From June 13th to 19this the 32nd National Energy Conservation Publicity Week of China, with the themeof " Green andlow-carbon, energy saving first". and June15th is the National Low Carbon Day, the theme of which is"Implementing the 'carbon peaking and carbon neutrality' actions and buildinga beautiful homeland".

On the day, Luxshare held relevant theme activities with local Economic Development Authority in the factory area to promote ecological civilization, green development concepts and knowledge of energy saving and carbon reduction to employees. At the event site, we handed out brochures such as "Energy Saving and Low Carbon 24 Hours", "Have You Started Low-Carbon Working", "Take My Energy Saving Actions, Embrace Low-Carbon New Life", etc. invited employees to share their low-carbon lifestyle at home, office, eating, or traveling, and advocated low-carbon life commitment signatures after sharing the group's work results in recent years and long-term planning in terms of energy saving and green and low-carbon development.

In recent years, Luxshare has adhered to the concept of green, circular and low-carbon development. Through measures such as purchasing clean energy, vigorously building rooftop photovoltaics, and exploring energy storage projects, the Company has reduced the total energy consumption, increased the use of clean energy and comprehensively and scientifically carried out energy conservation and carbon reduction work, maximizing the climate and environmental benefits brought by emissions reduction and devoting ourselves to building green factories and realizing green manufacturing in the entire life cycle of our industrial chain. At present, 4 subsidiaries have obtained the National Green Factory title, and 2 have obtained the Provincial Green Factory title. At the same time, in January 2022, we submitted the commitment letter of setting science based carbon targets to SBTi. The formulation of medium and long-term emissions reduction targets is expected to be completed and verified by SBTi by the end of 2023. Our view is to achieve carbon neutrality by 2050.

In order to build a full life cycle low-carbon supply chain management, promote the supply chain to take more active and effective actions against climate change, and enhance the supply chain's professional capabilities in carbon management, Luxshare held a training of "Investigation and Quantification of Low-Carbon Supply Chain Management in the Background of Carbon Neutrality" for the core suppliers on April 29, 2022, focusing on the low-carbon strategies and paths of enterprises under the carbon neutral policy, the key points of carbon inventory data collection under low-carbon supply chain management, etc. Nearly 2,000 people from core suppliers participated in the professional and in-depth discussions, laying a solid professional foundation for subsequent work of energy conservation, emissions reduction, carbon management and realization of the dual-carbon goals.

In 2021, we increased investment in energy-saving renovation projects. Through measures such as adjusting the energy structure, adopting advanced technologies, improving energy consumption systems and intelligently managing energy consumption, we saved a total of 49,480Mwh of energy throughout the year, which was equivalent to a reduction of 31,088 tCO2e greenhouse gas emissions. At the same time, we used 271,197Mwh of clean energy in 2021, which is equivalent to reducing greenhouse gas emissions by about 177,871 tCO2e. In 2022, we will continue to increase the construction of the green manufacturing system, increasing the use of clean energy, vigorously promoting energy-saving and emission-reduction projects within the Company and targeting at an energy-saving rate of 8%.

In order to enhance the energy-saving awareness of all employees, we hereby propose:

1. Do a good job in the management of electricity consumption behaviors. Make full use of natural lighting, reasonably reduce electricity consumption for lighting, and turn off computers, printers, air conditioners, water dispensers and other electrical equipment in non-working hours when the office is vacant or unmanned to reduce standby energy consumption. Reduce elevator usage and encourage the use of stairs.

2. Strengthen equipment operation management. Set the temperature of the air conditioner reasonably.

Except for areas with special temperature requirements, the temperature of the indoor air conditioner should not be set lower than 26℃ in summer nor higher than 20 ℃ in winter, and keep doors and windows closed during AC operation. Regularly maintain key electrical facilities and equipment such as air conditioners, elevators, water pumps and network computer rooms to maintain good performance of facilities and equipment.

3.Speed up the replacement of high-efficiency equipment. Apply green, low-carbon, advanced and applicable new technologies and new products, and reasonably replace low-efficiency electricity facilities and equipment. Promote the integrated application of solar energy and other renewable energy sources with buildings and promote projects such as air sources and ground source heat pumps according to local conditions. Optimize the control strategy of electrical equipment, promote intelligent management, and improve the efficiency of electrical energy use.

Green and low-carbon, energy saving first. Let’s act together!