1 Purpose

Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. upholds the core values of "honesty and optimism, loyalty and dedication, struggle orientation, partner accomplishment, pioneering and innovation, and co-creation of brilliance", and operates with integrity and in compliance with regulations. To maintain a fair and healthy business environment, protect the rights and interests of the company and its shareholders, strengthen internal governance, and ensure the sustainable development of the company, this Diversity, Fairness, and Inclusivity Policy is formulated in accordance with laws, regulations, and regulatory requirements, while taking into account the actual situation of the company. The company aims to foster a diverse, fair, and inclusive employment philosophy among employees and stakeholders through clear norms and strict management, providing a solid foundation for the healthy development of the company and the industry.

2 Scope of Application

This policy applies to all business and operational activities of Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. and its subsidiaries. It encourages all directors, senior management, and employees of the company, as well as all partners, including but not limited to suppliers, professional consultants, and other stakeholders, to adhere to this policy, jointly promoting equal employment opportunities and fostering a workplace culture that values diversity and inclusivity.

3 Definitions and Forms

Employee diversity refers to the variety of employees within an organization in terms of gender, age, race, cultural background, religious beliefs, sexual orientation, disability status, education level, work experience, etc. It aims to ensure that the organization encompasses differences, thereby promoting innovation and more multidimensional ways of thinking. Fairness refers to the equal opportunities and treatment that employees should receive in their work. The law protects individuals from discrimination, and its core is to ensure fairness in recruitment, promotion, compensation, training, and other aspects, rather than simply "equalitarianism". Inclusivity refers to the treatment of employees with tolerance, where their opinions, viewpoints, and experiences should be fully respected. The organization should ensure that the work environment and culture support and unlock the potential of employees. The company will promote workplace diversity, fairness, and inclusivity through the following measures (including but not limited to):

(1) Build a global talent magnet and implement a "diversified talent reserve plan", including gender diversity, ethnic diversity, and nationality diversity, to provide employment opportunities for talents from diverse backgrounds such as different ethnic groups, genders, and cultures;

(2) Implement a standardized evaluation system in the recruitment process to eliminate interference from non-competence factors through structured interviews, ability assessments, and other means;

(3) At the career development level, a "dual-track" promotion system is implemented, combining quantitative performance evaluation with personalized development plans;

(4) Implement job value assessment and market benchmarking mechanisms to determine compensation and benefits, ensuring fairness in distribution, while integrating the concept of equality throughout the employee career cycle;

(5) Provide comprehensive training and career development opportunities for employees, offer leadership training courses to those who are interested, and ensure that employees can continuously enhance their professional skills and achieve personal growth;

(6) Foster a diverse, equitable, and inclusive work environment, prohibit any form of discrimination, harassment, and exclusion, and educate employees on the concepts of diversity, equality, and inclusivity;

(7) Provide necessary facilities and policy support for special groups or employees with special needs (such as pregnant employees and employees with disabilities), and strive to create an accessible working environment;

(8) Establish a monitoring and evaluation mechanism to assess the effectiveness of policy implementation through employee satisfaction surveys, internal assessments, and other means, and make necessary adjustments and improvements based on the results;

(9) Information transparency ensures that stakeholders have a comprehensive, timely, and accurate understanding of the company's practical achievements and strategic planning in the areas of diversification, fairness, and inclusiveness through institutionalized and systematic disclosure mechanisms. ‌

4 Management Structure

The Board of Directors of the company supervises the formulation and implementation of policies on diversification, fairness, and inclusiveness, ensuring that these policies comply with laws, regulations, and corporate governance requirements.

The audit committee oversees matters related to diversity, fairness, and inclusivity, reviews and supervises the effectiveness of the diversity, fairness, and inclusivity management system and related policies, and reports to the Board of Directors.

The company's Board of Directors has established a dedicated standing committee for diversity, fairness, and inclusivity, which is responsible for employee diversity, fairness, and inclusivity audits, receiving and handling reports, and conducting investigations. The committee regularly reports audit results and report status to the audit committee, ensuring the effective implementation of the company's diversity, fairness, and inclusivity policies.

The Regulatory Affairs Office is responsible for implementing the disciplinary decisions regarding the relevant personnel to ensure thorough accountability.

Each functional department is responsible for ensuring diversity, fairness, and inclusivity among its employees, supervising compliance with company policies by departmental staff, and collaborating with the Audit Department and relevant departments to promote diversity, fairness, and inclusivity among employees.

5 Reporting Channels

The company provides independent and multi-channel whistleblowing methods to encourage employees, partners, and the public to report illegal and irregular behaviors. If employees, customers, suppliers, visitors, the public, and other stakeholders experience harassment, discrimination, bullying, and other harm during work activities related to the company, or witness others experiencing the same, they can report it through the public reporting channels. The specific reporting channels are as follows:

(1) Jingsheng WeChat official account;

(2) Reporting hotline: 0571-89905290 (extension 8081);

(3) Report email: ia@st3985.cn;

(4) For complaints or reports via letter or in person, please send them to the Audit Department of Zhejiang Jingsheng Mechanical & Electrical Co., Ltd., located at No. 500, Shunda Road, Linping District, Hangzhou City, Zhejiang Province.

Principle: The company will keep all information confidential throughout the investigation process and afterwards, and shall not disclose any information related to the reporter and the investigation without authorization (except for information that has been publicly announced). Those who violate regulations by leaking information or retaliating will be subject to disciplinary measures such as dismissal or termination of labor contracts. If they violate the law, they will be referred to the judicial authorities.

Handling Mechanism: Upon receipt of relevant reports or complaints, the Human Resources Service Desk is responsible for handling them, conducting investigations, and providing feedback within 7 days. If the case involves the company's management or is of particular significance, it shall be reported to the Human Resources Department for investigation and handling. The Internal Audit Department shall supervise and evaluate the process.

Rewards and Punishments: The company will reward the reporter based on the relevance of the evidence provided, the consistency between the reported situation and the facts, the reporter's cooperation during the verification process, and the extent of loss recovery. The company reserves the right to take appropriate action against those who make malicious and unfounded reports.

Disciplinary Measures: The company will impose sanctions on employees for violations of laws and regulations based on the nature and severity of the misconduct. If they are suspected of a criminal offense, they will be referred to the judicial authorities in accordance with the law. Moving forward, the company will take further measures to strengthen the review and supervision of high-risk business activities, and regularly assess and update internal control and compliance procedures to continuously improve compliance management.

Subsidy Measures: The company establishes and strictly implements a whistleblower protection and subsidy system. For employees who experience unfair treatment or actual losses due to whistleblowing, the company will immediately restore their legitimate rights and interests, provide full compensation, and offer special subsidies and career development support as appropriate.

6 Supplementary Provisions

If there are any matters not explicitly stated in this policy, or any terms and conditions herein conflict with current national laws, regulations, and government normative documents, such national laws, regulations, and government provisions shall prevail.

This policy is formulated, revised, and interpreted solely by Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. It shall come into effect from the date of its official release.

The company will regularly review this policy to ensure timely adjustments and updates.

This policy is written in Chinese as the official language, and an English version is also prepared for international business reference. In case of any ambiguity between the Chinese and English texts, the Chinese version filed by the company shall prevail.