During the Reporting Period, the Group also set energy management targets:

 Sunny Zhejiang Optics, Sunny Opotech, Sunny Automotive Optech and Sunny Optical Intelligence（Yuyao） have all obtained ISO 50001 energy management system certification. Sunny SmartLead has also established its own energy management system in alignment with ISO 50001 standards and tailored to its specific production activities. Moving forward, we will continue to refine our energy management systems and encourage our subsidiaries to carry out energy management practices in a more standardized and efficient manner.

The Group’s primary source of GHG emissions stems from electricity consumption. As such, improving our energy structure, enhancing electricity efficiency, and increasing the proportion of renewable energy are key focus areas in our ongoing energy management efforts. By the end of the reporting period, Sunny Automotive Optech had completed the installation of photovoltaic power generation systems with a total capacity of 2.5 MWp, expected to generate approximately 2.4 million kWh annually. Additionally, the Group has commenced the installation of photovoltaic systems at its Chengxi Industrial Base, which is projected to be completed by June 2025. This project will have an installed capacity of 5.5 MWp and is expected to generate over 5 million kWh annually. Meanwhile, Sunny Zhejiang Optics, Sunny Opotech, and Sunny Optical Intelligence (Yuyao) have collectively reduced carbon emissions by 119,065.4 tons through the procurement of green electricity.

During the Reporting Period, the Group carried out 13 energy conservation and consumption reduction projects, which resulted in a total of 18,878,000 KWh of electricity saving, 11,055.0 tons of carbon dioxide equivalent reduction in carbon emissions.

During the Reporting Period, we implemented water resource management enhancement projects across our subsidiaries, achieving a total water saving of 350,000 tons through measures such as water reuse and the adoption of water-saving equipment. Notably, Sunny Zhejiang Optics reduced its water consumption per 10,000 yuan of output value by 20% by reusing water, modifying wastewater pipelines for water bath equipment, and integrating water consumption data into its intelligent energy monitoring system. In 2025, the Group will continue to refine its water resource management measures, aiming to save over 350,000 tons of water.

The material-saving projects carried out by the Group During the Reporting Period are as follows:

 NOTE

1.The average low level heating capacity coefficients for diesel and gasoline used by the Group are with reference to the “Guidelines for Accounting and Reporting of GHG emissions from Electronic Equipment Manufacturing Enterprises” issued by the National Development and Reform Commission in 2015.

2.The inclusion of Sunny SmartLead in this disclosure and the increased frequency of the Group's business communication activities During the Reporting Period led to a 5.1% increase in gasoline consumption.

3.The inclusion of Sunny SmartLead in this disclosure, along with the increased production capacity of the Group's other subsidiaries and the expansion of production office areas During the Reporting Period, resulted in an 22.8% increase in electricity consumption compared to the full year of 2023.

4.During the Reporting Period, although the Group's total energy consumption increased by 22.8% compared to 2023, the Group's revenue increased  year-on-year, leading to a decrease in energy consumption intensity of approximately 6.4% compared to the full year of 2023.

5.The inclusion of Sunny SmartLead in this disclosure, combined with the increased production capacity of the Group's other subsidiaries and djusted their product structures,which has led to a 49.8% rise in packaging usage During the Reporting Period, resulted in a 14.3% increase in the density of packaging materials compared to the full year of 2023, despite year-on-year increase in revenue.

6.The inclusion of Sunny SmartLead in this disclosure, along with the increased production capacity of the Group's other subsidiaries and the expansion of production office areas During the Reporting Period, led to a 6.4% increase in water Withdrawal compared to the full year of 2023.

We fully recognize the importance of Scope 3 emissions accounting. During the Reporting Period, we completed a pilot Scope 3 emissions accounting initiative in collaboration with Sunny Automotive Optech. By 2025, we will expand Scope 3 emissions accounting to the Company and the 5 subsidiaries within the reporting scope, while actively driving the green and low-carbon transformation of the upstream supply chain.

During the Reporting Period,  the key performance indicators (KPIs) for GHG emissions of our company and its five subsidiaries are as follows:

NOTE

1. During the GHG audit in the Reporting Period, the Group also identified other emission sources of Scope 1, including fugitive emissions from

septic tanks, rust removers, high-voltage switchgear, CO2 cylinders, and CO2 /heptafluoropropane (HFC-227ea) fire extinguishers,the emissions generated are included in the results of this inventory. Furthermore,the reporting boundary has been expanded to include Shunyu Zhiling Technology. Concurrently, increased production capacity at other subsidiaries, expansion of production and office facilities, and higher refrigerant usage have collectively resulted in a70.6% year-onyear increase in Scope 1 GHG emissions compared to 2023.

2. The air conditioning refrigerant emission factors used by the Group are referenced from the 2006 IPCC Guidelines for National Greenhouse Gas Inventories（《2006年联合国政府间气候变化专门委员会国家温室气体清单指南》）, while the global warming potential values are based on the IPCC 6th Assessment Report in 2022 (AR6)（《IPCC 2022年第六次评估报告》).To enhance the accuracy and completeness of refrigerant-related GHG emission data, the Group has adopted the fugitive emission method for refrigerant emission accounting since 2022.

3. The Group’s CO？ emission factors of diesel and gasoline are referenced from the Guidelines on Greenhouse Gas Emission Accounting and          Reporting for Industrial and Other Enterprises (Trial) (《工业其他行业企业温室气体排放核算方法与报告指南（试行）》)issued by the     National Development and Reform Commission (NDRC).

4. The Group's Scope 2 GHG emissions solely originate from purchased electricity. For the market-based Scope 2 calculation, the CO2 emission factor applied to the Group's purchased electricity references the 2022 national average CO2 emission factor for electricity (excluding non-fossil energy electricity volumes from market-based transactions) as published in the "Announcement on the Release of 2022 Electricity Carbon Dioxide Emission Factors" by the Ministry of Ecology and Environment.

5. For the location-based Scope 2 GHG emissions, the CO2 emission factor applied to the Group's purchased electricity references the average CO2 emission factor of the East China regional grid as stipulated in the "Announcement on the Release of 2022 Carbon Dioxide  Emission Factors for Electricity" issued by the Ministry of Ecology and Environment.

We adhere strictly to both domestic and international standards for waste gas emission management, implementing measures such as source reduction, process control, and end-of-pipe treatment to minimize the environmental impact of gaseous pollutants.

The wastewater generated by the Group primarily stems from domestic and production activities. We strictly regulate wastewater discharge in accordance with national standards. Within the factory premises, rainwater and sewage systems are separated, with rainwater directed into nearby rivers through dedicated pipelines. Additionally, we have established a wastewater treatment system on-site and obtained the necessary permits to discharge domestic and production wastewater into the municipal sewage network, ensuring compliance. In Addition, a buffer tank is installed before wastewater enters the municipal sewage system. Regular sampling and monitoring are conducted, and in the event of non-compliant or abnormal data, discharge is immediately halted, and inspections and corrective actions are promptly initiated.