Kaifa has listed greenhouse gas management as one of the company's sustainability goals and included it in the company's performance evaluation indicators. In order to achieve the goal of net zero emissions, Kaifa strongly supports energy-saving and emission reduction projects, uses renewable energy, installs photovoltaics, and plans to reduce carbon emissions in Scope 1, Scope 2, and Scope 3 of the production, operation, and value chain through carbon offsetting, and purchasing carbon credits. In 2024, Kaifa achieved the greenhouse gas goals of increasing renewable energy usage by 2% annually, reducing greenhouse gas emissions intensity by 2% annually, and promoting 50 emission reduction projects annually.

Environmental Protection: We take measures to minimize environmental pollution and energy consumption by optimizing resource utilization, adopting eco-friendly technologies, and reducing the negative impact of our production and operations on the environment. We conduct ISO14001 internal audit annually to supervise the environmental protection situation of various departments in the company.

Energy Management: We are committed to minimizing our environmental impact by reducing energy consumption and optimizing energy utilization. Through the promotion of energy-saving technologies and the adoption of renewable energy sources, we achieve effective energy management.

Water Resource Management: We prioritize water resource protection and rational utilization. Through a water resource management system, monitoring, and control of water usage, optimized production processes, and reduced water pollution, we strive for sustainable water resource utilization.

Air Emissions Management: We implement effective measures for exhaust gas treatment to minimize emissions. By utilizing advanced emission control equipment and technologies, our goal is to reduce pollution to the atmosphere and safeguard air quality.

Waste Management: We are committed to improving waste management efficiency by reducing waste generation and ensuring safe and compliant waste disposal. Our goal is to minimize the environmental impact through responsible waste management practices.

Environmental Risk Assessment and Improvement: We conduct regular environmental risk assessments to identify and evaluate potential risks. Based on the results, we implement control measures to mitigate these risks. We also monitor and measure our environmental performance using key indicators to track progress in our improvement efforts.

Employee Training and Involvement: We promote environmental awareness and adherence to management policies through communication and diverse employee training programs. We provide necessary resources and support to encourage active employee participation in environmental protection activities.

Information Disclosure and Communication: Prioritizing transparency and accountability, Kaifa actively communicates and collaborates with stakeholders. We share our environmental achievements, welcome feedback, and foster a collaborative approach to environmental stewardship.

ISO14001 Certification: Kaifa has established long-term sustainable green manufacturing strategic goals, promoted the standardization of environmental and energy-related management systems, and continuously improved its environmental and energy management capabilities. We obtained ISO14001 certification in 1999, and as of 2025, the coverage rate of ISO14001 system certification for domestic factories and major overseas companies is 100%.

ISO14064-1 Certification: We actively respond to the global call for low carbon, and since 2007, Kaifa Headquarters, Kaifa Dongguan, and Kaifa Suzhou have gradually implemented third-party carbon verification reports. Since 2021, Kaifa Chengdu has established a greenhouse gas management system in accordance with the ISO14064 standard and obtained a third-party verification. In 2023, Kaifa Dongguan established the ISO14064 system and obtained third-party verification. In 2025, Kaifa established a greenhouse management system among all factories and obtained third-party verification.

ISO14067 Certification: Kaifa attaches great importance to the product carbon footprint, with the goal of having four factories obtain product carbon footprint certification by 2030. In 2025, Kaifa Dongguan Company and Kaifa Chengdu obtained third-party certification for product carbon footprint.

ISO50001 Certification: To achieve rational energy management, Kaifa has implemented the ISO50001 energy management system, with the goal of achieving a 100% coverage rate of ISO50001 system certification for domestic factories and major overseas companies by 2030. Until 2025, Kaifa Chengdu, Kaifa Dongguan, Kaifa Suzhou, Kaifa Suzhou Electronic and Kaifa Precision have obtained third-party certification.

Green Factory Certification: In order to further enhance our comprehensive environmental management capabilities, we launched a green factory certification program in 2024, with the goal of achieving a 100% coverage rate of green factory system certification for domestic factories by 2030 and a 100% coverage rate of green factory system promotion for overseas companies by 2030. During the reporting period, Kaifa Dongguan, Kaifa Chengdu, Kaifa Suzhou and Kaifa Precision have obtained green factory certification.

Kaifa is Committed to Reducing Biodiversity Loss and Deforestation: Ecological security is essential for human survival, development, and economic stability. Unfortunately, human activities have led to significant environmental degradation, underscoring the urgent need to address ecological concerns. At our company, we actively promote clean production, afforestation, eco-friendly products, pollution reduction, and ecological protection while striving to improve resource efficiency. We also promote the participation of suppliers, partners and customers in biodiversity and forest conservation and prioritize environmental education to foster a sense of responsibility. Our commitment to ecological security encompasses various initiatives, including enhancing resource efficiency, promoting environmental protection, and fostering global collaborations. Our ultimate goal is to achieve sustainable and harmonious coexistence with nature. Before establishing new industrial parks, Kaifa diligently complies with relevant laws and regulations, such as those pertaining to nature reserves, forests, and biosafety. We conduct comprehensive environmental impact assessments and implement measures to minimize adverse effects. Moreover, to safeguard sensitive areas, Kaifa subsidiaries are strategically located away from such regions. Our operations strictly adhere to emission standards to ensure compliance and protect the local environment.

Protecting Biodiversity: Biodiversity, as the living fabric of our planet, is crucial for maintaining the balance of natural ecosystems and underpinning human well-being in the present and in the future. Kaifa deeply recognizes the significant importance of biodiversity to the survival and development of nature and humanity, understanding that ecological security is closely related to life safety, economic prosperity, and social stability. Therefore, the Board of Directors has incorporated biodiversity conservation into its sustainable development topic. It has clearly defined the responsibilities of the Board and management. The Strategy and Sustainable Development Committee reports to the Board on measures and implementation progress related to biodiversity conservation, while the Sustainable Development Working Group is responsible for executing and implementing relevant actions. Through relentless efforts, the company is committed to creating a better ecological environment for humanity through our efforts, and achieving harmonious coexistence between humans and nature.

Risk Assessment: Kaifa works closely with stakeholders of suppliers, partners and customers to conduct a comprehensive assessment of potential biodiversity and deforestation risks and dependency in accordance with international standards and domestic regulations. In order to effectively manage risks and strive to achieve No Net Loss (NLL) and Net Positive Impact (NPI) on biodiversity, we will conduct an in-depth analysis of dependencies and impacts, consider local operational and ecological characteristics, identify priority areas of work and develop action plans with clear and measurable indicators. In 2025, Kaifa did not identify any biodiversity-related risks and dependencies.

Impact Mitigation: Kaifa uses the mitigation hierarchy and is committed to reducing the discharge of waste, wastewater, and air pollutants, increasing waste recycling, improving resource and water utilization efficiency, actively promoting clean production technology, strengthening ecological environment protection and restoration, and encourage stakeholders to actively engage in afforestation compensation efforts, to reduce the impact on biodiversity and ecosystems, and prevent deforestation. Kaifa actively engages with stakeholders of suppliers, partners and customers, promotes commitments across the value chain with the scope of Kaifa itself, Kaifa's surrounding area, upstream and downstream, not to conduct operational activities near locations containing globally or nationally significant biodiversity, strengthens environmental awareness and education, enhances employees' environmental consciousness and sense of responsibility, and actively participates in international cooperation to jointly address global ecological protection issues.

Energy Efficiency：Taking all necessary measures to improve energy utilization efficiency and reduce energy waste and losses. By optimizing production processes, promoting energy-saving technologies and equipment, we aim to minimize our energy consumption and carbon emissions.

Renewable Energy：Actively promoting the use of renewable energy sources, including solar and hydro energy. Through investment and procurement of renewable energy facilities, we aim to reduce reliance on traditional energy sources and improve the sustainability of our energy supply.

Energy Management System：Establishing an ISO 50001-based energy management system. Collecting and analyzing energy data to address abnormal consumption and waste. Setting energy targets, developing energy-saving measures, and monitoring implementation for continuous performance improvement.

Employee Engagement：Encouraging employee participation in energy-saving actions, raising awareness of energy consumption, and strengthening their understanding and implementation of energy-saving measures through training and education.

Monitoring and Reporting：Regularly monitoring and measuring energy consumption. Conducting energy performance assessments and developing key indicators to measure effectiveness. Kaifa discloses energy management results and improvement measures to stakeholders, ensuring transparency and communication.

Kaifa grounded in the company's green transformation needs, innovatively established a comprehensive green manufacturing management system spanning the entire chain. This system, starting with green products, building on green factories, empowering by green parks, and extending through green supply chains, covers R&D, design, production, park operations, and supply chain management, achieving a leap from "point-by-point governance" to "systematic collaboration." Internally, green design, clean production, and energy efficiency management refine energy conservation, enhance management capabilities, and reduce operational costs. Externally, the continuously improving green manufacturing standards precisely meet customers' stringent green performance requirements, becoming a key competitive edge for expanding high-end markets and broadening revenue boundaries.

Starting from intelligent metering products, Kaifa continues to build a product matrix with global green competitiveness. Smart power meter: significantly reduced power consumption and raw material consumption. Intelligent gas meter: precise measurement, reducing losses. Smart water meter: extended lifespan and reduced carbon footprint throughout its entire lifecycle. Product ecological design and process innovation: Innovatively propose the principles of "material reduction, non-toxicity, easy disassembly, and recyclability". Through process innovation such as edge-free design, materials and waste reduction, cost reduction, and efficiency development, we integrate green concepts throughout the entire life cycle of product design, manufacturing, use, and disposal.

Kaifa relies on its own advantages in intelligent metering products, integrates AI and digital twin technology, innovatively creates a "zero carbon park solution", and lays out a new map of green industries. Zero carbon park solution: Improve energy efficiency and operational benefits, reduce energy costs, enhance power supply stability and load elasticity, achieve visible and traceable carbon emissions and increase the proportion of renewable energy, effectively promote energy conservation and carbon reduction, drive energy management from "passive consumption" to "active zero carbon", and provide a technically mature and economically feasible path for the green transformation of the manufacturing industry.

Kaifa takes "low-carbon energy, efficient resources, clean and purified production, green products, and land conservation" as its core, and promotes unified green factory construction standards. Key promotion of energy-saving and carbon reduction technological transformation: independently tackling key energy efficiency control technologies, relying on the "Energy Management Innovation Studio" for continuous innovation, and forming replicable technology self-research capabilities. Lean Six Sigma Energy Optimization: Breaking the traditional limitations of relying on equipment replacement, innovating through green belt projects, black belt projects, and frontline proposal mechanisms to achieve dual wheel drive of "technological energy conservation" and "management consumption reduction".Click to View the Green Factory Action.

Against the backdrop of continuously improving global green regulations and customer requirements, Kaifa positions "green supply chain" as the lifeline and essential option for enterprise development and survival. We adhere to "ecological design" as the source and "green supply chain platform" as the center, systematically integrating laws and regulations such as RoHS, REACH, HSF, company green product specifications, conflict minerals, climate and human rights risks, and transforming them into traceable and shareable "green systems", empowering suppliers to achieve "design is compliance, procurement is transparency". As a leading enterprise in the upstream and downstream industries, Kaifa leverages the influence of its chain owners and actively promotes energy conservation and carbon reduction throughout the entire industry chain. In 2025, Kaifa Dongguan actively builds a green supply chain management enterprise with national high standards, and has currently been awarded the title of "Guangdong Province Green Supply Chain Management Enterprise".