2023Environmental, Social andGovernance (ESG) Report
002851.SZ
Shenzhen Megmeet Electrical Co., Ltd.
Sustainable DevelopmentManagement
1.1 Sustainability Strategy
1.2 Megmeet ESG Management
1.3 Speci?c Actions for Megmeet’s Contribution to the SDGs
1.4 Stakeholder Communication
1.5 Substantive Issues Management
Keeping the Heart andSoul of the Business
2.1 Corporate Governance
2.2 Compliance Operations
2.3 Business Ethics
2.4 Intellectual Property Protection
Showing Ingenuity andInnovative Development
Annual Theme: Megmeet - Green Everywhere
3.1 Green R&D and Innovation
3.2 Green Operation
3.3 Product Quality and Customer Service
Cohesion andCooperation
6.1 Optimizing Talent Management
6.2 Emphasis on Talent Training
6.3 Implementing Employee Care
6.4 Guarding Health and Safety
With Sincerity,Walking Together
7.1 Industry Development and Standard Setting
7.2 Cooperation of Industry-University-Research
7.3 Helping to Build Communities
Reliable and StableCooperation
5.1 Supplier Quality Management
5.2 Building a Stable Supply Chain
5.3 Empowering Supply Chain Partners
5.4 Supply Chain Sustainability Management
Toward Environmental Development,Being Environmental Pioneers
Megmeet Changsha Global R&D Center - Zero Carbon In Progress!
4.1 Environmental Management
4.2 Responding to Climate Change
4.3 Water Resource Management
4.4 Emissions and Waste Management
Preface
Report DescriptionChairman’s SpeechAbout MegmeetCompany’s 2023 Milestones
Conclusion
Future OutlookESG Key PerformanceIndex Table of Reporting StandardsList of Subsidiaries within the ReportSuggestion and Feedback
Contents
This is the fourth disclosure of social responsibility information and the third Environmental, Social and Governance (ESG) Report ofShenzhen Megmeet Electric Co., Ltd. to disclose to investors and stakeholders the actions and the results achieved by the Company inenvironmental, social and corporate governance.
As a technology-driven enterprise focusing on independent innovation, Megmeet hasbecome a renowned supplier in the ?elds of intelligent home appliance electronic controlproducts, power products, new energy and rail transit components, industrial automation,intelligent equipment, and precision connections, accumulating industry experience over theyears. The company provides ODM services for power electronic components and systems tomajor customers in various industries at home and abroad. Megmeet emphasizes multi-po-lar growth, risk balance, platform construction, and strives to balance the overall scale anddevelopment trends of various business segments, avoiding risks that may arise from cyclical?uctuations or business changes in any product line. In recent years, the company hasmaintained stable performance growth. In 2023, the company achieved operating income of
6.754 billion yuan, an increase of 23.30% compared to the same period last year; net pro?t
attributable to shareholders of the listed company was 629.3228 million yuan, an increase of
33.13% compared to the same period last year; and net pro?t attributable to shareholders of
the listed company after deducting non-recurring gains and losses was 355.4967 millionyuan, an increase of 39.02% compared to the same period last year. Among them, thecompany achieved rapid growth in the industrial automation, new energy vehicles, and railtransit sectors, and continued to maintain growth above the industry average in theintelligent home appliance electronic control sector, while other business segments alsosteadily developed. In recent years, the company has continued to strengthen research anddevelopment investment, constantly integrate upstream and downstream supply chains, andenhance comprehensive competitiveness. Its cooperation with leading customers in variousindustries at home and abroad has become increasingly extensive, with su?cient researchprojects and orders in hand, laying a solid foundation for the company's long-term stableoperation and continuous performance growth in the future.In response to the evolving landscape of multi-technology ?elds, Megmeet has showcased a strategic approach focused on comprehen-sive development and sustainable operations. Our commitment to innovation and technological advancement extends to prioritizing userexperience and environmental sustainability in product development. By integrating these elements into our processes, we aim to deliverproducts that are not only of higher quality but also environmentally friendly. Furthermore, Megmeet remains agile in addressing shiftingmarket demands by constantly re?ning our product mix and fostering closer collaborations with customers. Through technical exchangesand resource sharing, we enhance solution designs and o?er more holistic services to our customers, ensuring that we meet their evolvingneeds e?ectively.This year, we focused on the core technology of power electronics and related control, continuously extended to the cross-cutting andemerging ?elds related to the core technology, and gradually upgraded from board products to module products, system products andintegrated products, which have gradually achieved results through years of layouts and generated stronger and stronger synergistice?ects. In the expansion of products and industries, the Company has been generating ?ssion e?ect, discovering more market demandsand entering more segments.We place signi?cant emphasis on research and development (R&D) investments, aiming to meet the diverse product and solution require-ments of our downstream customers. To achieve this, we have established a cross-extended core technology platform. This strategicapproach has allowed us to consistently maintain an R&D investment level of around 10% of our sales revenue over many years. Thissubstantial investment provides robust support for realizing our product strategies and R&D plans e?ectively. Furthermore, environmentalprotection and sustainable development are key priorities in our R&D endeavors. We strictly adhere to national environmental protectionlaws and regulations, focusing on source control, implementing cleaner production practices, and taking comprehensive measures toprevent and control pollution. Our commitment extends to developing new products and technologies that align with stringent environ-mental standards, ensuring that our innovations contribute positively to environmental sustainability.We consistently adhere to the people-oriented development concept. This year, the Company has continuously expanded talent recruit-ment channels and actively introduced specialized technical and managerial talents from home and abroad who are suitable for theCompany’s development, especially those with international vision and standardized management background, in order to comprehen-sively improve the Company’s management capability in all aspects. To support the development of our employees, we have implement-ed a sound training system and upgraded our training facilities and resources. Performance appraisal, reward and punishment mecha-nisms have also been enhanced, fostering a stronger sense of responsibility and execution among our workforce. In addition to theendogenous technology and product development, the Company maintains a keen insight into new technologies and new ?elds, continu-ously extends the technology based on power electronics, cooperates with external teams with unique technological advantages througha ?exible mechanism, and successively holds or participates in a number of upstream and downstream product teams with core technolo-gies, which grafts on the Company’s resource platform and provides the Company with more new forces.Looking ahead, Megmeet will continue to uphold the strategic idea of “multi-level growth and balanced risk”, continue to integratesustainable development factors into the Company’s management concepts and practices, and continue to innovate, sustainabledevelopment, and create more value for customers, employees, society and the environment. We look forward to working with partnersacross all sectors to drive industrial advancement and contribute to social development!
Report Description Chairman’s Speech
This is an annual report. The report covers the period from January 1, 2023 to December 31, 2023. Any textual information that extendsbeyond this summary will be entailed in the corresponding sections of the report.Timeframe
This report covers Shenzhen Megmeet Electric Co., Ltd. and its subsidiaries (“Megmeet” “the Company”). Unless otherwise speci?ed,the scope of the consolidated ?nancial statements is consistent with that of the annual report of Megmeet (Stock Code: 002851.SZ). Fordetails of the subsidiaries included in the report, please refer to the “List of Subsidiaries Included in the Scope of the Report” in theAppendix.
Scope of the Report
For clarity in expression and reading, “Shenzhen Megmeet Electric Co., Ltd.” will be referred to as “Megmeet”, “the Company” or“we” in this report.Report Appellation
The textual information and quantitative data disclosed in this report are sourced from the Company’s o?cial documents and statisticalreports, and the quoted quantitative data are the ?nal statistical data. In the event of any inconsistency between the ?nancial datapresented here and those in the Company's annual report, the information in the annual report shall take precedence.Data Description
This report has been prepared with reference to the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 -Standardized Operation of Listed Companies on the Main Board (Revised in 2023) published by the Shenzhen Stock Exchange, the Sustain-ability Reporting Standards (2021 Edition) of the Global Reporting Initiative (GRI), and the Sustainability Reporting Standards (2021Edition) (the “GRI Standards”) of the Global Reporting Initiative, the issues of concern in the MSCI ESG Ratings, the Reference IndicatorSystem for Specialized ESG Reporting of Listed Companies Controlled by Central Enterprises published by the State-owned Assets Supervi-sion and Administration Commission (SASAC) of the State Council of the People’s Republic of China (PRC), and the Guidelines for CorporateSocial Responsibility Reporting in China (CASS-ESG 5.0) released by the Chinese Academy of Social Sciences, the International FinancialReporting Sustainability Disclosure Standard No. 1 - General Requirements for Disclosure of Sustainability-related Financial Information(IFRS S1) issued by the International Sustainability Standards Board (ISSB), and so on.
Basis of Preparation
This report is available in Chinese and English. You can download and read the PDF electronic version on our o?cial website: www.meg-meet.com, and the information disclosure platform designated by the Stock Exchange to obtain more information about our environmen-tal, social and corporate governance. If there is any discrepancy between the English and Chinese versions, please refer to the Chineseversion.
Report Access
—Dr. Yongsheng Tong
About Megmeet
About Megmeet
Shenzhen Megmeet Electric Co., Ltd. (Stock Code: 002851.SZ) is a one-stop solution provider of hardware and software R&D, production,sales and service in the ?eld of electrical automation. With over twenty years of dedicated e?ort, the Company has developed a techno-logical foundation centered on digital power control, system control and communication, and power conversion hardware. From this coreplatform, Megmeet has branched out into six key business areas including power supply products, industrial automation, new energy &rail transportation, intelligent equipment, electric control for intelligent home appliances, and precision connections. Meanwhile, theCompany has also established R&D centers, manufacturing centers and market service centers around the world.As a global professional solution provider in the ?eld of electrical automation, Megmeet upholds a management policy characterized bycutting-edge technology, meticulous craftsmanship, premium quality, and top-tier service. Our mission is to enhance the e?cient utiliza-tion of electrical energy, promote a cleaner living environment, and drive continuous advancements in productivity. We are committed toimproving the quality of life for humanity and consider it our paramount responsibility to establish a global benchmark in the electricalautomation industry!
2300+R&D Sta?
6500+Corporate Employees
1500+ Patents and Copyrights
R&D Centers
Manufacturing Bases
CorporateCulture
LeadershipOpenness
CooperationInnovation
Complying withthe lawSavingresources
Treating ouremployees wellProtecting theenvironmentCorporateResponsibility
CorporateVision
The world’s ?rst-class electricalautomation products andsolutions provider
CorporateMission
Focusing on core technology toprovide customers with optimalcomponents and solutions
CorporatePhilosophy
E?cient use of electricity to providea comfortable living environment forhuman beings
Company History
Megmeet focuses on the core technology of power electronics and related control, and continuously extends to the cross-cutting andemerging ?elds related to the core technology. From the initial TV power supply ?eld, we have been steadily expanding to consumerpower controllers, industrial power supplies, industrial control products, and consumer terminals and industrial equipment, and havegradually upgraded to modular, system and integrated products from board products. Over the years, the layout of the Company hasgradually achieved results and generated more and more synergies. The expansion of products has also led the Company to graduallyexpand from the home TV market to various types of business, such as frequency conversion home appliances, intelligent sanitary ware,medical care, communications, intelligent equipment, new energy vehicles, rail transportation, microwave industrial applications,intelligent oil recovery equipment, thermal management, photovoltaic charging, welding technology, and motor control, and otherrelated consumer and industrial numerous industries. In the expansion of products and industries, the Company continues to generate a?ssion e?ect, which leads to the discovery of more market needs and entry into more segments.
The Company’s product and technology expansion is generated through both endogenous and exogenous means. Internally, we pursueendogenous growth by expanding existing products and technologies into new categories and exploring their applications across diverseindustries. Simultaneously, we embrace external expansion by integrating external resources, particularly technological assets, through?exible collaborations. This approach allows us to address gaps, enhance integration, and create synergies, ultimately opening up newareas of growth. Over the past decade, this dual-pronged approach has evolved into a well-established model, concept, and methodolo-gy for us. Through continuous practice and re?nement, we have elevated our technical prowess, operational e?ciency, and the scope anddepth of services o?ered to our customers. This comprehensive strategy ensures that we stay at the forefront of innovation and e?ectivelymeet the evolving needs of our clients across various sectors.As an electric power product, the development of each product and ?eld necessitates several years of continuous and meticulousresearch, development, and market expansion e?orts. The Company is currently in a growth phase. In the process of building technologyand product systems, each technology requires sustained R&D investment and operational management. The Company needs to steadilypush forward the process of product development from qualitative change to quantitative change. The Company’s current sales structurere?ects the results of strategic layout and continuous investment, the Company is also expanding new products and areas, which willserve as potential avenues for future business development.
Megmeet was foundedwith a focus on the ?atpanel display powersupply sector, marking asigni?cant transition forthe industrial displayindustry into a new era.
2003
Listed on ShenzhenSME, stock code002851.
2017
Listed in Forbes AsiaPaci?c Top 200 Small andMedium-sized ListedCompanies.
2020
Entered the ?eld ofindustrial automationand industrial powersupply.2007
Established globalmanufacturing base inZhuzhou, HunanProvince to empowerglobal customers;Entered the ?eld ofsmart home appliancesand industrial smartwelder in scale.
2014
Intensifying globaliza-tion e?orts; inaugura-tion of the Global R&DCenter in Changsha,and the commence-ment of constructionfor the new productionbase in Thailand.
2023
Further promotedinternationalizationand set up R&Dcenters andproduction bases athome and abroad.
2019
Established six major businesssegments; positioned in theprecision connection business;ranked No. 7 in global powersupply vendor sales— from the"MTC Report."
2022
Horizontal expansionfor growth andvertical deepeningfor strength, aimingfor sustained andsteady development.
未来
Started R&D of corecomponents for newenergy vehicles.2011
Megmeet Going Global
Megmeet’s globalization layoutTotal area(acres)
580,000Building area(square meters)
Various production lines
SMT and AI production line
0.9
PCBA Annual Production Capacity(billion pcs)
Megmeet’s business’ footprint spans the globe. In order to further satisfy customers’ needs and improve our service level, we have built acutting-edge global operation system and will continue to optimize our platform construction and expand overseas markets. Movingforward, we will continue to implement the idea of “expanding horizontally and strengthening vertically”, aiming at the high-enddirection of the industry and future industrial trends based on power electronics and related control technologies. We will adhere to theforward-looking layout and orderly investment to gradually accumulate competitive advantages and explore untapped potential tosupport future business growth.
Core Technologies and Business Areas
Focusing on innovation and development, Megmeet has established three core technology platforms to provide reliable support andsolutions for applications in di?erent ?elds. Simultaneously, the Company’s six business domains address the key needs and challengesof numerous industries. The Company continues to expand its business boundaries with its specialization, innovation and reliability,creating greater value and returns for customers.Three Core Technology Platforms
Six Business Areas
Digital Power ControlTechnology Platform
IndustrialAutomation
Power SupplyProducts
PrecisionConnectivity
New Energy & RailwayTransportation
Intelligent HomeAppliancesIntelligentEquipment
Communica-tion powersupplyServer PowerSupplyElectric PowerSupplyMedical PowerSupplyDisplay PowerSupply
LED Power SupplyLaser PowerSupplyMobile EnergyStorage Bidirec-tional InverterLight Storage andCharging SolutionOA Pwer SupplyIndustrial ControlPower Supply…
Power supplyproducts Applica-tion：More than 20years of technicalaccumulation inpower supplyindustry, providinghigh-quality,high-performance,high-reliability,cost-e?ectiveone-stop powersupply solutionsfor multiple ?elds.
Network power
supply
Home energy
storage
Photovoltaic
chargingFrequency InverterServo SystemControl SystemSensorInternal meshing gear pumpIndustrial Internet of ThingsElevator integrated controller…
Industrial automa-tion Application：
Providing industrialautomation systemsolutions, continu-ous technologicalinnovation, to meetthe needs ofvarious industriesfor equipment withhigh response, highprecision, highstability, easier touse, cost-e?ectiveand so on.
Engineeringmachinery
Machine toolWind power
Hydraulicmachinery
ElevatorTextile
Integrated Charging SystemMotor ControllerAll-in-One High VoltageIntegrated DriverElectric CompressorThermal Management SystemFully Active Hydraulic Suspen-sion SystemDistributed DriveEngineering Vehicle ControllerLight Electric Vehicle ControllerRail Transit Air ConditioningControllerRail Transit Variable FrequencyDrive…
New energy &railway transporta-tion Application：
Mastering the coretechnology ofmotor control andpower supply,providing one-stopsolutions forcharging pilemodules, motorcontrollers,on-board powersupply, all-in-onedrive systems,electric compres-sors and theirelectronic control,thermal manage-ment systems andtheir components.
New EnergyVehicle Powertrain
New EnergyVehicle ThermalManagement System
Charging post
Light electricvehicle
Intelligent Digital WeldingMachineIndustrial Microwave EquipmentSubmersible Screw PumpIntelligent Oil Extraction SystemPolycrystalline Silicon WaterCooling EquipmentFully Automatic Car WashingMachine…
Intelligent equipmentApplication：
Mastering the coretechnology, weindependentlyresearch, develop andproduce intelligentdigital gas-shieldedwelding machines,microwave/RFapplication equipment,submerged oil screwpump intelligent oilrecovery systems,environmentalprotection equipment,etc., to providecustomers with morecost-e?ective andbetter-performingequipment andsolutions.
Residential/Commercial AirConditioning ControllersHeat Pump/Space HeaterControllersVehicle Air ConditioningControllersSolar Air Conditioning ControllersMiniature Compressor ControllersRefrigerator/Washing MachineControllersHousehold/Industrial MicrowavePower SuppliesSmart Bathroom Units andComponentsRF Thawing and FreshnessPreservation Equipment…
Intelligent homeapplianceelectronic controlApplication: ：
Through thecross-fertilizationof the three coretechnologyplatforms, weprovide one-stopdrive-controlsolutions, corecontrol componentsfor the white goodsindustry, andcomplete machinesand their controlcomponents for theintelligent sanitaryware industry.
Intelligent airconditioner
Intelligentrefrigerator
Microwave oven
FFC Flexible Flat CableFPCCoaxial CableEnamel WireLitz WirePEEK Wire…
Precision connectioApplication：
Providing moree?cient andreliable signaltransmissionsolutions, achievingexcellent shieldingperformance,meeting thedemand forhigh-frequency andhigh-speedtransmission, andthe products havethe characteristicsof combination, lowcost, and ?exibility.
OA
New EnergyVehicle Battery
TV & Commercial
DisplayLaptopUAV
Security & ProtectionSystem
Engineering
Vehicle
Oil extraction
Engineeringmachinery
Container
Ship
Industrialmicrowave
Polycrystalline SiliconWater Quenching
Rail tra?c
System Control andCommunicationTechnology Platform
Power ConversionHardwareTechnology Platform
Display
Medicaltreatment
OA
Intelligentbathroom
Washingmachine
Heat pump
heating
An In-depth Look at the Company's Key Highlights of 2023Megmeet Honors Awards in 2023
2023 was an extremely crucial year for Megmeet, and can be summarized with two key phrases: "Innovative Development, StrengtheningFoundation".
With unwavering determination and focused e?orts, Megmeet is poised to continue pushing the boundaries of innovation and script anew chapter of success in 2024...
1.This year, the Company strengthened its international presence by participating in 27 domestic and overseas exhibitions,
further enhancing its global in?uence.This year, the Company's six major business groups launched multiple new products, realizing research and developmentachievements. The new products include energy storage packs, liquid-cooled/air-cooled charging modules, home storageinverters, AI server e?cient power supplies, general-purpose inverters, temperature controllers, lightweight electric vehicledrive control systems, new energy vehicle power supplies, thermal management components, laser welding machines, andheat pump heating systems.This year, the Company successively obtained more than ten national-level platform certi?cations such as National GreenFactory, National Industrial Product Green Design Demonstration Enterprise, National Key R&D Program, and NationalIntellectual Property Advantage Enterprise, along with over a hundred provincial-level certi?cations.
This year, the Company obtained UL-WTDP, CTF quali?cations, and passed CNAS quali?cation review, signi?cantly reducingtesting cycles with national-level laboratories and world-class testing equipment, establishing a strong quality assurance"shield".
This year, the Company's Changsha Global R&D Center completed construction and o?cially started operation, capable ofaccommodating 2000 R&D personnel.
This year, the Company continued to build its independent industrial ecosystem and enhance its supply chain capabilities.We now have a complete sheet metal production chain and ?exible automation production line for magnetic wire compo-nents, improving industrial integration capabilities and long-term competitiveness.
This year, the Company's Zhuzhou Global Manufacturing Base's three-dimensional warehousing project o?cially started,with a height of 24 meters and a depth of 85 meters. Twenty high-speed and heavy-duty stacker cranes operate 24 hoursfor automatic sorting and distribution, empowering a new chapter in intelligent manufacturing.
This year, the Company's production base in Thailand began construction, with a planned construction area of 33,752square meters. Fifteen SMT lines and supporting PCBA assembly production lines will be built, achieving an annual outputvalue of 2 billion RMB after full production, marking a new milestone in Megmeet's global development.
January 2023Zhuhai Watt was awarded in 2023:
Outstanding Contribution to Power Industry
Shenzhen Megmeet Electric Co., Ltd.
November 20232023 ICSC Enterprise of the Year inIndustrial Control China
Shenzhen Megmeet Electric Co., Ltd.
October 2023
Ministry of Industry and Information Technology"Industrial Product Green Design Demonstration Enterprise"
Zhejiang Yihe Sanitary Ware Co., Ltd.
November 2023
Top Ten New Products of the Third ICSCChina Conference in 2023
Shenzhen Megmeet Electric Co., Ltd.
November 20232023 National Intellectual Property
Advantageous Enterprise
Shenzhen Megmeet Electric Co., Ltd.
September 2023The 10th Shenzhen Growing Enterprises “Best Employer”
-Best Employer Organization and Management AwardShenzhen Megmeet Electric Co., Ltd.
December 2023
Specialized and New Small and Medium-sized
Enterprises in Zhejiang ProvinceZhejiang Oulide Precision Technology Co., Ltd.Hangzhou Chenkong Intelligent Control Technology Co., Ltd.
November 2023National High-tech Enterprise Certi?cate
Shenzhen Megmeet Electric Co., Ltd.
April 2023
Specialized and New Small and
Medium-sized EnterprisesShenzhen Megmeet Electric Co., Ltd.
May 2023First Prize of Guangdong Provincial
Technical Invention AwardShenzhen Megmeet Drive Software Technology Co., Ltd.
May 2023GE Healthcare Ecosystem Conference"Comprehensive Domestic Award"Shenzhen Megmeet Electric Co., Ltd.
September 2023Silver Award in the 2023 "Knowledge Creation Cup" Enterprise
Intellectual Property and Innovation Practices Competition
Shenzhen Megmeet Electric Co., Ltd.
October 20232023 Welding Robot Industry Chain Pioneer Award
Shenzhen Megmeet Welding Technology Co., Ltd.
October 20232023 "Boiling Quality Award"
Shenzhen Megmeet Welding Technology Co., Ltd.
Company’s 2023 Milestones
Megmeet joined the Open Data Center Council(ODCC)
Megmeet received the U.S. U Grant WTDP and CTFtesting laboratory quali?cation
Megmeet unveiled its full range of new energyvehicle charging modules at the EV Trend KoreaExpo
Megmeet's subsidiary Yihe Sanitary Ware hassuccessively been awarded the provincial-level"Digital Workshop" and the national-level "GreenFactory" titles
Inauguration of “Megmeet & Wuhan Institute ofTechnology Joint Laboratory” and “Wuhan Instituteof Technology Postgraduate Training Base”
Megmeet successfully sponsored and hosted the 2023 (2ndEdition) Welding Robot Technology and Application Summit
Megmeet made its ?rst appearance at the 23rd ChinaInternational Industry Fair
The launching ceremony of Megmeet’s intelligent warehousingproject was successfully held!
Shenzhen Industrial Automation Industry Association visitedMegmeet
Twenty and sharpening, Megmeet walks forward”, the 20thanniversary of the establishment of Megmeet was warmlycelebrated!
Zhuzhou Megmeet once again advances into the Top Ten Private Enterprisesof Zhuzhou in 2023
Megmeet is honored with the title of "National Intellectual Property AdvantageEnterprise of 2023”
O?cial Announcement! Megmeet IP mascot “Mai Duner” was coming!
Megmeet received the title of "GuangdongProvince Intellectual Property DemonstrationEnterprise"
January 5, 2023
February 2, 2023
February 10, 2023
March 15, 2023
April 3, 2023
April 25, 2023
Megmeet made its debut at the 36th World Electric VehicleConference in the United States, creating a new experience forelectric vehicle chargingJune 11, 2023
2023 Supplier Conference of Megmeet was heldgrandly
May 19, 2023
2023 Automation Industry Summit Forum of the Greater BayArea, the total title of Megmeet, was successfully concluded.
June 17, 2023
Smart control of the future, Megmeet appeared in the 2023 China IndustrialControl Conference!November 1, 2023
Megmeet Electric’s global development went one step further!The groundbreaking ceremony for Megmeet’s Thailand basewas successfully held!
October 29, 2023
October 12, 2023
September 19, 2023
September 1, 2023
August 29, 2023
July 29, 2023
December 1, 2023
December 11, 2023
December 29, 2023
Shenzhen Megmeet Electric was awarded the title of “2023 NationalIntellectual Property Advantageous Enterprise”.
Launch of the new o?cial website and small program! Bring a brand newexperience!
November 29, 2023
November 15, 2023
Sustainable DevelopmentManagement
1.1 Sustainability Strategy
1.2 Megmeet ESG Management
1.3 Speci?c Actions for Megmeet’s Contribution to the SDGs
1.4 Stakeholder Communication
1.5 Substantive Issues Management
Megmeet ESG Management
Adhering to the orientation of sustainable development and taking environmental protection, social responsibility, corporate governanceand innovative development as its core concepts, Megmeet continuously re?nes its management system and business model, anddevotes itself to fostering a harmonious relationship among economic prosperity, societal well-being, and environmental preservation,thereby making meaningful contributions to sustainable development goals.
Sustainability Strategy
Megmeet has set up an ESG system construction committee, chaired by the Company’s Chief Operating O?cer (COO), to ensure thee?ective implementation of the ESG system construction work. Based on the development strategy and the four dimensions of “market”,“corporate governance”, “society” and “environment”, the Company regularly reviews important ESG issues and identi?es the mostimportant ones. The Company regularly reviews ESG key issues and identi?es and evaluates ESG risks and opportunities facing theCompany. The management and enhancement of key issues are incorporated into the annual ESG development strategy to ensure thecontinuous improvement and development of the Company’s ESG, maximizing long-term bene?ts and fully ful?lling social responsibili-ties.In 2023, the Company continued to improve the existing ESG management system and system construction in order to adapt to theever-changing market demand and social responsibility. In terms of “market”, the Company prioritizes patent management, enhancesits R&D strength, promotes R&D innovation, increases R&D investment, and produces and promotes green products, thereby promoting theconstruction of a green industrial chain. In terms of “Corporate Governance”, the Company values the establishment of internalmanagement and supervision mechanisms to ensure the standardization and transparency of corporate governance and to enhance thetrust and satisfaction of shareholders and stakeholders.Meanwhile, the Company is committed to participating in community building, public welfare activities and employee bene?ts, andcontributing to society through various means to promote social harmony and development. With regard to the “environment”, theCompany attaches importance to environmental protection and sustainable development, and proactively implements measures tomitigate environmental impact and enhance resource utilization e?ciency, thereby fostering a symbiotic relationship between economicgrowth and ecological equilibrium.Based on the development strategy and the four dimensions of “market”, “corporate governance”, “society” and “environment”,the Company regularly reviews important ESG issues, identi?es and evaluates ESG risks and opportunities faced by the Company, andmonitors the management and performance of related issues. The management and enhancement of key issues will be incorporated intothe annual ESG development strategy to ensure the Company’s continuous improvement and development in ESG, maximization oflong-term bene?ts and full ful?llment of social responsibilities.
Specific Actions for Megmeet’sContribution to the SDGs
ESG Management System Construction Committee Chairman：Responsible for the overall operation of the ESG Management SystemConstruction Committee and ensuring that the Committee has the resources it needs to continue to operate e?ectively.
ESG Management System Construction Advisor：Ensure that the Committee has the professional resources it needs, participate insenior-level interviews and provide professional advice to support the Committee’s operations.Executive Director and Deputy Director of ESG Management System Construction Committee：Responsible for communicating with
service providers, formulating ESG work plan, organizing the Company’s personnel to complete the annual ESG information collection,and assisting in the completion of the ESG report and its smooth disclosure. Cooperate with the service agency to complete the quantita-tive performance indicator manual for ESG performance management of Megmeet, and establish the responsible personnel for eachESG module of the Company, and formulate working guidelines and standardized processes to ensure the perfect operation of the ESGmanagement system of the Company.Executive member of the ESG Management System Construction Committee：Participate in the annual collection of disclosure data
corresponding to ESG modules, participate in ESG module management planning, and formulate ?xed templates and processes for thesmooth operation of daily collection and supervision.
ESG Management System Construction Committee Membership and Responsibilities
Keeping the Heart andSoul of the Business
Corresponding chapterSustainable development goals
Showing Ingenuity andInnovative Development
Toward EnvironmentalDevelopment,BeingEnvironmental Pioneers
Reliable and StableCooperation
Cohesion andCooperation
With Sincerity,Walking Together
Our actions
Strengthening Corporate GovernanceComplying with the LawOptimizing Governance StructureSafeguarding Intellectual Property Rights
Anti-Corruption and Integrity
Green R&DInnovation DriveGreen ProductionEnergy ManagementQuality ManagementCustomer Relationship ManagementImproving Environmental Management Systems
Responding to Climate ChangeClean Technology Development and Utilization
Water Resource Use and Management
Waste Discharge and Management
Resource RecyclingSupply Chain Management
Community RelationsEmpowering the Industry ChainEqual Opportunity and Diversity
Prohibition of Child LaborEmployee Motivation and Training
Employee CareEmployee Bene?tsEmployee Health and SafetyIndustry Development and Cooperation
Community Giving Back
Rural Revitalization
Education Relief
Keeping the Heart and Soul of the BusinessShowing Ingenuity and Innovative Development
Toward Environmental Development,Being Environmental Pioneers
Reliable and Stable CooperationCohesion and CooperationWith Sincerity, Walking TogetherSustainable Development Management
Stakeholder Communication
Substantive Issues Management
To facilitate a comprehensive understanding of Megmeet among investors and foster interactive communication, the Company organizesan online performance presentation every year to enable investors to have a better understanding of the Company’s annual report andexperience of the current year, and also participates in the “Online Collective Reception Day for Listed Company Investors” activity whichis guided by the Shenzhen Bureau of Securities Regulatory Commission, and jointly organized by Shenzhen Association of Listed Compa-nies and Shenzhen Panorama Network Company Limited. Ltd. jointly organized by Shenzhen Listed Companies Association and ShenzhenPanorama Network Co., Ltd. During these engagements, executives of the Company engage in online discussions with investors on varioustopics, including the Company's performance, corporate governance, development strategy, operational status, ?nancing plans, equityincentives, and sustainable development initiatives.
In 2023, Megmeet conducted a screening of ESG substantive issues to address the expectations of various stakeholders. Through extensiveconsultations with experts and a thorough assessment of the Company's actual circumstances, Megmeet identi?ed 20 ESG issues that arehighly relevant to the Company. This initiative signi?es Megmeet's commitment to meeting the demands of diverse stakeholders andpursuing a comprehensive and sustainable approach to ESG management for long-term development.
Key Stakeholders
Expectations andRequirements
Communication Style
General Meeting of ShareholdersInformation disclosure on Company’s o?cial website ando?cial WeChat O?cial AccountsPeriodic reports, ESG reports, performance reportsRoadshows, surveys, telephone calls, emails, Shenzhen StockExchange’s “Interactive Ease” platform, etc.Shareholders
Information disclosureCooperate with regulatory agencies for veri?cationParticipation in government research activitiesPolicy Implementation
Government andregulatory agencies
Disclosure of information on the Company’s o?cial websiteand o?cial WeChat O?cial AccountCustomer consultation and complaintsTechnical SeminarCustomer Satisfaction SurveyPeriodic audit, customer audit
Clients
Employee Physical ExaminationEmployee ActivitiesEmployee TrainingEmployee Handbook
Employees
Telephone communicationUnscheduled visitsAcademic seminars, industry exhibitions, exchange meetings,industry training
Suppliers andpartners
Shareholder ReturnsInformation DisclosureRisk ManagementCorporate GovernanceBusiness PerformanceObserve Law and DisciplineCompliance of OperationAnti-CorruptionLeading Local DevelopmentResponding to National StrategiesClean Energy Product O?eringCustomer ServiceProduct Quality and SafetyProduct ConformityEmployee Rights & Bene?tsOccupational Health and SafetyEmployee Training and DevelopmentBene?ts and CompensationOpen and Honest CooperationR&D InnovationWin-Win DevelopmentSupply Chain SustainabilityEmissions and Waste ManagementWater StressEnergy ManagementCommunity RelationsPublic Welfare and Charities
Press Releases, social MediaEnergy Saving and Emission Reduction ActivitiesPollutant TreatmentCommunity Building ProgramsPublic Welfare DonationSocial Welfare Programs
Community, public,media, etc.
Cleantech Opportunities
Carbon EmissionsToxic Emissions and Waste
Resource & Energy UseGreen Operations ManagementPackaging and WasteRenewable Energy Opportunities
Sustainability/ESG Management
Compliance OperationAnti-Corruption
Employee DiversityEmployee Health & SafetyEmployee Training & Development
Supply Chain Management
R&D InnovationProduct Quality and SafetyInformation Security & PrivacyIntellectual Property Protection
Customer ServiceIndustry Collaboration
Environment
Society
Governance
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2.1 Corporate Governance
2.2 Compliance Operations
2.3 Business Ethics
2.4 Intellectual Property Protection
Keeping the Heart andSoul of the Business
Corporate Governance
In compliance with the Company Law, the Securities Law, the Guidelines for the Governance of Listed Companies and other relevant laws,regulations and standardized documents, Megmeet continuously enhances the corporate governance structure, establishes and improvesthe internal control system, and leverages e?ectiveness of the corporate governance structure comprising the General Meeting ofShareholders, the Board of Directors, the Supervisory Committee and the senior management. This ensures the establishment of a coordi-nated mechanism with clear delineation of powers and responsibilities, promoting standardized operations and mutual checks andbalances among authority, decision-making bodies, supervisory entities, and management.
Governance Structure of Megmeet
MEGMEET
Technical CommitteeHuman Resources Committee
Quality CommitteeDiscipline Inspection Committee
investment Committee
Safety CommitteeHazardous SubstancesManagement Committee
Finance Center
Research Institutes in Germany, Xi'an, Changsha,
Wuhan,and Hangzhou
Human Resources and Administration Center
Corporate Operations O?ce
Marketing ManagementcenterSupply Chain ManagementCenter
Global ManufacturingCenter
Product EngineeringCenterStructural ModelingCenter
Information Center
Platform DepartmentVirtual Organization
BusinessGroup
Smart Home ApplianceBusinessGroupPower Solutions BusinessGrouDTransportationBusiness GroupIntelligent EquipmentBusinessGroupPrecision Connectio!BusinessGroupIndustrial AutomationBusinessGroup
In accordance with national laws and regulations and the Company’s Articles of Association, the Companyhas established a standardized governance structure comprising the General Meeting of Shareholders, theBoard of Directors, the Supervisory Committee and the operating management. The Board of Directorsconsists of four specialized committees, namely, Audit Committee, Strategy Committee, Remuneration andEvaluation Committee and Nomination Committee, and the O?ce of the Board of Directors. The four special-ized committees are responsible for the development strategy, audit, nomination, selection, managementand performance appraisal of directors and senior management of the Company respectively.During the reporting period, the specialized committees of the Board performed their duties conscientiouslyand gave full play to their professional advantages and functional roles in accordance with the Guidelines onthe Governance of Listed Companies and the Company’s Work System of Specialized Committees of theBoard of Directors, which provided good support for the decision-making of the Board of Directors. Theindependent directors and the secretary of the Board of Directors have e?ectively enhanced the scienti?cityand fairness of the Board of Directors’ decision-making, and the corporate governance has been able tooperate e?ectively in accordance with the relevant laws and regulations and internal systems such as theArticles of Association of the Company.The Company elects directors and employs executives in strict accordance with the selection and appoint-ment procedures stipulated in the Company Law and the Articles of Association, and the Board of Directorsof the Company consists of ?ve directors, including two independent directors. The Company has one femaledirector, accounting for 20% of the total number of board members. The number and composition of theBoard of Directors are in compliance with the requirements of laws and regulations, and due considerationhas been given to diversi?cation in order to enhance the capability of the Board of Directors and the overalllevel of governance. The Directors carry out their work in accordance with the Rules of Procedure of the Boardof Directors, the Working System of Independent Directors, and the Shenzhen Stock Exchange Self-disci-plinary Supervision Guidelines for Listed Companies No. 1 - Standardized Operation of Main Board ListedCompanies, attend the Board of Directors and the General Meeting of Shareholders, and perform their dutiesand obligations diligently and conscientiously, and at the same time, actively participate in the relevanttrainings and study relevant laws and regulations to continuously improve their performance of duties TheIndependent Directors are not in?uenced by the Company’s controlling shareholders, de facto controllersand other units or individuals with an interest in the Company, and ful?ll their duties independently andexpress independent opinions on major matters of the Company.The Company strictly follows the requirements of the Articles of Association and the Rules of Procedure forShareholders’ General Meetings to convene and hold shareholders’ general meetings in a standardizedmanner, to ensure that all shareholders, especially small and medium-sized shareholders, enjoy equalstatus and to ensure that small and medium-sized shareholders have the right to be informed of and partici-pate in major matters of the Company, as well as the right to vote. The actual controller of the Company isable to strictly regulate its own behavior, and the Company has not provided guarantees for the controllingshareholders or the controlling shareholders’ non-operational occupation of the Company’s funds.During the reporting period, the Company held 2 shareholders’ meetings, including 1 annual generalmeeting and 1 extraordinary general meeting. The convening and procedures, the quali?cations of personsattending the meetings, the voting procedures, the voting results and the disclosure of the resolutions wereall in accordance with the relevant laws, administrative regulations, departmental rules, standardizeddocuments and the Articles of Association, etc., and the matters which should be voted on at the sharehold-ers’ general meetings were submitted to the shareholders’ general meetings for consideration after approvalin accordance with the corresponding authority, and were not submitted to the shareholders’ generalmeetings for consideration after approval. They were submitted to the shareholders’ general meeting forconsideration after approval, and there were no cases of ultra vires approval or implementation beforeconsideration. Both on-site meetings and online voting were provided at the shareholders’ general meetingsto ensure that shareholders could participate in the governance of the Company in an equal and e?ectivemanner. The cumulative voting system is utilized in the consideration of motions for the election of non-inde-pendent directors, independent directors and supervisors of the Company. Through various systems, theexercise of small and medium-sized shareholders’ rights to information, participation and decision-makingis guaranteed, thus e?ectively safeguarding the legitimate rights and interests of the majority of investors.
Board ofDirectors
General Meetingof Shareholders
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The Supervisory Board of the Company consists of three members, including one employee representativesupervisor, who was elected by the Employee Representative Assembly. The number and composition of theSupervisory Committee are in compliance with the laws, regulations and the provisions and requirements ofthe Articles of Association of the Company. The Supervisory Committee of the Company conscientiouslyperforms its duties in accordance with the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange,the Articles of Association and the Rules of Procedure of the Supervisory Committee to supervise the Compa-ny’s material matters, ?nancial status and the legality and compliance of the performance of duties by thedirectors and executives of the Company, and to safeguard the legitimate rights and interests of the Companyand the shareholders.SupervisoryBoard
The Company discloses information strictly in accordance with the relevant laws and regulations such as the Rules for Listing of Stocks onShenzhen Stock Exchange and the Guidelines for the Standardized Operation of Listed Companies on Shenzhen Stock Exchange, as well asthe requirements of the Company’s Investor Relations Management System and Information Disclosure Matters Management System, andfollows the principles of openness, fairness and impartiality, and discloses information truthfully, accurately, completely and timely in thedesignated information disclosure media such as China Securities Journal, Securities Times, Securities Journal, Shanghai Securities News,and the website (www.cninfo.com.cn) information disclosure media to ensure that the general investors enjoy equal right to know.In 2023, the Company disclosed a total of 79 reports, and the information disclosure rating of the Shenzhen Stock Exchange for fourconsecutive years was A. During the reporting period, the Company did not have any illegal incidents in information disclosure.
The Company strictly follows the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China andother relevant laws and regulations, and takes the Articles of Association, the Investor Relations Management System, the ConnectedTransaction Management System and other systems as the basis for the protection of shareholders’ rights and interests. The Companyadheres to the four basic principles of investor relations management to carry out investor relations management activities:
Information Disclosure
Investor Relations Management
Held 6board meetings
Held
general shareholders’meetings
Held
Supervisory Boardmeetings
resolutions adoptedat board meetings
resolutions adoptedat shareholders’ meetings
resolutions adoptedat Supervisory Board meetings
The investor relations management of listed companies shall be carried out on the basis of ful?llingthe information disclosure obligations in accordance with the law and in compliance with the laws,regulations, rules and normative documents, industry norms and self-regulatory rules, internal rulesand regulations of the Company, as well as ethical norms and codes of conduct generally observedin the industry.Principle ofCompliance
Listed companies shall treat all investors equally when carrying out investor relations managementactivities, especially creating opportunities and providing facilities for small and medium-sizedinvestors to participate in the activities.Principle ofEquality
Listed companies shall take the initiative to carry out investor relations management activities, listento investors’ opinions and suggestions, and respond to investors’ demands in a timely manner.Principle ofInitiative
Listed companies shall focus on honesty and trustworthiness, adhere to the bottom line, standardizeoperation, take responsibility and create healthy and good market ecology in investor relationsmanagement activities.Principle ofHonesty andTrustworthiness
Since its listing, the Company has always attached great importance to investor relations management, and has taken theSecurities Department as a window to actively interact with investors through multiple channels, platforms and methods toenhance investors’ understanding of the Company and their con?dence in the Company. The Company communicates withinvestors through channels such as the Company’s o?cial website, new media platforms, telephone, fax, e-mail, andinvestor education bases, utilizing the network infrastructure platforms of the China Investor Network and stock exchanges,securities registration and settlement institutions, etc., and adopting the methods of shareholders’ meetings, investorbrie?ngs, roadshows, analysts’ meetings, reception of visits, and seminars and exchanges. At the same time, the Companyhas arranged specialized personnel to be responsible for the maintenance of the aforesaid channels and platforms toensure timely and e?ective communication. During the reporting period, the Company conducted a total of 3 investorrelations activities for on-site investor research.The Company organized the 2022 Online Performance Presentation to enable investors to further understand the Compa-ny’s annual report and experience for the year, and participated in the “Online Collective Reception Day for Listed CompanyInvestors” jointly organized by Shenzhen Listed Companies Association and Shenzhen Panorama Network Co., Ltd. Theexecutives communicated and exchanged with investors online on issues of concern to investors, such as the Company’sperformance, corporate governance, development strategy, operation status, ?nancing plan, equity incentives, andsustainable development.The Company has set up an “Investor Relations” column on its o?cial website to publish Company announcements,routine investor reception arrangements, and other relevant information for investors’ inquiry.
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Megmeet attaches great importance to the establishment of internal compliance management system and risk management, and contin-uously optimizes the internal audit work?ow to ensure the legality, standardization, and stability of the Company’s operation.
Megmeet strictly adheres to the Criminal Law of the People’s Republic of China, the Law of the People’s Republic of China Against UnfairCompetition, the Provisional Provisions on the Prohibition of Commercial Bribery, and other national policies, regulations and guidelines,and formulates and follows the Provisions on the Investigation and Handling of Violations of Law and Discipline and the Code of Conductfor Purchasing and Purchasing-Related Businesses, as well as other management systems, to adhere to the ?ght against corruption andpromote honesty and integrity, and to deal with violations of laws and regulations in a serious manner in order to safeguard the corporateoperating integrity and standardization of business operations.The Company requires all employees to consciously abide by anti-corruption and anti-bribery laws and regulations, refraining fromengaging in any form of corrupt activities or bribery. All personnel are required to sign the Integrity Commitment with the Group uponjoining the Company. In case of violations, the Group retains the right to impose unpaid dismissal, or even refer the matter to the relevantjudicial authorities for prosecution. Employees are expected to maintain professionally appropriate interpersonal relationships whencollaborating with government o?cials, customers, suppliers, etc. They must not accept any gifts, securities, or valuables, nor solicitkickbacks or accept disguised bribes from collaborating parties.Employees must comply with the Company’s evaluation procedures and principles of integrity in selecting or evaluating suppliers,outsourcing factories, engineering contractors and other activities, and must not violate the principles of fairness and integrity. At the sametime, employees shall not utilize the name of the Company or their positions to seek personal bene?ts, nor shall they engage in part-timeservices with supplier units, nor shall they disclose con?dential Company information for personal gain. Employees shall not participate inbanquets or entertainment activities that may a?ect the fair execution of their work.For violation of integrity requirements, the Company will impose severe punishment, including warning, demotion, transfer, withholdingwages and year-end awards, and other sanctions. In case of serious violations, individuals will be transferred to judicial authorities forcriminal prosecution. The Company has speci?c guidelines regarding activities such as employee-organized dinners or entertainingcustomers and suppliers, which must receive approval from senior leadership to ensure compliance. Emphasizing the importance ofanti-corruption measures, the Company encourages employees to adhere to ethical standards, thereby safeguarding the Company'sreputation, image, and ensuring its sustainable development.
To embody the Company’s culture and values and enhance the culture ofintegrity, the Company conducted extensive publicity and educationactivities in 2023. Themed around "uprightness of heart and conduct,integrity in demeanor and temperament," these initiatives aimed to instill astrong moral concept of integrity among employees. The goal was to fosterclean and e?cient behavior, ensuring the healthy development of employ-ees' careers while upholding ethical standards.A total of 239 employees participated in the Integrity Culture Activity, whichpublicized the Code of Conduct for Procurement and Procurement-RelatedBusinesses and other relevant policies and regulations. Through detailedexplanations and discussions on the Company’s integrity standards,employees gained a deeper understanding of the expectations regardingethical behavior and were encouraged to adhere to conscientious compli-ance.In response to the announcement, employees voted to con?rm the implementation of various policies in the form of resolutions to ensurethat employees have a clear understanding of the Company’s Code of Conduct on Integrity and implement it in practice.Employees signed the Megmeet Integrity Commitment at the activity site and solemnly promised to protect the legitimate rights andinterests of the Company, suppliers and customers, practice the Company’s core values, and do their best for the development of theCompany with integrity and self-discipline.
Megmeet upholds the integrated approach of compliance operation, risk control, and internal audit, and continuously optimizes theinternal control system and internal audit work?ow to ensure the e?ective implementation of the Company’s internal control managementwork and promote the healthy growth of the enterprise. In the future, the Company will continue to strengthen compliance managementand risk control, and continuously ehance the standard of internal audit work to meet the challenges of the increasingly complex businessenvironment and achieve long-term sustainable development goals.
Megmeet has formulated theMegmeet Enterprise InternalControl Management System andother internal compliancemanagement systems, and hasimplemented classi?cation andmanagement for a number ofsections within the company,such as capital, procurement,sales, subsidiary management,information systems, and internalauditing, and has organized andpromoted internal control work instrict accordance with the system.
Megmeet has established a robust riskmanagement system consisting ofthree lines of defense, includinge?ective self-control by each depart-ment, professional management by therisk management department, andpost-event supervision and evaluationby the internal audit department,which e?ectively guarantees thecomprehensive and hierarchical natureof risk management.The Company has established arigorous and scienti?c internal controlsystem and formulated e?ectiveinternal control evaluation standards toprevent risks in operation andmanagement and promote therealization of internal controlobjectives through operation, analysisand evaluation.
Megmeet carries out annualaudits, prepares annual auditreports, and holds auditcommittee meetings to audit theCompany’s connected transac-tions to ensure the timeliness andcomprehensiveness of the audits.The Company actively carries outinternal audits to address variousrisks and internal controlde?ciencies through specialaudits, special reports, andspecial recti?cations to avoidrecurrence of relevant issues in itsoperations.
Compliance OperationsBusiness Ethics
Anti-Corruption and Integrity
Anti-Corruption Training
Compliance OperationRisk Control System and InitiativesInternal Audit
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Timely Response and Record：Upon receiving any feedback or complaint from employees, the human resources department will givepreliminary feedback and initiate the handling process within a speci?ed period of time. All feedback and complaints will be recordedin detail and categorized according to the content and forwarded to the relevant person in charge for processing.
Closed-Loop Processing Mechanism：The Company has designated personnel to track the progress of handling reasonable sugges-tions or complaints from employees. This ensures continuous feedback at every stage until the suggestions are adopted and implement-ed, or the problem is fully resolved.
Publication of Feedback Results：The Company will publicize the results at the appropriate time, including the adoption of valuable
suggestions and the e?ect of recti?cation of the problem.
Opinion Feedback Process:
Anonymous Reporting: The Company supports anonymous reporting. As long as the information provided is true and reliable, it can be
used as the basis for investigation.Anti-Retaliation Policy: The Company strictly prohibits any form of retaliation against employees who report unfair treatment. Any
instances of retaliation will be thoroughly investigated and addressed, and the whistleblower will receive strict legal protection.Protection Measures: The Company has developed strict protection measures, including but not limited to identity con?dentiality, jobtransfer, legal aid, etc., to ensure the safety and rights of whistleblowers.
Reward Mechanism: For employees who report serious violations and their reports are veri?ed, the Company will provide certainmaterial or spiritual rewards. This is to encourage employees to actively participate in supervising and maintaining the Company'spositive operating environment.
Whistleblower Protection Mechanism:
E-mail：
qywh@megmeet.com
Reporting Channel:
Megmeet strictly abides by the Patent Law of the People’s Republic of China, the Tort Liability Law of the People’s Republic of China, theCorporate Intellectual Property Management Code and other relevant laws and regulations, and formulates and continuously improves aseries of management systems and guidance documents for the protection of intellectual property rights, such as the A00 Code for theManagement of Intellectual Property Litigation, the Management Measures for Specialized Rewards of Intellectual Property Rights, and theOperational Guidance for Intellectual Property Rights Proposals Process.In 2023, the Intellectual Property Department updated the management measures for special rewards to better ?t the actual operation ofthe Company, and adaptively updated the operation guidance documents for proposalprocess in accordance with the adjustment of theCompany’s platform. Meanwhile, in conjunction with the growing demand for intellectual property management, the Company added theManagement System for Intellectual Property Suppliers, Manual for the Use of Group Trademarks and Management Speci?cations for theProtection of Product Information, aiming at a more standardized use of the Group’s trademarks and a more e?ective protection of productinformation in the R&D process.Relying on the FTO module in the Company’s internal intellectual property management platform and the intellectual property nodeembedded in the PMS project management system, intellectual property engineers closely follow the progress of R&D projects, and assessand deal with intellectual property risks of the projects at various stages, such as project initiation, evaluation, and pilot testing, throughboth online and o?ine platform. The Company integrates intellectual property-related risk prevention into practical work, and formulatesa systematic document for responding to the process when risks occur, which is Intellectual Property Litigation Management Standards.In 2023, the Intellectual Property Department conducted a total of 24 fully documented IPR trainings for di?erent business units of theCompany, covering more than 470 people, including IPR training, IPR basics and skills practice, patent excavation and submission writing,etc., which e?ectively enhanced the IPR awareness of the Company’s employees.
In order to enhance employees’ knowledge of intellectual property rights and strengthen their awareness of intellectualproperty protection, the Company carried out a training for the basic knowledge of intellectual property rights. Thetraining started with an introduction to the basic concepts of intellectual property rights, and explained in detail di?erenttypes of intellectual property rights such as patents, trademarks, copyrights, etc., so that the employees could understandthe characteristics and scope of protection for each type of intellectual property rights. During the training, professionallegal advisors explained to employees the laws and regulations on intellectual property rights at home and abroad,including patent law, trademark law, copyright law, etc., so that employees could understand the basic principles andlegal procedures of intellectual property rights protection. Through case studies and interactive discussions, this trainingemphasized the importance of intellectual property protection, teaching employees how to identify and protect theCompany’s intellectual property rights, prevent infringement, and raise their alertness to intellectual property protection.Finally, this training covered the practical operation of IPR management, including patent application process, trademarkregistration process, copyright registration process, etc., which enabled employees to master the basic skills andoperation methods of IPR management. After the training, the employees gained a deeper and more comprehensiveunderstanding of IPR and realized the key role of IPR in the development of enterprises. They were able to better identifyand protect the Company’s intellectual property rights, and enhanced their self-awareness and initiative in protectingintellectual property rights, which will help the Company’s long-term development and innovation continuously.
The Company adheres to the basic principle of “zero tolerance” for corruption, bribery and major fraud, and has set up a variety ofe?cient and open reporting channels, including opinion boxes, feedback mailboxes, messages on WeChat O?cial Account and EIP issues.
The Company will continue to improve and perfect the reporting feedback system, complaint handling methods, and whistleblowerprotection mechanism to eradicate any instances of illegal or inappropriate behavior within the corporate and employee spheres.
Intellectual Property ProtectionOpen Reporting Channels
Megmeet Carried out Training on Basic Knowledge of Intellectual Property Rights
Enterprise WeChat O?cial Account：
Megmeet
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Annual Theme: Megmeet - Green Everywhere
3.1 Green R&D and Innovation
3.2 Green Operation
3.3 Product Quality and Customer Service
Showing Ingenuity and InnovativeDevelopment
Annual Theme
Megmeet - Green Everywhere
Focusing on The Transportation Industry,Creating Cutting-Edge New Energy Solutions
Megmeet is actively engaged in exploring the new automotive power and new energy integration ecology, fostering e?cient synergybetween new energy vehicles and renewable energy, and introducing comprehensive solutions for new energy vehicle power andcharging systems.
The Company has developed high-e?ciency power conversionequipment known as vehicle DCDC, which can convert thehigh-voltage electricity from the power battery in the vehicle intolow-voltage 12V electricity for the whole vehicle low-voltagesystem power supply. The product employs advanced controltechnology and covers a wide range of power bands such as1~3kW. Its e?ciency exceeds 95%, with a compact structurallayout, high power density, and ?exible installation. Meanwhile, itcan also be used for electrical integration with OBC/MCU andother components.Vehicle DCDC is mainly used for vehicle entertainment systems,vehicle air conditioning, and other low-voltage equipment powersupply, and has been successfully applied in a variety of passen-ger cars, logistics vehicles and bus air-conditioning systems,providing reliable power support for various types of vehicles.
Vehicle DCDC
The Company employs recyclable and renewable materials,primarily aluminum and plastic, for manufacturing the heatpump and heat management system. Additionally, it adoptsthe environmentally friendly R744 (CO2) refrigerant, a purelynatural option with zero Ozone Depletion Potential (ODP) anda Global Warming Potential (GWP) of 1. This choice aligns withthe requirements set forth in the Kigali Amendment to theMontreal Protocol, and represents a signi?cant factor anddirection in the Company’s endeavors to achieve its dual-car-bon goals.In addition, the R744 system is equipped with intelligentfeatures and uses energy-based comfort algorithms that cansigni?cantly increase the winter range of electric vehicles,achieving the perfect unity of comfort and energy e?ciencyratio. At the same time, we also adopt integrated andmodularized design, which is convenient for various modelsto be equipped and matched.
R744 Heat Pump and Heat Management System
Integrated Thermal Management Systemfor Passenger/Commercial Vehicles
Onboard Battery Thermal ManagementSystem (BTMS_EV)
Core product of heat pump and heat management system:
Battery Thermal Management System forEnergy Storage (BTMS_ESS)
Vehicle Multi-Electricity System (VMES)
We are continuously increasing our R&D investment in new energy vehicle charging systems and implementing an integra-tion strategy in the ?eld of charging piles, with a focus on providing high-quality charging modules. We deeply understandthe actual needs and pain points of our customers and are committed to providing them with more professional design andservice. Currently, we have developed a range of multi-series and multi-voltage charging modules, with power ranging from3kW to 30kW. Our products are characterized by high compatibility, ?exibility, reliability, and availability, making themsuitable for di?erent types of vehicles. We are also leading the industry in terms of large-range constant power and highprotection features.
Charging Pile Module
First to propose the concept ofconstant power module;
Taking the lead in responding to the newnational standard by increasing the drainresistance at the module end;Taking the lead in strengtheningthe protection process;
Pioneers in launching high power, widevoltage range, and full range of constantpower modules.
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Focusing on Engineering Industry, CreatingIntelligent Oil Recovery System
Focusing on Smart Home, Creating Smart Bathroom
Megmeet has launched an energy-e?cient alternative to the high energy consumption traditional pumping equipment: the electricsubmersible screw pump intelligent oil recovery system. This system is designed to actively explore green, safe, and reliable solutions withintelligent management capabilities, aiming to achieve seamless integration of digitalization and environmentally friendly practices.The Company has revolutionized traditional pumping equipment through advanced technology, resulting in the successful developmentof an electric submersible screw pump intelligent oil extraction system. This innovative system occupies a footprint of only 5 square metersand consumes just 7.5kW of power, leading to over 50% energy savings compared to products with similar displacement. Additionally, thesystem addresses the wear and tear issues associated with conventional rod lifting methods, making it more suitable for oil wells withcomplex well bodies and extending the pump inspection cycle.Compared with traditional pumping equipment (such as conventional pumping units and surface direct-drive screw rods), the electricsubmersible screw pump intelligent oil recovery system will not cause leakage at the wellhead, which has a unique advantage in environ-mentally sensitive areas. In addition, the system later intervenes with temperature and pressure measurement devices and APP remotecontrol, realizing intelligent operation, automatically adjusting the rotational speed to ensure the coordination of supply and discharge ofoil wells and maximize the production, increasing the oil recovery speed of oil wells, meeting the diversi?ed demands of the market, andimproving the ?exibility and economy of oil extraction, which opens up a prospective and innovative practice of digitalized extraction.At present, the electric submersible screw pump intelligent oil recovery system has been widely used in horizontal wells, low productionwells, thick oil wells, sandy wells and inclined wells, and the market share of screw pump rodless oil recovery in PetroChina’s largestoil?eld, Changqing Oil?eld, is more than 90%, truly realizing digital energy-saving, safe and reliable high-e?ciency oil recovery in thepetrochemical industry.
Zhejiang Yihe Sanitary Ware Co., Ltd., a subsidiary of Megmeet, has long adhered to the concept of green development, integratingenvironmental factors into product design, adopting environmentally friendly raw materials, and devoting itself to the development ofwater-saving and environmentally friendly products.
Cold Recovery of Thick Oil：The Company adopts the electric submersible screw pump intelligent oil recovery system toreplace the process of electric heated rod pump, realizing the cold recovery of high viscous oil wells without auxiliary viscosi-ty reduction and overcoming the problems of large friction and high energy consumption of electric heated rod pump.
Providing Green Solutions
The electric submersible screw pump intelligent oilrecovery system integrates an advanced controlcabinet that connects with onsite video monitor-ing, intelligent inspection robots, and controlcabinet operation robots. This system also utilizescloud services and AI algorithms to achieveintelligent management in various aspects includ-ing risk management at the wellsite, environmen-tal protection management, video violationidenti?cation, personnel identi?cation, and24-hour on-site surveillance of the control cabinet.
Intelligent Wellsite Management Mode
Rodless oil extraction has a large over?ow area, which greatly reduces the oil pipe line friction loss;
The screw pump pumping is continuousand smooth, without pressure agitatione?ect on the oil layer;
High pumping e?ciency screwlifting method realizes a signi?cantincrease in system e?ciency.
Green Raw Materials: The raw materials used by the Company strictly comply with ROHS-related requirements and never containharmful substances such as cadmium and arsenic. We promise consumers that all of our products are sourced from forests that canmeet the social, economic, and ecological needs of the present and the future, in order to support Green Peace.Green Design: Yihe has a professional intelligent toilet design, development and research team, adopts CAX R&D and design informa-
tionization platform, and adheres to the innovative development path of independent research and development. The Company hasestablished a global R&D system, and has taken the lead in launching international leading technologies, such as 900cc instant hottechnology, and has actively undertaken the task of researching the quality of the core components of intelligent toilets;Green Recycling: The Company proactively embraces environmental protection by establishing a dedicated department responsible for
the timely recovery and reuse of recyclable parts and materials. In our production processes involving items like paper tubes, cardboardboxes, plastic bags, and other packaging materials, we prioritize multiple uses to save costs and minimize resource consumption.
Value Chain and Multi-path Carbon Reduction
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R&D Innovation LayoutEmbracing the momentum of "global demand, global R&D, global product manufacturing, and global customers," the Company champi-ons the symbiotic growth of science and industry. Leveraging profound expertise in power electronics and automatic control technology,our R&D endeavors span the entire industry spectrum—from material production and core manufacturing to system integration andrecycling. This comprehensive approach has cultivated a distinctive digital and intelligent R&D system, enhancing our capacity for innova-tion and global competitiveness.With an experienced R&D team and extensive and in-depth external cooperation, the Company has established a multi-departmental,internal and external synergistic R&D model, and has set up R&D centers in Changsha, Shenzhen, Xi’an, Wuhan, and Germany around theworld, to build up a standardized, e?cient, and sustainable R&D system.The Company continuously ramps up R&D investment, promotes the construction of scienti?c research platform, and enhances R&Dcapability. The Company builds Megmeet Global R&D Center, which is the largest R&D headquarters of Megmeet Electric with the widestbusiness coverage and the strongest R&D strength, including 8 laboratories in di?erent ?elds such as safety certi?cation, EMC, reliability,failure analysis, etc., two 3-meter electric darkrooms and one 10-meter electric darkroom, and 14 comprehensive laboratories of powerelectronics, aiming to reach the world’s leading level in the development of software for power electronic parts and systems and build thelargest testing laboratory in central China.
Low-Carbon ProductionThe Company integrates the energy management concepts of low carbon, energy saving and e?ciency into its corporate culture, activelypromotes the use of clean energy and environmentally friendly materials, and injects environmentally friendly attributes from the productdesign stage. We are committed to pursuing a green and low-carbon production mode, continuously optimizing the production process,reducing energy consumption, and improving energy e?ciency. During the production process, we strive to reduce the use of energy andachieve energy saving and e?ciency by improving the process and optimizing the energy structure.Energy management stands at the core of our commitment to green and low-carbon manufacturing, embodying a crucial aspect of ourjourney toward sustainable development. The Company's energy consumption primarily comprises direct sources such as natural gas,gasoline, and diesel fuel, alongside indirect energy from purchased electricity.
Green R&D PhilosophyThe Company adheres to the mission of creating a more e?cient use of electricity, a cleaner living environment, continuously improvingproductivity and a better life for mankind, and aspires to be the world’s leading provider of products and solutions in electrical automa-tion. As a one-stop solution provider in electrical automation, Megmeet takes power electronics and automatic control as its core technol-ogy, and its business covers six segments, including power supply products, industrial automation, new energy and rail transportation,intelligent equipment, intelligent home appliance electronic control, and precision connection.
The Company upholds the concept of innovation and development, and constantly explores and advances in research and development.We have established an R&D management system using the IPD (Integrated Product Development) model to standardize the R&D processand e?ectively guarantee the quality of our products. In addition, Megmeet has established a raw material audit process, including areview phase and a validation phase, to ensure that raw materials meet the design requirements of the R&D phase. Throughout thefront-end R&D process, we strictly control material selection, design, and development based on national and industry standards, as wellas customer requirements, to ensure that our products achieve optimal quality and performance levels.
Energy Management Targets in 2023 for Yihe Sanitary Ware,a Wholly-owned Subsidiary of Megmeet
Low-Carbon Action Practice: The Company has launched industry-leading energy-saving inverter instant hot smart toilet, and newgreen products such as independent water pressure and wall discharge, allowing customers to maximize the enjoyment of energysaving and environmental protection and practical convenience. We insist on the integration of dualization to build a digital systemplatform integrating the whole process control of products and mobile o?ce with ORACLE-ERP as the basis, PLM as the technical end,MES, WMS and EIP as the executive end, so as to make production more e?cient and quality more stable;Empowering Downstream Customers: The Company continues to innovate and develop new products, and a number of products have
reached the national level of water e?ciency standards, providing a solid foundation for the development of downstream products;Green Standard Development: The Company plays an active role in developing green design standards and has contributed to the
creation of several standards such as the CEEIA278-2017 Intelligent Toilet Cover Green Design Standards and the GB38448-2019Intelligent Toilet Energy E?ciency Water E?ciency Limit Values and Levels. In total, we have been involved in the development of 17standards, aiming to steer the industry towards green and sustainable development.
Green Co-construction of Industrial Chain
Green R&D and Innovation
Green Operation
six segments
IntelligentHomeApplianceElectronicControl
Power SupplyProductsNew Energyand RailTransportation
PrecisionConnection
IndustrialAutomation
IntelligentEquipment
Unit product consumption ≤0.69kgce/unit.
Energy consumption of 10,000 Yuan output value ≤
5.2kgce/million Yuan
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Main Energy Types and Usage Scenarios
We should strive to minimize environmental impacts by reducing the amount of packaging materials used, the amount of energyconsumed in the packaging process, and the amount of waste generated;We should improve the sustainability of packaging, adopt renewable or recyclable packaging materials, and extend the service life ofpackaging in order to realize the e?ective use of resources;Green packaging is not only a re?ection of environmental protection, but also an e?ective way to enhance the Company’s brand image.By adopting green packaging, the Company demonstrates our commitment to environmental protection and sustainable development,and enhances consumers’ favorable impression of the Company and its brand image.
The Company focuses on low-carbon operation and adheres to the energy management policy of “green and low-carbon, energy savingand e?ciency”. We actively cultivate energy-saving and low-carbon awareness and skills among all sta?, and equip them with higherliteracy and skill levels in energy saving and emission reduction through continuous training and education activities. During the reportingperiod, the Company controlled the usage of air-conditioners, elevators, lighting and other equipment in o?ce areas to reduce energyconsumption. At the same time, employees are encouraged to develop energy-saving habits in the daily o?ce process, such as rationaluse of equipment, saving water, reducing paper waste, etc., so as to jointly commit to energy saving and emission reduction and realizesustainable development.
The green packaging is not only our responsibility, but also our commitment to future generations. We will continue to work hard to createa cleaner and greener future.The Company has formulated detailed green packaging standards and speci?cations to clarify the requirements for the selection ofpackaging materials, packaging design, and packaging production. At the same time, the Company’s supplier management systemstrictly requires suppliers to be evaluated in terms of green packaging, and prioritizes suppliers who can provide environmentally friendlyand sustainable packaging materials.The Company has set up a Green Packaging Management Team and Committee, which are responsible for formulating green packagingstrategies, supervising their implementation, and evaluating and adjusting the e?ectiveness of green packaging on a regular basis. Themanagement team and committee are composed of representatives from R&D, production, purchasing, marketing, and other depart-ments to ensure that the interests of all parties are balanced and coordinated.
We actively select recyclable and biodegradable packaging materials, such as cardboard and bioplastics, tominimize the adverse impact on the environment. By using these materials, the Company reduces the carbonfootprint of packaging and promotes the e?cient use of resources;
For certain products or components, we have designed recyclable packaging solutions, such as reusableplastic boxes or trays, to achieve reuse during multiple shipments and storage, and to reduce the consump-tion of packaging materials and the generation of waste;
We actively encourage our customers to return used packaging to the Company for recycling. In order toachieve this goal, the Company has established corresponding recycling systems and processes, and cooper-ates with customers to jointly promote the recycling of packaging and reduce environmental loads.
We have optimized our packaging design to reduce the use of unnecessary packaging materials. The use ofcompact packaging design can e?ectively reduce wasted space and improve packaging e?ciency, whilereducing transportation costs and carbon emissions;
Megmeet is dedicated to upholding a packaging ethos centered on being "green, environmentally friendly, and sustainable." This ethos isseamlessly woven into every stage of our packaging design and material selection processes. We place paramount importance onmitigating negative environmental impacts and steadfastly advocate for the recycling and reusability of packaging materials. Within thisframework, we have established the following goals:
Green Packaging
Packaging Recycling ProgramDirect energy
Naturalgas
Gasoline
Diesel
Sta? canteen gasOwn vehicle operation
Own vehicle operation, backup diesel generator operation
The Company launched the MRF280-TCU project, whichaims to fully adopt paper packaging design to realizeenergy saving, environmental protection, cost reduction,and e?ciency improvement. The project solution includesthe use of a design that combines molded pallet (bamboopowder) and pulp molding, and the introduction of paperboxes to replace the traditional plastic packagingstructure to achieve de-plasticized packaging. It alsoadopts low-density weight reduction technology tofurther reduce packaging weight and minimize energyconsumption and material waste.
MRF280-TCU Project
Lower Pulp PalletMiddle Pulp TrayPulp Molded Pallet Dynamic load 3T, static load
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During the reporting period, the Company has achieved ISO 9001:2015 quality management system certi?cation. The testing capabilityand management system of the Company’s laboratory have been recognized by authoritative institutions, with quali?cations such asCNAS, TUV, UL-WTDP, UL-CTF, etc. The test results are mutually recognized globally, providing strong technical support for both the R&Dveri?cation of new technologies and the monitoring and veri?cation of process products.
The Company did not have any active or passive recall of products due to product quality problems in the course of operation in 2023. Itssubsidiary, Zhejiang Yihe Sanitary Ware, won the “Boiling Quality” Award and the Science and Technology Progress Award of ZhejiangProvince in 2023 for its product, Yihe Intelligent Toilet.
Quality Management System
Green Logistics
Megmeet strictly observes the Product Quality Law of the People’s Republic of China,Standardization Law of the People’s Republic of China and GB 4943, GB/T 9254, GB15579,IEC 60601-1, GB31241, GB4706, GB/T 18387, GB/T 18487, IEC 61215-2 IPC600, IPC610, IPC620and other domestic and international product quality and safety policies and standards.We develop and implement the Management System Manual, Medical ManagementSystem Manual, Functional Safety Management Manual, Document Control Program,Record Control Program, Internal Audit Control Program, Management Review ControlProgram, Equipment Control Program, Emergency Preparedness and Response ControlProgram, Human Resources Control Program, Contract Review Control Program, CustomerSatisfaction Control Program, Nonconformity Control Program, Corrective and PreventiveControl Program, Marking and Traceability Control Program, Compliance EvaluationProgram, Monitoring and Measuring Devices Control Program, Customer Feedback ControlProgram, Design and Development Control, After-sales Service Control Program, Purchas-ing Control Program, Production and Service Control Program, Service Control Program,Feed Inspection Code of Practice, Process Inspection Code of Practice, Finished ProductInspection Code of Practice and a series of system documents related to quality objectivesand quality management system.Megmeet attaches great importance to quality management, and always adhere to thequality strategy of “zero-defect ideology”. We strictly follow the ISO9000 qualitymanagement standard and have established several product quality managementsystems, including ISO13485 quality management system for medical devices andIATF16949 quality management system for automotive industry. The Company not onlystrengthens quality control during product design, production and delivery, but alsofocuses on quality management throughout the product life cycle to ensure the delivery ofhigh quality and reliable products to customers.In 2023, Megmeet further expanded the scope of product quality certi?cation to includecharging piles, photovoltaics and wind power. The Company has also added new productquality certi?cations in categories such as automotive thermal management systems andmedical ventilator products. By strengthening the quality certi?cation of the products, itguarantees the quality and reliability of the products and provides customers with betterand more reliable products.
The Company is committed to promoting green logistics management and has taken a series of measures to achieve this goal. Firstly, weactively adopt recycled logistics containers, such as pallets and crates, to reduce the use of disposable plastic packaging, to realize therecycling of logistics packaging and to reduce the environmental load. Secondly, we optimize our transport packaging to reduce theconsumption of packaging materials, while ensuring the safety of our products during transport and improving transport e?ciency. Inaddition, we work closely with our logistics partners to promote green logistics practices, such as adopting environmentally friendlytransport vehicles and optimizing transport routes to reduce energy consumption and environmental emissions during transportation.Finally, we establish a packaging reuse and recycling mechanism with express transportation companies to recycle and dispose of usedtransportation packaging to realize the recycling of resources and make positive contributions to the sustainable development andpractice of green logistics.
Product Quality and Customer Service
TUVRheinland LaboratoryAccreditation Certi?cate
Underwriter Laboratories Inc.
Laboratory Accreditation Certi?cate
UL-WTDPAccreditation Certi?cate
CNASLaboratory Accreditation Certi?cate (Yihe Sanitary Ware)
CNASLaboratory Accreditation Certi?cate
(Megmeet)
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“Zero Defect Ideology + Informationization” Quality Management Model
Application of “Zero Defect Ideology + Informationization” in the R&D
Megmeet has been committed to the pursuit of quality excellence for many years. Admist intense market competition, we maintain closecooperation with our customers. We have established a complete organizational structure and a highly professional team with thesupport of the senior management, which lays a solid foundation for the implementation of the “Zero Defect Ideology”. Through yearsof experience and practical exploration, we have created a quality management model of “Zero Defect Ideology + Informationization”,which strengthens the use of informationization to improve customer satisfaction and enhance market competitiveness.The zero-defect management system is anchored on the principles of “one center, two basic points, three needs, and four principles”.Among them, “one center” refers to zero-defect management, i.e., the requirement to do things right at the ?rst time so as to reducecosts, improve e?ciency, and increase economic bene?ts. The “two basic points” include practicality and reliability, and the pursuit ofboth practical and reliable results. The “three needs” cover the needs of customers, employees and suppliers, forming a uni?ed valuechain. The “four basic principles” include conformity, prevention, Zero Defects as a guideline, and measurement of quality performanceat the cost of quality. The Company’s quality management concept combines zero-defect ideology with information technology, andimplements the theory of zero-defect ideology based on the existing process activities of the enterprise.Leveraging years of experience in quality management, the Company has developed a comprehensive quality management concept mapknown as the "Zero Defect Quality House." This tool serves as a pivotal framework for us to uphold the zero defect ideology and adhere toquality management principles. It encompasses all facets of quality management, overseeing the entire process from conceptualizationand development to post-sales service.
The Company’s quality management structure is based on the guiding principle of realizing the goal of “doing it right the ?rst time”, andcontinuously raising the goal and making continuous improvements to gradually reach the ultimate goal of “zero defects”. Based oninternational quality management standards, the Company is committed to establishing a life-cycle quality management system toensure that every stage of product design, development, inspection, delivery and after-sales service meets high quality standards.Meanwhile, the Company has set up strict quality speci?cation requirements in the R&D and manufacturing process to standardize thequality management in the production process. The Company focuses on supplier quality management to ensure that every link in thesupply chain meets quality standards. In terms of service, the Company is committed to providing high-quality after-sales service toensure customer satisfaction and brand reputation.In order to support the implementation of the quality management system, the Company has made every e?ort to build an information-ization platform. The components of this platform are based on the PLM (Product Lifecycle Management) system platform for R&D productdata and project management, the ERP (Enterprise Resource Planning) system platform for enterprise resource and ?nished productmanagement, and the MES (Manufacturing Execution System) system platform for production and manufacturing process, warehousingand logistics management. The synergistic uses of the three systems helps the Company better realize the quality management conceptof “Zero Defect Ideology+Informationaization”.
In addition, the Company has optimized its quality control methods and production model based on a selection from a wide range ofsources. The Company has adopted the APQP (Advanced Product Quality Planning) methodology, which is based on the automotiveindustry’s quality manual, to realize lean production with uninterrupted operations and the pursuit of an automated production model.
Adhering to the concept that addressing quality issues early in the R&D phase signi?cantly cuts down on problem-solving costs, Megmeetapplies the zero-defect quality management principle of "getting it right the ?rst time" to the R&D stage. The Company ?rmly believes thatachieving zero defects during the initial R&D phase can substantially lower the expenses associated with addressing issues later on,leading to enhanced product quality and increased customer satisfaction.To achieve this objective, the Company implemented a PLM (Product Lifecycle Management) system platform that facilitates an IntegratedProduct Development (IPD) process. IPD is guided by a framework amalgamating industry best practices, focusing on process and productre-engineering to expedite time-to-market, enhance product margins, and streamline product development. This approach deliversadded value to customers and shareholders. Through IPD, the Company ensures quality management from the outset of product develop-ment, aiming for zero defects in design and development. Simultaneously, IPD enhances product pro?tability and accelerates the productdevelopment cycle, aligning with the goal of sustainable development and creating a win-win scenario.
Zero DefectsDo it right the ?rst time
+
Continuous ImprovementAdvance Quality Planning (APQP)
+
Lean Manufacturing
+Automation
ISO9001 Quality System, ISO13485 Medical, IATF16949 Automotive
PLMProduct Lifecycle
ManagementERPEnterprise ResourceManagement
MESManufacturingExecution
Conceptualization
ProductDevelopment
ProcessDevelopment
Batch Delivery
After-Sales
ServiceProduct andProcess Validation
Market Management Process
IPD ProcessProduct StrategyMarket InformationCustomer FeedbackCompetition InformationTechnology TrendsProduct Portfolio
PlanDevelop
Common Tools (Business, Technical) Strategy and Process Based KPI SystemProject ManagementRequirementsManagement
Con?guration andChangeCBB-Reuse
Technical ReviewProcurement/OutsourcingManagement
Quality ManagementPipelineManagement
Document ManagementHardware andSoftware Design
ValidateReleaseLife Cycle
LPMT
PMTMktMfg
SveDevPret
LPDT
PDT
MktMfa
SveDev
FimSWPrec
Full
LPDT
TDTTdMfgFullDevPrec
√√√√
Managing Segments and EvaluatingPerformanceIntegrate andOptimizeBusiness PlansDevelopSegmentationStrategies andPlansPortfolioAnalysisMarketSegmen-tationUnderstandingthe Market
Best-in-ClassSub-ProcessesPerformanceManagement
IPD Tools
R&DQualityRequire-
ments
SupplyChainQualityRequire-
ments
Manufac-
turingQualityRequire-
ments
ServiceQualityRequire-
ments
Integrated Portfolio Management Team (IPMT)Product Strategy
Concepts
Platform and Technology Development
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Reliable and Stable CooperationCohesion and CooperationWith Sincerity, Walking TogetherSustainable Development Management
We recognize the signi?cant impact of component quality and delivery reliability from suppliers on the ?nal product quality. Therefore, wesubject all raw material suppliers to rigorous quality audits to verify their quali?cations and capabilities. Moreover, we mandate that allmaterials supplied undergo con?rmation and veri?cation by our material engineers to ensure compliance with our quality standards.These stringent measures enable us to e?ectively manage our supply chain, maintain product quality and delivery consistency, and o?erour customers superior products and services.During the product design stage, R&D engineers will select suitable components from a pool of quali?ed raw material resources andconduct product design and debugging according to the product design requirements to ensure that the product is in the best condition.All raw materials that make up the product will be recorded in the BOM (Bill of Materials), which contains quali?ed materials from quali?edsuppliers, realizing the Company’s pursuit of “zero-defect” management ideas.In order to manage the supply chain system more scienti?cally and e?ciently, the Company has introduced an ERP (Enterprise ResourcePlanning) system platform, which is currently an Oracle ERP system covering modules in manufacturing, logistics and ?nance, etc. Thishelps the Company to manage the supply chain more e?ciently, ensure the quality of the raw materials and the timeliness of the supply,and improve the quality of the products.
The Company uses the manual assembly table to strictly control the ?ve key work processes of screw locking, realizingon-line semi-automatic manual screw locking operation and at the same time, it has the following anti-dumbness and errorprevention functions;
Manual Assembly Table-Screw Locking Process
Product Safety and Testing Management
Application of “Zero Defect Ideology + Informationization” in Production Planning
Risk Prevention and Control: The Company carries out risk control on the introduction of all new technologies, new product platforms,new parts and new types of products, identi?es the safety and reliability risks of the introduction of new technologies, and developssolutions;Tool Optimization: The Company develops and optimizes safety and reliability related testing methods for the whole life cycle ofproducts, identi?es key problem points, supports the e?ective detection of characteristic indexes at the incoming material and processstages, and promotes the quantitative identi?cation of reliability risks;Digitalization: The Company set up an automation department, using automation equipment to support the platform for manufacturingand development, to ensure that the impact of inconsistency on product quality is reduced in the production process;
Team Building:
The Company set up a testing center to establish testing laboratories for the whole life cycle of products, such as EMC, reliability, life,safety and failure analysis, so as to comprehensively improve the safety and reliability of products;The Company's product testing team comprises 108 members, including 9 graduate-level experts and 99 undergraduates. The testingcenter is structured into specialized departments, namely the hardware testing department with 95 personnel, software testing depart-ment with 18 personnel, safety engineering department with 14 personnel, and reliability engineering department with 9 personnel.
Locking Position and Order Control: It solves the problem of manual screw locking due to the established position andorder of locking and locking bad;
Locking Quantity Control: It can set the locking quantity to prevent locking defects caused by under locking and overlocking screws;Screw Feeding Control: It can set the number of screws to be fedautomatically to prevent screws from being lost inside the productcasing and a?ecting product performance;NG Screws Control Function: With locking NG (torque value or
angle value failed, etc.) in the locking process, the system willautomatically provide new screws for feeding, e?ectively prevent-ing the out?ow of locking NG products;
Locking Data MES Control: It can automatically upload the lockingangle and torque to the MES system to e?ectively trace the productlocking data.
Product Safety and Reliability Management Actions in 2023
Accounts PayableCost OperationsAccounts Receivable
Invoice Operations
Forecast
MDS
CustomerPO
MPSMRP
PRPO
Shipping
Receiving
WIP
WIP Issue
ProductionControl
WIPComplete
Product safety and reliability are the main characteristics of quality, and the core of quality is to ensure high reliability. The Companyfocuses on risk management and data management of product reliability in the entire process of technical elements, product develop-ment and mass production, in order to ensure the safety and reliability of products in the entire life cycle, and provide customers with morereliable products and services.
Product Safety and Reliability Management
All-in-One
All-in-OneScrew FeederScrew Collection Tray
Tri-Color Light
Electric Whip
Products & Carriers
Encoders
Upper Transfer RailLower Return TrackBooster Arms
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The Company uses the printing re?ow module for material control, realizing the order and quantity of material put into theanti-dumbness, and can return the printing carrier to save manpower handling.
Print Re?ow Module - Component Surface PrintingThermal Grease Work Process
Sequence Control: The Company sets the order of openingthe material box to realize the error-proo?ng of the orderof picking up materials by the personnel and prevent thechance of wrong materials;Material Control: The Company separately placed di?erent
types of materials to prevent diodes and MOS tubes andother similar materials mixed, which is di?cult todistinguish;Quality Control: The Company uses CCD camera to take
pictures to detect the degree of silicone coverage to avoidleakage of brushing or lack of silicone in the printingmachine caused by uneven coverage, shallow coverage,not printed and so on.
Material and Product Inspection Key Links
The Company carries out strict control in material and product inspection, and uses preventive inspection to deal with possible productquality problems in each link to ensure product quality. In response to new or possible quality problems, the Company gives priority thepreventive testing by adopting solutions such as error-proo?ng and anti-defective, equipment automation, etc., in order to improveproduct quality and production e?ciency.In order to ensure that the quality of products meets the standards, the Company has formulated a series of strict management methods,including Nonconforming Product Control Procedures, Corrective and Preventive Control Procedures, Marking and Traceability ControlProcedures, Control Procedures for Monitoring and Measuring Devices, Incoming Inspection Code of Practice, Process Inspection Code ofPractice, Finished Product Inspection Code of Practice, as well as the Measures for the Administration of Product Type Experimentation.These management methods stipulate speci?c inspection standards, processes and responsibilities to ensure e?ective quality control andinspection in each production process, and timely management and disposal of non-conforming products.
Closed-loop Management of Nonconforming ProductsThe Company has formulated the Nonconforming Product Control Procedures to standardize the nonconforming product managementprocedures through two dimensions: business process and on-site process, to form a closed-loop operation of identi?cation, marking,segregation, evaluation, disposal and improvement, and to clarify the responsible departments for each process, so as to strictly controlthe quality.
Product Inspection and Nonconforming Product Management
Material Acceptancefor Inspection
Material Inspectionand Sampling
Finished ProductInspection
Before and after the products are put into storage, we implement sampling inspection to ensurethe quality of the products shipped. First of all, according to the sampling plan of OQC (Outgo-ing Quality Control), the manufacturing center submits the quali?ed products of each batch ofproduction line to the warehousing process and sends them to the FQC (Final Quality Control) ina timely manner. The inspector arrives at the product placement area for on-site con?rmation toensure that the product model and quantity match the production submission process. Afterthat, we conduct random sampling of each batch of products and mark the sampled batch ofproducts for inspection, the FQC inspector is responsible for unpacking and inspecting thesampled products in terms of appearance of the outer box, marking of the outer box, packagingaccessories and packing method. After passing the inspection, the unpacked machine will beplaced in the OQC inspection area. After that, the inspector will move the whole machine to theinspection table for inspection, according to the ?nished product inspection speci?cation,artwork documents and customer sealed samples for inspection. At the same time, we alsocheck the palletizing, marking and protection of the products to ensure that they meet therequirements.After the products are put into storage, we continue to carry out random inspections. For?nished product shipment, we require checking whether the loading and unloading methodsmeet the requirements, and verify whether the models, quantities and speci?cations of theshipped products are consistent with the requirements of the sales invoice, as well as checkwhether the protection of the shipped products meets the requirements.
The Company clari?es the authority and responsibility of line inspection and standardizes therelated operation procedures, which helps the Company to grasp the abnormal situation of theprocess in a timely manner, ?nd out the defects or potential shortcomings at an early stage andfeedback the countermeasures to the related departments, actively participate in the improve-ment and tracking, and prevent the product quality problems from occurring again. As animportant part of the Company’s quality control, the inspection department takes one wholemachine for the ?rst inspection to ensure that the physical object is consistent with the SOP(Standard Operating Procedures), BOM (Bill of Materials), ECN (Engineering Change Noti?ca-tion), and aesthetic requirements, and to ensure that the type and speci?cation of the parts, theinstallation method, and the color of the device are in full compliance with the requirements,and at the same time to ensure that the product’s functionality and appearance are in line withthe product inspection speci?cations. The Company has formulated the best time for the ?rstpiece inspection, including before continuous mass production of parts and products, after thereplacement or repair of equipment and mold damage and optimization and improvement, the?rst production of engineering change products, the restart of production when switching toother products halfway after mass production, and the replacement of product models.In the inspection of the whole machine assembly, aging and packaging process, we strictlyfollow the requirements of the whole machine QCP (Quality Control Plan) engineering table andSOP. For each station, we check and inspect one by one, and record the inspection results in theIPQC Inspection Record of the MES system for timely tracking and analysis. Once we ?nd that theabnormality exceeds the standard or reaches the condition of stopping the line, we will immedi-ately notify the relevant personnel to deal with it and ensure that the problem is solved in time.For problems that cannot be solved, we require timely feedback to the IPQC (Process Control)team leader for further action. We enforce strict standards in dealing with abnormal qualitystoppages to ensure that the quality and stability of the production line is e?ectivelymaintained.
The Company strictly checks the quality of incoming materials and standardizes the inspectionprocess of incoming materials to ensure that the materials used in production meet the require-ments. First of all, IQC (Incoming Material Inspection) will check the materials and correspond-ing documents after receiving the noti?cation of material delivery. Afterwards, the inspectoroperates the testing instruments according to the standards and records the results in theincoming material inspection report in the MES (Manufacturing Execution System). We requireour inspectors to provide inspection results within two working days under normal circumstanc-es and within two hours in case of emergency. We emphasize the quality of each batch ofmaterials and ensure that the required procedures are strictly followed in each inspection toensure the quality and reliability of our products.
Return BeltSensorsCylinders
TouchscreenBuilt-inCCDCamerato TakePicturesMaterial Boxes
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Employee Quality Training Case
The Company categorizes grades for the degree of defects of nonconforming products:
The Company advocates the management policy of “researching technology, casting quality, caring for the environment, green energysaving, caring for health, integrating development, full participation, continuous improvement, safety and reliability, and honest service”,and puts the priority of technology and quality ?rst in an important position. In order to implement this management policy, Megmeet hasset up a quality committee and an independent quality management department, dedicated to guaranteeing the quality of products andservices. At present, the Company has more than 400 quality sta? members, of which more than 70% have many years of experience inquality or related industries, and some of them have worked in large domestic and foreign enterprises, with rich practical experience andprofessional knowledge, which provides solid support and guarantee for the Company’s quality management.The Company actively promotes the quality culture for all sta?, and has formulated quality assessment standards for rating sta? andstandardizing training and assessment standards. In addition, we have conducted quality and safety training covering changes in produc-tion standards and management methods, past production accidents, customer product complaints and typical cases. At the same time,we have also carried out special skills training for quality engineers, covering the operation skills of the ?ve major tools related to quality.The Company enhances the quality management awareness of all sta? by continuously improving their professional skill level. During thereporting period, the Company conducted a total of 741 trainings, with a cumulative total of 40,649 training hours.
The Company conducted four quality management training courses for the middle management cadres, with a total of 200employees attending. The training covers the construction of the Company’s quality management system, the implementationof IPD process, the relationship between quality cost and cost, the sharing of quality incident cases and quality improve-ment-DMAIC method. The Company aims to help middle management cadres understand the Company’s quality managementsystem, learn the correct implementation of the IPD process and quality improvement methods, in order to improve the qualityof products, reduce costs, increase e?ciency, and work together to create high-quality products.
Any defect thatdoes not meet theestablishedrequirements anddoes notsigni?cantly a?ectthe appearance orperformance of theproduct
Defects that maya?ect the failureof the perfor-mance of theproduct, or reduceits performance,or a?ect theimage of theproduct.
Defects that mayresult in a threatto the personalsafety or propertyof the user, themanufacturer, orthe assembler
MinorDefects
MajorDefects
FatalDefects
We insist on the rework and repair of ?nished products that are judged to be unquali?ed in the ?nal inspection, and followthe special procurement process to deal with them. In case of online ?nished products, warehouse ?nished products orproduction workshop parts that are judged to be unquali?ed in bulk and need to be reworked, CQE is responsible fororganizing and issuing the rework process and assisting the production department to formulate the rework plan, which willthen be handed over to the production department to perform the rework task.
Disposal of Nonconforming Products
Customer Relationship Management
Company Quality Culture
The Company adheres to the service concepts of customer-centeredness, focusing on core technology, continuous innovation andcraftsmanship, the pursuit of doing the right thing at one time+continuous improvement, and the pursuit of delivering zero-defect andcompetitive products to the customers on time, and continues to strengthen the pre-sale, in-sale, and after-sale customer services to builda high-quality customer service system. The Company has formulated the Customer Service Center Performance Assessment and IncentiveSystem, and further updated the After-sales Service Control Procedures during the reporting period to improve the internal managementof customer service and enhance the e?ciency of response to customer needs.The Company has implemented a digital and intelligent customer management model, focused on long-term customer demand,established a customer demand management system, promoted the integrated data reporting of sales, marketing and customer servicedepartments, and pulled through the data information of various departments to realize the traceability of the data source, in order tooptimize the Company’s internal production capacity deployment and better meet customer demand.
Customer Service
For online ?nished products, warehouse ?nished products or production workshop parts thatare judged to be unquali?ed and need to be reworked in bulk, the PQE is responsible fororganizing the IE to issue a rework process and assist the production department to developa rework plan, which is then handed over to the production department to perform therework task;
For materials or parts outside the production plant that are judged unquali?ed in batches, inprinciple, the Company stipulates that online rework is not allowed. However, if these materi-als are urgently needed for production, PQE will contact with the parts business department,injection molding department or machine SQE to jointly develop a rework plan and organizethe relevant personnel to carry out online rework. As for non-urgent materials, PQE willdirectly decide to return them for processing;
When self-inspection, mutual inspection, special inspection found sporadic unquali?ed andIPQC con?rmed the need for rework or repair, rework products will be reworked by theproduction team.The PQE is responsible for rework products, records the rework informationin the MES system, and makes corresponding “rework records”. All reworked/repaired?nished products and parts need to be inspected by special inspection, and recorded into theMES system for full inspection information and QC bad record of reworked work orders. If theyare judged to be unquali?ed by OQC sampling, they need to be re-reported for inspection,and only after OQC re-inspection are they quali?ed for warehousing.
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The Company standardizes the duties of each department to ensure that complaints are handled and resolved e?ectively:
The Company establishes Customer Complaint Handling Norms to actively safeguard the rights and interests of customers. We builddiversi?ed customer communication channels through various channels such as the o?cial website, complaint hotline, e-mail andface-to-face interviews.The Company emphasizes timely response to customer complaints and sets response time requirements, requiring initial response andcon?rmation of basic solution measures within 24 hours, speci?c handling measures within 3 days, and ?nal solution within 5 days. At thesame time, we attach great importance to the special requirements of our customers, and when dealing with customer complaints, wealways give priority to the special needs of our customers to ensure personalized care and respect for our customers.The Company has established a Customer Complaint Improvement Team, whose members are established by the Company’s complainthandlers according to the characteristics of the complaints. The team members include personnel from direct and indirectly cooperatingunits to ensure comprehensive handling and improvement of customer complaints. In the case of major customer complaints, we have setup a Leader of the Improvement Team (LEAD) to ensure that there is a professional leader to organize, coordinate and promote problemsolving and improvement work at critical moments. In addition, the Company also carries out timely analysis of the true cause of customercomplaints, synthesizes the information provided by the customer, and uses a variety of testing equipment and analytical techniques toanalyze and verify the defective phenomena and determine the root cause of product quality problems.The Company has standardized the process of proposing improvement measures, requiring feasibility and operability assessment beforeproposing, and considering the impact on other functions or appearance. At the same time, the Company provides open improvementinformation and explanations to customers by attaching before and after countermeasure comparison charts, data, and theoreticalanalysis data to enhance customers’ con?dence in and support of our improvement e?orts.The Company categorizes the customer complaints into three levels in order to manage and resolve complaints more e?ectively, furtherimprove customer experience and maintain customer relationships.
Customer Complaint Handling Process
The Company attaches great importance to the customer complaint handling process to ensure customer satisfaction and continuousimprovement of product quality. In terms of collecting information on customer complaints, the engineers of the Company’s CustomerQuality Department immediately launch an exhaustive investigation when they receive customer complaints or feedback from variousdepartments within the Company. The investigation covers customer material number, product model, shipment date, batch size,defective quantity, defective phenomenon and other speci?c content, and these information are clearly registered into the Company’sCustomer Complaints Statistics, to help the responsible departments to fully understand the complaint situation.In the handling of customer complaints, we strictly follow the level of customer complaints to carry out targeted processing. For generalcomplaints, we will quickly feedback the problem to the responsible department, and closely follow up the progress of processing, toensure timely feedback to customers on the results of processing, and the closure of the problem in a timely manner to the customer, tomaintain good customer relations. For serious customer complaints, we inform the quality director and the relevant management of theCompany in a timely manner, and organize the relevant departments to analyze the causes, develop appropriate treatment countermea-sures and corrective and preventive reports, so as to provide timely feedback to customers and problem handling. When it comes to onlineor in-stock defective products, we carry out quality locking and organize rework to ensure that the problem is solved in time. For majorcustomer complaints, we will ?ll in the Corrective and Preventive Report to the responsible department after the customer’s problem hasbeen dealt with, and follow up on the corrective and preventive measures to ensure that the problem is completely solved.
Customer Complaint Management
Problems that have a small impact on the client, such as sporadic product failures and minor appearancedefects.General
Problems that cause strong customer dissatisfaction, such as electrical performance exceeding the targetvalue required by the customer or batch appearance, labeling and other defects.Serious
Problems that cause strong dissatisfaction of the customer, such as the product batch of poor electricalperformance or environmental protection failures, requiring rework, recall, claims and other ways to dealwith the problem.Major
Customer Quality DepartmentResponsible for communication to con?rm and follow up on customer
quality complaint information;
Con?rm the validity of complaints, and case registration andprocessing time limit management;Notify quality personnel to lock abnormal products inERP system;
Organize the investigation of customercomplaint issues, locate the responsibledepartments, and formulate thehandling plan;
Follow up the response reportand con?rm the e?ect ofmeasures.
Marketing Department
It needs to give truthful feedback to the qualitydepartment and assist the quality departmentto deal with customer complaints;
R&D Department
It needs to analyze and locate thetechnical problems of product applica-tion, and participate in the developmentof treatment programs;
Production Department
It needs to deal with customercomplaints about the rework of thebatch of defective products;
After-sales Service Department
It needs to analyze and deal with themaintenance of defective products after sale.
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Megmeet insists on responsible sales and marketing, providing accurate and comprehensive information in market development, customersales and product labeling management. The Company carries the awareness of compliance throughout the whole process of businessdevelopment and contract management, and regulates the compliance of the marketing department, sales team and product team in thebusiness process.The Company is actively engaged in brand building and has set up a brand speci?cation system to meet market demand. In 2023, wedemonstrated the strength of our brand through a variety of marketing tools. We completed 25 Company product brochures, more than 20PowerPoint presentations on our products and Company branding, and organized more than 23 o?ine events, among others. For videocampaigns, we produced 11 corporate videos, 3 product introduction animations, and over 28 short company videos. In addition, we have?lmed more than 200 product videos to comprehensively showcase our product lines and brand image.
Responsible Marketing
Our Company always adheres to customer-oriented and constantlyimproves customer satisfaction. We have established the EIP platform(Enterprise Information Platform) in accordance with the nationalstandards GB/T 19038-2009 Guide to Customer Satisfaction Measure-ment Models and Methods, GB/T 19039-2009 General Principles ofCustomer Satisfaction Measurement, and a series of standards such asISO10001/2/3/4, and we continue to improve our internal satisfactionsurvey platform. The survey covers ten aspects, including productquality, product packaging, product cost performance, transportationservice, order delivery and after-sales satisfaction, etc. The EIP platformwill synchronize customer feedback information to the cloud, and theCompany’s system manager can view customer feedback on mobileterminals and respond to customers in a timely manner. The Companystrengthens communication and feedback with customers through theEIP platform and continuously improves the quality of its products andservices.During the reporting period, the Company conducted satisfactionsurveys on nearly 469 customers, of which the percentage of thoseholding satisfactory responses was 87.52%.
Customer Satisfaction Survey
Online Brand PromotionWe have established and operated 3 websites to provide customers with a convenient platform for information acquisition and communi-cation. Through the operation of new media platforms, we have successfully attracted a large amount of attention, with more than150,000 tweets exposed and more than 140,000 short videos played. At the same time, our presence in overseas social media and activeand e?ective operation has enabled us to expand our brand in?uence, with a 166% increase in the number of followers. In addition, wehave developed our own small program to provide customers with a more convenient product browsing and purchasing experience.
O?ine BrandingIn 2023, we actively participated in 27 exhibitions to showcase our products and services and to communicate and interact with customersface-to-face. Meanwhile, we set up 1 corporate showroom to provide customers with opportunities to understand and experience ourproducts on the ground. In addition, we actively participated in industry forums to communicate and cooperate with professionals in theindustry to continuously expand our business and in?uence.
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Megmeet Changsha Global R&D Center - Zero Carbon In Progress!
4.1 Environmental Management
4.2 Responding to Climate Change
4.3 Water Resource Management
4.4 Emissions and Waste Management
Toward Environmental Development,Being Environmental Pioneers
As energy consumption continues to rise, environmental issues are becoming more and more prominent, and all industries are faced withhuge sustainable development challenges. Against this backdrop, Megmeet is well aware of the importance of building energy e?ciencyin promoting green transformation. Therefore, the Company is actively engaged in the exploration and practice of building energye?ciency, and is committed to researching, developing and applying a variety of advanced building energy e?ciency technologies,contributing wisdom and strength to the green development of the industry.
Thematic Case
Megmeet Changsha Global R&D Center- Zero Carbon In Progress!
Megmeet Changsha Global R&D Center has been planned and deployed for construction since 2016, and o?cially started construction in2021. After two years of schematic design and engineering construction, it will ?nally be completed and put into use at the end of 2023.With a total ?oor area of 75,000 square meters, it has the most comprehensive and complete test equipment in the global power electron-ics ?eld and can accommodate more than 2,000 R&D engineers. When fully operational, it will have a total investment of nearly 600 millionRMB. This huge investment scale, as well as its equipped with cutting-edge R&D facilities, indicate that the center will become one of theworld’s leading R&D centers in the industry, leading the industry and demonstrating outstanding strength.Megmeet Changsha Global R&D Center is equipped with the most comprehensive and complete test facilities in the power electronics ?eldin the world, including 8 laboratories in di?erent ?elds such as safety certi?cation, EMC, reliability, failure analysis, etc., as well as 14comprehensive power electronics laboratories, and two 3m wave darkrooms and one 10m wave darkroom. Thanks to the perfect layoutof the laboratories and the advanced con?guration of cutting-edge equipment, the Changsha Global R&D Center of Maimi Electric hassuccessfully ranked among the world’s forefront in the ?eld of software development and testing of power electronic components andsystems, demonstrating its unparalleled leading strength.In addition to excellence in technology development, Megmeet Changsha Global R&D Center attaches great importance to the practice ofsustainable development and environmental protection concepts. We have set up several zero-carbon demonstration sites in-house,equipped with photovoltaic, energy storage, waste degradation and other equipment to achieve e?ective energy utilization and carbonemission reduction. Through these initiatives, the Changsha Global R&D Center actively implements the concept of sustainable develop-ment in practice and helps to promote the realization of the global zero-carbon goal.
Building Energy E?ciency
Air Energy Heat Pump TechnologyBy introducing the air energy heat pump system, Megmeet Changsha Global R&D Center converts the low-level heat energyin the air that cannot be directly utilized into high-level heat energy, realizing the regenerative use of energy and minimizingthe waste of energy.The advantages of air energy heat pump technology include the following features:
The comprehensive energye?ciency of the air energyheat pump reaches 3.5throughout the year, showinggood energy-savingcharacteristics;After actually put intooperation, it is expected tofurther improve the level ofenergy e?ciency and realizehigher energy saving e?ect.
Air energy heat pumptechnology reduces thereliance on traditional coal orgas-?red heating methods,lowering the emission ofcarbon dioxide and otherpollutants.
The hot water supply ofdormitories and canteensadopts air energy heat pumptechnology, which e?ectivelyreduces the energyconsumed by traditional hotwater supply methods;Air energy heat pumps areequipped with electricauxiliary heating, whichprovides additional heatingcapacity in extreme weather,such as cold winter, to ensurethe stability and reliability ofhot water supply.
Comprehensive EnergyE?ciency Improvement
Optimization of HotWater Supply System
Environmental Protectionand Emission Reduction
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In order to provide a better and quieter working environment, the Megmeet Changsha Global R&D Center of has selected the sound insula-tion materials of dense amine resin for the meeting rooms and laboratories in the park, which will have an average noise reduction valueof 6-10R(db), e?ectively shielding the external noise and ensuring the quietness of the indoor environment, thus guaranteeing theworking e?ciency and comfort of the sta?.
Building Noise Reduction
Megmeet Changsha Global R&D Center adopts highly e?cientcomposite microbial degradation technology, combined with gaspuri?cation module, to successfully convert canteen food residuesinto organic materials for fertilizer production, realizing degradationtreatment and waste reuse, and making positive contributions toenvironmental protection and resource recycling.The technology is centered on highly e?cient composite microbialdegradation. Through aerobic fermentation, organic waste isdegraded into powdered organic materials, e?ectively reducing thevolume of waste. In e?ectively reducing the volume of land?ll, itpromotes the reuse of organic waste resources and reduces thedependence on natural resources. At the same time, with the gaspuri?cation module, the whole treatment process realizes zeroemission, no drainage, no exhaust gas, comprehensively protectsthe cleanliness and health of the air, soil and water quality, andsuccessfully achieves the “Three Zeros” standard of zero airpollution, zero soil pollution, and zero water pollution.As a key node in the Company’s global R&D layout, the Changsha Global R&D Center will continue to provide solid support for the Compa-ny’s technological innovation and future development. Meanwhile, as a model of zero-carbon demonstration park, the R&D Center iscommitted to the e?cient use of energy and the reduction of carbon emissions, demonstrating the excellent practice and outstandingachievements of modern enterprises in promoting sustainable development, and setting a benchmark for the green development of theindustry.
Waste Reuse
Aerogel Insulation
Photovoltaic Storage and Charging (“PV + Storage + Charging”) Integration Project
Megmeet’s Changsha Global R&D Center uses aerogel, an energye?cient material. The thermal conductivity of aerogel is extremelylow, which improves the thermal insulation e?ect by 2 to 3 times thantraditional materials, e?ectively reduces the temperature conductionbetween inside and outside of the building, lowers the energyconsumption, and improves energy-saving e?ect. Aerogel hasexcellent ?reproof performance, long service life, not easy to settle ordecompose, and maintains a stable insulation e?ect. At the sametime, it has good hydrophobicity, will not disintegrate and settle due torainwater soaking, and will not cause corrosion of pipelines and otherequipments, which is suitable for coping with Changsha’s climaticconditions to meet the requirements of heat prevention in summer,and take into account the heat preservation in winter as well asappropriately.
Megmeet’s Changsha Global R&D Center has successfully implemented an integrated PV storage and charging project,integrating photovoltaic (PV) power generation, energy storage and charging facilities to provide a sustainable energysolution for the campus. Through a solar cell system, we have realized photovoltaic power generation to supply the parkwith renewable and clean energy. At the same time, the stored electricity ensures that power can still be supplied when thereis insu?cient light. In addition, we utilize clean energy to power chargers and car washes, reducing our reliance on tradition-al fuels and minimizing environmental pollution and greenhouse gas emissions at the source.
Density（kg/m?）200±20
Hydrophobicity
≥ 98%
Fire rating
A级
Compression resilience≥ 90%
Thermal conductivity at 300℃（W/(m·K)）
≤ 0.035
200Hz Noise Test (unit: R(db))Design Values for Noise Reduction E?ect of Soundproo?ng Materials
1000Hz Noise Test (Unit: R(db))3000Hz Noise Test (Unit: R(db))
Acoustic Wool1 Layer
Acoustic Wool1 Layer
Acoustic Wool1 LayerBackgroundBackgroundBackground
91.0862.2486.25
83.6156.3376.56Thermal conductivity at 25℃（W/(mK)）
≤ 0.020
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The Company complies with environmental and occupational health and safety laws and regulations and other requirements related toenterprise production, operation and management activities. The Company raises the awareness of environmental protection and produc-tion safety of all sta? through education and training. At the same time, the Company actively implements green facilities, green energyuse, green operation, and green design, continuously takes various preventive measures, strengthens risk prevention and control,prevents environmental pollution to create a safe, civilized, and harmonious environment conducive to production, daily life, and workenvironment. We have formulated an environmental management manual, and have clari?ed our environmental management policy,target management approach, and energy and resource management approach.
Environmental Management
In order to realize a clean and healthy life for all humanbeings, we have been continuously improving andpreventing pollution, and have been pursuing safeproduction and harmonious development.Environment and Occupational Health and Safety Policy
Energy Management Policy
Green and low carbon, energysaving and e?ciency
The Company has set up an environmental management structure and clari?ed the responsibilities of each level. TheSafety Committee is a safety supervision and management decision-making body under the leadership of the generalmanager, responsible for the overall supervision and management of the safety and environmental protection workof all departments, organizing the implementation of national laws, regulations and policies on safety and environ-mental protection, and researching and deciding on the major issues of the Company’s safety production, environ-mental protection, and occupational health and safety work. The Company has set up an independent secondarydepartment of safety and environmental protection, responsible for the Company’s environmental management, aswell as the organization and implementation of the environmental management system.In order to ensure that when an environmental pollution incident occurs, we can make a prompt and appropriateresponse, take emergency measures to mitigate the impact, and maximize the prevention and reduction of possibleaccompanying harmful environmental impacts, personal injuries and/or health damages, the Company has formulat-ed the Emergency Preparedness and Response Management Measures.We lead the industry in continuous innovation, and consider the requirements of resource and energy conservationand environmental protection in the whole life cycle of our products from the source of design to the details of productuse and end-of-life. We realize green and low-carbon operation through the implementation of clean production. Wecontinuously reduce energy consumption through lean production. Through continuous investment in research anddevelopment, we realize the transformation from function to performance, bring consumers the ultimate experienceand enjoyment of a better life, and make unremitting e?orts to realize high-quality development and clean andhealthy life for all human beings.We focus on resource conservation, advocate the use of clean energy, environmentally friendly materials, theintroduction of environmental attributes of the product from the source, the production process materials transit usingrecyclable multiple use of calcium plastic cartons, laser engraved products using lean shelf transit, greatly reducingthe use of traditional cartons. Warehousing adopts multi-layer three-dimensional shelves, which greatly reduces theuse of land resources. We pursue a green and low-carbon production model and minimize energy consumption in theproduction process. We improve the production process, optimize the energy structure, reduce energy consumption,and enhance energy e?ciency, making the green development concept as a corporate culture, to promote thedevelopment.
Inverter Energy Saving Street Lights: Green Lighting Innovations from Yihe Sanitary WareWith the concept of “Green Life, Wisdom and Aesthetics”, Yihe Sanitary Ware, a wholly-owned subsidiary of Megmeet, iscommitted to technological innovation and green development. In terms of lighting, it pays special attention to energyconsumption and realizes the goals of energy saving, emission reduction and low-carbon environmental protection byinstalling inverter energy-saving street lamps.The lighting and control system of the injection molding workshop of Yihe Sanitary Ware has been professionally designedby a national-level registered lighting designer, and adopts advanced photovoltaic street lamps equipped with timedautomatic dimming function. These measures not only improve the intelligent level of the lighting system, but also e?ective-ly utilize the natural light resources, reduce the dependence on traditional energy sources and energy consumption.
The Company has taken a series of energy-saving measures to reduce energy consumption. Under the premise of ensuringsafety and quality, the Company has carried out a series of energy-saving reforms through the introduction of photovolta-ic, the introduction of inverters into water treatment equipment, and wastewater reuse renovation by means of strengthen-ing management, process improvement, and energy saving of equipment. In addition, the Company has established asystematic energy management approach and supervision mechanism. The Company analyzes the feasibility study to setannual quota targets for each production department, and adopts the assessment mechanism to urge green productionand eliminate the waste of resources. At the same time, the Company upgraded and remodeled some equipments withhigh energy consumption and high waste to realize the development of low-carbon economy. In addition to theenergy-saving transformation of equipment, we also carry out regular training, drills and other ways to improve sta?awareness of energy saving and emission reduction.The Company focuses on the utilization of new and renewable energy sources. The Company has installed distributedphotovoltaic power stations on the roofs of the buildings and inverter energy-saving street lights on the roads in thefactory area.
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Megmeet has already developed appropriate carbon reduction targets and action plans in accordance with domestic and internationalpolicies, regulations and standards, and in conjunction with the actual situation of the Company, actively responding to the requirementsof suppliers. The Company is in the process of formulating scienti?c carbon targets and emission reduction plans in line with those set byour customers, i.e., a 50% reduction in absolute Scope 1, Scope 2, and Scope 3 GHG emissions by 2030, or the formulation of a Scope 3emission reduction intensity target endorsed by SBTi. We will submit to SBTi for target validation, when the science-based carbon targetsand action plans will be in line with the 1.5°C reduction scenario of the Paris Agreement, and actively do our part to achieve the globalcarbon reduction target.
The Company's speci?c addresses include: Zhuzhou Megmeet Electric Co., Ltd. (No. 1728 Taishan Road, Tianyuan District, Zhuzhou City,Hunan Province; Xinma Power Innovation Park, No. 899 Xianyuehuan Road, Majiahe Street, Tianyuan District, Zhuzhou City, HunanProvince), Hunan Blue River Valley Technology Co., Ltd. (No. 1381, Songshan Road Street, Xin Dong Road, Zhuzhou City, Hunan Province,No. 1, No. 2, Plant No. 1, Zhuzhou Base, Megmeet Shenzhen Megmeet Electric Co., Ltd (5A;B;C501-C503;D;E, 5F, Tsinghua Ziguang SciencePark, No. 13 Langshan Road, North District, Hi-Tech Zone, Nanshan District, Shenzhen City, China, 34th Floor, Hi-Tech Zone Joint Headquar-ters Building, No. 63 Xuefu Road, Nanshan District, Shenzhen City, China).
Climate change is one of the greatest challenges facing the world today. Already fully aware of its important responsibility in combatingclimate change, Megmeet has taken action to contribute to the reduction of greenhouse gas emissions and the promotion of sustainabledevelopment in the world.The Company has commissioned an external consultant to carry out a carbon inventory of corporate greenhouse gas emissions inaccordance with the Guidelines for Accounting Methods and Reporting of Greenhouse Gas Emissions by Enterprises of Other Industries inthe Industrial Sector (for Trial Implementation) issued by the National Development and Reform Commission, and the ISO14064-2019standard.An inventory of Scope 1, 2 and 3 GHG emissions has been conducted for Shenzhen Megmeet Electric Co. Ltd, Zhuzhou Megmeet Electric Co.Ltd and sub-sites
in accordance with ISO 14064-2019.
The carbon reduction actions that we have identi?ed and embarked upon so far are as follows:
In October 2022, we started to evaluate theheat recovery of air compressors. 6 aircompressors correspond to 6 hot waterrecovery machines. We start the machine for20 hours a day and can produce 120 tons ofhot water, which can fully meet the hot waterdemand of dormitory lodgers. We can saveabout more than 200,000 RMB on natural gasusage every year, and the equipmentinvestment can pay back in 1.5 years. Westarted to customize the equipment and siteconstruction in December. The project is now inthe process of installing equipment, watertanks and piping, and is expected to becompleted in June 2023 and put into use.
Domestic hotwater used byemployees isheated bynatural gas
100% NaturalGas Heating
Responding to Climate Change
Greenhouse gas emissions (CO2e)202120222023Operational Boundaries
Direct greenhouse gas emissions
(Scope I)
Indirect greenhouse gas emissions
(Scope II)
Value Chain Indirect GHG Emissions
(Scope III)
789.78975.13
About 1,200
11,564.9316,369.03About 21,280
843,972.971,234,884.62About 1,518,900
OperationBoundary
Scope I
For the required Company vehicles, we arepurchasing electric vehicles to reduce ourcarbon emissions.Compa-ny-ownedfuel-e?cientautomobiles
90 % Fuel oilvehicles
The ?rst phase of the solar PV plant ofZhuzhou plant has a total installed capacity of
1.414 MW and was fully connected to the grid
in September 2018 for self-consumption. It willgenerate a total of 5,528,000 kWh of electricityby FY2022Zhuzhou Plant Phase II Solar is in thepreparatory stage. Overall program: theinstalled capacity of the solar power plant is
1.7MW, mainly for self-consumption (which can
be self-consumed) and the surplus power isfed into the grid. The annual power generationis expected to be about 1.5 million kWh.
Increased useof renewableelectricity
Reduced use ofelectricity inoperations
Annual solarphotovoltaicpowergeneration 5.5million kWh peryear
The aging part of the Company’s productionprocess adopts the feed-back aging systeminstead of the traditional pure resistance agingsystem.
60% ofapplication 1.9million kWhannual savings
The workshop exhaust fan is equipped with afrequency conversion adjustment device totest the pressure inside the duct and automati-cally adjust the speed of the extractor fan toreduce the non-essential exhaust air, reducepower consumption by 30%, and save morethan 120,000 kWh of power consumption peryear.
Electricitysavings 120,000kWh per year
Energy-saving lighting systems areimplemented in all facilities to reduce energyconsumption.The street lights in the park should be installedwith Beidou latitude and longitude controllers,which automatically calibrate the time andlocate the sunrise and sunset of the location,reduce the energy, and control the brightnessof a single light by time. The energy saving is20% compared with ordinary street lights, andthe annual electricity saving is 15,000 kWh. Thesecond phase of the park has also begun touse the same lighting system.
Electricitysavings 15,000kWh
Scope I I
Replace 80 % offossil fuelvehicles by2025
In 2023, Q3100%conversion toair energywater heaters
Annual solarphotovoltaicpowergeneration 7million kWhper year by2025
80 % applica-tion coverageby 2025 2.3million kWhannual savingsContinuoususe
Electricitysavings of30,000 kWhby 2025
EmissionSources
CurrentStatus
Emission Reduction ActionsEmissionReduction Targets
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De?ne the relevant risk types and develop a Risk and Opportunity Assessment Form;De?ne and assess risk scenarios. For each risk type, develop two or more scenarios covering the low to high impact range of the eventand then analyze the probability of occurrence of each scenario on an annual basis;
The process of climate-related risk analysis is described below:
Identify a?ected assets. For each risk scenario, identify the physical, economic, and social assets a?ected;Assess losses for each asset. For each asset, estimate losses for all types of hazards under all scenarios for all event types;Develop and implement responses to risks and opportunities;Develop risk management plans and monitor and evaluate the e?ectiveness of the implementation of risk responses.
The Company continues to monitor changes in customer demand and market requirements for sustainable solutions and assesses the?nancial impact associated with these trends. For example, in order to minimize the ?nancial losses and potential reputational risks thatcould result from reduced demand for our products due to the climate change, we have embarked on e?orts to improve our qualitymanagement system and EHS management system, monitoring product coverage to 100%. In addition, we are leveraging collaboration,and planning and technological innovation to reduce packaging use and increase packaging reuse and recycling rates.The Company has established a Carbon Reduction Committee in 2022, and has incorporated climate-related risk analysis into itsenterprise risk management process, assessing climate-related risks from multiple perspectives, including sources, types, and likelihood.We plan to conduct climate-related scenario analyses within two years, and will enhance the disclosure of climate-related ?nancialinformation in accordance with the ISSB as soon as possible and adjust our operational strategies.
Megmeet is ?rmly committed to the concept of water resource management, which is to realize a clean and healthy life for all mankind, tocontinuously improve the environment and prevent pollution, to pursue safe production and harmonious development, and to activelytake measures to reduce the use and waste of water resources, to increase the e?ciency of water resource utilization, and to contribute tothe protection of the earth’s blue source of life.
The Company’s water resource managementobjective is to embrace green and low-carbon, builda clean home, enterprise and green cohesion,development and ecological coexistence, cleanproduction, green welcome development.
The Company implements the strictest waterresource management system, strictly controls waterpollution, adheres to the comprehensive waterconservation policy, and prioritizes the protection ofthe ecological environment.
The targets set by the Company for reducing wateruse are to conserve water, use water e?ciently,protect water resources, realize sustainable develop-ment, promote ecological balance and improve theutilization rate of water resources.
Based on the water conservation target, the Compa-ny implemented a series of water conservationmeasures and achieved signi?cant results. The totalannual water consumption was 22,883 tons.
The use of eco-friendly brands in the o?ce ispromoted to minimize waste.
Carbonreductionactivities inother areas
Underimplementation
Scope III
Water Resource Management
Ongoingimplementation
1. Purchase
branded inverterair conditioners
2. Purchase
paper andprintingmaterials fromISO14001 andEMAS certi?edcompanies.
the head of each department shouldstrengthen the education of the sta? to savepaper, control the number of o?ce paper,non-important documents as far as possibleto use the Company’s IT system, andsecond-hand paper.
2. Use ID card printing privileges and manage
the times of each ID prints and the amount ofpaper.
Papermanagement
ProcessITization rate 80PrinterID-ization rate
ProcessITization Rate90%Printers ID’d90% of thetime
Promote travel on high speed trains that useelectricity for business trips and reduce travelon airplanes that use fuel.
Traveltransportation
No restrictionsEncourageemployees tochoose to travelby high-speedrail for journeysof up to 800kilometers,provided theyhave enoughtime to do so
During o?ce and factory renovations, metaland glass frame parts are reused to achieve a100% recycling rate.
Wasteutilization
Purchase of
newRecycling
A cash reimbursement of RMB 30,000 isavailable for each personal electric vehiclepurchased in mainland China.Employ-ee-Owned FuelVehicle Vehicles
Under
implementationOngoingimplementa-tion
Locate our R&D sites close to high speed raillocations and encourage employees to usepublic transportation.
Traveltransportation
Under
implementationOngoingimplementa-tion
Water Resource Management ObjectivesWater Resource Management Policy
Targets for Reducing Water UseE?ectiveness of Water Conservation in 2023
OperationBoundary
EmissionSources
CurrentStatus
Emission Reduction ActionsEmissionReduction Targets
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Megmeet adopts advanced treatment technology to reduce the emission of pollutants generated in the production process. For pollutantssuch as wastewater, waste gas, waste residue, etc., strict emission standards are implemented to ensure that they are discharged incompliance with the standards. At the same time, production equipment is regularly maintained and updated to reduce the generation ofpollutants in the production process.The Company has formulated management methods for identi?cation and evaluation of environmental factors and waste managementmethods, and regularly organizes environmental protection knowledge training and publicity activities every year to raise employees’awareness of environmental protection, so that they fully understand the importance of reducing waste, pollutants and toxic gases. TheCompany regularly carries out environmental protection inspections and organizes “three wastes” testing of wastewater, exhaust gasand noise on a regular basis every year. The Company encourages employees to put forward environmental protection suggestions andactively participate in the Company’s environmental protection work.
Megmeet’s water conservation initiatives include：
Emissions and Waste Management
The Company put forward the Green Action for Water Conservation, labeled with the Water Conservation Logoand replaced with energy-saving faucets, with a single water-saving capacity of about 30%;The Company put into use 4 sets of water treatment systems, with an annual water-saving capacity of 69,500tons;The Company’s wastewater treatment reuse rate reaches 100%, ceramic cleaning wastewater and ultrasoniccleaning wastewater is recycled after treatment.
Exhaust Gas EmissionThe waste gas generated by the Company is mainly divided into injection waste gas and crushing dust. In order to strengthenthe environmental management and improve the working environment of the workshop, we collect and treat the waste gasand then discharge it uniformly. The organic waste gas of the injection workshop is collected through the overall aircollection system, and the centrally collected waste gas is treated by “UV photocatalytic + activated carbon adsorption”,and then discharged through the exhaust pipe on the roof of the plant (15m). The trimmings and defective products generat-ed in the process of injection molding are crushed and reused for production. The Company has a special closed crushingworkshop in the plant, using environmentally friendly crushing equipment for collection and reuse in production, resultingin less dust, and discharged in the form of disorganized.
Wastewater DischargeThe discharged wastewater is mainly domestic sewage, which will be discharged into the municipal sewage network afterbeing pre-treated in the septic tank in the plant to reach the Pollutant Emission Standards for Urban Sewage TreatmentPlants (GB18918-2002) Level A standard.
Solid WasteSolid wastes in the plant are categorized into general solid wastes and hazardous solid wastes. The Company has formulat-ed Waste Management Measures, Dangerous Goods Management Measures and other institutional documents. Generalsolid waste includes plastics, packaging cartons and domestic garbage. Hazardous solid waste is mainly paint residue,waste rags and gloves, waste packaging drums and so on. All of the above solid wastes are entrusted to the correspondingenterprises with the ability and quali?cation to carry out regular removal and disposal arrangements.The Company has a separate room for storing hazardous waste and must carry out treatment and disposal in a speci?c area.
NoiseWhen selecting and purchasing equipment, the Company adopts advanced and low-noise production equipment to reducenoise generation from the source. For noisy equipments, we set up soundproof rooms and control the density of equipmentarrangement in the workshop within a suitable range to reduce the impact of noise on the working environment. Forhigh-noise vibration equipment, we have taken measures to set up vibration-proof foundation or vibration-damping padsto reduce the impact of vibration on equipment and sta?. At the same time, we strengthen the maintenance and repair ofthe production equipment to ensure that the equipment runs well and reduce the noise and vibration.
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Reliable and StableCooperation
5.1 Supplier Quality Management
5.2 Building a Stable Supply Chain
5.3 Empowering Supply Chain Partners
5.4 Supply Chain Sustainability Management
Megmeet is committed to building and maintaining a supply chain system that is aligned with the values of high quality, sustainability, andsocial responsibility to ensure the quality and reliability of products and services while driving the entire supply chain to a higher level.
In addition to performance evaluations and annual audits, the Company also conducts quality assessments, environmental assessmentsand social responsibility assessments of its suppliers to ensure that they meet the requirements and expectations of Megmeet in terms ofproduct quality, environmental standards and social responsibility.
Megmeet is committed to building a stable and reliable supply chain, and to this end has taken a number of measures to support theCompany’s sustainable development. The Company imports hazardous substance management and corporate social responsibility (CSR)audits for all new suppliers, covering labor, occupational health and safety, environmental protection, business ethics and managementsystems. For suppliers we have already cooperated with, based on business cooperation and purchasing volume, we screen out major orkey suppliers for annual hazardous substance and CSR audits to ensure that their business activities meet the Company’s requirements.
At the same time, the Company has set up a Disciplinary Committee, a complaint hotline, a suggestion box and an e-mail address toreceive complaints from employees about business ethics, environmental protection and social responsibility, in order to maintain thenormal operation. The Company has also established ten red lines on child labor, illegal labor, major health and safety accidents, environ-mental emission violations and business ethics violations to clearly de?ne the bottom line that suppliers are not allowed to touch. Duringthe reporting period, the Company did not ?nd any incidents of violating the red line regulations.
The Company has also adopted responsible purchasing measures to investigate the sources of con?ict minerals such as 3TG to ensure thatall materials are legally compliant. At the same time, we have established a process document for handling hazardous material exceedingthe standard, so that we can deal with environmental protection abnormalities of suppliers’ materials in a timely and e?ective manner, inorder to ensure that the dual goals of product quality and environmental protection are realized.In 2023, the Company evaluated a total of 116 suppliers in accordance with the requirements of the Code of Conduct for SustainableDevelopment, and no suppliers were found to be in serious violation of environmental or social governance, of which one supplier failedin the annual comprehensive CSR score. A total of 95 suppliers were audited for hazardous substances, of which 35 were new suppliers,60 were audited annually, and 24 were high-risk suppliers. The Company carries out con?ict minerals management for 342 suppliers andinvestigates 3TG sources. Incoming hazardous substance testing of supplier product parts or raw materials was conducted 95,000 times.
Supplier Quality Management
Building a Stable Supply Chain
In accordance with the SupplierCerti?cation Code of Practice, suppliersare required to sign documents such asthe Megmeet Sustainability Code ofConduct, Letter of Commitment onIntegrity and Honesty, SupplierCon?dentiality Agreement, SupplyAgreement, Quality Agreement,Agreement on Proof of Non-Use ofHazardous Substances, and Agreementon Claims for Supplier’s Quality,Environmental Protection and SocialResponsibility.
The Supply Chain Management Centerconducts monthly performanceassessment of suppliers and takesappropriate incentive or penaltymeasures based on the assessmentresults to ensure that the suppliers’service quality and performance meetthe requirements.
Each year, the Company selects keysuppliers from the Accredited VendorList (AVL) and conducts annualsurveillance audits on them to ensuretheir continued compliance withquality management requirements.
Supplier Certi?cation
Monthly Supplier Performance
Assessment
Annual Supplier Surveillance
Audit
The Company’s purchasing and related departments evaluate suppliers around quality,delivery, cost, and service, and rate them at four levels, ABCD, in conjunction with the resultsof hazardous materials and CSR audits. Suppliers are rated on their performance once amonth and key suppliers are screened for annual audits to ensure they are performing asexpected. In order to cope with possible negative impacts, the Company has also formulateda CSR Red Line Crisis Emergency Plan to ensure that when faced with a crisis, we can respondquickly to minimize losses and protect the Company’s reputation.
a DisciplinaryCommittee
a complainthotline
a suggestion boxan e-mail
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Megmeet believes that supply chain sustainability is one of the keys to achieving long-term business success. Therefore, we are commit-ted to working with our partners to establish and maintain a sustainable business system that meets high standards.The Company has included the assessment of carbon emissions in the CSR audits of suppliers to promote the implementation of carbonemission management by suppliers. Meanwhile, the Company has also included the assessment of integrity and honesty management inthe CSR audits of suppliers to promote the establishment of integrity and honesty systems and management processes by suppliers. Inaddition, both our Shenzhen head o?ce and Zhuzhou subsidiary have passed the QC080000 Hazardous Substance Management SystemCerti?cation and established the GPCM environmental protection system to ensure that our products do not contain any hazardoussubstances during the production process and meet the environmental protection requirements. Through systematic management andsupervision, we are able to prevent and control environmental risks more e?ectively and provide our customers with more reliable andenvironmentally friendly products.In the future, the Company will continue to strictly follow the guidelines of sustainable management, and will continue to ask its suppliersto ful?ll this mission and work together to build a greener and more sustainable supply chain.
Empowering Supply Chain Partners
Supply Chain SustainabilityManagement
The Company is committed to raising the level of social responsibility and environmental compliance among our supply chain partners.To this end, we have implemented a series of targeted initiatives to empower our supply chain partners so that they can better adapt tochanging industry standards and societal expectations.In 2023, the Company conducted a centralized CSR training for its procurement sta? with the aim of strengthening their awareness ofsocial responsibility. Through this training, we hope to raise the awareness of our procurement sta? on social responsibility issues andmotivate them to pay more attention to the social responsibility performance of suppliers in the procurement process.Second, the Company followed up on suppliers’ social responsibility improvement results and conducted one-on-one improvementprogram presentations more than 30 times. Through in-depth communication and guidance with our suppliers, we have helped themdevelop targeted improvement programs to enhance their social responsibility performance and compliance, helping our suppliersachieve better improvement results and building a more responsible supply chain system together.In addition, we have conducted 18 one-on-one training sessions on hazardous substances for suppliers. Through these trainings, weintroduced the importance of hazardous substance management to our suppliers and provided speci?c guidance and advice to help thembetter manage and control the use of hazardous substances. Such training activities not only help raise suppliers’ awareness of environ-mental protection, but also help reduce potential environmental risks and legal liabilities.
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Cohesion and Cooperation
6.1 Optimizing Talent Management
6.2 Emphasis on Talent Training
6.3 Implementing Employee Care
6.4 Guarding Health and Safety
Megmeet has formulated its employee management system in strict accordance with the Labor Law of the People’s Republic of China, theLabor Contract Law of the People’s Republic of China and other relevant laws and regulations to ensure compliance and fairness in themanagement of recruitment, termination of employment, salary, promotion, working hours, holidays and other aspects. The Companycarries out recruitment and termination of employment on the principles of openness, fairness and impartiality, and selects employeeswith professional qualities and good working attitudes through well-established processes and procedures. The Company conductsemployee interviews for departing employees to understand the reasons for departure, to assist in improving employee performance andemployee incentive policies, and to safeguard the legality and fairness of termination decisions and protect employee rights and interests.At the same time, the Company has produced a culture manual that emphasizes “rejecting negative energy in the workplace” to createa positive and healthy working atmosphere.The Company has established a perfect employee performance management process, which is regularly evaluated and adjusted accord-ing to the employee’s job responsibilities, performance and market level. At the same time, the Company has set up clear promotionchannels and evaluation standards to encourage employees to realize career development through continuous learning and self-im-provement. The Company strictly enforces the working hour’s system stipulated by the state, focuses on work-life balance of employees,and provides employees with bene?ts such as paid annual leave and holiday vacations in order to improve work e?ciency and quality oflife.
Optimizing Talent Management
Megmeet always adheres to the core concept of equal and compliant employment and is committed to creating a fair, safe and healthyworking environment for its employees. The Company complies with the Labor Law, Labor Contract Law, Law on the Protection of Minors,Law on the Protection of Women’s Rights and Interests, Provisions on the Prohibition of Child Labor and other relevant laws and regula-tions, and also establishes systems such as Provisions on the Prohibition of the Use of Compulsory Labor, Procedures for the Relief of ChildLabor and the Protection of Minor Workers, Procedures for the Rescue of Child Labor, and the Prohibition of Child Labor and the Rescue ofChild Labor. We resolutely prohibit any form of forced labor, prohibit the employment of child labor, respect the will of employees, andensure that employees enjoy legitimate labor rights and interests. In addition, the Company has formulated the Code for the Protection ofEmployees from Discrimination and Harassment, which clearly stipulates anti-discrimination, anti-harassment and anti-abuse provisions,and establishes a mechanism for reporting and protection of employees against discrimination, harassment and abuse, so as to e?ective-ly safeguard the legitimate rights and interests of all employees.The Company has established a perfect employee management system, signed the Labor Contract and internally established the Recruit-ment and Onboarding Code of Practice, the Labor Contract Management Code of Practice, the Social Recruitment Management Code andother systems, whose contents include recruitment and hiring following the principle of equality and inclusion. The Company adopts amulti-channel approach to ensure that every employee and applicant, regardless of race, religion, age, gender, etc., receives equaltreatment and opportunity. The Company insists on safeguarding the legitimate rights and interests of all employees, including laborcontract workers, dispatched workers, retired workers, outsourced workers and interns. The Company openly recruits according to thenumber through comprehensive and scienti?c evaluation, and strictly selects the best candidates after comprehensive evaluation of therecruits. At the same time, the Company has formulated the Bole Award Management System to improve the e?ciency of the Company’stalent recruitment.As of the end of the reporting period, the total number of employees employed by Megmeet was 6,543 (including labor dispatch). The ratioof male to female employees is 6:4, with more men in the R&D department.
Compliant Employment
Megmeet strictly abides by national and local labor laws and regulations to protect the rights and interests of employees such as wages,working hours, rest and vacation, etc. The Company has established the Free Choice of Occupation Management Procedures and set upinternal employee feedback channels to ensure that the legitimate rights and interests of the employees are maintained in a timelymanner. In addition, the Company attaches importance to the career development and growth of employees, provides diversi?ed trainingand development opportunities, and advocates the employment mechanism of fair competition. Megmeet actively ful?lls its corporatesocial responsibility by participating in social welfare activities, supporting charitable causes and contributing to the construction of aharmonious society. Megmeet’s concept of employee rights and interests not only re?ects the Company’s respect and care for employees,but also the positive commitment to social responsibility. The Company will continue to work hard to realize the common development ofenterprises and employees.
Employee Rights and Interests
the total number of employeesemployed by Megmeet was
6,543 people
The ratio of male to femaleemployees is6:4
Megmeet has formulated the Employee Remuneration Management Measures, aiming to establish a fair, competitive, incentive, economicand legal remuneration system. The Measures are applicable to all regular employees, including retired rehired, seconded, outsourcedand internship sta?. The remuneration system is closely related to the quali?cation grades of employees and is divided into ?ve major jobfamilies, with speci?c pay grades approved by the Human Resources Committee. The remuneration structure consists of four parts: salary,bonus, bene?ts and equity. Salary is calculated on the basis of basic salary, postal salary and ?xed meal allowance. Bonuses are catego-rized into performance bonuses, annual bonuses and project incentive bonuses. In addition, the scope of bene?ts includes statutorybene?ts and Company bene?ts, such as social security provident fund, employee holidays, welfare meal subsidies, and commercialinsurance. Salary payments are made on a monthly basis, with the probationary period salary determined on a negotiated basis, andsalary adjustments are categorized into regular and special adjustments. Employees’ salary information must be kept con?dential and isveri?ed and managed by the Human Resources Department.
Emphasis on Talent Training
Megmeet has established a multi-level employee training system, which is committed to comprehensively improving the professionalismand comprehensive ability of employees. This systematic training program is designed to help employees continuously expand theirknowledge and improve their skills, and through an all-around learning experience, make them more con?dent and e?cient in dealingwith various challenges at work. Through group-level training courses, department-level professional guidance and the implementationof the personal mentor system, the Company is committed to providing employees with an all-round, continuous learning platform,helping employees achieve their personal career goals while promoting the long-term development. 2023 training plan completedcourses (including new) totaled 1,689, the actual achievement of 1,470, delayed/canceled 219, the training plan achievement rate of 87%.The achievement rate of the training plan is 87%.
Remuneration Management
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There are three levels of training within the Company, including:
The “Management Cadre Training” is a series of training courses designed for management cadres, aiming to improve their role aware-ness, operational capabilities and leadership in?uence, so as to better cope with the challenges of daily management.
Middle and Lower Level Management Training
First, the Company conducted an iteration of internally developed courses to design cognitive courses for di?erent roles, such as non-hu-man, non-?nancial, and management cadres. These courses emphasized the characteristics and responsibilities of di?erent positions tohelp management cadres better understand their role positioning and responsibilities, and to enhance management e?ectiveness. Inaddition, the Company also focuses on high-quality, low-cost and fast-delivery operation training to enhance the e?ciency and teamexecution of management cadres.Secondly, the Company has introduced external courses for internalization, especially courses on high emotional intelligence communica-tion. By introducing external professional courses and internalizing them into the training system, the Company helps managementcadres to improve their communication skills and emotional intelligence, so as to better handle interpersonal relationships and promoteteam cooperation. In addition, in terms of the use of online management courses, the Company provides a variety of courses including theFive Types of In?uence Cultivation Laws for Leaders and the Four Basic Competencies for Coaches. These courses cover leadershipdevelopment, team management, decision-making and execution, helping management cadres to continuously improve their manage-ment skills and leadership level.Through these targeted management cadre trainings, the Company is committed to cultivating management talents with strategic vision,excellent execution and outstanding leadership to provide strong support and guarantee for the long-term development.Group-level training programscover a wide range of areas,including new employeeorientation, project manage-ment, safety awareness trainingand professionalism enhance-ment. The aim is to ensure thatemployees are able to quicklyadapt to the work environmentand are equipped with thenecessary professionalknowledge and skills when theyjoin the Company.
The Company has formulated cleartraining objectives and directions,and provides targeted job training.During the probationary period,job suitability assessment isconducted, and job adjustmentsare made based on the assess-ment results to ensure thatemployees are able to give fullplay to their strengths in their mostskillful ?elds. At the same time, theCompany provides employees withmulti-geographical workplaceoptions and opportunities fortransfer and adjustment, and iscommitted to creating anall-round talent training system topromote the personal growth ofemployees and a virtuous cycle ofcorporate development.
The Company continuouslycarries out departmental-leveltraining, carefully designs andarranges relevant coursesaccording to employees’personal development plans andbusiness needs, and follows upthe training process to ensurethat the training e?ect ismaximized.
Group-Level TrainingDepartmental-Level Training External Training
Pre-training Orientation
Management Role
Awareness
Implementation process of control + team integrationContinuous re?nement: online course learning + management book sharing + action learning theme seminar review
E?cientCommunication
Professional BusinessManagementExecutive Talk about Values,Expectations of Manage-ment Sta?
Managerial Role
AwarenessGuidance onIntegrating the Roles
of Management
Cadres
High Emotional
Intelligence
High-Quality, Low-Cost and
Fast Delivery OperationNon-Financial Management
of Financial ManagementNon-HR Human Resource
Management
Lean ProductionManagementExperience/Case
Sharing
Values BenchmarkingParticipant Survey, CourseIteration
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In order to ensure that new employees of Zhuzhou Manufacturing Base can adapt to the job requirements more quickly, Zhuzhou arrangesemployee induction training from Monday to Thursday according to the number of new employees on the same day, which includes: ?llingin the information of the induction data and handling the relevant procedures for induction, training on the production of the rules andregulations, safety training, quality training, induction training for Class B positions, and induction examination and assessment. Speci?carrangements for o?ine induction training are as follows:
Special Training Camp for New Employees
“The training course” is a training program specially designed by Megmeet for the graduates of manufacturing school recruitment. Thetraining aims to explore and cultivate reserve talents through the simultaneous cultivation of comprehensive ability and professional skills,combined with the rotation plan, in order to meet the needs of the organization’s strategic landing and talent reserve.The target participants of the training are the 2023 Eagle College Students of the Manufacturing Sector, who will undergo a “3+6+12”training program for a period of time. The training course will focus on cultivating students’ comprehensive ability and professional skills,and through all-round training, they will be equipped with solid professional skills and rich comprehensive ability, laying a solid founda-tion for their future career development. The training course adopts a rotational program, i.e., students will rotate in di?erent departmentsand positions, so as to help them have a comprehensive understanding of the operation and the responsibilities of each department, andto develop their adaptability and sense of teamwork.The goal of the training program is to cultivate outstanding talents with comprehensive abilities to provide strong support for the Compa-ny’s future development. Through systematic training and job rotation, they will become valuable assets and contribute to the realizationof the Company’s strategic objectives and sustainable development.
Production Cadre Training Program
If there is asta? inductiontraining forZhuzhou baseon theinduction date,they will attendthe samebatch.If there is nosta? inductiontrainingscheduled onthat day, theywill report tothe departmentand study theinductioncourse on theE-learningplatform beforeattending theo?ineinductiontraining of theadjacent batch,subject to thetrainingnoti?cation.
8:30-9:50
The ?rst day ofemployment
The second dayof employment
Employees & Sta?
Employees & Sta?
Employees & Sta?Employees & Sta?Employees & Sta?Employees & Sta?Employees & Sta?Employees & Sta?Employees & Sta?
Fill in the entry data, work license and otherformalitiesS/NDateTimeArrangementsParticipantsRemarks
9:50-11:00
Training and examination of Company rulesand regulations
11:00-12:00Company safety training
12:00-13:30
Preparation for lunch break or joining thecompany (charging meal card, checking infor accommodation, etc.)
13:30-14:00Fingerprinting for attendance
14:00-15:00
Quality training
15:00-17:30
Induction training for Class B positions
Report to department
8:30-12:00
Induction test, pass the test, report to thedepartment
ProfessionalsPhase I: Compactingthe Foundation
Stage 2: Lead TrainingPhase III: Orientation
June, 2023-August, 2023 (3 months)
September, 2023-February, 2024 (6 months)
March, 2024-March, 2025 (12 months)General Studies& Specialization
Post professional skillsJob Professional Skills
Cultural Identity,Role Transformation
Business Learning,Competency Enhancement
Performance growth,
value realization
Acceptance ofintensive training
Mentor evaluation
Case sharingTransfer defenseIdenti?cation and selection
Mentor evaluation,subject practice (QCC project),
performance follow-up
Process introduction
ProfessionalismFoundation strengthening
Role change
Cognizant positionCognizant processOn-the-job practice
Skill training
Cognitive SectorProfessional SkillsProfessional ContributionCreative Thinking
Training StagesTrainingObjectivesCultivation TimeCultivationContentEvaluationMethodAchievement
Enterprise peopleMaimi Sta?
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The “special training camp” is a well-designed training program for team leaders, aiming at clarifying the role positioning and cognitionof the basic management personnel, improving the on-site management level of the team leaders, understanding and mastering theon-site management skills, and better serving the production. The training program is a semi-annual program, which invokes the mentor“passing on” mechanism, aiming to comprehensively improve the management ability and job performance ability of the team leader.The training system includes four categories of courses, which builds a complete training series. These four categories are professional,management, general knowledge and cornerstone, covering the professional knowledge, management skills, basic literacy and generalskills required by employees to help new employees comprehensively improve their own abilities and qualities.
At the end of the training cycle, the Company summarizes and evaluates the growth and development of the team leaders and providesguidance and support for their further career development.
“Special Training Camp” for New Team Leaders
The “Eagle Training Camp” is a training program designed speci?cally for campus-recruited graduates, with the aim of enhancing theiraction transformation e?ects and focusing on the cyclical growth and role transformation of graduates. In 2023, a total of 361 campus-re-cruited college students participated in the training program, which took place in Shenzhen, Changsha and Zhuzhou at the same time.The course content of this training program combines the training objectives formulated by the business department, and adopts themode of combining theory and practice to optimize the intensive training course system. Theoretical learning adopts a combination ofo?ine theoretical intensive training and online learning maps to enable trainees to systematically master relevant knowledge and skills.In addition, in order to enhance the corporate culture recognition and integration, the training also includes activities such as qualitydevelopment, executive meeting, personal growth storytelling, and sharing of workplace tips.At the completion stage of the Eagle Training Camp, trainees are required to participate in the Eagle Summarization Activity, summarizeand re?ect on the training process, and complete the transfer defense report. Through the Eagle Training Camp, campus graduates areable to comprehensively improve their personal capabilities, accelerate their role transformation and growth, and at the same time,enhance their recognition and integration of the corporate culture, which will energize the Company’s future development.
The “Eagle Training Camp” for New School Recruits.
The “Eagle Training Camp” is a training program for new employees recruited by Megmeet,focusing on team integration, aiming to help employees quickly integrate into the work environ-ment through a centralized training mode, and standardizing the management of new employees’entry and probationary period. 296 people participated in the training program in Shenzhen in2023, and the coverage rate of o?ine training was as high as 92%.The “Eagle Training Camp” adopts a mixed mode of online and o?ine training. Online trainingis carried out through the E-learning learning platform, and trainees need to complete thelearning map and pass the online assessment to complete the online training. The learning maphas 8 levels and 10 courses, covering the contents of Entering Maimi Electric, Interpretation ofValues, Safety Training, Information System and Safety, Financial Expense Reimbursement, and soon. The o?ine training is integrated with the introduction of corporate culture, including Companyand Product Introduction, A Little Bit of Knowledge, the Company Route Visit and team challengeprojects.Through the “Eagle Training Camp”, new employees are able to systematically understand theCompany’s business and core values, and familiarize themselves with the working environmentand team members, so that they can adapt to their workplaces and integrate into the team morequickly. The design of this training program re?ects the Company’s concern and support for newemployees, providing them with a comprehensive and e?ective learning platform, whichpromotes employees’ personal growth and corporate development.
School Recruitment Newcomers of “Eagle Training Camp”
Professional UpgradingProfessional
Management
GeneraKnowledge
Cornerstone
Job Training
Four categories11 Series
Production ManagementTeam ManagementSelf-management
IE Knowledge
Corporate Culture and ValuesQuality Development
Quality AwarenessGeneral Knowledge
Safety Management
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During the reporting period, the Company invested up to RMB500, 000 in sta? training expenses, aiming to meet the training needs ofdi?erent positions at di?erent levels, actively cultivate a team of internal instructors and enhance the Company’s capability in sta?training. The purpose of this initiative is to provide employees with systematic and personalized training solutions to meet the Company’sevolving business needs and employees’ career development needs. By cultivating a team of in-house instructors, the Company canbetter utilize its internal resources to impart the core values and professional knowledge to its employees, and to enhance their profes-sionalism and overall competence. This not only helps employees to better adapt to their workplaces, but also enhances the competitive-ness of their career development and improves the quality and e?ciency of their work. At the same time, the establishment of the employ-ee training system re?ects the Company’s concern and support for its employees, providing them with a good learning and growthenvironment, thus laying a solid talent foundation for the long-term development.
In December 2023, the labor union of Megmeet Zhuzhou base and the General Union of Tianyuan District carried out the Spring FestivalWarmth Delivery Activity, distributing condolence materials to 26 employees in di?culty, and applying for a cash subsidy of 2,000 RMB for3 employees with special di?culties.
Warmth Delivery for Employees in Di?culties
Implementing Employee Care
Taking employee care as an important mission, Megmeet demonstrates its care and support for employees through a series of concreteinitiatives, which in turn enhances employees’ happiness and work motivation. Firstly, the Company regularly organizes a number ofinternal employee care activities and trade union activities, including seminars for new employees and graduates, etc., aiming to promoteexchanges and communication among employees and enhance team cohesion. Secondly, for employees in di?culty, the Company’s laborunion has set up a management system to help employees in di?culty, providing ?nancial assistance and care services, re?ecting theCompany’s warm care for employees. In addition, the Company pays attention to the health of employees, organizes free physicalexamination for employees every year, and additionally increases liability insurance and overseas safety and security insurance. The unionorganizes from time to time mental health lectures, health physiotherapy and other welfare and condolence activities, pays attention tothe physical and mental health of the employees, maintains physical and mental safety of the employees, and provides all-round protec-tion and care for the employees.For female employees, the Company has a special care system, including policies on statutory maternity leave, marriage and parentalcare, and statutory female holidays, to provide them with a better work-life balance.
3,059Male Employees
Classi?cation typeStatus of traineesNumber of trainees by gender(persons)Number of hours of training by gender(hours)
Number of Trainees by Employee Type (Persons)
Number of hours of training by employee type(hours)
1,023
Female Employees
110,124
Male Employees
36,828
Female Employees
Senior Management
Middle Management
3,653
Grassroots Employees
3,240
Senior Management
12,204
Middle Management
131,508
Grassroots Employees
On May 12, 2023, the Company invited Zhuzhou Red Cross to conduct ?rst aid training for employees.
First Aid Training
On September 9, 2023, Zhuzhou Megmeet invited the director of an external health examination center to conduct a health seminar foremployees.
Health Examination
Keeping the Heart and Soul of the BusinessShowing Ingenuity and Innovative Development
Toward Environmental Development,Being Environmental Pioneers
Reliable and Stable CooperationCohesion and CooperationWith Sincerity, Walking TogetherSustainable Development Management
These employee care activities not only enhance the happiness of employees, but also strengthen the cohesion of the Company. Megmeetis committed to building a caring, harmonious and win-win corporate culture, providing employees with a good working environment anda platform for growth, and jointly realizing the goal of common development between employees and the Company.
Megmeet Changsha Global R&D Center - Employee Psychological Counseling Room is committed to providing all-round mental healthsupport and a safe, private space for employees to address psychological distress at work and in life. We have set up a dedicated team ofexternal psychological counseling advisors who have extensive experience and professional knowledge to provide personalized psycho-logical guidance and counseling services to our employees.Employees can schedule an interview with a counselor by making an appointment in advance, which is designed to give employees morethoughtful care and support. We value the mental health of our employees and believe that in an understanding and supportive environ-ment, and employees are better able to cope with challenges, self-improvement and work-life balance.At Megmeet Changsha Global R&D Center - Employee Psychological Counseling Room, we are committed to creating an inclusive andsupportive culture where employees can freely express their inner feelings and confusion, as well as receive professional help andguidance. We believe that focusing on the mental health of our employees not only enhances work e?ciency and team cohesion, but alsopromotes their personal growth and development.
Megmeet Changsha Global R&D Center -Employee Psychological Counseling Room
Guarding Health and Safety
Megmeet cares about employees’ health and is committed to safeguarding their safety, and has adopted a series of e?ective manage-ment initiatives. Firstly, in terms of occupational health and safety, the Company adopts the LEZ risk evaluation method for risk assess-ment, which evaluates the risk exposure time, the severity of the risk and the number of people directly facing the risk through quantitativevalues. Secondly, the Company has established a complete problem handling process, in which the department head will conduct riskassessment of the exposed problems, classify the risk level of the problems, and formulate corresponding countermeasures to continu-ously improve the problem improvement process. For the management of occupational diseases, the Company has adopted a strictresponse mechanism, including strict control of employee health at the initial stage of job recruitment, increasing the number of medicalcheckups for occupational diseases, and an annual review of occupational diseases in each position by the Safety Committee, whichintervenes to deal with high-risk issues at the ?rst time.In terms of production safety and occupational health management, the Company always implements strict assessment of work perfor-mance. The Company invests su?ciently in safety production, conducts frequent safety inspections, and from time to time organizestraining for employees in safety, occupational skills and management skills of management cadres, covering ?re emergency drills, ?rst aidtraining, etc., to unify management thinking and promote the e?ectiveness of communication. We utilize nail groups and emails topromote timely communication and feedback of information, and the number of hours of safety training continues to increase.Megmeet and its subsidiaries conducted regular testing of occupational health-related hazards in March 2023 (test report No. BTC(ZJ)230201), which meets the requirements of the relevant standards, with no major safety production accidents, occupational diseases andworkplace accidents, a 100% pass rate for the supervisory sampling and inspection of special equipments, and a 100% licensing rate forspecial operators. These ?gures fully re?ect that the Company attaches great importance to and cares for the safety of its employees,providing them with a safe and stable working environment and health protection. The Company will continue to improve productionsafety and occupational health management, to protect the physical and mental safety of employees, and to jointly promote the sustain-able and sound development of the enterprise.
The Company willcontinue to improveproduction safetyand occupationalhealth management
to protect thephysical andmental safety ofemployees
to jointly promotethe sustainableand sounddevelopment of theenterprise.providing themwith a safe andstable workingenvironment andhealth protection
Keeping the Heart and Soul of the BusinessShowing Ingenuity and Innovative Development
Toward Environmental Development,Being Environmental Pioneers
Reliable and Stable CooperationCohesion and CooperationWith Sincerity, Walking TogetherSustainable Development Management
With Sincerity, Walking Together
7.1 Industry Development and Standard Setting
7.2 Cooperation of Industry-University-Research
7.3 Helping to Build Communities
Megmeet actively participates in communication within the industry and in the revision of national and industry-related standards in orderto promote the common progress of the industry. As a technology-leading enterprise, Megmeet realizes the importance of close coopera-tion with industry associations and organizations, and therefore actively participates in domestic and international industry associations,such as the Shenzhen Electronic Chamber of Commerce, the Electrical Automation Association, the Microsoft Digital Association, and theElectronic Power Supply Association.
In 2023, Megmeet has carried out a number of initiatives in the area of industry- university-research cooperation. The Company cooper-ates with a number of universities in the strategic phase, including increasing the investment in R&D funding for schools and strengtheningthe adhesion of cooperation. Secondly, in the development phase, the Company organizes student receptions and sets up project cooper-ation plans. In the future stage, the Company set up a long-term cooperation and development plan for the target universities to lay thefoundation for continuous cooperation. In addition, the Company has joint school-enterprise cooperation programs with a number ofdomestic universities such as Wuhan University of Technology, Hunan University and Jiangxi University of Technology to meet the Compa-ny’s future business development needs and technical support work. Overseas, the Company has established research institutes andproduction bases in the U.S., Germany, Thailand, India and other regions, and plans to start a new research center construction project inthe U.S. In the future, the Company will further expand the territory of international cooperation between industry, university and research.
Through participation in these associations, the Company communicates and cooperates with other enterprises and experts in the sameindustry, sharing the latest industry trends, technological innovations and best practices. Meanwhile, Megmeet also actively participatesin various events, seminars and conferences organized by the associations to exchange experiences and have professional discussionswith industry peers.In addition to participating in industry associations, Megmeet also plays an active role in revising national and industry-related standards.The Company’s professional team often participates in the formulation and revision of national and industry-related standards, contribut-ing to the standardized development of the industry. Through these actions, Megmeet not only improves its own technical level andindustry in?uence, but also helps the healthy development and common progress of the whole industry.
Industry Development and StandardSetting
Cooperation of Industry-University-Research
FormulationTechnical Speci?cation for NewEnergy Vehicle Manufacturing forGreen and Low Carbon IndustryRecognition
Group Standard
Group Standard
Shenzhen Megmeet Electric Co., Ltd.S/NStandard nameParticipating unitsType of standard
Formulation/Revision
S/NStandard nameParticipating unitsType of standard
Formulation/Revision
RevisionArc Welding Equipment Part 5: WireFeeders
National StandardNational StandardNational Standard
Shenzhen Megmeet Welding
Technology Co., Ltd.
RevisionArc Welding Equipment Part 3: WireFeeders
Shenzhen Megmeet WeldingTechnology Co., Ltd.Shenzhen Megmeet Welding
Technology Co., Ltd.Shenzhen Megmeet WeldingTechnology Co., Ltd.
FormulationTesting Methods for EnergyConsumption in Welding Process
FormulationTechnical Speci?cation for GreenDesign Product Evaluation ArcWelding Equipment
FormulationIntelligent submerged oil electricscrew pump unit
Group StandardHangzhou Qianjing Technology Co., Ltd.
Shenzhen Megmeet Electric Co., Ltd.Zhuzhou Megmeet Electric Co., Ltd.Guangdong Tianjin Electronic Technology Co., Ltd.
Zhejiang Megmeet Electric Technology Co., Ltd.
FormulationGeneral Technical Conditions forHandheld Laser Welding Torch
Group Standard
FormulationHandheld Laser Welding MachineEnergy E?ciency Limit Value and
Group StandardShenzhen Megmeet WeldingTechnology Co., Ltd.
Shenzhen Megmeet Welding
Technology Co., Ltd.
FormulationSafe Useful Life of HouseholdElectrical Appliances Part 9:
Intelligent Toilet Bowl
Group StandardZhejiang Yihe Sanitary Ware Co., Ltd.
Keeping the Heart and Soul of the BusinessShowing Ingenuity and Innovative Development
Toward Environmental Development,Being Environmental Pioneers
Reliable and Stable CooperationCohesion and CooperationWith Sincerity, Walking TogetherSustainable Development Management
Megmeet Scholarship
Megmeet actively practices social responsibility, and constantly contributes to the society by sharing innovative ideas through regularinteraction and communication with government departments. For 7 consecutive years, the Company has cooperated with ZhejiangUniversity’s School of Electricity in student aid activities, setting up 10 scholarship places and 6-7 bursary places to help students completetheir studies. In 2023, the Company increased social welfare activities to enhance the Company’s brand image and actively ful?ll itscorporate social responsibility.
Helping to Build Communities
Social Welfare
As a company that upholds the concept of social responsibility, Megmeet has always been committed to playing an active role in all areasof society. As of the end of 2023, the Company has launched a series of concrete practical activities to help revitalize the countryside, notonly contributing to supporting the sale of agricultural products, but also injecting new vitality into local education through school-enter-prise cooperation. These initiatives not only promote farmers’ income and prosperity, but also enhance the market competitiveness oflocal agricultural products, while adding bricks and mortar to the local education. The Company’s actions are not only a strong supportfor the rural revitalization strategy, but also set an example of corporate social responsibility, bringing a positive impact on society.
Rural Revitalization
Target：
26 outstanding studentsenrolled in the School ofElectrical Engineering ofZhejiang University.Scope of Funding：
including doctoral students,master’s students andundergraduatesFunding Amount：
8,000 RMB (doctor), 6,000RMB (master) and 4,000 RMB(undergraduate) according todi?erent academic degrees.
Megmeet ScholarshipMegmeet Grants
Priority of Financial
Aid Recipients
Megmeet Scholarship is established by the Company’s donation, which is aimed at rewarding the outstanding studentsstudying in the School of Electrical Engineering of Zhejiang University and subsidizing the students with family ?nancialdi?culties. The scholarship program not only focuses on the students’ academic performance, but also emphasizes theiroverall development of morality, intelligence, and physical ?tness as well as their performance in both character andacademic excellence.
Through the establishment of scholarships and grants, Megmeet provides more learning and growth opportunities for thestudents of Zhejiang University’s School of Electrical Engineering, and at the same time re?ects the Company’s substantiveaction to actively ful?ll its corporate social responsibility.
Geographical Priority:
students from Hunan, Jiangxiand Guangxi.Funding Recipients:
2 doctoral students, 4master’s students and 2undergraduates.
Funding Amount:
4,000 yuan per person peryear for ?ve consecutiveyears.
Targets:
8 current students with?nancial di?culties in theirfamilies.
Funding Conditions:
hard work, diligence, goodgrades, recognized by theschool as family ?nancialdi?culties.
Funding Amount:
4,000 RMB per person peryear.
Social Welfare Donation Activity
On July 26, 2023, Megmeet actively participated in the community development a?airs of Tianyuan District to send a batchof warm sponsorship gifts to Lingxi Community to support the activities. These gifts are not only material donations, but alsocare and support for the community residents, which demonstrates the caring heart of Megmeet.On September 27, 2023, the Company once again took practical action to give back to the community, and joined hands withthe branch committee of Megmeet to carry out a warm Mid-Autumn Festival donation activity. The activity went into theYuetang community to care for the disabled and widows and orphans, totaling 30 people. The Company donated a wealthof Mid-Autumn Festival materials to bring them holiday greetings and care. This donation activity not only brought practicalhelp to the disadvantaged groups, but also conveyed the warmth and love of social organizations, showing the responsibili-ty and commitment of enterprises to the community.These donations demonstrate the social responsibility and caring spirit of Megmeet and its branch committees. By support-ing community activities and caring for the underprivileged, the Company conveys the concept of corporate social responsi-bility and establishes a good corporate image. The materials and care brought by these donations are of great signi?canceto the bene?ciaries. For the residents of Lingxi and Yuetang communities, it is not only tangible material support, but also akind of comfort and warmth in their hearts. These donations can improve their quality of life and enhance their sense ofbelonging and happiness to the community.By advocating the participation of enterprises in social welfare, Megmeet promotes the harmonious development andcommon progress of the society. At the same time, it also inspires more enterprises and individuals to participate in publicwelfare, forming a benign social mutual assistance mechanism.
Jiangxi Gan Orange Collection and Farming ActivitiesIn response to the national rural revitalization strategy and in-depth implementation of school-enterprise cooperation,Megmeet launched a meaningful practical activity to promote the sale of local agricultural products and support the educa-tion cause.The Company decided to support the sale of agricultural products in a way that is closer to people’s livelihoods in the processof cooperating with local universities. The Company chose to collect Jiangxi Gan oranges to support the sales of local agricul-tural products. The Company purchased a total of 150 exquisite Jiangxi Gan oranges worth about 20,000 RMB as gifts fromthe local Jiangxi community.The creation of this activity has played a positive role in the revitalization of local villages. By supporting the sales of localagricultural products, the Company promotes farmers’ income and prosperity, and injects new vitality into the local agricul-tural economy. Secondly, choosing Jiangxi Gan oranges as gifts not only shows the charm of local specialty agriculturalproducts, but also enhances the popularity and market competitiveness of the region’s agricultural products. In addition, thecooperation between Megmeet and universities has injected new impetus into local education and promoted the in-depthdevelopment of school-enterprise cooperation.This practice is not only a strong support to the rural revitalization, but also a positive contribution to the local economy,agriculture and education. Through the practice of corporate social responsibility, Megmeet has made positive contributionsto building a harmonious society, promoting rural development and enhancing the well-being of people’s livelihoods, andhas established a good corporate image, which has been widely praised and recognized by all sectors of the society. TheCompany also conveys positive corporate culture and values to the society and makes positive contributions to building aharmonious society and realizing sustainable development.
Keeping the Heart and Soul of the BusinessShowing Ingenuity and Innovative Development
Toward Environmental Development,Being Environmental Pioneers
Reliable and Stable CooperationCohesion and CooperationWith Sincerity, Walking TogetherSustainable Development Management
In the future, Megmeet will continue to ful?ll its corporate motto of “Creating a comfortable livingenvironment through the e?cient use of electricity” and integrate the concept of sustainable develop-ment into its corporate governance system. We are committed to achieving long-term growth andsocial responsibility, and with this in mind, we will strengthen our corporate governance structure,enhance management transparency and accountability, and further improve internal control mecha-nisms to ensure representative and e?ective decision-making.On energy management, we will gradually promote clean energy transformation, reduce our relianceon fossil fuels and adopt various energy-saving measures to reduce energy consumption and carbonemissions. At the same time, we will set targets for waste reduction and resources recycling, implementsustainable waste management programs, and enhance waste separation and recycling systems toreduce waste emissions and contribute to environmental protection.In terms of employee rights and bene?ts, we will enhance employee welfare and bene?ts, strengthenemployee participation and communication mechanisms, and commit to creating a safe and healthyworking environment to safeguard the rights and well-being of our employees.At the same time, we will further increase our investment in local communities, support programs ineducation, environmental protection, and social welfare, and actively participate in all kinds of socialresponsibility activities to promote the development of the community and the continuous progress ofpublic welfare.Megmeet will make unremitting e?orts to realize these goals and plans and make our contribution tobuilding a greener and more sustainable future.
Future Outlook
ESG Key Performance
Environmental Key Performance Table
Statistical data
202320222021Indicator unitName of key performance indicator
Statistical data
202320222021Indicator unitName of key performance indicator
132,242177,171166,742Natural gascubic meter
19,17428,00013,480
DieselliterGasoline51,963.5945,479.8351,542
liter
1,204,265.201,233,896.001,283,915.60Renewable energy
degree (kWh)
Purchased electricity
35,229,71027,970,44719,959,967
degree (kWh)
120,000,00060,000,0000Total exhaust emissionscubic meter
Energy use
Gaseous pollutant emissions
About 1,200975.13789.78
Direct (Scope 1) greenhouse gas emissions
Metric tons ofcarbon dioxide
equivalent
About 21,28016,369.0311,564.93
Energy indirect (Scope 2) greenhouse gasemissions
Metric tons ofcarbon dioxideequivalent
About 1,518,9001,234,884.62843,972.97
Other indirect (Scope 3) greenhouse gasemissions
Metric tons ofcarbon dioxide
equivalent
Seawatermegoliter
Generated Watermegoliter
Third party watermegoliter
24,67850,82527,940
Municipal purchased watercubic meter
Amount of surface water for usecubic meter
Amount of rainwater collected for usecubic meter
Groundwater usagecubic meter
69,50055,60049,500
Total recycled/reclaimed watercubic meter
1.011.010
VOC emissionsmg/m3
Surface watermegoliter
Groundwatermegoliter
Water utilization
Total wastewater dischargecubic meter
1,800950350Water pollution discharges
Waste management and pollutant prevention
Total recyclable wastetons
40.7039.9035.90
Other total general solid waste tons
0.500.500.50
Total hazardous waste tons
2.430.790.83
Total transportation milesKilometers
25,25045,76012,480
Number of electric private vehicle ownership
(classi?er forwheeled vehicles)(classi?er forwheeled vehicles)
(classi?er forwheeled vehicles)
(classi?er forwheeled vehicles)
Miles of electric private carsKilometers
Number of private fuel vehicles
Miles of private fuel vehicle Kilometers
9,3609,3609,360Number of electric trucks
Transportation
Miles of fuel trucksKilometers
Miles of electric trucksKilometers
Number of Fuel Trucks
Statistical data
202320222021Indicator unitName of key performance indicator
////////
O?ce saving on electricity consumptionDegree (kWh)
405,830414,125.1129,266.19Green o?ce
Social Key Performance Table
Saving paper consumption in o?cepiece
10,0005,0003,000Water conservation in o?cecubic meter
5,2815,097350
Statistical data
202320222021Indicator unitName of key performance indicator
Statistical data
202320222021Indicator unitName of key performance indicator
By Education
Doctor and ProfessorPerson
8109
MasterPerson
240183155
UndergraduatePerson
2,3631,7371,220
CollegePerson
1,3451,168970
Junior collegePerson
2,5872,1671,931
By EmployeeCategory
Total number of grassrootsemployees
Person
6,1385,2654,285
Total number of employees atmiddle management level
Person
Labor contractsigning ratio
Labor contract signing ratio%100100100
By Gender
MalePerson
4,1123,3022,599
FemalePerson
2,4311,9631,686
Total number of employeesPerson
6,5435,2654,285
Employee rights and bene?ts
Employee employment
Number of female employees inmiddle management
Person
Total number of employees atsenior management level
Person
Number of female employees insenior management
Person
By EmployeeProfessionalComposition
Production sta?Person
3,141
Sales sta?Person
Technical sta?Person
2,322
2,5542,094
5094061,8081,443Finance sta?Person
7671
Administrative sta?Person
318271
//////By Employee Type
Number of grassrootsemployees trained
Person
3,653
Number of middle managementemployees trained
Person
Number of senior managementemployees trained
Person
////
By Gender
Number of male employeestrained
Person
3,059
Number of female employeestrained
Person
1,023
////By Gender
Total hours of training received bymale employees
Hour
110,124
Total hours of training received byfemale employees
Hour
36,828
Total number of employees trainedPerson
4,0825,2654,285
Total hours of employee trainingHour
146,952189,525148,261
Average hours of employee trainingHour
36.0036.0034.60
Sta? training
///
/
By Employee Type
Total hours of training received byjunior sta?
Hour
131,508
Total hours of training received bymiddle management employees
Hour
12,204
//
Total hours of training receivedby senior management sta?
Hour
3,240509,072.00
Investment in vocational trainingYuan
//Occupational Health and Safety
Health and safetyinvestment
Employee investment inoccupational health and safety
RMB 10,000
Investment in Work SafetyRMB 10,000
19.7021.7014.30
Statistical data
202320222021Indicator unitName of key performance indicator
Statistical data
202320222021Indicator unitName of key performance indicator
////
////Number of corruption litigation cases ?led andconcluded by the regulator against issuers or theiremployees (Note 1)
Piece
Compliance operations
Number of employee compliance trainingPerson
6,543
Number of employee compliance training hoursHour
1.5
Anticorruption
Average number of hours of anti-graft andanti-corruption training received by employees
Hour
0.5
Work safetytrainingPerformance
Number of Safety TrainingPersonnel
Person
Hours of safety trainingHour
Safety training coverage
%
98983728440352
Quali?ed rate of product sampling%
95.5995.7992.79
Number of product recalls
Percentage of sold or shipped products that have tobe recalled due to safety issues
%
Business scope covered by quality managementsystem certi?cation
%100100100Customer satisfaction
%
87.5285.4186.50
Number of complaints received about products andservices
1346391Complaints handling rate
%100100100Product responsibility and service
Total number of suppliers
(A unit used to
describe thenumber)(A unit used todescribe the
number)(A unit used todescribe the
number)(A unit used todescribe the
number)(A unit used to
describe the
number)
(A unit used to
describe the
number)
piece
piece
954862801
Number of suppliers that have conducted socialimpact assessments
1168522Number of suppliers that have conducted environmentalimpact assessments
1168522Number of suppliers identi?ed as having actual andpotential signi?cant negative social impacts
Total number of new suppliers
165174140
Supply chain management data
Percentage of purchasers who have passed sustainableprocurement training within the Company
%100100100
By type ofassessment
Percentage of new suppliersscreened using environmentalcriteria
%
70.3
Percentage of suppliers screenedusing social criteria
%
70.335.115.7
35.115.7
Operating sites that have conducted a corruption riskassessment
1168522
Governance Key Performance Table
Number of disclosure reports
(A unit used to
describe the
number)(A unit used to
describe thetimes)(A unit used to
describe the
times)(A unit used to
describe the
times)(A unit used to
describe the
times)(A unit used to
describe the
times)(A unit used to
describe the
times)
7913759
Number of times the Board of Directors wasconvened
6113Number of times the Supervisory Committee wasconvened
5103Number of times the Strategic DevelopmentCommittee was convened
Number of times the Audit Committee wasconvened
Number of times the Nomination Committee wasconvened
Number of times the Remuneration and EvaluationCommittee was convened
Corporate governance
Number of Board MembersPerson
Disclosure byGender
Male DirectorsPerson
Female DirectorsPerson
Disclosure by Type
Independent DirectorsPerson
Non-Independent DirectorsPerson
Statistical data
202320222021Indicator unitName of key performance indicatorIntellectual property protectionNumber of patents heldPiece
1,4061,122835Number of copyrights heldPiece
224191187
Number of trademark and character registration rights held
Piece
569445237Number of software copyrights heldPiece
159137133Number of new patent applications ?led per yearPiece
427352340Number of new copyright applications per yearPiece
33414
Corporate operating performance indicators
Economicindicators
Operating IncomeRMB 10,000RMB 10,000RMB 10,000Net Pro?t
47,938.8841,291.28
10,859.92
2.18
62,511.20675,424.12
Total cash dividends (including tax)
9,471.867,921.11
Cash dividend per 10 sharesRMB yuan
0.501.60
547,775.86415,573.77
2-19
Optimizing Talent
ManagementRemuneration policy2-20
Optimizing Talent
ManagementProcedures for determining remuneration
Index Table of Reporting Standards
2-1About MegmeetOrganization details2-2
List of subsidiaries within
the scope of the reportEntities included in the organization’s sustainability report2-3Description of the ReportReporting period, frequency of reporting and contact person2-4
For details, please refer toeach section of the reportRestatement of information
ChapterGRI Standard ContentGRI Standard
Number
GRI 2: General Disclosure
ChapterGRI Standard ContentGRI Standard
Number
Activities and workers
Governance
2-10Corporate GovernanceNomination and Selection of the Supreme Governing Body
2-11Corporate GovernanceChairman of the highest governance body
2-12
Chairman’s SpeechCorporate GovernanceOversight role of the highest governance body in managingin?uence
2-13
Sustainability ManagementCorporate GovernanceDelegation of responsibility for managing impacts2-14
Sustainability ManagementCorporate GovernanceRole of the highest governance body in sustainability reporting
2-16
Stakeholder Communica-
tion
Substantive IssuesManagementCorporate GovernanceCommunication of key concerns
2-17Corporate GovernanceCommon knowledge of the highest governance body
2-15
Stakeholder Communica-
tionCorporate GovernanceCon?icts of interest
2-18
Sustainability Management
Corporate GovernancePerformance assessment of the highest governance body
2-6
About MegmeetIndustry Development and
Standard SettingReliable and StableCooperationActivities, value chains and other business relationships2-7Cohesion and CooperationEmployees2-8Cohesion and CooperationWorkers other than employees
2-9Corporate GovernanceGovernance structure and composition
Organizations and reporting practices
Usage Note: Megmeet reported the information cited in this GRI Content Index from January 2023 through December2023 with reference to the GRI Standard.GRI 1 used: GRI 1: Base 2021
302-5
Green ProductionNew Energy TransitionInitiativesEnvironmental Manage-
mentDecrease in energy demand for products and services
ChapterGRI Standard ContentGRI StandardNumber
2-23
Corporate GovernanceSupplier Quality
ManagementOptimizing TalentManagementPolicy Commitments2-24
Building a Stable Supply
ChainIntegration Policy Commitments2-25
Building a Stable Supply
ChainProcedures for remedying negative impacts
2-22
Chairman’s SpeechSustainability ManagementStatement on Sustainable Development Strategy
2-26
Corporate GovernanceImplementing Employee
CareMechanisms for seeking advice and raising concerns
Strategies, policies and practices
2-27
For details, please refer toeach section of the reportCompliance with laws and regulations2-28
Industry Development and
Standard SettingMembership of the Association
2-29
Stakeholder
CommunicationCorporate GovernanceMethods of stakeholder engagementStakeholder Engagement
GRI 3：Substantive Issues 2021
3-1Sustainability ManagementProcess for identifying substantive issues
3-2Sustainability ManagementList of substantive issues
3-3Sustainability ManagementManagement of substantive issuesGRI 201:Economic Performance 2016
201-1
Optimizing Talent
ManagementEconomic value directly generated and distributed201-2
Responding to Climate
ChangeFinancial impact of climate change and other risks andopportunities201-3
Implementing Employee
CareDe?ned bene?t plan obligations and other retirement plans
GRI 301： Materials 2016
301-1Green ProductionWeight or volume of material used
301-2Green ProductionRecycled feedstock used301-3Green ProductionRecycled products and their packaging materialsGRI 302：Energy 2016302-1ESG Key PerformanceEnergy consumption inside the organization302-2ESG Key PerformanceEnergy consumption outside the organization302-3
Green ProductionNew Energy TransitionInitiativesEnvironmental Manage-
mentEnergy intensity
302-4
Green ProductionNew Energy TransitionInitiativesEnvironmental Manage-
mentReduction in energy consumption
GRI 203: Indirect Economic Impacts 2016
GRI 205: Anti-Corruption 2016
GRI 206: Anti-competitive behavior 2016
205-1ESG Key PerformanceOperational sites where corruption risk assessments have beenconducted205-2Business EthicsCommunication and training on anti-corruption policies andprocedures
205-3Business EthicsCorruption incidents identi?ed and actions taken
203-1Social WelfareInfrastructure investment and support services203-2Social WelfareSigni?cant indirect economic impacts
GRI 202: Market Performance 2016
202-2ESG Key PerformancePercentage of executives hired from local communities
206-1
Keeping the Heart and Soul
of the BusinessLawsuits against anticompetitive behavior, antitrust andantimonopoly practices
ChapterGRI Standard ContentGRI Standard
Number
GRI 303：Water Resources and Sewerage 2018
303-1
Water ResourcemanagementOrganizational interactions with water as a shared resource303-2
Water ResourcemanagementManaging drainage-related impacts303-4ESG Key PerformanceDrainage303-5ESG Key PerformanceWater consumption
GRI 306：Waste 2020
GRI 308：Supplier Environmental Assessment 2016
306-1
Emissions and WasteManagementEmissions and Waste
ManagementEmissions and WasteManagementEmissions and WasteManagementEmissions and WasteManagement
Waste Generation and Signi?cant Impacts Related to Waste306-2Management of Signi?cant Impacts Related to Waste
306-3Waste generated
306-4Waste Transferred from Disposal306-5Waste entering disposal
GRI 305：Emissions 2016
305-1
Responding to Climate
ChangeESG Key Performance
Direct (Scope 1) GHG emissions305-2
Responding to Climate
ChangeESG Key Performance
Energy indirect (Scope 2) GHG emissions305-3
Responding to Climate
ChangeESG Key Performance
Other indirect (Scope 3) GHG emissions305-4
Responding to Climate
ChangeESG Key Performance
GHG Emission Intensity305-5
Responding to Climate
Change
GHG Emission Reductions
308-1
Reliable and Stable
CooperationReliable and StableCooperation
New suppliers screened using environmental evaluationdimensions308-2
Negative environmental impacts of supply chains and actionstaken
GRI 401：Employment 2016
401-1ESG Key PerformanceHiring rate of new employees and employee turnover
401-2
Optimizing Talent
ManagementBene?ts o?ered to full-time employees (excluding temporary orpart-time employees)
401-3
Implementing Employee
CareParental leave
403-3Occupational Health Services
GRI 403：Occupational Health and Safety 2018403-1
Guarding Health and
SafetyGuarding Health and
SafetyGuarding Health and
SafetyGuarding Health and
SafetyGuarding Health and
Safety
Guarding Health and
SafetyGuarding Health and
SafetyGuarding Health and
SafetyGuarding Health and
Safety
Occupational Health and Safety Management System
403-2Hazard identi?cation, risk assessment and accident investigation403-4
OHS services: worker participation, consultation and communi-cation
403-5Worker OHS training
403-8
Workers covered by OHS management systems
403-9
Work-related injuries
403-10
Work-related health issues
403-6
Implementing Employee
CareGuarding Health and
SafetyWorker health promotion
403-7
Prevention and mitigation of OHS impacts directly related tobusiness relationships
GRI 404：Training and Education 2016
GRI 405：Diversity and Equal Opportunity 2016
GRI 406：Anti-Discrimination 2016
404-1ESG Key PerformanceAverage number of hours of training per employee per year
404-2
Focusing on Talent
DevelopmentEmployee skills enhancement programs and transitionassistance programs
406-1
Optimizing Talent
ManagementIncidents of discrimination and corrective action taken
405-1
Optimizing Talent
ManagementDiversity of governing bodies and employees
GRI 407：Freedom of Association and Collective Bargaining 2016407-1
Building a Stable Supply
ChainOperational sites and suppliers where freedom of associationand collective bargaining rights may be at risk
GRI 408：Child labor 2016
Optimizing Talent
ManagementBuilding a Stable Supply
ChainOperating sites and suppliers with signi?cant risk of child laborincidents
408-1
ChapterGRI Standard ContentGRI Standard
Number
ChapterGRI Standard ContentGRI Standard
Number
GRI 409：Forced or compulsory labor 2016
Building a Stable Supply
ChainOperating sites and suppliers with signi?cant risk of incidentsof forced or compulsory labor
409-1GRI 413：Local community 2016
413-1
Sustainability Management
Green ProductionEmpowering Supply Chain
PartnersIndustry Development and
Standard SettingEnabling CommunitiesOperations with local community involvement, impact assess-ment and development plans
413-2
Water Resource
ManagementEmissions and Waste
ManagementESG Key PerformanceOperations with actual or potential signi?cant negative impactson local communities
GRI 414：Supplier social Assessment 2016414-1
Supplier Quality
ManagementBuilding a Stable Supply
ChainSupply Chain Sustainability
ManagementNew suppliers screened using social evaluation dimensions
GRI 416：Client Health and Safety 2016416-1
Product Quality andCustomer ServiceProduct Quality andCustomer ServiceProduct Quality andCustomer ServiceProduct Quality and
Customer ServiceProduct Quality and
Customer ServiceProduct Quality and
Customer Service
Assessing the health and safety impacts of product and servicecategories
416-2
Violations involving health and safety impacts of products andservices
417-1Requirements for product and service information and labeling
417-2Breaches involving product and service information and labeling
417-3Breaches involving marketing communications
GRI 417：Marketing & Signage 2016
GRI 418：Customer Privacy 2016
418-1
Substantiated complaints involving invasion of customer privacyand loss of customer data
414-2Negative social impacts of supply chains and actions taken
Supplier QualityManagementBuilding a Stable Supply
ChainSupply Chain Sustainability
Management
Name of subsidiariesS/N
Zhuzhou Megmeet Electric Co., Ltd.
Hunan Weilang Technology Co., Ltd.
Zhuzhou Weilang Technology Co., Ltd.
Beijing Laite Micro Energy Technology Co., Ltd.
Shenzhen Megmeet Drive Technology Co., Ltd.
Zhuzhou Lihui Technology Co., Ltd.
Shenzhen Megmeet Drive Software Technology Co., Ltd.
Megmeet Control Technology Co., Ltd.
Zhejiang Yihe Sanitary Ware Co., Ltd.
Hangzhou Yi Zhi Xin Technology Co., Ltd.
Xi’an Megmeet Electric Co., Ltd.
Hunan Megmeet Electric Technology Co., Ltd.
MEGMEET HONGKONG LIMITED
ALTATRONIC INTERNATIONAL CO., LTD.
MEGMEET USA, INC.
MEGMEET SWEDEN AB.
Megmeet Germany GmbH
Megmeet Electrical India Private Limited
List of Subsidiaries within the ReportChapterGRI Standard ContentGRI StandardNumber
Name of subsidiariesS/N
Wuhan Megmeet Electric Co., Ltd.
Zhejiang Megmeet Electric Technology Co., Ltd.
Shenzhen Megmeet Welding Technology Co., Ltd.
Shenzhen Megmeet Welding Software Co., Ltd.
Chengdu Megmeet Electric Co., Ltd.
Shenzhen Megmeet Energy Technology Co., Ltd.
Hangzhou Qianjing Technology Co., Ltd.
Zibo Hengwo Electromechanical Technology Co., Ltd.
Volgi International Technology Development (Shenzhen) Co., Ltd.
Hunan Magu Technology Co., Ltd.
Zhejiang Oulide Precision Technology Co., Ltd.
Beijing Nuomi Display Electronic Technology Co., Ltd.
Guangdong Lizi Micro Electric Technology Co., Ltd.
Hangzhou Chenkong Intelligent Control Technology Co., Ltd.
Suzhou Zhiwei Precision Drive Control Technology Co., Ltd.
Guangdong Maimi Electric Technology Co., Ltd.
Guangdong Tianjin Electronic Technology Co., Ltd.
Dongguan Yingte Electronic Technology Co., Ltd.
Dongguan Kai Li Shi Precision Components Co., Ltd.
Guangdong Qunshuo Electronic Technology Co., Ltd.
Guangdong Hemi Technology Co., Ltd.
Hunan Blue River Valley Technology Co., Ltd.
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Address: 34/F, Joint Headquarters Building, Hi-Tech Zone, No. 63 XuefuRoad, Nanshan District, Shenzhen, China5/F, Block B, Ziguang Information Port, Langshan Road, North District,Nanshan Science and Technology Park, Shenzhen, ChinaPostcode: 518000Tel: （switchboard）+86-755-86600666 （direct line）+86-755-86600637E-mail: irmeg@megmeet.comWebsite: www.megmeet.com