The Company has established an environmental management structure with the Board of Directors as the highest decisionmaking body. The "Environment, Health and Safety (EHS) Committee", which consists of board members, senior managers,technical specialists, and employee representatives, together with the relevant technical teams, provides support and supervision for the environmental management of its companies.Our environmental management structure has clear responsibilities. The EHS department of the Company's Production and Construction Management department is specifically responsible for environmental management-related work. By implementing an environmental management system, advocating environmental certification, and enhancing environmental awareness, we minimize the impact of our Company on the environment.

We not only strictly comply with the requirements of environment-related laws and regulations in the places where it operates but also establish a library of laws and regulations such as Environmental Policy and Environmental Monitoring Management, covering all employees, contractors, or suppliers, partners, and other stakeholders.

In 2025, the Company did not receive any significant environmental violation penalties (Environmental Liability Accrued at Year End is 0). The emissions of waste gas and wastewater were in compliance after treatment or reuse. There were no instances of environmental monitoring exceeding legal limits, and no illegal activities were detected. All waste materials were disposed of or recycled in accordance with regulations.

Environmental Compliance Assessment

We established a library of applicable laws and regulations, conduct compliance analysis, and regularly update and disseminate them. We conduct regular environmental reviews of each factory and require each factory to conduct its own internal review and implement improvement measures to ensure that all operating factories follow approved procedures and conduct.

Environmental Management System

The group formulated the Whole Process Environmental Management Guidelines, Environmental Compliance Management Guidelines and other systems to standardize environmental management throughout the entire process of construction projects, and to clarify the environmental compliance management workflow of production and operation activities.  In addition, the Company pays great attention to the operation and reliability of environmental management measures, and adopts monthly and quarterly cyclical inspections, combined with unscheduled video inspections to monitor the environmental compliance management during the operation of each plant, to continuously improve the level of environmental management. The group integrates a combined approach of external and internal audits to continuously increase the coverage of external certifications. By the end of 2025, the coverage rate of ISO 14001 environmental management system certification reached 82%. The remaining units undergo internal audits conducted by the Group's EHS department for the three management systems.

Example of ISO 14001 Environmental Management System Certification

Environmental Emergency Management System

To effectively prevent the occurrence of environmental emergencies and improve the ability to deal with sudden environmental pollution accidents involving public crises, the Group's factories carry out environmental risk assessments under the relevant laws and regulations of countries and the places of operations, analyse and predict the existence of potential dangerous or harmful factors, determine the type of potential accident and the degree of harm and the scope of influence, and formulate environmental emergency response plans with the risk prevention measures.The Company established emergency mechanisms with local governments and communities, and conducted regular drills. In addition,to further enhance our capability to cope with environmental risks, some of our factories have responded to the local government's request to purchase environmental pollution liability insurance.

Environmental risk assessment and response initiatives

• For new construction projects, we hire professional third-party institutions to carry out environmental risk assessment, and prepare emergency environmental contingency plans, and file them according to the requirements of the ecological and environmental authorities in the place of operation.
• Emergency drills for environmental emergencies are conducted regularly to ensure the feasibility of the plans.
• Environmental pollution liability insurance can help enterprises effectively diversify some of their risks and quickly resume normal production and operation if an environmental accident occurs. It can also strengthen the supervision and management of the insurance company to protect the environment and prevent environmental damage.

Environmental Protection Awareness Enhancement
The Company carries out various trainings and awareness activities to promote environmental protection concepts among employees.In 2025, YKA achieved 100% coverage and completion rates for environment-related training. Training topics included the management of automatic monitoring facilities for wastewater and waste gas, hazardous waste management, compliance management, case studies of government inspections, general solid waste management, environmental performance grading management under heavy pollution weather conditions, leak prevention and control, environmental management systems, and water conservation promotion. A total of 428.9 training hours were delivered throughout the year, reaching 43,795 participants.

The Company is fully aware of the value, importance and necessity of sustainable development, that is, meeting current social needs without compromising the social needs of future generations so that they can enjoy the same resources as we do today. The Company is committed to minimizing the impact on the environment in all its production and operation activities. That's why we have an environmental policy, committed to minimising the impact on the environment in all our production and business activities.

Attachment: Environmental Policy.PDF