Ming Yang Smart Energy : 2024 Sustainability Report

Published: 2025-04-25 10:13:17 ET 601615.SS

2024

Sustainability Report

CONTENTS

About this Report 02

President Message 03

About Us 05

ESG Management 13

Management Excellence with Stable Progress

Special Topic I: Withstanding Super 22

Typhoon and Demonstra�ng "Wind

Power Resilience"

Typhoon-resistant Oﬀshore Wind 22 Turbines

Globally-leading Floa�ng Wind Turbines 23

Special Topic II: Naviga�ng the Oceans 25 and Going Global

Green Development with Wind Power

Corporate Governance 28

Compliance Preven�on and Control 32

Business Ethics 34

High-quality Products for Business Prosperity

Response to Climate Change 38

Devo�on to Environmental Management 48

Promote Energy Conserva�on and Emission 52 Reduc�on

Explore the Circular Economy 56

Amicable and Humanis�c Working Environment

Self-Driven Innova�on and R&D 58

High-Quality Product Control 69

Considerate Customer Services 71

Responsible Supply Chain 78

Safeguard the Basic Rights and Interests 84 of Employees

Empower Talent Development and 90

Promo�on

Safeguard Occupa�onal Health and 94 Safety of Employees

Shared Beneﬁts and Harmonious Progress

Build a Win-win Partnership 100

Development of Rural Undertakings 104

Community Public-service Ini�a�ves 105

Outlook 108

Appendix 109

Comments and Feedbacks 121

About this Report

Under the principles of objecvity, standardizaon, transparency and comprehensiveness, 2024 Sustainability Report of Mingyang Smart

Energy Group Limited, in detail, discloses speciﬁc pracce and performance of Mingyang Smart Energy Group Limited in the ﬁelds of environmental protecon, social responsibility and corporate governance throughout the year 2024. This Report is made annually. The

2023 Sustainability Report was published alongside the Annual Report of Mingyang Smart Energy Group Limited in April 2024.

Reporng period

The reporng period of this Report runs from January 1, 2024 to December 31, 2024. Some contents hereof go beyond the foregoing period for the purpose of the completeness of this

Report.

Terminology

For the purpose of better presentation, "Mingyang Smart

Energy Group Limited" is also referred to as "Mingyang

Smart Energy", "Mingyang", "the Company" or "We" in this Report. The holding parent company "Mingyang New

Energy Investment Holding Group Co., Ltd." is herein referred to as "Mingyang Group".

Data source and reliability assurance

The informaon and data presented herein are enrely cited from public data of governments, internal stascal reports of Mingyang Smart Energy, quesonnaires of third party, administrave documents and reports, etc. Mingyang Smart

Energy hereby undertakes that there are no misrepresentaons, misleading statements or material omissions in this Report.

Access to this report

Please browse or download this Report from the oﬃcial website of Mingyang Smart Energy (www.myse.com.cn). If you have any quesons and comments about this Report, please email [email protected] dial 0760-28138666.

Reporng scope

This Report covers the businesses of Mingyang Smart Energy

Group Limited and its subsidiaries.

Basis of compilaon

The Ten Principles of the UN Global Compact (UNGC)

The United Naons Sustainable Development Goals (SDGs)

Guidelines No. 14 of Shanghai Stock Exchange for Self-

Regulaon of Listed Companies-Sustainability Report

(Trial), Guidance No. 4 of Shanghai Stock Exchange for Self-

Regulatory Supervision of Listed Companies-Compilaon of Sustainable Development Reports, Shanghai Stock

Exchange

Guidelines on the Corporate Sustainable Disclosure-Basic

Guidelines (Trial), the Ministry of Finance

ISO26000: Guidance on Social Responsibility (2010)

Sustainability Reporng Standards (2021), the Global

Reporng Iniave (GRI)

Guide to Sustainable Development Reporng for Chinese

Enterprises (CASS-ESG 6.0), the China Enterprise Reform and Development Society

President Message

President

The year 2024 stands as a crical juncture for the global energy transion and a signiﬁcant milestone for Mingyang Smart Energy in deepening our commitment to sustainable development and advancing ESG concepts. Against the backdrop of accelerated global eﬀorts toward the dual carbon

goals, Mingyang Smart Energy remains steadfast in the mission of Innovang Clean Energy for All. Riding the surging wave of green and digital economic development worldwide, the Company harnesses technology to drive green producve forces, leads industry transformaon through responsibility, and embarks on a new journey to become a Global Leader in Smart and Inclusive Clean Energy, charng the course with dynamic vision.

President Message

In terms of the environment, we establish a strategic framework centered around "green new quality productive forces", make breakthroughs in core technologies including wind power, photovoltaics and marine energy, and facilitate the transition of the energy mix toward low-carbon, intelligent and global style. In early 2024, we achieved a critical milestone in clean energy development: Yangjiang Qingzhou IV Offshore Wind Farm Project was connected to the grid at full capacity, with annual power output of 1.83 TWh, reducing CO2 emissions by 1.4 million tons annually, equivalent to planting over 7 million trees. As China's farthest offshore wind power project with the highest depth of water, this project sets a model for the worldwide offshore profundal zone development and contributes positively to constructing a clean, low-carbon, safe, and efficient modern energy system in China. Moreover, we constantly implement lifecycle-wide environmental management policies within the Company and apply digital technology to optimize carbon emission management during wind turbine design, manufacturing and operation. Through the application of recyclable materials and decommissioned wind turbine recycling systems, we forge a circular economy pathway with distinct Mingyang characteristics, effectively improving resource utilization rate.

In terms of the society, innovaon remains as a priority of our eﬀorts to unleash sustainable development momentum. In 2024, Mingyang Tiancheng Floang Wind Turbine received the Green Design Internaonal Award, signifying that China's oﬀshore wind power technology has ranked among the world-class innovaons. Originated by Mingyang Smart Energy, dual-rotor design, ultra-high-performance concrete ﬂoang foundaon design and wind turbine cable system collecvely represent groundbreaking advancements, transioning ﬂoang wind turbines from conceptualizaon to realizaon, from shallow sea to deep sea, and from single-rotor machine to dual-rotor conﬁguraon. These achievements set benchmarks for the global oﬀshore wind power commercializaon. In addion to technological progress, we remain steadfast in fulﬁlling our social responsibility. In response to the typhoon "Capricorn", we respecvely donated RMB 5 million to Hainan and RMB 2 million to Zhanjiang, Guangdong Province to aid reconstrucon eﬀorts in aﬀected areas. In Zhongchuan, Guanng and other 16 towns and townships in Minhe County, Qinghai Province, Mingyang-funded housing reconstrucon projects have been completed and put into use. In 2024, we earmarked RMB 45.18 million for public welfare and charity, demonstrang our commitment to societal well-being. Furthermore, employees are our most valuable assets. We connuously reﬁne employee culvaon mechanisms, proved by the annual employee training expenditure of RMB 6.5 million and nearly 3,000 training programs on the internal online learning plaorm My-learning in 2024. We make greater eﬀorts to expand employee beneﬁt package, help employees gain stronger senses of gain, belonging and happiness, and foster harmonious labor relaons.

In terms of the governance, we unwaveringly give play to "decisive role of manufacturing", comprehensively build industrial clusters, complete the industry-wide, full-ecosystem and global presence of new energy business, establish high-quality and sustainable industrial ecosystem, and pave the way for high-end technologies, industrial clusters and applicaon scenarios of new energy in all aspects. corporate governance system has undergone comprehensive upgrade, integrang compliance-based operaon, business ethics and digital transformaon into a uniﬁed framework. A three-ered supervision and management system, namely, "internal supervision-external supervision-collaborave supervision" has shaped up, achieving a 100% coverage rate for employee integrity training. Simultaneously, we acvely advance ESG management and establish ESG governance structure with the Board of Directors as the core. A code of conduct for sustainable development covering all employees and suppliers has been issued, further enhancing the corporate sustainable development capacity. These eﬀorts earned us recognion as one of the Bloomberg Green ESG 50 Most Noteworthy List in China, highlighng market acknowledgment and support for our ESG and sustainability iniaves.

2025 Outlook: The global carbon neutrality process is reshaping the economic landscape, while green development is merely at the inial stage. Mingyang Smart Energy will persist in innovaon-driven strategies, forge green new quality producve forces, make key technological breakthroughs in digital energy, integrated marine development and other ﬁelds, leverage technology-driven cost-eﬀecveness of green electricity, sharpen new compeve edges in carbon costs, and generate high economic value through green momentum. We will make new contribuons to promong global green, low-carbon and high-quality development and building a community with a shared future for mankind.

About Us

Company Proﬁle

Established in 2006 and headquartered in Zhongshan, Guangdong, China, Mingyang Smart Energy Group Limited (601615.SH, MYSE.L) is specialized in research, development and manufacturing of high-end new energy equipment. Our operaons span development and operaon of clean energy sources (wind, solar, storage, and hydrogen), R&D and manufacturing of high-end equipment and engineering technical services. Ranked among the China's Top 500 Enterprises and the Global Top 500 Clean Energy Companies, we are a domescally-leading smart energy enterprise with signiﬁcant global reach.

In terms of industry aributes, Mingyang Smart Energy either falls under Industrials-Capital Goods - Electrical Equipment (Industry Code: 201040) according to the Global Industry Classiﬁcaon Standard (GICS®), or "Industrials Industry-Industrial Products & Services Supersector-Electronic & Electrical Equipment Subsector" (Industry Code: 502020) according to Industry Classiﬁcaon Benchmark (ICB).

In January 2019, Mingyang Smart Energy registered IPO success on Main Board of Shanghai Stock Exchange (Stock Code: 601615.SH, CSRC Industry Classiﬁcaon: General Equipment Manufacturing). In July 2022, Mingyang Smart Energy issued the ﬁrst Global Depositary Receipt (MYSE.L) in China's new energy sector, achieving dual lisngs in Shanghai and London. In July 2024, China's ﬁrst publicly oﬀered REIT for onshore wind power and publicly oﬀered REIT of private enterprise for wind power, namely, China Securies-MYSE New Energy REIT (508015), were listed on Shanghai Stock Exchange.

As a leader in the global new energy equipment industry and smart energy turnkey soluons provider, Mingyang Smart Energy is dedicated to green, smart and inclusive energy. Staying true to corporate mission of Innovang Clean Energy for All, Mingyang Smart Energy has established over 20 new energy equipment manufacturing bases, set up 15 regional operaon and maintenance service centers and more than 400 spare parts warehouses across China, and laid out R&D and innovaon plaorms of One Headquarters and Ten Centers all over the world. Mingyang Smart Energy holds over 2,000 technology patents and over 800 invenon patents and has formulated over 200 domesc and foreign standards, obtained over 100 types of wind turbine cerﬁcaons, and parcipated in eight naonal-level scienﬁc and technological projects.

In 2024, Mingyang Smart Energy realized operang income of RMB 27.158 billion and basic earnings per share of RMB 0.15. Mingyang Smart Energy ranked 19th among the Global Top 500 Clean Energy Companies, 1st in Global Oﬀshore Wind Power Innovaon, and 1st in new installed capacity of oﬀshore wind power in the world.

Operang income

RMB 27.158 billion

Basic earnings per share

RMB 0.15

Global Top 500 Clean Energy Companies

19th

Global Oﬀshore Wind Power Innovaon

1st

New installed capacity of oﬀshore wind power in the world

1st

Corporate Culture

Mission

Business Landscape

Global landscape

Vision

Value

Achieving Customer Success, Openness and Win-win Cooperaon, Innovave Cooperaon, Pursuing Excellence, Contributor Centricity

Global R&D Headquarters

Regional oﬃces

Following the philosophy of Global Cooperaon and Global Sharing, Mingyang Smart Energy spares no eﬀort for new energy technology cooperaon and business operaons in over 60 countries across Asia, Europe, and the Americas, characterized by technology collaboraon, resource coordinaon and supply chain system building with numerous presgious universies and internaonal cerﬁcaon tesng instuons in Denmark, Germany,

Norway, the U.K. and other countries.

Naonwide Footprint

Producon and Manufacturing Bases

Daqing

The Group Headquarters

Xilin Gol League

Ulanqab

Beijing

Baotou

Zhangjiakou

Jiuquan

Tianjin DelinghaZhongwei

Rushan

Yancheng

Xinyang

Southeast Guizhou

Dali

ShaoguanZhangzhou

Jieyang Fangchenggang

Yangjiang

Shanwei

Zhongshan

Dongfang

Strategically comprehensive layout to be closer to the market and customers

The South Seas Islands

20+

400+

New energy equipment

Spare parts warehouses

Regional operaon and

manufacturing bases

maintenance service centers

A rapid response service plaorm, integrang producon bases, operaon and maintenance service centers and projects, has been established to provide eﬃcient operaon and maintenance services and spare parts supply channels for customers.

2024 Highlights

Many products of were inscribed on List of Windpower Monthly

In January, Windpower Monthly, an authoritave media organizaon in the global wind power industry, announced the selecon results of World's Best Wind Turbine for the Year 2023. Mingyang Smart Energy received three gold medals, two second prizes and numerous "world's best" accolades, leading the wind power industry with the most innovave products inscribed on the list. wind turbines of Mingyang Smart Energy have won gold medals for three consecuve years, mirroring extensive recognion of wind power products in the global market.

The world's longest wind power blade successfully rolled oﬀ producon line

On February 27, MySE292 Oﬀshore Ultralarge Wind Power Blade, independently developed by Mingyang Smart Energy, successfully rolled oﬀ the producon line at Hainan Dongfang Intelligent Manufacturing Base. MySE292 Oﬀshore Ultralarge Wind Power Blade is approximately 143 meters in length and has a rotor diameter of 292 meters, marking the world's largest rotor diameter of the same kind. Withstanding super typhoons up to Force 17 on the Beaufort wind scale, this product is suitable for super Class I sea areas across Guangdong, Guangxi, Hainan and Zhejiang.

Aended the Wind Power Development Forum on Wind Power Development Across Rural Towns and Villages

On April 25-26, Mingyang Smart Energy aended Wind Power

Development Forum on Wind Power Development Across Rural Towns and Villages hosted by Wind Energy Associaon of China Renewable Energy Society. Yu Jiangtao, Co-president of Energy Investment Business Group of Mingyang Smart Energy, discussed about collaborave development between wind power and rural areas with insiders. He Xiaobing, Chief Engineer of Central Research Instute of Mingyang Smart Energy, gave a keynote speech on the new quality producve forces and case analysis with respect to "Rural Revitalizaon".

China Securies-MYSE New Energy REIT was listed

On July 23, Lisng Ceremony of China's ﬁrst publicly oﬀered REIT for onshore wind power and publicly oﬀered REIT of private enterprise for wind power, namely, China Securies-MYSE New Energy REIT (closed-end infrastructure securies investment fund), was held at Shanghai Stock Exchange. The successful lisng of MYSE New Energy REIT (Fund Code: 508015) explores a new pathway for innovave capital market ﬁnancing and asset trading models in wind power industry (underlying assets include Huanghua Jiucheng Wind Farm Project in Cangzhou City, Hebei Province, and Hongtujingzi Wind Farm Project in Hexigten Banner, Chifeng City, Inner Mongolia).

The world's largest oﬀshore wind turbine was successfully connected to the grid

On September 26, MySE18.X-20MW Oﬀshore Wind Turbine with the world's largest standalone capacity and the largest rotor diameter, independently developed by Mingyang Smart Energy, was successfully connected to the grid for power generaon. Measured with an annual average wind speed of 8.5 meters per second, such generator set can achieve electricity output up to 80 GWh annually, equivalent to reducing CO2 emission by 66,000 tons, or meeng the annual electricity demand of about 96,000 residents.

Mingyu-1 successfully harvested ﬁsh during large-scale aquaculture demonstraon (Season II)

On October 7, the world's ﬁrst jacket turbine and cage integrated intelligent equipment Mingyu-1 successfully harvested ﬁsh during large-scale aquaculture demonstraon (Season II). This marked a signiﬁcant leap from exploraon and tesng to large-scale development, verifying the sustainability of wind power-ﬁshery integraon mode and feasibility of large-scale producon, laying a solid foundaon for wind power-ﬁshery integraon and large-scale development, and gaining abundant praccal experience.

Mingyang Smart Energy was invited to aend COP29

On November 11-22, Mingyang Smart Energy was invited to aend the 29th Session of the Conference of the Pares (COP29) to the United Naons Framework Convenon on Climate Change in Baku, Azerbaijan. As a leader in the global new energy equipment industry and smart energy turnkey soluons provider, Mingyang Smart Energy shared Chinese wind power technology and proprietary global soluons and related cases, aiming to make new and greater contribuons to accelerang the global clean energy transion and addressing global climate change. During COP29, sustainable audio-visual outcome Hear the Ocean, an episode of The Heart of the Earth produced by Mingyang Smart Energy, was played.

Floang wind power plaorm Mingyang Tiancheng with the world's largest standalone capacity was put into operaon

On December 11, Mingyang Tiancheng was put into operaon at Qingzhou IV Oﬀshore Wind Farm in Yangjiang, Guangdong Province, with oﬀshore distance of about 70 kilometers and water depth of about 45 meters. Independently developed by Mingyang Smart Energy, this sets a global precedent for carrying two 8.3 MW oﬀshore wind turbines on a ﬂoang foundaon, with gross installed capacity of 16.6 MW. Mingyang Tiancheng is expected to supply green electricity of about 54 GWh annually and meet the annual electricity demand of about 30,000 families of three.

The world's ﬁrst 30 MW pure hydrogen-fueled gas turbine "Jupiter-1" completed the ﬁrst full-scale ignion test

On December 22, the world's ﬁrst 30 MW hydrogen-fueled gas turbine

"Jupiter-1" successfully completed the ﬁrst full-scale ignion test. This is pure hydrogen-fueled generator set with the world's largest single unit power. This ignion test achieved the desired eﬀect, verifying the reliability and safety of the pure hydrogen-fueled gas turbine system. "Jupiter-1" marks signiﬁcant progress in Chinese high-power hydrogen-fueled gas turbine and hydrogen energy storage technology, alongside with new long-term energy storage technologies and products.

2024 Key Performance

Environmental

performance

Total environmental investment

Total greenhouse gas emissions

Direct greenhouse gas emissions

132,869.19 tons of CO2e

RMB 122 million

7,661.70 tons of CO2e

Indirect greenhouse gas emissions

Electricity consumpon

Water consumpon

125,207.49 tons of CO2e

167,879,949.89 kWh

1,789,028.97 m3

Diesel oil consumpon

Natural gas consumpon

Volale organic compounds

(VOCs) emissions

591.50 tons

11.05 tons

2.515 million m3

Social

performance

R&D technology personnel

R&D input

Cumulave number of domesc

patent applicaons

2,062

2,043

RMB 1.104 billion

Total employees

Labor contract signing rate

Social insurance coverage rate

13,947

100%

Work safety input

Charitable donaons

Poverty alleviaon and rural

revitalizaon input

RMB 29.3525 million

RMB 26.2153 million

RMB 0.79 million

Economic

performance

Total assets

Total tax payments

Operang revenue

RMB 86.795 billion

RMB 1.328 billion

RMB 27.158 billion

ESG Honors

ESG general awards

CCTV list of "Top 100 Chinese Listed Companies as

ESG Pioneers"

Winner of Bloomberg Green ESG 50 Most Noteworthy

List in China-Leading Champion

Winner of 2024 World Green Design Award

Awards under environmental category (E)

Winner of Green and Beauful Park Enterprise in

Zhongshan City

Wind Turbine Yaw Energy Storage Backup Power System was selected into Typical Cases on Green

Technology Innovaon for the Year 2024

Awards under social category (S)

Winner of Outstanding Contribuon Award for Assisng in High-Quality Development Project for Hundreds of Counes, Thousands of Towns and

Myriads of Villages

Selected into the 1st Credit 100 Mingzhu Cup Excellent

Project Cases of Climate-Friendly Enterprises Winner of 2024 Responsible Whale and Bull Award-ESG Carbon Peaking and Carbon

Neutrality Pioneer Award

Winner of 2024 ESG Gold Medal for China

Manufacturing Listed Companies The world's largest ﬂoang wind power plaorm

Mingyang Tiancheng was selected into Typical Cases on Carbon Peaking and Carbon Neutrality

Technology Innovaon for the Year 2024

Creang Smart Energy and Building Green Home was selected into Excellent Pracce Cases on Green and Low-carbon Enterprise Development for the

Year 2024

Selected into Corporate Social Responsibility Cases for the Year 2024 by People.cn

ESG Management

ESG management system

Mingyang Smart Energy incorporates social responsibility and ESG into corporate operaon and management, featuring a social responsibility and ESG implementaon mechanism, namely, "Responsibility Integraon-Responsibility Implementaon- Responsibility Deepening". Through top-level design, systemac guarantee, key indicator seng, connuous tracking and opmizaon and other means, Mingyang Smart Energy comprehensively coordinates and proceeds with the work related to corporate governance, products, R&D, environment, employees, communies and other aspects concerning social responsibility and ESG topics.

Responsibility Integraon

Responsibility Fulﬁllment

Responsibility Deepening

Mingyang Smart Energy embeds social responsibility and ESG concepts into strategic guidelines and steadfastly persists in green and low-carbon philosophy and innovaon-driven development. Mingyang Smart Energy develops and improves social responsibility and ESG management system, opmizes social responsibility and ESG evaluaon indicators, and fosters a professional team dedicated to advancing these iniaves.

Upholding the philosophy of green energy and leveraging industry-speciﬁc characteriscs and independent innovaon capabilies, Mingyang Smart Energy implements industrial poverty alleviaon plans, connuously tracks the execuon results of various social responsibility and ESG programs and establishes a mul-level evaluaon system. Mingyang Smart Energy also applies charitable fund and other public welfare plaorms on a larger scale, provides assistance and shows solicitude.

Corporate execuves are responsible for giving the strategic direcon of corporate social responsibility, addressing key challenges and diﬃcules in social responsibility work, and promong the implementaon of social responsibility and ESG iniaves. Simultaneously, Mingyang Smart Energy fosters awareness among managers and employees regarding the fulﬁllment of social responsibility, culvang such a team that embraces innovaon, accountability and acon in the realm of ESG.

In 2024, Mingyang Smart Energy systematically updated ESG indicator system in accordance with Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies-Sustainability Report (Trial) (hereinafter referred to as the "Guidelines"), with considerations to the actual circumstances. Based on this update, Mingyang Smart Energy issued ESG Management Measures of Mingyang Smart Energy, revised Rules of Procedure of ESG Management Committee, gradually established sustainable risk identification workflow, improved and perfected ESG management system, and provided decision-making reference and operational support for the implementation of major strategic initiatives.

ESG Pracces and Goals

ESG management architecture

To further diversify the exisng ESG architecture, Mingyang Smart Energy shapes up a three-hierarchy management architecture comprising Decision-making Hierarchy (Board of Directors), Management Hierarchy (ESG Management Commiee), and Execuon Hierarchy (ESG Execuon Team). This architecture clariﬁes the role posionings and responsibility systems of all hierarchies and departments, thereby improving the execuon eﬃciency and collaboraon of ESG work.

Board of Directors

As the highest working body for ESG maers, Board of Directors makes oversight of ESG management in all aspects. It is responsible for formulang and reviewing the corporate sustainability strategies and goals. Leading and parcipang in evaluaon and recognion of ESG risks, Board of Directors establishes and improves the appropriate and eﬀecve ESG risk management and internal control system.

ESG Management Commiee

ESG Management Commiee is headed by President Zhang Chuanwei. ESG Management Commiee is tasked with assisng Board of Directors to keep tracking the sustainable development trends of capital markets and industries at home and abroad, instrucng and overseeing policies related to ESG and sustainable development, and reviewing the progress in ESG-related topics and maers.

ESG Execuon Team

Head of ESG Management Commiee serves as the convener of ESG Execuon Team. ESG Execuon Team consists of members from relevant funconal departments and counterparts from subordinates. Members of ESG Execuon Team report on tracking, analysis, and consolidaon of ESG-related acvies to ESG Management Commiee.

ESG management architecture

Decision-making hierarchy (Board of Directors)

Ensuring smooth implementaon of ESG management with leadership and decision-making ability

Supervising and rafying the corporate ESG strategies, goals and systems; regularly debrieﬁng and reviewing major development trends, risks and opportunies of ESG, and judging on ESG-related maers; reviewing and approving the annual ESG/sustainable development reports; overseeing the implementaon of ESG work and ESG strategies; handling major issues in ESG work.

ESG management architecture

Management hierarchy (ESG Management Commiee)

Duty problems and topics of ESG work; collecng and compiling ESG indicator informaon, and preparing ESG-related documents; giving feedback, report and summary of the problems and results of ESG work, reporng on work progress to ESG Coordinaon Team, and pung forward reasonable suggesons.

ESG Management Commiee consists of chairperson and members, with President Zhang Chuanwei as the head Promong ESG to incorporate into corporate governance, and forming ESG work system.

Keeping abreast of the laws, regulaons and policies in the ﬁeld of ESG, conducng research on environmental protecon, social responsibility, normave governance and other work direcons, and pung forward suggesons; closely aligning with strategic development goals, developing and improving strategic planning, management structure, systems and implementaon rules of ESG management; review and evaluang the current status of ESG work, regularly reviewing the realizaon of ESG goals, stepping up materiality assessment and reporng process to ensure connuous implementaon and implementaon of ESG work; reviewing major ESG trends and related risks and opportunies, evaluang the adequacy and eﬀecveness of ESG organizaon and business model, reviewing key topics with forward-looking implicaons for ESG management or rang, and propelling resource allocaon and project iniaon; guiding, supervising and inspecng the implementaon of ESG work, evaluang the overall ESG performance and making relevant suggesons; reviewing sustainable development reports; reviewing major maers related to ESG management.

Execuon hierarchy (ESG Execuon Team)

ESG Execuon Team consists of personnel designated by the headquarters organs, business units and key funconal departments

Serving as ESG implementaon unit, and speciﬁcally implemenng ESG policies and goals Organizing, promong and fulﬁlling ESG work tasks according to work arrangement of senior managers; developing systems, plans and standards for ESG topics, as well as phased work plans and implementaon programs; collaborang with relevant departments and organizaons to carry out ESG pracces, and acvely resolving cross-departmental

ESG management policies and risk control

To eﬀecvely embed ESG concepts into the whole context of business development, Mingyang Smart Energy opmized and integrated

ESG management policies internally in 2024, aiming to give clear and explicit normave guidelines for the overall corporate operaon and roune behaviors of all employees.

ESG risk and opportunity idenﬁcaon

Risk and opportunity assessment and analysis Priority ordering

Countermeasure development

ESG risk assessment processes

Dimension

Major risks

Countermeasure

Environmental resource consumpon and waste discharge

• To strictly abide by environmental laws and regulaons, fulﬁll environmental monitoring work, and treat waste in compliance-based way

• To carry out environmental protecon publicity and educaon, and constantly improve employees' awareness of environmental protecon and resource conservaon

• To vigorously develop oﬀshore wind power

• To develop "zero carbon soluons"

Fight against climate change

• To issue Green Fund

• To maintain the ecosystem

• To acvely explore circular economy

Product quality risk

• To establish a sound quality management system

• To constantly improve the occupaonal health management system

Occupaonal health and safety

• To strengthen the ability to idenfy occupaonal disease risks

• To enforce work mechanism for double safety prevenon

• To make more eﬀorts for culvang safety culture

• To strengthen supply chain management system Supply chain risk

• To build sustainable supply chain

• Responsible minerals procurement

Regulatory and compliance risks of business ethics

• To constantly opmize the internal governance mechanism and supervision system, standardize business processes at departmental level, and improve corporate governance

In addion, in response to changes in overseas regulaons, Mingyang Smart Energy comprehensively analyzes local regulaons and acts, idenﬁes the exisng risk points in ESG management framework, and proposes to convert relevant tasks into ESG risk management and control, ensuring ESG compliance risks are eﬀecvely controlled.

Looking ahead, Mingyang Smart Energy will constantly opmize mechanisms and processes for ESG risk idenﬁcaon, encompass regulaon interpretaon, risk assessment, workﬂow opmizaon and other crical parts, and strengthen sustainable development capacity by fostering cross-departmental collaboraon.

ESG training

To help employees understand more about ESG concepts and pracse ESG concepts in work posions, three special ESG training sessions were held in June, September and December 2024. These trainings clariﬁed theorecal basis of ESG, domesc and internaonal pracce cases, the way to support and carry out ESG work and other contents, signiﬁcantly propping up sustainable development capacity building.

ESG goals

The core values, advocated by Mingyang Smart Energy, are highly consistent with the mission of the United Naons to realize the Sustainable Development Goals (SDGs). In 2024, Mingyang Smart Energy set ESG strategic goals through in-depth benchmarking 17 SDGs of the United Naons, and comprehensively synergized development strategy and the global sustainable development towards new peaks.

SDG1:

Carry out rural revitalizaon assistance, support agricultural development and agricultural product consumpon, and movate peasants to increase income and get rich.

SDG2:

Launch charity acvies, and improve the living condions of poor families.

SDG3:

Provide regular health examinaon service for employees;

Oﬀer safe and healthy workplace, introduce occupaonal health management system, operang procedures and other normave documents, and maintain occupaonal disease case record at zero.

SDG4:

Build sophiscated talent culvaon system, and provide diversiﬁed curriculum system; Support employees to accept connuing educaon and improve skills, provide tuion reimbursement, skills training and other services, and help employees have access to higher academic qualiﬁcaon or professional cerﬁcaon;

Help rural talents, oﬀer community skills trainings, and improve people's employability.

SDG5:

Guarantee equal employment rights of female employees;

Ensure equal pay and beneﬁts for men and women with the same work capacity in the same posions, and eliminate the gender pay gap;

Create a diverse, equal and inclusive working atmosphere, and prohibit any form of gender discriminaon.

SDG6:

Promote the upgrade of water facilies, comprehensively adopt water-saving sanitary appliances, and reduce water resource waste.

SDG7:

Add investment in clean technology R&D, and acvely build the whole industrial chain ecosystem of wind power, solar power, hydrogen and energy storage.

SDG8:

Establish and improve the internal talent circulaon mechanism, expand the employing channels, and promote the employment of key social groups;

Provide compeve salary and diversiﬁed beneﬁt package.

SDG9:

Give impetuses to scienﬁc and technological innovaon capacity building, and strengthen two-wheel drive strategy of capitals and talents;

Lay out an ecosystem for concerted eﬀorts of industries, universies and research instuons, profoundly cooperate with well-known universies and scienﬁc research instuons, and quicken industrializaon pace of new technology applicaons.

SDG10:

Give necessary support and protecon for vulnerable employee groups;

Provide equal opportunies for training, promoon and career development for all employees.

SDG11:

Echo with the naonal call for Wind Power Development Across Rural Towns and Villages, invest and develop new energy infrastructures, and enable rural residents to enjoy more inclusive clean electricity.

SDG12:

Establish product quality management system, and acvely carry out responsible markeng and customer complaint handling;

Promote sustainable development of suppliers, and avoid conﬂict minerals.

SDG13:

Constantly increase the installed capacity of wind power, photovoltaic power and other types of clean energy, and boost green and low-carbon economic and social transformaon; Idenfy, analyze and manage climate risks and opportunies with signiﬁcant potenal impacts, and develop climate acon plans;

Develop green "zero-carbon" scenario for energy saving and environmental protecon.

SDG14:

Avoid construcon for ﬁsh spawning grounds in marime projects;

Regularly carry out arﬁcial breeding and releasing acvies, and make reasonable compensaon for ﬁshery resources.

SDG15:

Employ non-reﬂecve materials in blade producon process, and minimize the visual impact of fan blades on birds.

SDG16:

Strengthen compliance-based management, and ensure fairness, transparency and inclusiveness of the corporate operation.

SDG17:

Abide by the principles of honest management and fair trading, and resolutely oppose unfair compeon and monopoly conduct;

Establish posive interacve relaons with governments and enterprises, and build a responsible supply chain.

Idenﬁcaon of material topics

Mingyang Smart Energy rigorously follows topics materiality analysis steps and report disclosure framework as menoned in Guidance No. 4 of Shanghai Stock Exchange for Self-Regulatory Supervision of Listed Companies-Compilaon of Sustainable Development Reports (hereinaﬅer referred to as the "Guidance") to set forth the detailed steps analysis of material topics. Through a comprehensive approach including policy research, peer benchmarking, survey, interview and matrix rendering, Mingyang Smart Energy idenﬁes, screens and discloses material topics with ﬁnancial materiality and impact materiality, with appropriate responses to these topics in this Report.

Material topics analysis steps

Analyze such factors as the corporate acvies, products, services and geographical locaon, idenfy stakeholders subjected to the corporate business; make clear the scope of sustainable development topics of concern through policy research, peer benchmarking and other means.

Set foothold on 21 topics as suggested in the abovemenoned Guidance of Shanghai Stock Exchange, refer to actual business operaon and the characteriscs of electrical equipment industry, inially make a list of topics, and form a material topics library.

Distribute quesonnaires to internal and external stakeholders, governments and others, learn about the concerns and impact points of stakeholders, evaluate scale, scope and possibility of impacts, and form analysis results about impact materiality of topics.

Analyze the potenal impacts of topics on business operaon, ﬁnancial status, operang results and cash ﬂows, evaluate possibility and impact degree, and form analysis results about ﬁnancial materiality of topics.

Quanfy evaluaon results of ﬁnancial materiality and impact materiality, show topics priority through matrix graph in the form of two-dimensional axes. Among them, topics with high ﬁnancial materiality and impact materiality imply high priority, while those with high single-dimensional materiality or low bi-dimensional materiality imply medium and low priority.

Disclose material topics with ﬁnancial materiality and impact materiality under four key elements of "Governance", "Strategy", "Impact, Risk and Opportunity Management" and "Indicators and Targets"; disclose material topics with impact importance pursuant to relevant provisions of speciﬁc topics in the abovemenoned Guidelines of Shanghai Stock Exchange. Please refer to the body of this Report for relevant disclosures.

Step 1

Background analysis

Step 2

Topics library establishment

Step 3

Impact materiality assessment

Step 4

Financial materiality assessment

Step 5

Matrix presentaon

Disclaimer

Ming Yang Smart Energy Group Ltd. published this content on April 25, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 25, 2025 at 14:10 UTC.