Solid waste, chemicals, and hazardous materials should all be differentiated, controlled, reduced, disposed of, transported, stored, and recycled in line with the Group’s solid waste management principles. All relevant waste is treated and disposed of in compliance with related environmental laws and regulations. In particular, the Group strictly complies with local laws and regulations regarding sludge disposal. In order to reduce the cost of outsourced sludge collection, the Group adopts sludge drying and only engages qualified collectors licensed by the local authorities. The Group strives to optimise waste recycling and convert waste into useful resource inputs by leveraging design and technology. At the Group’s manufacturing facilities, old wooden and plastic pallets were collected, cleaned, and reused to avoid unnecessary waste generation. Factories in India achieved 100% recycling of all non-hazardous waste, while factories in Mexico and Vietnam set a target of obtaining a 90% waste recovery rate. During the reporting period, around 8,286 tonnes of industrial waste were recycled instead of being disposed of.

UL 2799 “Zero Waste to Landfill” certification signifies the Group’s dedication to waste management practices and demonstrates its efforts to minimise waste generation and promote sustainable waste disposal methods. Factories in the Longhua and Fushan were validated by UL 2799 “Zero Waste to Landfill” certification with Gold Level by achieving 99% and 97% diversion rate of waste, respectively. Furthermore, factories in Guiwu and Hengyang achieved Platinum Level for UL 2799 “Zero Waste to Landfill” with a 100% diversion rate. As of the end of the current period, these four factories are still within the valid certification period. This certification signifies the Group’s dedication to waste management practices and demonstrates its efforts to minimise waste generation and promote sustainable waste disposal methods. The Group will receive UL 2799 “Zero Waste to Landfill” certification for half of its factories by 2030.