The Group rigorously complies with local laws and regulations, adhering to the principles of waste reduction, resource utilization, and harmlessness. We continuously refine production technologies to enhance resource efficiency and product quality, thereby reducing the proportion of defective products. For waste generated, we classify, collect, store, transfer, and dispose of it in accordance with legal requirements. Priority is given to qualified treatment providers capable of recycling waste, ensuring compliant treatment and resource recovery. Our ultimate goal is to achieve "zero waste to landfill."

Guided by the new development philosophy of innovation, coordination, greenness, openness, and sharing, the Group is committed to promoting source reduction and resource utilization of solid waste across its subsidiaries. This approach minimizes landfill usage and minimize the environmental impact of solid waste. Sunny Zhejiang Optics, Sunny Opotech, Sunny Automotive Optech, and Sunny Optical Intelligence (Yuyao) gained the "Zero Waste Factory" certification. During the Reporting Period, Sunny Optical Technology was among the first companies to be recognized as a "Zero Waste Group" in Zhejiang Province.

Note

1.The emission factors of sulphur dioxide  of the Group's diesel and gasoline are based on the EMFAC-HK Vehicle Emission Calculation《香港环境保护署汽车排放计算模型》).

2.The reporting scope has been expanded to include Sunny SmartLead. During the Reporting Period, increased production capacity and expanded operational facilities across the Group's subsidiaries resulted in a 24.0% rise in total hazardous waste compared to the full year 2023.

3.During the Reporting Period, the Group's hazardous waste intensity increased by approximately 24% compared with the year of 2023，however the revenue grew，Consequently, the hazardous waste intensity per revenue unit decreased by 5.9% compared to 2023 levels.

4.The reporting scope has been expanded to include Sunny SmartLead. During the Reporting Period, increased production capacity and material usage across the Group's subsidiaries resulted in a 36.2% rise in non-hazardous waste compared to the full year 2023.

5.Wastewater emission is empirically calculated at 80% of water withdrawals.