As a global high-end manufacturing company, we prioritize green and sustainability. We provide exceptional products and services to our customers while integrating environmental protection, social responsibility, and green practices into our operations and culture. Through practical actions, we strive to fulfill Kaifa's sustainability vision of becoming a reliable and respectable enterprise, committed to a sustainable and prosperous future.

Transparent Governance, Honest Operation: In 2023, Kaifa implemented the Three Major Core Businesses strategy, optimizing governance and enhancing capabilities. We prioritize transparency and honesty, strengthening internal systems and integrating risk and compliance management into our operations. Kaifa's commitment to excellence is recognized with an "A" grade in the 2022-2023 information disclosure assessment by the Shenzhen Stock Exchange, marking three consecutive years of top-level recognition. We also received the Best Practices in Board Operations for Listed Companies in 2023 and Best Practices in Board Office for Listed Companies in 2023 awards from the China Association For Public Companies, showcasing the market's recognition of our governance standards and investor relations.

Green Development, Sustainable Operation: Kaifa is committed to environmental protection, implementing low-carbon transformation and promoting industrial and energy adjustments. We adhere to international standards like ISO14064 to establish a greenhouse gas verification mechanism, analyze emissions, and formulate reduction plans. Our focus is on increasing green energy coverage, promoting green manufacturing, and optimizing energy management according to ISO50001. Through investments in energy-saving projects and environmental actions, we encourage subsidiaries to obtain green factory certifications. Our practical actions drive green development towards the goal of achieving net-zero emissions by 2060.

Care for Employees, Grow Together: Kaifa values its employees as the core force behind sustainability. We prioritize a people-oriented talent concept and empower their growth through diverse training programs. Our international talent team and high-quality management system support our global strategic layout. We actively explore medium- and long-term incentive mechanisms to inspire core employees to share responsibilities and benefits, promoting Kaifa's sustainable and healthy development. With a comprehensive safety management system covering all employees, we continuously enhance safety measures, investing more than 5% of our operating income. Through engaging holiday activities, interest classes, sports competitions, and more, we enrich employees' leisure lives and create a safe, healthy, harmonious, and progressive cultural atmosphere.

Engage in Public Welfare and Fulfill Responsibilities: Kaifa actively fulfills social responsibilities and engages in public welfare initiatives. We raise funds, organize volunteer exercises, and provide assistance through labor unions to support rural revitalization. With a strong sense of responsibility, we contribute to society and demonstrate caring. Kaifa has been honored as an Outstanding Enterprise in Fulfilling Social Responsibility by the Federation of Shenzhen Industries for three consecutive years.

Looking ahead, Kaifa is committed to providing high-quality electronic product R&D and manufacturing services, creating value for society, and offering development platforms for employees. We will continue to be guided by the ESG principles, collaborating with stakeholders for mutual success and coexistence, striving for the high-quality development of the economy and society.

To better understand stakeholders' demands and expectations, Kaifa conducted a thorough analysis of material topics through identification, assessment, and approval processes. Surveys and interviews were used to evaluate the impact of these topics on stakeholders and the business, providing crucial insights for developing sustainability strategies and taking action. Moving forward, Kaifa will continue to focus on stakeholders, review and update material topics, and accurately comprehend their diverse needs, guiding and directing our operations, environmental practices, and social governance.