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Where there is home and love, there is OPPEIN.OPPEIN Home Group Inc.???? Sustainability Report Mainboard-listed company stock code：?????? OPPEIN Home Group Inc. CONTENTS OPPEIN Home Group Inc. OPPEIN Home Group Inc.ABOUT THIS REPORTThis report is the fifth sustainability report published by OPPEIN Home Group Inc. (referred to as"OPPEIN,""OPPEIN Group," "the Group," or "we"). Guided by the principles of objectivity,standardization, transparency, and comprehensiveness, the report systematically presents OPPEIN"ssustainability philosophy, practices, and key progress in sustainability initiatives during the reportingyear. We hope that by publishing this report, we can strengthen communication and engagement withboth internal and external stakeholders.Basis of PreparationThis report was prepared in accordance with the "Shanghai Stock Exchange Self-Regulatory Guidelinesfor Listed Companies No. 4—Preparation of Sustainability Reports (Revised January 2026)", the"Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14—SustainabilityReports (Trial)", and the "Shanghai Stock Exchange Self-Regulatory Guidelines for Listed CompaniesNo. 1—Standardized Operations", while also referencing the "GRI Sustainability Reporting Standards"(GRI Standards) issued by the Global Sustainability Standards Board (GSSB) and the "United NationsSustainable Development Goals" (SDGs) issued by the United Nations.Scope of the ReportIn line with our financial reporting scope, this report covers the Group’s ESG management approaches,initiatives, and performance throughout 2025, including operations at our Guangzhou headquarters andproduction bases in Tianjin, Qingyuan, Wuxi, Chengdu, and Wuhan. Selected content has been expandedto improve comparability and forward-looking perspective.Data SourcesFinancial data originates from the 2025 annual financial report, while other content is drawn from internalrecords and public sources. All monetary values are in RMB unless otherwise specified. The Board ofDirectors assumes responsibility for the report’s accuracy and completeness.Report AccessibilityThis bilingual (Chinese/English) PDF report is accessible on our official website (www.OPPEIN.com)and the Shanghai Stock Exchange platform (www.sse.com.cn). The Chinese version prevails in case ofdiscrepancies. For feedback or inquiries, please contact oppeinir@OPPEIN.com. OPPEIN Home Group Inc.Risk Management? Improving the Sustainability Governance System: The Group has established a four-tier governance structure covering the "supervisory level – decision-making level – management level – executive level" with clearly defined responsibilities to ensure the effective integration of ESG strategies into corporate operations. During the reporting period, the detailed rules of procedure for the Strategy and Sustainability Committee were further revised.? Enhancing Board Governance Effectiveness: The Group completed the transition to the fifth Board of Directors with members of diverse ages and professional backgrounds. The Supervisory Board was lawfully dissolved, and its oversight functions were incorporated into the Board"s Audit and Risk Management Committee, forming a new single-tier governance model that deeply integrates decision-making and oversight? Group Annual ESG Performance: The MSCI ESG rating was upgraded to BBB; the Wind ESG rating was upgraded to AA; the QuantData ESG rating was maintained at AAA; and the CSI Index ESG rating was maintained at AA.? Group Annual Disclosure Performance: The Group once again received an "A" rating in the Shanghai Stock Exchange"s 2024–2025 disclosure evaluation for Main Board-listed companies. Only 19% of companies listed on the Shanghai Stock Exchange received an "A" rating. Since 2018, the Group has earned an "A" rating for seven consecutive years. Only 22 companies on the Shanghai Stock Exchange—less than 1% of the total—have achieved this distinction for seven consecutive years.? Strengthening Business Ethics and Compliance Defenses: The Employee Integrity and Self- Discipline Pledge achieved a 100% signing rate. A total of 67 sessions of "Integrity Culture" training were delivered, covering all staff. The Group conducted 160 anti-corruption inspections on suppliers and distributors, covering 18 cities across 7 provinces. It also took an active part in OPPEIN Home Group Inc. industry anti-fraud forums to share compliance management experience and jointly build a sound integrity business ecosystem.Reduction? Significant Reduction in Greenhouse Gas Emissions: Through energy-saving upgrades and the adoption of clean energy, the Group"s total Scope 1 and Scope 2 greenhouse gas emissions amounted to approximately 153,575.67 metric tons of carbon dioxide equivalent, representing a year-on-year reduction of approximately 11.82%.? Breakthroughs in Clean Energy Adoption: The 19.23-megawatt photovoltaic (PV) projects expanded at the Chengdu and Wuhan sites were connected to the grid and began generating electricity. The total installed PV capacity at the Group headquarters and various sites reached consumption—a year-on-year increase of 33.31%. This saved 15,000 metric tons of standard coal annually and reduced carbon dioxide emissions by approximately 32,400 metric tons.? Green Manufacturing Receives Authoritative Recognition: Thanks to its outstanding practices in environmental management and comprehensive resource utilization, the Group was successfully included in Guangdong Province"s list of "Green Factories." As of the end of the reporting period, the Group held a total of one national-level and two provincial-level Green Factory certifications.? Exploring Product Carbon Footprint Management: The Group conducted a carbon footprint assessment for household gas stoves and published a report, identifying key emission reduction areas to provide a data foundation for future green product design.? Continuous Improvement in Resource Utilization Efficiency: Through the implementation of systematic material recycling initiatives—such as the reuse of scrap materials and software- optimized production scheduling—the comprehensive utilization rate of sheet materials increased by 5%–10%; total annual water withdrawal decreased by 7.07% year-over-year. OPPEIN Home Group Inc.? Deepening Sustainable Procurement and ESG Management: 100% of raw material procurement complied with strict certification standards 406 suppliers hold ISO 14001 Environmental Management System certification. A supplier evaluation system covering ESG dimensions was established, and ESG reviews were completed for 30 suppliers. The proportion of local suppliers and their share of total procurement value both exceeded 99%.? Comprehensive Digital Upgrade of the Supply Chain: We launched a major supply chain system reform, integrating all production bases and procurement organizations into a unified SRM system, thereby achieving online collaborative management of the entire supplier lifecycle and efficient two-way communication.? Strict Supplier Onboarding and Performance Management: We identified and selected 823 new suppliers throughout the year and completed on-site inspections of 124 suppliers. We conducted performance evaluations of 1,105 suppliers for all non-one-time purchases and terminated cooperation with 5 non-compliant suppliers based on the results.? Industry-Leading R&D System and Investment: Annual R&D investment reached RMB 909 million, accounting for 5.27% of operating revenue; the Group maintains a sizable R&D team of Group completed the transition of its IPD process from version 1.0 to 2.0 and established a tiered system comprising 1 overarching regulation, 6 supplementary regulations, 30 operational rules, 1 implementation guideline, and 7 processes significantly enhancing R&D responsiveness and cross- departmental collaboration efficiency.? Setting Industry Environmental Standards: As one of the primary drafting entities, the Group participated in formulating the "Formaldehyde-Free Wood-Based Panels and Their Products" group standard and the revision of three national standards for wood-based panels, continuously raising the industry"s environmental standards. The Group"s "Formaldehyde-Free 4.0" technology (Formaldehyde-Free Antibacterial Green Panel) has served over 1 million households to date.? Digital Factories Pioneering Smart Manufacturing: Leveraging five AI-powered smart factories in Qingyuan, Wuxi, Chengdu, Tianjin, and Wuhan, the Group has established a digital management OPPEIN Home Group Inc. system covering the entire value chain from "design to production, logistics, and service." Through laser-guided AGVs and intelligent automated warehouses, the Group achieves "no-touch" automated material flow and high automation in key processes, supporting the efficient daily production of 500,000 custom components and shortening custom order delivery cycles.? Systematic Improvement in Service Quality: We launched the "Service Summit Plan" to establish a three-tier service network comprising "Headquarters-Bases-Local Offices" and introduced the "Golden Butler" service with eight key commitments. An AI customer service tool was launched to provide dealers with 24/7 intelligent responses, handling an average of over 100 inquiries daily with a first-response success rate as high as 93%. During the reporting period, consumer satisfaction with basic services reached 8.59 points, and product quality reputation reached 8.79 points.Welfare Initiatives? Comprehensive protection of employee rights and benefits:: Social insurance coverage for employees reached 100%. The Group implemented a more flexible work schedule, including early dismissal on Fridays and during the winter. During the reporting period, working hours were further reduced by moving the Friday dismissal time from 5:00 PM to 4:15 PM, systematically decreasing employees" time on the job. Established a comprehensive employee care system covering major illness assistance, hardship aid, and charitable donations, with approximately RMB 86 million invested in employee welfare initiatives throughout the year.? Outstanding achievements in occupational health and safety management: With the goal of "zero casualties, zero environmental pollution, and zero occupational injuries," the Group comprehensively upgraded its EHS management system. During the reporting period, the signing rate of safety responsibility commitment letters, EHS training coverage, employee physical examination coverage, occupational hazard factor testing rate, and accident investigation and rectification rate all reached 100%; there were zero new cases of occupational diseases; the lost- time injury rate per million working hours decreased by approximately 37.84% year-over-year; 70 practical emergency drills were conducted throughout the year, continuously strengthening the safety defenses for all employees. OPPEIN Home Group Inc.? Streamlining democratic management and communication channels: We optimized the operational mechanisms of the Employee Representative Assembly and introduced a digital platform. During the reporting period, the Employee Representative Assembly collected 61 valid proposals and received over 14,000 constructive suggestions.? Philanthropic investments focused on education and social harmony: Through the Guangzhou OPPEIN Public Welfare Foundation, the Group continued to support education, rural revitalization, and other areas, actively fulfilling its corporate social responsibilities. During the reporting period, the Guangzhou OPPEIN Public Welfare Foundation made donations totaling RMB 3.3367 million for educational assistance and mentoring programs, and invested RMB 2.0714 million in support funds to aid rural revitalization projects. OPPEIN Home Group Inc.OPPEIN Home Group Inc., founded in 1994 (Stock Code: 603833), is headquartered in Guangzhou,Guangdong Province. It is China’s first listed enterprise in the customized home furnishing industry witha market capitalization exceeding RMB 100 billion. Starting from integrated kitchen cabinets, the Grouphas expanded its business portfolio to cover wardrobes, whole-home customization, wooden doors,bathroom products, soft furnishings, kitchen appliances, metal doors and windows, armored doors, andfurniture accessories, as well as integrated home solutions, forming a diversified industrial layout.Centering on integrated kitchen cabinets and wardrobes as flagship products, the Group has grown intoa comprehensive modern integrated home solution provider integrating R&D, production, and sales. TheGroup currently runs more than 7,300 stores globally, with its products available in 118 countries acrosssix continents. Establishment of OPPEIN 1994 Business income in 2025 RMB 17.232 billion Stores worldwide Over 7,300 Net profit in 2025 RMB 1.997 billionThe Group operates five smart manufacturing bases in Tianjin, Qingyuan, Wuxi, Chengdu, and Wuhan,with a total floor area exceeding 3.15 million square meters. Each base supports a supply system with aQingyuan, The OPPEIN Southern production base spans 994,000 sq.m, addressing South China marketChina demands while extending global reach.Tianjin, In July 2011, the Tianjin base began operation, and in 2013, its second phase was completedChina and operational.Wuxi, In 2014, OPPEIN signed a strategic agreement with Wuxi"s Huishan District Government.ChinaChengdu, OPPEIN"s Chengdu base, which required an investment of RMB 2.5 billion and spans 414China acres, began production.. In July 2021, OPPEIN began constructing the Central China Intelligent ManufacturingWuhan, Base in Wuhan"s Caidian District, aiming to increase high-quality production capacity andChina expand services globally. OPPEIN Home Group Inc. ? MSCI ESG Rating Upgraded to BBB ? Wind ESG Rating Upgraded to AA ? QuantData ESG Rating Maintained at ? CSI Index ESG Rating Maintained at AA AAA Awarding Organization Honors and Awards Jianggao Town People"s Government, Baiyun District, Guangzhou Guangzhou Baiyun Financial Development Chair Unit of the Listed Companies Liaison Promotion Association Committee Ministry of Industry and Information Technology of National-Level Green Factory the People"s Republic of China Guangdong Provincial Department of Industry and Provincial-Level Green Factory Information Technology Grade A Rating for Information Disclosure by Listed Shanghai Stock Exchange Companies "Key Partner Enterprise for the National "Trade-In" Program for Home Furnishings and Kitchen & Development Conference Bathroom Renovation" The 15th China Home Appliance Marketing Annual 2025 China Home Appliance Industry "Rock-Solid Conference Award" Liepin 2025 Guangdong Outstanding Employer of the Year Special Contribution Award for Promoting Chinese Guangdong Lingnan Poetry Society Poetry Culture Guangzhou High-Tech Industrial Development Zone Evergreen Cornerstone Award and Private Technology Park Management Committee OPPEIN Home Group Inc.Sustainable development underpins the building of a community with a shared future for mankind. As awell-reputed home furnishing brand, OPPEIN upholds the vision of "warming every home with love".The Group follows the social responsibility philosophy of "ooted in society" and giving back to society",optimizes its sustainable development management system, improves internal management standards,strengthens external ESG information disclosure, and strives to deliver long-term shared value for allstakeholders.The Group attaches great importance to sustainability governance and has built and continuouslyimproved a four-tier governance framework of supervision, decision-making, management and execution.It systematically incorporates sustainability principles into corporate strategy and daily operations. Withclear role allocation and top-down coordination, the framework provides a solid organizationalfoundation for identifying, assessing, managing and monitoring sustainability impacts, risks andopportunities, as well as formulating and implementing corresponding strategies and targets. The Group’s Board of Directors acts as the highest oversight body for sustainability governance and assumes ultimate accountability for all sustainability matters. Its core Supervisory Board of duties cover reviewing and approving the Group’s sustainability strategy, targets and Level Directors major policies, overseeing the management of sustainability impacts, risks and opportunities, ensuring effective operation of the sustainability governance framework, and granting final approval for the Sustainability Report. The Board of Directors set up the Strategy and Sustainability Committee as the core decision-making and advisory body. Staffed by professionally qualified directors, the Decision Strategy and Committee is tasked with researching the Group’s long-term development strategy and -Making Sustainability ESG matters and submitting proposals to the Board; guiding and reviewing the Level Committee identification and assessment of material sustainability issues; formulating ESG management strategies and targets; and supervising the progress of ESG initiatives, to fully integrate ESG governance into the Group’s overall strategy. OPPEIN Home Group Inc. To coordinate daily operations, the Group has set up a cross-functional ESG Working Group as the core sustainability management body. Led by senior executives, the Group consists of department heads across E, S and G fields. Its key duties cover identifying ESG and assessing material sustainability issues, formulating management goals, action plans Working Management and performance indicators per the decisions of the Board and the Committee, Group Level coordinating ESG implementation, data collection and progress tracking, and overseeing Sustainability Report drafting as well as domestic and international ESG rating responses. The Group’s business units, functional departments, and subsidiaries act as the frontline implementers of sustainability management. In line with established ESG strategies and Departments Executive targets, they embed relevant requirements into daily business and operations, deliver key and Level initiatives including energy conservation, emission reduction, workplace safety, Subsidiaries employee development, supply chain management and compliance, and regularly report progress and data to support the Group’s overall ESG goal achievementAdhering to the development philosophy of "innovation, coordination, green development, openness,and sharing," the Group focuses on six key areas: "sound operations, win-win cooperation, socialharmony, employee growth, innovation and exploration, and environmental protection." Wecontinuously implement our sustainable development strategy to build a new model of greendevelopment in the home furnishing industry. We integrate sustainability into our business managementactivities and continuously improve our corporate governance structure; we establish solid partnershipswith all stakeholders to build a world-class supply chain; we actively fulfill our social responsibilitiesand are committed to community development and public welfare; we regard talent as the primaryresource for corporate development and continuously provide a favorable work environment; we remaincustomer-centric in our continuous innovation and ensure the sustainable operation of our innovationplatforms; we strictly adhere to green and environmental standards to build integrated green productionsolutions. OPPEIN Home Group Inc. Sustainability Strategy Operations Sound Operations Fairness, Transparency, Cooperation, Freedom Partnerships Partnership Mutual Benefit and Trust, Moving Forward Together Balancing Social Responsibility and Profit, Pursuing Harmonious Society Social Harmony Development Appointing the Right People Based on Merit, Ensuring Everyone Fully Employees Employee Growth Utilizes Their Talents Building Home Furnishing with the Precision and Quality Standards of Innovation Pioneering Innovation Aircraft Manufacturing Eco-friendly With green as our theme and environmental protection as our Nature Commitment foundationWe align the sustainability strategy and practices with the UN 2030 SDGs, abide by the UN GlobalCompact’s ten principles, and sustain industry leadership in sustainable development.In 2025, the Group upgraded sustainability strategy framework tailored to business and industry realities,defining five core dimensions: Governance, Environment, Supply Chain, Products and Services,Employees and Society, alongside forward action plans. Guided by this framework, the Group has setclear sustainability targets and advanced solid implementation. Environmental Goals and Social Responsibility Governance System Actions Implementation Development The Group actively implements The Group advances the national The Group optimizes the national Dual Carbon strategy, Dual Carbon strategy, defines sustainable development sets clear environmental targets, environmental goals, and assesses management and corporate and assesses climate risks and climate risks and opportunities. We governance, while enhancing opportunities. We promotes promotes technical and process internal oversight and risk technological and process upgrades, expands clean energy control to ensure scientific and upgrades, increases clean energy application, advocates green rational decision-making. We use, advocates environmental concepts, and reduces energy use. also strengthens stakeholder awareness, and reduces energy Meanwhile, the Group boosts engagement, elevates consumption. The Group also resource circularity via integrated information disclosure quality advances resource recycling waste and production water and transparency, and underpins through full-scale waste and recycling systems, greatly steady business operations. production water recycling improving resource efficiency. systems, significantly improving resource utilization. OPPEIN Home Group Inc. UN Sustainable OPPEIN Category Progress Toward 2025 Goals Development Sustainability Goals Goals Establish and continuously improve a sustainability governance Optimizing framework covering the four levels of "oversight, decision-making, Sustainability management, and implementation." A Strategy and Sustainability Management Committee will be established under the Board of Directors to implement sustainability management policies and goals. We will continue to strengthen communication and engagement with Strengthen stakeholders through various channels, including investor meetings, Stakeholder employee representative conferences, supplier conferences, and dealer Communication conferences. Successfully complete the implementation of the 2024 equity Enhancing distribution and steadily implement the 2025 interim dividend plan. A Shareholder Returns cash dividend of RMB 1.5 billion is proposed for 2025. Refining the In accordance with the law, the Supervisory Board was dissolved, and Governance its supervisory functions were fully integrated into the Audit and Risk Structure Management Committee of the Board of Directors. We continue to refine our risk management and internal control systems, Strengthening Risk establishing internal control measures for high-risk ESG areas; we and Compliance conduct regular compliance training, holding 13 legal training sessions Management throughout the year totaling 50 hours and reaching a cumulative total ofGovernance We once again received an "A" rating in the "2024–2025 Information Ensuring the Quality Disclosure Evaluation Results for Listed Companies on the Shanghai of Information Stock Exchange Main Board," marking the seventh consecutive year we Disclosure have received an "A" rating for information disclosure from the Shanghai Stock Exchange. We have established a comprehensive business ethics training system Strengthening combining multiple formats, including "on-site training, online courses, Business Ethics company newsletters, and WeChat official account posts." Throughout Promotion the year, we conducted 67 sessions of "Integrity Culture" training, reaching 17,369 participants and achieving 100% training coverage. In accordance with the requirements for compliant marketing, ethical Responsible advertising, transparent marketing, and green marketing, we have Marketing continuously strengthened responsible marketing management and Management conducted site visits to business partners. The signing rate for the "Integrity and Self-Discipline Pledge" among Anti-Corruption employees reached 100%; throughout the year, 160 anti-corruption Management inspections were conducted targeting suppliers and distributors, covering 18 cities across 7 provinces. Strengthening The Group"s Guangzhou headquarters, Qingyuan, Tianjin, Wuxi, and Environmental Chengdu sites have all obtained ISO 14001 environmental management Management System system certification. Certification Identification and Fully identify the Group"s potential climate-related risks and Response to Climate opportunities, and establish a comprehensive management system Risks and encompassing "governance—strategy—impact, risk, and opportunity Opportunities management—indicators and targets." The 19.23 MW photovoltaic projects at the expanded Chengdu and Wuhan sites have been connected to the grid. The Group"s total installed Increasing the photovoltaic capacity across the headquarters and all sites now stands at Proportion of Clean 63.357 MW, with total electricity generation from photovoltaic projects Energy Use reaching approximately 49,644.28 MWh. The proportion of clean energy used by the Group has reached 15.18%, representing a year-on- year increase of 33.31%. Continuing to implement energy-saving and consumption-reductionEnvironment upgrades, the Group"s total energy consumption, which was equivalent Reducing Energy to 37,869.87 metric tons of standard coal, decreased by 10.88% Consumption and compared to the previous year; total greenhouse gas emissions (Scope 1 Carbon Emissions and Scope 2) amounted to approximately 153,575.67 metric tons of carbon dioxide equivalent, representing a year-on-year reduction of approximately 11.82%. We continued to increase investment in and promote water-saving Improving Water technologies, equipment, and projects utilizing non-conventional water Resource Utilization sources. Total water withdrawal for the year was 1,694,724.25 metric tons, a decrease of 7.07% year-over-year. Increasing The Group ensures the compliant disposal and discharge of all types of Investment in emissions generated during the production process. Pollutant Control Green and Eco-friendly Commitment concepts are integrated into the Establishing a Green entire product lifecycle, including green design, raw material selection, and Environmentally clean production, Eco-friendly Commitment products, streamlined OPPEIN Home Group Inc. UN Sustainable OPPEIN Category Progress Toward 2025 Goals Development Sustainability Goals Goals Friendly Production packaging, and low-carbon delivery; as of the end of the reporting System period, the Group had accumulated 1 national-level green factory certification and 2 provincial-level green factory certifications. We actively participate in various ecological and environmental Ecosystem and protection activities, remain vigilant regarding ecosystems and Biodiversity endangered species in the regions where we operate, and are committed Conservation to minimizing the negative impacts on biodiversity caused by emissions and resource use during our operations. We strictly ensure the environmental sustainability, safety, and integrity of the procurement process. Throughout the year, the legal traceability rate for timber and wood panel raw materials reached 100%, and the Strictly Regulating certification pass rate for raw materials subject to strict certification Procurement standards was 100%. The number of suppliers certified under ISO 9001 Processes or equivalent quality management systems was 741, and the number of suppliers certified under the ISO 45001 Occupational Health and Safety Management System was 484. The number of suppliers that have signed and agreed to comply with the company"s "Supply Chain Code of Conduct" is 2,089; 613 suppliers hold Supplier ESG sustainability certifications, and 30 suppliers have completed Management environmental and social reviews (ESG reviews); 18 supplier ESG training sessions were conducted.Supply Chain All production bases and procurement organizations under the Group Supply Chain Digital have been integrated into unified SRM management; leveraging the Management reform of the large-scale supply chain system, we are advancing the development of supply chain digitalization. Suppliers are subject to dynamic management across dimensions End-to-End Supplier including supplier onboarding, due diligence, tiered management, Management performance evaluation, suspension, and termination. We have established a comprehensive conflict minerals traceability Supplier Conflict management system to ensure that the mineral raw materials used in Minerals every batch of supplied products can be traced back to legally mined Management sources. Empowering We regularly conduct training and exchange sessions for internal and Supplier external supply chain personnel, holding 85 supplier training sessions Development throughout the year and training 132 suppliers. We continuously refine our quality management systems and strengthen Advancing Quality our quality culture. Both the Group and its subsidiary, Aowei Decorative Management Materials Co., Ltd., have obtained dual certification for the ISO 9001 Upgrades and IQNET quality management systems. Guided by ergonomic design principles, we continuously research safer Ensuring Product materials and production processes, strengthen the monitoring and Safety and Health management of hazardous chemicals, and ensure the safety of both design and manufacturing processes as well as chemical safety. The Group"s R&D investment reached RMB 909 million, accounting for Increasing 5.27% of operating revenue; cumulative R&D investment over the past Investment in R&D five years totaled RMB 5.089 billion, placing us at the forefront of the and Innovation industry; we launched 84 new R&D projects and brought 17 new product lines to market.Products and We are comprehensively improving product accessibility across brand Services awareness and trust, product diversity, affordability, service Enhancing Product accessibility, supply chain and delivery, after-sales service, and industry Accessibility support, committed to providing satisfactory products and services to a wider range of customers with diverse needs. We actively reformed our after-sales service system and established a Continuously rapid response mechanism for consumer feedback. The Group"s Improving the consumer evaluation trends have shown positive growth, with basic Customer Service service satisfaction reaching 8.59 points and product quality reputation System reaching 8.79 points. We continued to increase investment in information technology, with a Strengthening total of RMB 1.9402 million allocated to the development of our Information Security information security system. No apps related to our business were and Privacy publicly cited or removed by national regulatory authorities, and no data Protection breaches occurred. Ensuring Fair and The labor contract signing rate reached 100% for the entire year, withEmployees and Equitable no incidents of human rights violations or discrimination identified; the Society Employment company was awarded the honorary title of "2025 Guangdong Practices Outstanding Employer of the Year." OPPEIN Home Group Inc. UN Sustainable OPPEIN Category Progress Toward 2025 Goals Development Sustainability Goals Goals The annual performance management system coverage rate reached Enhancing Employee Compensation and Benefits of 5.62 days of paid annual leave per employee. Prioritizing Total employee training hours for the year reached 575,301, including Employee 481,038 hours of in-person training and 94,263 hours of online training, Development and with an average of 32.18 training hours per employee; RMB 5.508 Training million was invested in vocational training. A total of 246,449 hours of EHS training were conducted throughout the year, reaching 121,220 participants, with an EHS training coverage rate Ensuring Employee of 100%; no work-related safety incidents occurred, and the injury rate Occupational Health per million working hours decreased by 37.83% year-over-year; there and Safety were no work-related fatalities; and there were zero new cases of occupational diseases. Employee satisfaction stood at 80.11%, and employee engagement at Facilitating 80.41%; 1,414 employee suggestions were received throughout the year, Employee with a total of 1,411 suggestions (including those carried over from Communication and 2024) processed; 848 suggestions (Category A) were adopted and Suggestion Channels yielded results; the response rate and closure rate for requests on the online platform both reached 100%. We established a "2+3+X" public welfare brand matrix and continued to carry out distinctive public welfare activities such as rural revitalization and educational assistance. As of the end of 2025, the Guangzhou Increasing OPPEIN Public Welfare Foundation had received cumulative donations Investment in of RMB 51.5814 million and made public welfare expenditures of RMB Community Development and totaled RMB 3.3367 million for the year, while investments in rural Philanthropy revitalization projects amounted to RMB 2.0714 million; during the same period, four volunteer activities were conducted, involving 40 participants and accumulating 278 hours of service.The Group deeply recognizes that proactive and effective stakeholder engagement is key to identifyingsustainability impacts, risks, and opportunities, as well as driving continuous improvement within thecompany. The Group is committed to establishing a systematic, institutionalized, and routine stakeholderengagement mechanism. Through diverse channels and methods, the Group actively listen to, identify,and address the core concerns of all stakeholders, integrating the outcomes of these engagements into thecompany"s strategic decision-making and daily operations to achieve the creation of shared value.The Group has built a stakeholder communication system covering identification, communication,response and feedback. It clarifies stakeholder categories and core concerns, while standardizing regulartwo-way communication mechanisms. Stakeholder communication has been embedded in coremanagement systems, including the Investor Relations Management System, EnvironmentalManagement Manual and Quality Manual. These frameworks define communication content, channelsand approaches for shareholders and investors, and specify information exchange procedures with OPPEIN Home Group Inc.government bodies and local communities. Through regular disclosures, shareholder meetings, supplierand dealer assemblies, staff representative conferences and community outreach, the Group maintainsongoing dialogue with all stakeholders.The Group has established differentiated communication channels tailored to the characteristics andneeds of different stakeholders, and responds precisely to their core concerns. Communication Channels and Stakeholders Key Concerns Methods Corporate Governance Sustainability Governance Risk Management and Compliance Regulatory Filings Intellectual Property Protection Submission and Mailing of Information or Government and Climate Change Risks and Opportunities Reports Regulatory Water Use and Management Special meetings Authorities Energy Consumption and Management Surveys Carbon Emissions Management Disclosure Pollutant Control Occupational Health and Safety R&D and Innovation Corporate Governance Sustainability Governance Disclosure Risk Management and Compliance Annual General Meeting Business Ethics Earnings Briefings Shareholders Climate Change Risks and Opportunities Investor Engagement Activities and Investors Carbon Emissions Management SSE e-Interaction Platform Product Safety and Quality Official Website and Investor Relations Hotline R&D and Innovation or Email Occupational Health and Safety Climate Change Risks and Opportunities Green and Environmentally Friendly Official Website, Official Weibo, and Customer Production Service Hotline Product Safety and Quality Customers Social Media Engagement Protection of Customer Rights Customer Complaints and Follow-ups Information Security and Privacy Protection Satisfaction Surveys Responsible Marketing Raw Material Use and Management OPPEIN Home Group Inc. Communication Channels and Stakeholders Key Concerns Methods Training and Career Development Employee Representative Assembly Occupational Health and Safety Employee Feedback Service Center Employees Compliance and Equal Opportunity Employee Training Compensation, Benefits, and Performance Employee Activities Employee Communication and Grievances OPLINK Platform Supplier Management Supplier ESG Assessment and Support Corporate Ethics Supply Chain Reform Updates Climate Change Risks and Opportunities SRM Platform Responsible Sourcing Supply Chain Digital Platform Suppliers Product Safety and Quality Supplier Conference Occupational Health and Safety Supplier Visits Use and Management of Raw Materials Supplier Training Supplier Conflict Minerals Management Open Bidding Supplier ESG Management Survey Product Safety and Quality Official Website, Official Weibo, and Customer Information Security and Privacy Service Hotline Climate Change Risks and Opportunities Disclosure Distributors and Responsible Marketing Dealer Conference Other Partners Research, Development, and Innovation Dealer Visits Compliance, Employment, and Equal Dealer Training Opportunity Dealer Satisfaction Survey Community Engagement Occupational Health and Safety Compliance, Employment, and Equal Opportunity Official Website, Official Weibo, and Customer Climate Change Risks and Opportunities Service Hotline Water Use and Management Community Initiatives Community and Energy Consumption and Management Educational Assistance Environment Raw Material Use and Management Donations for Rural Revitalization Carbon Emissions Management Disclosure Pollution Prevention and Control Site Visits Waste Treatment Green and Environmentally Friendly Production Ecosystem and Biodiversity ConservationOPPEIN attaches great importance to identifying and assessing sustainability issues, which underpinseffective governance, precise strategy formulation, and scientific management. Based on GRI Standardsand the Dual Materiality principle in the Shanghai Stock Exchange’s relevant guidelines (Revised OPPEIN Home Group Inc.January 2026), it conducts annual systematic identification, assessment, and prioritization of issues usingthe previous year’s materiality analysis results, to pinpoint issues significantly affecting its long-termvalue creation, economy, society, and environment as the core of sustainability management andreporting. ? We conduct in-depth analyses of ESG-related laws, regulations, and development trends, benchmarking against 21 core topics in the Shanghai Stock Exchange’s sustainability report guidelines and GRI standards to ensure compliance and international comparability. ? We comprehensively review our business model, operations, strategy, and financing activities, extending analysis across the entire product lifecycle (procurement, production, logistics, sales, use and disposal) toIdentification identify actual and potential impacts. ? We monitor and analyze peer sustainability practices, referencing industry reports and rating methodologies to identify key and emerging industry issues. ? Through multi-dimensional screening, we have initially established an annual ESG sustainability issue database (covering climate change, product safety, supplier management, corporate governance, labor compliance and equal opportunity), laying the foundation for subsequent materiality assessments. ? We collected internal and external stakeholder feedback, combined with sustainability experts’ recommendations, identified and analyzed issue importance from the "financial materiality" and "impact materiality" perspectives, then prioritized them. ? Impact Materiality Assessment evaluates the company’s ESG performance impact on each issue, considering scale, scope, irremediable nature, and likelihood.. We collect extensive stakeholder feedback via surveys, roundtables, and interviews as a key assessment basis. Assessment ? Financial Materiality Assessment judges whether each issue will have material financial impacts on the Group’s business model, operations, strategy, finances, and financing costs in short-to-long term. We analyze potential financial risks/opportunities by integrating internal financial data, risk management and strategic planning, setting thresholds based on the Group’s financial management materiality levels. ? We integrate the results of the "impact materiality" and "financial materiality" assessments to create a "Double Materiality Matrix." OPPEIN Home Group Inc. ? The Group"s Board of Directors and its Strategic and Sustainability Committee are responsible for the final review and approval of the assessment process, methodology, and results for annual material issues, ensuring that the assessment is scientific, objective, and aligned with the Group"s overall strategy. ? The "Double Materiality Matrix" confirmed by the Board of Directors serves as the core basis for the GroupDisclosure to formulate annual sustainability strategies, targets, resource allocation plans, and internal assessment mechanisms. At the same time, this matrix directly determines the disclosure framework and key content of the Group 2025 Sustainability Report, ensuring that the report addresses the concerns of core stakeholders and complies with regulatory disclosure requirements. OPPEIN Home Group Inc.No. Category OPPEIN 2025 Materiality Issues Matrix Supply Chain Employees and Society OPPEIN Home Group Inc.OPPEIN has established a sound corporate governance system. On the basis of ensuring the independentoperation, mutual check and balances as well as effective cooperation of all governance entities, itcontinuously updates management systems and optimizes the governance structure, and deeply integratesthe ESG philosophy into the governance system. By improving the corporate governance system,enhancing risk control and compliance management capabilities, and strengthening effective supervisionover business ethics matters, including anti-corruption, anti-unfair competition and responsiblemarketing, OPPEIN ensures the stable and sound operation of the Group and creates long-term value forstakeholders such as shareholders, customers, and employees.A scientific and sound corporate governance mechanism serves as the foundation and guarantee for thesustainable and healthy development of an enterprise. The Group regards corporate governance as a long-term systematic project. In strict compliance with relevant laws, regulations and regulatory documents,and in light of its actual operation conditions, the Group continuously refines its governance structureand practices. By strengthening the operational efficiency of professional committees, standardizing thesenior management compensation system, consolidating the responsibility of information disclosure, andestablishing an efficient investor communication mechanism, we comprehensively elevate the overallgovernance level and build a healthy and sustainable corporate governance ecosystem.The Group has established a modern corporate governance structure consisting of the Shareholders"Meeting, the Board of Directors and its special committees, as well as the senior management. In strictaccordance with the "Company Law of the People"s Republic of China", the "Securities Law of thePeople"s Republic of China", the "Code of Corporate Governance for Listed Companies", the "ListingRules of the Shanghai Stock Exchange", and the "Self-Regulatory Supervision Guidelines for ListedCompanies of the Shanghai Stock Exchange No. 1 — Standardized Operation (Revised in May 2025)",the Group regularly updates its corporate governance institutional system.In terms of operational mechanisms, the Group holds meetings according to standardized procedures for OPPEIN Home Group Inc.the Shareholders" Meeting, the Board of Directors and its special committees, makes scientificmanagement decisions, and strengthens operational supervision. During the reporting period, the Grouptimely revised corporate governance documents, including the "Articles of Association of OPPEINGroup", the "Rules of Procedure for the Shareholders" Meeting of OPPEIN Group", the "Rules ofProcedure for the Board of Directors of OPPEIN Group", the "Working Rules of the Board Strategy andSustainable Development Committee of OPPEIN Group", and the "Working System for the Secretary tothe Board of Directors of OPPEIN Group", so as to continuously enhance the efficiency of corporategovernance. Corporate Governance ChartThe shareholders" meeting is the highest authority of the Company. In accordance with the "Guidelinesfor the Articles of Association of Listed Companies", the "Rules for Shareholders" Meetings of ListedCompanies and the Articles of Association", the Group has dynamically revised the "Rules of Procedurefor the Shareholders" Meeting of OPPEIN Group" and the "Detailed Rules for the Implementation ofCumulative Voting System" at the Shareholders" Meeting of OPPEIN Group, strengthening theinstitutional foundation of corporate governance. OPPEIN Home Group Inc.The shareholders" meeting exercises its functions and powers within the scope stipulated by laws,regulations, and corporate governance documents. All procedures, including the convening, proposalsubmission, notification, holding of meetings, voting procedures, and resolution formulation, areconducted in strict compliance with applicable laws, regulations, and regulatory requirements.Meanwhile, the eligibility of attendees and conveners of the shareholders" meeting is ensured to be legaland valid, the voting procedures are fair and transparent, and the resolutions are authentic, legitimate andeffective, thereby effectively safeguarding the legitimate rights and interests of all shareholders.The shareholders" meeting adopts a combined method of on-site registered voting and online voting,ensuring that all investors can fully exercise their rights and safeguarding shareholders" right to know,right to participate and right to vote. In addition, when the shareholders" meeting deliberates on majormatters affecting the interests of minority investors, the voting of minority shareholders shall be countedseparately, and the separate voting results shall be publicly disclosed, so as to fully protect their legitimaterights and interests.During the reporting period, the Group convened 5 shareholders" meeting sessions, including 1 annualmeeting and 4 extraordinary meetings, with a total of 19 proposals reviewed.The Board of Directors is the permanent decision-making body of the Company. In accordance with therequirements of the "Company Law" and the "Articles of Association", the Group has formulated the"Rules of Procedure for the Board of Directors" and the "Working System for Independent Directors",standardizing the conduct of the Board and its members, and ensuring the democratization andscientification of the Group’s decision-making. In 2025, the Group completed the re-election of membersof the Fifth Board of Directors. The Fifth Board consists of seven directors, including one Chairman, twoVice Chairmen, one employee director, and three independent directors (including one accountingprofessional). Directors serve a term of three years and may be re-elected upon the expiration of theirterm, while the consecutive tenure of independent directors shall not exceed six years. The average tenureof Board members stands at 6.22 years.During the reporting period, the Group held 14 meetings of the Board of Directors and reviewed a totalof 58 proposals, with the attendance rate of Board members reaching 100%.? Construction of the Independence of the Board of Directors OPPEIN Home Group Inc.In advancing the independence development of the Board of Directors, the Group always adheres tostandardized operation, strengthens the check and balance mechanisms, and continuously improves theobjectivity and credibility of the Board’s decision-making. By setting up special committees andintroducing the independent director system, the Group ensures that strategic decisions strike a balancebetween innovation and risk control. During the reporting period, independent directors accounted forcomply with the "Administrative Measures for Independent Directors of Listed Companies" and otherrelevant regulatory provisions, providing a solid institutional guarantee for the scientific decision-makingof the Board of Directors.? Construction of the Diversification of the Board of DirectorsIn the construction of the diversification of the Board of Directors, the Group has achieved a balancedallocation of Board members in multiple dimensions, including age, professional and culturalbackground. The current Board members have an age range of 45 to 61 years old, with professionalbackgrounds covering fields such as mechanical manufacturing, aerospace engineering, philosophy,literature, economics, and law; among them, many directors possess cross-industry and diversifiedmanagement experience. This diversified member structure has effectively improved the inclusivenessand forward-looking perspective of strategic planning. In the future, the Group will continue to optimizethe construction and evaluation of the diversification of the Board of Directors, and strengthen the in-depth integration of the Board"s global vision and industry insights.? Building the Effectiveness of the Board of DirectorsThe Group regards the building of the effectiveness of the Board of Directors as a core driver forimproving corporate governance standards. In strict compliance with the requirements of the newlyrevised "Company Law", the Group legally abolished the Supervisory Board in 2025, fully integratingsupervisory functions into the Audit and Risk Management Committee of the Board of Directors, andestablishing a new single-tier governance model featuring in-depth integration of decision-making andsupervision, clear rights and responsibilities, and efficient operation. In terms of capacity improvement,the Group continuously organizes special training for directors and senior management to further deepenawareness of standardized operation. In terms of operational mechanisms, the Group dynamically revisesand improves the "Rules of Procedure for the Board of Directors" and the working rules of each special OPPEIN Home Group Inc.committee, strengthens professional support, enhances the quality and efficiency of performance ofduties, and steadily elevates the standardized operation and scientific decision-making level of the Boardof Directors.The senior management of the Group consists of the General Manager, Deputy General Managers,Secretary to the Board and Chief Financial Officer, serving as the core force for the Company’s strategyimplementation and daily operation. The senior management takes overall charge of the Group’sproduction and business management, is responsible for organizing the implementation of Boardresolutions, annual business plans and investment schemes, formulating specific management systems,and exercising other functions and powers conferred by the "Articles of Association" in accordance withthe law. During the reporting period, the Group had 4 members in senior management, including 2 femaleexecutives, accounting for 50% of the total. This reflects the Group’s outstanding gender balance andinclusive governance philosophy in key leadership positions.The specialized committees under the Group’s Board of Directors perform their duties in accordancewith the "Articles of Association" and carry out specific work pursuant to their respective working rules,facilitating scientific decision-making and standardized operation of the Board. All members of thespecialized committees are directors, with their composition appropriately balanced in terms ofdiversified skills, experience and perspectives. In the Audit and Risk Management Committee, theNomination Committee, as well as the Remuneration and Evaluation Committee, independent directorsaccount for two-thirds of the membership and serve as conveners. The convener of the Audit and RiskManagement Committee is an accounting professional.During the reporting period, the Audit and Risk Management Committee held 4 meetings, theNomination Committee held 2 meetings, the Remuneration and Evaluation Committee held 2 meetings,and the Strategy and Sustainable Development Committee held 1 meeting, with a total of 24 proposalsreviewed. OPPEIN Home Group Inc. Specialized Key Responsibilities Members Committees ? Responsible for reviewing the Company’s financial information and its disclosure, as well as supervising and evaluating internal Chairman: and external audit work and internal control. Audit and Risk Wang Wei* ? Disclosing financial information in financial accounting reports Control Members: and periodic reports, as well as the internal control evaluation Committee Li Xinquan*, report. Zhang Xiuju ? Employing or dismissing accounting firms undertaking the Company’s audit business and the Chief Financial Officer. ? Conducting research and providing recommendations on the company’s long-term development strategies, major investment decisions, and environmental, social, and corporate governance (ESG) initiatives. ? Analyzing major investment and financing proposals requiring Chairman: Yao Strategy and Board approval under the Articles of Association and submitting Liangsong Sustainability recommendations. Members: Management ? To research sustainable development management objectives and Yao Liangbai, Committee material issues, participate in the assessment, screening and Lu Xiaodong* management of impacts, risks and opportunities of highly material sustainable development issues, and supervise the target setting of sustainable development-related risks and opportunities. ? Formulate assessment criteria for directors and senior management and conduct assessments. ? Formulate and review remuneration policies and plans for directors and senior management, including the remuneration determination mechanism, decision-making process, payment, Chairman: Compensation and suspension of payment, and recovery arrangements. Li Xinquan* Assessment ? Formulate or modify equity incentive plans and employee stock Members: Committee ownership plans, and verify the achievement of conditions for Wang Wei*, Yao incentive recipients to be granted and exercise rights and Liangbai interests. ? Provide opinions and suggestions on directors" and senior management"s participation in the stock ownership plans arranged for the proposed spin-off of affiliated subsidiaries. ? Formulate the selection criteria and procedures for directors and Chairman: senior management. Li Xinquan* Nomination ? Screen and review the candidates and qualifications of directors Members: Committee and senior management. Tan Qinxing, Lu ? Nominate or appoint/remove directors, and employ or dismiss Xiaodong* senior management.Note: * is an independent board member of the Group. OPPEIN Home Group Inc.The Group strives to build a trinity governance model of "responsibility-capability-value", and closelylinks the remuneration of directors and senior management with the Company’s operating results andlong-term value goals. In accordance with the "Code of Corporate Governance for Listed Companies",the "Articles of Association" and other relevant regulations, the Group has formulated the "OPPEINHome Group Remuneration Management Regulations" and the "Measures for the Remuneration,Assessment and Administration of Directors (Non-independent Directors) and Senior Management ofOPPEIN Home Group" in light of its business philosophy and actual management practices. It hasestablished a remuneration and performance management system aligned with job value, corporatedevelopment, and individual performance, and clarified the performance appraisal and evaluationprocedures for directors and senior management. The Board has set up a Remuneration and AssessmentCommittee, which discusses and reviews remuneration-related matters on an annual basis. Theremuneration of non-independent directors and senior management, upon deliberation and approval bythe Committee, shall be submitted to the Board of Directors or the General Meeting of Shareholders forreview and final decision in accordance with respective authority.During the reporting period, in conjunction with the re-election of the Board and in compliance with thelatest regulatory requirements, the Group further standardized the assessment and incentive arrangementsfor directors and senior management. By continuously optimizing the remuneration and incentive systemfor directors, supervisors and senior management, the Group implements a linkage mechanism betweenremuneration, individual performance and the achievement of job responsibilities targets for serving non-independent directors and senior management. In particular, ESG management is designated as a keyassessment indicator for directors and senior management in charge of corresponding business areas.This fully stimulates their awareness of innovation and transformation, facilitates the delivery of high-performance targets, improves the Group’s comprehensive performance in environmental, social andcorporate governance dimensions, and further promotes the Group’s sustainable development. OPPEIN Home Group Inc. Remuneration and Evaluation CommitteeThe Group attaches great importance to information disclosure, strictly fulfills its information disclosureobligations, and establishes and implements the information disclosure goal of " zero amendments, zerorevisions, and zero regulatory inquiries". By continuously improving the investor-centric disclosuremechanism, the Group constantly enhances information transparency and disclosure quality, and activelybuilds a solid defense line to safeguard the rights and interests of investors. In strict compliance with therequirements of regulations such as the "Measures for the Administration of Information Disclosure byListed Companies" and the "Shanghai Stock Exchange Listing Rules", the Group has formulatedinformation disclosure-related systems including the "Information Disclosure Affairs ManagementSystem" and the "Information Disclosure Suspension and Exemption System", established aninformation-based information disclosure process, realized comprehensive control and tracking ofinformation disclosure, pursued true, accurate, complete, timely and fair information disclosure, andensured that there are no false records, misleading statements or material omissions in informationdisclosure. In addition, the Company completes the registration, submission and management of insidersof inside information at all stages in accordance with regulations. Meanwhile, the Group focuses oninvestor needs, continuously improves the readability and effectiveness of announcements, and furtherenhances the Company"s information transparency.The Group continuously enhances the quality of information disclosure with high standards. On the onehand, it coordinates the balance between statutory disclosure and voluntary disclosure, strictly fulfills itsstatutory obligations of information disclosure while proactively responding to investor concerns, OPPEIN Home Group Inc.implements full and fair disclosure in accordance with the principle of "disclosing all that should bedisclosed and making transparent all that should be transparent", and creates an open, transparent andpredictable capital market image; on the other hand, it continuously improves the professionalism andstandardization of information disclosure, in-depth analyzes investors" reading habits and informationacquisition preferences, optimizes the content of announcements, and helps investors efficiently obtainthe Company"s operational dynamics and development strategies through a clearer structure and morepopular language.During the reporting period, the Group carried out high-quality information disclosure work, releasing atotal of 181 announcements and online documents, including 4 periodic reports (including the annualreport) and 1 ESG report, actively presenting the Company"s development dynamics and operating resultsto the market and conveying the Company"s value. The Group once again obtained an A-level rating inthe "2024-2025 Information Disclosure Work Evaluation Results for Main Board Listed Companies onthe Shanghai Stock Exchange", and the proportion of companies with A-level rating among Shanghai-listed companies was 19%. Since 2018, the Group has won the A-level rating for information disclosurework of the Shanghai Stock Exchange for seven consecutive years, and only 22 companies on theShanghai Stock Exchange have obtained the A-level rating for seven consecutive years, accounting forless than 1%.Investors are the foundation of capital market development. It is the listed company’s boundenresponsibility to drive high-quality development, enhance investors’ sense of gain, and enable them toshare the fruits of corporate growth. Upholding the investor-oriented philosophy, the Group deeplyintegrates the tenet of "respecting, revering and protecting investors" into corporate culture, activelylistening to investors’ views and responding to their concerns. In terms of institutional development, theGroup has formulated and implemented the "Market Value Management System", "Investor RelationsManagement System", and "News Communication and Crisis Public Relations Management Rules",establishing a standardized investor relations management system to smooth communication channelsand strengthen the protection of investors’ rights and interests. In terms of value return, the Groupdiligently fulfills its primary responsibility for high-quality development, and issued the "Three-YearShareholder Dividend Return Plan (2024–2026)", the "2025 Quality Improvement, Efficiency OPPEIN Home Group Inc.Enhancement and Shareholder Return Action Plan", and the "Announcement on the 2025 InterimDividend Plan". By clarifying future profit distribution arrangements and taking concrete actions, theGroup effectively boosts investors’ sense of gain and comprehensively elevates its investment value.The Group values every investor’s opinion and actively carries out various online and offline investorcommunication activities. Through the SSE E-Interactive platform, investor exchange meetings,shareholders’ meetings, roadshows and other channels, the Group delivers corporate value to the capitalmarket at multiple levels and via diverse approaches, enhancing investors’ understanding and recognitionand building a sound market reputation. The Group has also established an investor consultation andfeedback mechanism. For market-focused hot topics, it takes the initiative to engage with investors,collects their suggestions, and regularly reports to senior management via monthly reports, realizingefficient internal and external information communication.During the reporting period, the Group held 3 performance briefings. The Chairman, independentdirectors, Chief Financial Officer and Secretary to the Board interacted with investors through livestreaming and text communication. The cumulative online views of the live broadcasts exceeded 133,000.A total of 27 investor questions were answered on the SSE E-Interactive platform, achieving a "100%response rate". Investor Communication Channels SSE E-Interactive Platform: https://sns.sseinfo.com/ Investor Hotline: 020-36733399 Investor Relations Email:OPPEINir@OPPEIN.com OPPEIN Home Group Inc. Case: Holding the 2025 Half-Year Performance Briefing In September 2025, the Group held the "2025 Half-Year Performance Briefing". Yao Liangsong, Chairman and President of the Group, Lu Xiaodong, Independent Director, Wang Huan, Chief Financial Officer, and Ou Yingying, Secretary to the Board of Directors, attended the meeting. Within the scope of information disclosure compliance, they communicated and answered questions of general concern to investors, helping them gain a more in-depth and comprehensive understanding of the Company’s operating conditions.Since its listing, the Group has firmly established a commitment to shareholder returns, closelymonitored the capital market"s evaluation of the company"s value, and continuously improved the levelof cash dividends in combination with fund usage arrangements and operational development needs. Inaccordance with the relevant provisions such as the "Notice on Further Implementing MattersConcerning Cash Dividends of Listed Companies" and "Regulatory Guidelines for Listed CompaniesNo. 3 – Cash Dividends of Listed Companies", the Group has formulated a prudent and proactive cashdividend policy.As the first listed company in the industry to launch the "Quality Improvement and EfficiencyEnhancement Action Report, the Three-Year (2024-2026) Dividend Plan" (fixed amount) and formulatethe "Market Value Management System", the Group has strived to stabilize investors" return expectationsduring market fluctuations through share repurchases, dividend plans and other measures. The Groupreviewed and adopted the "Three-Year (2024-2026) Shareholder Dividend Return Plan", which clearly OPPEIN Home Group Inc.states that from 2024 to 2026, the total annual cash dividend to be distributed shall not be less than RMB(2024-2026) Shareholder Dividend Return Plan", the continuity and predictability of the company"s cashdividend policy have been institutionally strengthened, significantly enhancing investors" confidence andpredictability in the company"s future investment returns.During the reporting period, the Group successfully completed the implementation of the 2024 equitydistribution and steadily implemented the 2025 interim dividend plan, continuously optimizing theshareholder return system. Cash Dividend Performance of the Group in the Past Three Years KPI 2025 2024 2023 Cash Dividend per Share (RMB) (Tax Included) 2.477 2.48 2.76 Total Cash Dividends (RMB 100 Million) 15.00 15.02 16.70 Ratio of Total Cash Dividends to Net Profit Attributable to Parent Company Shareholders in the 75.14% 57.80% 55.00% Current Period (%)Faced with a severe and complex market environment, the Group adheres to a bottom-line mindset andcomprehensively upgrades its risk control system to consolidate the internal control line of defense. Ithas formulated systematic risk management strategies and strengthened the function of internal auditsupervision, enabling accurate identification and dynamic control of risks throughout the entireoperational process. Meanwhile, the Group incorporates environmental, social and governance (ESG)risks into its core governance scope. Through proactive response mechanisms, the Group safeguards itssustained, steady and high-quality development.The Group and its subsidiaries strictly abide by existing internal policies and supporting risk managementprocedures, including the "Risk and Opportunity Management System", "Risk and OpportunityIdentification and Evaluation Management Procedures", and "Internal Control Management System". OPPEIN Home Group Inc.Focusing on the development of the risk and compliance control system, the Group timely updates itsrisk and compliance control framework map.Guided by risk prevention and targeting management efficiency improvement through processoptimization, the Group integrates risk management into actual business workflows and clarifies theresponsible departments for risk and opportunity management. The Board of Directors has establishedan Audit and Risk Management Committee, which oversees and evaluates the Company’s internalcontrol. It is tasked with promptly identifying major internal control deficiencies and issuing earlywarnings against potential material risks. The Internal Audit Department and Supervision Departmenthave set up an internal control self-assessment working group to conduct internal inspections andsupervision, drive problem identification and rectification, and continuously enhance the Group’s overallbusiness coordination capability and risk resilience. All departments formulate methods for identifyingand responding to risks and opportunities, confirm inherent risks within their respective functions, andrecord evaluation results in the "Risk and Opportunity Identification, Analysis and Evaluation Form", soas to fully identify and address risks and opportunities arising from production and management activities.The Group sets strategic objectives in accordance with its risk appetite, and adopts a standardized riskcontrol process of risk factor identification — risk management planning — risk response evaluation —risk operation monitoring, committing to closed-loop management of risk incidents. Going forward, theGroup will further improve its risk assessment and early warning mechanism, comprehensivelystrengthen pre-event risk prevention and compliance oversight, and establish an abnormal risk disposalsystem. With comprehensive, systematic and in-depth strategies, the Group will ensure steady businessdevelopment in a legal and compliant manner, and provide solid legal safeguards for its sustainable andprosperous growth. Risk Factor Identification→Risk Management Planning→Risk Response Evaluation→Risk Operation Monitoring Closed-Loop Management of Risk EventsThe Group strictly complies with guiding norms such as the "Basic Norms for Enterprise InternalControl", strengthens the supervision and audit mechanism, enhances the ability to control theperformance of business and personnel, and further improves the level of internal control management. OPPEIN Home Group Inc.On this basis, the Group has comprehensively upgraded its contract management system, vigorouslypromoted the application of electronic seals, realized the electronic signing function for high-frequencycontract scenarios, and solidified the seal usage process through technical means, building a compliantsigning line of defense for the Group in the digital era. In promoting the integration of internal controlself-evaluation and ESG, combined with the Group"s business characteristics and internal controlconstruction, the Group divides the internal control self-evaluation business into 24 modules. Amongthem, the high-risk areas related to ESG mainly include 8 major modules: group governance, contractmanagement, sales and collection management, procurement and payment management, qualitymanagement, research and development management, human resource management, and work safetyand environmental protection management, all of which have corresponding internal controlmanagement measures or norms established. ESG-related internal control Key risk factors Management and control measures modules To improve the company"s institutional system, standardize production and operations, refine the Group Corporate corporate governance structure, conduct management Governance Governance Risks decisions and operational supervision in accordance with regulations, and continuously enhance the company"s governance level. To build a work environment that upholds integrity, fights corruption, and embodies an "Integrity Culture", Contract the Group incorporates integrity cooperation Business Ethics Risks Management commitments into procurement contracts, conducts regular internal audits of business ethics, and strengthens visits to suppliers and distributors. Strengthen the prevention of operational risks and daily Sales and Dealer Management management of distributors, timely judge the operational Collection Risks status of distributors, conduct regular assessments of Management them, and promptly handle their irregular behaviors. Build a supply chain system matching the general home Procurement and Supplier Management business model, strengthen the access review and Payment Risks performance evaluation of suppliers, and continuously Management practice responsible procurement. OPPEIN Home Group Inc. ESG-related internal control Key risk factors Management and control measures modules Establish an integrated quality assurance system, carry out a series of quality reform projects, optimize the Quality quality management process, and improve the quality Product Quality Risks Management management level throughout the entire product life cycle, including product R&D, production, logistics, and sales. Improve the research and development incentive mechanism, actively invest R&D funds in the Research and development of new technologies and new products, Development Risks introduce and cultivate R&D talents, and enhance independent R&D capabilities and employees" Research and innovation capabilities. Development Establish an intellectual property management system to Management conduct unified management of ownership, Intellectual Property confidentiality, data and infringement issues. Timely Protection Risks register intellectual property rights such as patents and trademarks to prevent the loss of the Group’s intangible assets. Improve labor systems covering employment, remuneration and performance appraisal, fully safeguard Human Resource Labor Relations employees" legitimate rights and interests, conduct Management Risks regular surveys on employee engagement and satisfaction, and maintain sound communication with employees through multiple channels. Actively carry out various emergency drills, regularly arrange occupational physical examinations for Occupational Health employees, eliminate occupational hazard factors in the and Safety Risks Work Safety and workplace, and minimize the occurrence of work-related Environmental injuries. Protection Continuously adjust the energy structure and optimize Management resource utilization. By promoting energy conservation Climate Change and consumption reduction across the Group and Risks adopting renewable energy, the Group enhances its resilience to climate change.Note: For the governance of climate change risks, please refer to the section on Climate Change Response in thisreport. OPPEIN Home Group Inc.The Group continuously strengthens the development of risk and compliance capabilities and enhancesthe operation and maintenance management of the risk and compliance platform. Meanwhile, it improvesthe organization and talent management for risk and compliance, conducts targeted enabling courses onrisk and compliance, strengthens employees’ awareness of risk prevention and compliance, and fullyconsolidates the foundation for the Group’s steady development.The Group regularly delivers contract and legal training targeting high-risk business scenarios andregulatory updates. Content spans electronic signing operations, legal interpretation, case studies, e-commerce compliance, lease contracts and official correspondence. It keeps employees updated on thelatest rules, strengthens legal awareness and underpins stable corporate operation. During the reportingperiod, 13 legal training sessions were held, totaling 50 hours with 230 participants. Directors,supervisors and senior managers also attended specialized training hosted by stock exchanges, listedcompany associations and the Company, covering periodic reporting, investment and M&A, and the newCompany Law, to elevate overall compliance governance capabilities. Case: Conducting E-commerce Product Compliance Training In January 2025, the Group’s Legal Department held targeted training on e-commerce product compliance risks. Participants included staff from home products, electrical e-commerce, accessories development and electrical planning departments. The training covered key compliance requirements on certification, labeling norms and entrusted cooperation risks, and clarified authority and liability boundaries for producers, manufacturers and entrusting parties. It helps prevent legal disputes arising from non-standard labeling and improper promotion, strengthens compliance awareness across business teams, and supports sound, regulated development of the Group’s e-commerce business. OPPEIN Home Group Inc.The Group attaches great importance to the construction of business ethics and has always adhered to themanagement philosophy of "Fairness, Transparency, Cooperation and Freedom". At the institutional level,it has established and improved an anti-corruption system and supervision mechanism, continuouslyimproved internal guidelines and codes of conduct, and strengthened the whistle-blower protectionmechanism to lay a solid foundation for compliance. At the operational level, it has deeply integratedfair competition and responsible marketing into the management system, resolutely eliminated falsepublicity, and resisted all improper behaviors that restrict market competition. The Group is committedto promoting the "Integrity-based Business" culture, building a normalized work order of "upholdingintegrity, fighting corruption and taking the right path", and striving to create a fair and healthy businessenvironment to escort the high-quality development of the Group.The Group upholds the core philosophy of honest operation and integrity in employment, and hasformulated a series of anti-corruption management systems including the "OPPEIN Home GroupIntegrity Management Regulations", "OPPEIN Home Group Reward and Punishment ManagementRegulations", and "OPPEIN Home Group Gift Surrender Management Norms", clarifying therequirements, responsibility division and punishment standards for anti-corruption work. All on-the-jobemployees are required to sign the "OPPEIN Home Group Cadre and Employee Integrity ConfirmationLetter" with the Group, strengthening employees" awareness of integrity in employment and building asolid integrity defense line through the combination of self-discipline and external supervision. TheGroup adopts a "zero-tolerance" attitude towards all forms of corruption, strictly adheres to the rigidpunishment principle of "Four Regardles" (regardless of position, rank, contribution or relationship),severely cracks down on various corrupt behaviors, and strives to build a comprehensive anti-corruptionsystem of "self-discipline and supervision of others, joint prevention and co-governance" to safeguardthe bottom line of the Group"s compliant operation.During the reporting period, the signing rate of the "Integrity Confirmation Letter" among all employeesof the Group reached 100%, effectively implementing the requirements of integrity in employment; atthe same time, relying on the solid results of anti-corruption work, it won the 2025 OPPEIN GroupSpecial Contribution Third Prize, the 2025 Anti-Fraud Alliance Integrity Style Creative Award, and the OPPEIN Home Group Inc.practice honest operation. ? All OPPEIN employees and pan-OPPEIN business partners have the obligation to report violations, disciplinary breaches, fraud, corruption, and illegal acts related to OPPEIN"s business that they are aware of, so as to jointly maintain the "fair and honest" management order and competitive environment inside and outside the Group. OPPEIN Home Group Inc. ? Complainants and informants shall file complaints and reports in accordance with the principle of seeking truth from facts and being responsible, and shall be liable for the authenticity of the reported incidents. They shall actively cooperate with the relevant work of the acceptance and investigation departments, and provide as detailed and complete information and evidence as possible to ensure the smooth progress of the investigation. ? Real-name complaints and reports are encouraged, and the content of complaints and reports must be objective and true. It is strictly prohibited to falsely accuse others or intentionally disrupt the normal development of work and business in the name of complaints and reports. For real- name informants, valid contact information shall be provided; for anonymous informants who have demands for reward, they shall provide information that can identify their identity and valid contact information. ? We encourage complaints and reports to be submitted under real names. The content of such complaints and reports must be objective and truthful; false accusations against others are strictly prohibited, as is the intentional disruption of normal work and business operations under the pretext of filing a complaint or report. Real-name reports must include valid contact information; anonymous reporters who request a reward must provide information that can verify their identity and valid contact information. Collaborative OPPEIN has established joint prevention mechanisms with the Baiyun Mechanisms with Law District Public Security Bureau and Baiyun District People"s Procuratorate. Enforcement Internal Cross- The Audit Department and Supervision Department operate independently Departmental from all business units, subsidiaries, and marketing systems, and work Supervision closely to monitor corporate misconduct, implement preventive measures. Regular Reporting The Supervision Department receives whistleblowing reports, conducts thorough investigations into corruption cases, and regularly discloses findings. Transparent OPPEIN The company ensures accessible reporting channels for all employees, Platform suppliers, and dealers while continuously expanding internal and external oversight mechanisms. Employee Integrity All employees are required to sign the Integrity and Self-Discipline Pledges Commitment Letter as an appendix to their employment contracts. Anti-Corruption "Integrity Culture" awareness campaigns are conducted across production Training bases, business units, and functional departments to promote ethical corporate culture. OPPEIN Home Group Inc. International Anti-Corruption Day National Day and Mid-Autumn Festival Anti- Promotion Corruption PromotionWe vigorously promote the Group"s "Integrity Culture" in the pan-OPPEIN field and continuouslystrengthen the business ethics supervision of partners. In accordance with the OPPEIN Home GroupSupply Chain Management System, we have improved the integrity evaluation and management systemfor upstream and downstream suppliers and distributors, and improved the a reward and protectionmechanism for complaint and reporting. At the same time, we have increased the frequency of visits tosuppliers, distributors and other business partners, continuously publicized the Group"s anti-corruptionpolicies and procedures, and in-depth explored and collected clues about violations and disciplinaryactions such as corruption involving key employees of the Group and business partners, andcomprehensively and timely investigated and punished personnel involved in corruption.During the reporting period, the Group"s anti-corruption inspections covered 18 cities in 7 provinces,with a total of 160 inspections carried out; among them, 72 inspections were conducted on suppliers andof business partners. OPPEIN Home Group Inc. Case: Uniting Forces to Combat Corruption and Build a Clean Business Environment In October 2025, the Group participated in the 5th Supervision, Audit and Anti-Corruption Forum co- hosted by Southwest University of Political Science and Law and the Anti-Corruption Alliance. A total of 170 experts and practitioners from universities, enterprises, and legal and audit supervision fields gathered together. At the forum, the Director of the Group"s Audit Department delivered a speech, sharing the latest industry trends and compliance management trends, clarifying the strategic positioning and development trends of anti-corruption work, and also providing practical and operable risk prevention and control solutions for enterprises through actual cases.Our Group actively creates a fair and impartial operating environment, strictly abiding by relevant lawsand regulations such as the "Anti-Unfair Competition Law of the People"s Republic of China", the "Anti-Monopoly Law of the People"s Republic of China", the "Anti-Money Laundering Law of the People"sRepublic of China", and the "Several Provisions on Prohibiting Acts of Infringing Trade Secrets". Wehave formulated the "OPPEIN Home Group Trade Secret Management Regulations" to prohibitemployees from obtaining trade secrets through improper means that violate the principle of good faithor business ethics. We have also formulated the "OPPEIN Home Group Dealer Cross-Scope OperationManagement Regulations" to clarify the handling standards and penalties for dealers" cross-region, cross-category, cross-channel operations, malicious interference, vicious competition, malicious slander andother behaviors. In addition, we have formulated the "OPPEIN Home Group Brand Infringement andCounterfeiting Handling Management Specifications" to crack down on various unfair competitionbehaviors such as counterfeiting and imitating our Group"s products; and formulated the "Ten OPPEIN Home Group Inc.Prohibitions for Personnel of the Supply Chain Management Center of OPPEIN Home Group inInteractions with Suppliers" to strictly prohibit improper interest transfer between OPPEIN personneland suppliers or dealers. The Group focuses on creating a reassuring consumption environment,protecting the legitimate rights and interests of consumers and partners, and maintaining the faircompetition order of the market.In terms of anti-monopoly and fair competition risk control, the Group first identifies compliance riskpoints accurately by sorting out and optimizing local systems and combining with business practices.Then, it conducts internal due diligence on various business lines to standardize the use of documentsand avoid potential monopoly risks. At the same time, the Group smooths the complaint channel,encourages employees and related parties to report unfair treatment, irregular disposal and illegal acts,and jointly maintains a "fair and open" competitive order. In addition, through centralized cleaning ofonline infringement and standardization of offline store operations, the Group has effectively defendedits brand image and market order.During the reporting period, our Group had no legal lawsuits related to anti-unfair competition and anti-monopoly.We firmly oppose any form of tax corruption, always fulfill our tax obligations with an attitude ofintegrity, transparency and cooperation, and are committed to creating maximum economic contributionfor the locations where we operate, continuously supporting the high-quality development of localeconomies. We strictly comply with the tax-related laws and regulations of each operation location,formulate the "OPPEIN Home Group Tax Management System", establish a sound tax managementsystem, and adopt effective tax risk assessment and assessment mechanisms to early warn, control andrespond to tax risks in advance. At the same time, we standardize the accounting, declaration, evaluationand other behaviors of tax-related businesses, requiring each legal person company to timely declare alltax returns to the local competent tax authority and pay taxes in accordance with regulations. In addition,we consolidate the foundation of tax management by spot-checking the tax risk assessment reports ofeach legal person unit and carrying out daily training, actively avoid and prevent tax risks, and improvethe level of tax management. OPPEIN Home Group Inc.During the reporting period, our Group complied with the requirements of national tax, accounting andother laws and regulations, obtained the tax payment compliance certificate issued by the competent taxauthority, and the total tax payment was 1.678 billion RMB.We welcome reports from internal staff, suppliers, distributors and partners regarding misconduct,irregularities, fraud and corruption. Formulated under the OPPEIN Home Group Complaint andReporting Management Regulations, a standardized reporting mechanism covers the entire industrialecosystem. The Supervision Department, Marketing Supervision, Customer Service and Supply ChainInspection teams jointly oversee complaint handling, protecting whistleblower rights and corporateinterests. During the period, the Group received 126 report clues, all fully verified and closed, achievinga 100% disposal rate. Complaint and reporting channels ① Chairman"s Whistle-blowing Email: opceo@OPPEIN.com ② Supervision Department Whistle-blowing Email: opjcb@OPPEIN.com ③ Supervision Department Whistle-blowing Hotline: 020-36733955 ④ Supervision Department WeChat Reporting Channel: 13538731145 ⑤ WeChat Complaints and Reporting Platform: "Integrity OPPEIN" official account ⑥ Address for receiving visits and letters: Supervision Department of OPPEIN Group (Room 506, Department of Qingyuan Base, Building G, 3rd Floor, Area A. OPPEIN Home Group Inc.The Group requires the receiving department to promptly dispose of the received complaint and reportinformation. For the filed complaint and report items, special personnel are immediately assigned toconduct investigation and handling. In daily supervision work, we adhere to the principle of professionalorientation and establish a communication mechanism based on professional division of labor. Forviolations and disciplinary violations within the scope of responsibilities of professional supervisiondepartments and full-time supervision personnel, which also fall within the scope of the Group"s publicsupervision department, we handle them in accordance with the principle of "whoever discovers,handles". For the complained objects verified to have acts such as fraud, corruption and unfaircompetition, we strictly implement the principle of "four irregardless" (regardless of position, seniority,contribution and relationship), handle them in accordance with system specifications, and feed back theinvestigation results to the reporters. Principles for Handling Complaints and Reports ① Confidentiality Principle ② Recusal Principle ③ Integrity and Self-Discipline Principle ④ Principle of Investigating Every Complaint and Punishing Every Violation ⑤ Protection and Reward PrincipleWe continuously improve the confidentiality mechanism for complaints and reports, resolutely protectthe legitimate rights and interests of whistle-blowers, clarify the confidentiality obligations of acceptancepersonnel, investigation personnel and relevant insiders, and prohibit disclosing reporting information torespondents, their affiliated units and interested parties. After receiving complaint and report information,regulatory authorities at all levels shall strictly file cases for handling according to business categories ortransfer them to the corresponding business departments for handling, and carry out work in accordancewith professional ethics and the Group’s confidentiality system.We strictly prohibit retaliation against whistle-blowers. If any violation occurs, the SupervisionDepartment, together with the departments responsible for handling complaints and reports, will jointlyconduct a special investigation into retaliation in accordance with the "Integrity ManagementRegulations" and the "Reward and Punishment Management Regulations". Once verified, we will OPPEIN Home Group Inc.propose to the Group to impose severe penalties on the relevant personnel who carried out the retaliation.If the retaliatory behavior involves illegal or criminal acts, it will be transferred to the judicial authoritiesfor handling; if the complainant or whistleblower suffers any form of or degree of retaliation, they shouldfeedback to the Supervision Department and the case acceptance department in a timely manner. Complaint and Reporting Guarantee Mechanism ①Guarantee for complaints and reports from OPPEIN employees: position adjustment and preferential welfare policies. ② Guarantee for complaints and reports from suppliers: immunity, cooperation guarantee and cooperation upgrade guarantee. ③ Guarantee for complaints and reports from dealers: immunity, agency right guarantee, dealer economic and interest guarantee, resource support and opportunity support."Integrity Culture" is an important part of OPPEIN"s corporate culture. Taking the "OPPEIN HomeGroup Integrity Management Regulations" as the code of conduct, the Group has established andimproved a sound system and supervision mechanism, investigated and penalized irregularities anddisciplinary violations, promoted and publicized the concept of integrity-based business, created a culturethat promotes integrity, built a work order of upholding integrity, combating corruption and followingthe right path, and consolidated the ideological defense line for cadres and employees to resist corruptionand degeneration.The Group has carried out multiple integrity culture promotion activities in various production bases,business divisions and functional departments. Personnel in key positions at all levels shall participate inat least two centralized and recorded "integrity culture" training sessions every year, and the relevanttraining records shall be included in the employees" annual training assessment. By building acommercial ethics training system combining multiple forms such as "on-site training + online courses+ company internal journals + official account tweets", the Group has incorporated content such as anti-corruption, fair competition and responsible marketing into training documents, guiding all employeesto establish the professional awareness of working with integrity and starting a business with integrity,and preventing serious violations and disciplinary violations. During the reporting period, the Group OPPEIN Home Group Inc.carried out a total of 67 Integrity Culture training sessions, covering 17,369 person-times, with a trainingcoverage rate of 100%. Training Objects Training Focus Take "Integrity Culture" education as an important part of induction training. Newly Recruited The Group and the audit & supervision departments of each base shall promptly Employees provide relevant training and promotion to new employees. Launch special lectures on "Integrity Culture" for management cadres. Cadres Management are required to attend no less than two training sessions each year, and their Cadres training records shall be incorporated into the annual training assessment. Conduct "Integrity Culture" training via supplier conferences, and continuously Suppliers disseminate the Group’s core values of Fairness, Openness, Cooperation and Freedom. Theme Training: "Uphold Righteousness, Achieve a Win-Win Future" "Integrity Culture" promoting scene: "Integrity Culture" promoting scene: Wuxi Chengdu Base Base OPPEIN Home Group Inc. "Integrity Culture" promoting scene: "Integrity Culture" promoting scene: Tianjin Base Wuhan BaseTo ensure the compliance of all marketing activities, in accordance with the "Advertising Law of thePeople"s Republic of China" and other relevant laws and regulations, and in combination with theCompany’s actual conditions, the Group has formulated internal management systems including the"OPPEIN Home Group Ten Prohibitions and Supervision Management Regulations for MarketingPersonnel", the "OPPEIN Home Group Dealer Terminal Operation Management Regulations", the"OPPEIN Overseas Retail Dealer Management Measures", and the "OPPEIN Home Group AdvertisingCompliance Guidelines".These regulations standardize the marketing activities conducted by the Group and its subsidiaries withinthe administrative region of China (excluding Hong Kong, Macao, and Taiwan regions), continuouslyraise the compliance awareness of marketing staff, and strengthen targeted marketing management.While pursuing commercial interests, the Group fully takes into account the long-term interests ofconsumers, society and the environment, and ensures that all marketing activities are transparent,integrity-based and socially beneficial. OPPEIN Home Group Inc. Responsible Marketing Where marketing content involves life and health, it shall comply with Compliant Marketing corresponding national standards; where it involves the rights of others, prior written consent shall be obtained from the right holder. Advertising and promotion shall be conducted truthfully and lawfully. It Ethical Advertising shall not contain false or misleading content, nor deceive or mislead consumers. Any statement regarding the performance, function, origin, usage, quality, composition, price, manufacturer, validity period or promises of products, Transparent Marketing or the content, provider, form, quality, price and promises of services, shall be accurate, clear and unambiguous. Promote environmentally friendly products to reduce resource waste and Green Marketing pollution; adopt sustainable production and packaging methods to lower the carbon footprint of products.Dealers of the Group shall strictly conduct outdoor advertising placement in accordance withstandardized procedures and management requirements stipulated in the "OPPEIN Home Group OutdoorAdvertising Placement Management Regulations" and other relevant advertising specifications.The Legal Department timely reviews potential risks in advertising business cooperation, and verifiesthe compliance and legality of advertising materials. The Customer Service & Marketing SupervisionCenter, together with the Audit Department and Supervision Department, conducts unscheduled spotchecks on the release of advertisements. Violations will be penalized in accordance with the "OPPEINHome Group Reward and Punishment Management Regulations" and the "OPPEIN Home Group DealerSubsidy Inspection Management Regulations". OPPEIN Home Group Inc. OPPEIN has embedded green development into all business aspects, advancing Eco-friendly Commitment enterprise construction and striving to build a green, low-carbon and circular development system. We formulated the "Environmental Protection Management Regulations," clarifying environmental responsibilities of all management levels and advancing the environmental management system. We also promote energy-saving and emission-reduction upgrades, increase environmental investment, embed low-carbon concepts into the entire manufacturing process, and steadily improve the environmental performance. The Group complies with national and local environmental regulations, implementing an environmental management system based on the principles of "protection first, prevention-oriented, comprehensive management, public participation, and liability for damage". The Group has established an environmental management system, built a comprehensive mechanism via risk management, process-based approach and PDCA cycle, and continuously improves and verifies the system’s performance and effectiveness. We attach great importance to environmental pollution issues and embed environmental protection into the Group’s sustainable development strategy. Combining operational status, product features and service attributes, we have formulated an environmental policy to guide the efficient and orderly operation of the environmental management system. We further strengthen pollutant emission control, advance resource recycling and reuse, and fully underpin the achievement of green development goals. During the reporting period, our environmental management targets were achieved at a 100% rate. Environmental Policy Environmental Management ObjectivesProtect the environment and prevent pollution; ? 100% compliance rate for emissions of airConserve energy, reduce emissions, and promote clean pollutants, noise, and wastewaterproduction; ? 100% solid waste recycling rateComply with regulations and pursue continuous improvement. ? Zero fire incidents throughout the year OPPEIN Home Group Inc.As the industry’s first holder of ISO 14001 Environmental Management System and Eco-Label productcertifications, we take environmental protection as a core operational principle. With standardizeddocuments and rigorous processes, we keep environmental management work regulated, controllable andconsistently compliant.Under the Group’s environmental and sustainable development strategy, we have built a three-tier EHSgovernance structure with clear accountability, covering leading, central and divisional managementbodies, featuring well-defined roles and division of labor division. Following the principles of "dualresponsibility system" and "line managers are accountable for environmental performance", we assignenvironmental management duties to coordinate overall EHS work. The framework spans manufacturing,marketing and public support systems, embedding EHS risk management into daily production andoperations. Through ongoing environmental risk identification, assessment and control, we reduce risksof injury, fire, explosion and pollution, and cultivate a corporate culture focused on safety, environmentalprotection and health. Three-Tier Environmental Management Structure Led by the Group"s Executive President, this is the highest decision-making body for environmental affairs. It is responsible for approving the Group"s Leadership EHS Committee environmental policy and medium- to long-term strategies; setting and Structure monitoring progress toward key environmental objectives; and assessing significant environmental risks and opportunities. Responsible for daily operation and coordination of the environmental management system, its core duties cover formulating and revising environmental management systems and procedural documents, Central EHS Management Management coordinating the collection, monitoring and analysis of Group-wide Body Department environmental data, arranging internal audits and management reviews while responding to external audits, and driving the implementation of environmental management requirements across all sites and departments. OPPEIN Home Group Inc. Three-Tier Environmental Management Structure Each site appoints an Environmental Management Officer to ensure full EHS Management implementation of environmental requirements across production, R&D, Implementing Departments at supply chain and office operations. Relevant departments undertake daily Units Each Site and Functional work including environmental factor identification, operational control, Departments emergency response and data reporting.Guided by the “OPPEIN Group Environmental Management Manual," we formulated supportingprocedural documents and work instructions, including the “Environmental Protection ManagementRegulations,” the “Safety, Environmental Protection, and Occupational Health and Safety (EHS)Management Guidelines,” the “Environmental Factor Identification and Control DeterminationProcedure,” and the “Environmental Monitoring and Measurement Control Procedure.”During the reporting period, we optimized and revised the "Environmental Management Manual",updated environmental management organization and scope, supplemented climate change impactcontent, built a full green industrial chain, advanced standardized environmental management systemdevelopment, and comprehensively strengthened environmental management capacity.We strive for excellence, and several of our major production units have obtained environmentalmanagement system certification in accordance with the GB/T 24001-2016/ISO 14001:2015 standard,demonstrating the Group"s unified high-standard management across all operations.As of the end of the reporting period, the Group"s Guangzhou headquarters, Qingyuan Base, Tianjin Base,Wuxi Base, and Chengdu Base have all passed environmental management system certification. OPPEIN Home Group Inc. Group Environmental Management System Certification Guangzhou Wuxi Base Chengdu Base Tianjin Base Headquarters and Qingyuan BaseThe Group"s EHS Management Department enforces the "Compliance Obligations ManagementProcedure" to proactively identify, acquire, and update applicable laws, regulations, and site requirementsincluding the "Pollutant Discharge Permit", and performs regular compliance assessments. We governthe full process of design, production and service under the "Operational Control Procedure" andsupporting protocols covering wastewater, exhaust gas, solid waste, noise and chemical management.We ensure the effectiveness of the environmental management system and drive continuous improvementthrough a multi-tiered audit, review, and oversight mechanism.? Monitoring, Measurement, and AnalysisIn accordance with the "Environmental Monitoring and Measurement Control Procedure," we regularlymonitor air emissions, wastewater, noise, energy consumption and waste disposal indicators. We file the"Environmental Operation Checklist," the "Statistical Table on the Achievement of EnvironmentalObjectives and Management Plans" and periodic evaluation results. We adopt energy and EHS digitalplatforms to boost data collection and analysis efficiency, supporting management decision-making.? Internal AuditsIn accordance with internal regulations, including the "OPPEIN Group Internal Audit Control System,"we formulate a dedicated "Audit Implementation Plan." We carry out annual environmental managementsystem internal audits covering all system clauses and departments, verifying compliance with GB/T OPPEIN Home Group Inc.implementation and maintenance. For audit nonconformities, relevant departments shall formulatecorrective measures and complete follow-up verification.? Management ReviewWe conduct an annual review of the Group"s environmental management system per the "OPPEIN GroupSystem Management Review System." Held after internal environmental audits or prior to third-partyaudits, the review ensures the system’s ongoing suitability, adequacy and effectiveness. Managementreview frequency is increased amid major external changes or requests from environmental authoritiesand certification bodies.? External Verification and CommunicationWe actively accept third-party surveillance audits to sustain environmental management systemcertification validity, maintain standard compliance and secure expected operational outcomes.Meanwhile, under the "Information Exchange Control Procedure," we communicate openly withemployees, local communities, authorities, suppliers and customers on environmental performance, andrespond to stakeholder concerns including climate change via surveys and forums.During the reporting period, we followed sustainability reporting guidelines from the Shanghai StockExchange and steadily optimized environmental disclosure content.? Daily Monitoring, Correction, and PreventionWe continuously monitor and rectify violations, pollution incidents and inadequate daily EHSimplementation. Any acts breaching the "OPPEIN Group Environmental Protection ManagementRegulations" or relevant laws and regulations that cause adverse consequences will be dealt with per the"OPPEIN Group EHS (Safety, Environmental Protection, Occupational Health) Assessment andIncentive Management Regulations" and the "OPPEIN Group Reward and Punishment ManagementRegulations".The Group EHS Management Department and site EHS branches supervise environmental managementsystem implementation via routine inspections and special audits. Non-conformities, potential risks andstakeholder complaints are handled in compliance with the "OPPEIN Group Non-conformity andCorrective Action Management Regulations". We conduct root cause analysis, roll out corrective andpreventive measures, verify their effectiveness, and establish a closed-loop mechanism to preventrecurrence. OPPEIN Home Group Inc.We regard environmental risk management as a critical safeguard for achieving green and sustainabledevelopment. We proactively identify, scientifically assess, and effectively control various environmentalrisks in our production and business operations to minimize the occurrence of environmental pollutionincidents. We also ensure rapid and effective responses in emergencies to protect the ecologicalenvironment and community safety.We have set up a regular environmental risk identification and assessment mechanism to screen potentialenvironmental impacts and compliance risks. We fully identify risk substances and units in productionand operations, focusing on flammable, explosive and toxic hazardous chemicals including paints,solvents and adhesives, natural gas and other energy media, hazardous waste such as waste paint residue,waste activated carbon and oily wastewater, as well as exhaust and wastewater treatment facilities. Foridentified risk sources, we evaluate the probability, severity and scope of environmental impacts andcarry out preliminary risk classification to support targeted management, including assessing theatmospheric, surface water and soil impacts of chemical leaks, and emission non-compliance risks fromenvironmental facility malfunctions.We keep track of updates to national and local environmental laws, regulations, and policies, regularlyassess operational compliance, and identify potential compliance risks and improvement opportunities.Guided by the principles of "prevention first, combining prevention with control, rapid response, andeffective containment," we have built a Group-wide environmental emergency management systemcovering pre-incident preparedness, on-site response and post-incident recovery. The system copes withmajor environmental risks including heavy air pollution, fires, chemical leaks, environmental facilitybreakdowns and extreme weather, to prevent and mitigate sudden environmental incidents as well assecondary impacts, safeguarding environmental safety and community stability.All production bases formulate severe air pollution response plans as required by local environmentalauthorities and complete official review and filing. Once a severe air pollution warning is issued, allbases follow governmental emergency arrangements and production adjustment requirements, cutting OPPEIN Home Group Inc.emissions of VOCs, nitrogen oxides, particulate matter and sulfur dioxide to lower operationalenvironmental impacts.To handle fires, chemical leaks, environmental facility failures and avoid secondary pollution, we haveimproved the standardized emergency management system. Each production base develops the"Emergency Response Plan for Sudden Environmental Incidents" in line with the "EnvironmentalManagement Manual" and the "OPPEIN Group Fire Safety Management Regulations," and sets up anemergency command mechanism with clear procedures, responsibility allocation, disposal measures andinformation reporting routes. We conduct regular inspections and maintenance of emergency facilitiesand materials to guarantee availability and performance. After drills or actual incidents, we assess planeffectiveness and revise plans timely in light of evaluation outcomes, organizational adjustments andregulatory updates, steadily strengthening emergency disposal capacity and reducing environmental andcommunity impacts.During the reporting period, we compiled the "OPPEIN Home Group Inc. Emergency Response Planfor Extreme Weather Disasters" and carried out multiple targeted emergency drills to promote practicalimplementation. Emergency Response Drill for Hazardous Chemical Leaks OPPEIN Home Group Inc. Training on Responding to Extreme Weather ConditionsWe thoroughly implement strategies for green production and energy conservation, embedding theconcept of green and energy-efficient practices across all aspects of our operations—from strategicguidance and plan formulation to employee communication, specialized training, and public welfareinitiatives. In all Group operations, we actively promote environmentally friendly office practices suchas paperless operations, energy-efficient lighting, and video conferencing through scientific planning andstrict management. We comprehensively advance energy conservation, consumption reduction, andresource recycling to jointly build an environmentally friendly enterprise.To ensure effective environmental management system operation and boost employees’ environmentalawareness and operational skills, OPPEIN has built a tiered EHS training system. We allocate personnel,financial resources, and technical expertise for system operation, and standardize training andassessments to ensure all employees—especially key positions—understand and uphold ourenvironmental commitments.Under the “OPPEIN Group Safety Education and Training Management Regulations,” environmentalmanagement training is integrated into the company’s overall safety education system. We provideresources for the environmental management system, including investments in environmental facilities,energy-saving equipment upgrades, and monitoring instruments, which support the effectiveimplementation of training programs.. OPPEIN Home Group Inc.We conduct comprehensive training for all employees on environmental awareness, regulations andpolicies, ensuring they grasp the core of our "protect the environment, prevent pollution; conserve energy,reduce emissions and promote clean production" policy and their individual responsibilities. For keypositions with significant environmental impacts (e.g., environmental facility operators, hazardouschemical managers, waste gas/wastewater treatment workers), we provide in-depth training on job-specific procedures, emergency response skills and legal requirements to ensure role competence. Case: Specialized Energy Management Training at the Wuxi Base Wuxi Base has formulated a sophisticated energy conservation training and cultural mechanism under the “Wuxi Base Energy Consumption Management Specifications.” All new and existing employees receive training on energy-saving criteria, including equipment power consumption, compressed air and central vacuum system operation norms, to ensure full standard awareness. The base also holds semi-annual energy-saving technical and best practice sharing sessions to facilitate experience promotion and learning.We advocate all employees to embrace green concepts, practice ecological protection, resource recyclingand a frugal low-carbon lifestyle, jointly undertaking environmental responsibilities. Responding tonational energy conservation goals, we promote environmentally friendly office practices, issue a waterand electricity conservation initiative, and implement energy-saving measures. Employees areencouraged to identify waste and propose improvements, with dedicated staff tracking carbon reductionprogress. Irregular utility spot checks across departments ensure full compliance with conservationrequirements. Energy Conservation and Emission Reduction Initiative ? Use air conditioning scientifically and reduce operating hours ? Promote natural lighting to reduce electricity consumption from artificial lighting ? Use elevators judiciously to reduce usage frequency ? Strengthen equipment management to effectively reduce energy consumption ? Practice water conservation principles and develop water-saving habits OPPEIN Home Group Inc. Case: Energy Management Assessment and Incentives at the Wuxi Base Wuxi Base placed energy-saving reminders in production areas and launched a "Golden Ideas" campaign to collect employees’ energy-saving proposals, fostering a workplace culture of universal conservation. It also set up an energy-saving reward and penalty mechanism. Outstanding workshops, teams and individuals are honored as energy-saving role models, while acts including energy waste, irregular operations and unmet energy-saving targets will face fines and public reprimands as part of standardized management enforcementThe Group recognizes the urgency of global climate change and prioritizes climate action, integratingclimate-related risks and opportunities into its ESG framework while optimizing response measures andenvironmental disclosures. Formulated under the “OPPEIN Group Risk and Opportunity ManagementRegulations,” our governance covers risk response, avoidance, mitigation and acceptance. Robustmanagement measures and internal controls strengthen overall risk resilience. We conduct systematicclimate impact and financial materiality assessments, embed climate factors into governance and strategy,and advance low-carbon transition and climate resilience via quantified targets, risk-opportunitymanagement and core indicator disclosure.We have built a sound governance framework that embeds climate impacts, risks and opportunities intothe existing sustainability governance system. The Board’s Strategy and Sustainability Committee actsas the top oversight body for climate matters, tasked with reviewing sustainability goals and materialissues, managing related impacts and risks, overseeing target formulation, and examining sustainabilityreports and disclosures. Operationally, the EHS Management Department leads climate environmentalperformance, covering data collection, carbon accounting and emission reduction delivery. The InternalAffairs Department coordinates group-wide resource consumption data and oversees relevant emissionreduction projects. OPPEIN Home Group Inc. During the reporting period, we updated the Strategy and Sustainability Committee’s procedural rules to clarify its duties, and revised the “Environmental Management Manual” by adding climate change impact provisions. To strengthen climate resilience and manage climate-related risks, we adopt TCFD recommendations and abide by the "Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 4— Preparation of Sustainability Reports (Revised January 2026)". Via policy research, peer benchmarking and expert consultation, and in compliance with the Group’s "Risk and Opportunity Identification and Evaluation Management Procedure" with the "Risk and Opportunity Identification and Analysis Evaluation Form", we fully identify climate-related transition and physical risks as well as potential opportunities affecting operations, and incorporate them into the climate response strategy. We have bolstered climate risk governance and rolled out targeted measures. By optimizing the energy structure and resource efficiency through company-wide energy conservation initiatives and renewable energy adoption, we improve climate risk management effectiveness and further embed climate risks into the Group’s ESG and risk management systems. Transition Risks FinancialRisk Type Risk Description Time Range Mitigation Measures Materiality Since China proposed its dual carbon goals in 2020, national Closely follow local government and and local authorities have rolled institutional requirements on pollutant out green and low-carbon Mid-term discharge and environmentalPolicy and regulations to address climate and long- information disclosure to ensure full HighLegal Risks change. This heightens term compliance with environmental corporate compliance pressure, regulations and mitigate compliance with rising risks of relevant risks. litigation and claims. OPPEIN Home Group Inc. Transition Risks FinancialRisk Type Risk Description Time Range Mitigation Measures Materiality Industry "dual carbon" Actively pursue energy conservation requirements are becoming Mid-term and emissions reduction initiatives and increasingly clear, and policy and long- High increase the proportion of clean energy pressure to reduce greenhouse term used. gas emissions is intensifying. We will continue to implement energy Globally, supporting regulatory conservation and emissions reduction and adjustment mechanisms for Short-term, strategies, closely monitor carbon carbon emissions trading are mid-term, pricing mechanisms in the countries High being introduced, which may and long- where our assets are located as well as lead to increased operational term globally, and respond to challenges and financial costs. proactively and flexibly. Environmental compliance Actively conduct training on relevant risks arising from employees" laws and regulations in the regions Mid-term failure to understand local work where we operate, assign dedicated and long- Medium procedures in overseas offices legal compliance personnel, and term due to geographical or language strictly enforce relevant policy barriers. requirements. Enhance the Group’s R&D capabilities by recruiting and training professionals, introducing Investment failures in R&D and Mid-term technologies, and learning from upgrades for energy-saving and and long- external parties. We will further High environmental protection term strengthen R&D on low-carbon and technologies. energy-saving technologies and engage in industry exchanges andTechnical cooperation. Risks Failure to promptly identify and apply energy-saving and We will continue to intensify research environmental protection Mid-term and innovation in low-carbon and technologies, resulting in the and long- energy-saving technologies and High Group"s factories and products term actively engage in industry exchanges lagging behind peers in the and cooperation. transition to low-carbon operations. OPPEIN Home Group Inc. Transition Risks FinancialRisk Type Risk Description Time Range Mitigation Measures Materiality Resource recycling; Build long-term stable sustainable partnerships with Mid-term raw material suppliers; Continuously Rising costs of raw materials and long- promote the research, development, High and energy. term and application of energy-saving Market technologies, and increase the Risks proportion of clean energy used. Failure to effectively meet Mid-term Actively develop Eco-friendly consumer demand for green and long- Commitment products to meet High and environmentally friendly term consumer needs. products The Group, its suppliers, or Strengthen internal sustainability distributors may have a management and proactively respond negative impact on the climate to climate change; Regulate upstream Short-term, or the environment during their and downstream supply chains toReputation mid-term, production and business follow sustainability principles and High Risk and long- operations, resulting in damage ensure compliant green operations; term to the Group"s reputation and a Improve information disclosure decline in stakeholders" transparency via regular releases in willingness to invest. annual and sustainability reports. Physical Risk Time Financial Risk Type Risk Description Mitigation Measures Range Materiality Extreme weather may Extreme Short-term, damage factories, Identify potential risks of propertyAcute weather mid-term, office buildings, and damage and purchase insurance for HighRisks events such and long- equipment, resulting necessary facilities and equipment. as typhoons, term in asset losses. OPPEIN Home Group Inc. Physical Risk Time Financial Risk Type Risk Description Mitigation Measures Range Materiality heavy rains, Develop emergency response Extreme weather can and floods mechanisms (e.g., "Extreme cause equipment Weather Disaster Emergency damage, prevent Response Plan" and "Guidelines employees from for Outdoor Operations Under working normally, Various Weather Conditions"); High and disrupt conduct extreme weather response transportation, and protection training, and affecting the Group"s continuously optimize natural normal operations and disaster emergency response production. mechanisms. Prolonged high temperatures increase Strengthen equipment inspections the risk of operational Short-term, and maintenance, and promptly failures and accidents mid-term, identify and resolve various in power facilities and Medium and long- malfunctions; equipment, affecting term Install cooling and temperature- production efficiency reduction systems. and creating safety hazards. Install cooling facilities in work and production areas and provide High temperatures frontline staff with heatstroke Persistent affect employees" prevention supplies. Guarantee high health, making it Short-term, domestic and production waterChronic temperatures impossible for them to mid-term, supply, roll out prevention Medium Risks and drought, work outdoors for and long- measures and sound health etc. extended periods, term emergency protocols. Adopt which impacts targeted cooling measures, operational efficiency. optimize production arrangements and adjust working hours or suspend operations as needed. Stockpile water for production and Prolonged drought daily use, and strengthen water may lead to water Short-term, recycling; shortages, affecting mid-term, Avoid constructing factories in Medium to the stability of and long- areas with high water supply risks, high production and term and continuously advance water- operations. saving and environmental protection upgrades. OPPEIN Home Group Inc. OpportunitiesOpportunity Time Financial Opportunity Description Countermeasures Type Range Materiality Actively explore R&D and application Research and development or of new technologies, equipment and use of more energy-efficient Mid-term processes to boost resource efficiency; Resource equipment and technologies; and long- leverage government supportive High Efficiency National and regional term policies, introduce new technologies supportive policy incentives. and invest in green projects with fiscal support. Research, development, and Mid-term Strengthen R&D and investment inProducts and application of green, low- and long- green and environmentally friendly High Services carbon products. term products. Increased consumer demand for Increase the market share of Eco- Mid-term low-carbon products; friendly Commitment products; Market and long- High Development of emerging Proactively identify and participate in term markets. emerging markets. Use of renewable energy; Mid-term Increase efforts to develop and utilize Resilience Energy substitution and and long- High renewable energy. diversification strategies. term We have established a comprehensive risk management system; for specific details, please refer to the "Governance— Risk and Compliance Controls" section. To manage climate-related impacts, risks and opportunities, we embed climate risk factors into the Risk Management Committee’s framework per the "OPPEIN Group Risk and Opportunity Management System." Using the "Procedure for Identifying Environmental Factors and Determining Controls" and the "Risk and Opportunity Identification and Analysis Assessment Form," we identify and assess value- chain-wide risks to guide operation, R&D and business strategies, supporting medium- and long-term financial and strategic planning. All sites and divisions conduct climate risk identification. In line with internal assessment standards, risks are evaluated by occurrence probability and impact severity to grade risk levels, with material risks confirmed via internal review. We also perform a qualitative and quantitative evaluation of climate risks and opportunities across business models, value chains and financial and non-financial dimensions, covering compliance, asset loss, business continuity, operational goals, and reputation. OPPEIN Home Group Inc.We attach great importance to operational climate impacts, taking greenhouse gas emissions and energyconsumption as core quantitative indicators for environmental performance and low-carbon transition.We have built and optimized data collection and accounting systems, annually disclosing Scope 1 andScope 2 emissions, emission intensity and key energy consumption data in the Sustainability Report.This transparently demonstrates carbon reduction and energy efficiency progress under stakeholderoversight.We will keep track of the national "Dual Carbon" strategy, industry benchmarks and internal emissionreduction potential to set pragmatic yet ambitious climate targets, guiding the Group’s green and low-carbon transition.We actively respond to national "Dual Carbon" goals. Following the "Guidelines for the Verification ofCorporate Greenhouse Gas Emission Reports (Trial)," we conduct independent GHG inventories,optimize emissions management, tap emission reduction potential, roll out energy-saving and carbon-cutting measures, and lower corporate carbon footprint. We keep abreast of home furnishing carbonaccounting policies to accurately track operational emissions and extend GHG inventories to the supplychain. Based on complete emission baselines, we will formulate scientific carbon neutrality and emissionreduction roadmaps.During the reporting period, the Group"s total greenhouse gas emissions (Scope 1 and Scope 2) amountedto approximately 153,575.67 metric tons of carbon dioxide equivalent, representing a year-on-yearreduction of approximately 11.82%; the greenhouse gas emission intensity for Scope 1 and Scope 2 was OPPEIN Home Group Inc. OPPEIN 2025 Greenhouse Gas Emissions Breakdown1 (Unit: tCO₂e) Direct greenhouse gas Indirect greenhouse gas Total Greenhouse Gas Bases emissions emissions Emissions (Scope 1) (Scope 2) (Scope 1 and Scope 2) Guangzhou Headquarters Qingyuan Base 2,727.83 53,022.33 55,750.16 Tianjin Base 2,407.91 26,178.55 28,586.46 Wuxi Base 393.98 27,722.21 28,116.19 Chengdu Base 474.86 19,105.70 19,580.56 Wuhan Base 151.10 12,282.74 12,433.84 Total 6,437.70 147,137.97 153,575.67 OPPEIN Greenhouse Gas Emissions from 2023 to 2025 (Unit: tCO₂e) Direct Greenhouse Gas Emissions (Scope 1) 10,368.67 7,316.52 6,437.70 Indirect greenhouse gas emissions (Scope 2) 192,847.51 166,838.83 147,137.97 Total greenhouse gas emissions (Scope 1 and Scope 2) Greenhouse gas emissions intensity (Scope 1 and Scope 2) (tCO2e/million in revenue)To solidify carbon emission data foundation and ensure accurate, compliant disclosures, the Groupcommissioned a third party during the reporting period to audit greenhouse gas emissions acrosscorporate legal entities and the Tianjin Base, in line with industrial enterprises’ greenhouse gas Based on the nature of operations at the Group and its various production sites, sources of direct greenhouse gasemissions (Scope 1) include emissions from the combustion of natural gas, gasoline, and diesel in fixed and mobileequipment; sources of indirect greenhouse gas emissions (Scope 2) include carbon dioxide emissions resulting fromthe purchase of electricity; the Group"s greenhouse gas emissions data is compiled from the Group headquarters andits various production sites. OPPEIN Home Group Inc.accounting rules. A 2024 Greenhouse Gas Emissions Report was issued. Defining clear accountingboundaries and methodologies, the report provides baseline data and a management reference foridentifying emission reduction priorities and formulating future carbon targets.The Group embeds sustainable development into full production and operation processes, andstrengthens resource utilization management. It strictly abides by the "Energy Conservation Law of thePeople"s Republic of China", "Water Law of the People"s Republic of China", and "Circular EconomyPromotion Law of the People"s Republic of China", implements standardized resource management plans,and strives to improve resource efficiency.Water resources underpin ecological balance and operational stability. Adhering to the principle of"prioritizing water conservation and efficient utilization", the Group complies with the “Water Law ofthe People"s Republic of China.” It boosts water use efficiency and reduces its impact on water bodiesvia improved management systems, water conservation plans, water-saving technologies and recycledwater usage. We also follow national and local rules on water intake, reuse and wastewater discharge.No major water intake or discharge incidents occurred during the reporting period.Water resource management is embedded into the Group’s overall environmental management system.The EHS Management Department coordinates overall governance, while EHS teams at each productionbase undertake on-site implementation. The Internal Affairs Department assists in water consumptiondata collection and water-saving project advancement, ensuring clear division and effective execution ofresponsibilities. Guided by the "OPPEIN Home Group Environmental Protection ManagementRegulations," all operating units are required to abide by water intake permits, cap total water use andensure standard discharge, with water-saving performance included in routine supervision andassessment.The Group tracks and aggregates group-wide water intake, consumption and discharge data, and OPPEIN Home Group Inc.discloses water use intensity transparently. Water is mainly supplied by municipal pipelines, coveringdomestic use, indirect cooling for manufacturing equipment and minor production line consumption.During the reporting period, total annual water withdrawal reached 1,694,724.25 tons, down 7.07% yearon year, with water consumption intensity at 98.35 tons per million RMB of revenue.To strengthen water resource management and mitigate water-related pressures and risks, the Group haslaunched water-saving upgrades and deployed wastewater treatment facilities with substantial investment.It complies strictly with "General Rules for the Provision and Management of Water Meters in Water-Using Units" (GB 24789-2009) and "Guidelines for the Evaluation of Water-Conserving Enterprises"(GB/T 7119-2018). Internal water conservation assessments have been carried out alongside optimizedmanagement systems, dedicated management teams, detailed metering layouts and water consumptionaccounts. Secondary water meters have been installed in buildings and workshops for categorizedconsumption monitoring. Recycled water is widely adopted in processes including spray painting andcountertop cutting; the countertop factory recycles wastewater, cutting annual tap water use by 720,000tons.During the reporting period, water-saving fittings were renewed, achieving a water-saving rate of overGroup also scaled investment in water-saving technologies, alternative water source projects, andpromoted broader reuse of reclaimed water and rainwater harvesting across production processes.We strictly abide by regulations in all operating regions, including the “Energy Conservation Law of thePeople"s Republic of China.” Upholding sustainable development through energy conservation,consumption reduction measures, and green production, the Group has established a sound energymanagement system, expanded renewable energy deployment and advanced energy-saving technologicalupgrades. These efforts boost energy efficiency, optimize the energy mix, and foster a green, low-carbonand cost-effective operation model. OPPEIN Home Group Inc.By the end of the reporting period, Qingyuan OPPEIN Integrated Home Co., Ltd., the Group’s coreproduction base, has obtained energy management system certification under GB/T 23331-2020/ISO Qingyuan OPPEIN Integrated Home Co., Ltd. Energy Management System CertificationWe have built a full-cycle energy management system covering strategy, objectives, implementation andevaluation to realize systematic energy consumption control and continuous improvement. Guided bythe environmental policy of "energy conservation, emission reduction and clean production", the Groupfollows energy management principles of goal orientation, refined governance, integrated technologyand management, and full staff engagement.During the reporting period, we advanced energy management system upgrades across all productionbases. The Wuxi base issued the “Wuxi Base Energy Consumption Management Specifications,”covering all departments and energy types with clear governance principles, organizational frameworks,quantitative targets and implementation measures, to build a closed-loop, company-wide energyconservation management system.The Group’s energy consumption is dominated by purchased electricity, with natural gas, gasoline anddiesel as supplements. We are advancing an intelligent energy monitoring system and complying withGB 17167-2006 to refine energy measurement and implement tiered management, ensuring compliant OPPEIN Home Group Inc.and traceable energy use. Regular internal and external energy audits help assess energy performance,address existing gaps and steadily improve energy efficiency. A routine energy data monitoring andanalysis mechanism is in place, with monthly statistics, verification and reporting of electricity, waterand fuel consumption across departments and workshops. Smart meters installed on key equipment feedreal-time data into a unified platform, enabling real-time monitoring, dynamic analysis and anomalyalerts to support targeted energy-saving optimization. Once abnormal or rising energy consumption isidentified, base and department leaders initiate cause analysis, draw up targeted energy-saving plans andsubmit them for approval and execution. The Group further promotes digitized energy management,accelerates the deployment of site-level energy management systems, and raises renewable energypenetration to cut resource consumption and environmental impact at the source.During the reporting period, the Group"s fixed equipment and owned mobile equipment consumedstandard coal equivalent, was 37,869.87 tons2 of standard coal equivalent, representing a 10.88%decrease from the previous year. Smart Electricity Online Energy Efficiency Energy Information Data Platform System Monitoring and Management SystemThe Group strictly follows the production principle of energy conservation and consumption reduction.Each production site formulates annual energy-saving targets and plans tailored to operational realities.During the reporting period, the headquarters and all bases improved overall energy efficiency viamanagement optimization and technological upgrades, while steadily advancing energy-savingrenovation projects. Energy consumption in terms of standard coal equivalent is calculated in accordance with the "General Rules forthe Calculation of Comprehensive Energy Consumption" (GB/T 2589-2020) issued by the State Administration forMarket Regulation and the Standardization Administration of China. OPPEIN Home Group Inc.? Optimization of Management MeasuresIn management optimization, we lower peak production loads and boost energy efficiency by releasingproduction scheduling guidelines, standardizing capacity models, and adopting peak-shift production aswell as scheduled start-stop protocols for large equipment. We enforce energy use regulations to eliminatewaste, requiring on-demand operation of compressed air, lighting and cooling facilities for precise energycontrol.For key energy-consuming systems, targeted management rules are continuously refined. Detailed“Compressed Air Usage Standards” define pressure specifications, ban non-production usage and airleakage, and clarify responsibilities across the Equipment, Process and workshop teams to achieverefined whole-process management. The “Central Vacuum System Usage Guidelines” adopt time-phasedoperation, standardized load regulation and pipeline management, with dedicated meters deployed tomonitor and analyze energy consumption.? Energy-Saving Renovations and Upgrades Selected Energy-Saving Technical Retrofit Projects Implemented During the Reporting Period Project Name Project Upgrade and Renovation Details Comprehensively reviewed the lighting system, continued to advance energy- Lighting saving lighting retrofits, removed redundant light tubes, promoted LED lighting, Energy-Saving replaced solar streetlights, and expanded the application of motion-sensor- Retrofit controlled lighting. Replacement of Phase out inefficient motors according to schedule and replace them with high- Outdated efficiency or permanent magnet motors; retrofit equipment such as fans and Equipment pumps with variable frequency drives. Install smart meters on major electrical equipment in each workshop to collect real-time power consumption data, which is then aggregated into the facility"s Smart power monitoring platform to enable real-time monitoring of energy Monitoring consumption; develop a power consumption visualization dashboard; and implement smart monitoring and early warning systems for pressure differentials in dust collection system filter bags. OPPEIN Home Group Inc. Case: Energy Storage Facilities at Two Major Bases We are advancing energy storage projects at key sites. Through peak shaving and valley filling, we optimize power operation, ease peak grid load, cut reliance on fossil-fuel peak power, and lift overall energy efficiency. The Wuxi base 6MW/18MWh energy storage system adopts intelligent control: prioritizing photovoltaic power, then stored energy discharge, and grid power as supplement to maximize clean energy use. During the reporting period, Qingyuan base’s 8.82MW/17.5MWh user-side energy storage project was put into operation and named a Guangdong Provincial high-quality user-side energy storage demonstration project. Customized for furniture manufacturing power use, it delivers an integrated “energy storage + smart energy management” solution. With cluster-independent control, full liquid cooling and multi-layer safety design, it balances efficiency and safety. Powered by digital twin and intelligent forecasting, it optimizes power consumption curves and supports demand-side management and peak regulation. From March to December 2025, the project recorded 8.46 million kWh charging and 7.29 million kWh discharging, lowering electricity costs and boosting energy efficiency. It offers a replicable path for the industry to realize cost reduction, efficiency gains and low-carbon production. Supported by Guangdong’s cold storage tariff policies, the project further enhances economic value and demonstration influence, setting a benchmark for user-side energy storage.We align with national low-carbon goals and promote green production. The Group keeps investing in OPPEIN Home Group Inc.renewable energy projects across Guangzhou, Qingyuan, Tianjin, and Wuxi sites, adopting a “self-usefirst, surplus grid feed-in” model. This raises clean energy penetration, accelerates energy structureupgrading, mitigates climate risks, cuts power-related GHG emissions, and supports national carbonpeaking and neutrality targets.During the reporting period, new photovoltaic projects were launched at Wuhan and Chengdu, addinggeneration at 49,644.28 MWh. Clean energy usage ratio reached 15.18%, up 33.31% year-on-year. Thissaves 15,000 tons of standard coal yearly and reduces CO₂ emissions by around 32,400 tons3. Renewable Energy Projects Commissioned During the Reporting Period Annual Type of Installed Project Electricity Renewable Capacity Project Overview Location Generation Energy (MW) (MWh) The project sits atop the headquarters’ northern Guangzhou Solar Headquarters Power The project spans the rooftops of factory buildings, parking canopies and residential dormitories, with Qingyuan Solar Base Power grid-connected in late December 2021, followed by Phase II in June 2023. The project covers the rooftops of Buildings A–H and commenced operation in May 2022; the Solar Tianjin Base 9.13 10,903.62 factory-area project was grid-connected in Power December 2023, and the residential-area project was grid-connected in July 2024. Annual carbon dioxide emission reductions from photovoltaic projects are calculated in reference to the "2024Emission Reduction Project Baseline Emission Factors for China"s Regional Power Grids" issued by the Ministry ofEcology and Environment. OPPEIN Home Group Inc. Renewable Energy Projects Commissioned During the Reporting Period Annual Type of Installed Project Electricity Renewable Capacity Project Overview Location Generation Energy (MW) (MWh) The project is primarily distributed across the rooftops of Buildings A-H at the Wuxi Base, Solar covering approximately 82,000 m2, and was Wuxi Base 13.8 15,017.29 Power connected to the grid in August 2018; Building G covers approximately 17,000 m2 and was connected to the grid in January 2024. The project is primarily distributed across the Chengdu Solar rooftops of Buildings at the Chengdu Base, with a Base Power total area of 120,000 m2. The project was connected to the grid in May 2025. Solar The project was connected to the grid in DecemberWuhan Base 7.23 - Power 2025, with an installed capacity of 7.23 MW. Total 63,357 49,644.28 - Emissions Reduction of the PV Project During the Reporting Period Annual Standard Coal Savings Annual CO₂ Equivalent EmissionsLocation of PV Projects (10,000 tons) Reductions (10,000 tons CO₂)Guangzhou Headquarters 0.03 0.06 Qingyuan Base 0.55 1.15 Tianjin Base 0.33 0.86 Wuxi Base 0.45 0.95 Chengdu Base 0.14 0.22 Total 1.50 3.24 OPPEIN Home Group Inc.Case: Wuhan Base Photovoltaic Power Generation ProjectWuhan Base integrates smart home manufacturing with clean energy. Its 7.23MW zero-carbon projectoptimizes production and resource efficiency via high-precision smart manufacturing, and deploysdistributed PV to reduce fossil fuel dependence. Connected to an integrated energy smart platform, ituses IoT and big data for full-cycle energy monitoring and intelligent scheduling, with AI toolsboosting energy efficiency. The 7.23 MW PV system achieved full grid connection, generating 7.58million kWh annually. It saves 2,480 tons of standard coal, cuts 7,560 tons of CO₂ emissions yearly,equivalent to the carbon sequestration of 420,000 trees.Case: Chengdu Smart Manufacturing Base 12 MW Zero-Carbon Energy-Saving ProjectChengdu Base pioneers smart home manufacturing integrated with green energy. Its 12MW zero-carbon project adopts advanced smart manufacturing for precise production control and efficientresource use, while embedding green energy to cut fossil fuel reliance at the source. The projectconnects to a a smart cloud platform covering generation, grid, load, storage, and charging. With IoTand big data, it realizes real-time monitoring and intelligent regulation of energy production,transmission, storage and consumption. AI-driven demand forecasting and allocation optimizationimprove energy efficiency. By the end of the period, the 12MW PV project was grid-connected, whichgenerates 10.07 million kWh annually, saving 3,300 tons of standard coal and cutting over 10,049 tonsof CO₂ yearly. OPPEIN Home Group Inc.The Group strictly complies with relevant national environmental laws and regulations in projectlocations, standardizes pollutant disposal, cooperates with government authorities and stakeholders toconduct environmental management, safeguard ecological security, improve environmental quality, andstandardize pollution discharge practices.The primary air pollutants emitted during our production and operations include dust (particulate matter),organic exhaust gases (VOCs, toluene, xylene, styrene, etc.), natural gas combustion exhaust, andkitchen fumes. Through environmental protection facilities and equipment such as central dust collectors,baghouse dust collectors, wet scrubbers, spray towers, RTOs, COs, activated carbon adsorption units,dust and odor removal units, and kitchen fume purification units, we strictly control the compliantemissions of atmospheric pollutants such as nitrogen oxides, sulfur oxides, and particulate matter. Case: Centralized Dust Collection System To tackle substantial dust from wood processing, we have replaced traditional inefficient single-point dust collection with a full upgrade to a central dust collection system. The system installs exhaust hoods or embedded dust ducts beside or above dust-producing equipment such as electric saws, drill presses and milling machines. Using negative pressure, it concentrates dust into cartridge-type or bag- type central collectors for high-efficiency filtration. Part of the purified clean air is recirculated to workshops, markedly lowering fugitive dust emissions and improving thermal energy utilization.In accordance with the "Environmental Protection Management Regulations" and the requirements oflocal environmental protection authorities, the Group has comprehensively strengthened the control ofdomestic and industrial wastewater discharge. We actively apply new wastewater treatment equipmentand online water quality monitoring technologies to ensure that the quality of wastewater dischargedfrom the factory premises meets the requirements of national and local discharge standards, includingthe "Comprehensive Discharge Standard for Wastewater" (GB 8978-1996) and the "Standards forPollutant Discharge from Urban Sewage Treatment Plants" (GB 18918-2002), thereby minimizing the OPPEIN Home Group Inc.impact on receiving water bodies.During the reporting period, the Group was not subject to any penalties related to non-compliantwastewater discharge.We follow classified wastewater treatment rules and operate a full wastewater management system.Residential domestic wastewater goes through on-site septic tanks, with canteen oily wastewaterpretreated via grease traps first. Production-area domestic sewage undergoes septic tank pretreatmentbefore entering municipal sewers for centralized park treatment. Core production wastewater is handledseparately: Coating line spray painting wastewater circulates in water-curtain paint mist facilities and isregularly replaced; waste fluid is processed at the in-house coating wastewater station via flocculationand air flotation, Fenton oxidation, biochemical treatment and final flocculation sedimentation.Countertop production wastewater is treated by the onsite stone sedimentation system and reused acrossmost processes with only occasional discharge. Quartz slab workshop wastewater flows to externalsedimentation facilities for flocculation settling, then fully recycled with no external discharge.During the reporting period, the Group"s total wastewater discharge was 983,959 metric tons, comprisingwastewater pollutant monitoring was 100%.Our primary sources of noise pollution stem from cutting and grinding during the production process,the operation of air compressors, the operation of motor vehicles, and the operation of fans and pumpsat the wastewater treatment plant. For different sources of noise, we have implemented correspondingcontrol measures to mitigate their adverse effects, including prioritizing the use of low-noise productionequipment, adjusting equipment operating frequencies, and implementing effective measures such asfoundation vibration reduction for individual high-noise equipment, factory building sound insulation,installation of sound enclosures, fitting fans with silencers, and flexible pipe connections. We alsoposition high-noise equipment as far away from the factory boundary as possible and implement greenbarriers around the perimeter. At the same time, we have rationally scheduled the operating times of high-noise equipment and strengthened equipment maintenance to reduce abnormal noise. OPPEIN Home Group Inc.We strictly enforce noise management standards such as the "Environmental Noise Emission Standardfor Industrial Enterprise Boundaries" (GB 12348-2008) and conduct regular noise monitoring at the plantboundary. During the reporting period, the Group"s noise monitoring results all met the standards.We follow the waste management principles of "reduction, resource recovery, and environmentally sounddisposal", establishing a full-lifecycle waste management system covering classification, collection,storage, transfer and disposal across the Group. We strictly abide by laws and national standardsincluding the "Law of the People"s Republic of China on the Prevention and Control of EnvironmentalPollution by Solid Waste", the "Pollution Control Standard for the Storage and Landfilling of GeneralIndustrial Solid Waste" (GB 18599-2020), and the "Pollution Control Standard for the Storage ofHazardous Waste" (GB 18597-2023). We strive to lower environmental impact and advance resourcerecycling.We implement systematic management of all types of non-hazardous waste generated during ourproduction and business operations, primarily including office and domestic waste as well as generalindustrial solid waste.? Comprehensive Sorting and Resource Recovery OrientationWe conduct detailed sorting of non-hazardous waste to maximize its recycling value. The Group"s generalindustrial solid waste primarily includes: Wood-based materials Scrap wood, wood dust, scrap panels, wood shavings, etc. Metal Scrap metal, aluminum scrap, etc. Glass and Stone Scrap glass, countertop scraps (stone/quartz), etc. Plastics and Packaging Scrap plastic, scrap edge banding, scrap packaging materials (cardboard, foam, etc.). Others Scrap leather, mixed-material waste, etc.? Standardized Storage and Compliant DisposalAll of the Group"s production sites have established and maintain temporary storage facilities for generalindustrial solid waste in accordance with the GB 18599-2020 standard, ensuring protection against wind, OPPEIN Home Group Inc.rain, and leakage. All general industrial solid waste is regularly entrusted to licensed entities with theappropriate treatment capabilities for recycling or disposal.? Digital Ledgers and Closed-Loop TrackingWe have established a unified electronic ledger system for general industrial solid waste management,accurately recording information such as the source, type, weight, time of removal, destination, andresponsible personnel of the waste. At the same time, we strictly enforce the transfer manifest system,with all handover documents archived for record-keeping, achieving closed-loop management and datatraceability throughout the entire process from generation to final disposal.? Management Performance and Data DisclosureDuring the reporting period, through systematic management, the Group achieved the resource recoveryof a significant volume of general industrial solid waste. The Group-wide recovery of non-hazardouswaste reached tens of thousands of metric tons, with waste wood and waste panels accounting for thehighest proportion, effectively reducing the consumption of natural resources and the pressure onlandfills. We continuously monitor and disclose the generation and recovery volumes of various non-hazardous wastes, making our performance transparent and subject to public oversight.For waste with hazardous characteristics such as toxicity and flammability, we have implemented strictercontrols and higher standards throughout the entire process to ensure environmental risks are managedand disposal is conducted in compliance with laws and regulations. During the reporting period, theGroup"s various sites properly treated a total of 2,248.01 metric tons of hazardous waste, achieving a? Institutionalized and Standardized Management SystemThe Group has formulated and continuously revised the "OPPEIN Home Group Regulations on theManagement of Hazardous Chemicals," which includes a dedicated chapter on "Disposal of HazardousChemical Waste." This chapter clearly defines responsibilities at every stage and strictly prohibitsunauthorized discharge. Each production base has formulated localized "Detailed Rules for HazardousWaste Management" in accordance with Group policies and the "National Catalogue of HazardousWastes" (2025 Edition). These rules are supplemented by "Hazardous Waste Disposal Training" materials,and all employees undergo regular training to ensure that frontline staff are proficient in the identification, OPPEIN Home Group Inc.classification, packaging, labeling, and emergency response requirements for hazardous waste. Case: Fire Drill for Spontaneous Combustion of Hazardous Chemicals In June 2025, we held a specialized drill for hazardous chemical spontaneous combustion at Qingyuan Solid Wood Plant. Simulating spontaneous combustion of hazardous waste during primer production line operations, frontline staff (machine operators, panel handlers, painters, safety officers) responded promptly, completing incident reporting, initial fire suppression and personnel evacuation per the emergency plan. The drill effectively boosted safety awareness and on-site emergency response capabilities of hazardous chemical-related personnel.? End-to-End Precision Management Hazardous waste is identified and classified strictly Precise according to its characteristics and in accordance with the Classification "National Catalogue of Hazardous Wastes." Corresponding and Standardized hazardous waste identification labels are established, and Packaging these labels are updated and produced in compliance with the latest national standards. OPPEIN Home Group Inc. Each Base is equipped with a dedicated hazardous waste storage facility, the design, construction, and management of which strictly comply with the GB High-Standard 18597-2023 standard. The facilities are treated to prevent Storage Facilities corrosion and seepage, and are equipped with drainage ditches, containment berms, and exhaust gas collection systems. Hazardous waste is stored in designated zones and categorized; incompatible wastes are strictly separated, and measures are implemented to protect against wind, rain, and sunlight. All hazardous waste is consigned to qualified firms for transport and disposal. Carriers must hold valid hazardous material transport certifications, and disposal Compliant providers possess official Hazardous Waste Operating Transfer and Safe Disposal Licenses. Contractors’ qualifications and technical capacity are legally verified beforehand, with contracts signed to clarify pollution control liabilities. The whole transfer process follows electronic and paper transfer manifest protocols, ensuring full traceability of all hazardous waste batches.? Data Monitoring and Compliance OversightEach Base maintains detailed hazardous waste management ledgers, accurately recording informationsuch as the time of entry and exit, source and destination, weight, type and quantity ofcontainers/packaging, and storage facility identification numbers. Electronic records of hazardous wastegeneration and intake are also entered into the solid waste management platform of the facility"srespective region. Hazardous Waste Management Ledgers OPPEIN Home Group Inc.In accordance with national laws and regulations such as the "Law of the People"s Republic of China onthe Prevention and Control of Air Pollution" and the "Law of the People"s Republic of China on thePrevention and Control of Environmental Pollution by Solid Waste," we have formulated andimplemented regulatory standards including the "Environmental Protection ImplementationSpecifications," "Procedures for Waste Gas Treatment and Emission Management," "Solid WasteManagement Procedures," and "Noise Management Procedures" to comprehensively strengthen thecontrol of pollutant emissions. During the production process, we strictly ensure the compliant disposaland emission compliance of organic exhaust gases and production-related dust. We entrust professionalagencies to handle hazardous waste generated by production processes in accordance with regulations,strictly enforce the environmental impact assessment system for construction projects, and conductregular internal and external environmental monitoring.During the reporting period, the Group"s environmental protection facilities operated at a 100%synchronous operation rate, and the compliance rate for pollutant monitoring was 100%.The Group consistently adheres to the principle of green and environmentally friendly production andoperations, ensuring that every stage—from raw material selection, design, and production totransportation and end-user installation services—strictly follows green and environmental standards.Guided by an environmental design philosophy centered on sustainable development, we continuouslybuild a green industrial chain across the entire process, encompassing integrated green productionsolutions and systematic environmental monitoring standards, thereby forming a scientific and rigorousclosed-loop green production system. This system effectively improves energy efficiency, reducesenvironmental pollution, and makes a positive contribution to promoting the Group"s greentransformation and social sustainable development. OPPEIN Home Group Inc. Schematic Diagram of the Green and Eco-friendly Commitment Production SystemIn compliance with the "Action Plan for Green and Low-Carbon Development in Manufacturing (2025–Green raw material adoption and plant energy-saving upgrades have greatly cut resource consumption,while renewable energy projects optimize the energy structure. Stringent exhaust and noise emissioncontrols have enabled full solid waste recycling. We apply green building principles to facilityconstruction. Locally sourced, low-carbon, high-performance and durable Eco-friendly Commitmentmaterials are prioritized to lower lifecycle energy use. Optimized building orientation, efficient energy-saving lighting and full use of natural daylight balance natural and artificial lighting, reducing lightingpower consumption. Factory-side ventilation systems improve workshop air circulation and ease airconditioning demand. Ecological greening features low-maintenance, highly adaptable native plants tocurtail upkeep costs. OPPEIN Home Group Inc.During the reporting period, thanks to its outstanding practices in environmental management andcomprehensive resource utilization, OPPEIN Group was successfully included in the list of provincial-level "Green Factories" announced by the Guangdong Provincial Department of Industry andInformation Technology. As of the end of the reporting period, the Group had accumulated one national-level Green Factory certification and two provincial-level Green Factory certifications. OPPEIN was successfully included in the list of provincial "Green Factories" announced by the Guangdong Provincial Department of Industry and Information TechnologyGreen design is the strategic core of OPPEIN"s commitment to sustainable development, aiming to reducethe environmental impact of products throughout their entire lifecycle from the source. We deeplyintegrate elements such as environmental protection, energy conservation, health, and recyclability intothe initial stages of product R&D and design, dedicated to providing consumers with home solutions thatcombine aesthetic appeal, functionality, and environmental value. OPPEIN Home Group Inc.Our green design permeates the entire process—from product concept and material selection to structuralprocesses, packaging and transportation, and even recycling and disposal—primarily adhering to theprinciples of "material reduction, low environmental impact, long service life and maintainability, andrecyclability and circularity." Green Design Principles By optimizing product structures and adopting lightweight designs, we minimize the Reduce consumption of raw materials, energy, and water resources while ensuring product performance and safety. We prioritize the use of renewable, recyclable, and Eco-friendly Commitment materials with Low a small environmental footprint, while strictly limiting or prohibiting the use of hazardous Environmental substances (such as formaldehyde and heavy metals) to reduce potential risks to the Impact environment and human health at the source. Durability & Design products that are durable, easy to maintain, and repair, extending their service life and Maintainability reducing waste generated by frequent replacements. We consider disassembly and material separation at the end of a product"s lifecycle, Recyclability & prioritizing single-material or easily separable composite structures to increase material Circularity recycling rates and support the circular economy.In the procurement of core raw materials such as particleboard, we implement sustainable sourcingpractices, prioritizing suppliers with FSC/PEFC forest certification to ensure that wood sources are legaland sustainable. At the same time, we actively promote the use of formaldehyde-free panels tosignificantly reduce the risk of formaldehyde emissions at the source, thereby safeguarding indoor airquality and consumer health. For specific details on raw material procurement standards andcertifications, please refer to the "Supply Chain – Sustainable Procurement" section.Clean production underpins the Group’s strategy for energy conservation, emission reduction, pollutionprevention at source and improved resource efficiency. Embedded in environmental policy, it runsthrough design, production and service via technological upgrades, process optimization and equipment OPPEIN Home Group Inc.renovation, fostering an efficient, clean and low-carbon modern production model. Environmentalprotection and emission reduction guide product research and upgrading. The Group develops andpromotes advanced clean production technologies to reduce and control key pollutants—including wastegas, dust, and wastewater—at the source. High-efficiency facilities, automated production lines andworld-class environmental treatment equipment further underpin source-side clean production. It haslaunched Asia’s first furniture powder-coating line, realizing zero VOC emissions in coating and overbased paint substitution and low-energy PUR edge-bonding and moulding technologies are also beingrolled out. By integrating smart manufacturing with green processes, the Group delivers Eco-friendlyCommitment home products, supporting the high-end and low-carbon transformation of Guangdong’smanufacturing industry. Case: Introduction of High-Efficiency, Energy-Saving Equipment In our clean production practices, we actively adopted high-efficiency, energy-saving equipment—the German Diefenbach continuous press. This equipment utilizes continuous flat-press technology and a fully digitalized control system, reducing electricity and heat consumption by 20% compared to traditional intermittent presses. Simultaneously, by precisely controlling panel thickness and density distribution, it improves wood utilization and saves 15% in raw materials. Replacing traditional high-energy-consumption processes with more efficient and energy-saving equipment not only reduces energy consumption and timber resource depletion at the source but also sets an energy efficiency benchmark for the engineered wood panel manufacturing sector. By continuously promoting the upgrade of green equipment across the industrial chain, we are embedding the concept of clean production into the front lines of manufacturing, helping to build a more low- carbon and sustainable industrial ecosystem. OPPEIN Home Group Inc. Case: Systematic Material Recycling We adopted a full-process recycling solution covering design, production and waste management. By combining CutRite software with the Group’s XMES system and adopting thin diamond saw blades, we lifted panel comprehensive utilization rate by 5%–10%. We also set standards for idle panel reuse and built waste conveying lines. Qualified leftover materials are automatically allocated to produce baseboards and fixtures. These measures form a complete closed-loop material system, cutting raw material use and solid waste output.We are committed to Eco-friendly Commitment green home products, integrating environmentalprotection, health and low-carbon concepts into the entire R&D and innovation process. Throughcontinuous iteration of green technologies, strict corporate standards and promotion of product carbonfootprint management, we strive to build healthier, safer home life for consumers, lead the custom homefurnishings industry’s green transformation, and construct a new healthy home ecosystem.In technology and standards, Our "Formaldehyde Reduction Enterprise Standard" limits formaldehydeemissions to ≤0.02 mg/m?, far exceeding the new national ENF standard (≤0.025 mg/m?). As an industryleader in environmental standards, we have continuously upgraded Eco-friendly Commitmenttechnologies, evolving from "Formaldehyde-Free 1.0" to "Formaldehyde-Free 4.0". For green productpromotion and certification, we actively pursue authoritative domestic and international greencertifications to enhance market and consumer recognition of our Eco-friendly Commitment philosophy.During the reporting period, the group standard "Formaldehyde-Free Engineered Wood and Its Products"(T/CNFA 3040-2025), co-developed by us with the Chinese Academy of Forestry, was officially OPPEIN Home Group Inc.approved and will take effect on August 1, 2025. Centered on "zero formaldehyde addition in production",it sets a more authoritative and stringent environmental benchmark for the wood-based panel industry.As a participating drafter, OPPEIN continues to lead the industry in environmental standard upgrading. OPPEIN"s Journey of Environmental Technology Upgrades Adopting formaldehyde-free base materials combined with patented formaldehyde- Formaldehyde-Free removing and antibacterial technology, officially ushering in the era of scientific formaldehyde removal. Formaldehyde-Free A leap from formaldehyde-free cabinet bodies to formaldehyde-free cabinets as a whole, Further refining technological applications, we pioneer a new blueprint for healthy living Formaldehyde-Free spaces—expanding from whole-cabinet formaldehyde removal to 360° spatial purification of cabinet doors and walls. Launching the Formaldehyde-Removing and Antibacterial Green Panel, which utilizes Formaldehyde-Free MDI formaldehyde-free technology combined with patented formaldehyde-removing actively purifies formaldehyde in the space. During the reporting period, the OPPOLIA was honored with the title of "2024 Home Furnishings Consumer Reputation List: Eco-friendly Commitment and Healthy Brand." OPPEIN Home Group Inc.Case: Formaldehyde-Free and Antibacterial Ai Xin BoardWe continuously upgrade Eco-friendly Commitment panels in green product innovation. New panelsfeature formaldehyde emission ≤0.02 mg/m?, exceeding the national ENF standard of 0.025 mg/m?.Launched in 2021, Ai Xin Board with patented purification and antibacterial tech has benefited overone million families. It achieves 95.1% formaldehyde removal rate, far above the national standard,plus over 99.9% antibacterial rate, top-grade mildew resistance and 98% TVOC removal rate withofficial certification. It realizes all-round healthy performance covering formaldehyde elimination,antibacterial, mildew-proof and deodorization.Case: Healthy CabinetsIn accordance with the "Brand Evaluation: Healthy Cabinets"(T/GIEHA 061-2023) issued by the China Brand Building IndoorAir Brand Cluster and the Guangdong Provincial IndoorEnvironmental Hygiene Industry Association, we passed theevaluation by an industry-designated third-party certificationbody. Our healthy cabinets achieved 100% pass rate in samplingreviews for formaldehyde emission, TVOC emission rate,antibacterial rate and durability, and were awarded the "Healthy Cabinets" brand logo. Our other homefurnishings also fully meet the requirements of "General Rules for the Evaluation of Healthy Whole-Home Customization" (T/CFDCC 0607-2023) and obtained Eco-friendly Commitment home productcertification. OPPEIN Home Group Inc.Case: Product Carbon Footprint CertificationIn April 2025, we assessed the product carbon footprint of the JZT-Q901G household gas stove andreleased the corresponding assessment report, a key step in promoting green low-carbontransformation in the kitchen appliance sector.Adopting a "cradle-to-gate" boundary (covering raw material extraction, transportation,manufacturing), the assessment shows each unit emits 77.6 kg CO₂eq. Raw materialextraction/processing (37.67%), manufacturing (34.07%) and transportation (26.29%) are the mainsources; electricity consumption in production accounts for 97.08% of emissions, highlighting theneed for energy conservation. We will optimize eco-design, raw material use and productionprocesses, accelerate energy-saving upgrades and clean energy adoption, and reduce the product’scarbon footprint to enhance green product competitiveness. "China Environmental Labeling Product Group Selected as "Grade A Supplier for Certification Certificate" Green and Low-Carbon Medical Building Materials" OPPEIN Home Group Inc.We fully recognize packaging’s impact on resources and the environment, and are committed topromoting its reduction, greening and circularity through strategy, systems and technological innovation,aiming to build a full-supply-chain green packaging system. We have refined packaging processes,revised standards to eliminate redundant components, and optimized protection to reduce productdamage and save resources. In logistics, we promote reusable packaging, adopt "palletized transport"and use returnable pallets, significantly cutting single-use materials like cartons and stretch film. Duringthe reporting period, the Group"s overall consumption of packaging materials showed a downward andoptimized trend. Specifically, consumption of corner protectors decreased by approximately 49% year-over-year, while consumption of edge/surface cushioning materials decreased by approximately 39%.Going forward, we will deepen packaging streamlining, optimize designs to reduce material use andincrease biodegradable/recyclable materials, explore a systematic packaging recycling system, andcollaborate with partners to extend green packaging across the entire value chain. Case: Practices in Packaging Reduction and Recycling ? Replacing single-use paper packaging with recyclable plastic crates in raw material procurement ? Precision optimization of corrugated cardboard dimensions to improve packaging material utilization and avoid material waste caused by size mismatches, resulting in a year-on-year reduction in corrugated cardboard consumption of approximately 6% ? Adopting stretch EPE material for surface protection, reducing consumption of surface protection materials while maintaining the same level of protection OPPEIN Home Group Inc.? For finished kitchen and clothing products, we optimized the removal of EPS foam packaging from long edges, reducing EPS edge protector consumption by approximately 26% and EPS corner protector consumption by approximately 36% year-over-year? Replace wooden pallets with reusable steel pallets for logistics and transportation OPPEIN Home Group Inc.To build an integrated, transparent, intelligent and Eco-friendly Commitment home furnishing deliverysystem, we implement the Group’s "intact, timely, and low-cost" delivery strategy. We focus on four coreareas—trunk line integration, scheduled freight, palletized transport and digitalization—to optimize ourlogistics model continuously. This establishes an integrated delivery platform, driving the full-chaingreen delivery system’s systematic upgrade. We will launch Delivery Reform Version 4.0 to build a fullydigital supply chain delivery network. Logistically, we will expand palletized transport and deploy theTIMS intelligent logistics system for end-to-end data integration. For delivery, we will adopt AI-poweredcustomer service, optimize localized delivery/warehousing, and enhance trunk line integration and last-mile management to boost service efficiency comprehensively.Centered on smart manufacturing, we have widely deployed automated and intelligent equipment infactories and warehouses. We’ve built an AGV and smart logistics network to form a"touchless"automated circulation system for materials, semi-finished and finished products. This eliminates waitingtime, empty runs and manual errors of traditional handling, greatly boosting logistics turnover efficiency.It also cuts energy consumption from personnel movement and idle equipment, enhancing source-sideenergy efficiency and reducing indirect emissions. In the workshops of our five major production bases, AGVs and forklifts achieve positioning accuracy of ±10 mm through laser navigation, allowing them to dock precisely beside equipment to complete material transfers. The system pre-schedules AGVs to stand by according to production rhythms, avoiding idle waiting during process transitions; when path conflicts occur, an automatic avoidance mechanism Laser-Guided is triggered, significantly reducing waiting times for material transport. AGVs OPPEIN Home Group Inc. The 20-meter-high intelligent automated storage and retrieval system (AS/RS) resembles a "floating bookshelf," with each storage bin assigned a unique code. AGV palletizers perform storage and retrieval operations at a speed of 120 meters per minute, with positioning accuracy of ±5 millimeters, completing a single operation within 30 seconds. When finished goods are put into storage, the system allocates storage bins based on "order zone + shipping time," ensuring efficient Smart turnover and 100% picking accuracy.Warehousing Full-Line Logistics Automation Ground-Based Automated Transport System OPPEIN Home Group Inc.By optimizing transportation organization models and integrating urban trunk lines, we have reducedunnecessary transport and turnover, thereby lowering carbon emissions from trunk line transportation.We have fully implemented the "palletized transport" model and achieved key stages of the "Three-YearSmart Delivery" initiative, including automated pallet stacking and pallet consolidation. Goods aretransported in standardized pallets, ensuring no pallet reloading throughout the entire process. From 2023to 2025, the Group"s retail palletized transport rate surged from 4.41% to 95.88%, with the mall palletizedtransport rate rising from 0.48% to 19.82%, and the transportation damage rate decreasing by 35.25%.We advanced the implementation of "trunk line transportation integration," significantly improvinglogistics efficiency by consolidating transport routes, increasing vehicle load factors, reducing departurefrequencies, and minimizing empty-run mileage. By utilizing the Intelligent Dispatch System (TIMS) toplan optimal routes and adopting a "rail-road" multimodal transport solution for long-distance transfersbetween bases, we established a more convenient and Eco-friendly Commitment transportation system.At the same time, the Group directly oversees the quality of logistics and transportation services,providing more timely, accurate, and low-carbon logistics services to meet customer needs and enhancedealer and customer satisfaction. During the reporting period, the Group"s logistics delivery customersatisfaction score reached 9.12 points (out of 10), a year-over-year increase of 5.07%. Case: Smart Cross-Base Logistics Material transfers between bases follow the "data-first" principle. When Tianjin needs to transfer panels from Chengdu, OPPEIN"s smart manufacturing system first transmits specifications, quantities, and quality data. After confirming inventory, it automatically generates a "rail-road" intermodal transport plan, ensuring delivery within 48 hours. Simultaneously, GPS is used to track the cargo"s location in real time, allowing the receiving party to plan for receipt and production in advance, achieving "zero-wait" handover.We have established a multi-tiered warehousing network comprising "main base—distribution/centralwarehouse—forward warehouse/retail store." By pre-positioning goods in regional warehouses nearconsumer markets, we integrate last-mile warehousing resources to enable "localized delivery of OPPEIN Home Group Inc.furniture and kitchen appliances." This standardizes and unifies "last-mile" logistics delivery servicestandards while reducing the risk of transportation damage. By restructuring the last-mile warehousenetwork, we have reduced waste of labor and resources in intermediate logistics stages, improvedlogistics efficiency and the success rate of one-time installations at the end-user level, and achieved dualoptimization of time and energy costs throughout the logistics and transportation process.We purchased or leased new energy buses to replace high-emission vehicles for official and shuttletransportation. At the same time, we strictly require vehicles and personnel entering the factory premisesto meet environmental standards. We have signed the "Safety and Environmental Protection Agreementfor External Vehicles and Personnel" with vehicle carriers, prohibiting vehicles that have not passedannual inspections, are scrapped, exceed exhaust emission limits, leak oil while driving, or dischargeother waste from performing transportation operations. We also require all carriers to dispose of and storewaste at designated locations and to turn off their engines to save energy when vehicles are parked andwaiting on the premises for extended periods.During the reporting period, we purchased and leased a total of 18 new energy sightseeing vehicles,medium-sized buses, and small passenger vehicles. This initiative is expected to reduce CO₂ equivalentemissions by approximately 73.3 tons annually and cut emissions of pollutants such as nitrogen oxides,non-methane hydrocarbons, and particulate matter by approximately 0.26 tons.We adhere to the solid waste management principles of "reduction, resource recovery, and harmlessdisposal," integrating the concept of a circular economy into the final stages of our operations. We arecommitted to maximizing the recovery and reuse of various types of waste during the production process,reducing reliance on virgin resources and the volume of final disposal, promoting a closed-loop flow ofresources, and contributing to the development of a circular society.At our production sites, we have established a systematic waste classification, recycling, and resourcerecovery system to ensure that the vast majority of general industrial solid waste is properly recycled ordisposed of in an environmentally sound manner. All recyclable general industrial solid waste (such asscrap wood, scrap metal, waste cardboard, and waste glass) is sorted, collected, and temporarily stored OPPEIN Home Group Inc.on-site. We have established long-term partnerships with legally licensed recycling companies, regularlyentrusting them with the professional recycling and reprocessing of the aforementioned waste. In thelogistics sector, we actively promote reusable packaging and transport containers as alternatives to single-use materials.In the future, building upon our existing production waste recycling system, we will further expand theboundaries of the circular economy. We will establish closer circular economy partnerships with suppliers,recyclers, and distributors to jointly design products and packaging that are easy to recycle, therebydriving a green and circular transformation across the entire industrial chain.We place high importance on ecosystem and biodiversity conservation and fully implement theecological sustainability goals set forth in the "China Biodiversity Conservation Strategy and Action Plan(2023–2030)." We are committed to identifying and minimizing potential negative impacts on the naturalenvironment in our operations, complying with relevant ecological protection regulations, andcontributing to the protection of natural habitats and biodiversity through sustainable procurement, sitegreening, and environmental compliance management.During the site selection phase for new projects, we factor in ecological impacts to ensure that projectlocations do not encroach upon ecological protection red lines or permanently protected ecological areas,and that our operations do not directly occupy or disrupt important local ecological functional areas suchas wetlands and nature reserves. All new construction and renovation projects undergo environmentalimpact assessment procedures in accordance with the law and obtain approval from the competentenvironmental protection authorities. Project construction and operations strictly adhere to the ecologicalconservation and pollution prevention measures outlined in the environmental impact assessment reportsand approvals. During the production process, we strictly implement clean production standards andpollution prevention measures, effectively manage risks of soil and groundwater contamination, andstrive to reduce the environmental burden of our production activities. In the procurement of our coreraw material, particleboard, we actively promote sustainable procurement policies, prioritizingcollaboration with suppliers holding internationally recognized forest certifications such as the Forest OPPEIN Home Group Inc.Stewardship Council (FSC) or the Programme for the Endorsement of Forest Certification (PEFC). Thisensures that timber is sourced from responsibly managed forests and adheres to strict standards forprotecting biodiversity, maintaining ecosystem functions, and safeguarding habitats of rare species. Noneof the Group"s or its subsidiaries" production sites are located within national nature reserves orbiodiversity priority areas. As of the end of the reporting period, the Group had no projects thatsignificantly impacted biodiversity.Furthermore, in the planning and construction of each production site, we allocate a certain proportionof land for greening, planting suitable native plants and providing habitats for small organisms such asinsects and birds. At the same time, we actively participate in various ecological and environmentalprotection activities, constantly monitoring the ecosystems and rare protected animals in the regionswhere the Group operates, and are committed to reducing the negative impact on biodiversity caused byemissions and resource use during our operations. Case: Participating in the "Two New" Pioneer Forest Tree-Planting Initiative to Support the "Green and Beautiful Baiyun" Initiative In March 2025, the Group organized a delegation of Party members to participate in the Baiyun District "Two New" Pioneer Forest Tree-Planting Event and the "Three Micro" Tree-Planting Campaign. In the designated area, employees personally planted saplings, putting the concept that "lucid waters and lush mountains are invaluable assets" into practice through concrete actions and adding new greenery to the "Green and Beautiful Baiyun" initiative. This event not only contributed to improving the local ecological environment but also conveyed the positive energy of green development to society, demonstrating the company"s commitment to advancing ecological civilization. OPPEIN Home Group Inc.An efficient, rigorous and green supply chain system serves as an important guarantee for the sustainabledevelopment of OPPEIN. Guided by the Group’s strategy of building a world-class outstanding homeenterprise, OPPEIN fully leverages its scale and brand advantages. Taking the digital transformation andupgrading of the Group’s supply chain as an opportunity, it advances the reform of the comprehensivesupply chain system and integrated procurement, moving toward the business goal of "improving quality,reducing costs and upgrading the system". In addition, the Group continuously builds a supply chainsystem compatible with the integrated home business model, and improves supply chain managementsystems. It firmly pursues coordinated development with partners, implements the sustainabledevelopment strategy of win-win cooperation and symbiosis, and builds a green supply chain featuringmutual benefit and co-prosperity.The Group continues to practice responsible procurement and incorporate sustainable procurement intoits ESG strategy. It sets annual emission reduction targets and green procurement proportion targets,which are promoted under the leadership of the Group’s senior management. In accordance with the"Bidding and Tendering Law of the People"s Republic of China" and other relevant laws and regulations,the Group has formulated the "OPPEIN Home Group Integrated Procurement Management Guidelines",the "OPPEIN Home Group Procurement Price Management Regulations", and the "OPPEIN HomeGroup Procurement Development and Supplier Selection Management Regulations". These policiesenable precise matching of supplier resources with procurement demands, strictly standardizeprocurement procedures, and unify internal material specifications as well as procurement technical andquality standards. The Group pursues high standards in the selection of raw materials and has establishedprocurement criteria stricter than national requirements. FSC and PEFC forest certification qualificationsare set as mandatory admission requirements for suppliers. The Group rejects high-carbon and high-consumption raw materials without sustainable qualifications, gives priority to recyclable, renewable andenvironmentally friendly materials with low environmental impact, strictly controls material safety,implements integrity management throughout the process, and realizes sustainable procurement. OPPEIN Home Group Inc. Supplier FSC-FM Forest Management Supplier Forest Certification CertificationThe Group is committed to building a green procurement supply chain. In accordance with the "OPPEINHome Group Raw Material Procurement Technical Standard Management Specification", it givespriority to suppliers with "China Environmental Labeling Certification (known as the "Ten Circles"certification)", so as to strictly control environmental access at the source. In terms of material structure,the Group sets quantitative substitution targets for recycled materials, reclaimed materials andagricultural waste-based materials, and gradually reduces reliance on virgin materials with highenvironmental load. In terms of chemical safety, it continuously promotes the application of raw andauxiliary materials with low or zero VOC emissions. Meanwhile, the Group strictly implements the seriesof "Technical Requirements for Environmental Labeling Products" (including Cabinet HJ/T 432,Furniture HJ 2547, Wooden Door HJ 459, etc.), and strictly enforces the Supplier "Material Self-Declaration" System to commit to eliminating hazardous substances. In the future, the Group will launcha green procurement management system to automatically screen sustainable suppliers, trackcertification qualifications and statistically measure emission reduction effects, thereby building a solidbarrier for end-to-end green procurement.The Group attaches great importance to raw material certification and strives to comprehensivelyincrease the certification proportion. It exercises strict management over suppliers’ timber sources,prioritizes suppliers that impose rigorous supervision on timber origins, and strictly prohibits rawmaterials of illegal origin from entering the Group’s supply chain. During the reporting period, the OPPEIN Home Group Inc.proportion of timber and paper raw materials traceable to their place of origin in the Group’s procurementreached 100%; the pass rate of raw materials complying with strict certification standards in procurementstood at 100%; and there were 406 suppliers certified with the ISO 14001 Environmental ManagementSystem. China Environmental Supplier Environmental Supplier Green Product Labeling Certification Management System Certification CertificationThe Group always regards material safety as the core of responsible procurement, continuously improvesthe safety and reliability of raw materials and products in the supply chain, and strictly supervisessuppliers’ Environment, Health and Safety (EHS) standards, striving to provide customers with safer andmore reliable home furnishing products.The Group has established a rigorous raw material quality and safety inspection system and formulatedthe "New Material (Product) Appraisal and Trial Management Regulations". Suppliers are required toprovide timely documents such as Material Safety Data Sheets (MSDS) and test reports issued byauthoritative third-party inspection institutions. Meanwhile, the Group conducts random product safetytests via its CNAS-certified laboratory, ensuring that products at the source meet safety performancerequirements including flame retardancy, corrosion resistance and compression resistance, as well assafety limit requirements for chemical substances such as formaldehyde, TVOC, and toluene. In addition,the Group has issued the "OPPEIN Home Group Contractor Safety Management Regulations". It clarifiesrequirements for contractors and suppliers regarding employees’ occupational health and safe workingconditions in procurement activities, reviews their safety qualifications and signs safety agreements. OPPEIN Home Group Inc.Partners are required to provide employees with qualified personal protective equipment and a safeworking environment, eliminate occupational health risk factors, and fully ensure safety and occupationalhealth in the raw material production process.To strengthen supply chain quality and safety management, the Group continuously improves themechanism for recovering liability-related expenses from suppliers, and encourages suppliers to enhanceproduct quality by establishing a quality traceability and assessment system. During the reporting period,passed ISO 45001 occupational health and safety management system certification. Qualification Certificate for Antibacterial Certification for Children-safe Grade Label Trial Use ProductsIn terms of supply chain integrity management, the Group has formulated systems including the"Detailed Working Rules for Off-site Departments of the Supply Chain Management Center", the "TrialInspection Operation Rules of the Supply Chain Management Center", the "Trial Point ManagementOperation Rules of the Supply Chain Management Center", and the "Ten Prohibitions for Staff of theSupply Chain Management Center in Communications with Suppliers". These regulations strictlystandardize interactions between supply chain practitioners and suppliers, firmly oppose all forms ofbribery in procurement activities, including disguised forms and the direct offering or acceptance ofbribes, and strive to build a fair and incorruptible supplier relationship. To create a fair, impartial andtransparent business environment, the "Integrity Cooperation Commitment Letter" is incorporated intothe procurement contracts of the Group and its affiliated enterprises. The document clearly sets out OPPEIN Home Group Inc.integrity and self-discipline requirements that all suppliers must abide by, and specifies reportingchannels for improper interest conduct, so as to ensure open cooperation and safeguard the interests ofboth parties.During the reporting period, all suppliers of the Group have signed the "Integrity CooperationCommitment Letter", achieving a signing rate of 100%. A total of 5 integrity training sessions wereorganized for suppliers. Integrity Cooperation Commitment Letter Supplier Integrity PromotionThe Group optimizes its supplier management system to cultivate high-quality industrial resources and OPPEIN Home Group Inc.build classified supplier databases. Suppliers are categorized as core and reserve suppliers, with overallsupply chain quality upgraded via dynamic evaluation mechanisms. Digital, intelligent and streamlinedgovernance strengthens sustainable supply chain capacity. The Group treats SMEs equally and expandscooperation opportunities, forging long-term partnerships to help them upgrade technology andmanagement capabilities. It also advances supplier ESG performance evaluation, promotes coordinateddevelopment with partners, practices mutually beneficial sustainable strategies, builds a green win-winindustrial ecosystem, and develops a fully covered, efficient and resilient diversified supplier system.During the reporting period, the Group’s supplier database included a total of 2,089 suppliers, amongwhich 2,081 were domestic suppliers and 8 were overseas suppliers, all of whom have signed andcomplied with the Group’s supply chain code of conduct. The Group’s localized supply chain strategyhas achieved remarkable results, with both the proportion of local suppliers and the proportion of localprocurement amount exceeding 99%, providing strong support for the stable operation and operationalefficiency of the supply chain.The Group deeply integrates ESG management philosophy into the supplier management system andattaches great importance to supplier ESG performance. It has established a full-process sustainablesupply chain management mechanism, conducting ESG admission evaluation on newly introducedsuppliers covering environmental management, work safety, labor rights and interests, and socialresponsibility. In addition, the Group gives priority to suppliers with sustainable certifications andrequires all suppliers to sign the "Supply Chain Code of Conduct". Through institutionalized andstandardized management measures, the Group continuously elevates the ESG management level of thesupply chain, and builds a value chain ecosystem that is environmentally friendly and sociallyresponsible.The Group thoroughly embeds ESG evaluation into the full lifecycle management of suppliercooperation, and establishes a three-dimensional evaluation system covering environmentalresponsibility, social responsibility and governance effectiveness. It systematically identifiesimprovement opportunities for suppliers in key areas such as resource utilization efficiency, labor rights OPPEIN Home Group Inc.protection, and business ethics compliance, driving the supply chain to transform from compliancecontrol to value co-creation. By conducting supplier ESG evaluation and admission surveys, the Groupforms a dynamic closed-loop management model encompassing evaluation, feedback, and optimization,strengthens the consensus on sustainable development across the supply chain, helps suppliers improvetheir ESG governance capabilities, and jointly builds a more resilient industrial ecological chain againstthe backdrop of the dual-carbon goals.During the reporting period, a total of 2,089 suppliers have signed and complied with the Group’s SupplyChain Code of Conduct. Among them, 613 suppliers hold sustainable certifications, and 30 suppliershave completed environmental and social review (ESG review). OPPEIN Supplier ESG Evaluation System Evaluate suppliers" energy consumption and emission status, require them to provide energy audit reports, and ensure compliance with environmental protection Environmental standards. Evaluation Inspect suppliers" waste disposal methods, encourage the adoption of Indicators environmentally friendly treatment technologies, and reduce the impact on the environment. Examine suppliers" protection of employees" rights and interests, including salary and benefits, working hours, and labor safety, and eliminate illegal employment Social practices. Evaluation Evaluate suppliers" community relations, pay attention to their public welfare Indicators participation and community feedback, and promote suppliers to fulfill their social responsibilities. Verify suppliers" corporate governance structure, pay attention to decision-making Governance transparency and internal supervision mechanisms, and ensure standardized Evaluation enterprise operation. Indicators Verify suppliers" business ethics, guard against commercial bribery and unfair competition practices, and maintain a fair market competition environment. OPPEIN Home Group Inc. Supplier ESG Full Lifecycle Management (Taking OPPEIN Particleboard as an Example) Classify according to the degree of environmental impact of raw materials, conduct annual audits on core suppliers covering Hierarchical Audit and environmental compliance, carbon emissions, resource Dynamic Evaluation consumption, and labor safety, and establish a "red-yellow-green" rating and exit mechanism. Clarify carbon emission reduction targets, waste disposal Signing of Sustainable requirements, traceability requirements, and penalty clauses for Procurement environmental protection violations in procurement contracts, and Agreements link sustainability indicators with payment and contract renewal. Provide suppliers with environmental protection technology Supplier Empowerment training, green electricity procurement guidance, and circular and Collaborative process support, jointly research and develop low-carbon production Carbon Reduction solutions, and share emission reduction benefits.As an active practitioner in supply chain ESG development, the Group has proactively built a full-chainempowerment system, and supports the sustainable development of suppliers through core approachesincluding green transformation support, joint development of social responsibility, and governancecapability improvement. The Group has established a supply chain governance exchange system, andshares valuable experience in risk management, corporate strategy and strategic planning with suppliers,assisting them in improving their internal governance structure, enhancing the soundness of decision-making and operational efficiency. Both parties jointly explore a sustainable development governancemodel suitable for the home furnishing industry. In terms of social responsibility fulfillment, the Groupstrengthens high-quality cooperation with suppliers to enhance the corporate social image and brandvalue. Meanwhile, it has built an employee exchange mechanism for the supply chain system. Througha cross-enterprise employee exchange platform, the Group promotes experience sharing and capacitybuilding in the supply chain system covering labor rights and interests protection, occupational healthand safety, and employee benefits, so as to drive the overall improvement of social responsibilityperformance across the entire supply chain. OPPEIN Home Group Inc.During the reporting period, the Group organized 18 ESG training sessions for suppliers. Group"s Support for Suppliers" ESG Performance Improvement Provide suppliers with environmental protection technology training, share energy conservation and emission reduction experience, and help suppliers improve their Technology environmental management capabilities; Conduct social responsibility training to and Training enhance suppliers" capabilities in protecting employees" rights and interests and Support handling community relations, so as to promote the harmonious development of society. Provide suppliers with green financial resources, assist them in obtaining loans and Resource and subsidies for environmental protection projects, and promote their green Cooperation transformation; Establish a supplier cooperation platform to facilitate experience Support exchange and resource sharing among suppliers, and jointly improve ESG performance. Set up a reward mechanism for suppliers with excellent ESG performance, and Incentive and provide incentive measures such as order preference and honorary recognition; Feedback Regularly feedback ESG evaluation results to suppliers, put forward improvement Mechanism suggestions, and help them continuously improve their ESG performance.The Group advances digital strategy by issuing unified procurement management guidelines andcategory strategy regulations, and carries out comprehensive supply chain reform to restructureintegrated procurement workflows. Following connectivity, collaboration, sharing and standardizationprinciples, it deployed a supplier collaboration SRM system to drive centralized procurement platformcoordination. This achieves end-to-end connection, information synchronization and full-processmonitoring across the supply chain, forming a fair, transparent and efficient digital supplier managementframework.The Group has built a digital management system centered on the SRM (Supplier RelationshipManagement) platform. Through system integration and process reengineering, it realizes closed-loop OPPEIN Home Group Inc.full-lifecycle supplier management covering source selection and admission, registration review,conversion from potential to qualified suppliers, daily supervision, and elimination mechanism. Theplatform not only ensures the orderly and controlled operation of the supplier system, but also supportsonline collaboration throughout the entire procurement process, including contract signing, inquiry andbidding, order placement and deposit notification. Meanwhile, the Group has formulated supportingadministrative rules for the SRM system to fully standardize system operations, supplier conduct anddata security management, effectively improving supply chain operational efficiency and risk controlcapability. In addition, the Group deepens integrated procurement collaboration via a dual closed-loopmechanism, establishes an efficient two-way communication channel with suppliers, and greatlyaccelerates the flow of supply chain information.During the reporting period, all production bases and procurement organizations under the Group havebeen incorporated into unified SRM management. SRM System Management Regulations ? Operating Standards: Formulate the SRM System Operation Manual to clarify operational standards and time requirements for each link. ? Account Management: Implement a "one person, one account" real-name System Application system with role-based access control (general users, administrators, Specifications supplier accounts). ? Data Standards: Standardize material codes, supplier codes, and qualification document templates to ensure data consistency. ? Admission Requirements: New suppliers must complete registration and Supplier-side submit complete qualifications via the SRM system. No business Management activities are allowed without system approval. ? Tiered Management: Establish a tiered protection mechanism for Data Security and supplier commercial information, implementing permission isolation for Compliance sensitive data. OPPEIN Home Group Inc. SRM Supply Process Realize two-way communication between the Group and suppliers via "two closed loops"Leveraging the reform of its comprehensive supply chain system, the Group advances supply chaininformatization construction by restructuring the IT architecture and collaborating with externalresources to enhance overall capabilities. Through annual planning, the Group focuses on implementingsolutions for core modules including procurement specifications, e-platform, cost forecasting, risk earlywarning and performance evaluation. Meanwhile, it improves the basic data and labeling system to laya solid foundation for building an efficient, transparent and controllable digital supply chain. OPPEIN Home Group Inc. Based on the results of the comprehensive supply chain reform, reorganize the informatization development roadmap of the supply chain and optimize the informatization architecture. Collaborate with external resources to explore opportunities to optimize the supply chain digitalization, and leverage external resources as needed to enhance the digital maturity of the supply chain. Formulate the annual supply chain informatization plan. Starting from each Supply Chain functional module of the supply chain, develop targeted informatization solutions Informatization Construction for each module, including standardization of procurement requirements, E- platform for sporadic procurement, integration of new material development processes, reconstruction of material certification processes, cost database, price forecasting, automatic price extension, supplier risk early warning, supplier performance evaluation, and confidential price inquiry, and advance the implementation as planned. Improve the system"s basic data and data labeling system to lay the necessary groundwork for system application.Benchmarking against world-class home furnishing enterprises, the Group selects top-tier and highlyspecialized suppliers in the industry to establish long-term strategic cooperative relationships. Guided bya series of management systems and procedures, including the “Supplier Development and SelectionManagement Regulations," "Supplier Freezing and Exit Management Regulations,” “SupplierOperational Performance Appraisal Management Regulations,” and the “Supplier Change andReplacement Management Regulations,” the Group implements dynamic management of suppliersacross dimensions such as development and admission, due diligence, tiered management, performanceappraisal, and freezing and exit. By evaluating suppliers’ capabilities in technology, quality, cost,response and delivery, safety and environmental protection, and other aspects, the Group continuouslyimproves the full-lifecycle supplier management system, driving suppliers to continuously improve andenhance their supply capabilities. OPPEIN Home Group Inc. Supplier Management ProcessThe Group continuously standardizes supplier admission criteria and has formulated the “OPPEIN HomeGroup Supplier Development and Selection Management Regulations.” It treats small and medium-sizedenterprises equally, avoids discriminatory admission conditions, and strictly implements the new supplierselection process centered on qualification review, on-site inspection, product appraisal, and supplierconversion to formal status. Based on business types, suppliers are classified into production-typesuppliers and non-production-type suppliers (trade/agency), all of which are required to providequalification certificates mandated by national laws and regulations. The Group implements categorizedadmission management for different types of suppliers. It conducts research and analysis on the industrialdistribution of supply resources, analyzing their geographical concentration or dispersion and thecompetitiveness of supply industries in different regions, and formulates a supplier industrial regionallayout plan suitable for the company to select suppliers reasonably by region.During the reporting period, the Group identified and selected a total of 823 new suppliers, of which 601passed the assessment and were converted to formal suppliers, and 62 potential suppliers were rejecteddue to non-compliance. OPPEIN Home Group Inc. Admission Assessment Process Supplier Conversion Qualification Review On-site Inspection Product Appraisal to Formal Status Upon receiving the Production-type After the supplier After passing the above supplier questionnaire suppliers must undergo passes the on-site processes, the supplier submitted by the an on-site inspection inspection, the Group’s can proceed with potential supplier after review. An on-site Supply Chain signing the registering in the SRM inspection review team Management Center procurement contract, system, the Group composed of the and demand collecting performance engineers conduct supply chain, R&D, departments will bonds, issuing initial review and process, quality, and conduct small sample purchase orders, and preliminary review, EHS departments will and small-batch other related work to and comprehensively conduct scoring appraisal. Formal become a formal compare the results of respectively. cooperation can only supplier within the the initial review and begin after the Group’s system. preliminary review. appraisal is passed. Qualification Review Checklist Supplier Type Questionnaire Content Legal representative information / Enterprise qualifications / Production and operational Production-typeProduction-type capabilities / Quality and technical capabilities / Questionnaire Pre-sales and after-sales service capabilities / Financial information / Related suppliers, etc. Legal representative information / Enterprise Non-production-type qualifications / Pre-sales and after-sales serviceNon-production-type Questionnaire capabilities / Financial information / Agency qualifications, etc. Simplified Legal representative information / FinancialOthers Questionnaire information OPPEIN Home Group Inc.The Group attaches great importance to supplier due diligence and requires production-type suppliers toundergo mandatory on-site inspection and review. Led by the Supply Chain Management Center, an on-site inspection and review team is formed by relevant departments, including supply chain, R&D, processengineering, quality, and EHS. The team conducts on-site inspections of suppliers and provides reviewcomments, and proposes optimization directions for areas requiring improvement. An OPPEIN auditmatrix is developed across 12 dimensions, together with the "Supplier On-site Inspection and ReviewForm", "Supplier Delivery Capability Audit Form", and "Supplier Audit Report", ensuring fulltraceability from on-site inspection to final decision-making.During the reporting period, the Group continued to conduct on-site inspections of new suppliers, with atotal of 124 suppliers inspected. Inspect the supplier"s production processes Inspect the supplier"s key equipment Inspect the supplier"s sandblasting equipment Inspect the supplier"s packaging processesThe Group has established a scientific tiered and categorized supplier management system. First, basedon the characteristics of procurement categories, it implements horizontal categorized management by OPPEIN Home Group Inc.business nature, product characteristics and service types. Meanwhile, it conducts vertical tieredevaluation based on core indicators such as supplier qualification and credit, historical performance,management level and innovation capability, forming a matrix management structure to realize precisematching and dynamic optimization of supplier resources. Materials and Finished Goods Strategic Supplier Production Support and Auxiliary Preferred Supplier Supplier Marketing Services Supplier Tiering Qualified Supplier Classification Administrative Materials and Restricted Supplier Services Disqualified SuppliersThe Group has formulated the “OPPEIN Home Group Supplier Operational Performance AppraisalManagement Regulations” to promote standardized control of suppliers and improve suppliermanagement capabilities. Supplier operational performance appraisal refers to the dynamic managementof suppliers within the system, evaluating their capabilities in technology, quality, cost, response anddelivery, safety and environmental protection, and other aspects to measure their supply performance.The Group adopts unified evaluation standards to conduct fair and impartial assessments of suppliers.The appraisal results serve as the basis for decisions such as the allocation of procurement shares, supplierselection and elimination, evaluation of partnership types, and selection of suppliers for R&D productparticipation.The Group conducts monthly and annual assessments of suppliers and has developed monthly/annualmanagement flowcharts. The Supply Chain Center, Quality Department, Procurement Department, andPlanning & R&D Department jointly carry out supplier operational performance appraisal. The monthlyperformance appraisal only evaluates quality, response, and delivery performance; quality, response, anddelivery performance are assessed according to the respective scoring rules of each business line,ultimately outputting "red-yellow-green" light indicators. The annual performance appraisal is acomprehensive performance evaluation, which comprehensively measures suppliers across dimensionsincluding technology, quality, cost, response and delivery, and safety and environmental protection,ultimately outputting comprehensive evaluation levels of "Excellent", "Qualified", "Restricted", and"Eliminated", with the appraisal results publicly announced. OPPEIN Home Group Inc.During the reporting period, the Group conducted performance appraisals for all non-one-timeprocurement suppliers, with a total of 1,105 suppliers assessed. Supplier Operational Performance Appraisal Evaluate suppliers in technical aspects such as independent R&D Technical Appraisal capability, product prototyping capability, product stability, and R&D services, with annual assessment conducted. Evaluate suppliers based on incoming material quality compliance, in-use quality compliance, customer quality feedback, integrity incidents, and Quality Appraisal major quality anomalies, with both monthly and annual assessments conducted. Evaluate suppliers in aspects such as price reasonableness, quotation Cost Appraisal timeliness, and business service level, with annual assessment conducted. Evaluate suppliers based on on-time delivery performance, delivery Response and standardization, delivery support services, and response capability, with Delivery Appraisal both monthly and annual assessments conducted. Evaluate the environmental performance of suppliers’ products, including testing for harmful substances such as formaldehyde emission, TVOC Safety and emission, and heavy metal content. For products involving water, Environmental electricity, gas, flammable and explosive materials that have a significant Protection Appraisal impact on personal and property safety, annual assessment of product safety indicators is required.To ensure standardized control of the supply chain, the Group has formulated the “Supplier Freezing andExit Management Regulations,” which refine the operational procedures and requirements for each linkin the supplier freezing and exit process, ensuring that the products or services provided by suppliersmeet the requirements of OPPEIN and its customers.During the reporting period, a total of 5 suppliers had their cooperation terminated due to non-compliance. OPPEIN Home Group Inc. Circumstances for Freezing and Exit The supplier experiences major financial difficulties Freezing The supplier engages in non-compliant supply behaviors The supplier exhibits relatively serious abnormal supply behaviors The supplier voluntarily proposes to exit A supplier will be eliminated by the Group in the following circumstances: a. Suppliers rated "Eliminated" in the annual appraisal; Exit b. The Group no longer needs the products or services provided by the supplier; c. The supplier’s annual operational performance is rated as eliminated; d. In daily operations, the supplier is deemed a non-conforming provider due to major issues and eliminated.The Group attaches great importance to conflict minerals for itself and suppliers, strictly complying withinternational conventions, national laws and industry initiatives (including the International Bill ofHuman Rights, OECD guidelines, China’s mineral supply chain guidance and the U.S. SEC ConflictMinerals Rule). Upholding legal operation and social responsibility, it has established and improved aconflict mineral traceability system and supply chain due diligence mechanism to ensure raw materialsare traceable and compliant. The Group signs conflict mineral avoidance statements with suppliers,conveys compliance requirements to all supply chain partners, and conducts regular conflict mineralaudits to eliminate risks. Partners illegally using conflict minerals will have cooperation terminatedimmediately with rectification measures.In terms of supply chain control, the Group has formulated a sound conflict mineral traceabilitymanagement system, and retains relevant documents such as mineral raw material procurement contracts,origin certificates, mining compliance documents, and smelting and processing certifications. It ensuresthat mineral raw materials used in each batch of supplied products can be traced back to legally minedsources, with relevant documents kept for no less than the minimum retention period required by partnersand applicable laws and regulations. Meanwhile, the Group undertakes to provide conflict mineralinvestigation materials as required, including but not limited to the latest RMI Conflict MineralsReporting Template (CMRT), Extended Mineral Reporting Template (EMRT), mineral source OPPEIN Home Group Inc.certificates, and supply chain due diligence reports for compliance review. It accepts regular and irregularaudits and spot checks (including document review and on-site verification), and actively providessupporting documents to prevent potential conflict mineral risks in the supply chain.During the reporting period, no use of conflict minerals was identified within the Group. Supplier Statement on Conflict Mineral AvoidanceTo further improve the supplier management system and ensure the quality and stability of material andfinished product supply from the source, the Group has formulated the “Designated Secondary (andAbove) Supplier Management Regulations” to strengthen the management of group-designatedsecondary (and above) suppliers."Group-designated secondary (and above) suppliers" refer to the generalterm for suppliers designated by the Group based on operational and development needs, which supplymaterials or finished products to the Group’s first-tier suppliers (hereinafter referred to as "first-tiersuppliers") after processing, and whose products or services are ultimately used by the Group. The Groupincorporates secondary suppliers into the Group’s supplier system management, standardizes theirbusiness processes, business responsibilities and operational practices throughout the entire supplyprocess, and requires all responsible entities to effectively perform their management responsibilities forOPPEIN-designated secondary suppliers, forming an effective quality control mechanism. The Groupwill continuously build an efficient, reliable and competitive supply chain, continuously optimize the OPPEIN Home Group Inc.supply chain ecosystem, and strive to create a sound supply chain environment. Management Specifications for Group-Designated Secondary (and Above) Suppliers The designation of secondary suppliers strictly adheres to the "competition Principles and principle". Each demand department designates secondary suppliers and initiates Approval the official document approval process, with co-signatures from relevant Requirements department heads and final approval by the President’s Office. Secondary suppliers shall be incorporated into unified management under the Business supplier system, in accordance with the "Procurement Development and Supplier Compliance Selection Management Regulations". Multi-party agreements shall be signed with Management suppliers that have business connections and secondary suppliers. Conduct annual capacity assessments and capacity execution supervision for suppliers; release secondary supplier supply information through the "Group- Supply Designated Secondary Supplier Information Filing". In case of commercial Assurance disputes coordinated by the Group’s Supply Chain Management Center, suppliers Management shall not arbitrarily stop supplying; replacement or counterfeiting of secondary supplier products is strictly prohibited. Formulate a management mechanism for the coordinated management of Quality secondary supplier deliveries, as well as penalty schemes for cases where Assurance secondary supplier supply anomalies cause the primary supplier to fail to fulfill its Management delivery obligations to the Group. Formulate a management mechanism for the coordinated management of Delivery secondary supplier deliveries, as well as penalty schemes for cases where Management secondary supplier supply anomalies cause the primary supplier to fail to fulfill its delivery obligations to the Group.The Group regularly conducts supplier training, covering procurement expertise, negotiation skills,supply chain management, laws and regulations, and other aspects to improve the overall professionallevel of the team. Attaching great importance to the sound cooperative relationship with externalsuppliers, the Group actively carries out supplier training and exchange activities, expecting all supplier OPPEIN Home Group Inc.partners to work hand in hand with us to create a new chapter of "joint evolution, win-win and sharedbenefits".During the reporting period, the Group conducted a total of 85 supplier training sessions, benefiting 132suppliers.We carry out exchanges with suppliers through various forms, including timely mutual visits withsuppliers, global supplier conferences, supplier quality review meetings, various analysis meetings,seminars, communication meetings, and supplier counseling. We have established a soundcommunication mechanism and supplier assistance channels to ensure that both parties work together,achieve mutual benefit and win-win results, and conduct quality collaboration. External Supplier SeminarsThe Group continuously strengthens the professional training of internal supply chain staff. It inviteshigh-level external lecturers to conduct training based on the professional skills required for each position.A business knowledge sharing platform is established to enhance the review of team work cases and thecollection of industry information. The Group formulates a central work manual and posts workrequirements, enabling new employees to quickly familiarize themselves with work processes and adaptto their positions. It strictly controls the quality of incoming materials, and improves the professionalskills and knowledge level of supply chain staff through training and tests for internal supply chain staff.Only those who pass the test are certified to work in their positions. OPPEIN Home Group Inc.OPPEIN adheres to the philosophy of "putting the consumer first and crafting home furnishings with theprecision of aircraft manufacturing." We implement a "Quality + Service" dual-drive strategy to builddistinctive core product competitiveness, deepen service value through multi-channel strategies andinnovation to advance brand service models, and integrate sustainable development into all aspects ofproduction and services. We increase Eco-friendly Commitment and healthy product ratios, acceleratethe development of new smart home models, and continuously improve product and service quality toprovide consumers with a more comfortable, healthier and high-quality customized home experience.The Group has always regarded product quality as the foundation of our business and the customerexperience as the cornerstone of our corporate development. As consumer demands for the quality oftheir home environments continue to rise, we have deepened our focus on product quality. From oursmart manufacturing scale—which dominates Asia—to industry-leading AI-driven manufacturingtechnology, and national-level testing standards, OPPEIN consistently leads the home furnishing industryto new heights through efficient smart manufacturing and meticulous R&D.We strictly adhere to the "Product Quality Law of the People"s Republic of China" as well as applicablequality-related laws, regulations, and standards in all regions where we operate. We are activelyimplementing the Group"s Quality Transformation 2.0 strategy, initiating organizational reforms inquality management, launching a series of quality transformation projects, establishing a product qualitymanagement system, and building an integrated quality assurance framework to continuously enhanceproduct quality and efficiency. OPPEIN Home Group Inc.The Group Was Selected for China Quality Press"s "Light of Quality · Strong Nation Project"OPPEIN Whole-Home Appliances Wins the "Rock-Solid Award" at the 15th China HomeAppliance Marketing Annual Conference and the 2025 China Home Appliance Industry Awards OPPEIN Home Group Inc.We continuously refine our full-lifecycle quality management system, which covers product R&D,production, logistics, and sales, and constantly improve our quality management model. We haveestablished a "prevention-first" quality management objective to ensure that product quality and safetyare controlled throughout their entire lifecycle. We have established a comprehensive quality controlsystem featuring "triple quality checks during development + initial inspection at each process stage +full AI visual inspection + IT-based error-proofing checks." By addressing multiple dimensions—including "design quality," "raw material quality," "manufacturing process quality," "logistics quality,"and "installation quality"—we refine our quality control framework, drive product quality innovation,and ensure that every product meets high standards and every service meets strict requirements.During the reporting period, both the Group and its subsidiary, Aowei Decorative Materials Co., Ltd.,obtained dual certification for the ISO 9001 and GB/T 19001 quality management systems. IQNET Quality Management System CQC ISO 9001 and GB/T 19001 Quality Certification Management System Certification? Management Strategy, Policies, and ObjectivesWe actively implement the "Three Principles, Five Standards, and Two Enhancements" quality strategyand have established the quality policy of "Striving for Excellence, Building Trust Through Integrity, andPursuing Perfection." With the improvement of quality and efficiency as our core objective, wecontinuously drive quality improvement initiatives and are committed to returning to the essence ofbusiness operations through the continuous optimization of our products and services. OPPEIN Home Group Inc. Quality Policy Quality Objectives Quality Strategy ? Striving for ? The pass rate for Three Principles, Five Standards, and Two Enhancements Excellence. finished product ? Three Principles: Compliance with customer ? Earning shipment inspections requirements, suitability of the management system, and Trust is no less than 95%; systematic quality improvement through ? On-time delivery rate ? Five Standards: Information-based quality Sincerity. for product orders of management, automated quality testing, professional staff, ? Striving for no less than 92%; standardized underlying logic of quality management, and Perfection. ? Product quality institutionalized quality improvement mechanisms reputation score of no ? Two Enhancements: Product quality enhancement less than 8.0. and customer satisfaction enhancement? Organizational and Institutional SafeguardsWe have established a documented quality management system in accordance with the GB/T 19001-"Quality Management Regulations," "Quality Assessment Management Provisions," "Quality IntegrityManagement Measures," and "Quality Veto Assessment Mechanism","Quality Breakthrough AwardIncentive Mechanism," "Key Negative Quality Incident Management Specifications," "Quality IncidentManagement Specifications," and "Logistics Quality Audit Management Specifications," among otherquality management systems, thereby forming a systematic framework covering "leadership, planning,support, operation, performance evaluation, and improvement." During the reporting period, the Grouprevised and improved the "Quality Manual," further refining the company"s quality management system.The Group Quality Management Center, as the highest governing body of the system, is responsible forthe establishment, maintenance, review, and improvement of the system. Through the "QualityManagement System Elements and Departmental Responsibilities Allocation Table," qualityresponsibilities are clearly assigned to each business line, production base, and functional department,ensuring that "everyone is responsible for quality." OPPEIN Home Group Inc.Selected Quality Management Measures:Quality performance evaluations, quality breakthrough incentive awards, quality veto evaluation mechanisms,quality integrity management measures, quality performance data audits, management of critical qualityincidents, and quality incident management, etc. Comprehensive Overview of the Group"s Quality Evolution R&D Quality Design Quality Raw Material QualityEstablish a research and Group-wide Inclusive Empowerment Transformation of the qualitydevelopment quality assurance System + Knowledge Academy; reliability testing system;system based on the "whole- Design Process App + System Transformation of the newhome" concept. Interaction; product quality control system. Visual error-proofing. Process Quality Transportation Quality Installation QualityBreakthroughs in automated Reforms to transportation models, Precisely identify secondarydimensional and edge including the innovative "shuttle residual issues and implementinspection; system" and "escort" delivery models; tiered and categorized controlDeepened application of AI Large-scale delivery reform projects. measures to effectively curb thevision inspection and the quality recurrence of persistent problems.cloud platform;Case: CNAS-Accredited Professional Testing LaboratoriesThe Group has built national-level CNAS labs at five domestic bases, covering 5,900 square meters.Fitted with over 420 high-precision devices, it delivers over 160 professional testing services. CNAS-accredited since 2018, its results are recognized across 100+ regions. It strictly tests raw materialperformance, panel strength and product reliability, offering authoritative technical support for full-process quality control to ensure superior product quality. OPPEIN Home Group Inc.? Digital Empowerment of Quality ControlWe are vigorously advancing the digital transformation of quality management by building a "QualityCloud" system. By integrating the underlying data across all quality modules, we have achieved fulldigitalization and visualization of data—from incoming supplier materials and in-process inspections topost-market issues. Key quality indicators are displayed in real time via data dashboards, providingsupport for management decision-making. Through systematic initiatives—including organizationalrestructuring and mechanism optimization, IT infrastructure development, the application of automatedinspection technologies and systems, and the establishment of quality control systems for raw materialsand design—our overall quality reputation score reached 8.70 out of 10, representing a year-over-yearincrease of 6.62%. Case: AI Visual Inspection We leverage digital technologies to deeply empower quality control, deploying AI vision inspection systems on a large scale across critical processes such as panel dimensions, edge banding quality, hole positioning accuracy, and surface defects. Using deep learning algorithms, we achieve millisecond- level automatic judgment and sorting, replacing traditional manual visual inspection. This significantly improves the consistency and accuracy of inspections, effectively intercepts minute defects, and raises defect identification accuracy to 0.1 millimeters. It reduces the risk of defective products entering the market, with a process product pass rate of 99.8%, establishing a comprehensive digital quality traceability and control barrier for smart manufacturing. Case: Material Quality Data Platform We have built a material quality data platform designed to enable end-to-end traceability of materials. By implementing "one item, one code" and integrating physical codes with logos, the system can automatically identify suppliers. This platform consolidates data across the entire supply chain— including supplier onboarding, incoming material inspection, in-process feedback, and post-market issues—to enable automatic anomaly alerts and precise traceability. When quality issues arise, the system can quickly pinpoint the specific supplier, batch, or even individual board, providing a data foundation for accurate performance evaluation and driving supplier improvements, thereby effectively enhancing material quality reliability. OPPEIN Home Group Inc.? Quality Assessment and Improvement MechanismsWe have established robust quality assessment and incentive-constraint mechanisms to ensure qualityrequirements are fully implemented. We have formulated the "OPPEIN Group Quality Veto AssessmentManagement Specifications," which incorporates outcome metrics such as "product quality reputation"and "External Quality Failure Cost Rate," as well as process indicators such as "Number of QualityIncidents," into the performance evaluations of key executives, including Business Line GeneralManagers, Base General Managers, and Plant Managers; triggering severe criteria (such as primaryresponsibility for Grade A/B quality incidents) can directly initiate the "dismissal" assessment procedure,reflecting the rigid principle of "quality veto."At the same time, we systematically identify risks in management systems, customer audits, and internalaudits on a regular basis and formulate preventive measures. Additionally, through tools such as internalaudits, management reviews, non-conforming product control, corrective actions, and QCC (QualityControl Circle) activities, we have established a complete PDCA cycle.We actively promote the Group"s key quality systems, mechanisms, and policies. We have formulatedthe "OPPEIN Home Group Quality Talent Certification and Empowerment Management Guidelines,"established base-level quality committees, and clarified the primary entities responsible for quality. Weuphold the spirit of our quality culture—"focus on core areas, closely monitor top-tier performance, delveinto the field, benchmark against industry leaders, and ensure full employee participation"—to ensurethat the quality management system is "interconnected at every stage, with everyone takingresponsibility."We have established a tiered and categorized quality culture training system covering all employees.Training content is closely aligned with practical operations and encompasses quality policies, objectives,standard procedures, tools and methods, as well as case studies and lessons learned from incidents. Thisensures that employees not only master job-specific skills but also deeply understand the importance ofquality to both the company and themselves, thereby continuously enhancing their professionalcompetence and fostering a quality management culture where "everyone takes responsibility."Duringthe reporting period, the Group and its various bases conducted a total of 78 quality culture trainingsessions, reaching a cumulative total of 1,570 participants, with a total training duration of 48.5 hours. OPPEIN Home Group Inc.We always prioritize consumer safety and, adhering to the principle of "prevention first and rapidresponse," have established a systematic mechanism for monitoring, assessing, and addressing productsafety risks. Through our existing quality management system, customer complaint handling procedures,and crisis management guidelines, we have formulated and refined raw material certification standardsand related quality control processes and systems. We have comprehensively strengthened supply chain,production, and transportation management; conducted thorough qualification reviews of suppliers andstrict random inspections of raw materials; and implemented quality, health, and safety risk controlsthroughout the entire product lifecycle to reduce product recall risks at the source. Furthermore, inaccordance with the "OPPEIN Group Management System for Non-conformities and Corrective andPreventive Actions," we have continuously refined our product recall contingency plans, establishedrapid response teams, publicly released situation reports and updates on progress, and promptly reviewedand corrected our actions to minimize financial losses, brand damage, and erosion of consumerconfidence resulting from unforeseen incidents. Moving forward, we will continue to optimize supplierand raw material audits, strengthen digital risk management, and comprehensively enhance productsafety and environmental quality control to manufacture higher-quality products to even higher standards.During the reporting period, we did not experience any product recalls resulting from product quality,health, or safety issues.According to the "China Healthy Home Furnishings Consumer Perception Survey," over 85% ofconsumers prioritize health considerations when purchasing home furnishings. Against the backdrop ofthe national "Health for All" initiative, we adhere to a people-centered philosophy and are committed tocreating healthy, Eco-friendly Commitment, and low-carbon home products. Our whole-homecustomization products and their raw materials are manufactured in accordance with relevant standardssuch as the "Technical Requirements for Environmental Labeling Products," creating an Eco-friendlyCommitment and healthy home environment for consumers.During the reporting period, the Group"s products obtained China Environmental Labeling ProductCertification. The environmental performance indicators of materials used in whole-home custom OPPEIN Home Group Inc.furniture products all meet relevant national standards, with formaldehyde emission levels of panelmaterials complying with the highly stringent European standards (E1 class). OPPEIN Leads the Development of the First Industry Standard for Postpartum Care CentersWe deeply recognize that chemical safety is the cornerstone of product safety. employee well-being andenvironmental protection. We strictly comply with Chinese and international chemical safety laws,including the "Regulations of the People"s Republic of China on the Administration of ControlledChemicals," "Regulations on the Safety Management of Hazardous Chemicals," and relevant hazardouschemical management and catalog standards. We have formulated group-specific chemical managementregulations and testing specifications, and established a full-lifecycle chemical safety managementsystem covering R&D, procurement, production, use and waste disposal. Through institutionalizedmanagement and strict control, we ensure all chemicals meet high safety, health and environmentalstandards, providing customers with safe and reliable home furnishings.During the reporting period, as a key drafting entity, OPPEIN actively participated in developing threenational standards: GB 18580-2025 (formaldehyde emission limits for engineered wood), GB/T 44689-classification of wood-based panels). These standards cover formaldehyde emission, odor evaluation andVOC emission, effectively improving the environmental performance and quality of home products. OPPEIN Home Group Inc.OPPEIN was thus awarded the "National Standard Drafting Unit" certificate by the National TechnicalCommittee for Standardization of Wood-Based Panels. GB 18580-2025, "Limits on Formaldehyde Emissions from Interior Decoration and Renovation Materials—Wood-Based Panels and Products," as a mandatory national standard for formaldehyde emission limits, has for the first time raised the mandatory formaldehyde emission limit for wood-based panel products to E0 grade (≤0.050 mg/m ? ). The introduction of this stringent standard signifies a significant raising of the environmental baseline for home products, eliminating the potential threat to human health posed by excessive formaldehyde emissions at the source and establishing a robust health safeguard for consumers. GB/T 44689-2024, "Classification and Evaluation Methods for Odors in Wood-Based Panels and Their Products," is the first national standard in the wood-based panel industry to establish a scientific and comprehensive odor evaluation system and standardized assessment framework. By doing so, it provides quantifiable criteria for what was previously a vague concept — home odors — and offers clear guidance for improving product odor quality and promoting standardized market development. GB/T 44690-2024 "Classification of Volatile Organic Compound (VOC) Emissions from Wood-Based Panels and Products" classifies VOC emissions into Class I and Class II. By strictly controlling the sources of indoor air pollution at their source, this standard further enhances the comfort and safety of the home environment.? Chemical ManagementWe have established chemical management systems (including "Chemical Management Specifications"and "Regulations on the Management of Hazardous Chemicals") to provide a unified, standardizedframework for the procurement, transportation, storage, use and disposal of hazardous chemicals acrossthe Group. We have strengthened inventory management at chemical use and storage sites, implementingintake/outbound or issuance records based on actual needs. All on-site hazardous chemicals are labeledwith Chinese labels and MSDS, and we have compiled "Chemical Safety Data Sheets (SDS)". Personnel OPPEIN Home Group Inc.in hazardous chemical operation areas must wear required PPE; worksite toxic/harmful gasconcentrations are regularly monitored, and relevant employees receive pre-employment, on-the-job andpost-employment occupational health examinations to ensure their safety. Chemical Safety Management Standards and Acceptance Criteria Content Specific Requirements Acceptance Method Maintain records of regulatory Regulatory requirements and a chemical inventory, Review the chemical inventory records and the Records including information on usage, storage, standard requirements for chemical management. and designated responsible persons. Post necessary safety risk notices, Conduct on-site inspections to verify that visual Visual MSDSs, and relevant warning signage in chemical storage and usage areas, as well Management information at chemical storage and as basic information such as MSDS, is complete and usage sites. accurate. Develop specialized safety inspection Review the status of factory inspections and conduct Special checklists and conduct specialized at least one specialized safety inspection prior to Inspections safety inspections at regular intervals. acceptance. Check that plant training is carried out and that at Develop specialized safety training least 1 special safety training is carried out before Specialized materials and conduct specialized safety acceptance; Training training at regular intervals. Ask authorized employees about their training and knowledge of chemical safety risks On-site storage should have explosion- Inspect chemical safety settings in the storage area proof cabinets, eyewash, electrostatic and assess explosion-proof cabinet specification On-site apparatus, fire sand, leak-proof trays. settings; Management Also, manage personnel PPE equipment Manage on-site chemical use, including dispensing and dispensing containers as required. containers and employee PPE wear.During the reporting period, the Group conducted chemical safety training for on-site staff at hazardouschemical facilities and mandated that personnel must pass an assessment before being allowed to work.This ensures that on-site workers fully understand the hazardous properties of chemicals and arethoroughly familiar with the specific procedures and requirements for emergency response. OPPEIN Home Group Inc.? Chemical ProcurementWe strictly manage chemical risks from the source of the supply chain, establish a green procurementpolicy, and require all chemical suppliers to provide valid business or production licenses, while theirtransportation providers must possess the appropriate qualifications. Prior to procuring any newchemicals, the Supply Chain Department must request complete and compliant Chinese-languageMSDSs and safety labels from suppliers and submit them to the Group"s EHS Management Departmentfor safety review. The review covers the standardization of MSDS preparation, occupational healthrequirements, toxicity, flammability and explosiveness, and environmental compliance.In supply chain management, we use the "Supplier ESG Evaluation and Onboarding Survey"questionnaire to include "whether environmentally friendly materials are used" and "whether harmfulsubstances (such as formaldehyde and heavy metals) are restricted or banned" as key evaluationindicators of a supplier"s environmental performance, thereby guiding and encouraging upstreamsuppliers to transition toward more sustainable solutions.? Prohibition of ChemicalsWe are committed to reducing or phasing out hazardous chemicals in our products and productionprocesses, and we prohibit the use of explicitly banned chemicals and obsolete chemical productionprocesses. We strictly adhere to and proactively exceed national and international standards. Ourtechnical standards for raw material procurement explicitly restrict or prohibit the use of harmfulsubstances such as heavy metals (lead, cadmium, mercury, hexavalent chromium), phthalates, specifichalogenated organic compounds, and azo dyes that can release carcinogenic aromatic amines. We strictlyrequire suppliers to provide a list of product ingredients and a self-declaration regarding the presence ofhazardous substances, and to submit, on time, hazardous substance test reports for each product (such asreports issued by authoritative third-party national testing institutions like SGS, CTT, and ITTC),Material Safety Data Sheets (MSDS), product ingredient lists, and environmental management changeconfirmation letters; we conduct unscheduled spot checks on chemical indicators such as formaldehyde,TVOC, and toluene through both internal laboratories and external third-party institutions; we utilizeinformation technology to monitor compliance throughout the entire process—including chemical andsupplier onboarding, formulations, and usage—to ensure that every product meets the requirements of OPPEIN Home Group Inc.the environmental quality management system and local laws and regulations regarding the prohibitionand restriction of chemicals.During the reporting period, we did not experience any major incidents or fines related to chemicals, nordid we use any prohibited chemicals. Supply Chain Raw Material Procurement — Limits on Toxic and Hazardous Substances in Particleboard? Disclosure of Chemical InformationWe proactively disclose our products" environmental ratings, certification information (such as ENFcertification), and core environmental features (such as formaldehyde-free and formaldehyde-reducingantibacterial properties) through product labels, our official website, and promotional materials. We alsoinclude a table of limits for hazardous substances in our product manuals, clearly showing consumersthe limits for hazardous substances in the decorative engineered wood panels, coatings, stone materials,adhesives, and other raw and auxiliary materials used in our home furnishings. OPPEIN Home Group Inc. OPPEIN Kitchen Cabinets Raw Material Limits for Hazardous SubstancesWe regard process safety as an inherent attribute of product design and a mandatory requirement forproduction execution. Through systematic process design, standardized operating procedures, intelligentprocess control, and a safety culture that involves every employee, we ensure that the production processitself is safe, stable, and controllable. This eliminates product safety hazards caused by process defects OPPEIN Home Group Inc.or operational errors at the source, ultimately delivering exquisitely crafted, safe, and reliable homeproducts to our customers.Guided by ergonomic principles, we prioritize convenience, user-friendliness, and safety in productdesign. We are committed to creating safe, comfortable, and warm home environments for our customers,infusing care into every design and striving for perfection in craftsmanship to achieve the highest quality.Our products are manufactured using world-class advanced equipment, featuring excellentenvironmental performance and durability. Our hinges and slides are of consistent quality and built tolast, ensuring decades of worry-free use. Case: OPPEIN Doors & Windows Provides "Product Peace of Mind Insurance" for Its Entire Product Line OPPEIN Doors & Windows has established a deep strategic partnership with China Ping An, a Fortune Insurance." This ensures that every door and window order comes with peace of mind, truly fulfilling our value commitment: "Quality doors and windows with assurance—choose with confidence, live with peace of mind." OPPEIN Home Group Inc.Case: Elderly-Friendly DesignBased on in-depth "lifestyle research," we deeply integrate the "invisible care" and "proactiveadaptation" design philosophies into systematic age-friendly space planning and productdevelopment. Our designs not only meet the elderly’s current physical needs but also anticipatepotential physical function changes with age. Through modular, adjustable smart products and user-friendly details, we seamlessly integrate age-friendly features into the overall home aesthetic, avoidingthe obtrusive "nursing home" feel and enabling seniors to enjoy their golden years in a familiar,respectful environment.Water dispenser + medication storage area for A double bed design minimizes the impact ofeasy access to medication in emergencies. turning over or getting up at night on a partner"s sleep.Handrails are integrated into the home"s overall Sliding door design reduces the risk of tripping.design, such as on cabinetry and bedside cabinets.Automatic motion-sensing night light for Emergency call button at the bedside.nighttime bathroom visits. OPPEIN Home Group Inc.We are committed to breaking physical, economic and cognitive barriers in home furnishing consumption.Through systematic strategic planning and innovative practices, we comprehensively enhance theaccessibility of our products and services. We ensure the accessibility of whole-home customizationproducts by means of product diversification, affordable pricing, localized service and efficientproduction. This enables consumers—regardless of location, budget or specific needs—to access "tailor-made" home solutions and comprehensive, attentive service at a reasonable cost, further removing spatial,financial and resource constraints on custom home furnishings.We increase long-term brand investment to continuously share our brand story and convey our "LoveHome" culture. Leveraging diversified social media platforms, we forge close emotional bonds withconsumers, strengthen brand recognition, and make OPPEIN"s whole-home philosophy widelyrecognized by the public. We elevate brand visibility and influence via advertising campaigns, KOLcooperation and IP partnerships, while presenting real customer cases to build consumer trust. We alsotake the lead in setting industry benchmarks for safety, environmental protection and health, and provideauthoritative panel test reports to further boost consumer confidence. During the reporting period, wecompleted strategic transformation from a full-category home furnishings manufacturer to a full-sceneecosystem service provider. The new brand IP "Love Home Season" was launched to further deepen ourforward-looking "scenario + product" strategy. During the reporting period, we introduced a new IP character: "OPPEIN"s Chief Space Mood Officer—the little werewolf ‘PAI PAI"." OPPEIN Home Group Inc. During the reporting period, the Group was honored as the "Initiating Unit of the Xinhua News Agency China Top Brand TOP Home Furnishing Empowerment Program" at the 2024 Home Furnishing Industry High-Quality Development Conference. Case: OPPEIN Wins the 2025 "China Consumer Brand of the Year" Title OPPEIN has been named a "2025 China Consumer Brand" by the MIIT, affirming its national brand influence, innovation strength and core brand values. As a custom home furnishing leader, we uphold the mission of creating better home life, winning wide household trust with high-quality integrated solutions. The accolade further consolidates our industry leadership. We keep strengthening brand credibility via smart, Eco-friendly Commitment and user-oriented products, advancing home consumption upgrading and high-quality industrial development. OPPEIN Home Group Inc.We consistently uphold our brand mission of "creating a better, more comfortable, and high-quality dailylife for the public," treating product diversity as the core fulcrum connecting user needs with social value.In our design, we not only cover mainstream aesthetic styles but also delve deeply into personalizedscenario needs, offering customized solutions ranging from child safety design and age-friendly care tosmart applications, ensuring that every piece of furniture precisely adapts to the different life stages andlifestyles of various families. To address the diverse changes in living spaces, we have introducedinnovative solutions such as LDKB"s open-concept integrated design, "micro-adjustable structure" zones,and growth-oriented children"s rooms. Through removable modules and scalable designs, we ensure thatfurniture functions "grow" in tandem with family needs, effectively bridging the lifestyle gap betweenyounger generations and the elderly, and transforming commercial activities into inclusive socialresponsibility initiatives.Consumers are shifting from the pursuit of material abundance to a focus on spiritual resonance, andfrom selecting standardized products to building personalized living scenarios. We have taken the leadin adopting the "scenario + product" approach as a breakthrough strategy, implementing forward-lookinginitiatives to establish a new "Chinese Family Happiness Index" evaluation system and redefine the valueframework for modern families. During the reporting period, we innovatively launched the "Life Pi"integrated home furnishings collection. Centered around four thematic scenarios—including "Pet-Friendly Joy" and "Trendy Fun"—we provided personalized, highly integrated spatial solutions tailoredto diverse user profiles, such as singles, tech enthusiasts, and families with multiple children. OPPEIN Love Home Season "Pioneering a New Paradigm for Better Living" Launch Ceremony OPPEIN Home Group Inc.Through flexible product portfolios and channel strategies, we ensure that high-quality home solutionsare widely accessible at affordable prices. Our portfolio includes brands such as miform (high-end),OPPEIN (mid-to-high-end), OPLONI (mass-market), OPPOLIA (affordable luxury), and BAUNIS(whole-home customization), offering a clear and transparent pricing system to meet consumers" diversebudgetary needs. In our product planning, we clearly distinguish between different price tiers to ensurecomprehensive coverage ranging from budget-friendly options to high-end luxury. At the same time, weactively promote various affordable housing initiatives and have launched multiple green and inclusiveupgrades. By improving quality and efficiency internally, we continuously introduce "high-quality yetaffordable" product policies, offering significant savings to consumers and enabling more Chinesefamilies to enjoy a higher quality of life.We are committed to building deeply integrated online and offline channels for product experiences andservices, making it more convenient for consumers to access high-quality home living. Online, we lowerthe barrier to customer engagement through our official website, e-commerce platforms, and social media,providing convenient access to information and consultation. Offline, we have established a globalnetwork of over 7,300 physical stores, creating immersive lifestyle experience spaces where customerscan personally experience the quality of materials, craftsmanship, and service. Building on thisfoundation, we provide end-to-end services ranging from in-home measurements, design, and installationto after-sales maintenance, extending product delivery into systematic lifestyle solutions. During thereporting period, we continued to deepen the integrated development path of "manufacturing + modernservices," driving the company"s strategic transformation from a traditional "product manufacturer" to an"ecosystem service provider." By integrating and extending the industrial chain and enhancing the valuechain, we systematically built an integrated home ecosystem covering the entire process from design tomanufacturing and service. During the reporting period, we launched the "OPPEIN Smart Home Cloud"AI large model, capable of generating personalized customization solutions in seconds. The AI-generatedmatch actual materials and dimensions—truly realizing "what you see is what you get"—and enhancing OPPEIN Home Group Inc.the accessibility of our products and services through technological innovation.With smart manufacturing at the core, we continuously improve supply chain and delivery efficiency toensure that custom home furnishings reach every consumer faster. Leveraging the "All-Category SmartFactory Cluster" built around five AI-powered production bases, the Group can efficiently producethe deep integration of manufacturing platforms across 10 major living spaces and 10 product categories,we have fully interconnected design and production data, compressing the custom delivery cycle towithin 7 days.In terms of logistics, we have pioneered an innovative "whole-home" logistics model. By establishing asupply network with a 500-kilometer service radius, we can cover over 90% of cities nationwide withinof regional markets. Our industry-first "centralized warehousing and distribution" model features 56central warehouses strategically located around our five major production bases, covering 26 provinces,autonomous regions, and municipalities. Combined with our proprietary TIMS management system, thisenables end-to-end intelligent control from warehousing to delivery, ensuring professional and customer-centric service for the "last mile" of custom delivery.To address the challenges of high delivery costs and limited coverage in rural and remote areas, we haveimplemented specialized measures. For example, in our Guizhou project, by optimizing transportationroutes and integrating local delivery resources, we effectively resolved the long-distance transportationchallenges caused by insufficient logistics network coverage. This ensures that customers in remote areasalso enjoy convenient and efficient product delivery services, fulfilling our deep commitment to productaccessibility through inclusive service.We are continuously refining our after-sales service system by establishing standardized end-to-endservice processes and a rapid response mechanism for consumer feedback. We have clearly definedresponsibilities and timelines for each stage to ensure that all customer complaints are addressedpromptly and resolved satisfactorily. Additionally, we have launched the OPPEIN Golden Butler Service OPPEIN Home Group Inc.to enhance the value of products throughout their entire lifecycle. Through the "Service Summit Plan,"we are driving a comprehensive upgrade of our services and building a three-tier service ecosystemcomprising "Group Headquarters – Production Bases – Dealers." By leveraging design training, after-sales support, and cost optimization systems, we systematically empower dealers to enhance theirlocalized service capabilities, ensuring that service standards are consistently and efficientlyimplemented nationwide.We actively participate in regional premium product exhibition platforms, leveraging their advantages toexpand channels such as centralized corporate procurement and cross-border exports. At the same time,we continue to participate in or lead the formulation of industry environmental and product standards,promoting corporate standards to become industry standards. This not only fosters supply chaincollaboration but also enhances the accessibility and reliability of products across the entire industrythrough high-standard leadership. Furthermore, we actively align with national policy prioritiesregarding expanding domestic demand, rural revitalization, inclusive elderly care, and support forvulnerable groups. We vigorously promote the "100 Cities, 10,000 Stores" initiative to expand into lower-tier markets and increase R&D investment in "age-friendly" and "child-friendly" designs, ensuring ourproducts and services benefit a broader range of social groups.The Group continuously innovates across five key areas—technology, products, business models,management, and services—adhering to the principle of "technology for good" and infusing smarttechnologies with humanistic care. We focus our investments on production process innovation, R&Dfor energy conservation and carbon reduction, digital manufacturing, and smart manufacturing, whilestrengthening our independent R&D capabilities and employees" innovative potential. Our aim is toestablish a technological edge, commercialize R&D achievements, and maintain our leading position inthe home furnishings manufacturing industry. As of the end of the reporting period, we operate a CNAS-accredited laboratory and have been recognized as a National Industrial Design Center, recipient of theGuangdong Provincial Government Quality Award, a Guangzhou High-Level Enterprise Research OPPEIN Home Group Inc.Institute, a Postdoctoral Research Station, and a High-Tech Enterprise. These accolades ensure that ourprofessional expertise safeguards product quality. National Industrial Design Center High-Tech Enterprise Certificate OPPEIN CNAS LaboratoryThe Group places high importance on R&D, adhering to the principle of driving development throughinnovation. We continuously engage in independent R&D and introduce new products, promotingtechnological and industrial transformation and upgrading in the custom home furnishings industry whileaccelerating the development of new productive forces. We remain committed to innovation-drivengrowth, refining our market-oriented product R&D management model and strengthening ourfoundational R&D platforms. With a primary focus on advanced manufacturing, we are enhancing ourtechnological R&D and reserves to create new products that lead industry trends and shape its futuredirection, thereby fostering new growth momentum. Looking ahead, OPPEIN will continue to increase OPPEIN Home Group Inc.investment in innovation to consolidate its leading position in the custom home furnishings sector. Five Major Future R&D Initiatives ? Guided by the "whole-home" principle, we will shift toward innovative R&D models for integrated whole- home spatial solutions to continuously enhance product competitiveness ? By integrating the stability of classic products with the rapid iteration capabilities of trendy products, we will enhance market adaptability while meeting consumers" pursuit of personalization and diversity ? We will Strengthen the management and application of product data to improve the efficiency of targeted development ? We will implement cross-space color management for the "whole-home" concept, enabling joint and synchronized R&D of materials in the same color across product categories to enhance the overall coherence of whole-home products ? By integrating the sales system with the product management system, we will bring backend product management functions to the frontend, thereby enhancing both the frontend user experience and the efficiency of backend data managementWe have established a strategy-guided R&D management system with clear processes and efficientcollaboration to ensure targeted and effective innovation. To adapt to the shift from single-product R&Dto integrated home solutions, the Group has restructured and upgraded its Integrated ProductDevelopment (IPD) process, establishing a standardized system for R&D project initiation, tracking andclosure. Each year, we systematically plan multi-field R&D projects (manufacturing processes, R&D,IT, equipment), clearly defining investment in budget, personnel, materials and equipment, andrigorously recording research outcome commercialization.Our R&D team totals 1,867 professionals, accounting for 10.44% of all employees, including 44 master’sand 1,031 bachelor’s degree holders. To drive innovation, we adopt a market-oriented R&D model androll out systematic incentive policies covering piece-rate compensation, design team rewards and designaward regulations. We have also updated incentives for R&D and design staff, set up innovation projectawards, and refined incentive standards for different product lines. Combining material and non-materialrewards, the talent incentive system fully stimulates employees’ innovative potential.During the reporting period, the Group completed the transition of its IPD process framework from OPPEIN Home Group Inc.version 1.0 to 2.0, established a professional management team, and established a tiered systemcomprising "1+6+30+1 set of regulations and 7 processes." Furthermore, by formulating the "NewProduct Planning Review Management Specifications," "Scheme Design Management Regulations," and"New Product Scheme Design Review Management Specifications," as well as revising multiplemanagement regulations, the Group embedded a structured review mechanism throughout the entireR&D process. This significantly reduced development risks and enhanced R&D responsiveness andcross-departmental collaboration efficiency. Total R&D Team Size people 1,867 Percentage of R&D personnel relative to total company headcount % 10.44 Doctorate and above People 0 Master"s People 44 By educational level Bachelor"s People 1,031 Bachelor"s degree or below People 792 Male People 1,320 By gender Female People 547 Under 30 (excluding 30) People 363 By age 30–50 years old (including 30, excluding 50) People 1,477We place great emphasis on building our R&D team and cultivating high-caliber talent. We haveestablished a home furnishings R&D center at the Group level, as well as product planning and R&Ddepartments within each business division. Additionally, we have set up an R&D and design center inMilan, Italy. We actively promote external exchanges and industry-academia-research collaboration,engage in in-depth university-enterprise partnerships and talent exchanges with specialized institutions,and drive technological innovation and scientific advancement in the home furnishings industry.Driven by market demand, we upgrade products from single-function offerings to integrated, smart andhealth-oriented solutions. Adopting agile development, we iterate rapidly and adjust flexibly to alignwith market needs, optimize production and elevate user experience. Centering on user demands, we OPPEIN Home Group Inc.shorten the lengthy cycles of traditional home furnishing design and production, realizing efficientdelivery via modularization, digitalization and collaborative workflows. To tackle industry pain pointsand meet consumption upgrading needs, we launch targeted R&D projects: in materials, we developlong-lasting antibacterial & mildew-proof and high-durability stain-resistant countertop technologies; instructural design, we research concealed connection and lightweight ultra-thin drawer technologies forkitchen and bathroom cabinetry; in smart technology, we explore AI-powered personalized design &smart manufacturing software and smart display-integrated control knobs.During the reporting period, the Group"s R&D investment totaled 909 million yuan, accounting for 5.27%of operating revenue; cumulative R&D investment over the past five years reached 5.089 billion yuan,placing us at the forefront of the industry; we launched 84 new R&D projects and successfully brought Case: AI Visual Color Difference Detection Platform To address the industry-wide challenges of low consistency and efficiency in manual visual inspection, we independently developed and launched an AI-powered visual color difference detection platform. Based on the international CIE2000 color difference algorithm, this platform enables objective, digital inspection of non-solid colors and complex textured patterns. The platform has collected data on over 600 fabric patterns and materials, and based on this, we developed a cloud- based document duplication check function. This has increased the efficiency of new product duplication checks by over 50%, fundamentally reducing internal and external color discrepancies caused by inconsistent standards.We have long prioritized the protection of proprietary intellectual property, including patents and originaldesigns. We have formulated the "Intellectual Property Management Regulations" and established aGroup-wide intellectual property management system. This system provides end-to-end management ofthe identification, maintenance, utilization, and protection of intellectual property rights—such as patentsand software copyrights—to strengthen risk control, prevent the loss of the Group"s intangible assets, andsimultaneously incentivize employees" innovation while enhancing the Group"s core competitiveness.We generally follow the management framework of "rights confirmation—rights maintenance—rightsprotection—rights utilization" to implement strict, unified management of intellectual property OPPEIN Home Group Inc.ownership, confidentiality, data, and infringement risks. We have also established rigorous businessprocesses for the application, maintenance, protection, and utilization of patents, trademarks, andcopyrights. Furthermore, to encourage the research and creative capabilities of Group employees andincentivize the formalization and protection of intangible technologies resulting from inventions andinnovations, we have established patent incentive principles and standards. We reward patent inventorsbased on factors such as the status of patent protection, technological stability, potential value, andimplementation benefits.During the reporting period, the Group filed a total of 51 patent applications, including 11 inventionpatents, 20 utility model patents, and 20 design patents. As of the end of the reporting period, the Groupand its controlled subsidiaries had accumulated 858 patents, comprising 81 valid invention patents, 442utility model patents, and 331 design patents; they also held a cumulative total of 138 computer softwarecopyrights.We view digitalization and smart manufacturing as the core engines driving industrial upgrading andbuilding core competitiveness. Starting with the "OPPEIN Manufacturing 2025" strategy, we havesystematically integrated new-generation information technologies—such as the internet, big data, andartificial intelligence—with manufacturing technologies to establish a digital management and intelligentproduction system covering the entire value chain from "design to production, logistics, and service."Thisnot only enables efficient collaboration for large-scale personalized customization but also leads thehome furnishing manufacturing industry in a paradigm shift from "experience-driven" to "data-driven,"delivering an exceptional experience to customers characterized by "what you see is what you get, whatyou feel is what you want, design is manufacturing, and manufacturing is service."Through independent R&D and integrated innovation, we have broken down data silos across the entirebusiness chain—from the marketing front end to the production back end—achieving end-to-end digitalcollaboration and transparent management. We have built a deeply integrated software ecosystemcentered on the design-end "Smart Home Cloud," marketing and order management "MTDS/MSCS,"manufacturing execution and planning "XMES/MPCS," intelligent logistics "TIMS," and a data middle OPPEIN Home Group Inc.platform. This ecosystem enables the seamless flow and unified coordination of data regarding customerneeds, design solutions, production instructions, material information, and logistics status, forming acomplete digital closed-loop.Relying on the Group’s unified digital platform, the AI production scheduling system dynamicallyoptimizes task allocation by factoring in order urgency, process complexity, equipment capacity, rawmaterial inventory and regional logistics costs. For instance, whole-home customization orders areautomatically split into kitchen cabinets, wardrobes, wooden doors and other categories, thenintelligently assigned to optimal production bases for parallel manufacturing. When a base reaches fullcapacity, orders are automatically diverted to keep overall delivery cycles stable and efficient. Digital & Intelligent OPPEIN Case: Full Implementation of the OPLink Smart Collaborative Office System In April 2025, OPPEIN partnered with Feishu to develop and fully launch its proprietary smart collaborative office system, OPLink. Through resource integration, data-driven decision-making, and the application of AI technology, the system has achieved a significant leap in organizational collaboration efficiency, injecting strong momentum into the company"s digital transformation and setting a new benchmark for digital upgrading in the industry.We focus on smart manufacturing to address industry production and logistics pain points. By deeplyintegrating automated equipment, IoT and AI into production, we have built leading flexible intelligentmanufacturing capabilities to drive sustainable development. We have launched lights-out productionzones in home furnishing workshops, enabling unattended automated continuous operation at night. OPPEIN Home Group Inc.Equipped with laser-guided AGVs, intelligent warehouses and RGVs, we have established an unmannedlogistics system, realizing fully automated, precise material distribution from warehouse to workstation.This greatly cuts manual handling and idle time. Intelligent Decision-Making By building a central digital command center, we enable full operational transparency across five major domestic bases. It displays real-time core indicators including order completion rate, equipment utilization and quality pass rate, with drill-down analysis into End-to-End specific production processes. Embedded with an intelligent early warning mechanism, the Visibility system delivers round-the-clock monitoring and proactive alerts for equipment faults and inventory risks. Managers can locate root causes within 10 minutes, cutting unplanned downtime and delivery delays, shifting management from passive response to proactive prevention. To tackle scheduling complexities from large-scale personalized customization, the Group developed an in-house AI intelligent scheduling system. It incorporates multi-dimensional constraints including order urgency, process complexity, cross-site equipment load, material inventory and logistics costs, adopting operational research algorithms to generate AI-Assisted globally optimal production plans. Amid urgent order insertions, the system dynamically Decision-Making applies flexible scheduling such as off-peak equipment arrangement and parallel processing. It guarantees timely delivery of priority orders while sustaining overall production efficiency, striking an effective balance between customized demands and mass production. Redefining workshop role allocation under human-machine collaboration, frontline staff shift from repetitive operation to monitoring and decision-making. They remotely view Redefining operational parameters via terminals and make real-time fine adjustments to keep Human-Machine equipment operating optimally. Employees also take on cross-process quality feedback Roles duties, directly feeding production issues such as design and process deviations to the R&D team through digital systems. This forms a closed-loop improvement mechanism linking production and design, fundamentally lifting product quality and overall spatial solution compatibility. OPPEIN Home Group Inc. Case: OPPEIN AI Smart Factory We remain committed to continuously advancing our smart manufacturing capabilities to establish benchmark factories that deliver high quality, low costs, and flexibility. Across our five smart manufacturing bases in Qingyuan, Wuxi, Chengdu, Tianjin, and Wuhan, we extensively deploy world- class high-end equipment. Building on this foundation, we achieve deep integration through flexible production systems and leverage diverse technologies—including robotics, AI, and computer vision— to drive automation across the full range of home furnishing products, realizing automated assembly lines where "machines direct machines."From intelligent material cutting, flexible edge banding, and intelligent drilling to automated sorting and packaging, key processes have achieved a high degree of automation, ensuring precision and efficiency in the production of non-standard customized products.By integrating AI technology, we have comprehensively upgraded our digital operations and intelligentprocesses to provide customers with customized home solutions that embody "what you see is what youget, what you feel is what you want, design is manufacturing, and manufacturing is service."The Grouphas fully embraced artificial intelligence, exploring its application across design, production, andcustomer service. On the design side, we utilize AI to generate diverse design drawings, provideintelligent recommendations, and optimize structures; on the production side, we deepen the applicationof technologies such as AI visual inspection; and on the customer side, we have developed intelligent AI OPPEIN Home Group Inc.systems to address high-frequency inquiries and plan to introduce AI-powered follow-ups, therebyprofoundly reshaping the front-end experience of product R&D and customer service.During the reporting period, the "Smart Home Cloud 2.0" system was fully rolled out, with data qualitysteadily improving; the Group"s core design software was comprehensively upgraded to the "Smart HomeCloud" integrated home design platform. Case: AI-Empowered Design, Reshaping the Home Furnishing Experience OPPEIN’s "Smart Home Cloud AI Large Model" design assistant reshapes home design paradigms. It generates multi-style renderings instantly, supports personalized customization, and delivers a real- time visual experience. Seamlessly linking design data with manufacturing, it forms an AI closed loop of design-manufacturing-service. The innovation boosts user engagement and satisfaction, offering a benchmark model for industrial intelligent upgrading. Case: AI Customer Service and Smart Delivery We have deeply explored the innovative application of AI and IoT technologies in customer service and delivery operations. During the reporting period, the Group launched an AI customer service tool to provide dealers with 24/7 intelligent support, covering high-frequency scenarios such as order status inquiries and policy consultations. The system handles over 100 inquiries daily with a first-response success rate of 93%, effectively improving backend response efficiency and dealer satisfaction. Simultaneously, we utilize IoT technology to implement intelligent monitoring of in-transit goods, enabling real-time, visual tracking of logistics status. This allows for early warnings and rapid responses to anomalies, further enhancing the transparency and reliability of the delivery process. By leveraging technology to empower the entire service chain, we are progressively building a more efficient and intelligent customer delivery experience. OPPEIN Home Group Inc.We place a high priority on technology ethics management. Current technology ethics issues primarilyconcern user information, lifestyle habits, and preferences collected in the fields of AI customer serviceand intelligent IoT whole-home smart terminals. We strictly comply with laws and regulations such asthe "Interim Measures for the Administration of Generative Artificial Intelligence Services" and the"Measures for the Review of Scientific and Technological Ethics (Trial)," and in accordance with therequirements of the "Cybersecurity Law of the People"s Republic of China," the "Data Security Law ofthe People"s Republic of China," and the "Personal Information Protection Law of the People"s Republicof China," we have established a comprehensive information security management system architecture.Concurrently, we have built an adaptive, closed-loop security protection system to comprehensivelysafeguard the security of our network infrastructure and data assets.We adhere to the "principle of minimal necessity," clearly defining users" right to know and authorizationmechanisms to prevent excessive commercialization of data or its use for purposes beyond those agreedupon. We also encrypt sensitive data related to home environments. We standardize transparencyrequirements for AI algorithms and prohibit the generation of false, misleading, or discriminatory content.Furthermore, to prevent excessive reliance on smart devices that could undermine users" control overtheir home environments, we have designed a "human-centered" interface that preserves manual controlfunctions. We have also embedded the principle of "explainability" into our technical design to help usersunderstand the system"s operational logic.Our Group consistently places customer rights at the core of our corporate development, committed tobuilding a customer-centric, transparent, secure, and trustworthy service ecosystem. We strictly complywith relevant laws and regulations, including the Civil Code of the People"s Republic of China, theProduct Quality Law of the People"s Republic of China, and the Consumer Rights Protection Law of thePeople"s Republic of China. Through a systematic management framework, efficient feedback handling,proactive measures to enhance satisfaction, and robust information security defenses, wecomprehensively protect customers" legitimate rights and interests, provide high-quality services toconsumers, and enhance the Group"s brand reputation and customer service satisfaction. OPPEIN Home Group Inc.We have established a multi-dimensional, standardized customer management system that spans theGroup headquarters, business divisions, production bases, and end-user dealers. This system aims totransform the "customer-centric" philosophy into executable, measurable, and optimizable operationalpractices through systematic rules, processes, and tools. This framework not only safeguards customerrights but also serves as the core engine driving brand reputation and business growth.We have established a set of management regulations centered on the "Customer Complaint and After-Sales Service Management Regulations," the "Customer Satisfaction Survey Management Regulations,"and the "Quality Complaint Handling and Improvement Implementation Standards." These regulationsclearly define the division of responsibilities among multi-tiered entities—including the Group CustomerService Center, the internal marketing departments of each business division, and dealers—and detail acomprehensive set of operational standards ranging from service commitments and channel disclosuresto work order processing procedures and time-limit standards. Consequently, the Group has establisheda closed-loop management system featuring clear delineation of authority and responsibility, as well ascross-departmental collaboration, following the process of "Receipt – Dispatch – Resolution – Follow-up – Rectification – Evaluation." This ensures that customer requests are handled in accordance withestablished procedures and that accountability is maintained at every stage.The management system leverages robust digital tools to achieve visualized service processes and precisecontrol. With the "OPPEIN Home Group" mini-program and the intelligent omnichannel customerservice work order system as core platforms, we have integrated front-end customer touchpoints withback-end business systems. The work order system enables centralized reception, intelligentcategorization, automatic assignment, and end-to-end status tracking of customer requests, withautomatic timing and alert functions at key stages. Simultaneously, we have actively integrated AItechnology, launching "AI Customer Service" to provide 24/7 intelligent responses. We have also builtan "AI Q&A Platform for Home Furnishing Materials, Craftsmanship, and Products," leveragingknowledge bases and AI to empower frontline service staff, significantly enhancing service response OPPEIN Home Group Inc.efficiency and the professionalism of problem-solving.To ensure the effective implementation and continuous optimization of management systems, we haveestablished a rigorous quantitative evaluation and supervision mechanism. Key metrics—includingservice timeliness, resolution satisfaction rates, and timely work order response rates—are assessed on areal-time and quarterly basis. Evaluation results are directly linked to the performance of relevantdepartments and dealers, creating a "reward and punishment" incentive mechanism. The Group hasstrengthened its oversight of dealer service quality. Through measures such as data disclosure,disciplinary actions for violations, and rewards for excellence, we drive continuous improvement inservice awareness and standards at the point of sale. Additionally, the Group has established a monthlycustomer complaint data analysis and reporting system. By identifying service weaknesses through datainsights, we issue rectification notices to responsible departments, driving root-cause improvements fromdesign and production through to service delivery, thereby achieving self-optimization of themanagement system.The value of the customer management system has transcended the level of basic support and risen tothe strategic level of the Group. We have incorporated the development of our service system into our"TOP 3 Strategic Priorities" and are driving this initiative from the top down by adhering to the principlesof prioritizing resources, performance evaluations, and innovation. Through a dual-engine approach of"mechanism-driven" and "digitally-supported" initiatives, we have not only successfully established avirtuous cycle of "product strength—service strength—reputation strength," but have also, throughsystematic service transformation practices, provided a replicable "OPPEIN Model" to address theindustry-wide challenges of "high complaint rates and low satisfaction levels" in the home furnishingsector. Differentiation in service quality is becoming a solid competitive barrier for the Group in the eraof integrated home solutions.Guided by the philosophy of "customer first, dedicated service," we have actively reformed our after-sales service system, standardized the Group"s service complaint and crisis management processes, and OPPEIN Home Group Inc.established a diversified, rapid-response, and professional closed-loop feedback handling mechanism.We have implemented a four-step process for handling customer complaints (after-sales service +complaints): "Stage I: Intake—Stage II: Resolution—Stage III: Follow-up—Stage IV: Rectification." Byensuring unobstructed channels for customer feedback, we are committed to transforming everycustomer interaction into an opportunity to build trust. During the reporting period, the Group"s complaintresolution satisfaction rate increased by 2% year-over-year.The Group has launched a variety of convenient channels, including a 400 hotline, official website,WeChat service account, and email, to ensure unobstructed customer feedback channels. The customerservice center operates 24/7 and commits to a 30-minute response time within urban areas foremergencies such as water ingress into delivery vehicles or spontaneous glass breakage. During theSpring Festival, the Group launched the "Spring Festival Worry-Free" special service to ensure thatcustomer concerns receive timely attention.To move beyond traditional response models, we have implemented a "consultative service" philosophy.Customer service representatives leverage core competencies—such as emotional empathy, guidedlistening, and in-depth needs assessment—to become experts in resolving customer issues. Throughoutthe process, we prioritize timely updates on coordination progress and provide customized solutions,while strictly adhering to tiered response standards like "1-24-48" to ensure issues are resolved efficientlyand professionally.The Group has established a comprehensive after-sales service database that fully documents reportedissues and their resolution processes. Through monthly data analysis, we precisely identify serviceweaknesses and recurring issues, and issue rectification notices to the responsible departmentsaccordingly. This drives root-cause improvements spanning design, manufacturing processes, andservice delivery, creating a virtuous cycle of "resolution-analysis-improvement." OPPEIN Home Group Inc. Rapid Response System for Consumer Feedback Customer Feedback Channels ① Group 400 Hotline: 400-884-1868 ② Group Website: www.OPPEIN.com ③ Email: op@OPPEIN.com ④ WeChat Official Account: OPPEIN Customer Service; WeChat Mini Program: OPPEIN Group ⑤ Mailing Address: OPPEIN Group Customer Service Center, No. 366 Guanghua 3rd Road, Jianggao Town, Baiyun District, Guangzhou, Postal Code: 510450 ⑥ Retail stores must inform customers of the Group"s service channels, including but not limited to the following methods: purchase contracts, store signage, and in-store service boardsCentered on the four key principles of "Proactive Service, Proactive Care, Professional Empowerment,and Experience Optimization," we have built a comprehensive customer service ecosystem covering theentire lifecycle—from pre-sales to in-sales and after-sales—to continuously strengthen customer trustand brand loyalty. We have deepened our proactive service initiatives by conducting centralized follow-ups with long-term customers whose installations are over 10 years old. We also regularly organize OPPEIN Home Group Inc.activities such as "Community Zero-Distance Service Days" to proactively provide free professionaltechnical maintenance services—including door panel adjustments and drain line cleaning—to thesecustomers. By extending our service scope from the home to the community and gathering potentialneeds through face-to-face communication, we continue to strengthen customer relationships.We have continuously strengthened professional skills training for our after-sales and customer serviceteams, systematically improving communication skills and professional competence. During thereporting period, we conducted a total of 27 specialized training sessions on customer response, with atotal duration of 60 hours and reaching 675 participants, ensuring that every service staff memberpossesses the ability to respond quickly and resolve issues accurately. The Group"s consumer evaluationtrends are positive, with a basic service satisfaction score of 8.59 and a product quality reputation scoreof 8.79. Five Major Initiatives to Strengthen Service Quality Control ? Digital Service Mechanism: Consumers can track work order progress in real time via mini-programs, establishing a fully closed-loop management system of "complaint-response-resolution-follow-up"; ? Headquarters Rapid Response Mechanism: For disputes involving dealers, OPPEIN Headquarters provides rapid subsidies through the "Brand Fund," achieving a "5-day resolution for small-scale disputes" and converting customer satisfaction into brand loyalty; ? "Golden Butler" Service Upgrade: In 2024, OPPEIN launched an upgraded "Golden Butler" service and made eight commitments: light home inspection by the butler; 24-hour rendering delivery; six "1" installation standards; Golden Butler final inspection; "Golden Nanny" maintenance; blueprint archiving; express after-sales service; and worry-free service; ? Initiating "Face-to-Face" Quality Dialogue: Inviting dealers and consumers to participate in pain point surveys to further optimize processes such as edge sealing and color variation control, as well as address product-related issues; ? Strengthening Quality Traceability: The Group implemented full-lifecycle traceability for every product via the MES system, resulting in a 13.71% decrease in quality-related complaints. OPPEIN Home Group Inc. Case: Warranty System Upgrade OPPEIN Doors & Windows prioritizes after-sales customer protection. Adhering to the philosophy “a brand has power, and we dare to guarantee quality”, it has upgraded its warranty system to set a new industry service benchmark. The upgrade delivers three breakthroughs: extended warranty terms, wider coverage and faster response. It fully covers core door and window parts including aluminum profiles, glass, sealing strips, thermal breaks, hardware and electronic components, safeguarding users throughout the product lifecycle. Upholding listed company-grade quality standards and accountability, we have turned vague verbal commitments into enforceable, traceable service norms, translating product confidence into reliable contractual guarantees for consumers. Case: "Service Summit Plan" OPPEIN launched the "Service Summit Plan" on March 15, 2025, marking a strategic leap from service leadership to service innovation. Centered on "Integrated Design + Scenario-Based Spaces", the Group advances systematic R&D in product function, style and materials. With stable pricing, it iterates product systems via pain-point insight and value innovation. Focusing on design, supply chain, production, logistics and installation, it implements full-process quality control and promotes face-to- face quality communication to elevate customer experience. Technologically, the Group integrates AI and IoT across all service scenarios. By covering AI visual inspection, intelligent customer service, real-time logistics monitoring, and installation quality tracking, the Group boosts service standardization and accuracy through innovation. A three-tier service network of Headquarters, Bases and Local Offices has been established. After-sales centers at five major bases were upgraded to build localized quality support and streamline one-stop after-sales resolution. By empowering dealers with design training and system support, every service touchpoint fosters lasting customer satisfaction.We place a high priority on data and privacy security. Adhering to the principles of "prevention first, OPPEIN Home Group Inc.unified standards, standardized management, and comprehensive control," we have established acomprehensive internal information security management system, organizational structure, procedures,and policies. We have set up a dedicated security operations team and continue to invest in buildingnetwork and data security capabilities. While complying with regulatory requirements, we uphold the"Development, Security, Operations" (DevSecOps) security philosophy, standardize data securitymanagement, provide users with secure, stable, and reliable products and services, ensure businesssystem continuity, and comprehensively protect the information security of both the Group and ourcustomers. At the same time, we conduct regular information security education and technical trainingfor employees to foster a strong culture of information security.During the reporting period, the Group did not experience any information leakage incidents, and noneof its business-related mobile applications were publicly notified or removed from app stores bynational regulatory authorities.As the Group advances toward intelligent and digital development, we place increasing emphasis onnetwork and information security. To strengthen the protection of the Group"s critical data andinformation assets, and in accordance with the requirements of relevant laws and regulations such as thePersonal Information Protection Law of the People"s Republic of China, the Cybersecurity Law of thePeople"s Republic of China, and the Data Security Law of the People"s Republic of China, we haveformulated the "Information Security Management Regulations," the "Data Security ManagementSpecifications," the "Anti-Virus Management Specifications," and the "Trade Secret ManagementRegulations." We have established and maintained data security policies and standards, thereby formingthe OPPEIN Information Security Management System. During the reporting period, we implemented apublic cloud security project. To ensure the secure and stable operation of the Group"s informationsystems, we newly formulated relevant regulations such as the "Public Cloud ManagementSpecifications," "Information System Usage Management Specifications," "K3 System CustomerManagement Specifications," and "Terminal Marketing System Material Maintenance ManagementSpecifications." During the reporting period, the Group"s total investment in information security systemdevelopment amounted to RMB 1.9402 million. OPPEIN Home Group Inc. Information Security Governance Organizational Structure? Data Compliance ManagementWe have established a robust data compliance management organizational system and a routinecommunication and collaboration mechanism. We have clearly defined the entities responsible for datacompliance, made adherence to data compliance requirements and fulfillment of data complianceobligations a condition of employment, conducted necessary background checks on employees in keydata processing positions, and clarified the data compliance requirements they must adhere to and theobligations they must fulfill through the signing of compliance commitment letters and confidentialityagreements. This strengthens data compliance management, promotes the compliant use of data, andcomprehensively safeguards the Group"s data security.? Privacy ProtectionWe strictly regulate the content of our apps (such as the OPPEIN Smart Home app and the Hailie Niaoapp) and mini-programs regarding user privacy policies and the collection and use of personalinformation. We regularly conduct privacy impact assessments and app privacy compliance audits forrelevant business scenarios, and promptly address any issues identified. We fully respect and protect OPPEIN Home Group Inc.users" rights to know, choose, and control their personal information. We describe relevant policies andmeasures regarding the collection, management, and protection of personal information within our appsand mini-programs., and obtain user consent before collecting or using their information. Additionally,we employ strict data access controls, multi-factor authentication, data anonymization, and encryptedtransmission to comprehensively protect personal information.? Emergency Response PlanWe have established emergency response plans and mechanisms, such as the "Information SecurityIncident Emergency Management Specifications," and have set up an organizational structure forinformation security incident response. In the event of a data breach or security risk, we will immediatelytake remedial measures and follow up promptly to minimize the losses and impact caused by the incident.Furthermore, we conduct vulnerability management in accordance with the "OPPEIN Group InformationSecurity Vulnerability Management Specifications." Based on the vulnerability management lifecycleand tailored to the Group"s specific circumstances, we have established information security vulnerabilitymanagement processes. We also conduct penetration testing to assess the security of network systems bysimulating malicious attacks. Information Security Emergency Response Organizational Structure? Partner OversightWe place great importance on our partners" management of privacy and trade secrets. We incorporate"Confidentiality Clauses" into the procurement contracts or cooperation agreements signed with them,requiring suppliers, distributors, and other partners to strictly fulfill relevant confidentiality commitmentsto protect product confidential information and user privacy data. We also incorporate the informationsecurity and privacy protection policies and systems of key stakeholders into our overall riskmanagement planning, designating them as key focus areas for internal and external information securityaudits. We conduct annual specialized reviews of these audits to ensure that information and privacy OPPEIN Home Group Inc.security are effectively managed.All employees are required to complete information security training upon joining the company.Additionally, we organize information security and privacy protection training and awareness sessionson an ad hoc basis throughout the year. These sessions are delivered through centralized on-site training,email distribution, online learning via the "E-Orange Academy," and desktop notifications on workcomputers. The content covers the dissemination of national information security laws and regulations,fostering cybersecurity awareness, office email security, safe software downloads, computer virusprotection, and prevention of telecommunications fraud. The training targets all current and newemployees, and specialized training is regularly provided for personnel engaged in information security-related work. During the reporting period, the Group conducted two cybersecurity awareness campaignsand two cybersecurity training sessions, reaching over 14,364 employees. The employee trainingcoverage rate reached 80.70%, comprehensively enhancing employees" cybersecurity awareness and skilllevels. The Group Cybersecurity Learning Week Activities OPPEIN Home Group Inc.OPPEIN has always advocated the concept of "Humanistic Love for Home" — extending care fromindividual families to society at large, and from personal affection to greater compassion. Internally, weemphasize that " talent is the most valuable asset for enterprise development ", fully respect and protectthe basic rights and interests of every employee, create a safe and healthy working environment, and atthe same time fully stimulate employees" potential. We enrich employees" lives through diverse activities,and continuously enhance their sense of gain, happiness, security and satisfaction. Externally, we focuson fulfilling corporate social responsibility, increase support for rural revitalization, focus on publicwelfare causes such as poverty alleviation and student assistance, intellectual enlightenment educationfor disabled children, and red culture inheritance education. We constantly strengthen the public"s brandrecognition of OPPEIN"s "Love Home Culture" and high recognition of its social responsibility,embracing and giving back to society with the warmth of the enterprise as a responsible corporate citizen.The Group fully protects the legitimate rights and interests of employees, builds a fair, impartial and opencareer development platform, continuously improves the salary and welfare system and performanceappraisal system, carries out employee stock ownership plans, strengthens employee welfare protection,and strives to provide employees with a satisfactory work and life experience. At the same time, theGroup strives to provide employees with diverse training opportunities, improve the occupational healthand safety production management mechanism, and provide employees with healthy and safe workingconditions. In terms of labor relations, the Group continuously optimizes the Staff RepresentativeCongress and employee forums, smooths employee communication channels, encourages employees andteams to actively put forward suggestions for the company"s development, and promotes the commondevelopment of the enterprise and employees.The Group strictly complies with national labor, employment and recruitment regulations, and hasformulated comprehensive internal rules covering recruitment, labor contracts, graduate hiring, overtimecompensation and post management. Supported by a dedicated recruitment system, it establishes a multi- OPPEIN Home Group Inc.level talent pool categorized by source, type, position, region and rank, fully meeting talent recruitmentand organizational development demands. Committed to a scientific, efficient and impartial recruitmentmechanism, the Group upholds human rights, fairness and justice. It strictly prohibits child labor andforced labor, rejects all forms of discrimination throughout recruitment and employment, and guaranteesequal development opportunities and fair treatment for all employees.During the reporting period, the Group was awarded the honorary title of "2025 Guangdong AnnualExtraordinary Employer".The Group has formulated the “Employment and Labor Contract Management Regulations” tostandardize the employment of employees and the management of labor contracts, ensuring that themanagement of employee employment and labor contracts is based on clear rules. It has also formulatedthe “External Shared Employment Management Regulations” to improve the legal definition of sharedemployment relationships and clarify the roles and responsibilities of participating entities. Meanwhile,the Group firmly prohibits the employment of child labor. It has established a personnel system controlmodule that automatically alerts candidates who have not reached the legal age. In addition, during theemployment and onboarding process, candidates are required to submit their original ID cards again forage re-verification. If there is any inconsistency, an investigation process is immediately initiated toverify the real age, and employment offers are resolutely revoked for candidates under 18 years old. Thesystem has established a clear structure of qualification level standards, defining the qualificationstandards for each job category, job type and position. The Group signs labor contracts with employees OPPEIN Home Group Inc.in a timely manner, clarifying the rights and obligations of both parties to ensure compliant employment.During the reporting period, the Group formulated the “Staff Secondment Management Regulations,”improved the staff secondment mechanism, clarified the secondment approval authority and theresponsibilities of relevant departments, and fully standardized the management of staff secondmentwithin the Group.During the reporting period, the labor contract signing rate of the Group’s employees was 100%; no childlabor or forced labor was found in the Group, and there were no strikes or work stoppages. The personnel system control module automatically alerts candidates who have not reached the legal age Structure of qualification level standardsThe Group adheres to the employment philosophy of "integrity and ability, person-job fit, faircompetition, and ability-based promotion", and adheres to the principles of open recruitment, equal OPPEIN Home Group Inc.competition, and merit-based employment. It provides equal job opportunities to all applicants andemployees regardless of gender, ethnicity, marital status, disability or family status. As of the end of thereporting period, the total number of employees in the Group was 17,880, including 900 ethnic minorityemployees, 154 veteran employees, 131 disabled employees, and 29 short-term contract employees(including rehired retirees); there were 0 dispatched employees. During the reporting period, 5,422 newemployees were recruited, including 198 campus recruits and 5,244 social recruits. Employee attrition By gender Male 12,134 67.86% Female 5,746 32.14% By age Under 30 4,135 23.13% By education attainment Graduate students and above 134 0.75% Undergraduate 3,796 21.23% College and below 13,950 78.02% By position Full-time junior employee 16,512 92.35% Full-time middle management employee 1,308 7.32% Full-time senior management employee 60 0.34% Employee turnover rate attrition Overall Employee Turnover Rate 42.56% By gender Female 36.80% Male 45.27% By age Under 30 63.08%The Group has formulated fair and impartial salary systems and performance incentive mechanisms suchas the “Salary Management Regulations” and the “General Management Regulations” on EmployeeSalary Incentives and Calculation, building a competitive salary system for all employees. It carries out OPPEIN Home Group Inc.employee stock ownership plans to improve the benefit-sharing mechanism between employees andshareholders. The Group continuously improves the employee rights and interests protection system,upgrades the employee welfare system, establishes a Trade Union Committee, and formulates sound rulesand regulations covering labor contracts, social insurance, salary distribution, parental leave, employeephysical examinations, and work-related injury management, effectively protecting the legitimate rightsand interests of employees. It also carries out employee care activities to enhance employees" sense ofwork happiness and belonging.The Group has formulated the “Performance Management Regulations,” “Incentive MechanismConstruction Management Regulations," "Performance Appraisal Data Collection ManagementSpecifications,” and “Performance Appraisal Card Compilation Guidelines.” Adhering to the principlesof "supporting strategy, three balances, and fairness and impartiality", the Group has established aperformance management organization and built a scientific, comprehensive, objective, impartial,efficient, practical and accurate performance management system. This system closely linksorganizational and individual performance goals, maximizes the activation of organizational andindividual efficiency, and ensures the achievement of organizational strategic goals while improvingemployees" individual performance.? Performance SystemThe performance system consists of three parts: the performance management system, the performanceinternal audit and inspection system, and the performance improvement system. Among them, theperformance management system mainly includes five parts: "appraisal type, appraisal cycle, appraisalmethod, appraisal team, and performance process". The appraisal results will be directly applied to thecalculation of performance bonuses (specific calculation rules shall be subject to the latest salaryregulations), and also serve as an important basis for recruitment decisions, talent inventory and selection,employee promotion, employee training and development, annual excellent selection, and annual salaryadjustment. The performance internal audit and inspection system focuses on the standardized review ofthe implementation process, and conducts audit and supervision on the operation of both the performancemanagement and improvement systems. The performance improvement system refers to the process ofusing systematic tools to analyze the gap between reality and goals, identify the causes, and implement OPPEIN Home Group Inc.targeted measures to continuously enhance competitive advantages. At the same time, a performanceteam award is set up to commend teams that have made contributions in this process.During the reporting period, the Group"s performance management system covered 100% of employees. Group Performance Committee (Virtual Body) Group-level Performance Division/Base/Center- Department-level Implementation Team level Performance Performance Implementation Team Implementation Team Performance Management Organizational Structure Performance Management System OPPEIN Home Group Inc.? Performance Appeal and FeedbackWe maintain open channels for performance feedback and appeals. Performance staff must verify scoresand provide feedback to appraisees as required. Appraisees are required to confirm the results within 2working days of receipt; failure to respond within the specified period is deemed as acceptance. If anappraisee disagrees with the result, they may initiate the appeal process: "Appraisee submits appeal →Performance staff accepts the appeal → Appraisal team (direct supervisor and two-level superior)reviews and adjusts the score as appropriate". If the appraisee still disagrees with the General Manager’sdecision, they may escalate the case to the Performance Management Department for verification. If thePerformance Management Department endorses the General Manager’s opinion, it shall be deemed thefinal conclusion; if there is a disagreement, the case shall be submitted to the responsible/coordinatingexecutive for the final ruling, thereby fully ensuring the fairness of the performance appraisal.To enhance employee cohesion and promote the long-term, sustainable and sound development of theCompany, in accordance with the Guiding Opinions on Piloting the Implementation of Employee StockOwnership Plans by Listed Companies issued by the China Securities Regulatory Commission and theSelf-Regulatory Supervision Guideline No.1 for Listed Companies on Standardized Operation of theShanghai Stock Exchange, the Group implements an equity incentive plan for key employees, middleand senior management personnel, directors, and other employees who have made outstandingcontributions to the Company’s performance or exert a significant impact on its future development. InGroup Co., Ltd. The plan covered a total of 230 incentive recipients, with a cumulative granted volumeof approximately 578,500 shares and a transaction value of about RMB 68.2559 million. In 2024, theBoard of Directors approved the extension of the First Outstanding Employee Stock Ownership Planuntil March 22, 2026, so as to fully safeguard the interests of plan participants and the Company andsupport its long-term development.During the reporting period, the Group issued a prompt announcement regarding the upcoming expirationof the employee stock ownership plan. In accordance with plan arrangements, participants mayindependently decide whether to sell their shares or apply for an extension of the duration based onpersonal willingness and market conditions. The Group will continue to monitor the progress of the OPPEIN Home Group Inc.employee stock ownership plan and strictly fulfill information disclosure obligations in compliance withrelevant regulations. As of the disclosure date of this report, the Company’s Board of Directors hasapproved extending the First Outstanding Employee Stock Ownership Plan to March 22, 2027. Announcement on the First Outstanding Employee Stock Ownership Plan of OPPEIN Home Group Inc.The Group attaches great importance to humanistic care for employees. By formulating the “EmployeeWelfare Subsidy Management Regulations,” it has built a 360-degree all-round care system, created amechanism of co-creation, sharing, win-win and common prosperity, and continuously providedemployees with a variety of welfare benefits. Through the formulation of the OPPEIN Home FurnishingGroup Employee Visit, Condolence and Donation Assistance Management Specifications, the Grouppays attention to the work and life of front-line employees, female employees, retired personnel andemployees in difficulty, continuously improves the employee assistance and support mechanism, andstrives to enhance employees" sense of work happiness and belonging.During the reporting period, the Group"s employee social insurance coverage rate was 100%; it investedapproximately RMB 86 million in employee welfare construction, with an average of 5.62 paid annualleave days per employee.? Employee Welfare System OPPEIN Home Group Inc.In accordance with national regulations, the Group provides employees with statutory welfare benefits(including social insurance, housing provident fund, and statutory holidays). Adhering to the coreprinciple of "shared by all employees, no omissions", it strives to move beyond the concept of "welfarefor a minority". Based on the characteristics of production, operation and management, the Groupreasonably provides a variety of supplementary employee welfare benefits, such as holiday benefits,birthday benefits, education and training benefits, employee physical examination benefits, employeegroup activity benefits, meal benefits, communication subsidies, and seniority awards. It also createsexclusive emotional IP peripherals, making welfare an important carrier for conveying corporate culture.The Group strictly follows national working hour rules and paid annual leave policies, and observes alllegal holidays. It also offers compassionate leave types, forming a full leave system covering 16categories including sick leave, parental leave and bereavement leave. It adopts a five-day work schedulewith seasonal working hour adjustments. To practice its people-oriented culture, the Group applied areporting period, it further moved up the Friday finishing time to 4:15 PM, effectively reducing workinghours and safeguarding employee well-being.The Group develops diversified employee benefits centering on personal growth, family harmony andlife security, and builds all-round activity systems. In 2025, nearly 100 welfare and cultural events wereheld. Various sports and cultural activities enrich staff leisure time; family-themed events strengthenemotional ties. Practical benefits including free medical service, summer supplies, child care benefitsand staff discounts fully satisfy daily needs. Targeted care activities are launched on major festivals. Therefined personalized care system meets diverse personal and family demands and delivers thoughtfulcorporate warmth. OPPEIN Home Group Inc. Supplementary Employee Welfare Cultural and Recreational Venues: Gym, Basketball Court, Table Tennis Room, Library, Badminton Court, Billiards Room, Football Field Living Supporting Venues: Nursing Room, Bank, Convenience Store, Medical Room (including Outpatient Department, newly added Traditional ChineseSupporting Facilities Medicine Physiotherapy Room, newly added Psychological Counseling Room, providing acupuncture, moxibustion, massage and other services), newly added Electric Vehicle Shed Living Supporting Software: Carpool Platform (meeting employees" carpooling needs for daily commuting, holiday travel and other group trips) Newly added dormitory curtains and range hoods; replaced dormitory doors, iron frame beds, heating and cooling inverter air conditioners, constantFacility Improvement temperature water heaters, and anti-mosquito door curtains; renovated basketball court; renovated and upgraded canteen Newly added welfare housing and couple rooms; installed electric vehicleTalent Apartment charging piles and express delivery cabinets Provide Golden Nanny cleaning services for dormitories and Sunflower cleaning services for officesEmployee Services Launch fresh food group purchase services Newly added employee lounges Free dormitory convenience services and dormitory pest control Festival activities (such as Lantern Festival, Women"s Day) Special themed activities (such as Better Life Bazaar, Food Safety, FoodEmployee Activities Festival, employee symposium and interaction) Summer parent-child activities (DIY baking, back kitchen visit) OPPEIN Home Group Inc. Clinic Nursing Room Banks LibraryCase: "OPPEIN Little Masters" Caring Summer Care ClassIn August 2025, the closing ceremony of the first "OPPEIN Little Masters" Caring Summer Care Classcame to a successful conclusion. Through a month of warm companionship, the children gainedknowledge and bloomed with confidence, while their parents were able to focus on their work withpeace of mind. This warm journey rooted in the theme of "home" is not only a growth classroom forthe children, but also a vivid interpretation of OPPEIN"s corporate culture of "With Home, With Love". OPPEIN Home Group Inc.? Employee Care ActivitiesThe Group actively carries out cultural, sports and care activities for employees, and hasinnovatively held events such as distribution of red envelopes for returning to work, corporateperipheral design competition, workshop fun activities, and parent-child study tours to enrichemployees" lives and enhance their sense of happiness and belonging. At the same time, we havebuilt and implemented a comprehensive and precise assistance system for employees in financialdifficulty. We organize home visits and condolences to convey the Group"s care, launch donationactivities to gather love, and assist employees in extreme financial difficulty in obtaining specialassistance from the Municipal Staff Development Foundation.During the reporting period, the Group provided support to 33 employees in financial difficulty,with a total support investment of RMB 398,500; extended condolences to 10 employeesexperiencing illness or bereavement, with a total condolence fund of RMB 31,600; raised a total ofRMB 504,600 in charitable funds through employee donations and corporate matching donations;and held 44 special themed cultural, sports and care activities. Assistance System for Employees in Financial Difficulty The system covers a comprehensive range of scenarios, including critical illness reimbursement (for employees and their immediate family members) and hardship support, fully addressing the core needs of employees and their families in daily life, health, and emergency Full Coverage of situations. In 2025, the Ping An Fund provided support to 16 employees Support Scenarios with serious illnesses, with a total support amount of RMB 310,200; supported 5 person-times of employees with critical illnesses, with a support amount of RMB 60,000; and provided assistance to 5 employees from families in financial difficulty, with a total support amount of RMB OPPEIN Home Group Inc. Assistance System for Employees in Financial Difficulty Corresponding home visits and condolence payments are arranged for emergencies such as employee injury, illness or death, enabling rapid response to employees" urgent difficulties. Meanwhile, the support scopeTimely and is extended to the "family" dimension to cover employees" relatives. InCompassionateResponse with a total expenditure of RMB 1,600 on gifts; extended condolences to with a total condolence payment of RMB 30,000. A "donation matching" model has been set up, which not only implements the support activities through employees" spontaneous donations, but also amplifies the support effect through corporate matching donations, thus increasing the total amount of support resources. In 2025, the GroupMatching Donation organized 7 employees to make donations, raising a total of RMB 216,500Mechanism to Amplify in charitable funds. It also provided synchronous charitable matchingCharitable Goodwill donations for employees who applied for critical illness reimbursement from the Ping An Fund and for employees in financial difficulty who received donation support, with a total matching donation amount of RMB The Group proactively cooperates with external trade union resources toPrecise Connection with secure support quotas for employees in financial difficulty and modelSupport Resources from workers in a targeted manner, ensuring precise coverage of special groups.Higher-level Trade In 2025, the Group secured a total of RMB 15,300 in support funds for 7Unions people in financial difficulty. Thank You Letter from Love Multiplied Thank You Letter from Ping An Fund Donation Recipients Support Recipients OPPEIN Home Group Inc.Case: Great Discount Carnival, Walking Hand in Hand with LoveIn June 2025, OPPEIN hosted its first large-scale Employee Internal Purchase Welfare Day at theemployees and families despite rainy weather. Led by the OPPEIN Party Committee, GuangzhouOPPEIN Charity Foundation and the Group Labor Union, the event collaborated with internaldepartments and external brands including C&S Paper, Yida Supermarket, Bawei Biotechnologyand Xiaomi Auto. Offering exclusive discounts, diverse benefits and thoughtful services, itdelivered a shopping carnival integrating public welfare, environmental protection and qualityliving for all staff.Case: The First Staff Fun Sports ActivityIn November 2025, to enrich employees’ cultural life and enhance team cohesion, the GroupLabor Union (Party-Mass Work Office) hosted OPPEIN’s inaugural staff fun sports meet underthe theme "Fun Ignites Energy, Unity Creates New Momentum". Blending fun, competition andwarmth, the event helped participants unwind from work and fully release vitality, whileachieving linkage across the Group’s four major bases. Each base held tailored sports activities,presenting a vibrant scene of solidarity, warmth and pursuit of excellence across the enterprise. OPPEIN Home Group Inc.Case: Painting Fatherly Love in the Cloud, Warmth Hidden in the BottleOn Father"s Day in June 2025, with the theme of "Customized Happy Beer for Dad", the LaborUnion planned a unique parent-child wine bottle painting activity to convey the warmth ofOPPEIN"s "Family Culture". 100 groups of employee families outlined the most sincereconfession to their fathers on the wine bottles and drawing paper. The offline event originallyscheduled for June 13 was switched to home creation due to a typhoon, which resulted in morequality parent-child time. Summer Parent-Child Activity at Qingyuan Table Tennis Challenge at Qingyuan Base Base Caring Summer Care Class at Wuxi Base Labor Union Study Tour Activity at Tianjin Base OPPEIN Home Group Inc. Billiards Challenge at Qingyuan Base 2nd Parent-Child Activity at Wuhan BaseWe attach great importance to talent retention and attraction. Focusing on "talent echelon construction,internal business empowerment, and market-oriented business expansion", and taking the breakthroughof digital and intelligent transformation as the core means, we have built a talent ecosystem featuringinternal and external collaboration and value co-creation. We encourage and support employees toparticipate in internal and external learning and improvement, and provide professional skill certificationresources to fully support employees" development. We strengthen the internal training faculty, providematched training opportunities for different types of employees, and set up talent development plans toempower employees, provide them with broad space for personal growth, and open up effectivepromotion channels. This has formed a sound talent growth mechanism of "promoting the capable anddemoting the incompetent", providing a solid guarantee for building a high-quality, high-performanceand professional team.We attach great importance to talent retention and attraction. Focusing on "talent echelon construction,internal business empowerment, and market-oriented business expansion", and taking the breakthroughof digital and intelligent transformation as the core means, we have built a talent ecosystem featuringinternal and external collaboration and value co-creation.Regarding internal training, Guided by business needs, the Group conducts training demand surveys andhas established a layered and classified precise training mechanism. Through the E-Orange Collegeonline learning platform, we meet employees" needs for learning anytime and anywhere. For newemployees, college graduates, and key positions such as R&D and design, we strengthen training on the OPPEIN Home Group Inc.implementation capability of the whole home furnishing strategy. Through the restructuring of Mini-EMBA courses for senior executives, we cultivate a management echelon with industry vision. At thesame time, we regularly organize challenging team projects, and enhance employees" cross-departmentalcollaboration ability and cohesion through practices such as outward bound training.Regarding external collaborative talent development, the Group shares industrial experience withvocational education and pioneers terminal empowerment initiatives including “Whole Case Design andTransaction” and “Anchor Incubation”, now widely rolled out across the dealer system. It has launchedtraining courses, assessment and certification systems covering material knowledge, the industry-education-evaluation apprenticeship framework, and technical talent skill grading. The Group obtainedindependent occupational evaluation qualifications for Interior Decoration Designers, MechanicalCarpenters and Salespersons. It has also been selected as a Guangdong provincial leading unit for theindustry-education-evaluation skill ecosystem chain and a model construction unit for Guangzhou’scorresponding skill ecological zone.During the reporting period, the total employee training duration of the Group reached 575,301 hours,including 481,038 hours of offline training and 94,263 hours of online training, with an average trainingduration of 32.18 hours per employee. The Group invested RMB 5.508 million in vocational training. Talent Development and Cultivation System OPPEIN Home Group Inc. Skilled Personnel Training System Talent Training Content Provide training on new knowledge in employees" professional and relatedEmployee Knowledge fields, to equip them with the new knowledge, new thinking and newTraining vision required to complete their job duties. Continuously provide training on job responsibilities, processEmployee Skill specifications and operating procedures, to enable employees to master theTraining essential skills for completing their job duties. Provide general quality training such as psychology, interpersonalProfessional Conduct relations, and team building, to help employees develop a sound mindset,Training establish correct outlook on life and values, and comprehensively improve their professional quality. Key Focuses of Talent Training and Development Implement targeted talent reserve and training, establish a key talent pool,Talent Echelon form a competition mechanism of "promoting the capable and demotingOptimization the incompetent", and build a high-quality team. Adopt a hybrid, experiential training method that integrates learning andEfficient Training practice, to precisely improve employees" business capabilities and abilityModel to solve practical problems. In accordance with national policies and corporate strategies, and inIntegration of Policy combination with business needs, strengthen organizational and individualand Demand performance, and promote the training of skilled talents. Based on the annual demand survey, provide training programs that meetPersonalized Training personalized growth needs.Technology Platform Integrate multiple platforms such as E-Orange College to simplify learningIntegration paths and improve learning efficiency. OPPEIN Home Group Inc. E-Orange Online Learning Platform - E-Orange CollegeNew Feather Program - Specialized Training Eagle Program - Group Talent Echelon for New Graduates Training Camp Rainbow Program - Specialized Training Elite Program - Specialized Training CampCamp for E-commerce Talent Supply Chain for R&D Talents The First "OPLink Efficiency Pioneer" New Employee Induction Training Training Camp OPPEIN Home Group Inc. Mini-EMBA Middle and Senior Management Team Building – Outward Bound Training Development Program Case: Exhibition Hall Visit & Practical Training In 2025, to address practical problems encountered by employees in daily management and operational processes, the Group"s Second Business Division organized employees to visit the exhibition hall and invited trainers from the Training Department to conduct on-site teaching, aiming to effectively improve training effectiveness. During the training, the trainer first gave a systematic and detailed explanation of the products to help employees deeply understand the company"s business; then immediately organized employees to practice product introduction in the exhibition hall, realizing "integration of learning and practice" to make the training more practical and application-oriented. This "hands-on" professional teaching model not only enhanced the professionalism of the training, but also efficiently solved business pain points.In line with the home furnishing industry characteristics, the Group has formulated institutionaldocuments including OPPEIN Home Group Talent Development Management Regulations, EmployeeCareer Development & Qualification Management Specifications and Competitive Appointment OPPEIN Home Group Inc.Management Specifications. It has built an echelon talent pool focusing on management and skilledpersonnel, systematically planning, cultivating and deploying talents. The Group acceleratesempowerment of high-potential, high-performance talents and advances the elite talent strategy. Byclarifying competitive appointment criteria at all levels, it strengthens a dynamic talent selectionmechanism and builds a professional elite management team. It also conducted the 2025 job qualificationevaluation to stimulate internal talent vitality, promote talent growth and provide solid talent support forcorporate vision and strategic goals. During the reporting period, 100% of employees received regularperformance and career development assessments. Principles of Talent Development Management Training Instead of Adhere to the talent supply strategy of "training instead of recruitment"; Recruitment Elite Selection Match talents with positions and promote the best candidates; Refined Training Provide targeted empowerment for talents; Effective Incentives Make the best use of talents and give full play to their abilities. OPPEIN Career Development Plan OPPEIN Talent Promotion Channel OPPEIN Home Group Inc.The Group attaches great importance to the occupational health and safety of employees, and iscommitted to providing healthy and safe working conditions for employees while continuouslyimproving the occupational health and safety management system. The Group strictly implementsrelevant laws and regulations, including the "Work Safety Law of the People"s Republic of China", the"Occupational Disease Prevention and Control Law of the People"s Republic of China", the "Regulationson Work Safety Training for Production and Business Units", and the "Fire Protection Law of the People"sRepublic of China". Meanwhile, it has formulated a number of internal systems, such as the "Regulationson Occupational Health Management ", the "Eight Major Prohibitions on EHS (Environment, Health andSafety)", the "EHS (Environment, Health and Safety) Assessment and Incentive ManagementRegulations", and the "EHS Meeting and EHS Inspection Management Regulations". The Groupresolutely implements the work safety policy of "safety first, prevention first, comprehensivemanagement", continuously fulfills work safety responsibilities, and strives to ensure the occupationalhealth of employees. Through measures such as carrying out EHS training and emergency drills,launching the information-based process for hidden danger investigation and management, anddeveloping and implementing special operation and accident management processes as planned, theGroup ensures that the workplace meets occupational health requirements and makes every effort tocreate a sound work safety environment.During the reporting period, the Group accumulated 246,449 hours of EHS training, covering 121,220person-times, with an EHS training coverage rate of 100%; conducted EHS internal audits on more thanrelated fatalities occurred. OPPEIN Home Group Inc.The Group adheres to the safety vision of "To be an EHS performance leader in the home furnishingindustry and a home enterprise with excellent safety culture". It strictly follows the accountabilityprinciples of "Whoever takes charge assumes responsibility" and "Business management mustincorporate safety management". The Group encourages employees to expand their responsibilityawareness from "being accountable for oneself" to "being accountable for colleagues", so as to build amutual safety protection network among all staff. By fostering an excellent and continuously improvingsafety culture, the Group has formulated institutional documents including the Base Work SafetyResponsibility System, Safety Culture Manual and Stop Work Guideline. It has officially launched thecorporate safety culture development project and implemented the initiative of "One OPPEIN, One EHSStandard". All levels of personnel have signed Safety Commitment Letters to clarify safety managementresponsibilities, striving to achieve the safety goals of zero casualties, zero environmental pollution andzero occupational injuries.During the reporting period, the signing rate of Safety Commitment Letters across the Group reached Safety Responsibility Safety Culture CommitmentWe combine the characteristics and principles of work safety in the furniture manufacturing industry, usetwo core management tools: risk classification and control, and hidden danger investigation, to establisha dual prevention mechanism for accidents. In accordance with the OPPEIN Home Furnishing GroupHazard Identification and Risk Classification Management Regulations, we implement hierarchicalmanagement of safety risks. Starting from hazard identification, we use risk control as the means to OPPEIN Home Group Inc.prevent risks before hidden dangers are formed; in accordance with the OPPEIN Home Furnishing GroupAccident Hidden Danger Investigation and Governance Management Regulations, we conducthierarchical governance of potential accidents, timely identify possible deficiencies and loopholes in therisk control process, monitor the entire process, and strive to eliminate hidden dangers in the bud toprevent safety accidents.During the reporting period, the rectification rate of potential safety hazards in the Group reached 100%;the lost working hours rate per million working hours decreased by approximately 37.83% year-on-year. Dual prevention work mechanism for safety risk classification and hidden accident detection and management? Hazard ReportingTo strengthen safety management, the Group developed the hazard reporting process in accordance withthe “Investigation and Rectification of Potential Accidents,” and formulated the Operational Guidelinesfor Hazard Reporting Process. It regularly releases hazard reporting data of each factory to ensure timelyidentification and submission of potential safety risks, improve reporting efficiency and accuracy, andrealize full functions including closed-loop tracking of hidden dangers, statistical assessment ofrectification rate, and hierarchical classification of hazards. Meanwhile, the Group tracks rectificationprogress in real time at Group, base and factory levels, monitors core indicators such as rectification rate,and conducts multi-dimensional data analysis to effectively support risk assessment, prevention andcontrol decision-making.During the reporting period, the Group collected more than 25,000 valid hidden hazards, with arectification rate of safety hazards maintaining at 100%. OPPEIN Home Group Inc. "Hidden Hazard" Reporting ProcessBenchmarking against the ISO 45001 occupational health and safety management standard, the Grouphas formulated a series of management regulations, including “Management Rules for Operations inFlammable and Explosive Areas,” “Hot Work Management Rules," “Confined Space OperationManagement Rules,” “Working at Height Management Rules,” and “Personal Protective EquipmentManagement Rules.” The Group continuously improves the occupational health supervision mechanismthrough regular physical examinations, technological upgrading, and provision of sufficient personalprotective equipment.In terms of employee care, the Group establishes occupational health surveillance files for employeesand arranges a comprehensive physical examination for all staff every year, so as to timely monitorphysical conditions and prevent the accumulation of occupational health hazards. Meanwhile, the Groupentrusts professional assessment and testing institutions to conduct annual detection of occupationalhazardous factors in workplace premises. Where workplace conditions fail to meet national and industrialstandards, immediate rectification and improvement measures are implemented to eliminate occupationaldisease hazards, ensure workplaces comply with occupational health requirements, and enableemployees to work in a safer, healthier and more comfortable environment.By the end of the reporting period, OPPEIN Tianjin, Wuxi, Chengdu, and Qingyuan bases have allobtained ISO 45001 certification. During the reporting period, the employee physical examinationcoverage rate reached 100%; the detection rate of occupational hazard factors was 100% with zero newoccupational disease cases; the certification holding rate of special operation personnel remained 100%. OPPEIN Home Group Inc. Certificate of Occupational Health and Safety Monthly verification of employment status of Management System Certification – Qingyuan employees with occupational contraindications Base? Work-related Injury DisposalIn accordance with relevant laws and regulations such as the “Work Safety Law of the People"s Republicof China” and the “Regulations on the Reporting and Investigation of Production Safety Accidents,” wehave issued the “Regulations on the Reporting and Disposal of Safety Accidents” to standardize thereporting, investigation, analysis, determination, and recording of production safety accidents. We haveformulated the “Implementation Specifications for Work-related Injury Management”, requiring eachbase and factory to formulate emergency response plans based on actual conditions, organize trainingand drills to enable employees to master emergency handling methods, and demand the immediateactivation of emergency response plans when an accident occurs to minimize accident losses.In terms of accident investigation, the Group"s EHS Management Department will set up an investigationteam according to the type of accident, and all departments shall support and cooperate with the accidentinvestigation and disposal work. The investigation team shall complete the investigation within 7working days from the date of the accident, conduct cause analysis, formulate and implement correctiveand preventive measures, form an accident investigation report, and submit it to the compliance approverfor approval before issuing the accident approval and closing the case.During the reporting period, 139 employees of the Group suffered work-related injuries; the total workingdays lost due to work-related injuries were 948.71 days, with 0.06 working days lost per million yuan ofrevenue. The work loss rate per million working hours decreased by 37.83% year-on-year, achieving the OPPEIN Home Group Inc.challenge target of more than 30% for three consecutive years. Process of Handling Work-related AccidentsTo help employees grasp workplace safety knowledge and operational skills and prevent safety incidents,the Group issued the “Safety Education and Training Management Regulations” and built a full safetytraining system. It holds regular emergency drills and delivers ongoing safety education via lectures,forums, team discussions, practical training, video courses, online learning and safety manual study.? Safety Culture TrainingAll new employees must complete mandatory onboarding safety training, while in-service staff receiveregular cybersecurity promotion and safety awareness courses via the Group’s E-Orange College OPPEIN Home Group Inc.platform. Offerings include National Cybersecurity Publicity Week activities, phishing risk alerts andcybersecurity awareness videos. During the period, the Group further deepened safety culture across alllevels. Customized training for middle and senior management covered all production bases with aThe participation rate of employees in safety culture training reached 100% in the reporting period. Safety Culture Training: Wuxi Base Safety Culture Training: Tianjin Base Safety Culture Training: Qingyuan Base Safety Culture Training: Chengdu Base? Emergency DrillsThe Group’s Emergency Management Department organizes emergency drills for sudden environmentalincidents at least once every six months. The drill plan, summary, photos and attendance records shall besubmitted to the EHS Management Department. Meanwhile, On-site Emergency Response Cards forSudden Environmental Incidents shall be posted at key positions to ensure the effectiveness of leakprevention facilities, interception facilities, emergency equipment and other materials within theirjurisdiction. If any damage or failure occurs, timely maintenance or replacement shall be carried out.During the reporting period, the Group conducted a total of 70 emergency drills. OPPEIN Home Group Inc. Case: Fire Emergency Drill at Qingyuan Furniture Factory In June 2025, Qingyuan Furniture Factory held a fire drill to strengthen employees’ emergency response and coordination for sudden production accidents. Once alerted, the factory activated its emergency plan, with all assigned teams performing respective duties. The drill assessed rescue capacity, remedied plan flaws, improved staff professionalism, and raised overall safety awareness. Case: Vessel Explosion Accident Emergency Drill at Qingyuan Base In June 2025, Qingyuan Metal Doors and Windows Factory conducted an unannounced special emergency drill for a vessel explosion, testing employees’ emergency response to unexpected situations without prior notice. The entire drill—from emergency discovery, reporting, emergency plan activation to completion—took 4 minutes and 48 seconds, with all personnel safely evacuated in comprehensive emergency capabilities in using protective equipment, conducting rescue and evacuation, and raised their environmental and safety awareness.The Group fully recognizes that its development depends on the contribution of every employee, attachesgreat importance to employee voices, and actively improves labor relations. It continuously optimizes OPPEIN Home Group Inc.management mechanisms and workflows including the Staff Congress, rational proposal collection,collective negotiation, factory affairs disclosure, and labor dispute mediation. Through the “1+1+N”employee suggestion platform and digital feedback system, the Group builds a multi-dimensional,efficient and smooth labor communication system to effectively protect the legitimate rights and interestsof all employees. It also conducts employee engagement and satisfaction surveys to understand employeeneeds in a timely manner and create a comfortable working environment.To smooth employee communication channels, the Group issued complete regulations including StaffCongress rules, employee symposium management, sentiment surveys, factory affairs disclosure,rational proposals and employee relations management, encouraging staff to contribute ideas forcorporate development. In 2025, themed “In-depth Promotion and Empowerment through Democracy”,the Group optimized the Staff Congress mechanism and upgraded democratic management viadigitalization, expanded channels and streamlined processes. It adopted the Lark platform to build anonline system for representative elections, proposal handling and rectification tracking, alongside anemployee representative database and online proposal workflow. Using an offline-plus-Lark live meetingmodel and “Face-to-Face with the Chairman” forums, it held six symposiums across three manufacturingbases and external institutions to broaden participation channels. The Group improved the closed-loopmechanism of collection, acceptance, assignment, supervision, feedback and publicity to betterimplement proposals. The upgraded Employee Feedback Service Center 3.0 added interactive evaluationand efficiency ranking, enabling instant responses to employee needs.During the reporting period, the Staff Congress collected 61 valid proposals and reviewed and approvedand handled a total of 1,411 suggestions (including carry-overs from 2024). Among them, 848 CategoryA suggestions were adopted and achieved tangible results. Both the response rate and closed-loop rate ofdemands on the online platform reached 100%. OPPEIN Home Group Inc. Build Platforms to Smooth the "Suggestion Path"Staff Congress & Symposiums: Rational Proposals: A regular Employee Feedback ServiceThe most efficient platform for efficiency-improving platform Center: A 7x24-hour onlinethe Group"s senior management that encourages employees to channel for quick response toto centrally listen to, respond to contribute their wisdom to cost personalized demands.on-site, and systematically reduction, efficiencyaddress the core concerns of improvement, qualityemployees. enhancement and process optimization. Examples of Practical Achievements of the Staff Congress Canteen upgrading and renovation Introduction of medical room and "one-yuan medical treatment" project Upgrading and renovation of gym facilities Construction of talent apartments and dormitory renovation OPPEIN Home Group Inc.The Group is committed to building an agile organization with high employee satisfaction,engagement and vitality. Based on the engagement-driven model and key influencing factors, theGroup continuously enhances employee engagement, fully stimulates staff vitality, and steadilystrengthens employees’ sense of identity and loyalty to the enterprise. An annual questionnairesurvey on employee engagement, satisfaction and vitality is conducted, covering compensation andincentives, welfare, performance management, training and career development, managementeffectiveness, workplace environment, job responsibilities and other dimensions. The survey enablesthe Group to fully understand employee needs and respond to their demands in a timely manner. Inaccordance with the survey results, the Human Resources Department and Compensation & BenefitsDepartment formulate and implement targeted improvement action plans.During the reporting period, the Group’s employee satisfaction stood at 80.11%, employeeengagement at 80.41%, and employee vitality at 81.39%—exceeding China’s overall vitality levelof 79% and the manufacturing industry average of 75%. The employee survey participation ratereached 83.88%, representing a substantial increase compared with the previous year. OPPEIN Home Group Inc.The Group strictly complies with relevant laws and regulations, leveraging its resources to give back tosociety and fulfill social responsibilities. Committed to public welfare, it founded the GuangzhouOPPEIN Public Welfare Foundation. Guided by the mission of supporting vulnerable groups, prioritizingeducation assistance, caring for disadvantaged families and those with health concerns, and promotingsteady social development, and upholding the vision of making homes warmer and love more powerful,the Group continuously launches featured public welfare initiatives including rural revitalization,education support and the Love & Care Initiative. It adheres to Party building guidance, promotes in-depth integration of Party building with production and operation, unites synergy for development, andpursues co-construction, sharing and value creation with all stakeholders.Since its establishment in 2020, Guangzhou OPPEIN Public Welfare Foundation has taken the Group’sbrand value of “With Home, With Love” as its spiritual core, and systematically built a “2+3+X” publicwelfare brand matrix. It proactively undertakes missions including helping the disadvantaged anddisabled, providing financial aid for students, and caring for families, and carries out charitable activitiesin fields such as rural revitalization, education support, flood prevention and disaster relief. By givingback to society through public welfare, the Foundation strives to realize the development vision ofmaking homes warmer and love more powerful.By the end of the reporting period, Guangzhou OPPEIN Public Welfare Foundation had receivedcumulative donations of RMB 51.5814 million, with public welfare expenditures of RMB 45.6727million. During the reporting period, its total public welfare donations reached RMB 6.2064 million. TheFoundation has been awarded numerous honors, including the Kapok Gold Cup of Guangdong PovertyAlleviation, Outstanding Contribution Unit for Guangzhou Rural Revitalization, Grade A TransparencyRating for charitable organizations in Guangzhou, and the Meizhou Poverty Alleviation Award. OPPEIN’s "2+3+X" Public Welfare Brand System OPPEIN Home Group Inc. The "Love Home Program" and the "Love & Care Program", which closely Two Cornerstone Projects (Focus on align with the brand"s core values, continuously focus on family well-being, Love & Health) health and safety. The "Pine Tree Excellence Program" (poverty alleviation and student aid), Three Independent the "Goose Flight Program" (special education), and the "Spark Inheritance Brands (Deeply Engaged in Program" (red education). These initiatives demonstrate our systematic Education & thinking and execution capability, ranging from material support to spiritual Inheritance) care, and from inclusive public welfare to targeted empowerment. We actively respond to national initiatives such as rural revitalization, Green Diversified Public Welfare Outreach and Beautiful Guangdong, poverty alleviation, disaster relief, and pandemic (Respond to the response efforts, demonstrating the sense of responsibility of OPPEIN as an Needs of the Times) outstanding enterprise in the new era.Education is the cornerstone of rural revitalization and a core engine driving the comprehensiveupgrading of rural economy, culture and society. The Guangzhou OPPEIN Public Welfare Foundationdeeply recognizes the power of education. Since its establishment, it has taken “Supporting Education toFulfill Dreams” as one of its key public welfare directions, and continuously donated funds to improveschool hardware facilities and build a healthy and safe campus environment. Meanwhile, it focuses onnurturing and expanding characteristic independent public welfare projects such as the “Pine TreeExcellence Program” (focusing on education support for children from disadvantaged families) and the“Goose Flight Program” (focusing on education support for children with intellectual disabilities),building a three-dimensional support network covering individuals to families and schools tocommunities, and promoting the in-depth and practical implementation of education support work.During the reporting period, the Guangzhou OPPEIN Public Welfare Foundation completed donationsof RMB 3.3367 million for education assistance and tutoring.To reduce poverty, education must come first. Education assistance has always been the core mission ofthe Guangzhou OPPEIN Public Welfare Foundation. The Group has built the “Love+” public welfare OPPEIN Home Group Inc.brand system, taking the "Love Home Program" and "Love&Care Program" as the cornerstones, andrelying on three major educational public welfare brands: the Pine Tree Program (focused on student aidfor impoverished students), the Goose Flight Program (devoted to intellectual development education forchildren with disabilities), and the Spark Inheritance Program (dedicated to training and education atrevolutionary heritage bases). It continues to make efforts in China’s education support cause, helpingmore students realize their dreams. Going forward, adhering to the original aspiration of “Home withLove”, the Guangzhou OPPEIN Public Welfare Foundation will continue to rely on its three majoreducational public welfare brands. Working together with governments, institutions and social forces, itwill steadily advance public welfare in education from sporadic actions to systematic transformation andfrom material support to capacity co-construction, offering valuable practical experience for thesystematic development of public welfare undertakings in China. Case: OPPEIN "Love Core Book House" Guards the Reading Dreams of 879 Children in Guizhou Mountainous Areas In November 2025, after learning about the reading difficulties of left-behind children in Ziqiang Community, Pingba District, Anshun, Guizhou, the "Love Core Plan" team rushed to the site for investigation at the first time. With "solving real needs" as the core, they skillfully combined idle community space with children"s usage habits to create a customized "customization + decoration integration" solution. This public welfare action spanning thousands of miles successfully built a "breathable and environmentally friendly reading paradise" for 879 children through the overall renovation of idle space, customized configuration of formaldehyde-free bookshelves and soft furnishings, and supplementation of diverse books, allowing the children"s dreams to take root here. OPPEIN Home Group Inc. Case: Empowering Special Education in Eastern Guangdong with a Systematic Public Welfare Model Plan" National Day Charity Tour, going deep into the proposed project sites of the "Star Children"s Home" kitchen and workshop in Pingyuan County, and the Special Education School in Jiaoling County. Through in-depth dialogues with associations, parents and teachers, it accurately gained insights into the living conditions of children with special needs and carried out charity donation activities. This trip to Meizhou during the National Day holiday was not only a phased return visit and promotion of the project, but also an in-depth practice of OPPEIN"s public welfare philosophy. In the future, the Guangzhou OPPEIN Charity Foundation hopes to work with local governments and professional institutions to build a special education support model that meets local realities, improving the growth environment of children with special needs in multiple dimensions from teacher training and family empowerment to community integration, aiming to stimulate local forces and build a "public welfare ecosystem" of support networks. The Group actively responds to and implements the important instructions of General Secretary Xi Jinping on implementing the rural revitalization strategy and promoting common prosperity. It further improves and strengthens the rural revitalization work system, leverages its professional advantages, and enthusiastically participates in activities such as campaigns such as "Ten Thousand Enterprises Assisting Ten Thousand Villages" for poverty alleviation, "Ten Thousand Enterprises Revitalizing Ten Thousand Villages" for rural revitalization, and the "High-Quality Development Project for One Hundred Counties, One Thousand Towns, and Ten Thousand Villages", Green and Beautiful Guangdong ecological construction, road construction, and disaster area reconstruction. By spreading the spirit of public welfare OPPEIN Home Group Inc.to more corners in need of care, the Group comprehensively supports rural revitalization. Going forward,while growing stronger, we will enhance our pragmatic responsibility, continue to promote the spirit ofcharity and poverty alleviation, and effectively bridge poverty alleviation achievements with ruralrevitalization efforts, contributing greater strength to rural revitalization.During the reporting period, the Guangzhou OPPEIN Public Welfare Foundation invested RMB 2.0714million in assistance funds to support the construction of rural revitalization projects; simultaneously, itcarried out 4 volunteer activities, organizing 40 participants with a total service duration of 278 hours. Case: Yangcheng Guangcai Co-Creation Public Welfare Project Boosts Rural Revitalization in Lutian, Conghua In June 2025, under the guidance of relevant municipal authorities, the first Yangcheng Guangcai Co- Creation Public Welfare Project, jointly launched by Guangzhou OPPEIN Charity Foundation and Guangzhou Yangcheng Guangcai Charity Foundation, officially landed in Lutian Town, Conghua. The Group’s Party Committee Secretary presented a donation plaque representing RMB 500,000 in special funds to Lutian Town’s Party Secretary, alongside the unveiling of the OPPEIN Spark Inheritance Plan Red Education Base. Adopting an innovative model of charitable donation, red education and consumption assistance, the project precisely empowers local rural development and paints a new blueprint for rural revitalization. OPPEIN Home Group Inc. Case: Joining Hands to Support the Reconstruction of the Earthquake-stricken Area in Tibet In January 2025, a magnitude 6.8 earthquake struck Dingri County, Xigaze City, Tibet. The Group responded quickly and once again extended a helping hand, transferring RMB 500,000 in charitable funds to the special account for earthquake relief through the Guangzhou Charity Federation to send warmth and care to the people in the disaster area. The Group also pledged RMB 4.68 million at the The Group pledged a donation of RMB 4.68 million at the 2025 Guangzhou "6·30" Rural Revitalization CampaignGuided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Group’sParty Committee focuses on learning and implementing the spirit of the 20th National Congress of theCommunist Party of China and the Third Plenary Session of the 20th Central Committee. Whilestrengthening the Group’s Party building, it has always closely centered on the core task of guiding OPPEIN Home Group Inc.OPPEIN’s high-quality development. Taking “Party Building + Five Integrations” (integration withproduction and operation, talent training, integrity building, corporate culture, and social responsibility)as the key approach, it promotes the coordinated development of Party building and business around thewhole-home furnishing strategy, achieving solid results. The OPPEIN-style “Party Building + FiveIntegrations” model integrates the vitality of Party building into corporate management and translates theeffectiveness of Party building into a strong driving force for corporate innovation and development,demonstrating the responsibilities of a private enterprise on the journey of building a great modernsocialist country and realizing national rejuvenation.During the reporting period, the Group’s Party Committee held 13 Party Committee meetings, reviewingand carried out 5 themed Party day activities, involving approximately 1,000 participants. The PartyCommittee admitted 5 new Party members, approved 2 probationary Party members to become fullmembers, and organized special training for 4 Party activists and 5 development candidates. The Group’sParty Committee was consecutively awarded the title of “Model Party Organization with Dual Strengthsand Six Excellences” by Guangzhou authorities and honored as a “Demonstration Team on the RedCotton Pioneer List for Non-Public Economic Organizations in Guangzhou”. Successively awarded the title of Guangzhou Honored as a Demonstration Team on Model Party Organization of "Double Strengths Guangzhou "Kapok Pioneer List" & Six Excellences" OPPEIN Home Group Inc.Case: Inherit glorious traditions, stay true to public welfare missionIn June 2025, marking the 104th anniversary of the CPC’s founding, the OPPEIN Party Committeejointly organized themed public welfare Party building activities with municipal authorities andcharity foundations. Under the theme “Yangcheng Guangcai · OPPEIN Walks Together—Inherit FineTraditions, Uphold Public Welfare Aspirations, Celebrate the Party’s Birthday”, the event focused onlivelihood care, red heritage inheritance and rural revitalization, practicing the Party’s mission withconcrete actions to mark its anniversary.Case: Launching the "Party-Labor Linkage to Offer Love" Themed Charity SaleIn June 2025, the OPPEIN Group Party Committee, together with the Group Labor Union, warmlylaunched the "Party-Labor Linkage to Offer Love" themed charity sale. The activity received positiveresponses from all Party members and the masses, collecting more than 200 love items. Under thecareful organization of the Party Committee Office, the charity sale scene was lively, attracting 129person-times to participate and raising a total of RMB 2,208 in charitable funds. OPPEIN Home Group Inc. Governance Performance Indicator Unit Performance Corporate GovernanceAnnual Revenue RMB 100 million 17.332Annual Net Profit Attributable to Shareholders of the Parent RMB 100 million 19.97CompanyTotal taxes paid RMB 100 million 16.78Revenue per capita RMB 10,000 96.38Number of Board Members Person 7Of which: Independent directors Person 3 Non-independent directors Person 4Number of members on the Board of Supervisors Person 3Of which: Shareholder-appointed supervisors Person 2 Employee-Representative Person 1 Supervisors Number of executives Person 4 Of which: Male executives Person 2 Female executives Person 2Number of shareholder meetings held Times 5Of which: Extraordinary General Meetings Times 4Number of Proposals Considered by the Shareholders" Meeting Items 19Number of Board of Directors meetings held Times 14Number of proposals reviewed by the Board of Directors Items 58Board member attendance rate % 100Number of meetings held by the Compensation and Evaluation Times 2CommitteeNumber of proposals reviewed by the Compensation and Evaluation Items 3CommitteeNumber of meetings held by the Audit and Risk Management Times 4CommitteeNumber of proposals reviewed by the Audit and Risk Management Items 12CommitteeNumber of meetings held by the Strategy and Sustainable Meetings 1Development CommitteeNumber of proposals considered by the Committee on Strategy and Items 2Sustainable DevelopmentNumber of meetings held by the Nominating Committee Times 2 OPPEIN Home Group Inc. Governance Performance Indicator Unit PerformanceNumber of proposals reviewed by the Nominating Committee Items 3Total number of motions reviewed by specialized committees Items 24Number of periodic reports issued Copies 4Number of ESG reports published Copies 1Number of interim announcements published Copies 111Number of earnings briefings held Times 3Number of online views of earnings briefings Times 138,000Number of investor questions answered on the "SSE e-Interaction" Questions 27platformCash dividend per share (including tax) RMB 2.477Total cash dividend RMB 100 million 15.00Total cash dividends as a percentage of net profit attributable to % 75.14shareholders of the parent company for the period Risk and Compliance ManagementNumber of legal training sessions conducted Times 13Duration of legal training Hours 50Legal training attendance Person-time(s) 230 Business EthicsEmployee Integrity Pledge Sign-up Rate % 100Number of Anti-Corruption Inspections Times 160Of which: Suppliers Times 72 Distributors Times 88Number of legal proceedings related to unfair competition and Times 0antitrustNumber of leads received regarding complaints and reports on Cases 126business ethicsResolution rate of business ethics tip-offs % 100Number of "Integrity Culture" training sessions held Sessions 67"Integrity Culture" training attendance Person-time (s) 17,369"Integrity Culture" training coverage rate % 100 Environmental Performance Indicators Unit Performance Resource Consumption and ManagementWater Consumption Metric tons 1,694,724.25 Metric tons per million inWater consumption intensity 98.35 revenueTotal wastewater discharge Metric tons 983,959.00 OPPEIN Home Group Inc. Environmental Performance Indicators Unit PerformanceOf which: Domestic sewage Metric tons 950,795.00 Industrial wastewater Metric tons 33,164.00Natural gas consumption Cubic metersDiesel consumption LitersGasoline consumption Liters 79,965.68Purchased electricity MWh 277,304.78Electricity consumption intensity MWh/million in revenue 16.09Total energy consumption (coal equivalent) Metric tons 37,869.87 Tons of standard coal / RMBEnergy consumption intensity 2.20 million in revenueShare of renewable energy consumption % 15.18PV installed capacity MW 63.375Of which: Guangzhou Headquarters MW 0.80 Qingyuan Base MW 20.40 Tianjin Base MW 9.13 Wuxi Base MW 13.80 Chengdu Base MW 12.00 Wuhan Base MW 7.23PV generation MWh 49,644.28Of which: Guangzhou Headquarters MWh 900.50 Qingyuan Base MWh 18,073.83 Tianjin Base MWh 10,903.62 Wuxi Base MWh 15,017.29 Chengdu Base MWh 4,749.04Annual standard coal savings 4Of which: Guangzhou Headquarters 10,000 metric tons 0.03 Qingyuan Base 10,000 metric tons 0.55 Tianjin Base 10,000 metric tons 0.33 Wuxi Base 10,000 metric tons 0.45 Chengdu Base 10,000 metric tons 0.14Annual CO2 equivalent emissions reduction 5Of which: Guangzhou Headquarters 10,000 metric tons of CO2 0.06 Qingyuan Base 10,000 metric tons of CO₂ 1.15 Energy consumption calculations are based on the "General Rules for the Calculation of Comprehensive Energy Consumption" (GB/T 2589-2008) issued by the State Administration for Market Regulation and the Standardization Administration of China; The calculation coefficient for CO₂ emissions reductions from photovoltaic power generation refers to the "2023 Emission Factors for Emission Reduction Projects in the China Regional Power Grid"; OPPEIN Home Group Inc. Environmental Performance Indicators Unit Performance Tianjin Base 10,000 metric tons of CO₂ 0.86 Wuxi Base 10,000 metric tons of CO₂ 0.95 Chengdu Base 10,000 metric tons of CO₂ 0.22HCFC-22 refrigerant 6 Kilograms 60.00Refrigerant R-22 Kilograms 130 Emissions ManagementEnvironmental protection facility simultaneous operation % 100ratePollutant Monitoring Compliance Rate % 100Direct greenhouse gas emissions (Scope 1) 7 tCO2 6,437.70Of which: Guangzhou Headquarters tCO2 282.02 Qingyuan Base tCO2 2,727.83 Tianjin Base tCO2 2,407.91 Wuxi Base tCO2 393.98 Chengdu Base tCO2 474.86 Guangzhou Headquarters tCO2 151.10Indirect greenhouse gas emissions (Scope 2) 8 tCO2 147,137.97Of which: Guangzhou Headquarters tCO2 11,150.04 Qingyuan Base tCO2 53,022.33 Tianjin Base tCO2 26,178.55 Wuxi Base tCO2 27,722.21 Chengdu Base tCO2 19,105.70 Guangzhou Headquarters tCO2 12,282.74Total greenhouse gas emissions (Scope 1+2) tCO2 153,575.67Of which: Guangzhou Headquarters tCO2 11,572.97 Qingyuan Base tCO2 55,750.16 Tianjin Base tCO2 28,586.46 Wuxi Base tCO2 28,116.19 Chengdu Base tCO2 19,580.56 Guangzhou Headquarters tCO2 12,433.84 tCO2 per RMB million inTotal greenhouse gas emission intensity 8.91 revenueNOx (nitrogen oxides) emissions Metric tons 3.53SOx (sulfur oxides) emissions Metric tons 1.39 Refrigerants shall be recovered by a third-party professional organization; Scope 1 greenhouse gas emissions include direct emissions from gasoline, diesel, and natural gas; greenhouse gas emissions are calculated in accordance with the "Guidelines for the Accounting and Reporting of Enterprise Greenhouse Gas Emissions—Power Generation Facilities (2022 Revised Edition)" issued by the Ministry of Ecology and Environment of China; Scope 2 greenhouse gas emissions include indirect emissions from purchased electricity; the 2022 national electricity carbon dioxide emission factor published by the National Bureau of Statistics is used. OPPEIN Home Group Inc. Environmental Performance Indicators Unit PerformanceVOC (volatile organic compounds) emissions Metric tons 13.11Particulate matter emissions Metric tons 8.18 Waste managementTotal Non-Hazardous Waste Generated Metric tons 179,685.31Of which: Total Municipal Solid Waste Generated Metric tons 8,374.77 Total industrial waste generated Metric tons 171,310.54Amount of non-hazardous waste recycled Metric tons 171,310.54Of which: Waste paper Metric tons 3,278.91 Scrap metal Metric tons 13,537.29 Plastic waste Metric tons 1,059.33 Wood waste Metric tons 148,474.95 Scrap glass Metric tons 1,468.05 Waste leather Metric tons 18.75 Mixed-material waste Metric tons 2,222.71 Waste cardboard Metric tons 25.32 Waste foam Metric tons 11.52 Scrap rubber Metric tons 1.60 Other Metric tons 1,212.11Non-hazardous waste recovery rate % 95.34 Metric tons per RMB millionNon-hazardous waste emission intensity 10.37 in revenueTotal Hazardous Waste Generated Metric tons 2,248.01 Paint-containing wastewater (HW12Of which: Metric tons 624.16 substances) Waste paint sludge (HW12 substances) Metric tons 613.25 Empty paint cans (HW49) Metric tons 465.24 Waste contaminated materials (HW49) Metric tons 275.69 Waste adhesive (HW13) Metric tons 52.97 Rubber residue (HW13) Metric tons 12.96 Waste activated carbon (HW49) Metric tons 16.49 Paint-containing sludge (HW12) Metric tons 18.76 Waste solvents (HW06) Metric tons 125.11 Used motor oil (HW08) Metric tons 0.04 Paint-soaked rags and gloves (HW49) Metric tons 43.33Hazardous waste proper disposal rate % 100.00Total paper consumption 9 Metric tons 215.24Of which: A3 paper Metric tons 0.87 The unit weights for various types of paper are as follows: A3 paper 9.98 g/sheet; A4 paper 4.37 g/sheet; A5 paper g/sheet. OPPEIN Home Group Inc. Environmental Performance Indicators Unit Performance A4 paper Metric tons 204.34 A5 paper Metric tons 7.19 Shipping manifest Metric tons 1.39 Carbonless copy paper Metric tons 0.61 Dot matrix triplicate forms Metric tons 0.83 Practicing Environmental Protection PrinciplesNumber of new energy buses, mid-size buses, andpassenger cars purchased and leased during the reporting Units 18period Supply Chain Performance Indicators Unit Performance Sustainable ProcurementPercentage of Legally Sourced and Traceable Raw Materials for % 100PanelsENF Certification Pass Rate for Procured Panels % 100Signing rate of integrity cooperation commitment letters % 100 Supplier ManagementTotal Number of Suppliers Companies 2,089Number of suppliers in Mainland China Companies 2,081Of which: Companies Companies 7 Companies Companies 108 Companies Companies 461 South China Companies 1,356 Central China Companies 71 Northwest Region Companies 5 Southwest Region Companies 73Number of overseas suppliers Companies 8Percentage of localized suppliers % 99.62Percentage of procurement value from mainland China suppliers % 99.09Of which: Northeast Region % 0.01 North China % 7.49 East China % 23.54 South China % 54.72 Central China % 7.86 Northwest Region % 0.02 Southwest Region % 5.45 OPPEIN Home Group Inc. Supply Chain Performance Indicators Unit PerformancePercentage of procurement from overseas suppliers % 0.91Number of suppliers that have signed and comply with the company"s Companies 2,089Supply Chain Code of ConductNumber of suppliers developed and screened Companies 823Of which: Number of suppliers approved Companies 601Number of new suppliers participating in on-site inspections Companies 124Number of suppliers participating in the annual performance Companies 1,105evaluationOf which: Cabinetry Companies 413 Modular Home Furnishings Companies 348 Doors and Windows Companies 241 Bathroom Companies 43 Home Goods Companies 60Number of suppliers with sustainability certifications Companies 613Number of suppliers with quality management system certification Companies 741Number of suppliers with environmental management system Companies 406certificationNumber of suppliers with Occupational Health and Safety Companies 484Management System certificationNumber of suppliers whose contracts were terminated due to non- Companies 5complianceNumber of potential suppliers rejected for non-compliance Companies 62Number of supplier communication and training sessions Sessions 85Of which, integrity training sessions Sessions 5Number of suppliers trained Companies 132Supplier ESG training Sessions 18Number of Tier 1 suppliers that have completed ESG audits Companies 30 Product and Service Performance Indicators Unit Performance Product Quality UpgradesNumber of Product Recalls Units 0Product Recall Rate % 0External sampling pass rate % 100Number of internal quality audits Times 1Number of quality culture training sessions Times 78Hours of quality culture training Hours 48.50Number of people covered by quality culture training People 1,570 OPPEIN Home Group Inc. Product and Service Performance Indicators Unit PerformanceNumber of regulated chemicals identified under management Items 20policiesNumber of chemicals scheduled for phase-out Items 2Number of chemical substances disclosed regarding regulation, Items 18registration, and useNumber of products containing chemical substances that have been Items 15published R&D and Innovation RMB 100R&D investment 9.09 million RMB 100Product R&D Expenditures Over the Past 5 Years 50.89 millionR&D Expenditures as a Percentage of Revenue % 5.27Number of R&D personnel People 1,867Percentage of R&D staff relative to total company headcount % 10.44Number of patent applications filed annually Items 51Of which: Invention patents Items 11 Utility Model Patents Items 20 Design Patents Items 20Total number of patents obtained Items 854Of which: Invention patents Items 81 Utility Model Patents Items 442 Design patents Items 331Total computer software copyrights obtained Items 138 Customer Rights ProtectionConsumer satisfaction with basic services Points 8.59Product Quality Reputation Score 8.79Timely Resolution Rate of Complaints % 91.79Year-over-year growth rate of timely complaint resolution rate % -0.51Resolution satisfaction rate % 77.11Year-over-year growth rate of satisfaction rate % 1.94Number of participants in specialized training on customer Number ofcomplaint response participantsTotal duration of specialized training on customer complaint Hours 60responseNumber of specialized training sessions on customer complaint Sessions 27responseNumber of customer complaint response evaluations Times 27Customer Complaint Response Assessment Pass Rate % 100Number of customer data breaches Times 0 OPPEIN Home Group Inc. Product and Service Performance Indicators Unit PerformanceTotal investment in information security RMB 10,000 194.02Number of information security training and practical sessions Sessions 4Number of people covered by information security training and People 14,364practical sessions Employee and Social Performance Indicators Unit Performance Fair Employment and Equal OpportunityNumber of Child Labor Cases Identified During the Reporting Period Persons 0Number of cases of forced labor identified during the reporting period Persons 0Number of strikes/work stoppages during the reporting period times 0Labor contract signing rate % 100Social insurance coverage rate % 100Employee health check-up coverage rate % 100Total number of permanent employees Persons 17,880 Total number of female employees Persons 5,746Gender Total number of male employees Persons 12,134 Full-time entry-level employees Persons 16,512Level Full-time mid-level managers Persons 1,308 Full-time senior managers Persons 60 Total number of employees under 30 Persons 4,135Age Total number of employees aged 30–49 (excluding 50) Persons 13,213 Total number of employees aged 50 and older Persons 532 Graduate degree or higher Persons 134Educational Bachelor"s Persons 3,796Attainment Associate degree or below Persons 13,950Total number of new hires for the year Persons 5,422Total number of short-term contract employees (retirees rehired) Persons 29Total number of ethnic minority employees Persons 900Total number of veterans Persons 154Total employee turnover rate % 42.56 Female Employee Turnover Rate % 36.8Gender Male employee turnover rate % 45.27 Turnover rate for employees under 30 % 63.08 Employee turnover rate for those aged 30–49 (excluding % 35.69Age 50) Employee turnover rate for those aged 50 and older % 28.66 (excluding employees of retirement age) OPPEIN Home Group Inc. Employee and Social Performance Indicators Unit Performance Compensation, Benefits, and PerformanceNumber of employees covered by performance evaluations and incentive Persons 17,880bonusesOf which: Number of management staff Persons 1,368 Number of non-management employees Persons 16,512Percentage of employees covered by performance evaluations and % 100incentive bonusesOf which: Percentage of management staff % 100 Percentage of non-management employees % 100Employees who actually took parental leave Persons 108Of which: Male employees Persons 38 Female employees Persons 70Employee welfare fund RMB 10,000 8,600Assistance for employees in need Persons 33Visits to sick employees and staff who have lost family members Persons 10Organized cultural and recreational activities Times 44 Training and Career DevelopmentAmount Invested in Vocational Training RMB 10,000 550.80Total Number of Formal Employees Trained Attendance 670,101Total number of permanent employees trained Persons 17,880 Percentage of female employees trained % 30.36Gender Percentage of male employees who received training % 69.64 Percentage of entry-level employees who received % 54 trainingLevel Proportion of Middle Managers Receiving Training % 26 Proportion of senior management training % 20Total training hours for permanent employees Hours 575,301Of which: In-person training Hours 481,038 Online training Hours 94,263Average training hours per full-time employee Hours 32.18 Average training duration for female employees Hours 28.94Gender Average training hours for male employees Hours 29.35 Average training hours for full-time entry-level Hours 41.75 employeesLevel Average training hours for full-time mid-level managers Hours 19.2 Average training hours for full-time senior management Hours 22.26Total training hours for short-term contract employees (including rehired Hours 375retirees)Average training hours for short-term contract employees (including Hours 4.93 OPPEIN Home Group Inc. Employee and Social Performance Indicators Unit Performancerehired retirees) Occupational Health and SafetyEmployee physical examination rate % 100Number of fire and other specialized emergency drills conducted Times 70Rate of hazard identification and rectification % 100Safety risk protection training coverage rate % 100Certification rate for special operations personnel % 100Occupational hazard factor detection rate % 100Number of new occupational disease cases Cases 0Number of work-related deaths Persons 0Workdays lost due to work-related injuries Days 984.71Total number of work-related injuries Persons 139Million working hours lost Rate of decline in lost working hours % 37.83EHS training coverage rate % 100Total EHS training hours Hours 246,449Total number of EHS training participants Persons 10,586Total number of EHS training sessions Sessions 121,220 Employee Communication and GrievancesTotal number of employee suggestions received Items 1,446Number of Suggestions Adopted and Implemented (Category A) Items 848Group employee satisfaction % 80.11Group Employee Engagement % 80.41Group Employee Engagement % 81.39 Social ResponsibilityGuangzhou OPPEIN Public Welfare Foundation Supports Rural RMB 10,000 207.14Revitalization with Assistance FundsDonation Amount for Educational Assistance and Mentoring Programs RMB 10,000 333.67by the Guangzhou OPPEIN Public Welfare FoundationNumber of volunteer activities conducted Times 4Number of participants in volunteer activities Persons 40+Total volunteer hours Hours 278Group charitable donations RMB 10,000 620.46 OPPEIN Home Group Inc. OPPEIN Home Group Inc. and its subsidiaries reported the information referenced in this Instructions GRI Content Index in accordance with the GRI Standards during the period from JanuaryGRI Standards GRI 1: Foundation 2021 Sustainability Reporting Disclosure Items Chapter Standard Organization"s Sustainability About This Report Report Organization Frequency, and Contact About This Report and Information Reporting Compared to the 2024 Environmental, Methodology Social, and Governance Report, there Group"s organizational size, structure, or ownership GRI 2: Operations 2-7 Employees Employee Responsibility General and Employee Responsibility;Disclosures Employees 2-8 Informal Employees Sustainability Key Performance Indicators—Employees and Society Corporate Governance Composition Corporate Governance the Highest Governance Body Corporate Governance Governance Body Governance Highest Governance Body in Corporate Governance Managing Impact Regarding Management Impact Addressing Climate Change Governance Body in Sustainability Management OPPEIN Home Group Inc. Sustainability Reporting Disclosure Items Chapter Standard Reporting Corporate Governance; see the Group"s Issues Management Highest Governance Body Management the Highest Governance Body Management Process Responsibility Highlights of Sustainability Initiatives in 2025; Sustainable Development Strategy Management Commitments Ethics; Environmental Management Business Ethics; Protection of Policies, and 2-25 Procedures for Addressing Customer Rights; Employee Practices Adverse Impacts Responsibility Advice and Raising Concerns Responsibility Regulations Marketing Engagement Management; Corporate Governance Stakeholder Engagement Employee Responsibility Agreements Material Issues Management Sustainable DevelopmentGRI 3: Material Issues 2021 3-2 List of Material Topics Management Issues Management See the Group"s 2025 Annual Report GRI 201: Economic Generated and Distributed Performance 2016 201-2 Financial impacts of climate Addressing Climate Change change and other risks and OPPEIN Home Group Inc. Sustainability Reporting Disclosure Items Chapter Standard opportunities obligations and other retirement Employee Responsibility plans See the Group"s 2025 Annual Report Subsidies salary to local minimum wage, by See the Group"s 2025 Annual Report GRI 202: Market gender Performance in 2016 202-2 Percentage of senior management recruited from the See the Group"s 2025 Annual Report local community Social ResponsibilityGRI 203: Indirect Economic and support services Impacts 2016 203-2 Significant indirect Social Responsibility economic impacts Supplier Management; Sustainability GRI 204: Procurement 204-1 Percentage of spending on Key Performance Indicators - Supply Practices 2016 local suppliers Chain Business Ethics; Responsible where corruption risk assessments Marketing have been conducted GRI 205: Anti-Corruption 205-2 Communication and training Business Ethics; Responsible Marketing procedures Business Ethics identified and actions takenGRI 206: Unfair Competition Regarding Anti-Competitive Business Ethics Practices 2016 Behavior, Antitrust, and Monopoly Practices Business Ethics and risk management GRI 207: Taxation 2019 Management of Tax-Related Business Ethics Stakeholders GRI 301: Materials 2016 materials used Indicators – Environment OPPEIN Home Group Inc. Sustainability Reporting Disclosure Items Chapter Standard Green and Eco-friendly Commitment Production System Packaging Materials Production System Resource Utilization and Management; Sustainability Key Performance the organization Indicators—Environment Resource Utilization and Management; GRI 302: Energy 2016 Indicators —Environment Resource Utilization and Management Consumption Resource Utilization and Management; Green and Eco-friendly Commitment for Products and Services Production System organization and water as a shared Resource Utilization and Management resource Resource Utilization and Management related to wastewater discharge GRI 303: Water and Wastewater 2018 Pollutant Control; Sustainability Key Performance Indicators—Environment Resource Utilization and Management; Indicators—Environment managed by the organization Ecosystem and Biodiversity located in, adjacent to, or within Conservation areas of high biodiversity value outside protected areasGRI 304: Biodiversity 2016 Ecosystem and Biodiversity activities, products, and services Conservation on biodiversity Red List and national conservation Ecosystem and Biodiversity lists found in habitats within areas Conservation affected by operationsGRI 305: Emissions 2016 gas emissions Sustainability Key Performance OPPEIN Home Group Inc. Sustainability Reporting Disclosure Items Chapter Standard Indicators—Environment (Scope 2) greenhouse gas Sustainability Key Performance emissions Indicators—Environment Addressing Climate Change; Sustainability Key Performance Intensity Indicators—Environment Resource Utilization and Management; Sustainability Key Performance Reductions Indicators – Environment Pollutant Control; Sustainability Key Oxides (NOx), Sulfur Oxides Performance Indicators – Environment (SOx), and Other Major Gases Pollutant Control significant impacts related to waste Pollutant Control impacts related to waste Pollutant Control; Sustainability Key GRI 306: Waste 2020 Environment Pollutant Control; Sustainability Key Performance Indicators — Disposal Facilities Environment Pollutant Control; Sustainability Key Performance Indicators — Facilities Environment using environmental assessment Supplier Management GRI 308: Environmental criteriaAssessment of Suppliers 2016 308-2 Adverse environmental impacts in the supply chain and Supplier Management actions taken Employee Responsibility; Sustainability Key Performance turnover Indicators—Employees and SocietyGRI 401: Employment 2016 time employees (excluding Employee Responsibility temporary or part-time employees) Employee Responsibility; Sustainability Key Performance OPPEIN Home Group Inc.Sustainability Reporting Disclosure Items Chapter Standard Indicators — Employees and Society Employee Responsibility Safety Management System Assessment, and Accident Employee Responsibility Investigation Employee Responsibility Services Safety Matters: Worker Employee Responsibility Participation, Consultation, and Communication Employee ResponsibilityGRI 403: Occupational Safety Training for WorkersHealth and Safety 2018 403-6 Promotion of Worker Health Employee Responsibility of Occupational Health and Safety Employee Responsibility Impacts Directly Related to Business Operations Occupational Health and Safety Employee Responsibility Management System Employee Responsibility; Indicators—Employees and Society Employee Responsibility Issues Employee Responsibility; Sustainability Key Performance hours per employee per year Indicators — Employees and SocietyGRI 404: Training and 404-2 Employee skill development Employee Responsibility Education 2016 and transition assistance programs receiving regular performance and Sustainability Key Performance career development reviews Indicators—Employees and SocietyGRI 405: Diversity and 405-1 Diversity of the Governing Corporate Governance; EmployeeEqual Opportunity 2016 Body and the Workforce Responsibility GRI 406: Anti- 406-1 Incidents of Discrimination Employee Responsibility Discrimination 2016 and Corrective Actions Taken OPPEIN Home Group Inc. Sustainability Reporting Disclosure Items Chapter Standard GRI 407: Freedom of where risks to freedom of Association and Collective Employee Responsibility association and the right to Bargaining 2016 collective bargaining may exist GRI 408: Child Labor 2016 risk of significant incidents of Employee Responsibility child labor GRI 409: Forced or significant risk of forced or Employee Responsibility Compulsory Labor 2016 compulsory labor engagement, impact assessments, Social ResponsibilityGRI 413: Local Communities and development plans significant negative impacts on Social Responsibility local communities Supplier ManagementGRI 414: Social Assessment using social assessment criteria of Suppliers 2016 414-2 Adverse social impacts in Supplier Management the supply chain and actions taken safety impacts by product and Product Quality Upgrades GRI 416: Customer Health service category and Safety 2016 416-2 Incidents of non-compliance related to the health and safety Product Quality Upgrades impacts of products and services and service information and Product Quality Upgrades labeling GRI 417: Marketing and regarding product and service Product Quality Upgrades Labeling 2016 information and labeling related to marketing Responsible Marketing communicationsGRI 418: Customer Privacy regarding breaches of customer Protection of Customer Rights privacy and loss of customer data OPPEIN Home Group Inc. "Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 4— Reference Preparation of Sustainability Reports (Revised January 2026)" and "Shanghai Stock Exchange Standards Self-Regulatory Guidelines for Listed Companies No. 14—Sustainability Reports (Trial)" Dimension No. Topic Corresponding Section of This ReportEnvironment 5 Environmental Compliance Management Environmental Management Green and Eco-friendly Commitment Production System Science, Technology, Research, and Innovation Sustainable Procurement; Supplier Society Management Fair Treatment of Small and Medium- Sized Enterprises Data Security and Customer Privacy Protection Sustainable Development Management; Supplier ManagementSustainabilityGovernanceGroup Customer Service Hotline：???-???-????Group Sales Hotline：???-???-????Group O?cial Website：http://www.oppein.comGroup Investor Relations Email：oppeinir@oppein.com
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