Supply Chain Management System

Supplier Management Mechanisms

LONGi continuously enhances its supplier management system, establishing a full life-cycle management framework that covers supplier development, cooperation process, and exit. The Company conducts a systematic annual review of the effectiveness and comprehensiveness of its suppliers’ Life Cycle Assessment (LCA) management system and related supporting policies, and iterated and upgraded relevant policies in 2025.

By formulating policies related to responsible procurement management, the Company has further solidified the foundation for its entire supply chain management process. These policies include the Supplier Management Policy, the Administrative Measures for Supplier CSR, the Supplier Sustainable Procurement Guidelines, the LONGi Supplier Code of Conduct, and the Administrative Measures for Supplier ESG Risks. The Company also integrates ESG requirements into its procurement contracts, covering suppliers, contractors, their affiliates, and multi-tier suppliers to comprehensively regulate supplier management. The supplier management system incorporates risk-based, tiered control logic and processes. New supplier admission strictly adheres to the Company’s Management of Supplier Development Document, creating a closed-loop management cycle of “New Supplier – Qualified Supplier – Exit Management”. The Company has also established the Supplier Sustainable Procurement Policy and the Supplier Social Responsibility Operational Guidelines to guide suppliers in practices related to business ethics, labour and human rights, occupational health and safety, environmental protection, and corporate governance, jointly promoting the sustainable development of the supply chain.

To pragmatically implement the concept of sustainable supply chain management, the Company has established a closed-loop supply chain control mechanism that spans the entire life cycle. Through rigorous due diligence and regular audits, the Company proactively identifies and dynamically manages its supply chain risks. On this basis, it concurrently promotes supplier empowerment training and enhances the stability of cooperation. By employing transparent management and closed-loop improvements throughout the entire chain, the Company continuously builds a compliant, transparent, and resilient sustainable supply chain ecosystem.

*31. The definition of Tier 1 suppliers was adjusted in 2025 to include only manufacturer-type suppliers.

*32. The definition of non-Tier 1 suppliers was adjusted in 2025, with the statistical scope covering service providers, traders, authorized distributors, and silicon supply chain manufacturers.

*33. The definition of key non-Tier 1 suppliers was adjusted in 2025, with the statistical scope focusing on key categories within the non-Tier 1 classification, including silicon, the eight main materials for modules, labour outsourcing, and the upstream silicon supply chain.

*Suppliers are counted as unique entities, meaning each supplier is recorded only once.

LONGi is dedicated to fostering a fair, just, transparent, and efficient supplier management system. LONGi refined the structure of the Supplier Management Committee, clarifying functions at all levels to achieve a more efficient and professional specialization and collaboration. This ensures that management tasks are handled with a dedicated and meticulous approach.

LONGi categorizes suppliers based on their operational characteristics and cooperation performance, scoring collaborative suppliers monthly, biannually, or annually by the dimension of quality, costing, delivery, service, technique, and ESG performance. Based on the scores, suppliers are classified as A, B, or C grading, with corresponding rewards or penalties accordingly.

Supply Chain Risk Management

To ensure the stability and security of the supply chain, LONGi established a comprehensive risk monitoring mechanism, regularly assessing and updating supply chain risks to ensure promptness and effectiveness in risk management.

LONGi reviews suppliers’ environmental and social risks through internal and external assessments. In the supplier access process, we conduct rigorous social responsibility risk screenings. After the supplier are approved, during the whole cooperation process, we introduce authoritative third-party risk tools to supervise suppliers’ dynamic business qualifications, legal records, compliance risks, and environmental violations.

In 2023, LONGi conducted its annual due diligence surveys to identify suppliers ESG risks, covering environmental management, human rights and labor protection, health and safety, business ethics, and corruption prevention. We crafted and carried out supplier ESG risk surveys, clearly requiring procurement employees to record supplier performance in the Supplier ESG Risk Survey Form. At the same time, we conducted annual supplier ESG on-site audits. Based on scores and findings, suppliers were categorized and managed accordingly. For high-risk suppliers, we actively coached them to carry out rectification and conducted regular re-audits to ensure closed-loop corrections.