Upholding integrity in business operations, adhering to business ethics, and complying with all applicable laws and regulations are the core principles consistently upheld by the board of directors and management of Handa Industries.Guidelines Integrity is the cornerstone of Handa's business and is deeply ingrained in its corporate culture and systems. We are committed to establishing a compliance management system that conforms to industry best practices through continuous resource investment, and to implementing compliance management end-to-end in our global operations and processes to maintain a fair and competitive market environment and ensure the company's steady development.

We have established a four-tier compliance management system comprising the Board of Directors, Management Team, Compliance Department, and Business Units. In 2025, we continued to improve our compliance system, issuing a series of documents, including the "Red Line Management System," to clarify compliance requirements and codes of conduct. Simultaneously, we formulated localized compliance management rules for the countries where our overseas operations are located, ensuring that our global operations fully comply with local labor, environmental, tax, and trade regulations.

In our external collaborations, we firmly oppose commercial bribery, corruption, and unfair competition, and maintain a "zero-tolerance" attitude towards any behavior that violates business ethics. In 2025, we signed the "Sunshine and Integrity Agreement" with all our suppliers, customers, and partners, explicitly incorporating the requirements for clean cooperation into our business contracts. Simultaneously, we have established a multi-channel anonymous reporting mechanism to encourage internal and external stakeholders to monitor and report any violations.

Handa Industries Conducts Training on Contract Law Practice and Integrity Building

In January 2025, Handa Industries held a special training session on corporate contract law practice and integrity building. The training was led by the Supply Chain Management Department and attended by the company's chairman, vice chairman and many senior managers. Domestic and foreign employees participated in the training both online and offline.

The training focused on the entire life cycle management of contracts, systematically explaining key aspects such as contract definition, signing and performance, risk prevention and control, and conflict resolution. It incorporated typical case studies to enhance employees' legal awareness and risk control capabilities in practical business operations. Simultaneously, the training included a special session on integrity building and external communication guidelines, clarifying the integrity norms and behavioral bottom lines that employees should adhere to in their daily work.

Following the training, all employees signed the "2025 Handa Industries Integrity and Honesty Agreement" both in person and online, pledging to uphold the principles of honesty, integrity, fairness, and impartiality in their work. This training and agreement signing are concrete measures taken by Handa Industries to promote compliant governance, improve internal control mechanisms, and strengthen business ethics, providing institutional guarantees for the company's stable operation and sustainable development.

Integrity First, Safeguarding Overseas Projects – Handa Industries Holds Special Meeting on Integrity in International Projects

On October 11, 2025, Handa Industries held a special meeting on integrity for its Phase II investment project in Bangladesh and its photovoltaic project at its factory in Myanmar. Relevant personnel from the Wuxi headquarters attended the meeting in person, while overseas teams participated simultaneously via video conference. The meeting focused on specific arrangements for integrity risk prevention and control in the two overseas projects, aiming to ensure that international business proceeds in a compliant and transparent manner.

At the meeting, the Legal Department systematically explained the company's specially formulated "Internal Integrity Management Measures for the Bangladesh Phase II Investment Project" and "Internal Integrity Management Measures for the Myanmar Factory Photovoltaic/Energy Storage/Steel Structure Reinforcement Series Projects." Both measures clearly regulate key aspects such as project bidding, material procurement, and project acceptance, requiring all project participants, regardless of position or whether they are located domestically or internationally, to strictly adhere to disciplinary red lines. Subsequently, all attendees signed the "Integrity Agreement" both on-site and online. The company will subsequently sign similar agreements with project partners, suppliers, and other third parties to build a comprehensive integrity management system covering the entire project chain.

To enhance the effectiveness of oversight, the company has simultaneously launched a dedicated hotline and email address for reporting violations, and established a rapid response mechanism to ensure timely investigation and handling of any misconduct. Handa Industries stated that it will continue to improve its overseas project oversight mechanism, using integrity as a foundation for its international development.