산일전기 SANIL

ESG Strategy

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“We create the value of future power infrastructure through sustainable growth and trust.”

Dear Esteemed Stakeholders,

Since its founding in 1987, Sanil Electric has cultivated deep technical expertise and built enduring trust through its specialization in transformers and reactors. Built on that foundation, the Company has grown into one of South Korea's foremost power equipment manufacturers, with the majority of revenue now generated from international markets.

2025 marked an important milestone for Sanil Electric. Against a backdrop of surging global demand for grid modernization and data center infrastructure investment, Sanil Electric deepened its relationships with key North American utilities, including PG&E, and top-tier global partners such as TMEIC, GE, and Siemens. These long-term partnerships stand as a testament to our product quality and our ability to maintain competitiveness in a rapidly evolving global energy landscape.

Going forward, Sanil Electric will embed sustainability into the core of its growth strategy, positioning itself as an indispensable partner in the global energy transition, driven by technological innovation and a commitment to responsible management.

Eco-Friendly Technology and UHV Market Expansion

Sanil Electric is accelerating investment in eco-friendly insulating oil transformers and high-efficiency products, continuously advancing its capabilities in carbon reduction and energy efficiency. The Company remains focused on delivering eco-friendly power equipment solutions that enable customers to achieve their sustainability objectives.

Sanil Electric has also entered the Ultra-High Voltage (UHV) transformer market, meaningfully expanding its technology portfolio. As the Company scales toward full-scale production, it will build the capabilities needed to serve growing global demand for renewable energy and grid modernization, representing a pivotal step in its long-term sustainable growth trajectory.

Smart Manufacturing and Supply Chain ESG Management

To keep pace with growing global demand, Sanil Electric is expanding its production facilities and upgrading smart factory automation systems, enhancing efficiency and quality while minimizing its environmental footprint. In parallel, the Company is systematically strengthening supply chain ESG management by embedding environmental, safety, human rights, and ethics considerations throughout the value chain, building a sustainable supply ecosystem in collaboration with its partners.

Transparent Governance and a Human-Centric Culture

As a KOSPI-listed company, Sanil Electric is committed to strengthening Board independence and maintaining open, transparent communication with all stakeholders. The Company is also advancing its compliance and ethics management system while deepening its investments in employee health, safety, and professional development. Ultimately, Sanil Electric aims to cultivate a corporate culture in which individual growth and the Company's long-term sustainable success reinforce one another.

Sanil Electric will continue to advance with unwavering resolve, guided by the spirit of steady, patient perseverance ('Ubomanri'). This report reflects the Company's commitment to a sustainable future and responsible management. Built on stakeholder trust, Sanil Electric will continue to contribute to the sustainable advancement of the global energy industry.

We sincerely thank you for your continued support and trust.

Sanil Electric Co., Ltd. Co-CEOs Dong-Suk Park and Ik-Hee Han