董事长致辞走进
凌云光2023 年度荣誉可持续发展组织贡
献
规范治理人才培
养环境优化Stock Code: 688400
Knowledge and Reasons
are Our Arms to Embrace
the World
LUSTER LightTech Co., Ltd.Environmental, Social andGovernance Report
LUSTER
Knowledge and Reasons are Our Arms toEmbrace the World!
1 Sustainable DevelopmentContents
A Message from theChairmanAbout LUSTER2023 RemarkableAchievements 2023 Honors
?Sustainable Development Analysis andActions?Sustainable Development Goals?Stakeholder Communication?Analysis of Material Issues
2 OrganizationalContribution?Responsible Products?A Responsible Supply Chain?Responsible Brands?Digital Operations
3 Regulating Governance?Corporate Governance?Compliance Operation?Data Security and Privacy Protection?Organizational Change
4 Talent Training
?Human Rights Protection?Talent Attraction and Retention?Talent Training and Development?Employee Health and Safety?Establishment of Harmonious Workplace
5 Environmental Protection
?Innovation Driven Green Development?Green and Low-carbon Operations?Giving back to the Community with Love
A Message from
the Chairman
About LUSTER
2023 Honors
SustainableDevelopment
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
Consolidate the Power of Ordinary and Create Extraordinary Things
1. Actively creating value to serve the industry andmajor clients
In the field of 3C electronics, we have provided a large number of intelligent testing andproduction process solutions and products such as HyperTrain 8000 to top-tier customers in theindustry, greatly improving their production efficiency and liberating hardworking laborers. Wehave also strategically partnered with top-tier customers in intelligent visual appearanceinspection, achieving mass deployment from concept to reality. In the expansion of new displaybusiness, we have collaborated with BOE, Sharp, AUO, Tianma, and Lens to test car screensfor Tesla, Mercedes-Benz, and BMW. At the same time, we have actively expanded intooverseas markets, serving industry major customers with intelligent quality testing andmanagement solutions, building reputation and influence! As a representative of China'smachine vision industrial quality inspection, LUSTER appeared in a large-scale documentaryseries called "Smart Manufacturing in China" on CCTV and was hailed by CCTV as theindustrial version of "Li Zhu," bringing positive industry influence to the company!
In the field of new energy, LUSTER's industry-first online burr inspection system hasbeen validated by customers, establishing a positive influence in the industry. The square
In the direction of cultural metaverse with stereoscopic vision, LUSTER continues toenhance core capabilities such as motion capture, light field modeling, and XR virtual-physicalfusion shooting. We deepen cooperation with major customers such as Migu and CCTV, yieldingfruitful results. For three consecutive years, we have provided technical support for the shootingof XR programs for the CCTV Spring Festival Gala. The short film "Wang Bo's Return," createdin collaboration with the CCTV National Laboratory for National Defense, made its appearanceat the World VR Conference. Leveraging AI hyper-realistic digital human technology, we haveachieved highly detailed replication of digital humans at the level of 50-100μm hair thickness,receiving industry acclaim. Additionally, we have established a comprehensive metaverseecosystem with Tsinghua University and China Mobile's Migu company, as well as establishedthe MAC Metaverse Performance Technology Center at the Beijing Shougang Park Curling Hall.Furthermore, we have established the LUSTER Virtual Production Base in Malanshan and put itinto operation. The 2023 China Metaverse Conference, jointly organized with the MetaverseTechnology Committee of the Chinese Association for Artificial Intelligence, has achieved acomplete success. As a contributing unit to the core technology of XR virtual-physical fusion forthe "4K/8K Ultra HD TV Production and Presentation System and Industrial Application"project of the CCTV National Laboratory for National Defense, we collectively won the firstprize of the Science and Technology Progress Award from the Chinese Institute of Electronics.In the fiber optics and optics field, we have provided the industry with the OCS all-opticalexchange solution from the Intelligent Computing Center, which has been favored by theindustry. In the life sciences field, we have launched the groundbreaking Sminer droplet digitalPCR system, which enables absolute quantitative nucleic acid detection, contributing to the fieldsof life sciences and precision medicine.
A Message fromthe Chairman
About LUSTER
2023 Honors
SustainableDevelopment
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
2023 is a year of nurturing, cultivating, laying the foundation, and sowing hope. In the newsituation, artificial intelligence large models and spatial computing are emerging, allowingeveryone to see the hope and dawn of the future amidst the sustained pressure on the globaleconomy. All LUSTER people have worked hard and achieved remarkable results in varioustasks. 2023 is also a year of strategic layout and sowing hope. One stroke creates the universe,where nothing existed before. We started the construction of LUSTER Taihu Industrial ArtificialIntelligence Park in Suzhou. It carries the collective dream of all our colleagues for industrialartificial intelligence and lays the foundation for LUSTER's century-old foundation! Over the pastyear, LUSTER has centered its business around customers and aimed to promote the developmentof user industries, making significant contributions to various industries. In the 3C electronics,new energy, printing and packaging, and cultural metaverse with stereoscopic vision, which arethe strategic focuses of the company, we have gathered our superior resources and workedcollectively to achieve breakthroughs and remarkable results in current business.
Knowledge and Reasons are Our Arms toEmbrace the World!
appearance inspection equipment has achieved mass delivery. In the photovoltaic field, thenewly developed photovoltaic cell inspection system has been validated by customers, solvingindustry challenges. The company, in collaboration with CATL and Anman Times, strives toovercome multiple technical challenges in intelligent appearance inspection throughtechnological innovation. In the printing and packaging field, LUSTER actively serves the top10 major customers, achieving rapid growth in performance, and making breakthroughs ininternational markets. We have partnered with YIYAO PRINTING to create a leadingintelligent factory solution in the domestic Carton Packaging Industry, which has beenimplemented in Zhenjiang. We have also collaborated with Founder Group and GGSC tojointly serve HUNAN XINHUA PRINTING GROUP. Under the guidance of the Printing andGraphic Arts Association, the company has taken the lead in developing industry standards forintelligent visual quality inspection in offset printing.
2. In products and core technology: Accumulatingstrength, reaping abundant fruits
LUSTER has achieved significant breakthroughs in multiple fields with its focus on "vision+ AI + automation" products and core technologies. In 2023, we released more than 20 softwareand hardware products, delivering over 50,000 high-end vision devices to more than 3,000customers worldwide, as well as nearly 20,000 intelligent vision components, systems, andequipment, helping customers improve quality, increase efficiency, and reduce costs andpersonnel. In 2023, the company obtained 199 new patents, with a total of 709 patents.In the field of advanced optical computing and imaging, our high-end vision deviceproducts have made remarkable progress. The CB1000 short-wave linear array camera hasmaintained a leading position in fields such as photovoltaics and semiconductors. The CB2000short-wave infrared array camera has achieved breakthroughs in the laser industry. Intelligentvision systems and equipment have made new breakthroughs, and the VisionGLUE Dispensing& Inspection Integrated Vision Inspection System has been well received in the 3C businessmarket.The FZMotion motion capture system has been upgraded to stably support over 100smooth live broadcasts of digital humans. The InFision virtual-physical fusion production systemhas been successfully applied in major events such as the CCTV Spring Festival Gala, theNational People's Congress, and the Golden Rooster Film Festival. The LB6000 series 150million pixel global shutter camera has won the National Instrumentation Gold Medal, becominga star product in the industry.In the frontier technology fields of image artificial intelligence and large-scale models, wehave utilized deep learning technology to create the F.Brain platform, which has been applied in15 projects across industries such as printing and packaging, new energy, and 3C. At the sametime, we have launched an intelligent equipment cockpit, enabling equipment maintenanceprediction and pre-knowledge. LUSTER have also accumulated a database and model base oftens of millions of industrial data. LUSTER's Knowledge and Reason Research Institute and theMetrology Institute's Optoelectronic Imaging and Display Metrology Laboratory havecooperated to tackle industry challenges together. In the field of automation, we have overcomebottleneck processes such as soft wire connection in the 3C manufacturing process and 0.8mmmicro screw locking, striving to solve the key technological challenges in the last millimeter ofintelligent manufacturing factories.
In 2023, the company was granted 199 authorized patents, including 59 invention patents,and obtained a total of more than 700 authorized patents. We participated in the formulation andrelease of 4 industry and group standards, accumulating a total of 19 standards. We participatedin the writing of three white papers, including the "White Paper on the Development of AIIndustrial Quality Inspection Applications,""White Paper on AI Vision Empowering IntelligentManufacturing," and "2023 Silicon Carbide (SiC) Industry Research White Paper," totaling ninewhite papers. We have been honored with the
3. Promoting talent development within the organizationwhile making progress
2023 is a crucial year for the company's human resources development. With the mission ofundertaking business strategy implementation and serving major clients, significantimprovements have been made in the field of human resources. In terms of IPD2.0transformation and meeting the organizational capability demands of major clients, furtheroptimization and design have been completed for the business processes and organizationalstructure of product development. Clarifying the organizational responsibility and powerrelationship between the front, middle, and back ends has promoted the efficient utilization ofhuman resources. In response to the problems in the process of serving large customers, the keyweaknesses that currently affect the improvement of customer satisfaction have been identified;The company has reorganized its job system, established 7 job families, 34 job categories, 210professional positions, and more than 200 management positions, laying the foundation for thenext step of personnel position matching and salary return matching corresponding to job levels.This will effectively support value evaluation and value distribution work, and stimulateorganizational vitality.In terms of cadre development, the company has released the "LUSTER CadreManagement System 4.0", which improves the concept and requirements of cadre management.This will effectively support the development and appointment of more outstanding cadres andhigh-potential reserve talents. At the beginning of the year, the cadre succession plan wasinitiated, identifying over 100 key positions and more than 200 high-potential cadre talents. 35new cadres were boldly promoted and utilized, laying the foundation for cultivating anddeveloping more top talents.
first prize of the Science and Technology Invention Award from the China Graphics and ImageSociety, the leading service organization in intelligent manufacturing in Jiangsu Province, the2023 Typical Case of Artificial Intelligence Integration and Security Application - NavigationType, and the 2023 Beijing Artificial Intelligence Industry Empowerment Typical Case - Large-scale Model Type, among other national and provincial honors. We have also undertaken fivekey technology projects from the Ministry of Science and Technology and the Ministry ofIndustry and Information Technology.
LUSTER's Knowledge and Reason Research Institute's vision pre-training large-scalemodel technology took the lead in accuracy and efficiency in the recognition of industrial imagesin the IEEE Conference on Computer Vision and Pattern Recognition CVPR 2023 IndustrialQuality Inspection Challenge, winning the first place in the VISION Track competition. Thelithium battery cylindrical cell appearance inspection equipment and the VisionGLUEDispensing & Inspection Integrated Vision Inspection System have won the Innovation GoldAward from "Vision Systems Design" magazine.
A Message fromthe Chairman
About LUSTER
2023 Honors
SustainableDevelopment
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
Knowledge and Reasons are OurArms to Embrace the World!
Regarding talent development, opportunities for growth andlearning have been provided to 222 cadres through programs such asthe Talent Elite Plan, BU/SPDT General Manager's BusinessManagement Series, and grassroots cadre training camps. Trainingcamps for PDT/PM/SE have been completed for 93 individuals.Additionally, over 100 recent graduates were hired, and trainingprograms were implemented for their onboarding and integration intothe company. These efforts provide momentum for the company's long-term development. The company continues to deepen its Dajue TempleTrust Program, strictly conducts key business audits, and continuouslyimproves its management and governance capabilities. All employeeshave been determined to actively implement the organizational bottomline requirements of "Three-self, one criticism, and four commitments",laying a foundation for continuously improving organizationalcapabilities.
Those who seek the growth of wood must solidify its foundation;Those who wish to flow far must dredge their springs. 2024 will continueto be a year of quality improvement for LUSTER. We need to cultivateinternal skills to enhance the core competitiveness of our products,achieve end-to-end integration of TQRDC, design 5 layers of QualityAssurance products, and launch specialized projects such as reliability,quality, organizational capabilities, and internal GMQM1.0. Whileaddressing symptoms, we can fundamentally solve the core problems ofvisual problems and product development management, and achieve theSmartPQD strategic demands of customer ODS and intelligentproduction. In terms of business management, we focus on serving majorcustomers, improving quality and efficiency, and reducing costs anddeposits; Developing organizational capabilities to improve efficiency,continuously optimizing organizational design and job responsibilities,implementing IPD business processes and organizational changeevolution, and strengthening organizational leadership and managementcapabilities; Organizational development:Three-self, one criticism, andfour commitments, clarifying the business behavior benchmark withbottom line for career growth. In 2024, all colleagues actively face thechallenge, walk with giants, and work deeply!
Consolidate the power of ordinary and createextraordinary things. For many years, the company hasadhered to the general policy of promoting quality in businessdevelopment: by continuously improving the value andquality of work, the company can achieve a healthy leapforward in scale. In the context of the overall environment,machine vision is a key element of artificial intelligence! Ourwork revolves around the continuous strategic investment inproduct and technology development of intelligent visualdevices, systems, and equipment, supporting customers inintelligent production transformation and cultural metaversebusiness production in multiple industry fields. We seedevelopment opportunities behind the great crisis. Togetherwith top industry clients, we aim to overcome various AIapplication technology challenges in various fields. We arewell aware that only organizations with quality can win, andthe company's management actively organizes together tocarry out product development organizational changes. In2024, we will strengthen the construction of processes andquality. The management team will assess the situation andmake correct decisions. Employees will have benchmarks andplans in their work, and work will be done in one go; Eachcolleague becomes better, contributing to customers,developing the team, and achieving personal success.
Yao Yi, Chairman of LUSTER
4. In 2024, we will continue to adhere tothe principle of promoting industrythrough quality, and win in intelligence
A Message fromthe Chairman
About LUSTER
2023 Honors
SustainableDevelopment
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
Knowledge and Reasons are OurArms to Embrace the World!
About LUSTERCompany Profile
LUSTER is committed to growing into a global leader in the field of visual artificialintelligence and optoelectronic information. The Company has always adhered to theapplication innovation of light technology, used AI+ vision to implant the eyes andbrain into machines, strategically focused on machine vision business, actively builtpresence in strategic business segments such as electronic manufacturing, new energyand cultural metaverse, and empowered industrial intelligent manufacturing andintelligent production of cultural metaverse content.
Mission Implant the eyes and brain into machines, empower light speed
interconnection, create and realize customer dreams.
Vision Grow into a global leader in the field of visual artificial intelligence
and optoelectronic information.
Core Values Promote the development of the industry as the responsibilityand work hard together. Turn knowledge into wealth, and attribute wealth to itstrue creators.
Knowledge and Reasons are Our Arms toEmbrace the World!
A Message fromthe Chairman
About LUSTER
2023 Honors
SustainableDevelopment
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
2023 Remarkable AchievementsAnnual Events in Vision and Artificial Intelligence
2023.01
The Co-edited "White Paperon Industrial Intelligence"has been Officially Released
2023.06
Product Release of Lithium
Cell Product AppearanceInspection Equipment andPole Piece Burr All-in-oneInspection System
2023.03
LabelHERO-F Offline QualityInspection System NewProduct Appeared at ChinaInternational Label Exhibition
2023.07
LUSTER SignsStrategic CooperationAgreement with HBIS
Digital
2023.03
Cigarette Packet OfflineQuality Inspection System and
Printing Intelligent Factory
Solution Newly Unveiled
2023.07
The New HyperTrainProduct has Achieved
Bulk Delivery
2023.05
Ranked first in the
CVPR 2023Industrial QualityAssurance Challenge
2023.08
LUSTER Appeared in CCTV "SmartManufacturing in China" with Mobile
Phone Middle Frame AppearanceInspection Equipment Known As theArtificial Intelligence Version of "Li Zhu"
2023.06
The Taihu Industrial ArtificialIntelligence Park FoundationLaying Ceremony andInnovation and Development
Summit
2023.06ImportantInternationalCustomerCommunication
2023.06Product Release of 3DCamera and VisionGlueGlue Spot CheckerInspection System
2023.06Key Technologies and SystemIntegration Applications in theQuality Inspection of LithiumBattery Industry won the FirstScientific Award in Fujian Province
A Message from the Chairman
About LUSTER
2023 Honors
SustainableDevelopment
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
Knowledge and Reasons are OurArms to Embrace the World!
2023.01
InFisionXR Intelligent Virtual
Real Fusion TechnologyCreated a Digital Creative Stagefor the Spring Festival Gala at
the Main Station
2023.07
Joined the China MobileMetaverse Industry Alliance
2023.03InFisionXR VirtualBroadcasting SystemAppeared on CharmingBeijing Stage
2023.10LUSTER Virtual ProductionBase in Malanshan was
Launched
2023.03Joined Hands with CCTVDigital Virtual Anchor C toEmpower the Live Broadcastof the Two Sessions
2023.11"Reproduced" the Grand Viewof Tengwang Pavilion withDigital Technology
2023.04InFisionXR Assisted the Completionof the Central Radio and TelevisionStation XR Virtual Real Integration
Production and Broadcasting
Demonstration Platform
2023.064K/8K Ultra HD TV Production andPresentation System and IndustrialApplication Won the First Prize of theScience and Technology Progress Awardfrom the Chinese Institute of Electronics
2023.12
The MAC Metaverse StudioProduction and BroadcastingTechnology Center, China's FirstDemonstration Base of OpticalField Generic Technology Platform,Officially Established
2023.12Joined Hands with the ThayerSystems Laboratory of theChinese Academy of Informationand Communications Technologyto Assist in the Standardization
Process of Humanoid Robots
Memorabilia of the Cultural Metaverse
A Message from the Chairman
About LUSTER
2023 Honors
SustainableDevelopment
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
Knowledge and Reasons are OurArms to Embrace the World!
China Information Technology Industry
Federation
Comprehensive Strength-based Brand-name
Enterprise of Intelligent Empowerment
2023 Global Digital Economy
ConferenceTypical Cases of ArtificialIntelligence Industry Empowerment
in Beijing
Ministry of Industry and Information
Technology
"Intelligence Empowers All Industries" 2023Typical Case of Integrated Development andSecurity Application of Artificial Intelligence Pilot
The Chinese Institute of
ElectronicsFirst Prize for Science andTechnology Progress
2023 HonorsIn the 2023 IEEE Conference on Computer Vision and Pattern Recognition (CVPR2023)Industrial Quality Inspection Challenge, the company stood out and won first place in the
VISION Track 1 competition, demonstrating the high-precision, low-cost, and high flexibility
of industrial quality inspection "gatekeepers" in the new intelligent manufacturing scene toglobal peers.
Based on years of practical experience in the field of AI industrial quality inspection,LUSTER participated in the "Industrial Visual Inspection Seminar" data challenge andwon the first place in the "VISION Track 1" competition with the "Data Efficient
Industrial Defect Detection" project. The "Data Efficient Industrial DefectDetection" project is a technological innovation and application direction thatLUSTER has been deeply cultivating in the industrial field for a long time. Thisaward not only demonstrates that LUSTER's theoretical research and technologicalapplication in the field of industrial quality inspection have reached an internationalleading level; At the same time, it also demonstrates LUSTER's attention to the"quality inspection" challenges in the digital transformation process of traditionalindustrial manufacturing.
A Message fromthe Chairman
About LUSTER
2023 Honors
SustainableDevelopment
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
Knowledge and Reasons are OurArms to Embrace the World!
The full name of CVPR is "IEEEConference on Computer Vision andPattern Recognition". As a topconference in the field of computer visionand pattern recognition worldwide,CVPR attracts a large number of topenterprises, research institutions,universities, and others to participateevery year. It is not only a touchstone forglobal AI research teams to demonstratetheir scientific and technologicalinnovation capabilities and test their basicresearch achievements, but also known asthe "Oscar" in the field of computervision.
YiouPioneer List IntelligentManufacturing TOP10
Hangjiashuosandaiban2023 Hangjia Aurora AwardOutstanding Product of the Year
China Securities JournalESG Golden Bull Awards Top
50 Technology Leaders
Chinese Society of OpticalEngineeringChina Photoelectric Instrument BrandList Gold Sui Awards—Silver Award
Comein FinanceBest Innovation Practice
IR Team
"Vision Systems Design"2023 Innovation Award Gold
Award
iiMedia Research
2023 China's Most Popular Virtual Human Full
Stack Service Provider Award
Gaogong Robotics2023 Machine Vision Industry
Chain TOP30
A Message from
the Chairman
About LUSTER
2023 Honors
SustainableDevelopment
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
Knowledge and Reasons are Our Arms toEmbrace the World!
知识和理性是我们事业腾飞
Knowledge and Reasons are Our Arms toEmbrac
的e theW
董事长致辞走进凌云光2
023 年度荣誉可持续发展组织贡献
规范治理人才培养环境优
化
翅膀
orld!
Adhere to both businessdevelopment and sustainable
developmentTake sustainable development as a
key core competency
SustainableDevelopment
Sustainable Development Analysis andActionsThe Company is committed to integrating ESG sustainability concepts into its operationsand management. By identifying key ESG objectives in each operation process, such assupply chain, products, employees, production, and research and development, theCompany drives the realization of the overall ESG objective with objectives and keyimplementation measures.
Subject Content
Sustainable Development Goals
Continuous improvement of the governance structure and enhancementof the overall governance levelCompliance with laws, regulations, and professional code of ethicsFocus on information security network construction to protect customerprivacyFull respect for and protection of human rightsCommon growth of employees and the enterprise, and attribution ofwealth to the real endeavorsCreation of a harmonious office environment and attention to thephysical and mental health of employeesAdvocating and leading a responsible industrial ecosystemBuilding a responsible supply chain, products and brands
Technology and product innovation as the driving force of enterprisedevelopmentImplementing low-carbon green operationsGiving back to the community with love
Harmony
Win-winSituation
Greenness
RegulatingGovernance
Talent Training
OrganizationalContribution
Environmental
Protection
Knowledge and Reasons are Our Arms toEmbrace the World!
A Message fromthe Chairman
About LUSTER
2023 Honors
SustainableDevelopment
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
Sustainable Development Goals
Knowledge and Reasons are Our Arms toEmbrace the World!
Scope of Goal
LUSTER Sustainability Risks
Key Actions and Measures
Products
?Leakage of key innovation technology
?Raise awareness of patent protection and establish closed-loop measures for patent requirement clarification, patent mining,
patent application and patent protection
?Inadequate market competitiveness of
products
?Conduct IPD consulting, establish an IPD management system and process, carry out IPD training, and strengthen the IPD
team's ability to undertake the strategic intent of the products?Regularize project management and efficiency, and strengthen the pull of incentives on project quality and results
?Nonconformance of product quality to
customer requirements
?Obtain the certification of ISO9001 Quality Management System, and develop a number of ex-factory key link testing
standards and quality improvement closed-loop processes?Establish a complete after-sales management system to strengthen product delivery and service quality
SupplyChain
?Instability of supply of core materials in
the supply chain
?Formulate unified standards and processes to standardize the management of procurement, production and delivery, and
strengthen supervision and management?Extend to the upstream industry chain through investment + independent R&D, ensure the stability of the supply of core
components through investment in the Gpixel and CHIOPT and independent R&D of industrial cameras and light sources
?Poor quality of supply chain materials
?Conduct regular supplier audits such as incoming material quality assessment, improvement, audit closure.?Regularly visit suppliers and organize supplier training sessions
?Non-compliance with environmental
and safety management requirements
during delivery and installation of
products
?Sign the Safety and Environment Agreement with suppliers to regulate the quality of services and production safety
?Bribery of the buyer and the seller in the
supply chain
?Require both the purchaser and supplier in the supply chain to sign the Transparent Procurement Agreement, and
establish relationships of mutual management, mutual supervision, common development, mutual benefits and win-win
cooperation
Employees
?Loss of backbone and core employees
?Establish a culture of respect for the individuality of employees and fully respect and safeguard human rights?Establish market-competitive remuneration + long-term and short-term incentive programs?Value corporate culture, strengthen cultural cohesion and the overall centripetal force of the Company
?Insufficient growth of employee
competence, and breakage in key positions
?Establish diversified promotion channels and unified promotion standards?Establish targeted and effective training plans for employees at the grassroots, middle and senior levels, and strengthen
core competence training for key positions
?No guarantee for employees' physical and
mental health
?Build a diversified, inclusive and equal workplace environment, improve the channels for employees to express their
opinions and complaints, and carry out regular employee communication?Conduct regular checkups and provide gratuitous consultation for occupational diseases prevalent among employees?Eliminate hidden hazards regarding fire and office and work safety, constantly improve the safety hidden hazard training
system, and expand training personnel?Organize team building, holiday activities, and regular club activities to combine work and play
A Message from
the Chairman
About LUSTER
2023 Honors
Sustainable
Development
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
Scope of Goal
LUSTER Sustainability Risks
Key Actions and Measures
?Inadequate or deficient operational and decision-making systems that provide no guarantee forindependence
?Improve the internal control management system and establish a two-way line of defense between internalcontrols and operations for risk management
?Enhance the professional diversity and independence
of Board members
?Ensure the professionalism of internal and external performing directors at the business, legal, accounting,
technical levels?Strengthen the norms and roles of independent directors in the Three Mechanisms of the Company and in the
proceedings of major events
?Untimely disclosure of information and leakage of
insider information
?Establish information disclosure and inside information management systems and norms, and strengthen
monitoring and consolidation
?Inadequate communication of corporate value and
communication with investors
?Improve the Company's ability to mine and deliver value, and continue to communicate with small and medium-
sized investors through a variety of channels
?Leakage of important information
?Enhance the level of information system security operations to prevent major information leakage and major
information security faults
?Corruption of employees and internal related parties
?Strengthen the anti-corruption awareness of the Company's personnel, strengthen anti-corruption publicity,
improve anti-corruption means and anti-corruption system, and regularly carry out special anti-corruption
activities
?Lack of attention and assistance to vulnerable groups
in the society
?Make donations to widows and orphans, and fund the establishment of nursing homes
?Corporate business lack of value guidance to the
society
?Give play to the role of machine vision in assisting the upgrading of intelligent manufacturing, contribute to the
main theme of Industry 4.0?The cultural meta-universe enriches the AR/VR/XR content presentation, adding luster to human life
?Corporate business lack of value guidance to the
industry
?Actively advocate the establishment of industry standards, and build an industry ecosystem with influential
enterprises
?Uncontrolled use of nonrenewable energy
?Deepen the role of machine vision products in energy conservation and cost reduction for production intelligence
in industrial downstream industries?Reduce energy consumption for production and work through water, energy and power conservation measures?Strengthen the publicity of energy conservation and environmental protection, and develop the employees' habit
of green life and green office operation
ComplianceOperation
Society
Environment
Knowledge and Reasons are Our Arms toEmbrace the World!
A Message from
the Chairman
About LUSTER
2023 Honors
Sustainable
Development
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
Stakeholder Communication
LUSTER is deeply aware of the significance of each stakeholder to the Company.Through the identification of the existing and potential impact of eachstakeholder on the Company, we have identified the government and regulatoryagencies, shareholders and investors, customers, suppliers, society, the media andother major stakeholders. Through the establishment of open communicationchannels with each stakeholder, we understand the expectations of thestakeholders, and then make targeted responses.
Government
Suppliers
Investors
Society
Customers
Media
Stakeholders
Issues ofConcern
CommunicationChannel
Government andRegulatoryAgencies
Corporate GovernanceCompliance OperationInnovation Driven GreenDevelopmentEmployee Health and Safety
RegulationRegular ReportsDirected ResearchRelevant Meetings
Shareholders andInvestors
Innovation Driven GreenDevelopmentTalent Attraction and RetentionBrand Building
Regular/ProvisionalAnnouncementsField SurveyTelephone CommunicationPerformance Briefing
Customers
Product Quality ManagementInnovation Driven GreenDevelopmentSupply Chain Management
On-site VisitOnline CommunicationCustomer ExchangeSatisfaction Survey
Suppliers
Product Quality ManagementSupply Chain ManagementCompliance Operation
Supplier InspectionOpen TenderingSupplier Training andCommunication
Society
Innovation Driven GreenDevelopmentProduct Quality ManagementBrand BuildingGiving back to the Society
Disclosure of InformationHotlinePublic Benefit Activities
Media
Innovation Driven GreenDevelopmentEstablishment of HarmoniousWorkplaceHuman Rights ProtectionGiving back to the Society
Disclosure of InformationPublic Opinion InformationSurveys and Interviews
Knowledge and Reasons are Our Arms toEmbrace the World!
A Message from
the Chairman
About LUSTER
2023 Honors
SustainableDevelopment
Organizational
Contribution
Regulating
Governance
Talent Training
Environmental
Protection
Analysis of Material Issues
1 Identification of Issues
Importance to Stakeholders
Emissions Management
CorporateGovernance
Brand Building
Innovation Driven GreenDevelopment
Establishment of HarmoniousWorkplace
Talent Training andDevelopment
Employee Health andSafety
Giving back to theSociety
Importance to LUSTER's Sustainable Development
In order to select ESG issues and assess the importance of the issues, theCompany has adopted various communication methods such as interviews andemails to understand the needs and expectations of each stakeholder, andidentified 15 issues by referring to third-party consulting opinions in the light ofinternal operations, the overall situation of the industry, and the needs of eachbusiness segment. The ESG issues have been evaluated, ranked, and confirmedon this basis.
We identified 15 issues that reflect economicdevelopment and business substance by referring to theESG Guidelines and analyzing benchmarks in the sameindustry.
2 Assessment of Issues
On the basis of the established stakeholdercommunication plan, we have contacted andcommunicated with the relevant parties to rank theimportance of the selected issues, and finally drawn theissue matrix.
3 Confirmation of Issues
The Company's management is responsible forreviewing and confirming the results of the issue matrixand reflecting the importance of the Company's issues inthis Report.
Compliance Operation
Human RightsProtectionSupply ChainManagement
Talent Attraction andRetentionData Security and PrivacyProtection
Product QualityManagementEnergy Management
High Importance
Moderate Importance
Low Importance
Data Security and Privacy
ProtectionHuman Rights ProtectionTalent Attraction and RetentionTalent Training and DevelopmentEmployee Health and SafetySupply Chain ManagementInnovation Driven GreenDevelopmentCompliance Operation
Product Quality Management
Brand BuildingCorporate GovernanceGiving back to the SocietyEstablishment of Harmonious
Workplace
Emissions Management
Energy Management
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董事长致辞走进
凌云光2023 年度荣誉可持续发展组织贡献规范治理人才培养环境优
化
知识和理性是我们事业腾飞的翅膀
Knowledge and Reasons are Our Arms to Embrace the World!
Continuous optimization and construction ofcorporate responsibility and value system
Realization of responsible products, aresponsible supply chain and responsible brands
Organizational
Contribution
Responsible ProductsQuality is the foundation of the Company's products,and is the most important part of the Company'sattention and efforts to improvement. The Companyadheres to the quality policy of "benchmarkoptimization by scientific measurement, continuousimprovement by seeking truth from facts, leading byleadership and responsibility by all, creating andrealizing customers' dreams", constantlystrengthening the quality system and improving thequality awareness of all employees. During thereporting period of 2023, the main production basesunder the Company were certified by the ISO9001Quality Management System.
Quality Management System
QualityManagementR&D QualityManagement
Supply Chain Quality
Management
After-sales QualityManagementIPD ProductDevelopment
Planning
ProcurementWarehousing
Production
Delivery
InspectionAcceptance
Service
Group
The Company's quality management extends to the whole process of research anddevelopment, procurement, warehousing, production and delivery, with quality controlfor each link and key process related to product quality, and quality control workdecomposed to and implemented in each link. The person in charge of each link furtherdecomposes the granularity of the work to different scenarios and products, and thequality responsibility to the specific person in charge, so as to build the overall qualitycontrol performance management system from the big goals to the small details.
OverallQualityImprovement Goalsand Plans
PrimaryDepartments
Decompose theGroup quality goalto the goals ofprimarydepartments
SecondaryDepartments
Decompose thegoals of primarydepartments tospecific link andKPI
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In order to manage quality management standards uniformly and improve qualitymanagement efficiency, the Company has established a unified information platform toconnect the key links of quality management from research and development,procurement to production and delivery. It can assist with systematic management ofbusiness flow and production flow, and make quality management more streamlinedand transparent.
Product DesignRequirements andConcept Review
Manufacturing
Commissioning,Installation andVerification
ProductTraining
ProductDeliveryRepair
RequirementsSpecification andSystem DesignReview
Outline Designand Program
Review
R&D IPDQuality Goal
Review
Supply Chain Whole Process
Quality Inspection
After-sales Quality
Management
Complaint Closure Rate:
100%Number of Product Quality Improvements:
1,462
Closure Rate for Product Quality Problems:
92%
Handling of Nonconforming Products
The feedback of detected nonconforming products will be notified to the warehouse, and thewarehouse will check the replacement of the same batch of products, or contact the supplier forrework. If necessary, the R&D and Process Departments can be organized to review thenonconforming products and decide the disposal method of the nonconforming products.The Quality Inspection Department is responsible for determining the development of non-conforming products in the production process. If it is determined that the nonconformity is causedby poor engineering technology, the change management process will be triggered for rework. If itis determined that the nonconformity is caused by material quality, the scrapping or replacementprocedures will be selected according to the degree of impact of the materials.
If the finished products are found to be nonconforming, the Manufacturing Department shall conduct a self-inspection of the equipment and submit it to the Quality Inspection Department for inspection. The QualityInspection Department shall determine the nonconforming finished products. If the nonconforming finished productcannot be determined, the project manager shall be notified to organize the relevant departments to review thefinished products, and the review conclusion report shall be formed for implementation by the responsibledepartments.
Nonconforming RawMaterialsNonconfo
rmingProcessesNonconforming FinishedProducts
Detailed Designand DevelopmentRealizationReview
Functional Test
Review
Performance and
DFX TestReview
WarehousingIncoming Material
Inspection
Finished ProductsPlanned
Procurement andQuality Planning
Process InspectionFinished ProductsFinished Product
Inspection
WarehousingPre-delivery
Inspection
The Company takes product quality as its lifeblood, strictly controls the quality ofeach stage, traces back the causes and degree of impact of the nonconformingproducts in different stages and chooses different solutions accordingly, and handlesthe nonconforming products with the attitude of being responsible for the customers.Meanwhile, the Company summarizes and reviews the nonconformities caused byscale, improves and repairs the original quality process, so as to achieve the effect ofreducing quality defects and process vulnerabilities, and deliver satisfactory results tocustomers to the greatest extent.
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Quality Promotion
On March 15, 2023, LUSTER Developer Conference was held in Beijing, Suzhou,Shenzhen, Wuhan, Xi'an, Shanghai. The conference aimed to improve the Company'sIPD-driven R&D development and demand, carry out the establishment andimprovement of product quality zero defect quality system, and guide and release thekey work measures of the Company's R&D and the key work tasks of each productline to achieve quality improvement, efficiency reduction and cost reduction. TheOutstanding Individuals and Projects of the IPD Program for 2022 were alsocommended.
Developer Conference 2023
A Responsible Supply ChainEstablishing a Supply Chain System
In order to enhance the procurement management capability and guarantee thequality of procurement decision, the Company has established the ProcurementManagement Committee for proper management of procurement strategy,procurement tactics and supplier selection, so as to realize the success ofprocurement of strategic materials, strategic suppliers and key projects, andenhance the competitiveness of the products in a sustained manner.
Board of Directors
BU ProcurementSub-Committee
Integrated Procurement
Sub-Committee
Supply Chain Management
Department
Company ProcurementManagement Committee
The Company has carried out IPD consulting project since 2022, and during the projectperiod, the quality management concept, process and awareness of IPD have beenpublicized in LUSTER official account for 21 issues. Contents involve R&D demandmanagement, IPD structured process, IPD team operation, IPD review, etc. This hassystematically publicized the overview of IPD and the idea of quality control, andstrengthened the thinking of quality management of all employees.
In order to meet the long-term development and take into account the current needs,the Company has issued a series of supplier management systems and processes, suchas "Supplier Strategy Management Process", "Production Supplier Development andCertification Process", "Supplier Performance Management Process", "SupplierContinuous Improvement Process" and "Supplier Claims Process". We have set up aunified supplier management system within the Company to control the key links suchas supplier development, access, evaluation, grading and auditing.
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Supplier Classification
Supplier Audit
Audit PlanningAudit ProblemConfirmationEnd
Audit InitiationAudit ProblemImprovement
AuditImplementationAudit ProblemOutput
Supplier Introduction
Supplier AssessmentComplianceQualityIntegrity
EnvironmentalProtection
T
R
QD
CTechnologyService
CostQuality
Time ofDelivery
The Company inspects suppliers from aspects such as supplier company qualification,product quality and production capacity, conducts qualification certification andsample certification for suppliers, and signs the Procurement ConfidentialityAgreement, Environment and Safety Agreement and Integrity Agreement withsuppliers. Integrity, environmental and safety impacts of suppliers are also considered.
The Company conducts regular assessment of suppliers. The TOP suppliers in terms ofsupply quantity and supply amount and the suppliers rated C and below in the previousassessment cycle will be comprehensively assessed from the five dimensions of T, Q, R,D and C. Excellent suppliers are thus compared, identified and consolidated, and theimprovement direction of suppliers is identified; the supply quality is improved througheffective incentive measures.
LUSTER classifies suppliers into Level S, A, B, C, D suppliers according to theirindustry leadership, market competition, cost leadership, and previous cooperationratings. A Level S supplier is a strategic supplier with a leading position in the industryin a specific field, and an important unique value and relative competitive advantage,limited to strategic categories of materials; A Level A supplier is a preferred supplierwith good performance in business, quality, technology and delivery, offering a largecooperation space with the Company, and a high comprehensive score; A Level B is abasic supplier, generally newly certified by the Company and able to meet the basicrequirements and expectations of the Company; A Level C supplier is a limitedoptional supplier with a low score, a small cooperation amount or major problems andpending for improvement; a Level D supplier is an eliminated supplier with a lowscore, significant negative critical events exerting a serious impact, considered to beremoved from the Company's list of suppliers.The Company formulates a supplier audit plan based on the quality performance ofsuppliers in the previous year and the supplier management strategy for the currentyear, and in principle, suppliers are audited annually. A special audit team is set up forthe audit work, and during the audit process, the audit team records the audit problemsand confirms the corresponding problems with the suppliers, and specifies theresponsible parties for the problems and the confirmers.
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Undertake not to arrange jobs for the Company's purchasing personnel,establish joint ventures for profit, or engage in any other acts that wouldenable the purchasing staff to profit from the procurement process.Undertake not to accept business meetings or trading activities related tomaterial supply, outsourcing subcontracting and other businessesintroduced by the Company's purchasing personnel and their relations.Undertake not to provide money, securities, gifts, food, entertainmentand other disguised financial transmission and improper benefits to theprocurement personnel in any form.
Environmental Protection and Safety
Signing Rate of Transparent Procurement Agreement:
66.3%
Signing Rate of Safety Agreement:
81.3%
Supplier Training
Integrity and Transparent Procurement
Delivery Requirements
Quality StandardProblem Improvement
Number of SupplierAudits in 2023
Number of SupplierTraining Sessions in 2023
The Company adheres to the business rules of equality, openness and fairness in itstransactions with suppliers, and both parties have signed the Transparent ProcurementAgreement, committing themselves to maintaining an open and cooperative attitude, anda mutually supervising, mutually restraining, jointly developing and mutually beneficialrelationship with the partners, so as to establish a clean, open and healthy businessenvironment.
The Company has signed the Safety and Environment Agreement with its suppliers,specifying that the suppliers have two-way responsibilities and obligations to maintaintheir own safety and protect the environment during the supply period. The Companyhas formulated HSE management plans for key construction or high-risk operationprojects, taken effective measures to eliminate potential safety hazards, and activelyparticipated in professional training and obtained qualification certificates for specialoperations. In the supply and construction process, suppliers also actively comply withthe production, transportation, storage and disposal of waste, set up dust removalmeasures for large dust operation projects, and observe the Company's unified safetyand environmental protection system.
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Responsible BrandsThe Company insists on safeguarding the rights and interests of customers, creating valuefor customers as long-term growth and value enhancement, and winning the support andtrust of customers with excellent and high-level service quality. To this end, the Companyhas formulated the "Pre-sales Sample Making Process", "Sales & Delivery Specifications","After-sales Service Processing Process", "Delivery and After-sales Service Control" andother sales services around a series of systems and norms to ensure the timeliness andeffectiveness of the response to customer needs in the pre-sales, sales and after-sales links.In order to meet the needs of customers, the Company has set up offices and serviceoutlets in dozens of cities such as Beijing, Shanghai, Shenzhen, Chengdu, Suzhou, Wuhan,Hong Kong, and established 21 global branches in overseas markets such as the UnitedStates, Vietnam, India, so as to provide customers with mindful service and ultimatecustomer experience.
Efficiency
Standardization
Safety
?If a problem occurs during equipment commissioning, it should be solved quickly andended after confirming that the commissioning results meet the expectations.?If an exception occurs during the operation of the equipment, the field service personnelshall solve it within 30 minutes, and the exception shall be submitted to the project leaderif it cannot be solved.?Work progress summary and problem summary on the day?Standardize the basic requirements for dress code, scope of activities, prohibited items in
customer service plants?Standardize regulations and standards related to the management of customer sanitation
during the service period?Standardize attendance and work output during the customer service period
?Regularly organize and take inventory of equipment, tools, and materials and conduct potential
safety hazard investigation?Wear appropriate safety gear such as goggles and helmet as required when entering special
workplaces?Establish factory rules and regulations and red line behaviors, and conduct pre-operation training
CanadaThe United
States
Mexico
ColumbiaEcuador
Argentina
BritainNetherlands
Czech Republic
GermanyFranceSpainCroatiaSwitzerland
Hungary
RomaniaSerbiaepublic ofMontenegroTurkeyIsraelEgyptNigeria
SouthAfrica
United Arab
EmiratesPakistan
India
Sri Lanka
South KoreaJapanSuzhou
Taiwan, ChinaMyanmarVietnamThailandCambodia
SingaporeMalaysia
PhilippinesIndonesia
Australia
BeijingZhengzhouXi’anChengdu
Wuhan
Changz
hou
ShanghaiSuzhouNingdeShenzhenHong Kong,
China
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Customer Service Training
Customer Satisfaction
Number of Annual Customer Service Training Courses:
Annual Cumulative Number of Trainees:
1176
(The same trainees may take different courses)
According to the different training content, the Company carries out training in two ways:
online and on-site. The Company's introduction, technology and product popularizationcourses are held online, and equipment maintenance and equipment troubleshooting areheld on-site in combination with physical teaching.
Customer Service Training
Satisfaction Rate in 2023:
90%Satisfaction Rate in 2022:
89%
An Increase of1%in Satisfaction Rate
Product Quality Level
Product After-salesService Level
Overall Impression of Brand Image
Functionality and performance of theoverall operation of the equipmentStability of equipment operation
Operability and ease of useOverall maintainability of equipmentAttitude of service personnelSpeed of response to technical inquiriesEffective and timely problem solvingProfessional competence of service
personnel
The Company offers targeted training courses for the customer service team accordingto the requirements of customers in various industries, business types and producttypes, involving the popularization of the underlying technology of the productcomposition, equipment debugging training, common equipment problem solving toolsand methods, and equipment maintenance. The Company provides basic training onthe underlying imaging, algorithm modeling and operation of machine vision productsand other basic technologies to improve the professional ability of customer servicepersonnel, learn the main points in commissioning and maintenance through productcomposition and main process analysis, and learn project operation norms anddisciplines in combination with specific project customer requirements and factoryspecifications.
In order to continuously improve customer satisfaction and quality management systemaccording to the survey results, the Company has developed the "Customer SatisfactionSurvey and Evaluation" system for a understanding whether the current and future needsand expectations of customers have been correctly understood and met. Throughunderstanding customer needs and expectations, reflection on quality/delivery/service,customer complaints and complaints, review of customer service processes and qualitymanagement processes, the existing processes and systems can be gradually improved,so as to continuously strengthen the loyalty with customers and improve customerexperience.
Corporate
ImageProduct Pre-Sales
Solutions
Product Pre-Sales SolutionsProduct Pre-sales Technical Support
Product Delivery
Related
Training in the application of agingtechnology for equipment installation and
commissioning
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Brand Publicity
The 7th International Summit Forumfor Motion Picture Special Effects
CHINAPLAS 2023ZGC Forum
International Computational
Imaging Industry Forum
China InternationalAudiovisual Conference
VisionChina 2023
China VisionConference
To allow customers better experience the use ofproducts and feel the use of products on the spot,the Company has participated in a series ofindustry and industry exhibitions and activities.At the exhibitions, the star products and newlyreleased products and innovative solutions thatLUSTER has been serving customers andbenefiting the industry were displayed,promoting the transformation of industrialintelligent manufacturing with innovation andsupporting the upgrade of Industry 4.0.
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Digital Operations
IT and Digital System Establishment
Digital Enterprise
Manufacturing Service Platform
BI Analysis
Decision-makingSupport
IntelligenceAnalysis
BusinessControl
Total BudgetManagement
Enterprise RiskManagementEnterprise Management PlatformHumanResourcesManagement(HCM)/EHR
CustomerRelationshipManagement
(CRM)
After-sales
ServiceManagement(CRM/CS)
SupplierRelationshipManagement
(SRM)
ResearchProjectManagement
(PM)
FinancialSharing BPCCost/Budget
Core ERPBI Analysis
ProductionManagement
SalesManagement
FinancialAccounting
ManagementAccounting
ProjectManagement
Basic SupportCompanyWebsite
Mobile APPCollaborativ
e Office
TimelyCommunicationE-mail
KnowledgeManagement
SingleSign-on
Manufacturing Service Platform
Manufacturing
ExecutionWarehousing
MaterialPicking
Equipment/Tool
Management
DispatchingCommand Center
QualityManagement
R&D Service Platform
CAD IntegrationProcessManagement
SimulationService
Integrated Automation Platform
Logistics AGV
Equipment Data
Collection
StereoscopicWarehouse
5G NetworkIntelligent Park
Intelligent Product Platform
Industrial Cloud
PlatformIoT Platform AI
EquipmentManagement System
Online QualityManagement SystemEquipment Internet
Communication
IOT TerminalStand-alone Detection
HMIAutomated Production
LineComplete Equipment
IndividualMachines/Components
?The enterprise management platform centered
on SAP realizes the synchronization andconnection of business flow, data flow andmanagement.?Various IT systems such as marketing CRM,
supply chain SRM, WMS, financial sharingFSSC, capital management, tax controlmanagement, research and development PLM,attendance, business travel, project four-calculation, OA and mobile office have beenbuilt to fully support the management reform,upgrading and efficiency improvement of theCompany's various businesses.
Big Data and AutonomousPlatform Building
?Through independent development and
construction of big data and BI, low code agileimplementation of dual platforms, we support thereform of digital enterprise management andintelligent decision-making support.?Based on big data and BI platform, we realize the
accumulation and decision support of data assetsin various aspects such as enterprise operationmanagement, financial analysis, marketinganalysis, and human resources, and build anintelligent cockpit that can support the corebusiness of business management.
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董事长致辞走
进凌云光2023 年度荣誉可持续发展组织贡献规范治
理人才培养环境优
化
知识和理性是我们事业腾飞的翅膀
Knowledge and Reasons are Our Arms to Embrace the World!
Take compliance operation as thebottom line for a business that goes far
Take legal compliance as a code ofconduct for LUSTER members
RegulatingGovernance
Corporate GovernanceThe Company is committed to continuously improving its corporate governancestructure. In compliance with the requirements of The Company Law of the People'sRepublic of China, The Securities Law of the People's Republic of China, Guidelineson the Articles of Association of Listed Companies and other laws and regulations, theCompany has continuously improved and implemented the "Articles of Association","Rules of Procedure for the General Meeting of Shareholders", "Rules of Procedurefor the Board of Directors", "Rules of Procedure for the Board of Supervisors" toimprove its corporate governance, and perfect its internal control system and ensurethe effective operation of its corporate governance structure.
Strategy Committee
General Meeting ofShareholders
Board of Directors
Board ofDirectors
Management
Audit CommitteeNominating
CommitteeRemuneration andEvaluation Committee
Held 4 General Meetings of Shareholders and deliberated34 proposalsHeld 4 meetings of the Board of Directors and deliberated
58 proposals
Held 9 meetings of the Board of Supervisors and deliberated
39 proposals
Held 13 meetings of Specialized Committees and deliberated
46 proposals
General Meeting of Shareholders: The General Meeting of Shareholders is thesupreme authority of the Company, exercising its powers according to law. TheCompany has continuously improved the provisions related to shareholders' rightsin the Articles of Association and relevant internal systems to ensure thatshareholders, especially small and medium-sized shareholders, fully exercise theirrights, and to safeguard the equal status of shareholders.
Board of Directors: The Board of Directors is a standing body of the Company,
responsible to the General Meeting of Shareholders, established to implement theresolutions of the General Meeting of Shareholders, to safeguard the interests ofthe Company and all shareholders, and to take charge of decision-making on thedevelopment objectives and business activities of the Company. In order to supportthe decision-making of the Board of Directors, four specialized committees havebeen established under the Board of Directors, proposing recommendations for theimprovement of corporate governance.
Board of Supervisors: The Board of Supervisors is responsible to the General
Meeting of Shareholders for supervising the finances of the Company as well asthe lawfulness and compliance of the performance of duties by the directors andsenior management of the Company.
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Independence and Diversity of Directors
Members of the Board of Directors
33.33%
66.67%
66.67%
11.11%
11.11% 11.11%
Announcements
2023 Annual Investor Exchange MeetingIn May 2023, LUSTER held its Annual Investor Exchange Meeting. TheChairman, Vice Chairman and Secretary of the Board of Directors of theCompany participated in the reception of the Exchange Meeting. The meetingintroduced the Company's development history, annual operating results andfuture development, and exchanged with and responded to investors on thedevelopment of the industry, operating highlights, the competitive environment,strategic development, etc.
The Company currently has 9 members on the Board of Directors, including 4 internaldirectors and 5 external directors (including 3 independent directors). The Companyfollows the principles of pragmatism and diversity to ensure the independence ofindependent directors and to provide efficient and high-quality support for the work ofexternal directors. The diversity and differentiation of the Company's directors in termsof profession, age, educational background and skills are conducive to effective andscientific decision-making by the Board of Directors.
IndependentDirectors
Non-independentDirectors
IndustryInvestmentLawFinance and
Accounting
Below 4040~5050~60
Name
Position Held
AuditCommittee
NominatingCommittee
Remunerationand Evaluation
Committee
StrategyCommittee
Yao Yi
Internal Director
√
Wang
Wentao
Internal Director
√
√
Yang Yi
Internal Director
√
Zhao Yan
Internal Director
Wu Xi
External Director
√
Xu Xingren
External Director
XiXiaohong
Independent
Directors
√
√
√
Wang Kun
Independent
Directors
√
√
√
SunFuchun
Independent
Directors
√
Disclosure of Information
The Company actively fulfills its information disclosure obligations and disclosesrelevant information in a timely and complete manner to all shareholders, investors andpublic groups in accordance with the principles of openness, fairness and equity. TheCompany has established a variety of channels for communication with investors,including meetings, telephone calls, e-mails, and responses to questions, in an effort toimprove the communication channels with small and medium-sized shareholders.
VoluntaryDisclosure Reports
1000+InvestorHotline Calls
E-interactive Replies
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Compliance Operation
In-corruption Risk Prevention
Board of Directors
Business AuditDepartment
Supervision
Office
Operationalmanagement audit
Listing complianceaudit
Fraud preventionmechanism developmentFraud investigationInternal audit workmechanism development
Improve risk andinternal controlmanagement
Fraud caseinvestigationand disciplinaryactionAlert allemployees bycompliancepromotion
Identifiemanagementloopholes byComprehensiveaudit
Total number of trainees in the year:
Total training hours in the year:
hoursNumber of training sessions organized:
Training Topics:
"Audit Compliance System","Fraud Case Publicity" "Anti-corruption Material Publicity".The Company's online platform has offered the courses such as "LUSTER EmployeeBusiness Code of Conduct" and "LUSTER (BCG) Compliance in the Economic Issues ofAccountability" for employees to learn online.
Integrity and In-corruption DevelopmentWith the basic principle of "making the business big based on the bottom line, keepingthe bottom line and promoting the high line", LUSTER has set up an internal auditdepartment to carry out internal audit and fraud supervision. Through the audit andevaluation on the Company's business and internal controls in combination with thespecial investigation of fraud cases, we have achieved anti-corruption, anti-fraud, anti-waste, and promotion of the improvement of internal controls, operational efficiencyimprovement and integrity and self-discipline of all employees. These efforts haveguaranteed the sound and compliance development and long-term value realization ofthe Company.
AuditCommittee
Supervision over theappointment and exerciseof power of cadres
In order to prevent the occurrence of corruption, the Company has issued a series of systems toregulate the behavior of all employees, such as the "LUSTER Employee Business Code ofConduct", "LUSTER (BSG) Compliance in the Economic Issues of Accountability","Transparent Value Procurement Code of Conduct", "Provisions on Employees' IllegalAcceptance of Financial Resources to the Company". These systems are intended forstandardization, constraint and alert from various aspects such as employee behavior, cleanprocurement, punishment for violations.
"LUSTER Employee Business Code of
Conduct (BCG)"
"LUSTER (BCG) Compliance in theEconomic Issues of Accountability"
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Anti-Corruption Reporting
In order to further standardize the business behavior of all employees andenhance the ability of integrity and self-discipline, encourage employees tofollow the code of conduct "seek truth from facts, all for the purpose ofbusiness development of LUSTER", the Company has issued "Notice on theCompany Accepting Reports on Related Matters". This Notice encouragesemployees to be honest and upright, fight against the evildoers andwrongdoings, and report non-compliant behaviors based on facts.
Before going public, thecompany established the selfregulatory principle of " Three-self, one criticism, and fourcommitments" applicable to allemployees, continuously builtand improved the supervisionsystem within the group, andfurther established the basicconcept of "enabling those whodo things to achieve great things,make no or fewer mistakes,have an organization andmechanism to correct errors,and ensure the final result iscorrect" in 2023. A series of keypositions were promoted andtrained accordingly.
Methods of ReportingWhistleblowers can report by phone, e-mail, letter, etc.Whistleblowing hotline: 1781XXX2285Mailing Address: Audit and Supervision Department, Knowledge and RationalityBuilding, Building 7, 13 Cuihu South Ring Road, Haidian District, Beijing, China
Whistleblower Protection
1.The Company shall keep confidential the information of the whistleblower and theinformation provided, and shall not disclose it to the person reported or any unrelatedthird party.
2.It is strictly prohibited for anyone to retaliate against whistleblowers in any form, and
the Company will deal with retaliatory acts strictly and seriously.
3.If an employee voluntarily and truthfully confesses his/her behavior suspected ofviolation to the Company, he/she may be dealt with in a lighter or mitigated manner.Whistle-blowing RewardThe whistle-blower will be given relevant rewards according to the nature of thereport, the importance of the report leads if the violation facts, key leads andrelevant evidence of the person reported are found true after investigation.
1. Acceptance of reported leads
Three-self, one criticism, and fourcommitments
?Consciously abide by rules and regulations?Self reflection and proactive reporting of violations?Voluntarily accept investigations and audits?Unity, criticism, solidarity?Commitment to there shall be no defects in thedelivery of products and services?Commitment to avoid business and financial fraud?Commitment to all employees to avoid corruption
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Accept leads throughvarious channels
2. Screening of reported leads
Examine whether the reportedlead is clear and wellsubstantiated and whether itfalls within the scope of theaudit and inspection
3. Formation of a projectdepartment and opening of acase for investigation
The investigation team may becomposed of audit, supervision,legal affairs professionals, andtechnicians can also be invited.
6. Confirmation of key facts
Confirmation of key facts ofthe audit investigation by theinvestigator and relevantpersons involved in theinvestigation matter
5. Investigation and collectionof evidenceCollect relevant evidenceto maximize the recoveryof fraudulent facts
4. Development of aninvestigation program
Analyze and study the leads,develop a targetedinvestigation strategy, reportit to the senior leadership forapproval
7. Preparation of theinvestigation report
The report should contain a descriptionof the fraudulent act, thecharacterization of the act, theviolation of the Company's rules, therecommendation and basis foraccountability, and therecommendation for optimization ofinternal control
8. Communication ofinvestigation findings
Communicate theinvestigation findings withrelevant parties and clarifyqueries of relevant persons onthe investigation findings
9. Reporting of investigationfindingsStrictly control the targetaudienceKeep the findingsconfidential
10. Archiving of investigationmaterials
All original records(interview records,conversation recordings, etc.),various types of evidentialmaterials in the investigationprocess
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Regulating
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Talent Training
Environmental
Protection
Information Security Protection
Data Security Guarantee
Network Security System Establishment
?Upgrade and optimize the firewallsystem and introduce advancedintrusion detection and preventionsystems?Improve system security by regular
vulnerability scanning and patching?Ensure data security during
information transmission through
encryption of all R&D critical data
?Encrypted storage andtransmission of sensitiveinformation?De-identification ofspecific data using datadesensitization techniques
Strengthen the informationsystem security protectioncapacity, conduct regular securityaudits and vulnerability detection,and prevent external securitythreats such as hacker attacks andvirus intrusion
Establish a strict data access rights
management system; in case of
change of rights, the OA shall fill
out the "Information System Rights
Application Form" to ensure that
only authorized personnel can access
sensitive information and thus
reduce the risk of internal leakage.
Actively cooperate with the supervision
and audit of competent organizations,
and conduct comprehensive network
security compliance and risk assessment
through third-party professional
organizations to ensure that all business
activities meet the requirements of
network security laws and regulations.
As the Company is a technology company with high R&D investment, informationsecurity is the foundation of corporate survival and development, and continuouslystrengthening the protection of network security and data security is one of theCompany's important initiatives. Thus far, the Company has issued such systems andnorms for network security protection as "Informationization Manual","Administrative Regulations on Computer and Network Use", "Computer RoomAdministrative Regulations", "Network Policy Adjustment", forming the informationsecurity protection system of LUSTER.
Key links of data security
Administrative measures
Data manipulation
?Clarify operator responsibilities?Manage accounts separately?Strictly control the account audit
Data use
?Enhance day-to-day management of general
operating users?Disable the account in case of departure from
the workstation?Regulate the scope and channels of data use
User password management
?Password confidentiality management?Password complexity setting?Maximum password usage management
System password
management
?Segregated management of operating system
passwords and application system passwords?Password user rights management?System settings disabling management?Special password combinations and timeliness
TechnicalprotectionData encryption
anddesensitization
RightsmanagementSystemprotection
Compliance
review
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Network Security Emergency Plan
Type of Incident
Description of Incident
Cause of Incident
Emergency Measures
Category Iincident
Serious damage to servers,damage to optical fibers,application systems not starting(not working) due to forcemajeure or natural factors
1. Power supply fault
2. Fire
3. Water seepage fault
4. Natural disasters
1. Power supply fault: Check whether the power supply is faulty due to short circuit, open circuit,lightning and power protection equipment fault, UPS fault, and take corresponding measures to repairthe damaged equipment and restore the power supply.
2. Fire: Cut off the power supply, use gas extinguishers to extinguish the fire; report the fire to the 119command center for support; save people first if there are people in danger.
3. Water seepage fault: Cut off the power supply, take seepage prevention measures and replace thewater-soaked equipment
Category IIincident
Loss of server data, damage tohard disk, deletion ormodification of data caused byhuman factors
1. Virus outbreaks
2. Illegal alteration ofweb pages
3. Illegal intrusion
4. Denial of serviceattacks
5. Network line fault
6. Data fault
1. Human or virus damage incidents: Disconnect the affected device - disconnect the physicalconnection to the network - determine the source and nature - track the source of damage to the IP -restore the information system
2. Illegal invasion: Isolate the attacked server from the network - analyze the attack site and trace theattack source - analyze operation logs - check data - restore the system
3. Denial of service provisioning: Keep proper records and logs -analyze the attack site and trace theattack source, and modify the security configurations
4. Network line fault: distinguish whether there are loops or redundant lines, whether there is a needfor emergency repair and the line cannot be modified, and make differentiated responses
5. Data fault: Extract data from the data backup server, recover as soon as possible to ensure the fastestsystem operation
Category III
incident
Major information systems notworking
1. Information systemdown
2. Abnormal hardware
1. Find the problem, restart the application system in a timely manner, and reboot the server ifnecessary
2. Troubleshoot the hardware system and repair or replace it in time
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Management ChangeIn order to support the achievement of the company's strategy and business goals, and better serve and meet customer needs, the company further deepened the implementation of the"R&D System IPD2.0" and "Organizational Change" projects to promote and support organizational capacity building through management change in 2023, and made importantprogress in related work.IPD ChangeIn 2022, the company launched the PD2.0 transformation project, which established standardand non-standard product development processes and specifications based on the company'sresearch and development business characteristics, and established SPDT/PDT organizations.In 2023, based on this, the company further deepened its process transformation in theimplementation of projects. Through the HyperTrain8000 project, it successfully deliveredintelligent equipment to major clients, greatly strengthened its strategic cooperation withmajor clients, demonstrated outstanding technical strength, and established a first-classposition as a full line supplier; Through the VisionGLUEV1R1 and PackHEROV1R2 projects,a four layer architecture design was implemented to ensure product reliability, achievingindustry-leading adhesive inspection capabilities with an accuracy of 0.03mm; Byimplementing the zero defect concept, focusing on improving DFx quality, R&D processquality and IPQC, as well as improving TOPN and CIP, the customer complaint density hasdecreased by 25%.
Organizational Change
?The achievement of strategic goals requires strong organizational support. Faced with the rapid
development of the industry, high performance goals, the need for capability transformation, andthe need for organizational efficiency, the company launched an organizational change project in2022, clarifying the decision-making mechanism of the construction group committee and the directionof transformation for the middle platform organization.?In 2023, the company strengthened the division of labor and collaborative construction principles
among the front-end, midstream, and back-end organizations by further adapting business processesand organizational design at the macro and micro levels. The company established a dual wheel drivencombat organization positioning for research and development product lines and market SBU to meetthe company's needs for product reuse and horizontal and vertical expansion in segmented markets. Byestablishing the Group's Product and Solution Department and Customer Service ManagementDepartment, the resource coordination and allocation ability of the middle platform organization hasbeen strengthened, effectively ensuring that high-quality business is equipped with high-qualityresources and high-quality customers are equipped with high-quality services; The backendorganization has strengthened its responsibilities in three aspects: internal control supervision, qualityoperation, and human resource development. It has strengthened the blood transfusion and coachingcapabilities of the frontend business units, achieved effective collaboration in the division of laborbetween the main building and main battle specialties, greatly improved business collaborationand operational efficiency among various business units/BU, and ensured the resources forexpanding into new industries.
IPD customizationprocess
Project applicationimplementation
DFX requirementimprovementZero defect
Customization processes bloom in newproduct development:
Implementing zero defect thinking in productdevelopment and iteration, improving the
functionality, craftsmanship, and quality ofexisting products, and continuously enhancing
product competitiveness
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HyperTrain intelligent equipmentVisionGLUE dispensing all-in-one machinePackHERO equipment
Matching
Process (L1-L2)
Process (L3-L4)
Organization
(1/2-layer)Organization
(3-layer)Responsibilities
Position Held
Macroscopic
MicrocosmicMatching
Role
Responsibilities
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董事
长致辞走进凌云光2023 年度荣誉可持续发展组织贡献规范治理人才培养环境优
化
知识和理性是我们事业腾飞的翅膀
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Talent is the scarcest resource for sustainable
development of enterprises.Attracting, training and developing talent is a
permanent issue for the Company.
Talent Training
Human Rights Protection
EqualEmployment
Anti-discrimination
Safety andHealth
Respect forPersonality
Compensationand Benefits
PrivacyProtection
WorkingHours
OvertimeCompensation
Measures to Protect Human Rights?Fair Competition: Fair Competition: Recruitment opportunities are open, and therecruitment criteria are based on merit. There is no differentiation based on race,nationality, class, religion, gender, marital status, etc.
?Anti-discrimination against women: Anti-discrimination against women: the
Company does not discriminate against or prevent the employment of married orpregnant women, makes reasonable adjustments to the work of pregnant women,and prevent pregnant women from engaging in work harmful to their health; specialmaternity rooms for new mothers who are still on breastfeeding leave are alsoprovided.
?Company benefits: Company benefits: Company benefits consist of state policy
benefits and benefits provide the Company. In addition to the basic conditionsrequired by laws and regulations to be provided to employees, the Company alsooffers supplementary medical insurance, accident insurance, overseas travelinsurance, meal allowance, communication subsidy, housing allowance, travelallowance and other insurance and subsidies for employees and their relatedrelatives, and provides birthday/marriage/childbirth gift money and seriousillness/family visit funds.
?Working hours: The Company implements the flexible working system of eight
hours a day and five days a week.
?Learning and growth: The Company's training is provided for employees at all levels
with a coverage rate of 100%.
?Vacation management: The Company's vacations consist of statutory and public
vacations, annual leave, marriage leave, maternity leave, bereavement leave andother paid leaves.
?Overtime compensation: Overtime on holidays will be paid in accordance with
national regulations after approval of overtime orders.
The Company attaches full importance to and respects the rights and interests of itsemployees, strictly abides by The Labor Law of the People's Republic of China and TheLaw of the People's Republic of China on Labor Contracts, and is committed tofollowing the strict requirements and regulating its conduct in accordance withinternational conventions such as the Universal Declaration of Human Rights and theUnited Nations Guiding Principles on Business and Human Rights. The Company hasformulated the "Employee Handbook", "Anti-Discrimination, Anti-Harassment andAnti-Forced Management System", "Measures for the Administration on Recruitment","Attendance and Vacation Management System", and "Employee Welfare System" toprotect the rights and interests of the employees in terms of recruitment, promotion, andremuneration and benefits, prevent forced labor, child labor, gender discrimination andworkplace harassment. These systems can also fully protect the rights of the employeesin all aspects, and create a fair, equal, diversified, inclusive, and harmonious workingenvironment.
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A Diverse Team
Coverage Rateof SocialSecurityInsurance:
100%
Coverage Rate
ofSupplementaryMedicalInsurance:
100%
EducationalBackgroundGenderAge
Females: 397
Males: 1,584
Doctors: 1750-60:23Masters: 503
40-50:176
Below 30: 651
Bachelors: 829
CollegeGraduatesand Below:
30-40:1131
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Talent Attraction and Retention
Talent Recruitment
PlanningPrinciplePrinciple ofResponsibilityDecompositionTwo-way SelectionTwo-wayResponsibilityQualificationsPrinciple ofAccessPerson-postMatchingPrincipal
Based on the Company's strategic development plan as the basis of talent planning,the talent strategy is decomposed to each year.Recruitment PlanningThe employing department and the recruiting department work together to completethe recruitment process, examining candidates from different dimensions to ensurethe comprehensiveness and accuracy of the selection process.Establish a two-way choice of the modern concept of talent flow, and candidates forequal and considerable exchanges for two-way inspection and selectionClarify the responsibilities and qualifications of each position and conductinterviews based on the recruitment criteria.Let the right person do the right thing in the right position, and assign the rightperson to the right position
The Company recruited a total of
employees during the 2023 reporting period.
68% aged under 30
56% in Suzhou
20% in Beijing
30% holding anAssociate Degree andbelow
28% aged 30-40
12% in Shenzhen
2% in Zhengzhou
36% holding aBachelor's Degree
4% aged 40-50
1% in Shanghai
1% in Changsha
34% holding a Master'sDegree and above
2% in Chengdu
6% in Xi'an
In accordance with the principle of "two-way selection, two-way responsibility, faircompetition and merit-based recruitment", the Company's talent recruitment takes thejob matching and growth of talent as the main assessment focus, and the internalmanagement mode of dual responsibility system for the selection, introduction andtraining of talents is adopted by the human resources department and the employingdepartment to ensure talent sustainability.
Interviewer Selection Criteria
Value Recognition: Highly recognize the Company's corporate culture andvalues.Professional Qualifications: more than 5 years of continuous service andmore than 2 years in specialized positionsPerformance Requirements: B or better on previous year's performanceappraisal
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Establishment of Talent Training Base for School-enterpriseCooperation
On the afternoon of April 13, Du Guoshe, secretary ofParty Committee, Zheng Xiaodong, department levelorganization member, Li Jie, deputy secretary of PartyCommittee and Qin Hanlin, deputy dean of School ofOptoelectronic Engineering, Xidian University led adelegation to LUSTER LightTech Co., Ltd. This studytour & enterprise visit and position expansion themedwith Light of Hope was joined by the counselors of all
grades and 15 undergraduate, postgraduate and doctoralstudent representatives of the School.
After Ren Xiaowei, General Manager of Xi'an Branch ofLUSTER and Wang Haoyu, R&D Director of Xi 'anBranch of LUSTER Intellectual Rationality ResearchInstitute, introduced the employment situation and R&Dresults of the enterprise to the teachers and students ofXidian University respectively, the inauguration
ceremony of "College Student Social Practice Base"
jointly established by LUSTER and Xidian Universitywas held. Du Guoshe, secretary of Party Committee ofOptoelectronic Engineering, Xidian University, grantedthe license to General Manager Ren Xiaowei.
Mr. Wang Jia of the Intelligent Science and Technology Program at the Beijing Institute of
Graphic Communication led the students to the Beijing Headquarters of LUSTER and
completed a 5-day practical training course from May 29 to June 2. Despite of a shortperiod of only five days, the students gained a lot, not only theoretical and practicalknowledge outside of books, but also reflections on their current learning and the idea of thefuture. Lastly, the students expressed their hope of future opportunities to come back toLUSTER for a longer, more practical and more in-depth practical training course.
At 9:00 am on May 23, 2023, the students of theSchool of Optoelectronics, Beijing Institute ofTechnology, led by associate professors Wang Qingand Zhang Jinying, visited LUSTER Yuanke Vision.With the theme of "Integration of production and
education—Starting the Journey of Meta-universeExploration", this visit led the teachers and students of
Beijing Institute of Technology to a furtherunderstanding of the background, development statusand future prospects of the meta-universe.
Xidian University Unfolded Enterprise Visit, Position Expansion andEmployment Promotion Activity
Practical Training for Intelligent Science and Technology Programof Beijing Institute of Graphic Communication
Beijing Institute of Technology Meta-space Exploration Trip forTeachers and Students
The Company has established close partnerships with colleges and universities all over thecountry, put in place a talent training mechanism through school-enterprise cooperation,taught undergraduate and postgraduate courses, and conducted directed training of talentsneeded by the industry and enterprises. On the one hand, it has shortened the adaptation timefor fresh graduates to fit into the workplace and strengthen professional ability; on the otherhand, it has helped enterprises train a group of corresponding talents in response to thecurrent social needs. Education in learning and integration of learning in practice effectivelyimprove the efficiency and quality of personnel training.
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Remuneration Management
Establish a timely incentive system to drive the achievement of organizationalstrategic and business objectives
Compensation
Incentives
Benefits
FixedCompensation
StatutoryBenefitsCompanyBenefits
FloatingCompensation
TimelyIncentives
Restricted StockIncentives
TimelyIncentiveEvaluation
Drive strategy andmanagement realization
Restricted StockIncentives
Severalmillion
yuan
Timely Incentives
in 2023
?Intellectual property?Government projects?Sales and services?Products and solutions?Operational efficiency
?Awarded to 265 employees?5.29 million shares awarded
?Restricted Shares Awarded?Taking up 1.14% of the total
share capital
In order to establish a core team that can support the long-term development strategic goals, theCompany has formulated the "Salary Management System", "Diversified and TimelyIncentives" and "Employee welfare System" in combination of the long-term incentives andshort-term incentives with the market and other factors such as the compensation level, postvalue, employee's personal contribution and development potential under the principle of valuecontribution as distribution. These systems are to attract, retain, motivate and achieve talents.
Group-level diversified and timely incentivesettings need to be oriented to key tasks thatsupport the achievement of the Group'sstrategic and business objectives, andoriented to customer-centric managementimprovement and organizational capabilityenhancement.
Drive cross-team collaborationand project breakthrough
Undertake company-level important matters,and project tasks with high valuecontribution and cross-team collaborationdifficulty.
Meet SMART and 5W3H
When accepting the award setting, theevaluation criteria must be SMART,complete and fully reflective of the 5W3Hmanagement requirements.
Follow " Execution based onPreset Rules, and Awarding
after Announcement"
The results should be subject to acceptanceinspection in strict accordance with theaward criteria, and the awards should begranted after review and approval of theresponsible award entity and filing by theHuman Resources Department.
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Elite Program
Requirementsfor Application
Service period: The employee's service period in the Company shallnot be less than 3 years.Scope of use: Annual performance assessment results of at least 2
Grade B in the past 2 years; or management with Level 20 and aboveand having moved to and purchased a house in Suzhou
Loan amount: Generally, the loan amount shall not exceed twice the
applicant's annual pay, and the loan period shall not be more than 5years.
Loan rate: Adjusted according to bank interest rate
Theemployeeapplies forTalent Fundwith thedepartment
Recommendation bythedepartmenthead
Preliminary review bytheDepartment HumanResourcesCommittee
Approval by theHR Director,the FinancialDirector, theGeneralManager/theGroup HumanResourcesCommittee
Implementation
In order to ensure the stability of the high-level talent team, improve the employeewelfare system, effectively attract outstanding talents, retain key talents, andcontinuously stimulate the vitality of talents and organizations, the Company provideslow-interest loans with its own funds for the backbone employees with excellentperformance to buy houses or help families with temporary difficulties.
Application
Process
Organizational Performance
Performance AssessmentThe Company takes "educating talents in performance management" and "creatingvalue for internal and external customers" as the purpose of performance management,integrates individual performance into organizational performance, inspires employeesat all levels to work together and contribute to the overall strategic goal, and thusachieves the purpose of motivating and training organizational cadres and continuouslyimproving performance management.
Individual Performance
Formulation of a performance plan: Decode
the annual business objectives according tothe strategic objectives and further break themdown into the individual business units andoperating units
Performance goal setting: The unit supervisorbreaks down organizational goals and setthem into individual key performance, alignstarget tasks with employees, and signsindividual performance commitments.
Performance implementation and coaching:
Analyze the target analysis gap, improve theplan and promote the circular loop closing by themonthly/quarterly performance completion.
Performance coaching: Coach employees onthe results of their phased performance goalsto improve performance results and workenthusiasm
Performance evaluation and feedback: semi-annual review of the overall performanceresults, review and adjust the annual targettasks
Performance evaluation: The supervisor evaluates
the employee's performance contributionaccording to the employee's semi-annual/annualperformance commitment letter, the completion ofannual key events and peripheral opinions
Application of performance results: Theperformance results are applied to the incentiveevaluation of each unit, and the performance resultsof each unit are used as an important basis forevaluating individual performance.
Performance feedback: Direct supervisors give face-to-face feedback on performance appraisal results toemployees and reach a consensus on performance,strengths and weaknesses and problems, and applyimprovement tasks to the next round of performanceevaluation.
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Promotion System
Conditions for Rank Promotion
Employee Development ChannelsManagement ChannelExpert ChannelCorporate SeniorManagement
Corporate Senior
ExpertCorporate Middle
Management
Corporate ExpertDepartment MiddleManagement
Department SeniorBackboneGrassrootsManagement
Department BackboneGrassroots Employee
The Company has put in place a unified employee promotion management process,linking individual ranks with performance assessment and promotion, andimplementing them in accordance with the principle of fairness and justice, guided byresponsibility results and ability improvement.
Annual Appraisal and Commendation
In order to effectively motivate all employees to keep fighting and stay energetic, andlead all employees in such values as "customer oriented, strategy oriented,responsibility results orientated, high quality work, unity, criticism and progress", theCompany annually commends excellent teams and individuals. The commendation isto select the best out of the best and promote excellence.
Individual performance contribution: Review the employee's work achievement
with reference to the past two performance results. An individual performance ratingof C or above is a necessary condition for reviewing the employee's promotion.
Key competencies and qualifications: Before the Company implements
qualifications, the assessment is mainly based on the ability shown in the performancecontribution process of the employee, and the professional contribution of theemployee to the organization.
Individual rank and level review: In addition to assessing the individual rank ofeach employee, it is also necessary to assess the level of the employee; accordingto the level of competency, it can be rated as fully competent, basically competent,temporarily incompetent.
Category ofAward
Name of Award
Award Value
President'sSpecial Award
Company LevelBusiness/TechnologyBreakthrough Award
The Group's highest honor, leadinginnovation and breakthrough, with greatvalue contribution and strategic significance
Gold Team
Award
Best Trailblazer Award
Expanding the scale of operations
R&D Excellence Award
Enhancing product value
Best Operations Award
Improving organizational effectiveness
Golden Medal
Individual
Award
Golden Medal Employee
Excellent responsibility results, solidprofessional competence, and setting abenchmark for employees
Golden Medal Manager
Compliant with corporate values, practicingwhat one preaches, excellent responsibilityresults, and setting a benchmark foremployees
Newcomer
Award
LUSTER New Star
Recognized by the team for excellent overallperformance within one year of joining theCompany and setting benchmark for newemployees
SpecialContribution
Award
Annual SpecialContribution Award
An unconventional award to be given forsignificant events in a special period of timeand for significant contribution to theCompany as a whole
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Employee type
Training direction
Core courses
?Corporate Culture?Basic Systems and Processes?Functional Knowledge
LUSTER in DevelopmentThe Seven Requirements onLUSTER EmployeesBecome the Best You Can BeThe First Lesson in Quality
?Enhancement of ProfessionalCompetence and Quality?Effective Office Tools and
Techniques?Promoting Employee Growth
Professional DevelopmentProject Management PracticeEnhancementHow to Communicate EffectivelyNine Steps to Better Execution
?Management Tools and Skills?Professional Management
Skills?Management Mindset
Transformation
Role TransformationExecution and MotivationTask PlanPerformance Assessment
?Leadership Development?Time Management and
Efficiency?Problem Solving Skills and
Thinking
Talent Planning and DevelopmentOrganizational PerformanceManagementOrganizational Design andCapabilityBusiness Analysis andManagement
?Strategy Management?Business Operations
EntrepreneurshipStrategic LeadershipOrganizational LeadershipTransformational Leadership
Talent Training and Development
Establishment of a Comprehensive Training System
23,946hoursTotal training hours in 2023
Total training hours in 2022
2,068raineesTotal number of trainees in 2023
1,443raineesTotal number of trainees in 2022
The Company provides targeted training for senior, middle and grassroots managersand employees in line with the characteristics and relevance of their respective groups,with the intention of rapidly improving the integration and starting ability of newemployees, the vertical expansion ability of existing grassroots in their positions, andthe comprehensive management ability of management at all levels. Through thedifferent levels of course system and a variety of training programs, we provideemployees and managers with differentiated training to help each employee's growthand progress.In order to activate internal resources and build a learning organization, the Companyhas established a mentor training and certification system, aiming to improve theteaching ability and skills of mentors through mentor training, help mentors transformexperience into knowledge and knowledge into wealth, and realize knowledgeaccumulation, sharing and dissemination.
New employees
GrassrootsEmployee
GrassrootsManagement
MiddleManagement
SeniorManagement
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26,984hours
The Seed Program is aimed at fresh graduates who joined the Company in 2023. Through a series of trainingactions during the probationary period, the Seed Program will help school recruits to successfully transform fromstudents to workers, and stimulate their creative vitality, thereby tapping the potential of newcomers. Therefore,
the design of the training program focuses on the newcomers' career development path, sense of accomplishmentand recognition, so that the newcomers can be better integrated into and more dedicated to the organization.
The program is divided into three stages: the first stage is the learning of what new employees are expected toknow. The rich courses involve systems, processes and culture, primarily in the form of online micro-courses,intended to improve learning efficiency and ensure learning results. The second stage is the new employeeintensive training in the Company. The three-day intensive face-to-face training consists of corporate culture,human resources management, development history and other contents. Executives of the Company are invited towork as lecturers, in order to achieve the most efficient and accurate transfer of information and ideas. The thirdstage is work practice, learning during training, and supplemented by mentoring by mentors to help newemployees quickly fit into the job and start working. In the first half of 2023, the Company held manager trainingon customer satisfaction management concept and practice and solution in Beijing, Suzhou and Shenzhensimultaneously, and the Company's marketing system and R&D system related senior leaders participated in thetraining, covering 157 trainees, and generating a participation rate of more than 70%. During the reporting period,the Company conducted both online self-study and on-site intensive training and teaching for the grassrootsmanagement, and effectively improved the management skills and abilities of grassroots managers throughlearning performance management, team management, etc. The 24 grassroots cadres who participated in thetraining and learning will be a strong support team for the Company's sustainable growth.
In the first half of 2023, the Company held manager training on customer satisfaction managementconcept and practice and solution in Beijing, Suzhou and Shenzhen simultaneously, and theCompany's marketing system and R&D system related senior leaders participated in the training,
covering 157 trainees, and generating a participation rate of more than 70%.
2023 New Employee Training
Specialized System Training
During the reporting period, the Company conducted both online self-study and on-site intensivetraining and teaching for the grassroots management, and effectively improved the management
skills and abilities of grassroots managers through learning performance management, teammanagement, etc. The 24 grassroots cadres who participated in the training and learning will be astrong support team for the Company's sustainable growth.
Grassroots Management Training
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On March 4, 2023, the Company held a seminar on the operation and value distribution of thedelivery company with the theme of "focusing on management, improving performance, gathering
vitality and earning bonuses". This seminar invited external experts to work as corporate mentors,guide the discussion and deliver the 23-year Management and Compensation Incentive Goalsthrough the presentation of the course. The results of this seminar will serve as importantorganizational wealth for the Company.
Learning Seminar for Middle and Senior Management
RMB
1.88
million
Mentor Selection and Training
1 Course Lecturer Certification Application: The training department publicizes theinformation of the certified courses in the course library, and the employee will fill out the"Course Lecturer Certification Application Form" and submit it to the training department.
2 Preliminary Qualification Review of Course Lecturer: The training department develops the
course content according to the requirements and applications of the lecturers, andpreliminarily evaluates the qualification of the lecturers.
3 Trial Lecturing: The lecturer receives the proposed certification course package and starts
trial lecturing after lesson preparation.
4 Lecturer Certification: The expert jury grades the lecturer according to the performance of
the trial lecture and a lecturer with a score ≥80 is considered certified.
5 Certificate Issuance: after preliminary certification, the training department will issue a
Letter of Appointment as per the level of the lecturer determined according to the rank of theapplicant. The appointment period is 1 year.
LUSTERAcademy
Total training costs in 2023
courses
Total training coursesin 2023
?Management of lecturerselection, certification,assessment and motivation,etc.?Training and development oflecturers?Regular update ofinformation in the archives
BusinessDepartments
?Responsible for
recommending lecturers?Assisting in instructor
selection, certification, etc.
Lecturer ReviewCommittee
?Accreditation Review of
Course Lecturers
Number of new mentors in2023
Number of new mentors in2022
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Employee Health and SafetySafeguarding Employee Safety
Work Safety Accountability SystemBoard ofDirectorsGeneral Manager
Human Resources
Department
AdministrationDepartment
Business andFunctionalDepartments
?The Board of Directors authorizes the General Manager to plan,implement and supervise a series of matters related to the Company'swork safety.?The General Manager establishes and improves the Company's total
work safety system, and ensures the effectiveness of the implementation,and takes direct responsibility for the final results.
?The Human Resources Department is responsible for monitoring thesafety responsibilities of each department and the effectiveness of theimplementation, which is an important assessment item.?Responsible for recruiting and supervising the employment of personnel
in accordance with labor regulations.?Provide application elements and post-incident logistical collaboration.?Organize and participate in the formulation of work safety regulations
and operating procedures?Organize and document work safety education and training of the
Company?Regularly check potential safety incidents and put forward suggestions to
improve safety production?Implement the safety responsibilities of the department?This part involves the Quality Management Department, Supply Chain
Management Department, business departments at all levels, etc.?Implement the corresponding work duties of the Company?When there is a risk of safety incident, unfold a timely investigation and
report it to the superior leadership and Administration Department to
prevent the escalation of the situation.
The Company is committed to continuously improving the occupational health and safetymanagement system, and has been certified by the ISO45001 Occupational HealthManagement System in accordance with The Law of the People's Republic of China onProduction Safety, The Law of the People's Republic of China on the Prevention andControl of Occupational Diseases and other laws and norms. On the basis of the originalEHS system, the Company has further improved the system and standardized the rules,revised and released the "Safety Goal Assessment System", "Accident Investigation andPunishment System", "Work Safety Responsibility System", "Management System forExtension Cords and Mobile Electrical Equipment", etc.The Company regulates all kinds of health hazards in production and office operationfrom production process, security, chemical management, special equipmentmanagement, special operation management, safety and emergency management andoccupational health to eliminate hidden hazards.
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Safety Responsibility Goals for 2023
Accident Investigation and Punishment Process
Major equipment accidents and major liability accidents:
Acute poisoning affairs:
Workplace health examination rate:
100%
Regular inspection and maintenance rate of equipment andinstruments:
100%Work safety cost input guarantee rate:
100%
AccidentOccurrence andReportingAccidentOccurrence andReportingAccident AnalysisAccidentReportingAccidentHandling
The Company divides the accidents into three categories according to theaccident injury and accident grade. After occurrence of the accident, therelevant departments shall report it to the Administration Department within theprescribed time and report it to the Company in the form of written materials.
The accident is handled according to the "four principles" that the cause ofthe accident should be identified, the responsibility for the accident shouldbe seriously handled, the employees should be educated, and the normativemeasures to prevent the accident should be implemented.
The investigation team shall be formed on the basis of the requiredexpertise and disinterest in the accident investigation.The cause of occurrence/escalation is identified through investigation andanalysis, and then the responsible person is determined.The responsible unit and the investigation team summarizes the cause,responsibility and summary report of the accident.
Safety Training
Forklift Safety Education and Training
Employee safety and safety awareness is an important part of the Company hasalways attached importance to and invested in. The Company has launched a series oftraining programs around safety, and offered online courses such as "Fire SafetyKnowledge", "Hazard Source Identification and Risk Control", "Safety Education andTraining for New Employees" and "Company Traffic Safety Knowledge Training"for all employees. The number of visitors and learners in 2023 reached 2,147.According to the safety risk level, the Company takes the training programs with highrisk registration as the mandatory courses for the relevant departments and personnel,and arranges simulation exercises according to the training content.
Forklift safety education and training is to cultivate the safety awareness and operation abilityof operators by introducing the types of vehicles in the field, clarifying the requirementsbefore forklift operation, and emphasizing the safe driving rules of forklift trucks, andconsolidate the learning effect through typical case study.
Daily Safety Training for External Construction Workers
The Company requires all external construction workers to receive daily safety training forexternal construction workers on work permits, sources of hazards, emergency handlingmethods, protective measures during labor and regulations on rewards and punishments.Safety Training for Working at Heights
Through typical accident cases of working at height, the training is to illustrate the commondangerous practices and correct operation norms of working at heights for the purpose ofadvance prevention and intervention of high altitude risk matters.
Hazard Source Identification and Risk Control Safety Training
By understanding the classification of hazard sources, the trainees can further understand thespread, causes and effects of hazard sources, and further clarify the risk management normsand processes of hazard sources to prevent the possibility of extraordinary hazard sourcesfrom the root.
Fire Safety Knowledge Training
Trainees can learn about the common cases of fire accidents, the basic measures of fireprevention and the common sense of fire prevention in houses and factories and otherscenarios, and further analyze the fire extinguishing measures and prevention and controlmeasures in different scenarios to eliminate fire safety hazards.
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In order to ensure the safety of the Company's property and personnel, and improve theresponse ability of the fire brigade personnel in the event of an emergency, LUSTERunfolded the fire lecture and evacuation drill according to the annual fire training plan onNovember 14, 2023. The Company hired professional lecturers to explain the basic
theoretical knowledge of fire fighting to the fire marshals of various departments and thesupport team marshals. Under the guidance of professional lecturers, the Companyconducted actual fire fighting training with fire extinguishers and outdoor fire hydrantsoutside the factory hall. Through this lecture and drill, employees have gained an in-depthunderstanding of fire safety knowledge, improved the actual fire rescue ability, and helped
strengthen the fire warning and fire safety awareness.
Fire Lecture/Evacuation DrillMajor Injury and In-plant Motor Vehicle Anomaly Drill
In order to prevent the occurrence of major injuries during transportation andunloading of motor vehicles, the Company launched a major injury and in-plantmotor vehicle anomaly drill program in Suzhou Warehouse Area. The drill was
participated by the relevant personnel of supply chain warehousing and plantmanagement. Through this complete drill simulating the emergency and rescuemeasures when major injuries occur in motor vehicles, the Company has strengthenedthe awareness of protection and rescue capabilities for major injuries. FireLecture/Evacuation Drill.
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On July 27, 2023, We unfolded theemployee heatstroke simulation exercisein the warehouse's shipment area. Afterthe warehouse employee suffered fromthe heatstroke, the warehouse cadresimmediately contacted the factory rescuepersonnel and notified the factory EHSto transfer the simulation employee tothe hospital after emergency treatmentby the first aid personnel. TheAdministration Department notified theaccident by email after the accidentinvestigation as a warning and reportedit to the supervisor of the ManagementOffice.
Heatstroke DrillEmployee Health
Prevention ofOccupationalHazards
Reduction ofOccupationalHazards
OccupationalHealthMonitoring
1. The construction projectsthat may cause occupationalhazards shall be entrusted to aqualified third partyorganization for pre-assessment of occupationalhazards and confirmation ofprotective measures.
2. The Human ResourcesDepartment shall clarifyoccupational hazards,consequences and preventivemeasures with employeeswhen they sign labor contractsand engage in work thatendangers health.
3. The site, equipment andpackaging with occupationalhazards shall be provided withwarning signs.
1. The production process shallbe mechanized, automated,closed and remotely controlledas far as possible.
2. Ventilation, detoxificationand dust removal facilities shallbe installed.
3. The maintenance ofequipment shall bestrengthened to reduce airleakage, bubbling, dripping andwater leakage of the equipment.
4. Personal protective measuresshould be implementedaccording to the hazard factors,such as wearing protectiveearplugs for employees in noiseareas during noise preventionand control.
1. The AdministrationDepartment shall providecorresponding occupationalhealth examination accordingto the occupational hazardfactors of each department.
2. Employees in toxic andharmful positions are requiredto undergo occupational healthexamination before taking thejob and after leaving the job.
3. The Company providesphysical examination forworkers working in weldingsmoke and noisy places, andon-the-job physicalexamination for all otheremployees.
4. The Human ResourcesDepartment establishes anoccupational health record forevery employee exposed tooccupational hazards.
Firefighting and
Rescue
Human resources are one of the most valuable resources of an organization, and thesafety of employees has always been the Company's top priority. To this end, theCompany has formulated a series of systems and norms such as the "OccupationalDisease Prevention and Management System", the "Occupational Disease HazardPrevention and Control Responsibility System", the "Occupational Disease HazardDeclaration System", the "Occupational Health Monitoring and file ManagementSystem", the "Occupational Hazard Protection and File Management System", and the"Maintenance and Repair System of Occupational Hazard Protection Facilities", andobtained the ISO14001 Certificate.
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In addition to the establishment of various systems and norms for the protection ofemployees, the Company regularly organizes medical checkups and gratuitousconsultation for employees, and sets up a variety of sports clubs in order to protect thephysical and mental health of employees.
2023 Health Responsibility Goals
Yuanke Vision and Shougang FundBadminton Friendship Match
Occupational disease incidence rate:
Employee occupational health examination rate:
100%
Workplace occupational hazard test rate:
100%
Certified work rate:
100%Stomatology GratuitousConsultation
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Establishment of HarmoniousWorkplace
Creating a Harmonious Environment
Office Environment
Dormitory Environment
Library Environment
Production Environment
A clean and comfortable office and production environment is essential to improvementof productivity. The Company implements 6S management norms in all office spaces,requiring the implementation of the six standards of "organization, rectification,sweeping, cleaning, literacy and safety" on all occasions to provide employees with acozy environment and comfort.
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Advocacy of Combining Work and rest
Employee Benefit ActivitiesHoliday Activities
Department Team Building and
Democratic Life Meeting
In order to enrich the employees' life and strengthen the team cohesion, the Company and various departments organize team building activities, holiday activities and employeebenefit activities in various forms, so that the employees can feel warmth and happiness.
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董事长致辞
走进凌云光2023 年度荣誉可持续发展组织贡献规范治理人才培养环境优
化
知识和理性是我们事业腾飞的翅膀
Knowledge and Reasons are Our Arms to Embrace the World!
Science and technology innovation products
lead the new ecologyGreen and low-carbon operations practicenew concept of environmental protection
Environmental
Protection
Innovation Driven Green DevelopmentChina is a global manufacturing power, and is at a critical moment of manufacturingreform. How to improve quality, increase efficiency and reduce waste in themanufacturing process is an important part of the reform and upgrading. The Companyadheres to the principle and concept of "promoting the development of the industry asthe responsibility". It's one of the first batch of machine vision enterprises in Chinataking the lead in introducing and learning advanced optical imaging, algorithmsoftware, information acquisition, digital network, big data analysis and othertechnologies. Integrating "light, machine, electricity, computing and software" throughthe use of industrial machines, the Company applies the advanced optical imagingtechnology, software algorithms, precision automation and other technologies to thefield of industrial manufacturing, adapts to the development trend of precisionmanufacturing, flexible manufacturing, intelligent manufacturing, so as to help realizethe transformation from traditional manufacturing to intelligent manufacturing, improveproduction efficiency and reduce production waste.
With the goal of helping customers realize zero defects in manufacturing, the Company'svision systems and intelligent equipment and other machine vision products are used inconsumer electronics, new energy, new display, printing and packaging, transportation,science and other downstream areas. Through the detection efficiency of up to 99% ofdefects in raw materials, manufacturing and factory testing, we have helped manycustomers solve the problem of serious waste of manufacturing resources.
Supporting the Reduction of Production Waste
Big Data AnalysisIntelligent Decision-Making
DigitalNetworking of
Production
Digitization ofInformationCollection
New Products in 2023:
20+High-end Vision Components Supplied:
50,000
Vision Components, Systems and Equipment:
20,000
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The middle frame of the mobile phone is called the "backbone" of the mobile phone,which is the frame that carries the various parts of the mobile phone, and its appearanceaccuracy affects the quality of the finished product to a large extent. In the past, theappearance inspection of the middle frame relied on manual visual inspection, resulting ina high missed detection rate, and a difficult guarantee in product yield. According to thecalculation of back-end product yield, the missed detection rate of manual visual
inspection is as high as more than 10%, resulting in huge waste.
There are about 88 test items for the middle frame of the mobile phone, and the smallest
defect is only 0.5 microns in diameter, which exceeds the limit of manual visualinspection. LUSTER launched the innovative mobile phone middle frame appearanceinspection device which can complete 88 tests in 5.5 seconds and detect defects as smallas 0.5 microns. One device can complete the original workload of 40-50 workers.Compared with the original manual visual inspection, the device reduces the defectdetection time by 97%, and lowers the missed detection rate to 5%, which greatlyimproves the efficiency of the product and the utilization rate of the material.
A Chinese flexible packaging leading enterprise relies on extensive materials and humanresources to support the high-frequency delivery of a large number of business orders ofthe Company, and has maintained a 10% performance growth for three consecutive years.It is generally recognized in the printing and packaging industry that a 3% waste rate will
cause enterprises to lose 30% of their profits. According to incomplete stahtistics, tereare 900 kilometers of wasted materials on the production line every day. Although the
volume of orders and the number of employees are increasing, the lack of systematicquality management, reliance on traditional labor, false alarms, omissions, concealingand other problems continue to erode corporate profits.
Based on years of practical experience, LUSTER applies the core requirements ofautomated labor reporting, loss reduction and quality management to all aspects of theprinting plant. The project combines a variety of data acquisition technologies with 48single-machine online monitoring system to achieve the closed loop of 156 equipment andMES system and quality management system in the customer workshop. With the help ofintelligent algorithms, functional automatic labor reporting is realized, and the dataaccuracy rate is 99%, which in a real sense puts an end to the "omission, concealing and
misreporting" of traditional reporting, realizes "0" error and leakage in material mixing,
and helps customers recover the "wasted" profit.
Artificial Intelligence Version of "Li Zhu"Supports Intelligent ManufacturingSaving RMB 200 Million for A FlexiblePackaging Customer a Year
During Mobile Phone Assembly
The smallest defect is only 0.5 microns in
diameter.
"See the slightest detail" from a greatdistance away
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Under the great pressure of quality and efficiency improvement, the leading photovoltaicglass enterprise (hereinafter referred to as Company A) has worked with LUSTER tobuild an intelligent factory, successfully realizing capacity upgrading and releasing 83%of the workload of visual inspection workers. The intelligent factory has been in stableoperation for more than one year, with no relevant quality complaints.LUSTER has developed the photovoltaic glass original detection and deep processingdetection solution. Through real-time detection and data analysis with the help of thequality management system, automated defect detection and classification has beenachieved. Meanwhile, quality big data has been collected, and the digital model of defectscale and the probability of busting correlation has been built, minimizing the operatingcosts of enterprises in the premise of ensuring the yield rate. Now 16 production lineshave been installed on the customer site, and each production line can reduce the
manpower from 3 employees/shift to 1 employee/shift.
As an ecological partner of FII, Yao Yi, Chairman and President of LUSTER, was invitedto attend the Summit Roundtable Forum, and discussed China's Path to the Lighthouse
Factory together with Huang Pei, CEO of E-works Digital Enterprise Network, Wu Tong,
Head of Advanced Manufacturing in Greater China of the World Economic Forum (WEF),Liu Zongchang, Chief Data Officer of FII, and Zhao Yuekai, co-founder of Agile Robots.Yao Yi, Chairman and President of LUSTER, said that LUSTER has set up a joint venturewith FII and developed more than 300 pieces of equipment together. If we want to build100% unmanned chemical plants in the future, advanced optical imaging, software andalgorithms, and automation are essential. Deeply engaged in the industry for more than 20years, LUSTER machine vision has begun to move towards various applications in largequantities. Over the past five years, LUSTER has provided 300,000 sets of visionequipment and 100,000 sets of vision systems for various industries, helping enterprisesliberate the hard-working and dexterous front-line workers.
Together with 20 ecological partners such as LUSTER, FII has launched the LighthousePilot Program, committed to incubating new business models and new industrial ecology,
and realizing sustainable lighthouse piloting benchmarking demonstration.
Photovoltaic Glass Leader Realizes EnergyConservation and EfficiencyDiscussing China's Path to the LighthouseFactory Together
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Sustainable Innovation and Development
The Company regards intellectual property rights as one of the driving forces forinnovation and development, attaches importance to intellectual property protection andR&D innovation, and encourages employees to be creative and creative. The Measuresfor the Administration of Intellectual Property have been formulated to clarify the scopeof intellectual property management, power ownership, management requirements andincentive policies and issuance standards, stimulate employees' awareness of innovation,and lead employees in practice innovation.
Technology Innovation Achievements in 2023
Cumulative Total of Patents:
Cumulative Patents for Inventions:
Cumulative Patents for Utility Models:
Cumulative Design Patents:
Cumulative Software Copyrights:
Cumulative Trademarks:
Total Patents of the Year:
Patents for Inventions of the Year:
Patents for Utility Models of the Year:
Design Patents of the Year:
Software Copyrights of the Year:
Trademarks of the Year:
Cameras & Components
Visual System
Intelligent Equipment
3D camera: The 3D camera based on surface structured optical codec technology and triangulation principle for3D point cloud reconstruction offers a depth measurement range of ± 6mm, a Z repeatability of 0.5μm, 5Mpixels under the frame rate of 3fps, widely used in the 3C electronics industry, semiconductor industry,automotive industry, as well as various types of small and medium-sized parts.
The Company regards product innovation as its core competitiveness. In the face of thedevelopment trend of "multi-mode integration, embedded, and high precision", theCompany continues to invest in underlying technologies such as "advanced imaging,software algorithm, automation" and application products in the industry, launchesmany new products in consumer electronics, new energy, meta-universe and otherindustries. Efforts have also been made to continuously optimize products andsolutions, enhance the competitiveness of the industry, and meet the requirements ofdiversity and differentiation of customers.
Wide spectrum short-wave infrared camera: the camera adopts Sony IMX990 chip andTEC2 refrigeration, offers
a product resolution of 1280x1024, a small pixel size of 5?m and wide spectral range of 0.4~1.7μm and supportsa variety of image processing algorithms, widely used in university scientific research, space opticalcommunication, brain science and spectral imaging and other fields.Solar cell PL detection module: Based on the principle of photoluminescence, the module provides a non-
destructive and contact-free innovative detection scheme for solar cells. The detection accuracy rate is 99% andthe misjudgment rate is < 1% for defects such as hidden cracks, dirt, fog blackness, suction disc mark and beltmark of solar cells.
Glue spot check integrated detection system: easy to install and easy to check: quick installation within 10
minutes and imaging debugging within 10 minutes, this is a great improvement compared to installation in dozensof hours or even days in the past. Meanwhile, the system also provides 999 kinds of scenario formulas, covering70% of the glue inspection application scenarios.The whole plant production management system of loading paper: In view of the untimely and inefficient loading
paper management, the system is launched to realize four closed loops of order, production, quality and defectcontrol. It can display the production process in real time, realize the digitization and transparency of theproduction process, and fundamentally unblock the process.
A new generation of offline quality inspection system: after installing the new software VisionPrint7, the
software upgrades have led to a significant increase in hardware performance, realizing the efficacy of one-keyresolution switching and non-stop modification of template parameters.
Lithium electrode burr full inspection equipment: The self-developed optical focus tracking technology and AI
high-precision image processing are used for inspection, realizing 2 micron defect detection under 150m/minhigh-speed production.
Lithium battery appearance inspection equipment: Through high-precision optical calibration and AI algorithm
support, the common depression defects in the industry are divided into 10 levels, and the accuracy is greater than95%, the detection accuracy can reach 0.01 square millimetre, and the efficiency is increased by 50% and thequality traceability is achieved by AI rejudgment.
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RMB460 million
R&D Investment
number of R&D personnel
Green and Low-carbonOperationsThe Company strictly abides by The Law of the People'sRepublic of China on Prevention and Control of WaterPollution, The Law of the People's Republic of China onPrevention and Control of Environmental Noise Pollution,The Law of the People's Republic of China on Preventionand Control of Environmental Air Pollution, The Law ofthe People's Republic of China on Prevention and Controlof Environmental Pollution by Solid Wastes, The NewEnvironmental Protection Law and other laws andregulations. The Company has further established a systemand control measures on the main contents of the EHS incategories and grades. In terms of environmental protection,we have established a series of systems and norms forinternal environmental control and effective utilization ofresources, such as the Resource and Energy ManagementSystem, the Garbage Classification Management System,the Administrative Regulations on Exhaust Gas,Wastewater and Noise, the Administrative Regulations onWaste, and the Administrative Regulations on Chemicals.In 2023, five enterprises with production qualificationunder LUSTER have been certified by the ISO14001Environmental Management System.
Enterprises Certifiedby the ISO14001EnvironmentalManagement System
Emissions Management
Waste Gas EmissionsSources of Waste Gas?Fume from welding in the spot welding process in the clean room?Unorganized waste gas emissions from the workshop
Preventive Measures
?The fume generated by electric welding is absorbed by the gas collecting device through the activatedcarbon for adsorption and filtration, and the filtered waste activated carbon is sent to a qualifiedprocessor for treatment.?Strengthened workshop ventilation and air exchange measures by the Company?The hazardous factors of the waste gas emission port outside the workshop and the exhaust gas inside
the workshop are monitored every year, and when the emission concentration is found to exceed thestandard, the relevant departments will be called together to analyze and deal with it until the emissionstandard is met.
Emission Standards
The Integrated Emission Standard of Air Pollutants, and The Emission Standard for MalodorousPollutants
The Company's industry does not fall into high-emissions and resource-consumingindustries. Within the existing business scope, the Company makes every effort toreduce the impact on the environment by standardizing the emissions of noise,wastewater, waste, chemicals and garbage generated by production.
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Total Volume of Waste Gas in 2023:
240,000cubic metersTotal Domestic Wastewater in 2023:
6,206tonsTotal Waste in 2023:
3.75tonsWastewater Discharge
Waste Management
Noise Emissions
Sources of Wastewater?Domestic wastewater such as toilet water and cleaning wastewaterPreventive Measures?The relevant departments avoid or reduce the use of facilities and installations that generate wastewater
as far as possible.?Qualified third-party testing is organized every year.?Signs must be posted at all final discharge outlets.
Emission Standards?Pollutant Discharge Standards for Urban Sewage Treatment Plants and Water Quality Standards for
Sewage Discharge into Urban Sewers
Corporate waste is categorized into non-recyclable waste, hazardous waste, andrecyclable waste according to the method of disposal and use.Non-recyclable waste: household garbage or other solid or liquid waste that does not
pollute the environment
Hazardous waste: waste generated by business activities that is toxic, hazardous, and inconcentrations or quantities sufficient to affect human health or pollute theenvironment
Recyclable waste: waste that can be recycled after treatment
Sources of Noise?Drilling machines, lathes, grinders, air compressors, welding exhaust purifiers, etc.
Preventive Measures
?Use low-noise equipment as much as possible, and install soundproof enclosures for equipment that
generates a lot of noise.?The control manufacturing department is responsible for the daily operations and regular maintenance
of the equipment; when the equipment breaks down, it should be repaired as soon as possible.?Close the windows and doors of the equipment as much as possible when the equipment is in operation.Emission Standards?Noise Emission Standards for Factory Boundaries of Industrial Enterprises
WasteRecyclable waste
Non-recyclable
waste
Hazardous wasteTemporary storage in theAdministration DepartmentDisposal by qualifiedprocessorsWaste storage siteRecycling andtreatment plant
Removal by qualifiedprocessors
Waste Classification
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Chemical Management
The Company regulates the management of hazardous chemicals in accordance with the Regulationson the Safe Management of Hazardous Chemicals and the Regulations on the Administration ofPrecursor Chemicals, in order to prevent and reduce safety and environmental accidents of hazardouschemicals and to protect the health and safety of employees.
?The Administration Department investigates the chemicals used by theCompany and establishes the List of Chemicals.?Hazardous chemicals in the List of Chemicals shall be registered on the
local environmental authority website as required by the Regulations.
?The warehouse keeper shall check and verify packaging and labeling
before warehousing.?Chemical supplies shall be stored in storage areas and explosion-proof
cabinets, in which adsorbent cotton, rags and sand for emergency use
should be placed.
?Disposal in accordance with the Waste Management System?Chemical-contaminated items (cloth, gloves, containers, etc.) should be
treated in the same way as chemical waste when discarded.
?Safety precautions and specialized equipment are required, and good
ventilation equipment should be provided.?Individual users must strictly observe all safety systems and operating
procedures.
?Requests for chemicals shall be based on actual usage, and containers of
purchased hazardous chemicals must be clearly labeled in accordance
with national regulations.?For new chemicals, information on Material Safety Data Sheets (MSDS)
should be requested from the supplier at the time of purchase.?Delivery to the Company by the supplier; the Company needs to sign
the Environmental Safety Agreement with the supplier to affect its
environmental safety in the transportation process.
At 13:50 PM on June 20, 2023, asimulated chemical packing leakexercise was conducted at WuzhongMachining Room in Suzhou. Theearly warning exercise involvedchemical operators wearing gloves,masks and goggles, using adsorptioncotton to adsorb the leaked solvent,prevent diffusion, and restore thescene.
Chemical LeakExercise
Establishment of
List ofChemicals
Procurement
Transportation
Storage
Use
Disposal
LUSTEREHS KnowledgeWhat is EHS?EHS is short for Environment, Health and Safety. EHS is theintegration of ISO14001 (Environmental Management System)and ISO45001 (Occupational Health and Safety ManagementSystem). The Environmental & Occupational Health and SafetyManagement System is referred to as the EHS managementsystem.
What are the EHS policies of the Company?Safety Policy: Safety First, Prevention Foremost, EffectiveMonitoring, Cyclic Improvement; Environmental Policy:
Pollution Elimination and Energy Conservation; OccupationalHealth Policy: Safety First, Accident Prevention, Giving back toEmployees and the Society, Compliance with Laws andRegulations, and Continuous Improvement.
What are the EHS goals of the Company?Safety Goal: Zero Safety Accident; Environmental Goal: ZeroEnvironmental Pollution; Occupational Health Goal: ZeroOccupational Health and Safety Accident.
By the Administration Department
EHS Environmental Basics
TrainingTrainees in 2023:
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Energy Management
Board ofDirectors
GeneralManagerAdministration
DepartmentBusiness
Units
Functional
Units
The Company promotes energy-saving measures and concepts at all levels of the office operation, production and employees' daily lives. In corporate operations, we activelypractice green environmental protection, and follow the principle of "use less, frugally and efficiently" when using various types of consumable energy such as water resources,paper, electricity and fuel, so as to minimize the consumption of energy. The General Manager of the Company is responsible for approving and leading the overall energy-savingand consumption-reduction goals; the Administration Department is responsible for coordinating the use and management of energy and resources, and each department sets energy-saving indicators for energy and resources used in the department and supervises the implementation.
ResourceType
Energy Conservation Measures
Monitoring Measures
?Departments and related personnel should pay attention to
the proper amount of water consumption to avoid waste. ?When water can be used intermittently, the valve should beclosed or turned off.?The water valve must be closed after using water.?If a department notices water pipe breakage or infiltration, it
shall immediately notify the Administration Department forrepair.
?The Administration Department
shall conduct a monthlyinspection of water pipes.?We conduct weekly inspections
of all areas to address waterwastage in a timely manner.
?Before printing or copying, documents should be previewed
to prevent printing or copying errors that could result inwaste.?Reduce consumption of paper resources by using telephones,
computers, etc. as much as possible.?Used paper instead of blank A4 paper should be used as draft
paper.?Temporary documents should be printed double-sided on
recycled paper.
?The Administration Department
counts the Company's paper
usage once a month.
?The air conditioner in the area should be turned off in time
during the noon break or before getting off work.?The lights should be turned off when employees leave, and
local lighting should be used for local work.?Promptly turn off power to equipment and appliances not in
use?The indoor temperature should not be lower than 26°C in
summer or higher than 20°C in winter.
?Enhanced maintenance of
equipment and electrical circuits?The Administration Department
verifies the power consumption
once a month.
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Energy Conservation Promotion
Total corporate water consumption of the year:
19,018 tonsTotal gas consumption of the year:
81,632 m3Total corporate power consumption of the year:
4.06 million kWh
In order to publicize the awareness of energy conservation and emphasize the concept ofenergy conservation, the Company played the "Proposal on Diligence and Frugality” on thepropaganda screen on a loop on each floor in 2023, calling for "energy conservation andemission reduction, energy consumption reduction, total involvement, and opposing waste",classifying daily life and office operation according to the use of energy scenarios andlisting energy conservation measures. Meanwhile, the Company posted energy conservationsigns in various places such as air conditioners, light switches, water dispensers, hand washsinks, and printers, and installed Bull timing sockets on each floor to lead energyconservation, popularize energy conservation measures, and minimize the consumption ofresources.
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Giving back to the Communitywith LoveBuilding Industrial Ecology
Formulation of Industry Standards"White Paper on Industrial Intelligence"
Industry Sharing Activities
In June 2023, LUSTER Industrial Artificial Intelligence Innovation and Development Summitwas successfully concluded in Wuzhong, Suzhou. Industry pioneers, partner customers andbusiness elites from the manufacturing field gathered to talk about the new ecological prospectsof intelligent manufacturing industry and draw a new chapter of intelligent manufacturing.At the summit, Yao Yi, Chairman of LUSTER, Zhao Yan, CTO of LUSTER, Lou Yangbing,Chief Scientist of AIMS, and Shi Zhe, Chief Digital Officer of Foxconn, respectively made akeynote speech on the development of artificial intelligence. They talked about the new trend ofintelligent manufacturing, discussed the development status, main problems and solutions ofintelligent manufacturing, conducted an in-depth analysis on the importance of digitization of thewhole process elements such as high-quality data, zero defects and man, machine, material,method, and environment in intelligent manufacturing, and explored the development possibilitiesand future application directions of artificial intelligence technology.
2023 Global Artificial IntelligenceTechnology Conference
Promoting the development of the industry as the responsibility has always been one ofthe business principles of the Company. The Company actively participates in theconstruction of the industry, builds industry standards and industry ecology throughjoint collaboration, promotes the construction, co-prosperity and sharing of theindustry as a whole, and creates a better society through science and technology.
The preparation of "White Paper on IndustrialIntelligence" is led by the China Academy of Informationand Communications Technology and participated by anumber of organizations, including LUSTER LightTechCo., Ltd.(stock code: 688400). The "White Paper onIndustrial Intelligence" focuses on the latest progress anddevelopment trend of industrial intelligence application,and provides a detailed introduction to the scenarios ofmachine vision industrial inspection, intelligent factorymanagement, robot-assisted manufacturing, etc. Itconducts an in-depth research on the integration andinnovation application of industrial intelligence in theindustry from the dimensions of system connotation,technology, application, and industry, which will guidethe direction of the industry to realize the leap in theeffectiveness of intellectual manufacturing."2023 Research Report on Metaverse Industry Mapping"On September 22, 2023, "Trusted Metaverse Development Conference" was successfully held inBeijing. It was hosted by the Cloud Computing and Big Data Research Institute of the China Academyof Information and Communications Technology, and organized by Metaverse Innovation ExplorationMatrix and TC602 of the China Communications Standards Association. At the conference, Wei Kai,deputy director of the Cloud Computing and Big Data Research Institute of the China Academy ofInformation and Communications Technology, released the "2023 Research Report on MetaverseIndustry Mapping", and LUSTER was one of the participating units.
The Company's business spans the two directions of machine vision and culturalmetaverse. In these two fields, the Company led the "Industrial Artificial IntelligenceInnovation and Development Summit" and "2023 China metaverse Conference" andother industry conferences in 2023, sharing the path and key technologies of thedevelopment of China's artificial intelligence and metaverse, and promoting thecommon development and progress of the industry.
Summit in Taihu Lake: Discussing the New Trend of
Intelligent Manufacturing
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On December 23, CMC 2023 China metaverse Conference, part of the 2023 ZGC Forum activities,was successfully held in the Curling Hall of Shougang Park. This conference was guided by theZGC Forum Office, co-sponsored by the Chinese Association for Artificial Intelligence and thePeople's Government of Shijingshan District, Beijing, and co-organized by CAAI Meta-universeTechnology Specialized Committee, China Mobile Migu, LUSTER, Yuanke Fangzhou, andShoujian Investment. In the spirit of open and diversified communication and cooperation, thisconference gathered resources from all walks of life to talk about new insights and trends of meta-universe industry, share the latest academic researches on meta-universe and practice of cutting-edge application scenarios. It provided useful reference for the promotion of future industrialtechnological innovation and integration development, and made positive contributions topromoting the steady development of China's metaverse industry and accelerating the integration ofdigital economy and real economy. Next efforts will be made to further strengthen cooperation andlinkage, implement cooperation results, and fully promote the construction of metaverse industrialclusters.
2023 China metaverseConference
Science and Technology Benefit the Society
In the program "Mountains, Rivers and Poems of
Chang'an" at the Spring Festival Gala, Yuanke
Vision, a wholly-owned subsidiary of LUSTER,
utilized the FZmotion optical motion capturesystem to provide stable and accurate motion data
support for the animated performance of "Li Bai"in the AR scene of the mobile terminal. The
combination of motion capture technology andreal-time animation rehearsal can promptly adjust
the performance status of action capture actors tomeet the requirements of animation roles, achieve
"what you see is what you get", and improve thequality and efficiency of the overall projectdelivery of the Spring Festival Gala!In the creative dance "Koi", the real-time rendering
virtual system provided by Yuanke Vision, a
wholly-owned subsidiary of LUSTER, brought theaudience a fabulous visual feast combining humanand scenery, vividly restored the graceful posture
of koi in the water, and perfectly presented the
good wishes of richer and richer and good luck.
Built a Digital Intelligence Creative Stagefor the Spring Festival Gala
Since 2023, the company has helped create a large number of programs, film andtelevision works and other typical works through cooperation with CCTVHeadquarters, Migu, film and television producers, and successfully "reproduced" thegrand view of Tengwang Pavilion with digital technology to create a number of lifelikeimages. Through cooperation with China Media Group, Migu, film and televisionproducers, the Company has created a large number of programs, film and televisionworks and other typical works since 2023, and successfully "reproduced" the grandview of Tengwang Pavilion with digital technology, and presented a number of lifelikeimages.
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During the Two Sessions in 2023, the specialpioneer dialogue program "Wonders of China"hosted by C launched three live broadcasts,talking about the Milky Way of the universeand the rapid development of science andtechnology, analyzing the increasinglyvigorous national instruments, and interpretingthe hot artificial intelligence ChatGPT. CCTVnetwork virtual anchor C worked withLUSTER and brought a hardcore interviewlive experience of XR virtual reality fusion.
Joined Hands with Virtual Anchor C to Empower theLive Broadcast of the Two Sessions
The New Technology of Virtual Shooting in the GoldenRooster Venture Capital Science Fiction Film
On the afternoon of November 25, 2023, the opening ceremony of the Cultural Festival of theRepublic of Kazakhstan and the launch ceremony of the China-Kazakhstan Youth Friendship DigitalFigures were held in Beijing. During the event, the short video film "Just like You" was officially
released, marking the debut of China-Kazakhstan Youth Friendship Digital Figures. The technicalsupport of digital figure construction is provided by the optical field common technology platformunder the guidance of Beijing Municipal Science and Technology Commission and ZhongguancunAdministrative Committee. The platform construction is led by LUSTER and Migu.In the debut video, the two digital young people show their indomitable spirit in the face of setbacksand confidence on their hobbies, bravery to break traditions and seek innovative thinking modes. The
image of China-Kazakhstan youth friendship figures symbolizes the profound friendship between theyoung people of the two countries, and the two young figures will also start their own digital life.
High-quality Belt and Road Cooperation
Yuanke Vision, a wholly-owned subsidiary ofLUSTER, was invited to participate in theGolden Rooster Venture Capital Conferencein 2023 as a virtual shooting technicalsupporter for the Top 5 Science fiction FilmProjects.
The production of this pilot concept film issupported by the virtual shooting technologyof Yuanke Vision, which allows the director
to give the rein to his unique science fictioncreativity and imagination in the project, and
is realized by virtual shooting, providing the
creator with greater creative freedom and
greatly improving the production efficiency.
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Care for the Elderly
In order to start the Nursing Home Reconstruction Project, the cornerstone layingceremony of the Nursing Home led by the local government was held. The President Officeof the Company attended the cornerstone laying ceremony of Xichong County QingshiTown Nursing Home on behalf of the Chairman.
Cornerstone Laying Ceremony ofthe Nursing Home
Produced by the State Key Laboratory of the China Media Group in cooperation with LUSTERYuanke Vision, the cultural tourism metaverse promotional film with Wang Bo as the maincharacter story—"Return of Wang Bo" was released at the 2023 World Conference on VRIndustry. The three-minute short film reproduced the style of Wang Bo, the head of the FourGreat Poets in the Early Tang Dynasty. With the help of large-scene intelligent light field
reconstruction technology, the magnificent vigor of the ancient building—Tengwang Pavilionwas reproduced on a scale of 1:1. People were amazed at the beauty of the architecture featuring
"cornices and brackets towering in the clouds, carved beams and painted buildings throughoutthe ages"!In the short film, LUSTER Yuanke Vision vividly reproduced the poet "Wang Bo" who wasamazed at the beautiful view in the pavilion based on UE5.2+Rivermax ST2110 new XR&VP
architecture.
"Reproduced" the Grand View of TengwangPavilion with Digital Technology
Dr. Yao Yi, Chairman of LUSTER, donated to the nursing home for two consecutiveyears, showing his care and blessings for the elderly. The donation of RMB 1.5 millionmade in his personal name was intended to rebuild the nursing home in 2023, so thatthe lonely elderly could have a home and embrace love.
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Appendix I Key Performance Data
Sub-item
Indicator
Unit
2023
2022
EconomicPerformance
Direct economic value
RMB million
2,641
2,749
Total assets
RMB million
5,085
5,014
Cash dividends
RMB million
Basic earnings per share
RMB/share
0.35
0.46
GovernancePerformance
Number of training sessions on anti-corruption
session
\
Number of employees participating in anti-corruption training
person
\
Total hours of anti-corruption training receivedby employees
hour
\
Number of internal corruption reports received
session
\
Anti-Corruption projects
project
\
Total number of confirmed incidents ofcorruption
incident
\
Legal proceedings for confirmed incidents ofcorruption
proceeding
\
Environmental Performance
Emissions
Total greenhouse gas emissions
Ton
Scope 1 greenhouse gas emissions
Ton
Scope 2 greenhouse gas emissions
Ton
Total amount of exhaust gases
10,000 m
Tin and its compounds (ND)
mg/m
1.7*10-5
1.8*10-5
Non-methane hydrocarbon
mg/m
0.35
1.2
Total domestic wastewater
Tons
6,206
5,187
PH
Dimensionless
7.4-7.5
7.4-7.5
Suspended solids
mg/L
CODcr
mg/L
Ammonia nitrogen
mg/L
24.6
30.9
Sub-item
Indicator
Unit
2023
2022
EnvironmentalPerformance
Total phosphorus
mg/L
3.61
3.14
Total waste generated
Ton
3.747
1.503
Total non-hazardous production waste
Ton
3.56
1.5
Cardboards
Ton
1.30
0.3
Plastics
Ton
0.76
0.4
Pallets
Ton
1.50
0.8
Density of non-hazardous production waste
T/RMB 100 million of
revenue
0.13
0.55
Total hazardous solid waste produced
Ton
0.187
0.003
Waste activated carbon filters
Ton
0.006
0.003
Waste packaging drums
Ton
0.01
\
Waste rags and circuit boards
Ton
0.171
\
Intensity of hazardous solid waste
T/RMB 10,000 of revenue
0.007
0.0001
Use of resources
Total electricity consumption
KWh
Power density
kWh/RMB 100 million of
revenue
15.37
14.33
Total natural gas consumption
m
81,632
102,040
Density of natural gas consumption
m3/RMB 100 million of
revenue
3090.95
3711.90
Total water consumption
m
19,018
17,103
Density of total water consumption
m3/RMB 100 million of
revenue
720.11
622.15
Employment
Number of employees hired
person
1,981
2,060
Classification by gender
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Sub-item
Indicator
Unit
2023
2022
SocialPerformance
Male
person
1,584
1,628
Female
person
Classification by type of employment
R&D personnel
person
Production personnel
person
Sales personnel
person
Financial personnel
person
Procurement personnel
person
Administrative personnel
person
Technical support personnel
person
Classification by age
30 and below
person
31-40
person
1,131
1,069
Above 40
person
Classification by educational background
Associate Degree and below
person
Bachelor's Degree
person
Master's Degree
person
Doctorate Degree
person
Employee turnover rate
%
22.17%
20.83%
Turnover rate by gender
Turnover rate of males
%
22.79%
21.83%
Turnover rate of females
%
19.78%
17.11%
Sub-item
Indicator
Unit
2023
2022
SocialPerformance
Turnover rate by age
30 and below
%
26.64%
22.60%
31-40
%
19.27%
20.80%
Above 40
%
21.33%
11.76%
Talent Training and Development
Amount of training investment
RMB10,000
Total training hours
hour
22,946
26,984
Annual training hours
hour
22,946
26,985
Total number of trainees
person
2,068
2,534
Number of online participants
person
1,443
2,016
Number of offline participants
person
Number of trainees by employee rank
Senior management
person
Middle management
person
Ordinary employees
person
1,500+
1,100+
Number of new trainers during the year
person
New trainers by gender
Male
person
Female
person
Total number of training courses
course
Employee Health and Safety
Percentage of employee social security
%
100%
100%
Percentage of employees with supplementarymedical care
%
100%
100%
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Sub-item
Indicator
Unit
2023
2022
SocialPerformance
Number of occupational disease cases
Case
Work-related deaths
Case
Management of industry chain related parties
Percentage of suppliers signing anti-corruptionagreements
%
66.3%
47.8%
Supplier Training
supplier
Customer Complaint Density
Complaint/Uni
t
0.07
0.09
Complaint Closure Rate
%
100%
100%
Customer Satisfaction
%
Number of Product Quality Improvements
improvement
1,462
1,650
Number of Product Quality Closed-loops
closed-loop
1,345
1,435
Closure Rate for Product Quality Problems
%
92%
87%
R &D Innovation
Amount of R&D Investment
RMBmillion
R&D Expense Ratio
%
22.33%
13.67%
R&D Headcount
persons
Proportion of R&D Headcount
%
39%
40%
Proportion of R&D Headcount by Educational Level
Proportion of Undergraduates and Below
%
52.90%
58.62%
Proportion of Postgraduates
%
45.69%
39.32%
Proportion of Doctors
%
1.42%
1.57%
Number of New Patents
patent
Total Number of Patents
patent
Sub-item
Indicator
Unit
2023
2022
SocialPerformance
by Patent Type
Patents for Inventions
patent
Patents for Utility Models
patent
Design Patents
patent
Software Copyrights
copyright
Trademarks
trademark
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Appendix II Index of GRI Indicators
Instructions for UseThe information cited in this GRI Content Index is reported by LUSTER with reference to the GRI Standards from January 1, 2023 to December 31, 2023
GRI1 UsedGRI 1: Foundation 2021
GRI Standards
Disclosed Item
Index Section
Index Page
GRI2: General Disclosures 2021
2-1
Organizational Details
About LUSTER
2-2
Entities included in the organization's Sustainable Development Report
About LUSTER
2-3
Reporting Period, Frequency of Reporting and Contact Person
About This Report
2-4
Restatement
Key Performance Data
67-69
2-6
Activities, Value Chains and Other Business Relationships
A Responsible Supply Chain
Responsible ProductsResponsible Brands
18-26
2-7
Employees
Talent Training
24-39
2-9
Governance Structure and Composition
Corporate Governance
28-29
2-10
Nomination and Selection of the Highest Governing Body
Corporate Governance
28-29
2-12
Role of the highest governance body in overseeing the management of impacts
Corporate Governance
28-29
2-13
Delegation of responsibility for managing impacts
Corporate Governance
28-29
2-14
Role of the highest governance body in sustainability reporting
About This Report
2-17
Collective knowledge of the highest governance body
Corporate Governance
28-29
2-22
Statement on Sustainable Development Strategies
Sustainable Development Analysis and Actions
Sustainable Development Goals
12-13
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GRI Standards
Disclosed Item
Index Section
Index Page
2-23
Policy commitments
Organizational Contribution
Regulating GovernanceTalent TrainingEnvironmental Protection
18-65
2-24
Integration policy commitments
Organizational ContributionRegulating GovernanceTalent TrainingEnvironmental Protection
18-65
2-25
Procedures for remedying negative impacts
Stakeholder Communication
2-26
Mechanisms for seeking advice and raising concerns
Stakeholder Communication
2-27
Compliance with laws and regulations
Corporate GovernanceCompliance Operation
28-31
2-29
Approach to stakeholder engagement
Stakeholder Communication
GRI3: Material Issues 2021
3-1
Process for Identifying Material Issues
Analysis of Material Issues
3-2
List of of Material Issues
Analysis of Material Issues
GRI201: Economic Performance 2016
3-3
Management of Material Issues
Key Performance Data
67-69
201-1
Direct Economic Value Generated And Distributed
Key Performance Data
201-2
Defined Benefit Plan Obligations and Other Retirement Plans
Human Rights Protection
GRI202: Market Performance 2016
3-3
Management of Material Issues
Talent Attraction and RetentionResponsible ProductsResponsible Brands
18-25
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GRI Standards
Disclosed Item
Index Section
Index Page
GRI205: Anti-Corruption 2016
3-3
Management of Material Issues
Compliance Operation
30-31
205-1
Operations Assessed for Risks Related to Corruption
In-corruption Risk Prevention
30-31
205-2
Communication and Training about Anti-corruption Policies and Procedures
Anti-Corruption Reporting
205-3
Confirmed Incidents of Corruption and Actions Taken
Anti-Corruption Reporting
GRI 206: Anti-competitive Practices 2016
3-3
Management of Material Issues
Building Industrial Ecology
63-64
GRI302: Energy 2016
3-3
Management of Material Issues
Energy Management
61-62
302-1
Energy Consumption within the Organization
Energy Management
61-62
302-3
Energy Intensity
Key Performance Data
302-4
Reduction of Energy Consumption
Energy Management
61-62
GRI303: Water Resources and Wastewater 2018
3-3
Management of Material Issues
Green and Low-carbon Operations
58-60
303-1
Interactions with water as a shared resource
Emissions Management
58-60
303-2
Management of water discharge-related impacts
Emissions Management
58-60
303-4
Water discharge
Wastewater Discharge
303-5
Water consumption
Emissions Management
58-59
GRI306: Waste 2020
3-3
Management of Material Issues
Green and Low-carbon Operations
58-60
306-1
Waste generation and significant waste-related impacts
Waste Management
306-2
Management of significant waste-related impacts
Waste Management
306-3
Waste generated
Green and Low-carbon Operations
306-5
Waste diverted from disposal
Green and Low-carbon Operations
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Disclosed Item
Index Section
Index Page
GRI308: Supplier Environmental Assessment 2016
3-3
Management of Material Issues
A Responsible Supply Chain
20-22
308-2
Negative environmental impacts in the supply chain and actions taken
A Responsible Supply Chain
20-22
GRI 401: Employment 2016
3-3
Management of Material Issues
Talent Attraction and Retention
38-42
401-1
New employee hires and employee turnover
Talent RecruitmentKey Performance Data
67-68
401-2
Benefits Provided to Full-Time Employees that are Not Provided to Temporary orPart-Time Employees
Human Rights Protection
401-3
Parental Leave
Human Rights Protection
GRI 402: Labor/Management Relations 2016
3-3
Management of Material Issues
Human Rights Protection
GRI403: Occupational Health and Safety
3-3
Management of Material Issues
Employee Health and Safety
46-50
403-1
Occupational Health and Safety Management System
Safeguarding Employee SafetyWork Safety Accountability System
403-2
Hazard Identification, Risk Assessment, and Incident Investigation
Accident Investigation and Punishment Process
403-3
Occupational Health Services
Employee Health
49-50
403-4
Worker Participation, Consultation, and Communication on Occupational Healthand Safety
Employee Health
49-50
403-5
Worker Training on Occupational Health and Safety
Employee Health
49-50
403-6
Promotion of Worker Health
Employee Health
49-50
403-7
Prevention and Mitigation of Occupational Health and Safety Impacts DirectlyLinked by Business Relationships
Employee Health
49-50
403-9
Work-Related Injuries
Employee Health
GRI 404: Training and Education 2016
3-3
Management of Material Issues
Talent Training and Development
43-45
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GRI Standards
Disclosed Item
Index Section
Index Page
404-2
Programs for Upgrading Employee Skills and Transition Assistance Programs
Establishment of a Comprehensive Training System
43-45
GRI405: Diversity and Equal Opportunity 2016
3-3
Management of Material Issues
A Diverse TeamTalent Recruitment
405-1
Diversity of Governance Bodies and Employees
A Diverse Team
GRI 406: Anti-Discrimination 2016
3-3
Management of Material Issues
Human Rights Protection
GRI 408: Child Labor 2016
3-3
Management of Material Issues
Human Rights Protection
GRI409: Forced or Compulsory Labor 2016
3-3
Management of Material Issues
Human Rights Protection
GRI413: Local Communities
3-3
Management of Material Issues
Giving back to the Community with Love
63-66
413-1
Operations with Local Community Engagement, Impact Assessments, andDevelopment Programs
Giving back to the Community with Love
63-66
GRI414: Supplier Social Assessment 2016
3-3
Management of Material Issues
A Responsible Supply Chain
20-22
414-1
New Suppliers that were Screened Using Social Criteria
A Responsible Supply Chain
20-22
414-2
Negative Social Impacts in the Supply Chain and Actions Taken
A Responsible Supply Chain
20-22
GRI416: Customer Health and Safety 2016
3-3
Management of Material Issues
A Responsible Supply ChainResponsible Products
18-22
416-1
Assessment of the Health and Safety Impacts of Product and Service Categories
Responsible Products
18-22
416-2
Incidents of Non-Compliance Concerning the Health and Safety Impacts ofProducts and Services
Quality Management System
18-19
GRI418: Customer Privacy 2016
3-3
Management of Material Issues
Information Security Protection
32-33
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About This Report
Report Statement
Scope of ReportThe scope of the Report covers LUSTER and its subsidiaries forthe period from January 1, 2023 to December 31, 2023.
Reference StandardsThis Report has been prepared with reference to the United NationsSustainable Development Goals and the GRI Sustainability ReportingStandards, and in conjunction with the Rules Governing the Listing of Stockson Shanghai Stock Exchange STAR Market.
Data Source
The information and data used in this Report are obtained from relevant internaldocuments, statistical reports and financial reports. The data of the Financial Reportis consistent with the data of Audited 2023 Annual Report.
Review and Approval
This Report was reviewed and approved by the Board of Directors on April 26,2024.
Release of Report
The electronic version of this Report is available on the LUSTERInvestor Relations official account and the website of Shanghai StockExchange (www.sse.com.cn).Our contact information is as follows:
LUSTER LightTech Co., Ltd.Address: Knowledge and Rationality Building, Building 7, 13 Cuihu SouthRing Road, Haidian District, Beijing, ChinaE-mail: BODoffice@lusterinc.comFax: 010-52348666Tel: 010-52349555
This is the Environmental, Social and Governance ("ESG") Report of LUSTERLightTech Co., Ltd. (hereinafter referred to as " LUSTER" and the "Company"),which provides a comprehensive overview of the Company's sustainabledevelopment concept, work plan and practice progress in 2023.
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