On June 17, the 2025 Environmental, Social, and Governance (ESG) Report of Shengbai Technology x Zkong Network was officially released to the world in both Chinese and English. The report was prepared in accordance with the GRI Standards, a mainstream international sustainability reporting framework, and independently verified by SGS.
Zkong Network is a wholly-owned core subsidiary of Shengbai Technology and a key vehicle for the company's smart retail business. Its practices in green product design, ePaper technology applications, and digital store solutions constitute a significant portion of the report's disclosures.
The report's core sections show that Shengbai has made notable progress in its own green and sustainable development. The company conducted product carbon footprint accounting in accordance with ISO 14040, ISO 14044, and ISO 14067 standards, and organizational-level greenhouse gas emission accounting per ISO 14064-1. All related results have been verified and certified by third-party bodies, providing authoritative support for the low-carbon value of its products and emission reduction targets.
ENVIRONMENT
On the manufacturing front, Shengbai has obtained ISO 14001 Environmental Management System certification and ISO 50001 Energy Management System certification, and has been recognized as a Green Factory in Jiaxing City. Since 2017, the company has built a solar photovoltaic power generation system on factory rooftops to support daily production, optimizing its energy mix. In 2025, the company's photovoltaic power generation reached 715,894 kWh, avoiding approximately 356 tonnes of CO₂ equivalent greenhouse gas emissions — equivalent to planting approximately 20,000 trees.
On the product side, Zkong — as Shengbai's core business subsidiary — has embedded green principles into its Electronic Shelf Label (ESL) product development, achieving significant low-carbon results. According to the report, the carbon footprint of a single ESL unit is 0.89679 kgCO₂e. Based on the China Carbon Emission Allowance (CEA) price in the national carbon emissions trading market, each unit requires a carbon offset cost of only approximately ¥0.07 to achieve carbon neutrality from cradle to gate.
Behind this achievement lies Zkong's continuous efforts. Leveraging the low-power characteristics of ePaper display technology, the company has continuously optimized designs in areas such as long-life replaceable batteries and lead-free manufacturing processes, striving to reduce resource consumption and carbon emissions across the entire product lifecycle from the source.
The report has disclosed content related to green products and low-carbon solutions.
The report also mentions that Zkong, through the centralized management and remote collaboration capabilities of its self-developed SaaS cloud platform, is helping downstream stores improve efficiency with one-stop digital store solutions. This reduces additional consumption in labor, transportation, and other areas, contributing to a low-carbon retail ecosystem and bringing ePaper technology into more green commercial scenarios.
SOCIAL
The creation of sustainable value cannot be separated from the collective participation of customers, partners, and the industry ecosystem. During the reporting period, Shengbai — with Zkong as its primary external market-facing entity — continued to deepen ties with industry organizations both domestically and internationally, steadily expanding its "circle of friends" across the global retail ecosystem.
Domestically, Zkong serves as Vice Chair of the E Paper Industry Alliance and is a member of the China Chain Store & Franchise Association, engaging deeply in ePaper and chain retail exchanges. Internationally, Zkong has made appearances at representative retail technology exhibitions such as the NRF (National Retail Federation) show in the United States and EuroCIS in Düsseldorf, Germany. Drawing on years of expertise in digital store solutions, Zkong was selected for inclusion in the prestigious European retail media annual publication Europe's Finest 2025.
Innovation is a core element of Shengbai's sustainable development strategy. The report shows that the company has invested heavily in the research and development of ePaper, smart display, and other products as well as cloud platform systems. R&D expenditure accounted for 8.2% of revenue in 2025, driving product iteration and industry expansion through technological innovation.
In the journey toward global markets, stable and reliable product quality has always been the foundation for earning long-term trust. As of the end of the reporting period, Zkong's ESL and other products have obtained market access certifications in key target markets, including UAE TDRA, Japan MIC (Technical Conformity), and South Korea KCC, and have passed the EU RoHS 2.0 environmental compliance certification — providing solid support for global market delivery.
The report has disclosed content related to product quality and compliance.
GOVERNANCE
Sustainable development equally requires a clear and robust governance system. In the report, Shengbai formally introduced its "PRISM" sustainable development strategy, encompassing five key elements: Principles, Responsibility, Innovation, Sustainability, and Motivation. Governance was established as the fundamental commitment for standardized operations, creating a three-tier governance structure covering the Board of Directors, a dedicated ESG Committee, and various executive departments.
The report has disclosed Shengbai's ESG governance structure.
In terms of information security, the report shows that Zkong has obtained ISO 27001 Information Security Management System certification, and its ESL cloud platform officially passed China's Classified Protection of Cybersecurity Level 3 assessment in 2025. In supply chain management, the company has strengthened its sense of responsibility, with all partner suppliers having signed integrity and environmental/EHS commitment documents, pledging to jointly build a green, transparent, and open supply chain ecosystem.
The report has disclosed content related to supply chain responsibility management.
This report documents not only interim achievements but also Shengbai Technology's responsibility pathway toward long-term development.
Going forward, Shengbai Technology will uphold the principles of green manufacturing and long-term mutual benefit, fully leveraging Zkong's product innovation and scenario implementation capabilities to advance ESG practices across multiple dimensions. Together with global partners, the company aims to co-create a more efficient, greener, and more sustainable business future.
