格力电器(000651):2025年度环境、社会和公司治理（ESG）报告（英文版）
原标题:格力电器:2025年度环境、社会和公司治理（ESG）报告（英文版） Message from the Management responsibilities. During the reporting period, the Company has continuously advanced the coordinated improvement of sustainable development capabilities along the industrial chain, and has built a safe, resilient, green and sustainable industrial ecosystem. Meanwhile, the Company actively engages in social welfare undertakings. In Against the backdrop of accelerated global green transition in 2025, guided by the vision of "Building a response to emergencies such as the earthquake in Tingri County, Xigaze City, Xizang and the fire at Wang Fuk World-Class Enterprise and Making GREE a Century-Old Brand" and the mission of "For the Clearer Sky Court in Tai Po, Hong Kong, the Company made emergency donations of materials and funds and responded and Greener Earth", Gree Electric Appliances integrates the philosophy of sustainable development into swiftly to post-disaster reconstruction work. It has grown into a trusted key force in society.its corporate culture and drives transformation through independent innovation. Over the past year, the Company has carried out extensive ESG practices and has achieved remarkable results, which would not We implement the dual-carbon strategy, further advance green transformation, and consolidate have been possible without the diligent efforts of all employees, the long-term commitment of investors, the foundation for ecological sustainable development. the collaborative progress of partners, and the understanding and support from all sectors of society. We Faced with the challenges of global climate change, the Company incorporates green and low-carbon hereby extend our sincerest gratitude to all parties concerned.development into its corporate strategy, builds a circular development model across the entire industrial chain, and undertakes ecological and environmental responsibilities with concrete actions. As of the end of the reporting period, the Company has operated 22 green factories (including 10 national-level green factories) We improve corporate governance, respond to investors' concerns, and consolidate the and 6 national-level green supply chain enterprises. foundation for the enterprise to achieve steady and sustainable long-term development.In terms of product R&D, centering on energy conservation, emission reduction and green transformation, The Company standardizes the operation of the Board of Directors to consolidate the foundation for compliant the Company continuously promotes the implementation of technologies in fields such as product energy operation. During the reporting period, the Company has continuously optimized the operational mechanism efficiency improvement, system-level energy saving and low-GWP refrigerant replacement. The Company has of the Board of Directors, revised the Articles of Association and relevant internal management systems, successively overcome technical bottlenecks including "1Hz inverter" and "permanent-magnet synchronous strengthened compliance and risk management, and solidified its business foundation. Directors performed inverter". It also integrates air conditioning technology with photovoltaic and energy storage technologies and their duties diligently and faithfully with standardized and transparent decision-making procedures, and the launches zero-carbon source air conditioning technology. During the reporting period, leveraging the research attendance rate of Board meetings stood at 100%. achievements on "key technologies for wide-range, high-efficiency AI multi VRF systems", the Company's products realize real-time energy efficiency perception and dynamic regulation, and have won the Special The Company strengthens investor communication to enhance corporate governance transparency. Gree Prize for Scientific and Technological Progress in Energy Conservation and Emission Reduction from the Electric Appliances has maintained Grade A in the annual information disclosure assessment of the Shenzhen China Energy Conservation Association. Stock Exchange for five consecutive years. Meanwhile, during the reporting period, the Company has responded to 522 inquiries on the SZSE Interactive Easy Platform, ranking first in the home appliance industry In terms of industrial chain layout, the Company earnestly implements the Extended Producer Responsibility in terms of response volume. It has organized on-site investor visits to leading smart factories and other (EPR) system and establishes a closed-loop system covering "R&D – Production – Sales – Recycling – projects, transparently and intuitively showcasing the achievements of intelligent manufacturing and innovation Regeneration". As of the end of the reporting period, the Company has set up 6 renewable resource bases in China. It effectively addresses investors' concerns to provide strong support for long-term value creation. nationwide and has created an integrated service model of "delivering new products and recycling old ones". By virtue of the full-industry-chain closed-loop model, it drives the green and circular development of the We uphold the people-oriented principle, deepen industrial chain collaboration, and pool joint home appliance industry. During the reporting period, the Company has been awarded the title of "2025 EPR efforts for sustainable development. Responsibility Fulfillment Innovation Pioneer Enterprise". The Company attaches importance to employee care and development to realize the common growth of Corporate Culture Honest Business for Win-win Situation GREE's "Fairness Principles and Code of Conduct" Do More and Integrity "Pragmatic" Brand Honors Stakeholder Identification and Communication Gree Electric Appliances actively carries out communication with various stakeholders, collects the requirements and expectations of stakeholders through various channels, and realizes common development with them.Government Department and Major Stakeholders Shareholder and Investor Customer Partner Employee Society and the PublicRegulatory Authority
10 protection 20 Improving corporate development utilization Based on research findings from internal and external stakeholders, we 2 governance Supply chain Customer service 16 21 Waste treatment 11 conducted double materiality analysis from the two dimensions of impact management3 Transparent disclosure optimization Addressing climate 17 Social contribution 22 materiality and financial materiality, and developed a double materiality 4 Anti-unfair competition 12 Rural revitalization change Equal treatment of Protecting investors' Management of conflict Environmental matrix to define the key topics disclosed this year. Our management 5 13 18 small and medium- rights and interests minerals 23 compliance sized enterprises comprehensively evaluated and finalized the double materiality topics management Standard Operation of the Board of Directors Corporate Governance and Special Committees The convening, holding and voting procedures of the Company's Board of Directors and Board of The Company strictly abides by the Company Law of the People's Republic of China, the Securities Supervisors strictly comply with the Company Law of the People's Republic of China and other laws Law of the People's Republic of China and other laws, regulations and regulatory requirements. It and regulations, as well as the relevant provisions of the Company's Articles of Association, ensuring continuously improves the corporate governance system with the Board of Directors as the core, that corporate governance operates in accordance with laws and regulations in an orderly and efficient clarifies the responsibilities and boundaries of various governance bodies, and standardizes decision- manner. making and supervision mechanisms. Directors and senior management of the Company continuously strengthen their compliance awareness and regularly participate in compliance training organized by regulatory authorities, the Shenzhen Stock Exchange and internal institutions, so as to continuously improve the standardization of duty performance and risk prevention capabilities. During the reporting period, the Company held Corporate Governance Structure Chart 6 meetings of the Board of Directors and reviewed 31 proposals. All incumbent directors achieved a 100% attendance rate. All directors performed their duties diligently and responsibly, with standardized and transparent decision-making procedures. General Meeting of Shareholders Remuneration Management for Diversity of the Board of Directors Directors and Senior Management A diversified Board composition helps introduce different professional perspectives and enhance the scientificity and robustness In accordance with the Company Law of the People's Republic of China, the of the Board's decision-making. In the selection and appointment of directors, the Company attaches importance to the rational Securities Law of the People's Republic of China, the Code of Governance for combination of gender structure, professional background and work experience. The professional fields of the incumbent directors Listed Companies and the Articles of Association of Gree Electric Appliances, cover corporate governance, financial management, legal compliance, home appliance, among others. Many directors boast Inc. of Zhuhai, and in light of the Company's actual conditions, the Company extensive experience in fields such as enterprise management and capital market practice. As of the end of the reporting period, has formulated the Remuneration Management System for Directors and Senior the Company's Board of Directors consists of 10 directors, including 4 independent directors (40%); and 1 female director (10%). Management. By establishing a scientific and effective incentive and restraint mechanism, the system ensures that directors and senior management perform their duties in accordance with the law. The remuneration of directors and senior management consists of basic salary, performance-based salary and medium- Independent Director Education Name Gender Age Professional Background or Not Background to long-term incentive income. In principle, performance-based salary accounts Investor Communication The Company conducts information disclosure and investor engagement activities to deepen While advancing its steady development, the Company always prioritizes rewarding shareholders. communication with investors and improve corporate governance capabilities, while effectively Since its listing in 1996, the Company has raised a total of RMB 5.269 billion through equity financing, safeguarding investors' rights and interests and further delivering corporate value to the market. and distributed cumulative dividends exceeding RMB 188.7 billion (including the 2025 annual dividend), among which cumulative cash dividends exceeded RMB 158.7 billion, and the cumulative amount of share repurchases reached approximately RMB 30 billion. During the reporting period, the Company's Investor Relations Management total cash dividend distribution amounted to RMB 16.755 billion, including: (1) Interim cash dividend distribution for 2025 of RMB 5.585 billion (tax included); (2) Proposed annual cash dividend distribution In accordance with the Company Law of the People's Republic of China, the Securities Law of the for 2025 of RMB 11.170 billion (tax included, subject to review and approval by the Company's General People's Republic of China, the Guidelines for Investor Relations Management of Listed Companies, Meeting of Shareholders). and the Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange—Standardized Operation of Listed Companies on the Main Board, the Company has formulated the Investor Relations Management System to standardize investor relations management and promote Information Disclosure the sound development of the securities market and the Company itself.The Company strictly complies with the Measures for the Administration of Information Disclosure by The Company responds promptly to investors' concerns through multiple channels including Listed Companies, the Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock performance briefings, the SZSE Interactive Easy Platform, investor hotlines and dedicated email Exchange—Standardized Operation of Companies Listed on the Main Board, and the Self-Regulatory addresses. Meanwhile, it organizes investor communication activities and on-site corporate visits and Guidelines No. 5 for Companies Listed on Shenzhen Stock Exchange—Administration of Information research as appropriate, enabling investors to gain in-depth insight into the Company's operating Disclosure Affairs. In accordance with internal rules such as the Information Disclosure Management conditions, business layout and development strategies, thus fostering long-term trust with investors. Measures, the Company has established and improved its information disclosure mechanism to ensure disclosed information is true, accurate, complete and timely. It fulfills information disclosure obligations During the reporting period, the Company openness, fairness and impartiality of market order. As of the end of the reporting period, the Company Anti-Bribery Management System Certification Business Ethics Audit and Supervision The Company integrates business ethics development, anti-commercial For risk identification, the Company adopts an annual self- bribery management into its internal control and audit supervision system, inspection and reporting mechanism for integrity practice. Reporting Channels and conducts ongoing supervision over the implementation of relevant policies. In accordance with the Code of Business Ethics and Conduct of integrity provisions to identify potential commercial bribery and President Mailboxes: More than 30 President mailboxes Gree Electric Appliances and the Anti-Corruption and Anti-Bribery Policy corruption risk points. Based on the likelihood and impact of are set up in various departments, canteens, gate posts of Gree Electric Appliances, Inc. of Zhuhai, the Audit Department regularly risks, the Company defines key focus areas, providing a basis for and factories for employees to file complaints and reports audits the implementation of business ethics codes by all internal institutions subsequent supervision and rectification. in real time. at all levels, holding subsidiaries and relevant business activities across the Integrity Complaint Email: jiancha@cn.gree.com The Company provides training on business ethics and anti- full scope of operation. Complaint Hotline: 0756-8669807 commercial bribery for all employees (the Company has no part-Upholding compliant operation and embracing the core philosophy of time employees) and contractors, and incorporates integrity integrity and self-discipline, the Company conducts regular evaluation on requirements for professional conduct into regular training and the implementation effect of relevant policies in light of the operational Integrity Culture Construction disciplinary education programs. The training covers codes of characteristics of different business sectors, combined with the operation of business ethics, integrity risk alerts, and interpretation of typical The Company clarifies the responsibilities and obligations of internal control, the authenticity and completeness of financial information, cases, aiming to continuously enhance employees' compliance employees in integrity and compliance operation by signing and integrity risks existing in key positions and critical business links. It awareness and risk prevention capabilities. the Integrity Commitment Letter to strengthen individual self-identifies potential business ethics risks, regards links with concentrated discipline and accountability. During the reporting period, the risks as key audit priorities, and promotes problem rectification and Company extended integrity commitment requirements to senior institutional optimization. By integrating audit supervision with internal control During the reporting period, the Company improvement, the Company continuously enhances the effectiveness and Relevant personnel signed the Integrity Commitment Letter on an standardization of business ethics governance. self-inspections and themed publicity activities on integrity practice providing institutional basis for standardized and orderly operation of relevant around key festivals such as New Year's Day, Spring Festival, Mid-work. The Company offers multi-channel reporting avenues for employees Autumn Festival and National Day. Through system promotion and and stakeholders to ensure smooth information submission. 100% coverage rate of case warnings, it strengthens employees' understanding of integrity directors and employees in anti- requirements. During the reporting period, the Company issued To protect the legitimate rights and interests of whistleblowers, the Company commercial bribery and anti-corruption training a total of 30 issues of integrity briefings and 3 issues of discipline specifies withdrawal and protection clauses in its systems, keeps the identity inspection and supervision briefings, continuously sending a clear information and content of whistleblowers confidential, and strictly prevents Strengthening Innovation through Intensive R&D Gree Electric Appliances adheres to the development strategy of "independent R&D of core technologies" and has established a scientific research management mechanism of "investment on demand with no upper limit", providing institutional guarantee for the continuous technological innovation. The Company promotes R&D and achievement transformation around strategic directions, and simultaneously incorporates intellectual property protection into the innovation management system. Through institutional construction, organizational allocation and practical implementation, it supports the standardized management and value realization of technological achievements. Efforts on this have been gradually integrated into product planning, R&D management and business operation processes, becoming an important foundation for the Company's long-term development. Governance research institutes and labs undertaking relevant tasks. In addition, the Company has set up an R&D innovation management department to Through materiality identification of topics, this topic is identified as financially material to the Company. To strengthen the management of this topic, the Company analyzes potential risks and opportunities it may face in this regard and formulates corresponding response measures.List of R&D Innovation Risks and Opportunities 2 Risk Name Specific Description Impact Period Response Measures
To systematically advance R&D innovation management, the Company has established and continuously improved an R&D innovation strategic framework centered on "One Core, Two Chains, Three Foundations, and Four Outcomes". This framework provides an overall design for the governance logic, operational mechanisms, and value objectives of the Company's innovation activities from four dimensions—conceptual guidance, activity operation, organizational support, and outcome orientation—thereby offering an institutional foundation for technological R&D, commercialization of achievements, and innovation practices. Core R&D Innovation Strategy Core R&D Innovation Strategy |
