As the global energy transition continues to accelerate, green and sustainable development has become a key driver of long-term business growth. Shenzhen KSTAR Science and Technology Co., Ltd (Stock Code: 002518) has released its 2025 Environmental, Social and Governance Report, highlighting the company's progress in corporate governance, technological innovation, green operations, employee care, and social responsibility.

Founded in 1993, KSTAR is a comprehensive solution provider in the smart energy sector. The company specializes in the R&D and manufacturing of UPS systems, precision cooling and modular data centers, batteries, PV inverters, energy storage solutions, and EV charging products. Today, KSTAR operates 2 R&D centers and 8 manufacturing bases, with products and services reaching more than 180 countries and regions worldwide, supported by over 4,500 employees. KSTAR has ranked first in domestic UPS market share for 24 consecutive years (source: CCID Consulting) and has been among the top five global UPS suppliers for five consecutive years (source: Omdia).

Recognized ESG Performance

During the reporting period, KSTAR continued to strengthen its ESG management system and achieved solid results across several recognized ESG rating frameworks. The company received an AA rating from Wind ESG, ranking 6th out of 408 companies in its industry, and an AA rating from Huazheng ESG Rating, ranking 7th out of 334 companies. KSTAR also earned a Silver Medal from EcoVadis, with a score of 70, placing the company among the Top 15% of rated companies.

These results reflect external recognition of KSTAR's ongoing commitment to sustainable development and responsible business practices.

Strengthening Governance for Stable Growth

KSTAR continues to improve its corporate governance structure, enhance risk management, and strengthen compliance practices to support transparent and resilient operations.

During the reporting period, the company maintained active communication with investors through 25 on-site research visits, more than 10 brokerage strategy meetings, and 2 online collective performance briefings. KSTAR also issued 4 periodic reports and 118 interim announcements, further improving the quality and transparency of information disclosure.

In terms of business ethics and compliance, KSTAR continued to reinforce its anti-corruption and integrity management mechanisms. During the reporting period, the company received zero business ethics-related complaints, while 100% of directors received anti-corruption policy training.

Driving Innovation and Enhancing Product Quality

KSTAR regards technological innovation and quality management as core drivers of long-term development. In 2025, the company invested RMB 294 million in R&D, with cumulative R&D investment exceeding RMB 1.855 billion over the past decade. During the year, KSTAR obtained 71 newly authorized patents, bringing its total number of valid patents to 437.

The company also actively contributes to industry standardization, having led or participated in the development of 13 national standards, 116 industry standards, and 15 association or group standards.

To further strengthen product quality and operational resilience, KSTAR has obtained multiple management system certifications, including ISO 9001 Quality Management System Certification, ISO 22301 Business Continuity Management System Certification, IECQ QC 080000 Hazardous Substance Process Management System Certification, and ISO/IEC 17025 Laboratory Accreditation.

Promoting Green Operations and Low-Carbon Development

KSTAR integrates resource conservation and environmental responsibility into its daily operations, continuously advancing green manufacturing and low-carbon transformation.

During the reporting period, the coverage rate of ISO 14001 Environmental Management System Certification across KSTAR's core operating sites reached 100%. In terms of greenhouse gas reduction, the company's Guangming Park reduced its 2025 Scope 1 and Scope 2 greenhouse gas emissions by 52.66% compared with 2021.

KSTAR also actively promotes the use of renewable energy across its industrial parks. In 2025, the company's Guangming Park, Jinzhai Park, Huizhou Park, and Xiapu Park generated a total of 57.156 million kWh of renewable electricity through photovoltaic power generation.

In addition, KSTAR has carried out product carbon footprint accounting and certification in accordance with standards such as ISO 14067 and PAS 2050, assessing the potential climate and environmental impact of products throughout their life cycles. Several KSTAR products have already obtained product carbon footprint certificates.

Caring for Employees and Building a Responsible Supply Chain

KSTAR upholds a people-oriented development philosophy and is committed to protecting employee rights, building a healthy and safe workplace, and fostering an inclusive working environment.

During the reporting period, the company reported no cases of child labor, forced labor, or labor disputes. The coverage rate of collective contracts reached 100% of employees.

In 2025, KSTAR successfully achieved its occupational health and safety targets, with zero major fire and explosion incidents, zero fatal or serious injury accidents, and zero occupational disease-related incidents. The compliance rate for occupational hazard factor monitoring reached 100%. The company also organized 72 employee association activities, with over 1,200 participations, while its employee satisfaction score reached 96.2%.

In supply chain management, KSTAR conducted ESG-related on-site audits of 76 suppliers, covering key areas such as environmental protection and labor rights. Through these efforts, the company works closely with partners to promote a more responsible and sustainable supply chain.

Creating a Sustainable Future Together

Looking ahead, KSTAR will continue to advance both innovation-driven growth and responsible development. The company will further improve its ESG management system and promote coordinated progress in green manufacturing, low-carbon operations, responsible supply chain management, and employee development, committed to delivering efficient, reliable, and sustainable smart energy solutions, creating long-term value for global customers and working with partners toward a more sustainable future.