¹«Ë¾¹«¸æ_°²¿Ë´´ÐÂ£º2023Anker Innovations Sustainability(ESG)ReportÐÂÀË²Æ¾

Actively Advocating for the Industry's Green TransitionTechnology Propels the Enhancement of ProductEnergy EfficiencyActively Promoting the Circular Economy ModelEmpowering Green and Eco-Friendly Lifestyles

Greener ProductsStrengthening Technological and Product InnovationEnsuring Product Quality and SafetySustainable Supply Chain Management

CONTENTS

ESG Strategy and Governance FrameworkIdentification of Material TopicsStakeholder Engagement

Ensuring Employee RightsTalent Development SystemImplementation of Employee Care

Company ProfileCorporate CultureAnnual HonorsCorporate Governance

Addressing Climate ChangeWaste ManagementGreen and Low-Carbon OperationEnvironmental and Ecological Protection

Compliance with Business EthicsConducting Responsible MarketingStrengthening Technological Ethics Governance: AIData and Algorithm ManagementEnsuring Information and Privacy SecurityIntellectual Property ProtectionCustomer Rights Protection

Sustainable DevelopmentManagement

Promoting Industry GreenTransition

Empowering EmployeeDevelopment

About This ReportMessage from Our CEO

About Anker InnovationsGreen and Low-CarbonDevelopment

Responsible Products andTechnology

Integrity and Compliancein Operations

Building a HarmoniousCommunity

Appendix

Carrying out Public Welfare PracticeSupporting Local Development

About This ReportMessage from Our CEOAbout Anker InnovationsSustainable DevelopmentManagementPromoting Industry GreenTransitionResponsible Products andTechnologyGreen and Low-CarbonDevelopmentIntegrity and Compliance inOperationsEmpowering EmployeeDevelopmentBuilding a HarmoniousCommunityAppendix

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ANKER INNOVATIONSSUSTAINABILITY REPORT2023

About This Report

Report OverviewThis is the second annual Sustainability Report (also known as Environmental, Social,and Governance Report) released by Anker Innovations Technology Co., Ltd. (hereinafterreferred to as "Anker Innovations", "the company" or "we") to disclose its sustainabledevelopment practices and progress with stakeholders.Reporting PrinciplesAll of the information in this report comes from Anker Innovations and its subsidiaries. Thereport has been reviewed and approved by the Board of Directors of Anker Innovations.Anker Innovations is responsible for the authenticity, accuracy, and integrity of theinformation in this report.Scope of the ReportThis report covers the full scope of Anker Innovations and its subsidiaries. For details ofthe company's business and subsidiary information, please refer to the Anker Innovations2023 Annual Report (which can be found at http://www.cninfo.com.cn/). Any instanceswhere the scope of the quantified performance data statistics does not conform to theaforementioned situations are explained in the report.The information in this report covers the period from January 1, 2023, to December 31,2023. To enhance the continuity and comparison, some information may go beyond theaforementioned time range.Reporting StandardsThe preparation of this report refers to theGlobal Reporting Initiative (GRI) Standards 2021,the United Nations Sustainable Development Goals (UN SDGs), and theGuidelines No.17 of Shenzhen Stock Exchange for Self-regulatory of Listed Companies at the ShenzhenStock Exchange - Sustainability Report (Trial) disclosure requirements.Anker Innovations identifies key stakeholders, conducts materiality issue analysis, anddefines the scope and boundaries of the report. Meanwhile, we collect, compile, organize,and review relevant information to ultimately produce this report.

Information Sources

All the information presented in this report is derived from the company's official documents, publiclydisclosed information and reports from third-party organizations. Unless otherwise specified, themonetary amounts mentioned herein are in CNY (Chinese Yuan).

Reporting LanguageThis report is available in both Chinese and English versions for reference. The electronic version of thereport can be accessed through our company's website at https://www.anker-in.com/. In the event of anydiscrepancies, the Chinese version shall prevail.Responding to this Report

If you have any questions or suggestions on this report, please contact us.Contact InformationTelephone: 0731-8870-6606Email: ir@anker.com

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ANKER INNOVATIONSSUSTAINABILITY REPORT2023About This Report

Message from Our CEOAbout Anker InnovationsSustainable DevelopmentManagementPromoting Industry GreenTransitionResponsible Products andTechnologyGreen and Low-CarbonDevelopmentIntegrity and Compliance inOperationsEmpowering EmployeeDevelopmentBuilding a HarmoniousCommunityAppendix

Message from Our CEO

As a global technology corporation with business operations extending across more than 140 countries and regions, and im-pacting over 150 million users worldwide, we increasingly focus on ful®ålling our social responsibilities through environmentalprotection, social value creation, and the enhancement of corporate governance. In 2023, we have integrated ESG (Environ-mental, Social, and Governance) at the core of our corporate development strategy. This integration not only signifies a sub-stantial strategic shift, but also represents our steadfast commitment to the future.Last year, we embarked on an in-depth exploration and practical implementation within the realm of ESG:

In terms of environmental protection, we are committed to reducing our carbon footprint and promoting the use of green ener-gy. We have increased our investment in new energy products within our core business, including the launch of several devicesbased on the conversion of solar energy and comprehensive energy management systems. We have deepened the applicationof eco-friendly materials such as bio-based and recycled materials in our products and packaging, with over 300 productsreceiving sustainable product certi®åcation in 2023. Simultaneously, we have joined forces with organizations such as Oceanaand the China Green Foundation to contribute to marine conservation and desert greening initiatives, adding strength to theprotection of our green planet.In terms of social responsibility, we strive to create value for users, employees, and the public, thereby realizing social value.We continue to increase investment in industry-leading technology research and development, committed to delivering prod-ucts and services that exceed user expectations. We have deepened our localization strategy in global markets, providing anintelligent living experience for users with diverse cultural backgrounds. We have upgraded our corporate culture and values,established comprehensive evaluation and learning systems, and offered diverse work and development opportunities, aimingto attract and cultivate more creators who are ¡°First principle, Seek ultimate, Grow together¡±. We actively participate in philan-thropic and charitable activities, collaborating with organizations in China, Australia, Japan, Turkey, the Middle East, and Africa.We fervently support projects that fulfill the dreams of critically ill children, partake in the construction of disaster relief andsports communities, and support rescue operations, all contributing to the building of a better society.In terms of corporate governance, we consistently adhere to proactive, rigorous, and standardized management principles,upholding business integrity and ethics. We have diversi®åed the backgrounds of our board members and implemented variousmeasures to ensure decision-making is professional and e®çcient. In 2022-2023, the company demonstrated outstanding per-formance in standardized operations, regular reporting disclosures, and ®ånancial management innovation, obtained ShenzhenStock Exchange Information Disclosure Rating A (the highest rating). By continuously improving our governance system, strict-ly enforcing anti-bribery regulations, and establishing an integrity and self-discipline management system, we have constantlyenhanced the standardization and effectiveness of internal controls, providing a solid foundation for the stable development ofthe listed company and the protection of investors¡¯ legitimate rights and interests.We ®årmly believe that the long-term value of a company is not only re®æected in its ability to provide the necessary products andservices to its users but also in the impact it has on society ¨C whether it brings about positive and meaningful change. In 2023,Anker Innovations took a solid step forward in integrating technological innovation with sustainable development, as well asupholding the dual importance of consumer value and social value. We look forward to joining hands with an increasing num-ber of companies to create a better world.CEO of Anker Innovations

Steven Yang

About Anker Innovations

Anker Innovations is a global enterprise thatspecializes in consumer electronics. Our missionis to develop high-quality global brands throughindependent R&D and innovation, and to "empowersmarter lives." We emphasize social responsibility,environmental sustainability, and good governancepractices. We persist in promoting sustainabledevelopment to achieve long-term economic, social,and environmental benefits.

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ANKER INNOVATIONSSUSTAINABILITY REPORT2023

SeekUItimateFirstPrinciple

GrowTogether

Anker Makers'10 key characteristics

1.Beyond surface facts

2.Seek fundamental principles

3. Seize the key to breakthroughs

4.Withstand enormous risks

5.Exhaust every possibilties

6.Long-term global-optimal outcome

7.Long-term:Delay gratification with an endgame mindset

8.Greater good:Big-picture-first with a sense of gratitude

9.Continuous learning

10.Evolution through self-reflection

About This ReportMessage from the CEOAbout Anker Innovations

Sustainable DevelopmentManagementPromoting the Industry'sEnvironmental TransformationResponsible Products andTechnologyGreen and Low-CarbonDevelopmentIntegrity and Compliance inOperationsEmpowering EmployeeBuilding a HarmoniousCommunityAppendices

Company ProfileAnker Innovations, established in 2011, is a global consumer electronics company that specializesin developing mobile charging accessories and home energy solutions, as well as unique consumerproducts that support premium audio, mobile entertainment, and the emerging smart home space.Our mission is to develop high-quality global brands through independent R&D and innovation, and toempower smarter lives.

Annual Honors

Corporate Culture

Business Overview

Staffing

Six Major Brands

million users

30+nationalities

146+countries and regions

Approximately

48%of employees are R&D personnel

3,163intellectual properties

Mission

Empowering Smarter Lives

Vision

Establish a portfolio of leadingbrands that deliver a comprehensiverange of essential services.

ValuesFirst principle,Seek ultimate,Grow together.

2023 ESG Innovation Enterprise - Forbes China2023 Annual ESG Enterprise Award - WAVE Global Leader2023 Annual ESG Pioneer Enterprise Award - 13th Public Welfare Festival2023 Top 30 Outstanding Digitized Enterprises of China Listed CompaniesAward - Securities Times2023 Growth 50¡¤China Consumer Annual Growth Brand Award- FirstFinancial2023 Global Talent Attraction Employer Award - LinkedIn2023 Most Popular Employer Among College Students Award - Nowcoder2023 BrandZ Top 50 Chinese Global Brand Award (Ranked 13th) - KantarWon 8 German iF Design Awards and 5 German Red Dot Design Awards

Examples of Anker Innovations 2023 Honors and Awards

Sort by brand establishment time

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ANKER INNOVATIONSSUSTAINABILITY REPORT2023

Institutional GuaranteeIn the realm of governance, Anker Innovations has established a series of standardized documents for corporate governance,including but not limited to the "the Rules of Procedure for the Board of Directors," "the Working System for IndependentDirectors," "the Rules of Procedure for the Board of Supervisors," and "the Rules of Procedure for the Shareholders' Meeting",to help provide clear guidance and norms for corporate governance. The company has also formulated a series ofdocuments such as the "the Management Measures for Information Disclosure," "the Registration System for Persons withInsider Information," "the Internal Audit System", and so forth, to help ensure the transparency and compliance of companyinformation disclosure, and to strengthen the supervision and audit of internal management.During the reporting period, in conjunction with relevant laws, regulations, and actual business development needs, thecompany revised the "Foreign Exchange Hedging Business Management System." By continuously improving the corporategovernance system, Anker Innovations is constantly improving its corporate governance to make it more standardized andeffective, providing a solid institutional guarantee for the steady development of the listed company entity.

Corporate GovernanceCorporate Governance FrameworkAnker Innovations advocates for a corporate governance philosophy that is open, transparent, and highly efficient.Anker Innovations follows the strict compliance guidelines from theCompany Law of the People's Republic ofChina (PRC), theSecurities Law of the PRC, and theCorporate Governance Guidelines for Listed Companiesissuedby the China Securities Regulatory Commission, as well as other relevant securities laws and regulations in theother nations' and regions where the company's products and services are sold. To ensure compliance, Anker hasestablished a governance structure consisting of the General Meeting of Shareholders, the Board of Directors, theSupervisory Board, and the Management team. During the reporting period, the company's governance practiceswere in full compliance with relevant laws and regulations. The General Meeting of Shareholders, the Board ofDirectors, and the Supervisory Board all exercised their respective decision-making, executive, and supervisorypowers in a standardized and effective manner. With clear divisions of responsibility and standardized operations,the company has earnestly safeguarded the legal rights and interests of all shareholders, especially those of theminority shareholders.

Directors and Board of DirectorsTo ensure the diversity and rationality of the Board's decision-making, the third Board of Directorsof Anker Innovations consists of nine members from various professional fields and occupationalbackgrounds, including one non-independent director appointed by external shareholders and threeindependent directors. The three independent directors, each with expertise in financial auditing andcorporate governance, business management, and investment orientation, possess extensive experienceand provide reasonable independent opinions and suggestions for the company's operational decisionsand standardized operations.The Board of Directors has established four specialized committees to provide consultation and advicefor decision-making, including the Audit Committee, Remuneration and Assessment Committee,Nomination Committee, and Strategy Committee. The proportion of independent directors in the firstthree professional committees exceeds 50%, ensuring the professionalization and efficiency of theBoard's decision-making and deliberation.Supervisors and the Board of SupervisorsIn terms of supervision and governance, the company has established a Board of Supervisors. The thirdSupervisory Board consists of three members, all of whom are female supervisors. This includes oneemployee representative supervisor. Through the operation of the Board of Supervisors, the employeerepresentative supervisor protects employees' rights to participate in corporate governance, andcontinuously promotes democratic management of the company. During the reporting period, the Boardof Supervisors of the company supervised and inspected the company's compliance operations and theperformance of directors and senior management in accordance with the requirements of "the Rules ofProcedure for the Board of Supervisors" and other regulations, to protect the rights and interests of allshareholders and ensure the company's compliance operation.

Investor Communication and Shareholder Rights Protection

Investor CommunicationA standardized and transparent information disclosure mechanism is an indispensable key prerequisite for protectinginvestors' interests. Anker Innovations deeply understands the concerns and positions of investors, strictly followslaws and regulations, carefully constructs and continuously improves the management system and internal processesrelated to information disclosure, to ensure that investors' rights and interests are fully protected. During the reportingperiod, the company disclosed a total of 140 reports (including periodic reports), among which 76 were numberedannouncements, conveying the relevant disclosure information of the company to the public in a true, accurate, timely,and complete manner. By doing so, Anker Innovations safeguarded the investors' right to know.In July 2023, our "2022 Annual Report" was recognized as one of the top 28 exceptional examples amongst 1,251enterprises listed on the Shenzhen Stock Exchange's ChiNext, which was included in the "Compilation of OutstandingCases of GEM 2022 Annual Report Disclosure." In October of the same year, the company's information disclosurework for the year 2022-2023 received the highest rating of A from the Shenzhen Stock Exchange. In November, in viewof the company's comprehensive, outstanding performance in standardized operations, periodical report disclosure,financial management innovation, and referring to the evaluations of regulatory authorities such as the Hunan SecuritiesRegulatory Bureau and the Shenzhen Stock Exchange, the company's financial officer was honored with the title of"Excellent Chief Financial Officer of Hunan Province in 2022" by the Hunan Listed Companies Association.

Key Performance

Shareholders'

MeetingBoard ofDirectorsStrategyCommittee

NominationCommittee

ManagementTeam

AuditCommittee

Remuneration andAssessment Committee

Board ofSupervisors

The company held

times

The company held

times

Approved Proposals

piecesApproved Proposals

piecesThe company held

times

Approved Proposals

pieces

Shareholders'Meetings

Board ofDirectorsMeetingsBoard ofSupervisorsMeetings

About This ReportMessage from the CEOAbout Anker InnovationsSustainable DevelopmentManagementPromoting the Industry'sEnvironmental TransformationResponsible Products andTechnologyGreen and Low-CarbonDevelopmentIntegrity and Compliance inOperationsEmpowering EmployeeBuilding a HarmoniousCommunityAppendices

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ANKER INNOVATIONSSUSTAINABILITY REPORT2023

Risk Management and Internal ControlAnker Innovations attaches great importance to risk management and control, and is dedicated toconstructing a risk management system that reflects the company's characteristics and provides long-term security.Management FrameworkThe company aligned with COSO (Committee of Sponsoring Organizations of the Treadway Commission)risk management framework, ISO 31000 risk management standards and industry best practices to builda customized three-line defense risk management framework. This framework encompasses the entirechain from internal control environmental construction to audit closed-loop rectification, and establishesa comprehensive internal risk control system covering various business departments, risk managementdepartments, and the internal control audit department.

Implementation

In terms of implementation, the company follows management procedures such as the "Internal Audit System ofAnker Innovations Technology Co., Ltd.," "Internal Supervision System of Anker Innovations Technology Co., Ltd.","Anker Innovations Clean and Self-discipline Management Regulations," "Anker Innovations Audit Closure ManagementMeasures," and the "Anker Innovations Special Audit Management Measures." By effectively operating daily riskmanagement mechanisms, as well as major risk management mechanisms, the company quickly and accuratelyidentifies, evaluates, monitors, and responds to various risks and vulnerabilities within its operations.To further improve risk management, the company has implemented the following measures since 2020.

Shareholder Rights ProtectionSince its listing in 2020, Anker Innovations has prioritized rewarding shareholders and set up acontinuous and stable dividend policy. From 2020 to 2023, Anker Innovations' accumulated cashdividends totaling CNY 1.951 billion (including the dividend program for 2023). The ratio of total cashdividends to total net profit attributable to the parent company after listing was 42.45%. In order toeffectively protect the rights and interests of shareholders, the company strictly follows the requirementsof relevant laws and regulations, and "the Articles of Incorporation" to re-examine the future shareholderreturn plan every three years, ensuring the stability and continuity of the profit distribution policy.In order to align the interests of the company, shareholders and employees, Anker Innovations launchedtwo consecutive restricted stock incentive plans in 2022 and 2023. In addition, the company adopteda second restricted stock incentive method to enrich the company's long-term incentive mechanism.This initiative aims to explore and carry out shareholding plans that are in line with the company'sorganizational and talent development, and enhance a shareholding structure that aligns with theinterests of the management team, key personnels and shareholders. This approach can help thecompany achieve long-term development.

Accumulated cash dividends amounted toCNY

1.951

billion

The ratio of total cash dividends to total netprofit attributable to the parent company

42.45

%£¤£¤

(including the dividend program for 2023)

Total number of reports the company disclosed

Total number of numberedannouncements

(including periodic reports)

Anker Innovations is well aware of the importance of smooth and compliant communication channels forprotecting investors' interests. Therefore, we prioritize our interaction and communication with investors,adhering to the principles of equality and compliance. Through various channels such as investorhotlines, the Hudongyi platform (the interactive platform of the Shenzhen Stock Exchange), shareholders'meetings, and performance presentations, we objectively and truthfully share the overview of companyoperations and development strategies with investors, building a bond between the enterprise andinvestors, and achieving two-way communications and positive interactions between both parties.

Board of DirectorsAudit Committee

Business Units

Departmentalrisk managementrepresentative

First line of defense

Supporting tier-1departments in conductingrisk management onprofessional perspectives

Finance, Economics,Quality Operations

departments

Second line of defense

Leading third-partyaudits and conductingintegrity investigations

Internal Control and

Audit DepartmentThird line of defense

Strengtheningthe first line ofdefense in riskcontrol throughrisk controlspecialists ineach department.

ImprovingOrganizationalStructure

Fully ensuringthe financial andphysical securityand operationalefficiency of thecompany.

IdentifyingImportantBusiness Risks

Covering varioustypes of riskssuch as strategic,operational,financial, market,and procurementrisks.

Expanding RiskPrevention andControl Scope

Continuouslystrengtheningspecial auditmanagement,audit closed-loopmanagement,special integritygovernance, andaudit violationpunishmentmanagement.

Enhancing RiskPreventionand ControlEffectiveness

About This ReportMessage from the CEO

About Anker Innovations

Sustainable DevelopmentManagement

Anker Innovations believes that themost important value of sustainabilityis that companies leverage their corecompetencies to create value forstakeholders. To achieve this, we need tocomprehensively integrate stakeholderdemands into our company's development.We will achieve the goal of sustainabledevelopment by formulating ESGstrategies and frameworks, identifyingand managing ESG-related risks andopportunities, and strengtheningcommunication and cooperation with allstakeholders.

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2023ANKER INNOVATIONSSUSTAINABILITY REPORTAbout This ReportMessage from Our CEOAbout Anker InnovationsSustainable DevelopmentManagementPromoting Industry GreenTransitionResponsible Products andTechnologyGreen and Low-CarbonDevelopmentIntegrity and Compliance inOperationsEmpowering EmployeeDevelopmentBuilding a HarmoniousCommunityAppendix

2023 Anker Innovations ESG Materiality MatrixESG Strategy and Governance FrameworkTo realize sustainable development, Anker Innovations focuses on four key dimensions of ESGmanagement: "Eco-Innovation," "Sustainable Operations," "Responsible Governance," and "CommunityEngagement." The company aims to integrate social responsibility, environmental protection, and efficientbusiness operations seamlessly to achieve sustainable development across economic, social, andenvironmental perspectives.In support of reaching its sustainable strategic development goals, the company is continuouslyenhancing its ESG governance system by establishing a governance framework consisting of the ESGSpecial Committee, ESG Office, and ESG Taskforce, as well as fostering collaboration at various levelsto ensure the implementation of sustainable development practices. The ESG Special Committee, ledby the CEO and consisting of Board members and core executives, plays a primary role in aligningthe development and execution of ESG-related plans with corporate strategies, goals, and visions.The committee provides oversight of ESG performance and annual progress to ensure effective ESGmanagement. As the highest governing body for ESG affairs within the company, the ESG SpecialCommittee holds responsibility of reviewing and approving the information presented in this report.

Identification of Material TopicsAnker Innovations has identified and established an ESG materiality topic pool based on policy andregulatory benchmarking, industry best practices benchmarking, public opinion analysis, stakeholderfeedback, as well as the company's strategy and business development. ESG issues are analyzedfrom two perspectives: importance to the sustainable development of company and importance tostakeholders, and sorted by importance to create the ESG materiality matrix for the year, aiming to ensurethat we continuously focus on the most influential sustainable development issues during businessoperations.The top-rated sustainable development topics for Anker Innovations in 2023 include: greener productionprocesses, greener products, technology and product innovation, intellectual property protection, productquality and safety, data security and privacy protection, business ethics, sustainable supply chainmanagement, employee rights and welfare benefits. We carry out special management and improvementassignments for the identified ESG material topics, and disclose information in different sections of thisreport to respond to stakeholder concerns and continuously improve the performance of sustainabledevelopment management.

Decision-making levelAdministration levelExecution level

ESG Special CommitteeThe CEO serves as the chairman, and the committeemembers are composed of board members and coreexecutives.ESG OfficeCoordinated by Central-Strategy Planning Office, themembers are composed of ESG representatives fromfunctional units, business groups, and regions.

ESG TaskforceEach business group and region establishes taskforcesaccording to the annual key issues, responsible for the dailyimplementation and management of ESG related matters.

Anker Innovations ESG Governance Framework

E - Environment S - Social G - Governance

Labor managementTechnology and product innovation

GreenerproductionprocessesGreener products

Social welfare and charityEnergy managemenet

Responsible marketingWaste management

Resource utilizationCircular Economy

Risk control

Responsible Sourcing

Employee training and developmentEmployee health and safetyCombating climate change

Reducing greenhousegas emissions

Sustainability governance

Sustainable supplychain management

Customer relations

Anti-corruption

Business ethics

Product quality and safety

Data security and privacy protection

Intellectual propertyprotection

High

Importance to Stakeholders

Employee rights and welfare benefits

Importance to the Sustainable Development of Anker InnovationsLowHigh

Importance of ESG Material TopicsHighMedium LowGreener production processesGreener productsTechnology and product innovationIntellectual property protectionProduct quality and safetyData security and privacy protectionBusiness ethicsSustainable supply chain managementLabor managementEmployee rights and welfare benefits

Responsible SourcingResponsible marketingSustainability governanceRisk controlEmployee training and developmentEmployee health and safetyCombating climate changeReducing greenhouse gas emissionsAnti-corruptionResource utilizationCircular EconomyCustomer relations

Social welfare and charityWaste managementEnergy managemenet

2023 Anker Innovations ESG Material Topic List

2021

Stakeholder Engagement

Anker Innovations places great emphasis on multi-stakeholder engagement and interactivecommunication, and is committed to establishing an efficient communication mechanism withstakeholders. The company strives to ensure that stakeholders fully exercise the right to be informedand to participate. Through transparent and open communication, we aim to deepen stakeholders'understanding and identification with the company. At the same time, we actively listen and collect thedemands and suggestions from various parties, incorporating issues of concern to stakeholders into thecompany's medium and long-term strategic decision-making, to achieve mutual growth and a win-winsituation with stakeholders.

Employees

Major Concerns¡ñ

Stable corporate development¡ñ

Abundant resources for capacity building¡ñ

Open and transparent career development

channels

¡ñ

Work-life balance¡ñ

Competitive salary and benefits¡ñ

Healthy, safe, diverse, inclusive and equal

working environment

Communication Channels¡ñ

Open channels for internal communication¡ñ

Employee congress

Suppliers

Major Concerns¡ñ

Fair and transparent selection process

¡ñ

Stable financial performance and paymentpolicies¡ñ

Long-term stable cooperative relationship¡ñ

Fair, just, open, and transparent procurement

environment

¡ñ

Reasonable product and other requirements

Communication Channels¡ñ

Annual supplier training and exchangemeetings

¡ñ

On-site audit and communication¡ñ

Regular visits¡ñ

High-level mutual visits

Communities

Major Concerns¡ñ

Contribution to the sustainable developmentof the community¡ñ

Sharing the fruits of corporate development

Communication Channels¡ñ

Face-to-face communication¡ñ

Public welfare activities¡ñ

Complaint hotline

SocialOrganizationsMajor Concerns¡ñ

Sound cooperation¡ñ

Timely sharing of corporate experience

and practices¡ñ

Transparent information communication

and sharing

¡ñ

Common development of the industry

Communication Channels¡ñ

Regular communication¡ñ

Project cooperation

Shareholdersand InvestorsMajor Concerns¡ñ

An Overview of Company Operations and FinancialAnalysis¡ñ

Corporate Growth Strategies and Research &Development Focus

¡ñ

Corporate Governance Practices and RiskManagement Measures

Communication Channels¡ñ

Regular Reports and Interim Announcements

¡ñ

Shareholders' Meetings¡ñ

Investor hotline, Investor Email, interactive platform¡ñ

Performance Briefings Related to Regular Reports,

Industry Conferences, etc.

RegulatoryAgenciesMajor Concerns¡ñ

Company's compliance with laws and regulations¡ñ

Measures to protect the rights and interests

of customers, employees, investors and other

stakeholders

¡ñ

Company's operational stability and sustainability of

business growth

Communication Channels¡ñ

Statistical forms, survey questionnaires, etc.

¡ñ

Telephone, email, on-site reporting andcommunication

Customers

Major Concerns¡ñ

High-quality product performance¡ñ

Information security and privacy protection¡ñ

Green product standards¡ñ

Timely and efficient customer service¡ñ

Efficient logistics¡ñ

Product after-sales service and guarantee

Communication Channels¡ñ

Online: email, instant messaging, phone, officialwebsite, app, social media, platform feedback, etc.¡ñ

Offline: customer visits, exhibitions, etc.

Promoting IndustryGreen Transition

Our approach is designed to foster harmoniouscoexistence between humanity and nature,maximize economic and social benefits, andachieve high-quality sustainable developmentby minimizing the use of resources that areharmful to the environment. We are committedto driving changes, while actively contributing tosociety and the environment through innovativeand sustainable business practices.

2425

Actively Advocating for the Industry's GreenTransitionAnker Innovations is strongly advocating for sustainable transformation, including the adoption of unifiedcharging standards to help reduce e-waste and greatly improve energy efficiency as consumers chargeand use their products.

Advocating for the Unified USB Type-C InterfaceFurthermore, since 2018, we have publicly advocated for the adoption of the unified USB Type-C interface.Anker Innovations clearly foresaw that "compatibility" helps realize the interoperability of multiple brandsand devices, thereby reducing customers' repeated purchases and the need to use multiple charginginterfaces. This adoption also enhances the reusability of chargers, reducing waste generation andsaving resources. At the end of 2022, the European Council approved a law aimed at unifying the chargerinterface within the European Union (EU).The implementation of this law is expected to reduce electronic waste by 11,000 tonnes annually withinthe EU. This milestone for sustainable development in the charging field demonstrates the foresight ofAnker Innovations' philosophy and its consistency with international policies. This year has witnessed agrowing trend among industry players to standardize on the Type-C interface. In a significant move, AppleInc. unveiled its iPhone 15 series to the global market in September 2023, with each model featuring theType-C interface.This shift not only reflects the rising tide of environmental consciousness, but also resonates withAnker's ethos of innovation, a synergy that emerged organically without prior collaboration.

Advocating for the Elimination of in-Box Chargers ofElectronic DevicesSince 2018, Anker Innovations has publicly advocated for removing chargers as standard accessoriesof electronic devices such as mobile phones and laptops. Taking this step would effectively reduceelectronic waste, encourage customers to reuse existing charging devices, reduce resources typicallyrequired in the production process such as metal and plastic, and reduce energy consumption duringproduction and transportation.

Anker Innovations publicly advocates for the industry's green transitionAnker GaNPrime Multi-Device Fast Charging Lineup[1] Power efficiency refers to the ratio of output power to input power during the process of converting input electrical energyto output electrical energy. Peak full-load efficiency can reach up to 95%. The higher the power conversion efficiency, the lessenergy is lost during the conversion process.[2] Data is sourced from Navitas' analysis of the effects of replacing silicon with GaN during the manufacturing process.

Technology Propels the Enhancement of ProductEnergy EfficiencyGallium Nitride (GaN) is a material that was initially used in charger semiconductors due to its low heat generation,which allows for a more compact components layout while retaining high power output. Anker Innovations' GaNcharging products brought impactful change to the charging industry and popularized the trend of smaller and lighterchargers. Aside from digital charging accessories, GaN is also used in portable power stations to help reduce energyloss, improve energy conservation, and decrease harmful emissions from small combustion engines.Enhancing Energy Efficiency of Charging AccessoriesIn 2018, Anker, a sub-brand of Anker Innovations, revolutionized the personal electronics charging industry by theapplication of GaN, propelling the entire industry into the era of smaller, more efficient charging devices.In 2021, Anker Innovations released its second-generation GaN products, which helped to change the industry's designand manufacturing solutions, and transform customer usage habits. In 2022, Anker Innovations introduced the GaNPrimelineup. In 2023, the company further reduced chip sizes, moving products toward an even more compact form factor, andcontinued to incorporate GaN driving technology and lossless current detection technology, enhancing the performanceand safety of the product line.Through innovative applications of GaN technology includingPowerIQ?4.0, ActiveShield?2.0 and compact architecture design,Anker has developed its most intelligent multi-device fast chargingsystem to-date. This system has an energy conversion efficiency of95%[1]

, including dynamic power distribution during charging thatcan save up to one hour of charging time while being compatiblewith more than 1,000 devices. Anker Innovations has achieved thiswhile reducing the size of an Anker GaN charger by up to 53%. Inaddition, the Navitas chip can effectively reduce carbon emissionsby 30% [2]

during the manufacturing process. Except for the powersegments of 20W and below, all new PD Wall Chargers released byAnker after 2021 utilize gallium nitride materials.

2627

Actively Promoting the Circular EconomyModelAnker Innovations actively promotes the circular economy model. We pledge to drive the industry toimprove resource utilization efficiency and reduce electronic waste generation to lower the environmentalimpact of our charging products.

"Headphone Insurance" Service Guides Eco-Friendly ConsumerBehavior

As product technology rapidly advances, consumers are confronted with the issue of how to handle electronic devicesthat are no longer in use or are partially damaged. This not only pertains to the efficient use of resources, but alsoencompasses the significant issue of reducing electronic waste. Anker Innovations is dedicated to reducing resourcewaste through innovative services and guiding consumers to enhance the recycling of products.In the TWS earphone category, we've noticed that for every 50 pairs sold, at least one user loses an earpiece

[1]

. This leadsusers to discard the remaining earphone and buy a new set. To address this issue, we offer the "Headphone InsurancePlan" on our website and app. Users can purchase a one-year insurance plan, allowing them to buy replacementearphone parts at a 50% discount. This service is currently available in the US and will expand to other markets. Byoffering this service, we aim to improve user experience, reduce e-waste, and contribute positively to the environment.

Promoting Resource Recycling and Improving RecyclingPrograms

Anker Japan Mobile Battery Trade-in & Replacement Program

Anker Official Website Recycling Guidelines

[1] The data is sourced from the brand's own sales data and statistics on user feedback received by the after-sales customerservice team.[2] This calculation is based on the assumption that a 120W charging demand typically requires three 40W chargers. UsingAnker 737 Charger (GaNPrime 120W) as a replacement reduces electronic waste by 34 grams per unit. With 211,219 units soldin 2023, this equates to approximately 7,181 kg of waste reduction.

Empowering Green and Eco-Friendly Lifestyles

Enhancing Charging Efficiency and Reducing Waste with Multi-in-One and Wireless Technologies

With the increase in personal electronic devices, the demand for convenient, efficient charging solutions grows. AnkerInnovations addresses this by launching fast-charging products that allow users to simultaneously charge multipledevices, thus improving the user experience and reducing electronic waste.From a port count perspective, consider the 120W multi-port charger as an example. Before Anker Innovations createdthe 120W device, charging three devices at once typically required separate chargers. Now, the Anker 737 Charger(GaNPrime 120W) consolidates this process into one device. In 2023, this innovation prevented 7,181 kg

[2]of electronicwaste, effectively lessening the environmental impact.

Adhering to the principles of environmental protection and promoting resource recycling, AnkerInnovations has been at the forefront in Japan since 2019 with its mobile power bank recycling initiative.By offering vouchers as incentives, we encourage consumers to recycle their old devices. In 2022,we once expanded the scope of recycling to include other brands, not limited to Anker products, tocollectively drive the entire industry towards sustainable development.In 2023, the company continued its efforts to enhance the global end-of-life product recycling system,aiming to accept discarded devices in a more standardized and professional manner. Fifteen productsfrom the company's charging accessories category have conducted a pilot product recycling program inNorth America and Europe. This initiative represents the company's first proactive step towards recyclingand disposing of unused electronic products on a company-wide scale. In the future, more products andcategories will be incorporated into the recycling program, with the goal of reducing electronic wasteemissions and continuously pursuing sustainable development objectives.

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2023ANKER INNOVATIONSSUSTAINABILITY REPORTAbout This ReportMessage from Our CEOAbout Anker InnovationsSustainable DevelopmentManagement

Promoting Industry GreenTransitionResponsible Products andTechnologyGreen and Low-CarbonDevelopmentIntegrity and Compliance inOperationsEmpowering EmployeeDevelopmentBuilding a HarmoniousCommunityAppendix

Promoting Clean Energy Adoption for an Eco-Friendly Lifestyle

[1] Under the condition of one cycle per day, a residential-grade battery cell with 6,000 cycles can satisfy a lifespan of up to 15years.

Anker 737 Charger (GaNPrime 120W)

Anker MagGo Wireless Charging Station (Foldable 3-in-1)

Wireless charging technology not only boosts efficiency, but also lessens the need for multipleaccessories, revolutionizing charging practices. The Anker 3-in-1 wireless charger significantly reducesreliance on conventional chargers and cables, thus diminishing electronic waste and encouraging a shiftto a more sustainable lifestyle.Another sustainable product example is the Anker 3-in-1 PowerWave Stand, which seamlessly integratescharging for phones, earbuds, and watches into a single device, ensuring wide compatibility and easeof use in various settings. This innovative product represents not just a charging solution, but also acommitment to a more convenient, efficient, and environmentally friendly lifestyle.

Anker Innovations is actively expanding its portfolio with mobile and home energy storage products powered by solarand other renewable sources. This initiative aims to enhance consumers' use of clean energy, reduce carbon emissionsand other environmental pollution from traditional energy sources, and provide stable energy supply for households. Itaccelerates the societal shift towards a green and sustainable energy lifestyle.

Taking the AnkerSOLIX PPS F series portable energy storage products as an example, high-capacity mobile energystorage can be integrated with rooftop photovoltaic systems for charging and discharging, reducing the use of high-carbon energy sources such as grid electricity during peak times and generators during power outages. This initiativeencourages consumers to utilize clean energy sources and reduce carbon dioxide emissions.

Furthermore, Anker Innovations has launched the AnkerSOLIX Balcony Solar Storage series, designed with a 15-yearlifespan

[1]. These systems work in conjunction with balcony photovoltaic products, charging with solar energy during theday and discharging at night, effectively helping users reduce reliance on thermal power and save on electricity costs.

Anker SOLIX Portable Power Station F SeriesAnker SOLIX Balcony Energy Storage Series

Responsible Productsand Technology

As a responsible product company, Anker Innovations is committedto promoting the research and development of green products,boosting technological and product innovation, ensuring productquality and safety, and actively promoting sustainable supply chainmanagement. We strive to continuously improve the quality andsustainability of our products and technologies to meet the needsand expectations of our customers and stakeholders. We remaindedicated to upholding a responsible attitude and driving theprocess of sustainable development forward.

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Greener ProductsGreen DesignAnker Innovations is actively researching and developing innovative technologies to bring environmentallyfriendly features to its products. Beyond promoting the sustainable design process, the companyaddresses the environmental impacts of its products, such as energy utilization and usage scenarios,enhancing product lifespan and resource efficiency.

eufy Security Cameras: Utilizing Solar Panels for Sustainable Monitoring

AnkerWork: Empowering Hybrid Work and Creating Green MeetingsAnkerWork offers audio and video solutions that enhance hybrid work environments. These productsnot only deliver high-quality audio and video output, but also feature AI noise reduction and imagetracking optimization algorithms for clear and precise transmission. AnkerWork fosters a "green office"environment through devices that help reduce the need for physical attendance and travel for meetings.Our lineups of webcams, speakerphones, conference headsets and wireless microphones can helpfundamentally cut carbon emissions from transportation, as well as save time, resources, and costs,contributing to sustainable development.

Anker Nano Charger: High-Efficiency Space Utilization Design, Volume Reduction,and Carbon Emission Reduction

Anker's charger products have significantly reduced their size through the adoption of innovative product stacking solutionsand high-efficiency space utilization designs. Compared to industry-standard chargers of the same power level, some Ankermodels have achieved a volume reduction of up to 45%. This compact design approach reduces the use of raw materialsfor components and shortens the processing time and steps for parts, effectively lowering energy consumption and carbonemissions during the entire manufacturing process. Furthermore, this approach also lightens packaging requirements,effectively slowing down resource consumption and e-waste generation. Anker's ultra-compact charging products are a keyelement in promoting sustainable consumption and production, helping to shape a greener and more environmentally friendlylifestyle.

Anker PowerLine: Longer-Lasting and Lower ResourceConsumption

Manufacturing high-quality, long-lasting products and continuously improvingtheir service life is one of the most effective ways to prevent resource waste.The bend lifespan of Anker PowerLine (for example, Anker PowerLine+ III) canreach 35,000+ times, which is 7 times the durability of a standard charging cable(5,000 bends). We considerably reduce the demand for and waste of resourcesby prolonging the service life of the product and reducing the frequency ofpurchase.

AnkerWork Audio and Video Solutions

Anker PowerLine

Anker Prime 140W 6-in-1 USB-C Charging Station2024 CES Innovation Award

Anker 20W USB-C Charger (A2637): Size Reduction Compared to Standard Chargers

Anker Prime Charging Station: High Power, Enhanced Efficiency, Reduced Size, andLow Carbon EmissionsIn 2023, the launch of Anker Prime 140W 6-in-1 USB-C Charging Hub set a trend in the industry with its ultra-slim design andcompact size. The product employs Power Integrations' cutting-edge GaN technology, which upgrades the power capacityfrom 100W to 140W while maintaining the original casing size. This design significantly improves the power efficiency ratioand reduces users' reliance on multiple charging devices. This charging hub's high-power density delivers more energy withina compact space, helping to conserve energy. The unique innovative stacking design and pop-up sockets, with a thicknessof only 0.7 inches, greatly saves on space usage. This product was honored with the CES Innovation Award in January 2024,which not only affirmed its product innovation and outstanding performance, but also served as international recognition ofAnker's efforts in the field of environmental protection.

The newly announced SoloCam S340 featuresa detachable solar panel design. The solarpanel can be attached to the device's baseor positioned several feet from the camera'slocation using an extension cable to optimizesunlight exposure.Many eufy Security cameras are powered bysolar panels, with advanced technology thatachieves up to 25% photovoltaic conversionefficiency, surpassing other solar batteries byapproximately 2-5%. This efficient use of cleanenergy ensures sustainable monitoring, reducesthe number of charges needed, extends thecamera's life, and decreases carbon emissions.All current battery-powered camera productssupport external solar panel accessories.

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2023ANKER INNOVATIONSSUSTAINABILITY REPORT

eufy Robotic Vacuum Cleaners: Reducing Idle Energy Consumption andDecreasing Greenhouse Gas Emissions

Throughout the product's life cycle, the roboticvacuum cleaner mostly stays on the docking stationor charging dock in standby mode. To reduce energyusage during standby, we have implemented measuresin product design to minimize power from wall outletsand lower greenhouse gas emissions. Our roboticvacuum cleaners are certified to meet energy efficiencystandards such as the US CEC, EU ERP, and CanadaNRCan, ensuring low energy consumption even whenthe robot is on the docking station or charging dock foras long as 24 hours.

eufy Smart Lock: Reducing ProductWeight to Lower Carbon EmissionsDuring TransportationOur eufy Video Smart Lock S330 model has upgradedto E330 by optimizing the size and materials. Wereplaced the heavier zinc alloy front panel with a lighteraluminum alloy and combined this with aestheticenhancements. This resulted in a weight reductionof approximately 200 grams and a 21% decrease involume. These changes effectively reduced carbonemissions during transportation.

eufy X10 Pro Omni

Green Materials

Anker Innovations continuously promotes innovation in eco-friendly materials by exploring the use ofrenewable, biodegradable, and recyclable materials in products. By integrating green material conceptsinto the product development process, we aim to reduce resource consumption and environmentalpollution while enhancing the consumer experience.2023 Eco-Innovation MaterialApplicationsCase 1: Renewable Materials

Anker's eco-friendly cable (Anker 541 Bio-Based /Bio-Based Nylon) is made with bio-based materialsextracted from plants, reducing the dependency onpetroleum-based plastics by up to 40%.

Case 2: Product Case Utilizing Recycled Materials (PCR Material)

Recycled materials, also known as Post-Consumer Recycled (PCR) materials, are waste materials generated aftercirculation, consumption, and use. Through physical or chemical recycling processes, these materials can berestored to performance levels similar to the original materials. The recycled resources can then be reintroducedinto the production cycle as valuable industrial raw materials. For example, the use of recycled plasticssignificantly reduces the dependence on virgin plastics, effectively achieving the regeneration and recycling ofresources, which is of great importance for promoting the development of a circular economy.In September 2023, Anker released new products including charging plugs, power banks, and power strips, all ofwhich feature housings made from recycled plastics. This initiative has significantly reduced the use of disposableplastics, making a practical contribution to the advancement of the circular economy.

Green Materials Initiatives for 2024 and Beyond

The company aims to launch a series of products made with eco-friendly materials andgradually expand their use across all brands and product lines over the next few years.Through the implementation of a pre-research technology management approach, thecompany aims to simultaneously develop and validate a range of eco-friendly materials toreduce carbon emissions.

Product LevelMechanism Level

In September 2023, Anker introduced new products utilizing Post-Consumer Recycled (PCR) materials.

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Green PackagingSustainable development has become a global consensus. In 2023, we continued to innovate fromdesign to manufacturing processes, using more eco-friendly packaging materials, reducing packagingwaste, and promoting the recycling of packaging materials to minimize environmental impact. From ESGpackaging strategies and design solutions to the implementation of processes, every detail is infusedwith our respect to the planet.

Continuous Practice of the Green Packaging Concept

Recycled

ReduceRecovery

Degradable

Reduce

Degradable

Design For SustainabilityDFS

RecyclableRecycled

Recovery

Recyclable

"4R1D" Design Concept

Recyclable packagingmaterials used inpackaging designe

The "Paperless Manual Initiative" isexpected to reduce paper materialsby about

tons

Our 2023 Green Packaging Initiatives

? Reduce the use of plastic in new product packaging and work toward a "zero" plastic goal.We have progressively reduced the use of single-use plastics in Anker's new packaging for portable chargingaccessories. The packaging trays are designed to contain up to 50% R-PET

[1], and for the Nano series, we havefurther eliminated the use of plastic. By optimizing the cushioning structure, we have replaced plastic blistertrays with fully paper-based tray structures, CPE bags with protective films, and used degradable virgin wood pulpsealing stickers instead of PP sealing stickers to achieve the goal of "zero" plastic packaging

[2]. For the soundcoreheadphone category, we have optimized the packaging structure and adjusted the dimensions to reduce the use ofdisposable plastics. We are also continuously upgrading to molded pulp tray structures and replacing PP stickers withdegradable wood pulp stickers, achieving a 96% plastic reduction in packaging for all new products.

[1] R-PET stands for Recycled Polyethylene Terephthalate, which is a recycled material made by collecting and reprocessing PET.[2] Refers to materials that do not contain coatings or adhesives.

? Lightweight packaging and "Paperless Manual Initiative" campaign are committed to reduce waste.Lightweight design serves as a "catalyst," committing our brands to significantly reduce the use of packagingmaterials by optimizing packaging structures, adjusting dimensions, and implementing minimalist packagingdesigns. Meanwhile, we have also launched a "Paperless Manual Initiative" campaign. By removing paper manualsin packaging and streamlining the contents of the mandatory safety sheets or quick start guides, we have reducedthe use of paper materials by at least 60%. This initiative is expected to reduce the use of approximately 240 metrictons of paper materials in 2024, achieving optimal material efficiency and reducing the environmental impact of thepackaging lifecycle, thereby conserving natural resources.

"Paperless Manual Initiative" Campaign

Sustainable design, as a concept, constantly challenges us torethink and iterate our packaging design strategies. In the fiscalyear 2023, we adhered to the "4R1D" principle of sustainabledesign and persistently implemented eco-friendly measures. Ankerhas expanded the use of Recycled and Degradable materialsin packaging design, with more new products using recoverymaterials. In addition, we have significantly reduced the use ofpackaging materials by minimizing package size, simplifying thedesign process, and removing paper manuals. At the same time,100% of our packaging materials are recyclable.

100%

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? Expand the use of recycled materials and renewable materials and further reduce the impact of

harmful substances.eufy's packaging has significantly reduced the use of EPE and plastic blister packs, replacing them

with paper cards and recycled materials. Approximately 99% of our packaging uses recycled fiber

derived from recycled waste paper. This method reduces raw material consumption. For new products

in other categories, such as chargers, headphones and robotic vacuums, we use paper certified by the

Forest Stewardship Council (FSC). In addition, we have transitioned to using environmentally friendly

soy-based inks instead of petroleum-based inks for new product packaging, eliminating volatile

organic compounds (VOCs) and further reducing the environmental impact of harmful substances.

Use of FSC-Certified Paper Materials

Going forward, we plan to accelerate our efforts to reduce plastic use and to expand the use of renewablematerials in 2024. Initiatives to introduce plastic-free packaging will begin in categories such as portablechargers and headphones. Since 2022, we have set annual plastic reduction plans and targets, aimingto eliminate plastic from the packaging of products on sale by 2027. This commitment is part of ourcontribution to conserving the Earth's resources and reducing pollution.

eufy Robotic Vacuum Cleaner Packaging Contains Recycled

Materials

Use of Environmentally Friendly Soy Ink

?Used FSC-certified paper and eco-friendly soy ink for portable chargingproducts.?Optimized packaging design to reduce plastic and weight.?Reduced the use of blister trays in favor of paper cards and paper-plasticfor some key product packaging.?Used FSC-certified paper and eco-friendly soy ink for over 50% of newproducts.?The "Paperless Manual Initiative" campaign saved at least 60% of papermaterials.?Key products in portable charging and headphone categories haveachieved over 97% of plastic removal packaging.

Use FSC-certified paper and eco-friendly soy ink for 90% of new productpackaging.?Minimize package structure design to further reduce material andweight.?Use "zero" plastic packaging for some key products.

?Use FSC-certified paper and eco-friendly soy ink for 100% of newproducts.?Use more paper cards and paper-plastic and less plastic pallets.?Use "zero" plastic packaging for new products in the portable chargingand headphone categories.

?Use FSC-certified paper and eco-friendly soy ink for 100% of newproducts.?Use "zero" plastic packaging for all new products. Achieve 0% plasticpackaging by the end of 2026.

?Use FSC-certified paper and eco-friendly soy ink for 100% of newproducts.?Packaging is completely "zero" plastic.

Measures for Plastic Reduction

"Zero" Plastic Goals and Actions:

2022

2023

2024

2025

2026

2027

25%

19%

15%

11%

Percentage of Packaging Containing Plastic

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Green AchievementsReduction Certification by Carbon TrustSince 2022, Anker Innovations has undertaken comprehensive lifecycle carbon footprint assessmentsfor Anker charging products, formulating proactive and robust plans for emissions reduction. We havepersistently strived to lower the carbon emissions associated with our products while actively supportingclimate initiatives, including the generation of renewable energy. In 2023, 91 charging products wereawarded the Reductions Certification Label by the Carbon Trust, a prestigious global organizationspecializing in low-carbon consulting and certification. Furthermore, these products have been awardedthe Climate Pledge Friendly badge by Amazon, and were recommended as sustainable choices onAmazon.

UL ECOLOGOProducts certified by UL ECOLOGO have been verified toreduce environmental and health impacts. This optional,eco-friendly certification shows that products meet toughstandards after thorough testing and auditing. In 2023, atotal of 15 Anker charging products and mobile accessoriessuccessively received the UL ECOLOGO certificate.

TCO CertifiedTCO Certified is a globally recognized sustainability certificationfor IT products. It includes up-to-date standards, third-partyverification, and a framework for continuous improvement,with the goal of achieving real and lasting sustainability. Thecertification covers standards for reducing harmful substances,enhancing recyclability, upholding social responsibility, andprotecting the environment. As of 2023, Anker Innovations hashad five headphone products that have been awarded the TCOCertified certificate.Carbon Neutral Certified by SCS and Climate Neutral by ClimatePartner

Anker Innovations has developed a roadmap for continuously reducing the carbon emissions of Ankercharging products and soundcore audio products based on carbon footprint assessments. The companyalso purchased additional carbon offsets to compensate for remaining carbon emissions. These creditssupport climate projects such as biomass power generation and forestry carbon sequestration initiatives,demonstrating the company's deep commitment to the global effort to combat climate change. In 2023,a total of 189 of the Anker and soundcore products received Carbon Neutral Certification by SCS GlobalServices and Climate Neutral Certification by ClimatePartner.

Amazon Climate Pledge

Friendly Badge

Examples of Carbon Trust Reduction Certifications

Example of Carbon Neutral CertificationExample of Climate Neutral Certification

Example of UL ECOLOGO

Example of TCO CertificationAmazon Certified Pre-Owned ProgramThe Amazon Certified Pre-Owned Program assists consumers in identifying products that meet rigorous standards forcleanliness, quality, and functionality. In 2023, over 141 product models from various categories received certification,with approximately 928,000 used products being refurbished, repaired and resold, thus extending their lifecycle andreducing resource consumption.

Amazon Pre-Owned Certified BadgeExamples of Amazon Certified Pre-Owned Products: Anker soundcore

Bluetooth Stereo Speaker (Renewed) and Anker Life Q30 Hybrid Active Noise

Cancelling Headphones (Renewed)

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R&D Innovation StrengthAnker Innovations established a Research and Development (R&D) center in 2012 and invests extensively in R&D eachyear. In 2023, the company invested 1414 million CNY in R&D, with 1,918 R&D employees accounting for nearly half of allemployees. Many of our senior R&D employees are from well-known technology companies or top universities around theworld.

Highlight Technological Innovations

Strengthening Technological and ProductInnovation

Anker Innovations puts customers first to generate value for users and is committed to leveragingtechnology to drive the industry's progress. We strengthen our knowledge, explore scenarios that improveusers' lives, prioritize product quality, and reinforce our reputation with technological innovation. We aimto be a leading product and service supplier in the categories of charging accessories, energy storage,IoT smart devices, audio, and house cleaning, as well as to deliver positive societal outcomes throughconstant innovation.Process, Architecture, and Methodology of Technological InnovationAnker Innovations adopts a dual-wheel drive innovation model of "Technology + Scenario", generatinginnovation in technology, excavating and creating user needs, and changing users' life scenarios.

Intellectual Property3,163

IntellectualProperties1,61575PatentsSoftware Copyrights

Registered Trademarks1,473

R&D Investment

1081 million CNY1414 million CNY

soundcore Liberty Series Coaxial Dual Driver Earbuds

To deliver studio-quality sound in true wireless earbuds, soundcore created the Astria Coaxial AcousticArchitecture (ACAA), a unique technology that surpasses existing headphone drivers in sound quality. ACAA is agroundbreaking coaxial driver technology that integrates a dynamic driver and a customized Knowles-balancedarmature driver into a single body. Since ACAA's launch, soundcore has continued to upgrade the technology fornew flagship products in the Liberty series.Sound is delivered directly to consumers' ears with no interference between the treble and bass. Thesoundscape is expansive, and every detail within the music is delivered with precision accuracy. soundcoretrue wireless earbuds with ACAA driver technology have been recommended by 20 GRAMMY-winning musicproducers and 10 GRAMMY-winning artists.

Note: Patents statistics include Invention Patents, Utility

Model Patents, and Design Patents.

Technology

-driven

Dual-Wheel DrivenInnovation Model

Empower

4K Ultra HD solar-powered battery camera

Multiple innovative

categoriesFunctional value ofcategories

Highdefinition

Long batterylife

¡¡

GaN ChargerPowerLineCoaxial dual driver earbuds

¡¡

Drive

Scenario-driven

778 million CNY567 million CNY

2023202220212020

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AI Active Noise Cancellation TechnologyUsing soundcore Liberty series as an example, although we can adjust for excellent Active NoiseCancellation (ANC) effects, the actual noise reduction may deviate from expectations due toindividual ear shape differences, wearing status, and varying environmental noise levels. Thisis a common challenge faced by ANC technology. To address this issue, we have innovativelydeveloped a full-spectrum real-time adaptive ANC algorithm. This groundbreaking technologyenhances noise cancellation capability by more than 50%

[1]in real-time, particularly excellingin the treatment of mid-to-high-frequency noises that traditional ANC struggles to eliminate.Combined with AI scene recognition technology, our algorithm can automatically optimize ANCsettings based on different noise environments, wearing styles, and user ear shapes, ensuringthe best noise cancellation experience under any circ*mstances. Currently, our technology is atan excellent level within the industry.

Ensuring Product Quality and Safety

Quality and Environmental Management System Training CasesElectro-Static Discharge Training Cases

[1] Data is based on a comparison with the market version of soundcore liberty 4 NC.

Ensuring Product Quality and SafetyThe company implements the quality strategy of "user experience-oriented, driven by system engineering+ big data + AI as the foundation, to build a comprehensive quality management system," continuouslyoptimizing and improving the quality organizational structure, and clarifying the responsibilities andauthorities of quality management. With the quality philosophy of "customer-oriented, data-driven,prevention-focused, and continuous improvement," the company continuously enhances product qualityand safety.

Improving Product Quality and SafetyThe company has established a Quality Management Center responsible for monitoring the market and processquality performance of each product line, as well as the development of platform capabilities. In collaboration withthe quality departments of each product line, the center implements a quality management model that emphasizesoperational quality, with "Quality Representatives" as the main focus under the Integrated Product Development (IPD)framework. The company upholds a quality and environmental management system, complying with ISO 9001:2015 andISO 14001:2015 certifications. Aligning with these systems, the company engages in continuous improvement of itsmanagement practices, aiming to elevate the level of quality management.The company adopts IPD to manage the lifecycle of its products, ensuring strict compliance with legal regulations suchas theEuropean Union's Low Voltage Directive 2014/35/EU, ROHS Directive (Restriction of Hazardous Substances)2011/65/EU, andElectromagnetic Compatibility Directive 2014/30/EU, as well as various standards related to its ownproducts, from product design, production, to inspection stages. The company effectively manages non-conformingproducts, investigates the causes, and continuously improves through robust customer feedback and complainthandling mechanisms. By leveraging these strategies and its quality management systems, the company is committedto perpetual enhancement of product and service quality.The company carries out random inspections on products from the factory, assessing aspects like orders, functions,appearance, packaging, market certification, and customer demands. Products failing these inspections are returned forcorrective action to guarantee quality standards before market release.In addressing quality issues in processes and the market, the company has established processes including "QualityAccident Layered and Graded Processing Procedure", "Crisis Management Process", and "Product Recall Process",ensuring that major quality issues in the market and processes can be rapidly responded to. Concurrently, thecompany performs in-depth analyses of root causes, develops both immediate and long-term solutions, conductstimely assessments, assigns accountability for quality incidents, and enforces a system of rewards and penalties. Thisstructured approach is designed to prevent recurrence of issues.

Quality TrainingThe company places great emphasis on enhancing the skills and management capabilities of quality personnel. In 2023,the company organized 63 special empowerment events for quality personnel and developed 21 in-house quality trainingcourses to enhance the professional and general abilities of quality personnel.

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Sustainable Supply Chain Management

Supply Chain Lifecycle ManagementAnker Innovations continuously monitors domestic and international trends in sustainable supplychain management, identifying key subjects within the supply chain. We focus on corporate socialresponsibility, environmental performance, low-carbon and recyclable products, and responsibleprocurement of minerals, integrating these aspects progressively into our supply chain lifecyclemanagement.To help organize this approach, Anker Innovations has developed comprehensive supplier lifecyclemanagement standards, which encompass a suite of over 50 procurement process documents. Theseinclude the "Management of Supplier Certification Process", the "Management of Supplier SelectionProcess", the "Management of Supplier Performance Process", and the "Management of Supplier EOLProcess". Each stage incorporates ESG management principles to ensure consistency and integrationthroughout the lifecycle.

Anker Innovations Procurement Management Process System Framework

Strict Entry RequirementsWe set strict entry thresholds for our suppliers based on customer and industry requirements, guided by internationalstandards such as SA 8000, ISO 14001, ISO 45001, OHSAS 18001, ISO 50001, and energy conservation andenvironmental protection principles. We encourage suppliers to align with ESG system requirements by consideringtheir ESG strategies during the selection process, placing considerable emphasis on excluding suppliers with significantnegative events.The "Management of Supplier Certification Process" involves a comprehensive and professional analysis by ourassessment team. Before becoming an official supplier, they must sign a series of contracts and compliancedocuments, including "Procurement Framework Agreement", "Integrity Joint Construction Agreement", "Supplier QualityAssurance Agreement", and "Supplier Compliance Commitment Letter"."Anker Innovations Supplier Compliance Code of Conduct" (hereinafter referred to as "Code of Conduct")The "Anker Innovations Supplier Code of Conduct" outlines our expectations and requirements for human rights,labor benefits, health and safety, protection of environment and natural resources, conflict minerals, business ethics,and sustainability management systems. We collaborate closely with internal and external experts to assess andupdate the "Code of Conduct" annually to address emerging risks. We are also developing the "Supplier SustainabilityHandbook"(hereinafter referred to as "the Handbook") to communicate our sustainability requirements and managementapproaches to suppliers. We work with stakeholders to ensure our "Code of Conduct" and "Handbook" align withinternationally recognized standards.In 2023, we have upgraded our supplier management system to ensure 100% of suppliers sign compliance lettersthrough process control.

Performance Management and Evaluation Mechanism

Before officially onboarding new suppliers, they must undergo a series of certifications, including a sustainability systemevaluation, which has veto power in the evaluation process.Anker Innovations has established an extensive supplier grading and examination system, evaluating suppliers acrosssix categories: technology, quality, delivery, responsiveness, commercial competitiveness, and sustainability. Wecategorize suppliers according to the "Supplier Classification Management Process" and apply different standardsand policies. By integrating comprehensive assessments into our quarterly reviews, we inform our procurement andselection strategies to support the company's overall goals. Our objective is to converge towards preferred suppliers andimprove supplier fitness continuously.For suppliers who consistently underperform, we initiate the EOL process and, in severe cases, may consider terminatingthe business. Suppliers involved in ethical violations, non-compliance, or integrity breaches are subjected to stringentreview and are blacklisted to ensure compliance with our EOL process.

Supplier Lifecycle Management

Demand andSourcing

SupplierCertification andSelection

SupplierPerformanceManagement

Supplier RatingManagement

Supplier Rewards& Penalties, andEOL

Objective: To enhance the competitive advantage of corporate procurement with high quality,

safety, timeliness, and efficiency.

Supplier Daily Management(Information Changes, Annual Review, Rewards and Penalties, Contract and Agreement)

Supplier Relationship Management(Strategic Supplier Relationship Management, QBR System, Mutual Visit Mechanism)

Industrial Chain Healthy Management(Supplier Risks, CSR Risks, Financial Risks)

Supplier Management ManualOrganizational and Operational Rules (Job Responsibilities, Authorization Management, Document

Management, Process & IT Management)

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The supply chain department organizes regular training, internal control seminars, and presentations, with

integrity and anti-corruption being one of the key topics

Anker Innovations is committed to advancing human and labor rights within the supply chain, embeddingthese requirements in supplier sourcing, onboarding, cooperation, performance assessment, and EOLprocesses to ensure compliance and continuous improvement.We use the "Supplier Social Responsibility Compliance Assessment Questionnaire" to gain insightsinto suppliers' corporate social responsibility performance. To ensure comprehensive and accurateassessments, we continuously refine the content based on international standards and industryguidelines and optimize the on-site assessment process. Steps include opening meetings, documentreviews, site tours, employee interviews, closing meetings, report signing, and corrective action planreports. Through this multi-dimensional assessment approach, we thoroughly evaluate suppliers'sustainability performance.We pay particular attention to significant violations, such as child labor, forced labor, commercialdishonesty, and fraudulent documentation, and we stay abreast of international corporate socialresponsibility developments, refining our zero-tolerance policy and clearly outlining non-negotiable issuesfor suppliers.

Anker Innovations is acutely aware of the potential labor, human rights, environment, bribery, andgovernance issues associated with mineral extraction, trade, and transportation. We place a highpriority on these matters and are committed to adhering to responsible mineral initiatives such as theResponsible Minerals Initiative (RMI), and the OECD's "Due Diligence Guidance for Responsible SupplyChains of Minerals from Conflict-Affected and High-Risk Areas" (the " OECD's Minerals Due DiligenceGuidance"). We respect human rights, do not contribute to conflict, and take corporate responsibilityseriously in our procurement and supply chain practices, adhering to social ethics. In line with thesecommitments, we pledge not to directly or indirectly use conflict minerals and have established a"Conflict Minerals Statement", which has been widely disseminated to all stakeholders. The content of thestatement is also accessible on our company website.In 2023, we have completed a survey on the use of conflict minerals with the first batch of 30 suppliersand collected information on their responsible mineral procurement management systems. Additionally,we have conducted in-depth investigations of eight suppliers using 3TG and cobalt and their upstreamsupply chains, including 225 smelters, and encouraged these smelters to apply for and obtain responsiblemineral compliance certification to ensure the transparency, traceability, and compliance of our supplychain.

Human and Labor rights

Responsible Procurement of Minerals

Supplier Integrity ManagementAnker Innovations emphasizes the highest standards of integrity in all business interactions and requires suppliers whocollaborate with us to adopt a zero-tolerance policy against any form of bribery, corruption, extortion, and embezzlement.All business transactions must be transparent and accurately reflected in supplier business accounts and records. Weimplement supervision and reinforcement procedures to ensure compliance with anti-corruption laws and regulations.Anker Innovations continuously improves an efficient and rigorous procurement internal control compliancemanagement system, establishing a framework of pre-emptive prevention, in-process inspection, and post-audit tojointly address issues from both a procedural and ideological perspective, thereby minimizing the risk of supplier briberyand corruption.

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Supply Chain Climate ActionAnker Innovations actively engages in energy conservation and emissions reduction within its supply chain, exploringand implementing measures to reduce energy consumption and emissions. We are dedicated to ongoing improvementsin logistics and warehousing to support our commitment to environmental protection.When selecting suppliers, we prioritize proximity to minimize energy loss from long-distance transportation, thusimproving transportation efficiency. We also pursue partnerships with low-carbon, environmentally friendly shippingcompanies like Maersk and Evergreen Marine Corporation. In addition, the company is accelerating the replacement oftraditional forklifts with electric and environmentally friendly models. For example, at the Anker Innovations warehousein Dongguan, China, more than 30 electric forklifts were put into use in 2023, accounting for more than 90% of totalforklifts.In terms of logistics and transportation, we have replaced some of our sea-road (where the end transportation is bytruck) solutions with sea-rail (where the end transportation is by rail) options to reduce carbon dioxide emissions causedby truck fuel consumption. For shipments from China to our overseas warehouse in Chicago, the proportion of sea-railsolutions replacing sea-road solutions will be approximately 15% in 2023, with plans to increase this number to 30% by2024.Looking ahead to 2024, we will continue our trials and efforts in this area to make a meaningful contribution to thedevelopment of a low-carbon, sustainable supply chain.

2023 SME ContractualOverdue Payment

0 Incidents

Equal Treatment for Small and Medium Enterprises

Supply Chain SecurityAnker Innovations prioritizes supply chain security to ensure a steady and timely supply of materials,accurate order fulfillment, and efficient delivery. We've established a comprehensive set of standards andsystems for a resilient and dependable supply chain framework. This includes:

? Regular industry chain insights focused on long-term prevention and preparedness. Thisincludes, but is not limited to, supply market conditions (including commodity price trends),the supply situation at the upstream end of the industry chain, and the status of industrychain shutdowns and mergence event.

? A well-established internal supply and demand coordination mechanism, which includes aBig Planning Loop (demand forecast review by the S&OP Committee) and a Small PlanningLoop (from demand plan to procurement execution), ensures a balance between supply anddemand through regular communication between front-end and back-end teams.

? To strengthen upstream and downstream cooperation and enhance business continuity

risk management, we invested in nine key product cooperation suppliers by the end of 2023.This has enabled us to build a strong industrial synergy with our supplier partners.

? Based on these insights and identified risks, we proactively develop risk reserve plans atvarious levels, such as long-term PO, key component reserves and strategic reserves. Weprepare for major unexpected events with early warning systems and contingency plans toensure supply security while keeping cost stable.

? Through refined operations of customer order commitment and fulfillment, we accurately

identify potential risks that would exist in the customer order delivery process and takepreventive measures to ensure high-quality customer order execution.

In 2023, Anker Innovations adhered to fair contractual terms withsmall and medium-sized enterprises, ensuring that due paymentswere met and overdue accounts were managed prudently. By theend of 2023, the accounts payable (including notes payable) of thecompany amounted to 1.553 billion CNY, accounting for 12.15% ofthe total assets. We commit to upholding financial responsibility,maintaining strong partnerships with small and medium-sizedbusinesses, and ensuring fair treatment for all partners.

Green and Low-CarbonDevelopment

The concept of sustainable development has reshapedcorporate development models, with companiesincreasingly shifting from a sole focus on financial growthto a multidimensional value creation encompassingeconomic, social and ecological aspects. Led by theconcept of sustainable development, Anker Innovationsstrives to maximize the value creation for stakeholders.To achieve green, low-carbon and benign development,we actively participate in addressing climate change, andstrengthen the management of the environmental impactfrom production and operation by intensive management.

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Addressing Climate ChangeCoping with climate change is a global challenge. As a responsible corporation, Anker Innovations seesclimate change as a core element of ESG management. The ESG Special Committee is responsiblefor formulating and making decision on strategies and targets related to climate change. The ESGOffice develops corresponding implementation paths and management plans based on the company'sstrategies and targets related to climate change. The ESG Taskforce is in charge of implementing dailymeasures to tackle climate change.Anker Innovations attaches great importance to the impacts brought by climate change. We proactivelyidentify risks associated with climate change and develop response plans so as to effectively enhancethe company's climate resilience, as well as manage and prevent climate risks.ClimateRisks

Risk TypeRisk Description

Analysis of Potential Impact ofRisk on Business

Response Measures by Anker

Innovations

PhysicalRisks

Acute Risk

Climate changehas led to a highincidence ofextreme weather,such as typhoons,blizzards andrainstorms

? Extreme weather may damageoffice buildings (e.g., roofcollapses, ground damp,window damage), resulting inproperty loss.? Extreme weather may haveimpact on the operation of thecompany's core office sites(Beijing/Changsha workplaces- blizzard and heavy rain,Shenzhen workplace - typhoonand rainstorms), affectingemployee safety in commuting,and potentially causingunexpected financial losses.? Extreme weather may affectcommunication networks anddevices, leading to restrictedonline business operations anddecreased business income.

? We closely monitor official reportsof extreme weather. When thebuidling damage occurs, we willinitiate emergency repairs underthe condition that personnel safetyare secured. We issue emergencynotices and activate emergencyplans for affected office sites andlocal employees promptly. Wedeploy alternative solutions andemergency plans for damagedcommunication networks anddevices.? We provide employees with remotework options, flexible clock-inmechanisms, and timely reportingsystems to protect their physicalhealth and safety as well asensuring business continuity.? Extreme weather may affectsupply chain and logisticsactivities, affecting productdelivery to customers, resulting inboth economic and reputationaldamage.

? We closely monitor official reportsof extreme weather in variousregions and exchange informationof delivery risks to customers inadvance.? We establish emergency plansfor supply chain disruptions, tobe activated in the event of anextreme situation to mitigatelosses

ChronicRisk

Averagetemperaturesrise globally,which directlycauses rising sealevel, increasingextreme weathersand growingdisease incidencerate.

? Rising sea levels may affectthe operation of coastal officesites (e.g., Shenzhen), causingadditional costs due to officerelocation.? High temperatures or extremecold weather may affect thehealth of employees, which maylead to lower work efficiencyand reduced operationaleffectiveness.

? Extreme hot and cold weatherwill increase the cooling andheating energy supply atoperation sites, leading toincreased production costs.? Humid weather may affect theperformance of the productstock in the warehouse, leadingto a deterioration in productquality, resulting in financiallosses and reputational damage.? Extreme high and lowtemperatures may affect thesafety of transporting and usingportable chargers

? We closely monitor geographic and

geomorphic changes at operationsites, incorporating climate riskas one of the factors in the siteselection.

? We pay close attention toemployee health. During the daysof extreme weather, we will timelyprovide necessary medicines andneeded supplies.

? We flexibly control cooling and

heating systems based on weatherconditions, and offer employeesflexible working options.

? We frequently monitor warehouseconditions. During the days ofextreme weather, we will payspecial attention to productstorage, conduct spot checkson product quality, and makeemergency plans.? We constantly improve the CCCcertification of products, adjustthe transport plan of products inextreme weather, pay attention tothe potential change of productperformance in extreme weatherand explain the correct usespecification to consumers.

Typhoon Message Alert and Workshifting Notification

ClimateRisks

Risk TypeRisk Description

Analysis of Potential Impact of Risk on

Business

Response Measures by Anker Innovations

TransitionRisks

Policy andRegulatoryRisk

ESG informationdisclosurerequirements havea tendency to bestrict

? The Shanghai, Shenzhen, and HongKong Stock Exchanges have issued ESGinformation disclosure guidelines for listedcompanies. The guidelines ask for strictclimate-related information disclosure.

? We monitor the ESG information disclosureguidelines issued by the listed stockexchanges and proactively comply with theguidelines.GHG emissionshave been underthe strict control.

? China's "Dual Carbon" goals requireenterprises to undergo a green and low-carbon transition, thereby increasingoperational costs.? The new EU battery regulation requires thecarbon footprint accounting for portablebatteries, which may increase operationalcosts.

? We establish a scientific and effectiveenergy consumption managementmechanism, strengthen energy usemanagement, and continuously carry outenergy-saving and consumption-reducingmeasures.? We monitor green and low-carbon relatedpolicies and regulations in overseas marketsand meet the compliance requirements.Market Risk

Customerdemand for low-carbon productsincreases.

? Consumers prefer green and low-carbon products. Products without greenand low-carbon features will lose theircompetitiveness in the future market.

? We actively layout our plan on R&D and

application of green and low-carbontechnology.TechnologyRisk

Green and low-carbon technologycan become first-mover advantage.

? Guiding the development of green and low-carbon technology is one of the importantpathways to achieve the national "DualCarbon" goals. Failure to focus on anddeploy green and low-carbon technologyin products may result in the loss oftechnological first-mover advantage.

? We actively collect market demands forgreen and low-carbon products, capturemarket opportunities, and take the lead indeploying R&D in green and low-carbontechnology.ReputationRisk

Climate-relatednegative eventsincreasinglybecome a focus ofstakeholders.

? High carbon emissions and energyconsumption in the company's productionprocesses may cause long-term negativeimpact on the company's reputation.

? We highly put value on energy consumptionand GHG emissions during the productionprocess. We will continuously optimizeproduction processes, and improve ourenergy efficiency in production.

Notice: Preparing to Return Home Before Typhoon "Sura" Landing

Climate-related risk identification and response of Anker Innovations

5657

Waste ManagementAnker Innovations strictly adheres to theLaw of the PRC on the Prevention and Control of EnvironmentPollution Caused by Solid Wastes, rigorously controls the discharge of waste, and manages hazardousand non-hazardous waste separately to ensure the safe and orderly disposal of waste. For recyclablewaste, Anker Innovations follows the principles of the circular economy and provides these waste tothird-party partners for recycling. During the reporting period, Anker Innovations did not experience anysignificant environmental pollution incidents that violated laws and regulations.Anker Innovations values the protection of natural resources and reduces waste at the source. Thecompany advocates for paperless offices, with office printers set to double-sided printing by default toavoid paper waste. Besides, the company has taken action such as replacing bottled water with directdrinking water, using hand dryers instead of paper towels, and limiting the use of tissue paper to reducewaste emission. In 2023, the company saved a total of 15,000 plastic bottles and 14.4 million sheetsof tissue paper, effectively reducing the consumption of natural resources like wood and emissions ofpollutants like plastic.Anker Innovations employs waste classification management approach. The company's non-hazardouswaste mainly consists of office garbage and kitchen waste from various regional workplaces. Compliedwith the waste classification management requirements of each city, office garbage and kitchen wasteare collected and transported to the Industrial Park's waste transfer station by designated personnel,where they are recycled by a professional third-party recycling company contracted by the propertymanagement entity. The company's hazardous waste primarily includes electronic waste generatedfrom offices, such as monitors, desktops, laptops, and printers. According to the internal "IT Fixed AssetManagement Process" and "Anker Innovations Fixed Assets Management System", the company regularlyconducts inventory and disposal of office electronic waste. For recyclable electronic waste, AnkerInnovations provides them to third-party suppliers for recycling based on the principles of safe circulation;for electronic waste without recycling value, it is disposed safely and reasonably. During the reportingperiod, the total amount of hazardous waste emissions decreased by 27.67% compared to the previousyear.

The Number of Plastic BottlesSaved

Approximately

15,000

Bottles

The Amount of ElectronicWaste Recycled in the Offices

Pieces

The Number of SignificantEnvironmental Pollution Incidents

Incidents

The Percentage of Reduction inHazardous Waste Emissions Year-on-Year

27.67%

MetricsUnit2023

Non-Hazardous Waste

[1]

Office Wastetons206.70Kitchen Wastetons23.80Electronic Waste - DesktopsPieces54Electronic Waste - MonitorsPieces69Electronic Waste - LaptopsPieces773Total Non-Hazardous WasteTons232.76Hazardous Waste

[2]

Hazardous Waste - Ink CartridgesBoxes50Hazardous Waste - Toner CartridgesUnits8Total Hazardous WasteTons0.05Waste Emission Intensity

Non-Hazardous Waste Emission Intensity

Tons per 100million yuan

1.33

Hazardous Waste Emission Intensity

Tons per 100million yuan

0.0003

Waste Recycling

[3]

Amount of Electronic Waste Recycling Pieces896Notes:

[1] The statistics for office and kitchen waste include data from Shenzhen, Guangzhou, Changsha, and Suzhou offices, while thestatistics for electronic waste include data from the Shenzhen and Changsha offices. The amount of office waste generatedwas not recorded in the year 2022.[2] The statistics for hazardous waste include data from Shenzhen, Changsha, and Guangzhou offices.[3] The statistics for waste recycling include data from Shenzhen and Changsha offices.

Green and Low-Carbon OperationAnker Innovations strictly adheres to theEnvironmental Protection Law of the PRC, theAtmospheric Pollution Preventionand Control Law of the PRCand theWater Pollution Prevention and Control Law of the PRC. We actively practiceenvironmental protection, improve resource usage efficiency, and integrate green and low-carbon notions into everyaspect of daily operations.

Energy Management

In 2023, Anker Innovations strengthened its energy management initiatives by effectively improving energy efficiencythrough intelligent devices, with significant energy-saving performance. Compared to 2022, the company significantlyincreased the utilization of clean energy and will continue to enrich the energy structure in the future, increasing theproportion of clean energy to help achieve "Dual Carbon" goals.The company achieved good water saving performance by the end of the year, with a 30% surplus in water and electricityexpenses, through intelligent transformation of hardwares, daily strict control, logistical incentives to encourageemployee's behaviors, and promotion & habit formation of energy-saving.

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Air Conditioning Temperature Control ReminderFor every 2¡ãC decrease, the heat island effect increases by two points.

Let's not allow carbon dioxide to envelop our lives.

Summer

Winter

MetricsUnit2023

EnergyConsumption

[1]

Natural Gas Consumptionm

18,967.00Electricity ConsumptionkWh10,902,160.78Per Capita Electricity ConsumptionkWh/Person2,714.01Electricity Consumption per Unit ofBuilding Area

kWh/m

228.30

Total Clean Energy ConsumptionTons of Standard Coal25.23Percentage of Clean Energy Use%1.85%Direct Energy ConsumptionTons of Standard Coal25.23Indirect Energy ConsumptionTons of Standard Coal1,339.88Total Energy ConsumptionTons of Standard Coal1,365.10Energy Consumption Intensity

Tons of Standard Coal per100 Million Yuan Revenue

7.80

Note:

[1] Energy consumption statistics include data from Shenzhen, Changsha, Guangzhou, and Suzhou offices ofAnker Innovations.

Low-Carbon OperationIn addition to reducing GHG emissions through daily energy-saving measures, Anker Innovations actively promotesgreen commuting within the company and pilots carbon trading to offset carbon emissions generated by businessoperations.We encourages employees to do cycling, using public transportation or driving Electric Vehicles for daily greencommutes. During the reporting period, 83% of employees praticed green commuting

[1].

[1] According to internal statistics, approximately 17% of commuting employees travel by fuel-powered vehicles, while the restopt for green transportation methods.

Certificate of Voluntary Cancellation

Annual Carbon Offsetting Statement onthe Climate Neutriality Project

Carbon Credits68,542

tCO

Implement strict controls on the operating times and temperature settings of airconditioners in offices, and plan to apply smart temperature control devices.Set energy consumption management targets for each floor, with incentivesprovided for floors that achieve their targets.

Unified AirConditioning ControlOffice SupportIncentiveEnergy ConservationPromotion

Promote water and electricity conservation to employees, advocating for greenand low-carbon office operations.

Energy Management Initiatives

Anker Innovations piloted two carbon tradings in 2023. Thecompany has participated in the China Bijie Afforestation VCSproject and the Heilongjiang Bayan Biomass CogenerationCDM project and obtained carbon credits 68,542 tCO

e in totalto offset the carbon footprint of related products (see section

5.1.4 Green Achievements - Carbon Neutral Certified by SCS

and Climate neutral by ClimatePartner).

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2023ANKER INNOVATIONSSUSTAINABILITY REPORT

Water Conservation Poster

MetricsUnit2023

GHG Emissions

Total GHG Emissions

[1]

tons of CO

7,638.16Scope 1 Emissionstons of CO

41.01

Scope 2 Emissionstons of CO

5,762.71Scope 3 Emissions

[2]

tons of CO

1,834.44Per Capita GHG emissionstons of CO

per person1.90GHG Emissions per Unit of Building Areatons of CO

per m

0.17

Carbon CreditstCO

e68,542Notes:

[1] The statistics for GHG emissions include data from Shenzhen, Changsha, Guangzhou, and Suzhou offices ofAnker Innovations.[2] Scope 3 emissions include emissions from travel transportation, hotel accommodations, waste disposal, andsewage treatment.

Water Resource Management

Anker Innovations lays emphasis on the protection and conservation of water resources in dailyoperations. The company promotes the concept of water conservation internally through promotionalposter, cultural promotion, and other means to cultivate employees in forming good water-saving habits.Intelligent sensing devices are also installed to automatically control water usage.

Environmental and Ecological Protection

Anker Innovations values biodiversity and ecosystem protection. During the reporting period, Anker Innovations didnot engage in any business activities or select operation sites in ecologically sensitive and fragile areas under nationalprotection, for example, the ecological natural reserves.The company collaborates with internal and external stakeholders to actively conduct green charity events, aiming toenhance employee awareness of environmental protection and fulfill corporate social responsibility. In 2023, AnkerInnovations initiated a green flea market event, selling 525 items in the company. The donations collected from thisevent were given to the "One Billion Suosuo" project through the Society of Entrepreneurs and Ecology (SEE) to supportafforestation and improve local ecology. Anker Innovations' Green Community organized 580 employees to participatein green and low-carbon commuting, where they walked, ran, and cycled in various ways, accumulating approximately 22million steps, running 1,100 kilometers, and cycling 4,500 kilometers. The company's matching donations for this eventwere entirely donated to the China Green Foundation's "One Seaberry Tree Greens One Desert" project, contributing togreen ecology.

MetricsUnit2023WaterResource Use

[1]

Municipal Water Consumptiontons35,597.80Barrelled Water Consumptiontons116.00Total Water Consumptiontons35,713.80Per Capita Consumptiontons per person8.89Total Sewage Dischargetons35,713.80Note:

[1] Statistics on water use and sewage discharge include data from Shenzhen, Changsha, Guangzhou, and Suzhou offices ofAnker Innovations.

In the United States, Anker Innovations has partnered with the world's largest marine conservation organizationOceana, to provide financial and material donations in support of marine environmental research for joint action on theimprovement of the global marine environment. On June 13, 2023, Anker Innovations held an environmental protection-themed event, where Oceana's experts attended in person and delivered a speech on environmental cooperation withhigh recognition on the contributions to environmental protection made by Anker Innovations.

Donation Certificate of EnvironmentalProtection Event for Anker Innovations

Anker Innovations Campaign -Cut the "Carbon" from your "Footprint"

Integrity and Compliancein Operations

Anker Innovations is guided by ethical standardsand legal regulations, striving to ensure that ourbusiness operations comply with the highestindustry standards. We adhere to integrity inbusiness, uphold commercial ethics, regulatemarketing activities, and actively promotecompliance with privacy and information security,protecting intellectual property rights to maintainthe legality, reliability, and stability of our business.

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Employee signature ratio for the Letter of Integrity Commitment100%

Coverage Rate of Responsible Marketing Training for Sales100%

Compliance with Business Ethics

We adhere to the principles of integrity in business operations, upholding commercial ethics, andcomplying with all applicable anti-bribery, anti-corruption, and anti-unfair competition internationalconventions and laws in the locations where business is conducted. This includes theUnited NationsConvention against Corruption, theCriminal Lawand theAnti-Unfair Competition Law of the People'sRepublic of China, as well as relevant anti-bribery and anti-corruption laws, theUnited States' ForeignCorrupt Practices Act, theFederal Trade Commission Act, theUnited Kingdom's Bribery Act, and the

Competition Act, among others. The company maintains a "zero tolerance" policy towards briberyand corruption. During business operations, we uphold ethical conduct and oppose exerting improperinfluence on others, directly or indirectly, through the payment of cash, valuable goods, or any other formof bribery.The company has implemented effective measures and management systems to prevent commercialbribery, corruption, and unfair competition. We have established management systems such as the"Anker Innovations Code of Conduct" and the "Anker Innovations Supervision Management Mechanism"to ensure clean practice and lawful operations. All employees are required to thoroughly learn and complywith these requirements. We regularly organize integrity self-discipline onboarding training for all newemployees, require them to sign a "Integrity Commitment Letter", and integrate this into the onboardingprocess, with a signing ratio of 100%.The company prohibits all employees or individuals and entities representing the company from bribinggovernment officials or other third parties, directly or indirectly, in any cash or non-cash form to obtainbusiness opportunities. We have established the "Anker Innovations Integrity Reporting system" and the"Anker Innovations Integrity Reporting Reward Program". Should any such behavior occur, employeesmust refuse and report it to the company.

Conducting Responsible MarketingAnker Innovations strictly complies with relevant advertising and marketing regulations applicable inits business and operational locations, including but not limited to theAdvertising Law of the People'sRepublic of Chinaand the Section 5(a) of theFederal Trade Commission Act (FTC Act), 15 U.S.C. ¡ì 45(a)Unfair methods of competition unlawful of the United States.To further standardize marketing activities, Anker Innovations has established the "Marketing InternalControl Regulations" and "Marketing Advertising Language Compliance Guidelines" to ensure that theinformation in brand and product promotional materials is accurate and does not contain any false ormisleading actions towards consumers. At the same time, it ensures that materials and brand partnersdo not involve negative content such as p*rnography, violence, terror, etc., which could cause public panicand adverse feelings; promotional activities that leak consumer personal information are not allowed inorder to protect consumer privacy.To ensure the implementation of these standards, the company has established a process for theexternal release of promotional materials and product packaging, which includes production, review,release, and tracking. This ensures that relevant departments such as brand, product, research anddevelopment, retail, and legal dynamically review and confirm the officially released drafts to ensureprecise text and visual presentation. In cases of stock shortages or expired promotional information, theretail and brand sides will lead the communication for information correction to ensure consumers arenot misled.To further encourage employees to fully understand and follow the "Marketing Internal ControlRegulations" and "Marketing Advertising Language Compliance Guidelines", the company uses emails,corporate public account articles, offline advocacy meetings, trainings, and regular audits to ensurethat all employees regularly refresh their understanding of responsible marketing and ensure that actualbusiness operations do not cross any red lines. In 2023, the coverage rate of responsible marketingtraining for sales personnel was 100%, with an average training duration of 5.5 hours.

Training Session on Responsible Marketing - On SiteTraining Session on Responsible Marketing - Online

Strengthening Technological Ethics Governance:

AI Data and Algorithm ManagementAnker Innovations strictly adheres to technological ethical standards, proactively identifies and manages potentialethical risks in technological innovation, and is dedicated to using technology for the greater good to foster socialprogress and enhance human well-being. The company rigorously follows domestic and international laws andregulations, as well as forthcoming legislation, such as theLaw of the PRC on Scientific and Technological Progress,Opinions on Strengthening the Governance of Science and Technology Ethics, Measures for Scientific and TechnologicalEthics Review (Trial), and theEuropean Union Artificial Intelligence Act, to standardize the research and application ofartificial intelligence technology. Furthermore, Anker Innovations has established a comprehensive system for algorithmand privacy data control to ensure the compliance and ethical integrity of technology applications.Anker is committed to achieving trustworthy and controllable AI technology and algorithms:

? During the data engineering phase, pre-employment responsibility training is organized, which includes training onthe duty to filter out harmful information and discriminatory content. In the process of data collection and processing,harmful information and discriminatory content are effectively filtered through initial checks by operators andsubsequent manual reviews. This ensures a trustworthy data source for the training of algorithmic models.? During the model training phase, both subjective and objective assessments, as well as endpoint testing, are conductedto verify the fairness of the actual effects of algorithmic models. Inferior models are intercepted, and the quality ofmodel version releases is strictly controlled to ensure they meet the required standards.? During the user engagement phase, channels for user feedback are provided, enabling timely tracking and resolutionof algorithmic anomalies in user environments. This process ensures the continuous enhancement of the fairness andreliability of the algorithmic models.

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Ensuring Information and Privacy Security

Anker Innovations attaches great importance to and invests significantly in cybersecurity, data securityand privacy compliance. The company consistently implements practical and effective protectionmeasures to enhance the security of our products, aiming to earn the trust of customers.Principles of Security and Privacy ComplianceAnker Innovations adheres to privacy protection principles that align with industry best practices andintegrates them into the entire lifecycle of product and service development, including requirementsgathering, design, development, testing, release, operations, and user experience, to protect user privacyfrom infringement.

Principle of TransparencyWe use advanced security technologies thatare transparent in terms of algorithms andarchitecture. We also proactively share ourcompliance practices with users to promotetransparency.

Principle of "Zero Trust"As operators and owners of the system, weensure user data security through productdesign and other methods. The "Zero Trust"principle is embedded into the productdevelopment process.

Principle of Privacy ProtectionWe adhere to the principle that all "sensitiveand personally identifiable data", includingbut not limited to images and video streaminformation, be treated as highly sensitiveinformation. Encryption is applied to storedcontent, content in transit, and transmissionchannels.

Principle of Buckets Effect

We realize that the security level of the weakestcomponent in the system determines theoverall security level.

Principle of Full-Process Management

We are committed to integrating securitydesign throughout the entire IntegratedProduct Development (IPD) process, ensuringthat every step from planning to release isproperly handled. We manage data usinga hierarchical classification principle,implement customized security measures,enhance supervision over sensitive data, andrestrict its use. At the same time, we adhereto the principle of minimization, using only thenecessary types and amounts of data, andensuring that the purposes for use are clearand reasonable.

Principle of Regulatory ComplianceCompliance with legal requirements is afundamental aspect of ensuring securityand privacy. We strive to make our products,services, and operations comply withrelevant local laws and regulations regardingprivacy and security. When our products/services need to collect or process personalinformation, a strict compliance review mustbe completed before going live or before theiteration of new features, in accordance withthe "Privacy assessment and risk disposalform and the Online Protocol Drafting,Updating, and Launching Process".

Information and Privacy Security Training

Anker Innovations organizes an annual Information Security Awareness Month and periodically conducts informationsecurity and privacy-related training sessions for various departments. These initiatives aim to enhance the privacy andsecurity awareness of company employees.

Information Security Month EventTraining Session on Information Security

Data Privacy AchievementsAnker Innovations is committed to establishing a multidimensional and sustainable privacy compliance managementsystem. The company has developed privacy compliance operating standards and guidelines for various data collectionand processing departments. Currently, the eufy Security product series (including Camera, Doorbell, Smart Lock,and Alarm System) of Anker Innovations has obtained ISO 27001 and ISO 27701 certifications awarded by the BritishStandards Institution (BSI), as well as the U.S. TRUSTe certification. Shenzhen Hai Yi Zhi Xin Technology Co., Ltd. hasalso obtained the TRUSTe enterprise certification.

eufy Security product series has obtained ISO 27001 and ISO 27701 certifications.

2023 TRUSTe Certificate

6869

Intellectual Property ProtectionAnker Innovations places great importance on the protection of intellectual property (IP) rights. Thecompany strictly adheres to the IP laws and regulations of each country, pledging not to infringe uponthe IP rights of others, while vigorously defending its own legitimate IP rights to prevent and dissuadeinfringements by others. Currently, the company's IP portfolio encompasses over 100 countries andregions.Anker Innovations has implemented a dedicated intellectual property management process within itsbusiness operations. The company has established a comprehensive IP management system, includinga specialized IP database and management system. This system enables the company to effectivelyand meticulously manage various forms of IP, such as patents, trademarks, and copyrights, ensuringcompliance, efficiency and precision in IP management.Patent and Trademark ManagementAnker Innovations emphasizes high-quality and efficient systematic management of patents. Thecompany has issued a series of patent management regulations, including "Patent ManagementGuidelines", "Patent Quality Management Guidelines", and "Patent Risk Assessment and ApplicationGuidelines for Product Development Projects". These regulations are accompanied by detailed rules,tools, and empowering documents to ensure the effective implementation of important processes.To promote R&D innovation, Anker Innovations has established distinctive patent incentive andmanagement systems, such as the "Patent Reward Management Guidelines" for service invention patentsand the "Guidelines for Excellent Patent Awards Assessment" for annual outstanding patent awards.The company has also incorporated patent accumulation requirements into the R&D promotion criteriathrough the "Inclusion of Patents in R&D Promotion Standards". In recent years, Anker Innovationshas made significant technological investments in energy conservation and environmental protection,resulting in numerous innovative achievements. Some of these achievements have been captured inpatent applications, including the company's novel technological developments in green environmentalprotection.In the area of trademark management, Anker Innovations has also established a series of managementmethods, including "Trademark Management Guidelines", "IPD Trademark Review and ApplicationGuidelines", "Product Naming Process", "Trademark Registration Approval Process for TechnicalNames", "Amazon Complaint Reporting and Response Process" and so on. These management methodsaim to ensure the efficient and orderly conduct of trademark management work, thereby protectingthe company's intellectual property rights and brand image. At the same time, the company alsodemonstrates its ecological and environmental attitudes to consumers by registering and using eco-friendly trademarks.Intellectual Property Protection TrainingAnker Innovations offers online intellectual property training to employees to enhance their knowledgeand help them be more aware of intellectual property protection and risks. We have established onlineintellectual property courses, including the "Anker Innovations Patent Fundamentals Course" andthe "Anker Innovations Trademark Fundamentals Course". The company has also set up an online"Patent Service Desk" software assistant, which regularly pushes out patent-related knowledge andcases. Offline, the company periodically provides specialized empowerment for employees in variousdepartments, including: "Fundamentals of Patent Application" and "How to Retrieve and Analyze Patents"for the product and R&D departments, "Patent Risk Review and Patent Application Operation - IPMSystem Guide", "Interpretation Training on the Amendments to the Detailed Rules for the Implementationof the Patent Law", "Utility Model Examination Training", "US Patent Litigation Response training"for the intellectual property team, and "Trade mark Basic Knowledge and Risk Prevention", "AmazonIntellectual Property Policy, Complaints and Responses" and other professional training for the marketingdepartment. These initiatives comprehensively enhance the employees' awareness of intellectualproperty protection and risk prevention, and improve the overall level of the company's intellectualproperty management.

Data Statistics ExplanationIndicator

Number ofApplications

Number ofGrants

IntellectualPropertyProtection

2023 Total Number

Invention Patents26970Utility Model Patents254280Design Patents196154Software Copyrights1919Trademark27671Cumulative Number

Invention Patents993173Utility Model Patents1,129848Design Patents1,292594Software Copyrights7675Trademark2,3331,473Application and utilization ofpending and granted patents in

core business operations

Number of granted invention patents applied tocore business

-129Number of invention patent applications in 2023269-

Customer Rights Protection

Voice of Customer (VOC)

Digitalization Initiative

Anker Innovations, since its establishment, has always adhered to a customer-centric approach and actively promotedthe digitalization of the customer service system. Through channels such as email, Livechat/ WhatsApp, phone, officialwebsite, app, and social media, we listen to the voice of our customers. Additionally, the company keeps pace withtechnological trends and focuses on the implementation of AI technology in the smart customer service center. Weutilize the official website Support platform and AI-powered chatbots to provide customers with 24/7 self-serviceconsultation. In 2023, the company continued to advance the application of AI technology from NLP to the largelanguage models like ChatGPT, expanding application scenarios and increasing the coverage of AI services. Our sixglobal service centers received a total of approximately 2.8 million customer inquiries from various channels, with AIchatbots responding to approximately 1.57 million and directly resolving and closing around 870 thousand cases.

Intellectual Property Achievements

Customer Complaint ResponseAnker Innovations consistently improves its customer complaint response mechanism and has established guidelinessuch as the "After-Sales Service Policy", "Customer Service Management Standards", "Customer Complaint TicketProcessing Procedure", and "Return and Exchange Procedure". We classify and manage customer complaints basedon their severity, monitor and assess the response timeliness and closure rate. Our goal is to ensure that all customerissues receive timely responses and resolutions within the expected timeframe.

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Receiving IssuesAI Response

System Categorizationand Grading

Closing Issues"SmallClosed-Loop"

Server Team

Consultation/Complaint

Customer

"LargeClosed-Loop"

Product/Operations TeamClosing Issues

Handling Issues

Product/ OperationsImprovement

Distributing Issues

Statistical Analysis

Customer Voice Closed-LoopIn addition to addressing customer complaints through "small closed-loop" processes, the company alsodelves deeper into exploring and promoting the customer voice "large closed-loop". By categorizing andanalyzing a large volume of customer feedback (with a cumulative output of 200+ analysis reports in2023), we identify common pain points and demands and provide feedback to the product and qualitydepartments. This drives quality improvement and iterative upgrades of our products, resulting in acontinuous enhancement of user experience.

Customer SatisfactionAnker Innovations considers service as a core competitive advantage. The company has established aninternal "Service Quality Management Process" to monitor and optimize service quality through metricssuch as the pass rate of quality inspection and the rate of customer complaint escalations. For ticketsthat do not pass the quality inspection or require escalation, the customer service team conducts reviewanalysis. In 2023, the rate of qualified quality inspections was 97.73%, and the rate of customer complaintescalations was 0.11%.Pass Rate of Quality Inspection

97.73%

Rate of Customer Complaint Escalations

0.11%

Customer feedback is an important source of information for continuous service improvement at Anker Innovations.The company places great emphasis on customer satisfaction management and has established a comprehensivesatisfaction evaluation system. In 2023, a total of 85,146 customer satisfaction surveys were collected, with an overallsatisfaction rate of 4.1 out of 5. Additionally, the company values and pays attention to customer feedback provided onsales platforms, with a seller positive feedback of 99% on major platforms like Amazon.Total Number of Customer SatisfactionSurveys Collected85,146

Amazon Seller Positive FeedbackPercentage

99%

Overall Customer SatisfactionRate (Out of 5)

4.1

Service TeamAnker Innovations believes that only employees who "grow together" with the company can consistently provide high-quality service to customers. Therefore, the company places great importance on training and empowering customerservice personnel. Upon joining the company, new employees undergo a one-month onboarding training program andreceive three months of one-on-one mentoring from an experienced mentor. Through case studies, practical exercises,and post-training reviews, new employees quickly grasp the relevant knowledge and skills. Product engineers regularlyprovide product training to customer service personnel to ensure they can quickly identify and resolve customer issueswhen handling complaints. In addition to regular product training, there is a strong focus on improving the servicemindset, communication and presentation skills, structured thinking, empathy, and other soft skills of customer servicepersonnel, we facilitate discussions and empowerment through seminars across different job functions. In 2023, thecompany organized over 60 empowerment training sessions specifically for customer service personnel, covering atotal of more than 1,000 participants.

Number of Annual Customer ServiceTraining Sessions

Number of Participants in CustomerService Training Annually1,000

Service training session

Quality InspectionImprovementCustomer Service Review

Ticket Extraction/ Escalation

Empowering EmployeeDevelopment

Anker Innovations is dedicated to fostering personalgrowth and enhancing individual capabilities, drivingorganizational progress and achieving a mutuallybeneficial relationship with its talent. This philosophyis reflected in the company's employment guarantees,organizational culture, recruitment process,compensation and performance incentives, trainingand development, and other aspects.

7475

Empowering EmployeeDevelopmentBuilding a HarmoniousCommunityAppendix

Ensuring Employee RightsEmployment Guidelines

Compliance with Labor Laws and RegulationsAnker Innovations strictly adheres to domestic labor laws and regulations such as theLabor Law of thePRC, theLabor Contract Law of the PRC, theSocial Security Law of the PRC, and theLaw of the PRC onthe Prevention and Control of Occupational Diseases, as well as relevant employment laws and policiesof the locations where overseas employees work to safeguard the legitimate rights and interests ofemployees.Anker Innovations also strictly adheres to international conventions such as theConvention on theElimination of All Forms of Discrimination Against Women, theInternational Labour OrganizationConventions, and theUnited Nations Convention on the Rights of the Child, as well as domestic laws andregulations including theLaw of the PRC on the Protection of Rights and Interests of Women, theSpecialProvisions on Labor Protection of Female Employees, theLaw of the PRC on the Protection of Minors,theProvisions on Prohibition of Child Labour, and theRegulations on Work-Related Injury Insurances,along with relevant laws and policies concerning the protection of rights and interests of employeesin the locations where overseas staff work. The company prohibits the recruitment of child labor andany form of discrimination against women, forced labor, and slavery. These prohibitions are also clearlystated in labor contracts and the "Employee Handbook", which explicitly protect employee rights bystrictly forbidding any form of forced labor/slavery/child labour. At the same time, the rights of femaleemployees are safeguarded, ensuring that Anker Innovations' employment practices are compliant andlawful in all respects.In the year 2023, Anker Innovations did not face any incidents of complaints, grievances, or collectivebargaining related to the employment of child labor or forced labor, reflecting our unwaveringcommitment to ethical employment practices.Protecting Employee RightsIn addition, Anker Innovations strictly adheres to theUniversal Declaration of Human Rights, explicitlyprohibiting any form of harassment, abuse, and inhumane treatment in its labor contracts and "EmployeeHandbook", and ensures that there is no occupational discrimination based on any employee's personalinformation in matters involving hiring, compensation, promotion, and other such affairs.

Favorable Work Environment and Atmosphere

Legally Compliant Employment Guidelines

EmployeeCommunication

EmployeeRecruitment

EmployeeTraining andDevelopment

CompensationandPerformanceIncentives

EmployeeWelfare andHealth

Diversity, Equity and Inclusion (DEI)DiversityAnker Innovations has a workforce of 4,017 employees from diverse genders, skin colors, ethnicities, and religiousbeliefs, both domestically and internationally. The fact that over half of the employees are young and energeticcontributes to the vibrancy of the company. Recognizing the diverse backgrounds of employees in terms of ethnicity,skin color, region, and nationality, the company respects and considers this diversity when building and implementinginternal systems. It follows an equal and inclusive approach, complying with local laws, regulations, and employmentpractices in each country.

Equity and InclusionNearly half of Anker Innovations' workforce are female, including 14% female executives. To ensure and care forwomen's rights and interests, Anker Innovations earnestly implements the provisions of the aforementioned internationalconventions and legal regulations. The company particularly safeguards the rights and benefits of female employeesduring pregnancy, childbirth, and breastfeeding periods, such as maternity leave, prenatal examination leave, miscarriageleave, breastfeeding leave, childcare leave, paternity leave for male employees, and maternity bonuses among otherleave and welfare benefits (the leave and holiday arrangements for overseas female employees are subject to the legalprovisions and local policies of their place of work). This year, the number of employees who took the above-mentionedleaves was 659. The company strictly prohibits any incidents of reducing wages, unwarranted dismissal, etc., due tofemale employees' pregnancy, childbirth, or breastfeeding. Regarding employees with disabilities, the company alsoadopts a positive attitude towards their employment and ensures that they are in a fair and healthy working environment.The company explicitly prohibits any form of workplace discrimination by employees in all its guidelines.Employee Statistics:

Note: The statistical scope for categorized data: "Total number of employees is 4,017", with the count finalized as of December31, 2023. The statistical scope includes only formal employees (excluding individuals with internship agreements and laborcontract personnel).

58%

86%

36.8%

90.6%

8.7%

0.7%

42%

14%

62.5%

0.7%

4 Female ExecutivesAccounting for 14% of totalexecutivesEmployeesby Gender

Employeesby Region

Employeesby Level

Employeesby Age Group

2,332 Male employees

3,465in MainlandChina

1,685 Female employees

552 Overseas employees andemployees in Hong Kong,Macau and Taiwan

28 Senior-level employees348 Mid-level employees3,641 Entry-level employees

Employees Over 50 Years Old: 28Employees Aged 30-50: 2,510Employees Under 30 Years Old: 1,479

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Empowering EmployeeDevelopmentBuilding a HarmoniousCommunityAppendix

Talent Development System

Employee Recruitment

Compensation and IncentivesAnker Innovations has a competitive compensation system to attract and retain the most talented individuals with thecore principle of mutual growth between the company and talents. Every achievement of the company is closely linkedto the collective efforts of all employees. As the company grows, it ensures that employees share in the success andrewards of the business. It rewards top-performing employees with generous compensation, fully unleashing theirpotential to create value.

Strict Recruitment Process

Employer Brand Management

Diverse Recruitment Channels

Digital Recruitment Platform

Job Opportunities for Graduates

Scientific Talent Selection

Anker Innovations has developed a comprehensive compensation framework that covers variousdepartments including research and development department, functional roles, and business units. Inaddition to the base salary, different groups enjoys various types of allowances and subsidies providedby the company. Performance-based bonuses and compensation mechanisms are also provided tomeet the incentive demands of different employee groups and levels. The compensation structurewill be regularly reviewed in response to market changes and to align with the company's objectives.

Comprehensive Compensation Structure

Anker Innovations has formulated the "Annual Excellence Award Management Measures" to rewardindividuals and groups who have made outstanding contributions. This initiative encouragesemployees to make greater achievements in their performance and make contributions to the overalldevelopment of the company. This method helps drive business growth, enhances the company'sbrand reputation, and elevates its overall image to support the company's long-term development.

Encouraging Employees to Pursue Excellence with Reward Mechanisms

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

To meet long-term talent requirements for sustained and healthy development of the company and incentivizecore employees, Anker Innovations has established the bonus mechanism called "Long-term Incentive AwardManagement" to motivate its core staff, allowing both employees and the company to share in the long-termbusiness growth benefits. The company will keep strengthening its incentive mechanisms and encouragingmanagement teams and core staff to create higher value for customers in the long term. Anker Innovations hasintroduced the "Entrepreneur Plan in the Next Decade" with the principle of shared growth values since 2022.

Sharing Benefits for Long-term Development

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Anker Innovations has implemented a comprehensive and strict interview evaluation processin social, campus, and internal recruitment. Such methods as professional tests, variousassessments, cross-interviews are included in its recruitment process to ensure a standardizedrecruitment environment.The company places great importance on building and maintaining its employer brand. On therecruitment side, the company conducts candidates satisfaction surveys and gathers feedbackfrom various public opinion platforms. Specific actions are taken to address any issues identified,ensuring a positive job-seeking experience for candidates. Moreover, the company participates inthird-party employer evaluations to expand its employer influence.

Anker Innovations is committed to expanding and enhancing its recruitment channels. In additionto collaborating with mainstream talent websites, the company maintains deep partnershipswith multiple reputable third-party headhunting firms. We have built a comprehensive databaseof headhunter suppliers to effectively identify and attract top-tier strategic talents. Internally, wecontinuously explore social recruitment methods and innovate on platforms such as Maimai andDouyin. Moreover, through specialized projects to develop our own talent pool, we enrich our talentactivation strategies and foster strong connections with the talent market.

Anker Innovations has achieved end-to-end digitization of the recruitment process by usingadvanced third-party recruitment management systems. Digital platforms can help build a muchmore comprehensive recruitment process, assessment process and scientific evaluation process.Moreover, Anker Innovations explores the efficient application of advanced technologies such asChatGPT in the recruitment field.

Anker Innovations has recruited over 200 graduates from top universities for three consecutiveyears. It has established strong partnerships with universities with abundant career opportunitiesand highly competitive compensation and packages through programs like summer internshipsand international management trainee programs.

With the aim of building a scientific talent selection standard, Anker Innovations draws on ideasfrom multiple international consulting firms and has developed its own candidate-competencymodel dictionary with the company's unique characteristics. Regular interview-skill training is alsoprovided for interviewers to achieve a scientific talent-selection process.

7879

Empowering EmployeeDevelopmentBuilding a HarmoniousCommunityAppendix

Employee Career DevelopmentIn terms of employee development, Anker Innovations adopts a diversified career development approachcalled the "Trident", different from the traditional linear career progression path. This approach allowsindividual contributors to develop their career path between the expert and managerial tracks. AnkerInnovations aims to provide more development opportunities for talents by establishing both horizontaland vertical career paths.Additionally, the company offers a wide range of job rotation opportunities to help employees facilitatetheir comprehensive learning and diversified development within the company. Anker Innovations placesgreat importance on employee career development and encourages employees to grow together with thecompany through a supportive stance and actionable measures.

Employee TrainingCommitted to building a learning organization, Anker Innovations places great emphasis on the development of itsemployees and provides comprehensive training and development opportunities. The company has built its ownLearning Center and Professional Association, which not only offers professional skills training but also focuses onemployees' leadership development.Anker Innovations adopts a combination of online platforms and offline teaching methods, closely aligned with thecompany's development roadmap and business needs. Training is integrated with practical applications, providingcomprehensive support for the career development of every employee.The company encourages employees to participate in various learning activities, including professional courses,seminars and workshops, to enhance their abilities and qualities. The personal development of employees is one of thecompany¡¯s top priorities. The company will continue to invest more resources and efforts to provide the best support foremployees' career development.

Anker Innovations Sailor and Captain Training Program

Comprehensive Training ProgramsExpert Path

Management Path

Functional Line

Individual Contributors

Business Line

Industry Authority

Senior FunctionalManager

Key Contributor

General BusinessManager

Leading Expert

IntermediateFunctional Manager

Entry-level

Contributor

Group BusinessManager

Frontline ExpertFrontline Manager

Supporter

Segment BusinessManager

Anker Innovations'Cultural Values

General Qualities ofExcellent Leadership

External HireOnboarding Training

New Ankers' DayCampus RecruitmentOnboarding

Sailor Program

Business Representative

Training Camp

High-potentialEmployees

YHP Program

Outstanding

Managers

Captain's Club

BusinessRepresentativesCompany-wideLearning Community

Outstanding

Interviewers

IPC Club (Integrated Product

Commercialization)

Frontline Manager

Organizational

Evolution Camp

Organizational

Evolution Camp

Senior FunctionalManagerSegment BusinessManagerGroup BusinessManagerProfessionalAssociation

Functional LineTrainingPrograms

Business LineExpert Line

Individual Contributors

8081

Implementation of Employee Care

Anker Innovations Learning PlatformIn line with Anker Innovations' four core value streams, the company has developed various specializedcourses for employees, which allows employees to quickly identify the courses they need to enhancetheir skills and qualities.

Self-Developed CoursesAnker Innovations has developed a wide range of courses in various areas, covering topics such aswork methodologies, career transformation, market insights, and skill development. The company hasestablished a team dedicated to extracting practical experiences and refining them into online coursesfor employees to learn from.

Anker Innovations Online Learning Platform

Examples of Anker Innovations' Self-Developed Courses

Consumer Insight: Target Audience Segmentation

and In-depth Needs Exploration Method

Anker's "Innovation" Seven-Step Work MethodOne-Stop Software Development

Management Platform (CODING)

Anker Competence Definition Interpretation

and Application

Caring for Employee WellbeingTo ensure employees' sense of belonging and security at Anker Innovations while fostering strong bonds betweenemployees and the organization, we provide a comprehensive range of welfare benefits that encompass variousareas, including meals, health, transportation, and culture. These benefits reflect our commitment to supporting boththe professional and personal lives of our employees, contributing to creating a warm, comfortable, and caring workenvironment and organizational culture.Regarding welfare leave, in addition to the standard annual leave and statutory holidays, Anker Innovationsacknowledges the diverse needs of our employees, such as caring for and visiting family members or attending topersonal matters. As a result, we have expanded our range of welfare leave options to accommodate these differentneeds, demonstrating our understanding and support for the various aspects of our employees' lives.

Training Data for 2023

4,396People

Total Number ofTraining Participants

2.66

Hours

Average LearningDuration Per Person

4.74

Average SatisfactionRating

Out of 5 Points

Courses

Total Number ofCourses Offered

Note: The training data for 2023 only includes the statistics from the Empowerment Center projects and doesnot cover the training activities conducted independently by various departments.

Free breakfast and dinner, discounted lunch options, overtime meals, discounts atpartner restaurants for employees, coffee cornersSocial insurance, medical check-ups, basic medical insurance, million medicalinsurance, critical illness insurance, access to fitness centers, major illnessassistance39 free parking spaces (in Changsha), transportation support for overtime work

2-hour paid short leave, special leave for long-term employees, visiting-family leavefor expatsBirthday benefits, mentorship dinner benefits, quarterly team building benefits andanniversary gifts

Wedding cash gift, maternity cash gift, sympathy cash gift for family members' illness

Employee discounts for purchasing company products, free customized products

TransportationBenefits

Cash Gifts

Product Benefits

Health Benefits

Employee Care

Catering Benefits

Welfare Leave

Employee Benefits

8283

Cultural ActivitiesIn addition to traditional benefits, Anker Innovations, as a youthful and dynamic company, organizes avariety of cultural activities that resonate with young individuals.

Anker Innovations introduces various initiatives to promote a healthy lifestyle, such as the "Sports Month"event. We also organize special activities to show care and appreciation for different groups, includingthe Women's Day/ Mother's Day/ Engineer's Day events. Additionally, we offer 33 interest-based clubs andorganize departmental activities to cater to diverse interests and promote employee engagement.

Family Day is like Spring Festival for AnkerInnovations employees. It is a family-orientedevent open to all staff members. On this day, thecompany invites employees, their families, andimportant prospective partners to join in variousfun activities, games, and exhibitions. Throughthese interactive experiences, attendees canimmerse themselves in the company's culture,gain insights into our business, and foster a senseof belonging.

The learning sharing session is an importantplatform for building a learning organizationwithin the company. During these sessions, weinvite individuals from various positions to sharethe company achievements and business growth,methodologies, and corporate strategies from theprevious year, following the format similar to TEDtalks.

Learning Sharing SessionsFamily Day

Clubs and Special Activities

Anker Innovations' global offices have also organized a series of activities to jointly establish an open,equal, and inclusive cultural atmosphere.

The Dubai office organizedteam-building activities

The Japan office held an

annual meeting

The Australian office conducted its annual event

Establishing Effective Communication Channels

Anker Innovations places great importance on employee experience and is dedicated to actively gathering and incorporatingemployee feedback to improve our systems and processes. We are committed to creating a favorable work environment,fostering a positive organizational culture, and providing ample opportunities for employee growth. In order to promote anatmosphere of open and equitable communication, we have implemented various measures to facilitate continuous employeefeedback, including:

Annual Employee Opinion Survey

Monthly All-Hands Meeting (TGIF)

Monthly Manager Communication Meeting

Board Feedback Email

Company-wide Communication and Exchange Group

Project-specific Communication and Exchange Groups

Conduct an annual anonymous survey targeting all employees to assess theirsatisfaction and engagement from multiple dimensions. Identify commonkey issues based on employee feedback and incorporate them into the keyimprovement areas for the following year's organizational development.

Regularly hold a monthly communication meeting for all employees, wherethe Board of Directors and business representatives share key updates andaddress anonymous employee questions in an open forum.

Organize monthly communication meetings specifically for managers,where the Board of Directors share the company's latest business strategiesand conduct workshops to gather insights on business and organizationalchallenges, providing recommendations for corporate strategy, businessoperations, and organizational development.

Establish a Board of Directors' public email address (voice@anker.com) withinthe company, where employees can send their opinions and ideas regardingcompany strategy, development, business matters, or any significant issues.The email response rate is 100%.

Create an open and candid communication culture by facilitating directcommunication in a company-wide group, where any topic can be discussed.The response rate is 100%.

For daily operational matters such as administrative dining, office hygiene,or IT maintenance, we establish dedicated project-specific communicationgroups with assigned personnel to address and resolve employee feedback orquestions.

8485

? Fire Safety Training: The company conducts training sessions aimed at enhancing participants' awarenessof fire hazards. These sessions ensure that all individuals have a clear understanding of the fundamentalmeasures for fire prevention, methods for extinguishing fires, and the necessary skills to organize personnelevacuation and facilitate a safe escape.

? Employee Safety Education and Training:

The company has implemented the "SafetyEducation and Training Management System" toprioritize the enhancement of safety awarenessamong all employees and outsourced personnel.We proactively conduct safety training fornew employees during onboarding process,as well as regular and specialized trainingsessions. Training is delivered through on-site lectures, practical exercises, and othermethods, covering a comprehensive range ofcourses, including three-level safety training, andsafety management training. The company iscommitted to continually improving the qualityand effectiveness of its training programs.

First Aid Kit

Fire safety training with on-site instruction and drills.

Employee Safety Education and Training

Doctor Visits at the Workplace

Emphasizing Health and Safety

Employee Safety and Production Assurance Measures

Employee Occupational Health

The company provides comprehensive employee social insurance and medical insurance,including basic medical insurance and critical illness insurance, with a coverage rate of100%. In 2023, the company additionally purchased million-dollar medical insurance forsome employees, with plans to extend coverage to all staff in 2024, demonstrating care forthe health and well-being of our workforce.

From September to December each year, the company offers comprehensive medicalcheck-ups to all employees, with a coverage rate of 100%.

The company provides essential over-the-counter medications free of charge,demonstrating our commitment to the well-being of employees and providing basicassistance for emergencies.The company has collaborated with community organizations multiple times to organizehealth lectures, inviting doctors from the Dawn Community Health Center to share knowledgeon the prevention and curing methods related to cervical spondylosis and hair loss.Regular visits from doctors are arranged each year to address common workplace healthconcerns and provide answers and guidance to employees.

Employee Occupational Health

Medical Examinations

Social and CommercialInsurance

Doctor Visits at the

Workplace

First Aid Kit

Building a HarmoniousCommunity

While promoting the growth of the company,Anker Innovations actively assumes socialresponsibility and deeply participates in variouscharity activities such as green public welfarepractices, social charity actions, and communitydevelopment support, all of which contribute tothe development of a harmonious community.

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Anker PowerBag - Products for Disaster Prevention

Anker Japan has signed disaster support agreements with eight cities' governments in Japan

Supporting Local DevelopmentSupporting Local DevelopmentAnker Innovations has leveraged its product advantages in emergency rescue and played an important role in securingpower supply in municipalities.Given the frequency of natural disasters in Japan, keeping electronic devices powered has become a necessarycondition during disasters. To address this, Anker Japan launched the "Anker PowerBag", a special disasterpreparedness set of charging products including batteries, solar chargers, cables, etc. Moreover, the companycooperates with municipalities in Japan and to date has signed disaster support agreements with eight cities'governments to provide Anker PowerBag and Anker PowerHouse series of ultra-large-capacity portable power stationsto help secure power supply in times of disasters. Starting from 2023, a portion of the sales from Anker PowerBag willbe donated to the certified non-profit organization "Japan Disaster Prevention Association".These actions fully reflect Anker Innovations' social responsibility and make positive contributions to the safety andstability of the municipalities.

Carrying out Public Welfare PracticeAnker Innovations consistently pays attention to vulnerable groups, particularly children requiring specialeducation, regions with public health treatment needs, or areas in urgent need of reconstruction afterdisasters. In recent years, the company has actively fulfilled its social responsibilities by providing timelycharitable assistance, with cumulative donations of cash and materials valued at over 10 million yuan.In 2023, Anker Innovations has left a positive footprint in the construction of harmonious communitiesacross various regions globally.In Australia, Anker Innovations partnered with its channel partner digiDirect and other consumerelectronics brands to sponsor the charity organization "Make A Wish", which helps critically ill childrenfulfill their dreams. Together, they made possible activities such as a soccer match and a meeting with"Iron Man", providing children with life-threatening conditions the chance to have their wishes come trueand experience a memorable day filled with hope.In Japan, Anker Innovations has collaborated with "Kawasaki Frontale" (soccer team) to support theconstruction of a health and disaster prevention community named "ANKER FRON-TOWN IKUTA" byproviding company products such as soundcore speakers and Nebula smart projectors. The communityincludes 2 soccer fields (which Kawasaki Frontale's youth academy uses for practice), 6 tennis courts,a gymnasium, and a club house, as well as sports orthopedic rehabilitation facilities, a kids nursery anda park, a multifunctional plaza managed by the Kawasaki City Waterworks and Sewerage Bureau, andthe Ikuta Exchange Plaza, among other elements and sports facilities. This community will serve as theactivity base for the Kawasaki Frontale Academy, as well as a sports venue for Kawasaki citizens, and atemporary refuge and disaster response base in case of emergencies.In Turkey, we have established a partnership with GEA, an esteemed member of the International Searchand Rescue Advisory Group, which is dedicated to volunteer search and rescue operations and providinghumanitarian assistance. We provide them with Anker charging and energy storage products to meettheir energy and communication needs during disasters such as earthquakes, fires, and floods.In the Middle East and Africa, Anker Innovations embraced sustainability at the region's most iconictechnology event, GITEX GLOBAL, by eliminating paper POSM and brochures from their booth.Additionally, we developed a dedicated microsite for the event to communicate the concept ofenvironmental protection to users. Furthermore, we has entered into a strategic partnership with R3Factory, a key player in the "re-commerce" sector, to fulfill its regional commitment to sustainabledevelopment through the renewal, reuse, and reduction of electronic waste.

Participating in the Make-A-Wish event forcritically ill children in Australia

Supporting GEA's rescue operations in TurkeyShowcasing Smart Technology and Sustainability

at GITEX GLOBAL in the Middle East and Africa

Supporting the construction of a community sports center inJapan that also serve as emergency shelters

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2023

ANKER INNOVATIONSSUSTAINABILITY REPORTAbout This ReportMessage from Our CEOAbout Anker InnovationsSustainable DevelopmentManagementPromoting Industry GreenTransitionResponsible Products andTechnologyGreen and Low-CarbonDevelopmentIntegrity and Compliance inOperationsEmpowering EmployeeDevelopmentBuilding a HarmoniousCommunityAppendix

Appendix

Key EconomicPerformance Indicators

Unit20232022

Prime Operating Revenue100 million yuan174.31141.10Sales VolumeUnits83,330,98172,021,545Financial AssistanceReceived FromGovernment

10 thousand yuan7,3713,960

Economic Performance Table

[*] Based on the considerations of data authenticity, accuracy and disclosure prudence£¬metrics that were unable to be preciselymeasured and traced will be denoted by a forward slash ("/").[1] Statistics on energy consumption include data from Shenzhen, Changsha, Guangzhou, and Suzhou offices of Anker Innovations.[2] Statistics on GHG emission include data from Shenzhen, Changsha, Guangzhou, and Suzhou offices of Anker Innovations.[3] Scope 1 emission mainly comes from natural gas consumption.The emission factors is referenced from theGuideline forQuantifying and Reporting of Organizational GHG Emissions.[4] Scope 3 emissions include emissions from travel transportation, hotel accommodations, waste disposal, and sewage treatment.[5] Anker Innovations has participated in the China Bijie Afforestation VCS project and the Heilongjiang Bayan Biomass CogenerationCDM project and obtained carbon credits 68,542 tCO

e in total.[6] Statistics on water use and sewage discharge include data from Shenzhen, Changsha, Guangzhou, and Suzhou offices of AnkerInnovations[7] Statistics on paper consumption include data from Shenzhen and Changsha offices.[8] The statistics for office and kitchen waste include data from Shenzhen, Guangzhou, Changsha, and Suzhou offices, while thestatistics for electronic waste include data from the Shenzhen and Changsha offices. The amount of office waste generated was notrecorded in the year 2022.[9] The statistics for hazardous waste include data from Shenzhen, Changsha, and Guangzhou offices.[10] The statistics for waste recycling include data from Shenzhen and Changsha offices.

Environmental Performance Table

Category of

Topics

Key Environmental Performance

Indicators

Units20232022

Energy Use

[1]

Natural Gas Consumptionm

18,967.00/ [*]Total Electricity ConsumptionkWh10,902,160.789,222,189.90Per Capita Electricity ConsumptionkWh per person2,714.012,551.09Electricity Per Unit of Building AreakWh per m

228.30199.35

Total Clean Energy Consumption

Tons ofStandard Coal

25.23/

Percentage of Clean Energy Use%1.85%/Direct Energy Consumption

Tons ofStandard Coal

25.23/

Indirect Energy Consumption

Tons ofStandard Coal

1,339.881,133.41Total Energy Consumption

Tons ofStandard Coal

1,365.101,133.41Energy Consumption Intensity

Tons ofStandardCoal/100 millionyuan revenue

7.807.95

GHG Emissions

[2]Total Direct GHG Emissions (Scope 1)

[3]Tons of CO

41.01/

Total Indirect GHG Emissions (Scope 2)Tons of CO

5,762.714,857.77Total Other Indirect GHG Emissions(Scope 3)

[4]

Tons of CO

1,834.44 767.04Total GHG EmissionsTons of CO

7,638.16 5,624.80Per Capita GHG Emissions

Tons of CO

perperson

1.901.56

GHG Emissions per Unit of Building Areas

Tons of CO

perm

0.170.12

Carbon Credits

[5]

tCO

e68,542/

Category ofTopics

Key Environmental Performance IndicatorsUnits20232022Water ResourceUse[6]

Municipal Water ConsumptionTons35,597.8024,060.00Barrelled Water ConsumptionTons116.0099.40Total Water ConsumptionTons35,713.8024,159.40Per Capita Water ConsumptionTons per Person8.896.68Total Sewage DischargeTons35,713.824,159.40Paper Use

[7]

Office Paper ConsumptionTons3.352.62Per Capita Office Paper ConsumptionTons per Person0.00080.0007

WasteManagement

Non-hazardousWaste [8]

Office WasteTons206.70/Kitchen WasteTons23.8015.90Electronic Waste - DesktopsPieces5444Electronic Waste - MonitorsPieces6932Electronic Waste - LaptopsPieces773259Total Non-hazardous WasteTons232.7616.88Hazardous Waste

[9]Hazardous Waste - InkCartridges

Boxes5060Hazardous Waste - TonerCartridges

Units812Total Hazardous WasteTons0.050.06Waste EmissionIntensity

Non-hazardous WasteEmission Intensity

Tons per 100

million yuan

1.330.12

Hazardous Waste EmissionIntensity

Tons per 100

million yuan

0.00030.0004

Waste Recycling

[10]The Number of ElectronicWaste Recycling

Pieces896335

Notes:

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Category ofTopics

Key Social Performance IndicatorsUnit20232022

Labor Management/Employment

Total Number of Employees

[1]

Persons4,0173,615

Number of Employees byGender

Male EmployeesPersons2,3321,969Female EmployeesPersons1,6851,504

Number of Employees byLevel

Senior-level EmployeesPersons2829Mid-level EmployeesPersons348292Entry-level EmployeesPersons3,6413,152

Number of Employees byRegion

Employees in Mainland ChinaPersons3,4653,053Overseas Employees andEmployees in Hong Kong, Macauand Taiwan

Persons552420Number of Employees byAge Group

Employees aged under 30Persons1,4791,348Employees aged 30-50Persons2,5102,112Employees aged over 50Persons2813Diversity of Governance

Number of Female ExecutivesPersons46Percentage of Female Executives%14.2920.7Number of Employees byEmployment Type

Full-time EmployeesPersons4,0173,615Outsourcing Employees(Contractors)

Persons3/Other Employees (Interns)Persons243/Proportion of SeniorManagement Hired fromthe Local Community

Proportion of Senior ManagementHired from the Key OperationalSites

%0.5/Signing Rate of Employee Contracts%100100Social Insurance Coverage%100100

EmployeeDevelopment andTraining[2]

Total Number of Training ParticipantsPerson-time4,3966,147Total Training HoursHours280187Total Training Person-hoursHours12,117.508,955

Number of EmployeeUnder Training by Gender

Number of Male Employee UnderTraining

Persons2,332/Number of Female EmployeeUnder Training

Persons1,685/

Number of EmployeeUnder Training byEmployment Type

Number of Senior-level Employeeunder Training

Person-time34/Number of Mid-level Employeeunder Training

Person-time557/Number of Entry-level Employeeunder Training

Person-time3,805/Average Hours of EachEmployee Under Trainingby Gender

Average Hours of Male Employeesunder Training

Hours per

Person

2.66/

Average Hours of FemaleEmployees under Training

Hours per

Person

2.66/

Average Hours of EachEmployee Under Trainingby Level

Average Hours of Senior-levelEmployees

Hours per

Person

2.66/

Average Hours of Mid-levelEmployees

Hours per

Person

2.66/

Average Hours of Entry-levelEmployees

Hours per

Person

2.66/

Category ofTopics

Key Social Performance IndicatorsUnit20232022

EmployeeDevelopment andTraining[2]

Percentage of Employees underPerformance and Career DevelopmentAssessments by Gender

Percentage of Male Employeesunder Performance and CareerDevelopment Assessments

%58.05/Percentage of Female Employeesunder Performance and CareerDevelopment Assessments

%41.95/

Percentage of Employees underPerformance and Career DevelopmentAssessments by Level

Percentage of Senior-levelEmployees under Performanceand Career DevelopmentAssessments

%100/Percentage of Mid-levelEmployees under Performanceand Career DevelopmentAssessments

%100/Percentage of Entry-levelEmployees under Performanceand Career DevelopmentAssessments

%100/Employee Skill ImprovementNumber of Annual TrainingTime605/Average Employee Satisfaction Rate

[3]

%4.744.71Employee Training Investment andCoverage

Number of Employee TrainingTime605/Annual Training Spending10 Thousand yuan114/Employee Training Coverage%100/Occupational Healthand Safety

Number of Work-related FatalitiesPersons00Rate of Work-related Fatalities%00Lost Days Due to Work InjuryDays5024Coverage Rate for Health Check-up Services%100100Coverage and Investment of EmployeeWork-related Injury and ProductionSafety Liability Insurance

Total Amount of Investment inWork-related Injury Insurance

10 Thousand yuan66.2/Coverage Rate of Employee Work-related Injury Insurance

%100/

Supply ChainManagement

Number of Suppliers

393/

Number of Suppliers by Region

Number of Suppliers in MainlandChina

329/Number of Overseas Suppliersand Suppliers in Hong Kong,Macau and Taiwan

64/Supplier Anti-Corruption Management

Rate of Suppliers Signing Anti-Commercial Bribery Clause/Integrity Agreement

%100100

Proportion of spending on localsuppliers

Proportion of ProductionMaterials Procurement from KeyOperational Sites

%100/Proportion of Complete ApplianceProcurement from DomesticSuppliers

%86/Proportion of Complete ApplianceProcurement from OverseasSuppliers

%14/Product Quality andSafety

Assessment of the health and safetyimpacts of product and servicecategories

Percentage of the health andsafety impacts of assessedproduct and service categories

%0/

9495

2023

ANKER INNOVATIONSSUSTAINABILITY REPORT

9495

2023

ANKER INNOVATIONSSUSTAINABILITY REPORT

[1] The "total number of employees" in 2023 only include full-time employees excluding interns and contractors.The number in 2022 include both full-time employees and daily-paid interns. The statistics of employees bycategory only includes full-time employees and does not include daily-paid interns.[2] Training statistics only include data from the Learning Center and does not include training statistics frombusiness units.[3] The maximum satisfaction score for employee training is 5 points.[4] The maximum satisfaction score for customer service is 5 points.[5] Core business refers to a business line that exceeds 60% revenue.[6] Patents statistics include Invention Patents, Utility Model Patents and Design Patents[7] Due to the various types of public welfare/volunteer service projects that the company has participated inprevious years, the total amount of investment involves direct donations and the estimated value of donatedproducts, so the cumulative investment amount is not an absolutely accurate number.

Category ofTopics

Key Social Performance IndicatorsUnit20232022ResponsibleMarketing

Coverage Rate of Responsible Marketing Training for Sales%100/Average Hours of Responsible Marketing Training for SalesEmployees

Hours perPerson

6/Customer Service

Number of Customer Service Consultation and ComplaintsPerson-time2,800,0002,750,000Customer Service Satisfaction Rate

[4]

/4.14.1Number of Annual Customer Service Training SessionsTimes6050Number of Participants in Customer Service Training AnnuallyPerson-time1,000700

TechnologicalInnovation

Annual Investment

Annual Investment in TechnologyResearch and Development

100 million

yuan

14.1410.81

Cumulative Investment inRecent 3 years

Cumulative Investment inTechnology Research andDevelopment

100 million

yuan

32.7324.26

Proportion of R&DInvestment

Proportion of R&D Investment inPrime Operating Revenue

[5]

%8.11/Number of R&DEmployees & Proportion ofR&D Employees

Number of R&D EmployeesPersons1,9181,820Proportion of R&D Employees %47.7550.35

Intellectual PropertyProtection

Total Number of Grants

Patents[6]

/504544Software Copyrights/193Registered Trademarks/71199Cumulative Number ofGrants

Patents/1,6151,201Software Copyrights/7584Registered Trademarks/1,4731,066Patent Applications andUtilization

Total Number of Granted PatentsApplied to the Prime BusinessOperations since the company'sestablishment

/129/Number of Patent Applications/269/Data Security andPrivacy Protection

Number of Annual Data Safety/Privacy Protection TrainingTimes11/Audit frequency for information security policies and systemsYear per Time32Charity and Welfare

Annual Investment in Public Charity Activities/VoluntaryService Activities

10 Thousand

yuan

2.422.83

Cumulative Investment in Public Charity Activities/VoluntaryService Activities

[7]

10 Thousand

yuan

1,000+800+

Category ofTopics

Key Governance Performance IndicatorsUnit20232022

Business Ethics

Number of Corruption Lawsuits Filed Against the Company andEmployees

/0/Economic Losses incurred by the Corruption Lawsuitsyuan0/Number of Anti-Corruption Training/Integrity Culture PromotionsTimes1212Number of Internal Anti-Corruption/Investigation ActivitiesTimes86Employee Coverage Rate of Business Ethics Standard Training%100100Audit Frequency for Business Ethics StandardTime/Year11Percentage of Operations Completed Corruption Risk Assessment%7070

Number of Employeesparticipating in Anti-Corruption and Anti-Bribery Training

Number of Senior Executives Receiving Anti-Bribery and Anti-Corruption Training

Person220/

Percentage of Senior Executives Receiving Anti-Bribery and Anti-Corruption Training

%10/

Number of Employees Receiving Anti-Bribery andAnti-Corruption Training

Persons2,200/

Percentage of Employees Receiving Anti-Briberyand Anti-Corruption Training

%100/Risk Managementand Internal Control

Number of Risk Management and Internal Control TrainingTimes1212Employee Coverage Rate of Risk Management and Internal ControlTraining

%100100Notes:

9697

2023ANKER INNOVATIONSSUSTAINABILITY REPORT

9697

GRI StandardDisclosureLocatioin Part 1 General Disclosure

GRI 2: General Disclosures2021

2-1 Organizational detailsAbout Anker Innovations2-2 Entities included in the organization¡¯ssustainability reporting

About This Report2-3 Reporting period, frequency and contact pointAbout This Report2-6 Activities, value chain and other businessrelationships

About Anker Innovations2-7 Employees

Empowering Employee Development

Social Performance Table2-8 Workers who are not employees

Employee Recruitment

Social Performance Table2-9 Governance structure and composition

Corporate Governance Framework

ESG Strategy and Governance Framework2-10 Nomination and selection of the highestgovernance body

Corporate Governance Framework2-11 Chair of the highest governance bodyCorporate Governance Framework2-12 Role of the highest governance body inoverseeing the management of impacts

Corporate Governance Framework

ESG Strategy and Governance Framework2-13 Delegation of responsibility for managingimpacts

Corporate Governance Framework

ESG Strategy and Governance Framework2-14 Role of the highest governance body insustainability reporting

ESG Strategy and Governance Framework2-16 Communication of critical concerns

Investor Communication and Shareholder

Rights Protection

Stakeholder Engagement2-22 Statement on sustainable developmentstrategy

ESG Strategy and Governance Framework2-26 Mechanisms for seeking advice and raisingconcerns

Stakeholder Engagement2-27 Compliance with laws and regulationsIntegrity and Compliance in Operations2-29 Approach to stakeholder engagementStakeholder EngagementPart 2 Material TopicsGRI 3: Material Topics2021

3-1 Process to determine material topicsIdentification of Material Topics3-2 List of material topicsIdentification of Material Topics3-3 Management of material topicsIdentification of Material TopicsEconomic Performance

GRI 201: EconomicPerformance 2016

201-1 Direct economic value generated anddistributed

Economic Performance Table201-2 Financial implications and other risks andopportunities due to climate change

Addressing Climate Change201-3 Defined benefit plan obligations and otherretirement plans

Caring for Employee Wellbeing201-4 Financial assistance received fromgovernment

Economic Performance Table

GRI StandardDisclosureLocatioinMarket PresenceGRI 202: Market Presence2016

202-2 Proportion of senior management hired from the local communitySocial Performance TableProcurement PracticeGRI 204: ProcurementPractices 2016

204-1 Proportion of spending on local suppliersSocial Performance TableAnti-corruptionGRI 205: Anti-corruption2016

205-1 Operations assessed for risks related to corruptionGovernance Performance Table

205-2 Communication and training about anti-corruption policies and

procedures

Compliance with Business EthicsGovernance Performance TableAnti-competitive BehaviorGRI 206: Anti-competitiveBehavior 2016

206-1 Legal actions for anti-competitive behavior, anti-trust, and

monopoly practices

Compliance with Business EthicsMaterialsGRI 301: Materials 2016

301-2 Recycled input materials usedGreener Products301-3 Reclaimed products and their packaging materialsGreener ProductsEnergy

GRI 302: Energy 2016

302-1 Energy consumption within the organization

Energy Management

Environmental Performance Table302-3 Energy intensity

Energy Management

Environmental Performance Table 302-4 Reduction of energy consumptionEnergy Management302-5 Reductions in energy requirements of products and servicesGreener ProductsWater amd Effluents

GRI 303: Water andEffluents 2018

303-2 Management of water discharge-related impactsWater Resource Management303-3 Water withdrawal

Water Resource Management

Environmental Performance Table303-4 Water discharge

Water Resource Management

Environmental Performance Table 303-5 Water consumption

Water Resource Management

Environmental Performance TableBiodiversityGRI 304: Biodiversity 2016

304-2 Significant impacts of activities, products and services onbiodiversity

Environmental and Ecological Protection

9899

2023ANKER INNOVATIONSSUSTAINABILITY REPORT

9899

GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions

Low-Carbon OperationEnvironmental Performance Table305-2 Energy indirect (Scope 2) GHG emissions

Low-Carbon OperationEnvironmental Performance Table305-3 Other indirect (Scope 3) GHG emissions

Low-Carbon OperationEnvironmental Performance Table305-4 GHG emissions intensity

Low-Carbon OperationEnvironmental Performance Table305-5 Reduction of GHG emissions

Low-Carbon OperationEnvironmental Performance TableWaste

GRI 306: Waste 2020

306-1 Waste generation and significant waste-relatedimpacts

Waste Management306-2 Management of significant waste-related impactsEnvironmental Performance Table306-3 Waste generated

Waste Management

Environmental Performance Table306-5 Waste directed to disposal

Waste Management

Environmental Performance TableSupplier environmental assessmentGRI 308: SupplierEnvironmentalAssessment 2016

308-1 New suppliers that were screened usingenvironmental criteria

Sustainable Supply Chain

ManagementEmploymentGRI 401: Employment2016

401-2 Benefits provided to full-time employees that arenot provided to temporary or part-time employees

Compensation and Incentives

Caring for Employee Wellbeing 401-3 Parental leaveDiversity, Equity and InclusionOccupational health and safety

GRI 403: OccupationalHealth and Safety 2018

403-1 Occupational health and safety managementsystem

Emphasizing Health and Safety 403-3 Occupational health servicesEmphasizing Health and Safety403-5 Worker training on occupational health and safetyEmphasizing Health and Safety403-6 Promotion of worker healthEmphasizing Health and Safety403-9 Work-related injuriesSocial Performance Table

GRI StandardDisclosureLocatioin

Training and educationGRI 404: Training andEducation 2016

404-1 Average hours of training per year per employeeEmployee Training404-2 Programs for upgrading employee skills and transitionassistance programs

Employee Training404-3 Percentage of employees receiving regular performanceand career development reviews

Social Performance TableDiversity and equal opportunityGRI 405: Diversity andEqual Opportunity 2016

405-1 Diversity of governance bodies and employees

Corporate Governance Framework

Diversity, Equity and InclusionNon-discriminationGRI 406: Non-discrimination 2016

406-1 Incidents of discrimination and corrective actions takenDiversity, Equity and InclusionChild laborGRI 408: Child Labor 2016

408-1 Operations and suppliers at significant risk for incidents of

child labor

Employment GuidelinesSustainable Supply Chain ManagementForced or compulsory laborGRI 409: Forced orCompulsory Labor 2016

409-1 Operations and suppliers at significant risk for incidents of

forced or compulsory labor

Employment GuidelinesSustainable Supply Chain ManagementCustomer health and safetyGRI 416: Customer Healthand Safety 2016

416-2 Incidents of non-compliance concerning the health and

safety impacts of products and services

Social Performance TableMarketing and labelingGRI 417: Marketing andLabeling 2016

417-1 Requirements for product and service information andlabeling

Conducting Responsible Marketing417-2 Incidents of non-compliance concerning product andservice information and labeling

Social Performance Table417-3 Incidents of non-compliance concerning marketingcommunications

Social Performance TableCustomer privacyGRI 418: Customer Privacy2016

418-1 Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

Ensuring Information and Privacy Security

100101

2023ANKER INNOVATIONSSUSTAINABILITY REPORT

100101

Guidelines No. 17 of Shenzhen Stock Exchange forSelf-regulatory of Listed Companies at the ShenzhenStock Exchange - Sustainability Report (Trial) Index

ChapterDisclosure ContentDisclosure Section

Chapter 1

General Principles

1 About This Report2 About Anker Innovations3 Sustainable Development ManagementChapter 2Sustainability Disclosure Framework

3 Sustainable Development Management6 Green and Low-Carbon DevelopmentChapter 3: Environmental Information DisclosureChapter 3 Section 1Addressing Climate Change6 Green and Low-Carbon DevelopmentChapter 3 Section 2

Pollution Prevention and EcosystemProtection

4 Promoting Industry Green Transition6 Green and Low-Carbon DevelopmentChapter 3 Section 3Resource Utilization and Circular Economy

5 Responsible Products and Technology6 Green and Low-Carbon DevelopmentChapter 4: Social Information DisclosureChapter 4 Section 1Rural Revitalization and Social Contribution9 Building a Harmonious CommunityChapter 4 Section 2

Innovation Driving Power and TechnologyEthics

5 Responsible Products and Technology7 Integrity and Compliance in OperationsChapter 4 Section 3

Suppliers and Customers5 Responsible Products and Technology

7 Integrity and Compliance in OperationsChapter 4 Section 4Employees8 Empowering Employee DevelopmentChapter 5: Sustainability-related Corporate Governance Information DisclosureChapter 5 Section 1

Governance Mechanisms Related toSustainability

3 Sustainable Development ManagementChapter 5 Section 2Business Behaviors7 Integrity and Compliance in OperationsChapter 6Supplementary Provisions and Definitions10 Appendix

Note: SSE has not released the English version of the Guidelines yet. If any incorrect translation occurs, please kindly refer to theChinese version.

¹«Ë¾¹«¸æ_°²¿Ë´´ÐÂ£º2023Anker Innovations Sustainability(ESG)ReportÐÂÀË²Æ¾_ÐÂÀËÍø (2024)

References

¹«Ë¾¹«¸æ_°²¿Ë´´ÐÂ£º2023Anker Innovations Sustainability(ESG)ReportÐÂÀË²Æ¾­_ÐÂÀËÍø (2024)

References

¹«Ë¾¹«¸æ_°²¿Ë´´ÐÂ£º2023Anker Innovations Sustainability(ESG)ReportÐÂÀË²Æ¾_ÐÂÀËÍø (2024)