PAX Global Technology: PAX Global Technology : 2024 Environmental, Social and Governance Report

2024 Environmental, Social and Governance Report 環境、社會及 管治報告 Contents 2 PAX 2024 Sustainability Highlights 6 Major Awards, Recognitions and 19 Shape an Innovative Future 58 Significant Laws and Regulations 3 Promoting Sustainable Products Certifications 31 Curate a People-Centric Workplace 59 Environmental, Social and 7 4 About the Report About the Group 40 Build Climate Resilient Governance Reporting Index 11 Sustainability Eco-Operations Management Approach 55 Embrace Our Local Community 16 Sustainability Opportunity and Risk Management PAX GLOBAL TECHNOLOGY LIMITED Environmental, Social and Governance Report 2024 PAX GLOBAL TECHNOLOGY LIMITED Environmental, Social and Governance Report 2024 PAX 2024 Sustainability Highlights 2 PAX 2024 Sustainability Highlights Shape an Innovative Future Advancing Technology and Driving Continuous Innovation 100 % 100 % Acquisition of Acquisition of ISO 9001:2015 ISO/IEC 27001:2022 Quality Management Information Security System Certification Management System Certification 100 % 90 % Acquisition of Providers Signed ISO/IEC 20000-1: Declaration of 2018 IT Service Non-Use of Management Conflict Minerals 1 System Certification 900 + 730 + Patents Software copyright certifications 1,900 + Valid product certification certificates Curate a People Build Climate Resilient Embrace our Centric Workplace Eco-Operations Local Community Caring for Employees to Build Accelerating Decarbonization Enriching Communities through a Diverse and Inclusive Workplace for a Greener Future Nurture and Care 100 % 100 % 3 Director ESG Training Coverage Acquisition of ISO 14001:2015 Key areas of community projects Environmental Management System Certification 100 % 67 % HKD 200,000 ESG training coverage for employees Total GHG emission (Scope 1 and 2) intensity 2 Total charitable donations 100 % 84 % ISO 45001:2018 Occupational Health and Total water consumption intensity 2 Safety Management System Certification 2:1 68 % Ratio of male to female staff Total energy consumption intensity 2 1 2 Supplier of materials containing tin, tantalum, tungsten, gold (collectively referred to as "3TG") and cobalt. As compared to the year 2023. For more information, please refer to the "Environmental Footprint" section. PAX GLOBAL TECHNOLOGY LIMITED Environmental, Social and Governance Report 2024 Promoting Sustainable Products A920MAX We are committed to integrating customer-centric values and sustainability principles into our product and service innovation, and introducing a series of high-performance, high-security and high-quality products to satisfy needs of diverse clients. Among which, our Android smart payment solution A920MAX not only retains these core features, but also integrates consideration for the product chemical safety and sustainability. Additionally, the design aesthetics and product performance have been further enhanced. For details, please refer to the "Emphasis on Eco-Product Design" section. Design for safety and security First Asian payment terminal provider elected to the Payment Card Industry Security Standards Council ("PCI SSC") Advisory Board ISO/IEC 27001:2022 Information Security Management System Certification 100 % " " of the Software as Services ( SaaS ) and POS products are compliant with Payment Card Industry Data Security Standard ("PCI DSS") and PCI SSC's standards High quality and durability ISO 9001:2015 Quality Management System Certification 95 %+ Customer Satisfaction Rate (2024) Accessibility Functions Accessibility Mode With read-aloud function Haptic Stickers Assist the visually impaired with password entry Promoting Sustainable Products 3 More environmental friendly, more durable and more efficient* Environmentally friendly lithium-iron phosphate battery Apply clean technology to the product: a longer lifespan than conventional ternary batteries Faster Processor Equipped with Cortex-A53 quadcore processor for lower power consumption eSIM Technology Reducing plastic waste & electronic waste Higher Energy Efficiency Higher energy efficiency, batteries can support 10% more transactions Compatibility with e-receipt Solutions Reduce the use of paper Electronic Product Manuals Paper conservation & reduced carbon footprint Natural (Uncoloured) Injection Moulding instead of oil spraying technology Reduced paint use for higher chemical safety The relevant core functions are only available in the Android smart payment solution A920MAX. PAX GLOBAL TECHNOLOGY LIMITED Environmental, Social and Governance Report 2024 About the Report 4 About the Report Reporting Purpose, Period and Scope PAX Global Technology Limited ("PAX" or the "Company", together with its subsidiaries the "Group" or "We") is pleased to publish our Environmental, Social and Governance ("ESG") Report (this "Report"). This Report aims to provide our key stakeholders with comprehensive disclosure and highlight of the Group's management approach, strategies, policies, systems, measures and performance of our material Reporting Principles In the preparation of this Report, the Group has adhered to the four reporting principles set out in the ESG Reporting Guide, to ensure that the content of this Report is presented with clear and effective disclosure of the Group's sustainability performance and impact on stakeholders. sustainability issues. This Report also provides a thorough overview of the Group's performance in relevant areas through detailed data disclosure. Unless otherwise stated, this Report covers the period from 1 January 2024 to 31 December 2024 (the "Reporting Period"), focusing on the Group's core business in the People's Republic of China (for the purpose of this Report, excluding Hong Kong Special Administrative Region ("Hong Kong"), Macau Special Administrative Region and Taiwan) (the "PRC") and Hong Kong, which include the following subsidiaries: Pax Technology Limited; Pax Computer Technology (Shenzhen) Co., Ltd.; and Wonder Pax Technology (Shenzhen) Co., Ltd. Based on the reporting principle of materiality, the reporting boundary is determined by factors such as the revenue proportion, business scale, number of employees of each subsidiary as well as the impact on sustainability. An analysis of the revenue of the Group by geographical segments for the Reporting Period is set out in Note 6 to the consolidated financial statements in the Annual Report 2024 of the Company. Principles Explanations Materiality When the ESG issues covered in this Report have a material impact on investors and other stakeholders, the Group should provide relevant disclosures. Quantitative This Report shall set up measurable targets aimed at mitigating individual impact. This approach facilitates the evaluation and validation of the effectiveness of our ESG policies and our management systems. Quantitative information should be accompanied by a narrative, explaining its purpose, impacts, and giving comparative data where appropriate. The Group's Responses We maintain effective communication with our stakeholders through various channels. We conduct the annual materiality assessment and analysis to identify material sustainability issues that are relevant and important to both the Group and our stakeholders. In this Report, we present quantitative environmental and social key performance indicators ("KPIs") and appropriate historical data comparisons. Our sustainability framework and strategy and historical data comparisons have enabled us to keep track of our performance while assisting in corresponding strategic pillars, directions as well as goals and targets settings. Relevant standards, methodologies, assumptions, and conversion factors are disclosed when reporting the Group's emissions and energy consumption. Reporting Standards This Report is prepared in accordance with the provisions of the Environmental, Social and Governance Reporting Guide (the "ESG Reporting Guide", which has been renamed as the Environment, Social and Governance Reporting Code since 1 January 2025) in Appendix C2 to the Rules Governing the Listing of Securities on the main board of The Stock Exchange of Hong Kong Limited (the "HKEx"). We also disclose climate information with reference to the framework recommended by the Task Force on Climate-related Financial Disclosures ("TCFD"). Please refer to the "Climate Risk and Resilience Management" section for Balance This Report should impartially present the performance and challenges faced by the Group, avoiding any potential influence on the reader's decision- making or judgment through biased choices, omissions or reporting formats. The Group has disclosed the environmental and social impacts and performance related to our business in a balanced manner in this Report, covering our achievements, challenges and room for improvement in relation to material issues, as well as reporting comprehensive KPIs and data. more information. For details of the corporate governance of the Group, please refer to the section headed "Corporate Governance Report" in the Annual Report 2024 of the Company. Consistency The Group shall continuously prepare this Report in accordance with the ESG Reporting Guide of HKEx and use consistent methodologies to allow for meaningful comparisons of ESG data over time. Unless otherwise stated, we adopt consistent methodologies for the calculation of KPIs and conduct appropriate yearly comparisons in this Report. PAX GLOBAL TECHNOLOGY LIMITED Environmental, Social and Governance Report 2024 Data Collection Method The data and information cited in this Report are extracted from the Group's official documents and statistical data, approved by the board of directors of the Company (the "Board") in March 2025. Going forward, the Group will improve its data collection process through training, systematisation and optimised data collection methods. This aims to provide a more comprehensive view of the Group's sustainability performance. Access To This Report This Report is available