Human Resources Policy

I. Purpose

Concord New Energy Group Limited (“the Group”) respects and safeguards the legitimate rights and interests of its employees, pays attention to employee health and safety, cares about their career development, insists on building a fair and just working platform, provides well-established development paths and diversified training, creates a happy workplace, and strives to achieve the common growth of employees and the Group.

II. Applicability

This Policy applies to all employees of Concord New Energy Group Limited and its subsidiaries. The Group encourages suppliers, contractors, and business partners to collectively adhere to this Policy.

III. Employment, Equality and Diversity

The Group strictly abides by relevant laws and regulations and establishes a series of corporate management systems and measures to regulate its practices in terms of recruitment, job entry, training, promotion, incentives, working hours, holidays, benefits, and dismissal, thus fully protects the rights and interests of its employees.

Respect talents, implement a fair and equitable recruitment policy, and actively recruit high-quality talents to stimulate development of the Group.

Provide equal and diversified employment opportunities and working environment, and refuse discrimination on the basis of gender, age, ethnicity, race, origin, nationality, religious beliefs, marital and maternity status, appearance, disability or physical health.

Adhere to the principle of equal remuneration, safeguard employees from remuneration disparities based on gender or other factors, and ensure fairness and rationality in remuneration management. Conduct regular monitoring of pay gaps and implement measures committed to eliminating unjustified disparities.

IV. Development and Training

The Group attaches great importance to talents and is committed to recruiting talented people and providing them with competitive compensation packages with generous benefits.

Put high value on individual development and promotion of employees, establish a promotion mechanism based on the principles of “fairness, equity and openness”, set up a diversified position system to provide clear career development paths for all employees, allowing them to progress in their respective fields. Implement a selection model that features open and fair internal competition, certificates job qualification, and continues to improve the promotion incentive mechanism.

Set up a training system that covers the entire workforce to empower employees in all aspects through various forms of training, including training programs provided online and offline, and carried out internally and externally. Continue to enhance training and management, conduct research and analysis of training needs, assess training effects and employee satisfaction, train the trainer, internalize knowledge, and establish online learning classes to fully meet the learning needs of different levels of employees from different departments.

Establish an equity incentive mechanism to build a community of shared interest and share the fruits of corporate development with employees.

Advocate and encourage employees to get vocational qualifications and professional certifications for further career development, issue a catalog of vocational examinations and accreditation tests for reference, and provide financial support for relevant expenses incurred such as examination fees, material fees, and training fees.

V.Health and Safety

Attaching great importance to employee health and safety, the Group formulates occupational health and safety management regulations in accordance with relevant laws, regulations and industry standards, and conducts occupational health and safety education and training to safeguard the health and safety of employees. The Group takes a series of measures to manage occupational health and safety, including increasing safety investment, equipping complete safety equipment and protective gears, providing a safe working environment, conducting regular health check-ups, formulating emergency plans, and providing safety education and technical training, and occupational health training.

VI. Labor Standards

The Group strictly complies with labor and employment laws and regulations and prohibits child labor in its business operations or supply chains. All employees must be of legal working age in their country of employment.

Forced labor is not permitted and the legal rights of employees are protected. Corporal punishment, threats of violence or other forms of physical, psychological, or verbal abuse as a method of work execution or exercise of control are prohibited.

Commit to providing a minimum wage that is no less than the legal requirement to meet the basic living needs of our employees.

Prioritize work-life balance for employees. In cases where overtime is necessary due to business needs, the Group commits to strict working hour monitoring and standardized overtime management to ensure compliance with legally prescribed maximum working hours. Efforts will be made to minimize unnecessary overtime through optimized workflows and rational allocation of human resources.

Safeguard employees’ entitlement to paid annual leave in accordance with the law. Employees become eligible for paid annual leave after completing one consecutive year of service and shall receive the same remuneration during leave as during normal working periods.

In the event of mass terminations due to operational requirements, the Group will conduct the process in full compliance with applicable legal regulations and report to the relevant competent authorities.

VII. Employee Care

Provide humanistic care to employees and create a happy and comfortable workplace.

Carry out diversified employee activities, improve employee welfare, promote communication in the workplace, establish an open and friendly corporate culture of solidarity and mutual assistance, and build a sense of belonging and happiness in the workplace.

Employees are entitled to social insurance in accordance with the law, and enjoy a variety of benefits such as supplementary medical insurance, employee health examination and holiday gifts provided by the Group. The Group pays attention to the improvement of the office environment and conducts safety inspections to foster a comfortable and safe office environment.

VIII. Employee Communication

The Group provides a variety of well-run channels to promote communication and resolve grievances, and establishes an efficient handling mechanism.

Regular employee satisfaction surveys are conducted to identify the needs of employees and to discuss employee rights and welfare matters, with a view to protecting employee rights and interests, promoting harmonious labor relations, and creating a friendly working environment.

Establish communication channels with employee representatives for regular discussion of working conditions, health and safety, and employee benefits.

IX. Responsibility Management in Supply Chains

The Group adheres to the policy of responsibly managing its supply chains, urges suppliers and contractors to comply with employment and labor laws and regulations and fulfill their corresponding responsibilities by signing legally binding contracts and agreements.

X. Policy Review

The Group will conduct necessary reviews of the Policy at regular intervals.