The Board of Directors is the highest responsible and decisionmaking body for ESG matters of Haier Smart Home. The Board has a professional committee - Environmental, Social and Governance Committee, to assist the Board of Directors with ESG governance and information disclosure issues. The Company regularly assesses, prioritizes and manages ESG issues (including risks and materiality to the Company's business), and the Board regularly reviews the results of the assessment, identifies ESG issues material to the Company's development,be aware of management actions taken and makes recommendations. For details on the risk management and materiality assessment work, please refer to the section headed Corporate Governance Report (H Share) or Corporate Governance (A Share) of the 2022 Annual Report and the section headed 'Materiality Issues Assessment' of this report. The Environmental, Social and Governance Committee is responsible for developing an effective ESG strategy that aligns the Company's ESG objectives with its business objectives, The above ESG matters have been fully disclosed in this report, which was reviewed and approved by the Board on March 30, 2023.