Environmental, Health, and Safety (EHS) Policy

GigaDevice is committed to the core philosophy of sustainable development and prioritizes Environmental, Health and Safety (EHS) in its business activities. To systematically manage EHS-related risks and seize development opportunities, effectively safeguard the well-being of all employees, fully commit to corporate social responsibility, and strengthen supply chain resilience and sustainable competitive advantage, this Environmental, Health and Safety Policy (hereinafter referred to as the "EHS Policy") is hereby established.

I. Commitment, Governance, and Scope of Application

1.Top Management Accountability: The Board Strategy and Sustainability Committee of the Company bears ultimate supervisory and decision-making responsibility for EHS strategic planning, major risk management, and long-term performance objectives. The executive management team is responsible for the formal approval of this Policy, prioritizing resource allocation, ensuring effective implementation throughout the entire process, and promoting the deep integration of EHS requirements into all aspects of business decision-making. Managers at all levels are directly accountable for EHS initiatives within their respective units, must lead by example in implementing EHS management requirements, and are accountable for EHS performance in their respective areas.

2.Compliance and Beyond Compliance: We are committed to ensuring compliance with laws, regulations, standards, and relevant permit requirements relating to environment, occupational health and safety in all countries and regions where we operate. On this basis, we proactively adopt internationally recognized standards and industry best practices, and continuously strive to achieve EHS performance that exceeds legal requirements.

3.Scope of Application: This Policy applies to the Company and its subsidiaries, affiliates and branches, and to all their employees (including directors, management, regular employees, and agency/temporary workers), as well as contractors, agents, prospective acquisition targets, customers and other partners. We will promote and ensure the effective adoption and implementation of this Policy's principles across the entire value chain through contractual requirements, communication and training, capacity building, and monitoring and auditing.

II. Occupational Health and Safety – Prevention as the Core Principle with Full Participation

1.Safety Culture Development：Foster a proactive safety culture centered on complying with laws and regulations, preventing employees from injuries and health damage, and providing employees with a safe and healthy working environment. Emphasize management's leading-by-example role and encourage active participation in EHS matters by all personnel. Strengthen EHS awareness and risk-identification capabilities through regular communication, case sharing, experience exchange and other methods.

2.Employee Participation and Rights Protection:

• Establish and maintain formal mechanisms for employee participation in EHS matters to ensure that employees and their representatives can effectively contribute to EHS policy development, risk assessment, hazard identification, and related consultation, dialogue and oversight.

• Safeguard employees' core EHS rights, including but not limited to: the right to safe and hygienic working conditions; the right to refuse to work under conditions identified and assessed as unsafe; and the right to stop work and evacuate immediately when facing an imminent threat to personal safety, without suffering any form of retaliation or discrimination.

• For women and workers with disabilities, ensure compliance with national and local regulations on prohibited work and special protection periods, and provide dedicated health and safety measures tailored to their physiological and psychological needs.

3.Systematic Risk Management: Establish and effectively operate an occupational health and safety management system, continuously improving hazard identification, risk assessment and control mechanisms. Adhere to the risk control hierarchy of Elimination, Substitution, Engineering Controls, Administrative Controls, and Personal Protective Equipment (PPE), prioritizing elimination or reduction of risks at the source. Regularly conduct comprehensive risk assessments, develop targeted control plans for high-risk operations, and implement a work permit system.

4.Occupational Health Services: Provide employees with comprehensive preventive occupational health services, including, but not limited to, regular health check-ups; ergonomic assessments of work environments and workstation optimization; and rational planning of office layouts to ensure a healthy and comfortable workplace for all employees.

5.Safety Facilities and Employee Welfare: Provide and continuously maintain a safe and hygienic working environment. Ensure that production equipment and facilities comply with applicable safety standards; equip facilities with comprehensive fire-protection systems, emergency response equipment, and first-aid facilities; ensure the provision of clean/potable drinking water and adequate, hygienic sanitation facilities (including washrooms and toilets); and reasonably provide welfare facilities such as employee rest areas and tea rooms.

III. Environmental Protection and Climate Action – Responsible Management, Response to Challenges

1.Environmental Management System (EMS): Establish, implement, and maintain an environmental management system to systematically identify environmental aspects, compliance obligations, and related risks and opportunities in operations, and to integrate environmental management requirements into decision-making across all business processes, including product design, manufacturing, and supply chain management.

2.Climate Strategy and Information Disclosure: Formulate a climate strategy and commit to setting and pursuing science-based emission reduction targets. Comprehensively manage climate-related physical and transition risks. Regularly disclose progress and performance on climate actions and the implementation of the climate strategy to stakeholders through channels such as sustainability reports and the Carbon Disclosure Project (CDP) climate change questionnaire.

3.Water Resources Management: The company is committed to implementing responsible water management across its operations, systematically managing water withdrawal and consumption, optimizing daily water use and efficiency, promoting water-saving behaviors, and reducing avoidable water losses. Through scientific management and water conservation measures, the company supports the protection of freshwater ecosystems. The company will engage and collaborate with employees, suppliers and other stakeholders to raise awareness and build capability in water management.

4.Pollution Prevention and Resource Circularity: Adhere to the principle of source reduction, process control, and end-of-pipe treatment, and commit to minimizing or eliminating the generation and emission of pollutants at source. Prioritize waste minimization, reuse, and recycling—and promote green procurement and clean production technologies. Strictly control the use of hazardous substances, and ensure the safe handling, transport, storage, use, recovery, recycling, and disposal of chemicals, wastes, and other potentially hazardous materials. Products shall comply with applicable hazardous substance regulations, industry standards, and customer requirements.

5.Resource Efficiency Improvement and Ecological Protection: Continuously improve resource efficiency for energy, water and raw materials; set and achieve annual resource conservation targets; and actively increase the use of renewable energy. For new construction, expansion and renovation projects, as well as routine operations, implement comprehensive biodiversity and ecosystem impact assessments and apply the mitigation hierarchy (avoidance, minimization, restoration, offsetting) to prevent and mitigate adverse impacts on surrounding biodiversity and ecosystems.

IV. Emergency Preparedness, Response, and Business Continuity

1.Emergency Plan Development and Update: Develop comprehensive and actionable emergency response plans for potential emergencies such as fires, explosions, natural disasters and public health incidents, clarifying the emergency organizational structure, roles and responsibilities, response procedures, and control measures. Regularly review and update emergency plans to ensure alignment with actual risk conditions. Conduct a post‑incident review within 72 hours of the completion of response operations, clarifying responsibility implementation and improvement items during the emergency response process, and produce closed-loop reports.

2.Emergency Drills and Capacity Building: Regularly organize company-wide emergency drills with participation from all employees to test the effectiveness and operability of emergency plans. Provide specialized training for emergency response teams to ensure they have rapid response and incident-handling capabilities. Establish an emergency supplies reserve system to ensure adequate stocking and regular maintenance of emergency equipment and supplies.

3.Business Continuity Integration: Integrate major EHS emergency management into the Company's Business Continuity Management (BCM) system. Identify EHS‑related disruption risks to key business functions and processes, and develop emergency recovery and business recovery plans. Ensure that, in the event of an EHS incident, key business functions can recover promptly to predefined recovery objectives, minimizing impacts on employee safety, company assets and reputation.

V. Supply Chain EHS Management

1.EHS Requirements Communication and Implementation: Efficiently deliver the company's EHS and green product policies, objectives, and applicable regulatory requirements to internal departments and supply chain partners through diverse channels and mechanisms, driving deep integration into daily operations and business practices, ensuring management requirements are effectively enforced.

2.Supply Chain EHS Due Diligence: Establish EHS access standards for suppliers and conduct EHS risk due diligence on upstream and downstream enterprises in the supply chain in accordance with the Supply Chain ESG Management System, the Supplier Code of Conduct, and relevant supplier management systems, focusing on identifying EHS hazards in high-risk regions and suppliers, and prioritizing major risk points.

3.Supplier EHS Capacity Building and Auditing: Promote suppliers' EHS management capabilities through EHS training, technical guidance, and regular assessments or audits. Require suppliers to establish and maintain EHS management systems commensurate with their production and operational risks, and to regularly submit EHS‑related operational records.

4.Continuous Improvement and Closed-Loop Management: For issues identified in supplier EHS audits, require suppliers to formulate and implement corrective and preventive actions (CAPA), and establish mechanisms for tracking, verification and closure of corrective actions. Collaborate with core suppliers on EHS, jointly set supply-chain sustainability targets, and drive improvements in EHS performance across the value chain.

VI. Management Systems, Performance, and Continual Improvement

1.Target Setting and Performance Monitoring: Set EHS performance targets and indicators that are specific, measurable, achievable, relevant and time‑bound (SMART), covering key areas such as occupational health and safety, environmental protection and climate change. Establish an EHS performance monitoring and data‑analytics system to regularly monitor progress against targets, promptly identify deviations, and implement corrective and preventive actions (CAPA).

2.EHS Training and Competency Development: Provide regular mandatory EHS training for all employees (including management, frontline staff, etc.) and contractors, tailored to their roles and associated risk levels. Ensure employees acquire the necessary EHS knowledge and skills for their positions and are capable of risk identification, assessment, and emergency response.

3.Incident Management and Lessons Learned: Establish and strictly enforce an EHS incident reporting system. All accidents, occupational illnesses and near-misses must be reported immediately; concealment, omission or delay is prohibited. Conduct root cause analyses (RCA) for all EHS incidents, implement corrective and preventive actions (CAPA), share lessons learned across the organization, and take measures to prevent recurrence of similar incidents.

4.Internal Audit and Management Review: Regularly conduct internal audits of the EHS management system to assess its adequacy, suitability and effectiveness, drive continual improvement of occupational health and safety performance, and reduce the incidence of work-related injuries, occupational diseases and related incidents. Obtain and maintain third-party certification to ISO 45001 and ISO 14001. Top management shall periodically conduct EHS management reviews to evaluate EHS performance, progress toward objectives, changes in internal and external issues, and recommendations for improvement, ensuring the EHS management system is continually improved.

VII. Communication and Transparency

1.Internal Communication and Promotion: Through multiple channels such as employee handbooks, internal training, bulletin boards, and the company's official social media accounts, clearly communicate the content of this policy and relevant EHS requirements to all employees, ensuring the policy is easily accessible and easy to understand. Establish EHS opinion feedback channels (gd-info@gigadevice.com) and encourage employees to propose suggestions for EHS improvements.

2.External Communication and Information Disclosure: Consult external Key Stakeholders such as investors, customers, communities, and regulatory authorities when formulating or implementing EHS policies. While respecting business confidentiality, regularly disclose EHS performance, goal achievement status, and progress on major EHS issues to external key stakeholders through channels such as sustainability reports, corporate official websites, investor communication meetings, and responses to CDP questionnaires.

This policy is overseen by the Board Strategy and Sustainability Committee, which will recommend revisions as needed based on updates to laws and regulations, business developments, results of internal and external risk assessments, and other factors to ensure the policy remains applicable, adequate, and effective.