environment, behavioral etiquette, timeliness of salary payments, workload, rest and vacation time, methods to enhance recognition, internal promotions, training, daily management, and cafeteria satisfaction. The Company listens to employees' opinions, actively seeks measures to address their reasonable demands, and continuously improves employee satisfaction.

Items with High Employee Satisfaction（Satisfaction）

==> picture [364 x 125] intentionally omitted <==

----- Start of picture text -----

Job position safety
93.08%
assurance
Timeliness and accuracy
97.32%
of salary payment
Working environment and
98.89%
working conditions
Cross-departmental
95.28%
communication
----- End of picture text -----

The committees convened 1 meeting reviewed and approved 1 proposal.

Employee Grievance Mechanism

The Company encourages employees to report on the Company's management drawbacks and employees' improper behaviors at work. Employees can submit written appeals to the human resources department or lodge appeals through official accounts, emails, telephone calls, etc. The persons responsible for corresponding to the channels will handle the appeals according to the process specifications and promptly respond to the complainants' demands. For complaints that do not require investigation and evidence collection, the investigation committee needs to reply to the complainants with the results within one working day. For complaints involving investigation and evidence collection, the investigation committee needs to reply to the complainants with the results within seven working days after clarifying the situation. The Company handles all reasonable demands from employees impartially and severely punishes false accusations such as taking credit for others' achievements and retaliation.

==> picture [368 x 157] intentionally omitted <==

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Unblock Development Channels

Employee Training System

The Company positions employee training as a core strategy for its development, establishing management policies for employee training, continuously refining the training system framework, and empowering employees to grow professionally. Department-level units formulate annual employee training plans based on the Company's talent development strategy, and personalized training needs across positions, creating systematic training programs to enhance employee competencies and professional technical capabilities continuously.

The Company incentivizes employees to develop internal training materials aligned with their work experience by offering monetary rewards proportionate to the length of such materials. An internal mentorship program facilitates talent cultivation and retention for new hires or employees undergoing role transitions. This initiative customizes career development pathways while enhancing mentors' communication skills, managerial capabilities, and sense of honor, achieving mutual professional advancement.

==> picture [758 x 194] intentionally omitted <==

----- Start of picture text -----

Training Framework Development Plan
New Employee Post Qualification Functional Management Quality System Internal Lecturer Safety
Orientation Training Training Competency Training Training Training Training
Onboarding Guidance Operation Process Quality Inspection Frontline Supervisor Quality Skills and TTT (Basic, Intermediate, Industrial Safety Training,
Training, Operation Personnel Training, Training, Mid-level Concepts Training, ISO Advanced), TWI Job Occupational Health and
Instruction Manual Manufacturing Personnel Management Training, Training Instruction, Training Tools Safety System Training,
Training Training, Marketing Senior Executive and Methods Hygiene and Safety
Personnel Training, Leadership Development Training, Process Safety
Procurement Personnel Management Training
Training
----- End of picture text -----

During the Reporting Period

Employee Promotion Mechanism

There were 400 internal employee training sessions, covering 100% of employees. The

investment in external training was 163,400 yuan, and the total training duration was

14,129 hours.

The Company prioritizes employee career development, providing equal promotion opportunities and clear career advancement pathways for all staff. The Company establishes a hierarchical promotion assessment system by implementing internal grade advancement mechanisms across all positions to standardize employee promotion workflows and conducts regular evaluations based on predefined assessment cycles and grade-specific criteria. It aims to motivate employees to continuously enhance their professional knowledge and comprehensive capabilities through structured career development paths. At the same time, the Company formulates a job transfer management system. When the Company needs to transfer relevant positions due to organizational expansion, changes, or development, excellent and suitable employees are selected internally through self-recommendation and department recommendation.

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations Innovation-Driven Human-Centric for a Green World Transformation Commitment

Sustainable Development Governance

About the

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Report

Health Protection Network for Public Safety

Safety Management System

The Company profoundly recognizes the importance of workplace safety and occupational disease prevention and strictly implements legal requirements, including the Law of the People's Republic of China on Work Safety and the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases. To fulfill our commitments, the Company has established a comprehensive occupational disease prevention and control accountability framework, developed 12 institutional documents, such as the Occupational Disease Prevention and Control Responsibility System and the Occupational Health “Three Simultaneities” Management System for Construction Projects, and formed an occupational health management team and assigned dedicated personnel to implement these measures. The objectives are to resolve, control, and eliminate occupational hazards, protect employees’ health and legal rights, improve production and working environments, and promote the Company’s sustainable economic development. At the same time, according to the internal Environmental/Occupational Health and Safety Manual, the Company establishes an EHS Safety Committee, which is responsible for ensuring the continuous improvement of all employees' awareness of occupational health and safety and ensuring the timely and orderly procedures for notification, command, control, rescue, evacuation, etc. in emergencies.

==> picture [368 x 167] intentionally omitted <==

----- Start of picture text -----

Chief Commander
Work Safety Manager
Communication
Firefighting Group Medical Aid Group Evacuation Group Security Group
Group
----- End of picture text -----

To ensure employees' safety, reduce or even eliminate the occurrence of work-related injuries, and enhance the safety responsibility awareness of each department, the Company formulates the Control Procedure for Handling Work-related Injury Accidents, purchases work-related injury insurance for all employees, conducts pre-job training on relevant knowledge for each employee. Employees engaged in special types of work must undergo job skill training, pass the assessment, and hold valid certifications for their positions. Personnel of all trades are prohibited from cross-operating or using machinery/equipment from other trades without authorization. Supervisors may temporarily reassign job duties only after ensuring full safety compliance.

During the Reporting Period Percentage of special operators licensed: 100% Total investment in work-related injury insurance was 475,900 yuan.

Safety Management Objectives

==> picture [368 x 103] intentionally omitted <==

----- Start of picture text -----

2024/2025 Targets Achievements in 2024
Major Work-related
0 Achieved
Injury Accidents
Occupational
0 Achieved
Diseases
----- End of picture text -----

==> picture [368 x 125] intentionally omitted <==

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

About Sustainable Development WCON Governance

About the Report

2024 Environmental, Social, and Governance Report

Appendix

Safety Risk Management

Occupational Disease Hazard Detection

The Company prioritizes preventive control of occupational diseases at the source, continuously conducts hazard identification and occupational disease prevention education, and implements preventive protection measures and standardized work practices for employees in high-risk positions. The Company entrusts accredited occupational health service agencies for workplaces with occupational hazards to conduct annual monitoring of occupational hazard factors and triennial occupational hazard status evaluations. During the reporting period, the Company engaged an accredited third-party institution to monitor occupational hazard factors in the workplace. It implemented corrective actions to address non-compliant factors based on the monitoring results.

During the Reporting Period

==> picture [30 x 7] intentionally omitted <==

----- Start of picture text -----

Fire Drill
----- End of picture text -----

==> picture [182 x 108] intentionally omitted <==

==> picture [32 x 21] intentionally omitted <==

----- Start of picture text -----

CASE
----- End of picture text -----

To further strengthen employees' awareness of fire safety, test the ability of all employees, management personnel, and volunteer firefighters to respond to sudden fire incidents, enhance staff capabilities in fire extinguishing, evacuation, self-rescue, and escape, as well as improve management's organizational, coordination, and command skills at fire scenes, the Company organized a comprehensive fire drill across the entire factory on November 29, 2024.

The detection rate of occupational disease hazards: 100%

The pass rate of occupational disease hazard detection: 100%

The coverage rate for safety risk protection training: 100%

Safety Hazard Assessment

The Company proactively conducts workplace safety hazard identifications, establishes clear risk assessment and rectification protocols, and implements timely corrective actions to ensure a safe and stable working environment for employees. The Company has implemented a multi-frequency, categorized hazard management system with hierarchical controls across the entire plant. This system enforces daily, weekly and monthly inspections to ensure comprehensive risk mitigation. During the Reporting Period, the safety hazard inspection and rectification rate was 100%

Safety Emergency Drills

The Company has established the Emergency Rescue and Management System for Occupational Disease Hazards in compliance with relevant laws and regulations. This system standardizes emergency response and management procedures during major occupational hazard incidents, ensuring effective control and mitigation of various occupational disease-related accidents to minimize harm to personnel. The Company adheres to the principle of “rapid response and proper management” by regularly conducting fire drills and other emergency safety exercises. These initiatives aim to enhance employees' familiarity with emergency procedures and strengthen their comprehensive capabilities in responding to accident risks, thereby improving overall workplace safety preparedness.

Safety Management Measures

The Company rigorously enforces safety production management and occupational disease prevention & control following regulatory requirements, safeguarding employees' physical/mental well-being and workplace safety while striving to establish an accident-free and injury-free operational environment.

Contractor Safety Management

The Company attaches importance to the safety management of contractors. The main external contractors are security services and staff cafeteria operations. The Company has established the Security Management Regulations and the Cafeteria Operating Procedures, which explicitly allocate safety accountability to contracted parties. The Company conducts contractor-associated risk assessments through systematic hazard identification and control processes. Contractors must perform competency-based emergency response drills to maintain operational readiness for incident management.

Occupational Disease Prevention

The Company proactively implements various comprehensive protective measures to mitigate occupational exposure risks, including issuing certified PPE (personal protective equipment) to employees in high-risk positions. The established Maintenance and Overhaul System for Occupational Disease Prevention Facilities and the Management System for Occupational Disease Prevention Supplies ensure continuous operation of occupational disease prevention equipment and emergency equipment. Giving priority to employees’ health, the Company mandates annual occupational health surveillance for personnel exposed to workplace hazards. The 2024 monitoring program covered a total of 351 at-risk workers through required assessments and identified zero new occupational disease cases.

About the Message from Report Chairman

Strengthen Compliance Low-Carbon Operations to Solidify Governance for a Green World

Innovation-Driven Human-Centric Transformation Commitment

About Sustainable Development WCON Governance

2024 Environmental, Social, and Governance Report

Appendix

==> picture [32 x 22] intentionally omitted <==

----- Start of picture text -----

CASE
----- End of picture text -----

==> picture [54 x 8] intentionally omitted <==

----- Start of picture text -----

Health Training
----- End of picture text -----

In November 2024, the Company appointed Professor Tan Feng, a nationally accredited veteran TCM (Traditional Chinese Medicine) expert, as its Chief Wellness Consultant. This engagement included customized health education workshops for designated employee cohorts.

==> picture [170 x 114] intentionally omitted <==

Social Engagement for a Sustainable Future

The Company has established a comprehensive social responsibility vision centered on spearheading connector technology innovation, fueling regional economic growth, and broadly enhancing societal well-being. Guided by its long-term development strategy, the Company dynamically allocates resources across critical areas encompassing regional economic revitalization, industrial advancement, educational/cultural development, healthcare improvement, environmental sustainability, and diversified philanthropic initiatives, which are essential directions for fulfilling the Company’s social responsibilities and making public welfare investments.

The Company upholds the harmonious integration of economic returns and social value creation, rigorously complying with national statutory requirements and aligning with governmental policy orientations. The Company is committed to generating quality employment opportunities by maintaining operation integrity within legal frameworks and fostering sustainable, well-structured growth for regional economic ecosystems. The Company will continue to fulfill its social responsibilities steadfastly. By continuously enhancing brand influence and industry leadership, the Company is committed to creating more excellent value for all stakeholders, including all sectors of society, investors, and employees.

Management of Hazardous Chemicals

The Company has established the Hazardous Chemicals Management Regulations to define the inventory of hazardous chemicals. The Human Resources Department is responsible for chemical storage management and daily supervision, while the chemical usage department oversees the operational management of chemical handling. All hazardous chemicals are required to have standardized Material Safety Data Sheets (MSDS) documentation. Employees must strictly adhere to established procedures when handling hazardous chemicals, with designated supervisors monitoring operations to prevent violations. In the event of potential hazards, employees must immediately implement emergency protocols to eliminate or minimize workplace risks.

Cultivation of Safety Culture

The Company conducts annual safety education and training programs covering occupational safety knowledge, workplace safety protocols, and safety management competency development. Employees must demonstrate competency through written exams to enhance their safety awareness, thereby strengthening the Company's overall safety governance framework.

During the Reporting Period

There were 38 safety education and training sessions, with 3,300 participants, totaling

41.50 training hours, achieving a 100% coverage rate for safety education.

==> picture [204 x 104] intentionally omitted <==

==> picture [78 x 169] intentionally omitted <==

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations Innovation-Driven Human-Centric for a Green World Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Key Performance Form

Economic Performance

==> picture [368 x 131] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Total Operating
RMB 10,000 48,029.22 48,663.40 53,417.23
Income
Net Profit Attributable
to Shareholders of the RMB 10,000 11,203.26 13,035.46 8,546.64
Parent Company
Total Taxes RMB 10,000 1,491.92 2,677.69 2,688.32
----- End of picture text -----

Governance Performance

==> picture [368 x 183] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Remuneration for directors,
RMB 10,000 360.67 420.58 395.50
supervisors, and senior managers
Number of legal training sessions Times 1 1 1
Duration of Offline Legal Training for 小时 88 88 104
Directors, Supervisors, and Senior Executives
Total participants in legal training
Person 11 11 11
programs
----- End of picture text -----

==> picture [368 x 442] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
The amount involved in litigation or
significant administrative penalties caused
RMB 10,000 0 0 0
by the Company's unfair competition
behavior during the Reporting Period
Signing Rate of Integrity and Other
% 100 100 100
Related Business Ethics Agreements
Total instructional hours dedicated to
anti-commercial bribery and anti-graft Hour - - 6
compliance training delivered to board
members
Total instructional hours dedicated to
anti-commercial bribery and anti-graft Hour - - 80
compliance training delivered to the
management
Total instructional hours dedicated
to anti-commercial bribery and anti- Hour - - 238
graft compliance training delivered to
employees
Number of performance briefings held Times - 2 2
Number of company open days held1 Times 2 2 1
Number of interactions with investors
Times 76 68 105
at irm.cninfo.com.cn
Reply rate on irm.cninfo.com.cn % 100 98.53 100
Number of periodic reports disclosed
Copy 1 6 6
externally
Number of interim announcements
Copy 37 61 54
disclosed externally
----- End of picture text -----

Note 1: Including collective investor engagement day initiatives, and corporate visitation programs

About the Message from About Report Chairman WCON

Strengthen Compliance Low-Carbon Operations Innovation-Driven Human-Centric to Solidify Governance for a Green World Transformation Commitment

Sustainable Development Governance

2024 Environmental, Social, and Governance Report

Appendix

Environmental Performance

==> picture [368 x 442] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Total environmental investment RMB 10,000 10.00 15.00 240.20
Compliance rate observed in pollutant
% 100 100 100
monitoring
Synchronized operation rate of
% 100 100 100
environmental facilities
The compliance rate of “three
simultaneities” in environmental % 100 100 100
protection for construction projects
Number of environmental training
Times 11 14 14
sessions
Number of participants in
Person-times 313 405 525
environmental training
Total hours of environmental training Hour 344.5 458 689.5
Gasoline Ton 4.88 4.54 4.36
Total purchased electricity kWh 6,747,700 6,993,354 8,069,948
Total emission of greenhouse gases1 tCO2e 3,222.70 3,373.18 4,336.63
Direct greenhouse gas emissions
(scope 1)1 tCO2e 41.65 75.81 73.93
Indirect greenhouse gas emissions
(scope 2)1 tCO2e 3,181.05 3,297.37 4,262.71
----- End of picture text -----

==> picture [368 x 384] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Total water consumption Ton 45,688 51,394 50,682
Waste gas emissions Ton 0.25 0.30 0.66
Wastewater discharges Ton 56,457.39 63,508.30 76,748.79
Quantity of general waste generated Ton 3 3 3
Recycling rate of general waste % 50 50 50
Quantity of general waste disposed of Ton 3 3 3
Quantity of hazardous waste
Ton 2 2 2
generated
Quantity of hazardous waste disposed
Ton 2 2 2
of
Waste disposal compliance rate % 100 100 100
Waste engine oil Ton 0.6 0.6 0.6
Waste oil drums Ton 0.2 0.2 0.2
Domestic waste garbage Ton 481.8 481.8 481.8
----- End of picture text -----

Note 1: Scope 1 GHG emissions are calculated based on default values of common fossil fuel characteristic parameters issued by the National Development and Reform Commission of the People's Republic of China; Scope 2 GHG emissions are calculated based on average carbon dioxide emission factors for China's regional power grids issued by the National Development and Reform Commission of the People's Republic of China.

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

Sustainable Development Governance

About the

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Report

Social Performance

◎ Labor Relations Management

==> picture [368 x 423] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Percentage of contract workers % 100 100 100
Number of dispatched workers Person 0 0 0
Number of part-time employees Person 0 0 0
Total number of employees Person 1,203 1,382 1,459
Including: By job level
Senior management1 Person 14 17 17
Middle management2 Person 63 68 78
Non-managerial Staff Person 1,126 1,297 1,364
Including: By gender
Female Person 579 664 698
Male Person 624 718 761
Including: By age
Under 30 (exclusive) years old Person 273 342 616
30 (inclusive) to 40 (exclusive) years old Person 614 702 542
40 years old or above Person 316 338 301
----- End of picture text -----

==> picture [368 x 423] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Including: By academic qualification
Master’s degree or above Person 4 9 12
Bachelor’s degree Person 59 80 122
College degree Person 187 227 260
Below associate degree Person 953 1,066 1,065
Including: By profession
Production Person 863 975 1,028
Sales Person 54 64 78
Technology Person 224 279 211
Finance Person 16 17 16
Administration Person 46 47 126
Number of employees with disabilities Person 1 2 2
Number of employees of minority
Person 155 149 154
nationalities
----- End of picture text -----

About the Message from About Report Chairman WCON

Strengthen Compliance Low-Carbon Operations Innovation-Driven Human-Centric to Solidify Governance for a Green World Transformation Commitment

Sustainable Development Governance

2024 Environmental, Social, and Governance Report

Appendix

==> picture [368 x 461] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Number of employees of minority
nationalities in the management3 Person 2 3 4
Number of new employees Person 869 976 1,003
Including: By recruitment channel
Social recruitment Person 842 957 982
On-campus recruitment Person 27 19 21
The proportion of female managers % 15.58 14.12 14.74
Number of employees on maternity leave Person 3 7 4
Number of employees who took
Person 1 3 6
parental leave
Social insurance coverage rate % 99 97 97
Number of projects reviewed and
Item 0 1 1
approved by the trade union
Proportion of labor union members to
% 20 30 71.10
in-service employees
Number of cases of labor disputes Item 0 0 0
Employee turnover rate % 41.16 36.62 36.69
Including: By gender
Female % 53.16 57.89 52.11
Male % 46.84 42.11 47.89
----- End of picture text -----

==> picture [368 x 156] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Including: By age
Under 30 (exclusive) years old % 39.94 45.61 45.37
30 (inclusive) to 40 (exclusive) years old % 47.14 45.49 47.09
30 (inclusive) to 40 (exclusive) years old % 12.07 8.27 6.63
50 years old or above % 0.58 0.63 0.91
----- End of picture text -----

Note 1: Director level, Note 2: Section Chief + Manager level, Note 3: Deputy Section Chief level and above

◎ Employee Development and Training

==> picture [368 x 251] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Investment in employee training RMB 10,000 - - 16.34
Number of employee training sessions Session 231 256 400
Total number of persons trained Person 1,203 1,382 1,459
Total number of persons trained Person-times 8,292 9,984 10,744
Employee training coverage % 100 100 100
Total hours of employee training Hour 9,749.5 11,669.5 14,129
Average training hours per employee
Hour 11.47 11.67 13.59
per year
Number of employees having successfully
Person 199 172 175
transitioned or applied internally
Proportion of internal transfers or
% 23.41 17.20 16.83
applications by employees
----- End of picture text -----

About the Message from About Report Chairman WCON

Strengthen Compliance Low-Carbon Operations Innovation-Driven Human-Centric to Solidify Governance for a Green World Transformation Commitment

Sustainable Development Governance

2024 Environmental, Social, and Governance Report

Appendix

◎ Occupational Health and Safety

==> picture [368 x 451] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Number of safety production accidents Case 0 0 0
Number of work-related deaths Person 0 0 0
Total number of work-related injuries Person 0 0 0
Hidden danger investigation and
rectification rate % 100 100 100
Safety education and training sessions Times 32 36 38
Number of participants in safety
Person-times 3,060 3,200 3,300
education and training sessions
Total hours of safety education and
Hour 38 47 41.50
training
Coverage rate of safety education and
% 100 100 100
training
Coverage rate of safety risk protection
% 100 100 100
training
Percentage of special operators
% 100 100 100
licensed
Investment in work-related injury
RMB 10,000 18.77 26.6 47.59
insurance
Coverage rate of work-related injury
% 100 100 100
insurance for employees
Coverage rate of physical
% 100 100 100
examinations for employees
The detection rate of occupational
% 100 100 100
disease hazards
Pass rate of occupational disease
% 100 100 100
hazard detection
----- End of picture text -----

◎ Innovation-Driven Growth

==> picture [368 x 451] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Investment in R&D RMB 58,904,472.15 72,336,311.24 64,355,742.49
R&D investment as a percentage of
% 12.26 14.86 12.05
primary business revenue
Total R&D team members Person 224 267 210
Proportion of R&D personnel % 18.62 19.32 13.60
Including: By age
Under 30(exclusive) years old Person 70 81 62
30 (inclusive) to 40 (exclusive) years old Person 107 131 107
40 years old or above Person 47 55 41
Including: By academic qualification
Bachelor’s degree or below Person 200 232 176
Bachelor’s degre Person 24 31 32
Master’s Degree Person 0 4 2
Core technical personnel of the
Person 15 18 18
Company
Total number of authorized patents Item 143 167 201
Cumulative number of authorized
Item 8 11 21
invention patents
Cumulative number of authorized
Item 132 153 168
utility model patents
Cumulative number of granted
Item 3 3 11
design patents
Number of valid patents per million
Item 0.30 0.34 0.38
yuan in revenue
----- End of picture text -----

About the Message from Report Chairman

Strengthen Compliance Low-Carbon Operations Innovation-Driven Human-Centric to Solidify Governance for a Green World Transformation Commitment

Sustainable Development Governance

About WCON

2024 Environmental, Social, and Governance Report

Appendix

◎ Product and Service Safety and Quality

==> picture [368 x 257] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Number of risk assessments conducted Times 1 1 1
Product percent of pass % 99.41 99.52 99.66
Times of annual quality internal audits Times 1 1 1
Number of times third-party agencies
Times 1 1 1
were engaged for sampling
Number of products that are required
to be withdrawn and recalled for Case 0 0 0
health and safety reasons
Amount involved in accidents with
significant safety or quality responsibilities RMB 10,000 0 0 0
related to products or services
Number of participants in quality
Person-times 98 105 119
training
Total hours of quality training Hour 2,352 2,520 2,737
Number of quality training sessions Times 24 24 23
----- End of picture text -----

◎ Protection of Customers’ Rights and Interests

==> picture [368 x 154] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Customer complaint resolution rate % 100 100 100
Number of participants in special training
Person-times 166 230 192
on responding to customer complaints
Total hours of special training on
Hour 166 230 192
customer complaint response
Number of sessions of special training
Times 2 3 3
on customer complaint response
Total sessions of responsible marketing training Times 24 32 38
Number of customer information
Case 0 0 0
leakage incidents
----- End of picture text -----

◎ Supply Chain Security and Sustainability

==> picture [368 x 294] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Number of suppliers Units 41 41 41
The proportion of spending on
% 44.50 45.00 48.77
purchasing from local suppliers was
Number of suppliers certified under Units - 39 39
quality management systems
Number of suppliers certified under Units - 15 15
environmental management systems
Number of suppliers certified under
occupational health and safety Units - 2 2
management systems
Number of suppliers suspended due to Units - 0 0
non-compliance
Number of prospective suppliers Units - 0 0
rejected due to non-compliance
Percentage of suppliers that have
% 100 100 100
signed the Integrity Agreement
The number of incidents with
significant risks and impacts on the Case 0 0 0
supply chain was
----- End of picture text -----

Note: The number of suppliers is counted based on the list of qualified suppliers.

◎ Data Security and Privacy Protection

==> picture [368 x 104] intentionally omitted <==

----- Start of picture text -----

Metrics Unit 2022 2023 2024
Number of training sessions carried out Times 11 12 12
Total investment in data security RMB 10,000 142.7 2.4 9.7
Number of incidents of information
Times 0 0 0
security and privacy protection violations
----- End of picture text -----

Message from Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Innovation-Driven Human-Centric Transformation Commitment

About Sustainable Development WCON Governance

About the Report

2024 Environmental, Social, and Governance Report

Appendix

Metric Index

==> picture [114 x 10] intentionally omitted <==

Shenzhen Stock Exchange Self-Regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial Implementation)

==> picture [368 x 406] intentionally omitted <==

----- Start of picture text -----

Disclosure Requirements Corresponding Sections of This Report
Low-Carbon Operations for a Green World – Responding to
Response to Climate Change
Climate Change, Implementing Low-Carbon Initiatives
Low-Carbon Operations for a Green World – Advancing Environmental
Pollutant Emissions
Stewardship, Reinforcing Pollution & Waste Mitigation Controls
Low-Carbon Operations for a Green World – Advancing Environmental
Waste Disposal
Stewardship, Reinforcing Pollution & Waste Mitigation Controls
Ecosystem and Biodiversity
Not Involved
Conservation
Low-Carbon Operations for a Green World– Advancing
Environmental Compliance
Environmental Stewardship, Reinforcing Pollution & Waste
Management
Mitigation Controls
Low-Carbon Operations for a Green World – Optimizing Energy
Energy Utilization Management, Enhancing Resource Efficiency
Low-Carbon Operations for a Green World – Optimizing Energy
Water Resource Utilization Management, Enhancing Resource Efficiency
Low-Carbon Operations for a Green World – Optimizing Energy
Circular Economy Management, Enhancing Resource Efficiency
Human-Centric Commitment – Proactive Social Engagement, Co-
Rural Revitalization
building a Sustainable Future
Human-Centric Commitment – Proactive Social Engagement, Co-
Contribution to Society
building a Sustainable Future
Innovation-Driven Transformation – Leveraging Innovation Catalysts,
Innovation-Driven Growth
Co-accelerating Industrial Ecosystems
Technology Ethics Not Applicable
----- End of picture text -----

==> picture [368 x 469] intentionally omitted <==

----- Start of picture text -----

Disclosure Requirements Corresponding Sections of This Report
Innovation-Driven Transformation – Reinventing Sourcing
Supply Chain Security
Governance, Strengthening Supply Resilience & Guarantee Provision
Equal Treatment of Small and
Not Applicable
Medium-Sized Enterprises
Product and Service Safety and Innovation-Driven Transformation – Strengthening Quality-Centric
Quality Foundation, Forging Premium Brand Excellence
Data Security and Customer Privacy Strengthen Compliance to Solidify Governance – Prioritizing Data
Protection Integrity, Fortifying Privacy Safeguards
Human-Centric Commitment – Safeguarding Employees' Rights
and Interests, Creating a Fair Workplace
Human-Centric Commitment – Unblocking Development Channels
Employees
to Assist Employees' Growth
Human-Centric Commitment – Strengthening the Health Protection
Network and Reinforcing the Defense Line for Public Safety
Human-Centric Commitment– Safeguarding Employees' Rights
and Interests, Creating a Fair Workplace
Due Diligence
Innovation-Driven Transformation – Strengthening Quality-Centric
Foundation, Forging Premium Brand Excellence
Sustainable Development Governance - Communications with
Communications with Stakeholders
Stakeholders
Anti-commercial Bribery and Anti- Strengthen Compliance to Solidify Governance – Reinforcing
corruption Compliance Governance, Fortifying Ethical Bedrock
Strengthen Compliance to Solidify Governance – Reinforcing
Anti-unfair Competition
Compliance Governance, Fortifying Ethical Bedrock
Protection of Shareholders’ Rights Strengthen Compliance to Solidify Governance – Strengthening
and Interests Investor Relations Management, Protecting Shareholder Rights
Strengthen Compliance to Solidify Governance – Standardizing
Corporate Governance Compliance
Corporate Governance, Promoting Prudent Operation
Strengthen Compliance to Solidify Governance – Standardizing
Corporate Governance, Promoting Prudent Operation
Compliance and Risk Control
Strengthen Compliance to Solidify Governance – Reinforcing
Compliance Governance, Fortifying Ethical Bedrock
ESG Governance Sustainable Development Governance
----- End of picture text -----

About the Message from Report Chairman

Strengthen Compliance to Solidify Governance

Low-Carbon Operations for a Green World

Human-Centric Commitment

Sustainable Development Governance

Innovation-Driven Transformation

About WCON

2024 Environmental, Social, and Governance Report

Appendix

Feedback

==> picture [97 x 10] intentionally omitted <==

Thank you for reading the 2024 Environmental, Social, and Governance (ESG) Report of WCON Electronics (Guangdong) Co., Ltd. We greatly value and eagerly anticipate your opinions and suggestions on our sustainability efforts and sustainable development management. Your feedback is essential for continuously improving and enhancing our sustainability management practices. We kindly invite you to complete the questions in the “Feedback” section and share your responses through the modes provided below. Once again, thank you for your strong support of our sustainability initiatives!

Which of the following stakeholders is most relevant to you about WCON?

□Employee □Customer □ Shareholder and Investor □Supplier □Government and Supervisory Agency □ Industry Association or Scientific Research Institution

□Social Organization, Media and the Public □Others (please specify)

1. Your overall assessment of this year’s ESG report:

Which topics in this year’s ESG report most captured your attention?

□ Excellent □ Good □ Average □ Below Average □ Poor

2. Do you think the information disclosed in the report is accurate, clear, and complete?

Excellent □ Good □ Average □ Below Average □ Poor
What additional information would you like to see in the report?

3. Do you find the report readable?

□ Excellent □ Good □ Average □ Below Average □ Poor

Your opinions on our ESG report or sustainable development work and sustainable development management.
Do you think the report comprehensively reflects the Company’s significant economic, societal, and environmental impacts?

□ Excellent □ Good □ Average □ Below Average □ Poor

Tel.: 0769-85358915

What is your evaluation of the report’s logical reasoning, structural arrangement, and layout design?
Excellent □ Good □ Average □ Below Average □ Poor

Email: [email protected]

Company address: No. 15 Wenming Road, Daning Community, Humen Town, Dongguan City, Guangdong Province

Message from Sustainable Development Chairman Governance

Strengthen Compliance to Solidify Governance

Innovation-Driven Human-Centric Transformation Commitment Appendix

Low-Carbon Operations for a Green World

AI assistant

WCON ELECTRONICS CO.,LTD. — Environmental & Social Information 2025

56243_rns_2025-04-25_6d46e93c-8f4a-462b-b233-e4b33da0b539.PDF

CONTENTS

About the Report

Reporting Scope

Preparation Basis

Data Explanation

Appellation Description

Confirmation and Approval

Access to the Report

Message from Chairman

About WCON

Performance in 2024

Economic Performance

Environmental Performance

Social Performance

Governance Performance

Company Profile

50,000+

100,000+

~~G~~ lo ~~ba~~ l distribution of enterprises

Industrial Layout

Industrial Control Connectors

Main Products

Introduction

Automotive Connectors

Main Products

Introduction

New Energy Connectors

Main Products

Introduction

Corporate Culture

Honors

National “Little Giant”

Innovative Enterprise in Guangdong Province

National High-Tech Enterprise

Shareholding Structure

WCON Electronics (Guangdong) Co., Ltd.

Development Course

2010

2024

2013

2017

Sustainable Development Governance

Supply Chain

Sustainability Governance Structure

Communications with Stakeholders

Management of Material Topics

Analysis Steps of Material Topics

Material Topic Library

Dimension

Topics

Assessment Result of Topic Materiality

-Dual Materiality Assessment and Analysis-

Strengthen Compliance to Solidify Governance

Responded Topics

Standardize Governance for Stable Operation

Governance through the Shareholders’ Meeting, Board of Directors, and Board of Supervisors

Shareholders’ Meeting

Board of Directors

During the Reporting Period

Board of Supervisors

During the Reporting Period

Remuneration Management of Directors, Supervisors and Officers

Risk Management and Internal Control

Internal Control

Risk Management

Tax Management

During the Reporting Period

of RMB 26,883,155.63.

Enhance Investor Relations to Protect Shareholders' Interests

Investor Relations Management

During the Reporting Period

Information Disclosure

Dividend Return

During the Reporting Period

Dividends in the Past Three Years

Reinforce Compliance for Business Ethics

Compliance Management

WCON ELECTRONICS CO.,LTD. Environmental & Social Information 2025

G lo ba l distribution of enterprises