Chengli Automobile Group 2023 Corporate Social Responsibility Report:

　　Chengli Automobile Group Co., Ltd., abbreviated as “Chengli Group”, was founded in 2004, formerly known as Hubei Chengli Special Purpose Vehicle Co., Ltd. Its headquarters is located in Suizhou City, Hubei Province — the hometown of Emperor Yandi and the bell-and-chime ancient music, and the Special Vehicle Capital of China. The Group has a total registered capital of RMB 500 million and is a diversified group company integrating research and development, manufacturing, sales, and automobile financial services for complete vehicles, special-purpose vehicles, new energy vehicles, auto parts and emergency equipment.

　　It currently covers an area of more than 5,000 mu, has over 13,000 registered employees, a building area of more than 2 million square meters, more than 5,000 sets of large-scale production equipment, and 17 subsidiaries, more than 100 professional plants and more than 40 member plants under it. It can produce 50,000 sets of automobile chassis, 100,000 special-purpose vehicles, more than 10,000 new energy vehicles and 20,000 sets of emergency equipment annually.

　　The enterprise has complete qualifications, having obtained ISO 9001 quality management, ISO 14001 environmental management, ISO 45001 occupational health and safety management, after-sales service system and energy management system certification certificates,national military standard, confidentiality and national defense construction supporting service qualification certification, 3C compulsory certification, American Society of Mechanical Engineers (ASME) certification and EU ADR agreement certification. It owns scarce qualification resources such as special-purpose vehicles, onboard cranes, truck cranes, fire trucks, new energy vehicles, complete vehicles and passenger vehicles.

　　I. Chengli Automobile Group Co., Ltd. Establishes an Energy Management System　　

　　Since its establishment, Chengli Automobile Group Co., Ltd. has been guided by technological innovation and committed to developing energy-saving, efficient, low-carbon and green industries. In order to further improve the level of energy use management and increase energy use efficiency, the company decided to establish an energy management system based on the GB/T23331 standard. To this end, the company specially set up a cross-departmental system construction working group headed by the deputy general manager in charge of business, and successively carried out work such as establishing policies and objectives, planning processes, compiling documents and records, and checking implementation, achieving good results. The company's energy management system has passed on-site certification audit.

　　II. Chengli Automobile Group Co., Ltd. Carries Out Special Activities Related to Production Safety

　　In combination with the theme activities of Production Safety Month, employees were organized to participate in a production safety knowledge contest. The company's trade union awarded cash rewards to those with outstanding performance in the contest. This activity enhanced the enthusiasm of front-line employees to learn production safety knowledge, improved their production safety awareness, and helped to push forward safety work.

　　The Safety and Environmental Protection Center compiled emergency plans. During the Safety Month activities, personnel from all production workshops participated in organizing emergency drill activities. The drill covered what to do in the event of a leak in the on-site production area, how to escape, self-rescue, call for help, put on protective clothing, etc. Through this emergency drill, the on-site personnel improved their emergency knowledge and safety awareness, such as how to escape and self-rescue in the event of an emergency.

　　III. Chengli Automobile Group Co., Ltd.Efficient Management

　　In accordance with the requirements of modern enterprise management, the company follows corporate governance norms, implements a management and control system of the board of directors and the business management team, and strengthens the standardization and institutionalization of decision-making procedures and rules of procedure. To ensure the scientific, standardized and professional level of major decisions, the company fully considers the economic, environmental and social impacts of projects in the process of making investment project decisions, carefully conducts research on both enterprise interests and social effects, creates a win-win situation between the enterprise and society, and continuously achieves sustainable development.

　　Every year, risk assessments are carried out on all business links of the company to identify risks, distinguish major risks from general risks, and establish prevention plans according to the risk level to ensure that risks are controllable and high-risk business links are improved.

　　Every year, the company hires external intermediary agencies to conduct internal control audits andinternal control evaluations, and to audit the entire business process of the company, so as to ensure that the enterprise's operation and management are legal and compliant, assets are safe, financial reports and related information are true and complete, improve operational efficiency and results, and promote the realization of the enterprise's development strategy.

　　IV, Social Responsibility Practice of Chengli Automobile Group Co., Ltd.

　　The company conscientiously implements the production safety policy of “safety first, prevention first and comprehensive treatment”, and always puts safety work in the first place. Each position has formulated safety operation procedures, operation instructions and standardized operation standards for the position, and regularly issues corresponding labor protection supplies to ensure the labor safety and occupational health needs of employees.

　　The company strictly implements the relevant provisions on recruitment and employment, and has never recruited child labor. For newly recruited employees, the company signs written labor contracts in accordance with the law, handles employment registration for record, handles employment registration at the employment department, and handles social insurance registration and other related procedures. All filing procedures have always remained at 100%. The company strictly implements national policies and regulations on work-related injuries and occupational diseases. In accordance with the provisions of the Occupational Disease Prevention and Control Law, when signing labor contracts (including employment contracts) with workers, the company truthfully informs workers of the occupational disease hazards that may arise during work and their consequences, occupational disease protection measures and treatment, and states them in the labor contract, with no concealment or deception. During the period of an established labor contract, when engaged in operations that involve occupational disease hazards not informed in the signed labor contract due to changes in positions or work content, the company truthfully informs workers and negotiates to amend the relevant terms of the original labor contract.

　　The company ensures that underage workers do not engage in toxic and harmful labor, the fourth-level physical labor intensity stipulated by the state, or other prohibited labor. The company protects the legitimate rights and interests of female employees, ensuring that female employees, female employees during menstruation, pregnant female employees and nursing female employees do not engage in work prohibited by the state. Female employees in maternity leave enjoy maternity leave of no less than 14 weeks. Female employees pregnant for more than seven months are arranged to work the regular day shift. The company has never delayed the payment of maternity insurance for employees, protecting the legitimate rights and interests of female employees. The company strictly pays social insurance for all employees on time and in full in accordance with national and local government regulations, protecting employees' rights and interests to the greatest extent.

　　The company advocates people-oriented management, provides employees with a comfortable office environment and safe and reliable working conditions, and improves the salary distribution system based on post performance. For key core talents, the company strengthens introduction, reserve and training, provides opportunities and platforms for employee growth, provides a good competitive environment for employee development, and promotes the common growth of employees and the enterprise.

　　The company actively carries out vocational skills training and education, adopting a combination of internal and external methods, holding training sessions by stage and category, and verifying training results through examinations and on-site operations, greatly improving the comprehensive management quality of management personnel and the vocational skill quality of operation and technical personnel.

　　V. Public Relations and Social Welfare Undertakings of Chengli Automobile Group Co., Ltd.

　　The company actively participates in social welfare activities and has carried out targeted poverty alleviation projects; every year, it extends condolences to local nursing homes; it invested RMB 1 million to build roads, ponds, reservoirs and other infrastructure for Xindong Village, Wandian Town, Suixian County, helping to develop characteristic agriculture and enabling 320 poor households in the whole village to benefit and get out of poverty collectively; it absorbed 260 impoverished college students and migrant workers to return to their hometown for employment, solving their source of livelihood; during the “COVID-19 pandemic”, the company's chairman and general manager made donations of money and epidemic prevention materials, which received unanimous praise from society; in 2021, heavy rain and floods hit Zhengzhou, Henan and Liulin, Suizhou, and the company successively dispatched 6 batches of emergency vehicles totaling 13 products and some disaster relief materials to aid flood control and disaster relief in Zhengzhou, Liulin and other places. The 13 products included road wreckers, emergency rescue vehicles, municipal repair vehicles, flood drainage and power generation vehicles, onboard cranes, clothing washing vehicles, post-disaster disinfection vehicles and flatbed trailers, fully demonstrating the company's sense of social responsibility.

　　On December 20, 2023, an earthquake struck Jishishan, Gansu. Chengli Company immediately formed a rescue team and joined the Suizhou joint rescue team to rush to Gansu for earthquake relief. The communication command vehicles, power generation vehicles, camping vehicles, cotton quilts and cotton clothes it provided were the most urgently needed equipment and materials in the disaster area. The emergency vehicles produced by the company played a significant role in logistics support. The Emergency Management Bureau of Jishishan County sent a letter of thanks, expressing sincere gratitude and respect for the support and help given by the Suizhou emergency equipment enterprise joint rescue team in going all out to support the disaster relief work in Jishishan County, Gansu Province.

　　In February 2024, two episodes of freezing rain and heavy snow occurred in the Hubei region, seriously affecting the travel of passengers from north and south and local residents. The company acted on the snow and braved the ice, quickly organizing a voluntary snow and ice removal team. It successively dispatched 11 professional snow removal vehicles and emergency equipment, divided into 4 small teams, and rushed to provincial expressways and urban areas and townships of Suizhou City to carry out rescue operations at full speed. Chengli's ice-breaking and snow-removal vehicles, snow rollers, snowplows, forklift snowplows, deicing and sand spreading vehicles, expressway-dedicated sweeping vehicles, anti-collision vehicles, emergency command vehicles, as well as the hardcore aviation turbofan hot-air snow removal vehicles and more than 10 kinds of heavy professional emergency equipment, played a significant role!

　　Chengli Automobile Group Co., Ltd. will always remain true to its original aspiration and mission. While providing customers with more efficient and green services, it will fulfill its social responsibilities, repay employees with practical actions, and improve the satisfaction of relevant parties.

Chengli Automobile Group Co., Ltd.

April 24, 2024