Contents
01/ About This Report03/ Message from the Chairman05/ About Farasis Energy
09/ Farasis Energy in 202313/ ESG Governance105/Appendix
105/ ESG Performance Table118/ Benchmarking Index for No. 1 of Shanghai Stock
Exchange for Self-regulatory Guidelines of ListedCompanies—Regulation of Operations121/ GRI Standards Index128/ Third Party Assurance Report
Shaping Corporate Governance
with Compliance Concepts
Managing with Due Diligence andSeeking Common Development
Showcasing Determination onGreen Development through
Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality Environment
Accumulating Strength andSeizing Industrial Opportunities
Beneting Society Through
Kindness and Actions
[Feature] Leading Development with Party BuildingContinuously Improving Governance StructurePreventing Risks and Improving Quality and E?ciencyAdhering to Integrity and Compliance in OperationEmbracing the Era of Tax Transparency
All-round Supply Chain ManagementEnhancing Supply Chain ResilienceSustainable Supply Chain RiskManagementResponsible Mineral Management
Creating Cutting-edge TechnologyOverall Consolidation of Quality ManagementFully Protecting the Rights and Interests ofCustomersPerfecting Information Security Management
Community CharityEmployee Volunteering
[Feature] Embracing New Trends in GreenDevelopmentAdvancing E?cient Resource UtilizationCommitted to Natural Ecosystem Conservation
Protecting Basic Rights and Interests ofEmployeesCreating a Fair Environment for GrowthFirmly Constructing a Safe and Healthy Lineof DenfensePracticing Employer's Humanistic Care
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
0102Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance withCompliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Reporting Scope
Reporting Period
Denition of Terms
Reporting Principles
Access to This Report
Unless otherwise specied, the policies, statements, and materials in this report cover the actual business scopeof Farasis Energy and our subsidiaries, which is the same as that of the annual report issued by Farasis Energy.Unless otherwise stated, this report is denominated in CNY (renminbi).
This report is the second ESG report released by Farasis Energy, covering the period from January 1
st, 2023 toDecember 31
st, 2023. In order to enhance the readability of the report, some of the contents or data have beenbackdated to previous or subsequent years.
For the convenience of expression and reading, “Farasis Energy”, “we” and “the company” in this report refer toFarasis Energy (Ganzhou) Co., Ltd. and our subsidiaries, such as Farasis Energy (Zhenjiang) Co., Ltd.
This report is ultimately compiled by identifying important stakeholders, analyzing and rating materiality issuesrelated to environment, society and governance, making decisions on the scope of the report, as well as collecting,summarizing, organizing, and reviewing relevant data and materials in the preparation process.The following standards and requirements were referred to in the preparation of this report.
The Environmental, Social, and Corporate Governance (ESG) Report (hereinafter referred to as “this report”) ispublicly issued by Farasis Energy (Ganzhou) Co., Ltd. (hereinafter referred to as “Farasis Energy”). This report iscompiled based on the principles of openness and transparency, discloses practices and performance of FarasisEnergy in fullling ESG-related issues in 2023.
This report is published in both electronic and printed formats. In case of conflicts, the Chinese version shallprevail. You can access the electronic version of this report through the following website:
https://www.farasis.com/index/investorYou can contact us as follows:
Phone: 0797-7329849E-Mail: farasisIR@farasisenergy.com.cn sustainability@farasisenergy.com.cn
About This Report
No. 1 of Shanghai Stock Exchange for Self-regulatory Guidelines of Listed Companies—Regulation ofOperationsUN 2030 Sustainable Development Goals (SDGs)The Global Reporting Initiative (GRI Standards) by the Global Sustainability Standards Board (GSSB)ISO 26000 (ver. 2010): Guidance on Social Responsibility
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
0304Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
The year 2023 marked a pivotal year for Farasis Energy,witnessing our new capacity, products, collaborations, andbusiness. As a result, our large-scale development journeyreached the zenith.As the automotive industry swiftly transforms from electricationtowards intelligence, the energy storage market is undergoing arapid shift from policy guidance to market dominance. In 2023,we overcame numerous challengesposed by erce resourcecompetition, industrial rivalry, quality improvement, ande?ciency enhancement. By rmly adhering to the foundationof the rule of law, principles of integrity, and innovation asour driving force, and recognizing quality as our lifeblood,we achieved robust development and sustained growth. Wemade outstanding contributions to the development of the newenergy vehicle industry and social progress.In 2023, we proactively responded to the national strategyof "carbon peaking and carbon neutrality", promoted greenmanufacturing and recycling, and achieved the low-carbon,intelligent, and circular manufacturing of power batteries. Withadvanced production processes and equipment, we improvedenergy utilization efficiency and resource conservationrates, reduced emissions of pollutants such as exhaustgas, wastewater, and waste, and mitigated greenhouse gasemissions, thus protecting the ecosystem. By exploring therecycling and reuse of power batteries, we extended theirservice life, reduced waste and disposal, and lowered theircarbon footprint.In 2023, we strengthened communication and collaborationwith our upstream and downstream partners, jointly promotingthe green transformation and sustainable development of theindustry chain. After establishing sound cooperation ties withraw material suppliers, automobile manufacturers, and batterysystem recyclers, we collaborated to optimize various aspectsof product design, production, use, and recycling. Steadily
Message from the Chairman
promoting responsible sourcing, we drove suppliers andother partners for compliance and high-quality development.We made efforts to improve product performance, safety,reliability, and eco-friendliness to meet the diverse needsof customers, promote the development of the new energyvehicle market, and contribute to addressing energy andenvironmental issues in the transportation sector.In 2023, we obtained several domestic and internationalcertications and assessments, and won numerous honorsand awards, demonstrating our strength and brand.Specically, we obtained international quality, environment,safety, and automotive industry management systemcertifications such as ISO 9001, ISO 14001, ISO 45001,and IATF 16949, as well as performance certications fromauthoritative global third-party agencies. We successfullysecured numerous intellectual property rights, encompassingpatents, trademarks, and software copyrights. Our companygarnered widespread recognition and endorsement fromdiverse industries and media outlets, which has added gloryand condence to our brand building and market expansion.In 2023, we prioritized the health, safety, and developmentof our employees and created a sound human resourcesmanagement system. Our company provided diversetrainings and learning opportunities, fostering a harmoniouscorporate culture and atmosphere. We followed national andlocal laws and regulations on human rights and safeguardedemployees' legitimate rights and interests such as wages,social security, vacations, and welfare, thereby enhancingtheir satisfaction and loyalty. Valuing their occupationaldevelopment and growth, we provided multiple routesfor promotion and job transfers, stimulating their workenthusiasm and creativity. We cultivate their sense ofteamwork and innovation by o?ering a platform for them toshowcase and exchange ideas.
Chairman, Board of Management
Farasis EnergyYu WANG
In 2023, staying true to our mission, we actively fullled oursocial responsibilities and continuously carried out activitiessuch as paying charitable visits to impoverished familiesof women who suffered from breast and cervical cancer,visiting lonely elder citizens during festivals, and caring forleft-behind children. We established assistance workshopsaimed at poverty alleviation. Through organized volunteerteams, we embodied the volunteer spirit of "dedication,friendship, mutual help, and progress", warming the heartsof those around us with our unique ways and strengths,demonstrating the kindness, benevolence, and responsibilityof Farasis Energy.In the era of “carbon peaking and carbon neutrality”, FarasisEnergy is united in our “second” entrepreneurship, workingtogether with employees and stakeholders to build a greenand sustainable future for human society.Reflecting on the year 2023, we feel a profound senseof pride and satisfaction. We have poured our sweat andwisdom into the development and advancement of ourcompany, propelling the new energy vehicle industry forwardand contributing to societal progress.Looking ahead to 2024, we are full of confidence andanticipation. We will stick to the foundation of rule of law,adhere to the principle of integrity, harness innovation asour driving force, and prioritize quality. We will continuouslyenhance our core competitiveness and market influence,meet the expectations and needs of our customers, fulll oursocial responsibilities and missions, and create a brilliantfuture exclusive to Farasis Energy!
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
0506Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Farasis Energy (stock code: 688567) is one of the globally leading producers of pouch batteries and energy storage batteries, aswell as one of the rst mass producers of NMC pouch batteries in China. Adhering to the mission of "provide clean energy, buildan intelligent world", we incorporate sustainable development into daily work, processes, and details; and we actively assumeglobal economic, ecological, and social responsibilities.No matter at what stage of energy development, we can create clean energy solutions that meet human needs and leadindustrial development by leveraging our strength in R&D and manufacturing. Dedicated to the R&D, production, and sales ofpouch lithium-ion batteries, we are developing rapidly in application areas like transportation, energy storage, equipment, andthe Energy Internet of Things.Farasis Energy aims to become a leading provider of power and energy storage battery solutions. We have established long-term strategic partnerships with renowned Original Equipment Manufacturer (OEMs) domestically and internationally, jointlypromoting the achievement of sustainable development goals. Through carbon neutrality in mobile transportation and energyusage, we aim to build a more sustainable world.We deliver leading clean energy products and services globally, promoting the sustainability of human society and promotinga better life for mankind. In future, we will take the new energy vehicles and energy storage markets as our starting points andgradually expand into the intelligent lithium-ion battery market.
Focusing on the R&D, production, and sales of lithium-ion batteries and battery systems for new energy vehicles, FarasisEnergy lays out a core market with green mobility and smart energy, while actively expanding into emerging markets forparticular industry applications.
About Farasis Energy
Company Prole
Products and Businesses
Our Clients
Corporate CultureOur mission: provide clean energy, build anintelligent worldTo achieve environmental protection goalsand reduce carbon emissions, we assumethe mission of providing green energy andstrive to meet domestic, international, andindustry standards as well as customerrequirements in every aspect of research,production, and sales.
Our vision: dedicate to technology innovation,lead energy transformation, promote a betterlife for mankindWe focus on technology learning andinnovation and ensure sufficient investmentin R&D as well as talent training. This allowsus to maintain our leading position in theindustry and we keep track of changes inlaws, regulations, and policies related to theenergy sector, thereby contributing to thelandscape of energy transformation.
Our spirit: innovation and entrepreneurship for win-win cooperationWe adhere to the principles of mutual respect, honesty, and humility, as well as collaborative equality, in internal communicationand interactions with external partners. Abiding by rules, regulations, and procedures, we foster a working atmosphere ofseamless communication, unity, and forward momentum in our company. Showing respect to our competitors and valuing ourcustomers, we continuously enhance product safety and quality, uphold fair competition, and eliminate corruption in the market.
Our mission
Our spirit
Our vision
Emerging Businesses
Passenger Vehicle
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
0708Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Our Business Locations
The mass production and under-construction capacity of Farasis Energy has exceeded 100 GWh, meeting the globaldemand for power batteries from customers.
Electric Passenger Vehicle
Ganzhou | ChinaZhenjiang | ChinaAnning | China
Guangzhou | ChinaStuttgart | GermanyGemlik | TürkiyeSilicon Valley | USA
R&D CentersR&D Centers & Manufacturing SitesManufacturing Sites
Our Products and Applications
PackBMS
ModuleCell
Electric MotorcyclesConstruction Machinery
Drone
Rail Transportation
Electric Trucks
Electric Buses
Electric Marine
Energy Storage
Sports Vehicle
We have implemented cutting-edge technology development for the future direction of battery development, including semi-solid/ solid-state lithium-ion battery technology, sodium-ion battery technology, high-energy density power battery cell technology, new chemical and electrochemicalsystems for energy storage, and anode and cathode material R&D technology. Currently, we have mass-produced 285Wh/kg batteries, developed and validated 330Wh/kg high-energy density batteries, and stockpiled 400Wh/kg high-energy density battery technology.
Capacity: 5 GWh
Capacity: 20 GWh
Capacity: 24 GWh
Capacity: 24 GWh
Capacity: 12 GWh
Capacity: 30 GWh
Capacity: 30 GWh
...
Ganzhou Site
Türkiye Site
Zhenjiang Site
Yunnan Site
Ganzhou Yaoneng Site
Guangzhou Site
Ganzhou New Energy Site
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
0910Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Farasis Energy in 2023
Farasis Energy signed the Investmentand Cooperation Agreement for the30 GWh Power Battery ManufacturingSite Project with the ManagementCommittee of Guangzhou Economicand Technological Development Zone.
Jiangling Group Electric Vehicle (JMEV)sodium-electric model equipped withFarasis Energy's sodium-ion batteriesofficially rolled off the production line,further expanding Farasis Energy'sproduct mix.
Dr. Yu WANG, Chairman of FarasisEnergy, delivered a keynote speech atthe China EV100 Forum, putting forwardthe viewpoint that “the power batteryindustry has already achieved thetransition from ‘nothing’ to ‘existence,’and the next stage is to transition from‘existence’ to ‘excellence’”.
The plant for Phase I of Farasis En-ergy's 30 GWh New Energy batteryproject was o?cially delivered, consol-idating the Farasis Energy's leadingrole in the pouch battery industry.
Dr. Yu WANG, Chairman of FarasisEnergy, delivered a keynote speech atthe 15thChina Auto Bluebook Forum,elaborating on Farasis Energy'sresolution and strategy to embrace theTWh era.
Chairman Yu WANG delivered a speechat the First New Energy Science andElectrification of Transportation Inter-national Conference, announcing thatFarasis Energy had delivered its globalfirst commercial order of the modelequipped with the eVTOL power bat-tery.
Farasis Energy launched outdoor pow-er supply products at the 15
th
ChinaInternational Battery Fair (CIBF2023)held in Shenzhen.
Farasis Energy unveiled a new superpouch solution (SPS) at the ChinaInternational Supply Chain Expo.
Dr. Yu WANG, Chairman of FarasisEnergy, elaborated on Farasis Energy'sunderstanding and judgement of thedevelopment of the global powerbattery industry in the Dialogue columnof the CCTV-2 Channel.
Farasis Energy’s ternary pouch cells,electric motorcycle product series,super pouch solution (SPS) batteries,and outdoor portable power supplyproducts made their debut at the 7
thChina-South Asia Expo in Kunming,Yunnan.
January 29
th
December 28
th
March 31
st - April 2
nd
December 2
nd
June 15
th
November 15
th
May 16
th - 18th
November 28
th - December 2
nd
June 17
th
August 16
th - 20thMilestones in 2023
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
1112Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsAwards and Honors
Product Research and Innovation
Contributions
Product Quality and Safety
Employee Rights and Benets
Supply Chain ESG Management
Social Responsibilities
Information Security
Finalists for Green Supply Chain Award at the 2
nd
AnnualEnvironmental, Social, and Governance (ESG) Awards
TOP 100 on 2023 Hurun China Energy
Private Enterprises
2023 Chinese EnergyStorage Battery Brand
The World’s Top 15 Enterprises ofOutstanding Contribution to Industry
Development
Golden Wing Award of the 4thUnmanned Systems Industry - Industry
“Little Giant”
2023 Top Awards of China LeadingSuppliers for Battery Syste
National Leading Enterprise inQuality of New Energy Industry
National Benchmark Enterprise of
Quality and Integrity
Stable and Qualied Product ofNational Quality Inspection
"OFweek Cup · OFweek” 2023Power Battery InnovativeTechnology Award
National Leading Brand in Quality of
New Energy Industry
2023 Benchmark Enterprise forIndustrial Information SecurityJiangxi Branch of National Industrial Information
Security Development Research Center
2023 Extraordinary Employer
Liepin
2023 Enterprise Talent Recruitment
and Utilization “Bo Le Award”
Zhenjiang Municipal Committeeof the Communist Party ofChina, People’s Government of
Zhenjiang City
British Chamber of Commerce Shanghai
19th in the Top 100 Private ManufacturingEnterprises in Jiangxi Province in 2023
Information O?ce of People’s Governmentof Jiangxi Province and Jiangxi Federation
of Industry & Commerce
Hurun Research Institute
China International EnergyStorage Conference
China Automotive BatteryInnovation Alliance
Zhuhai UnmannedSystems Association
NE Times and RIOConsulting
“The Fourth among LeadingPrivate Enterprises in Fulllment ofCorporate Social Responsibilitiesin Jiangxi Province” in 2023Jiangxi Federation of Industry
& Commerce
China Association forQuality Inspection
China Association forQuality Inspection
China Association forQuality Inspection
First Technology LeadingEnterprise in Jiangxi Province
Science and TechnologyDepartment of Jiangxi Province
National Intellectual Property
Advantage Enterprise
(October 2022 - September 2025)China National IntellectualProperty AdministrationGold Award of Forward-looking Powerand Thermal Management Category onthe 8th Lingxuan Awards 2023China Society of AutomotiveEngineers and China Committee
on Automotive Electronics
OFweek and OFweek
Libattery
2023 ILED Golden Globe Award -Innovative Technology of the Year
GGLB
Zhenjiang National EconomicDevelopment Zone 2023 “TopTen Enterprises” in Scientic andTechnological Innovation
Party Working Committee and
Management Committee ofZhenjiang Economic Development Zone
China Association for
Quality Inspection
2023 Responsibility Leadership Awardin Excellent Cases for Corporate SocialResponsibility Practice in China’s
Automotive IndustryChina Association of
Automobile Manufacturers
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
1314Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Oversee the ESG performance;Conrm our ESG strategy and objectives, identication results of ESGrisks and opportunities, and action plans;Review the ESG information disclosure.
All departments and sites shall execute various ESG decisions made by themanagement;Track daily work and supervise the progress;Collect and summarize ESG data and provide information for decision making.
Set up the ESG Committee, which is under the management level, and chairedby General Manager and co-chaired by two senior executives at vice presidentlevel;Identify, analyze, and evaluate ESG risks and opportunities;Lead the integration of ESG strategy and corporate strategies, and dene ESGobjectives and plans;Build the ESG policy system and motivation mechanism;Report ESG progress and propose e?ective suggestions to the General Manager.
Consist of department heads, site directors/managers, and ESGrepresentatives,with a leading department to coordinate the e?orts among departments andsites, so as for the daily implementation;The ESG leading department needs to coordinate functions and sites toimplement decisions from the management and supervise the progress.Develop our ESG strategy and propose reasonable ESG objectives and plans;Promote ESG action plans implemented in functions and sites.
ESG Governance
General Manager
ESG Committee
Departments andmanufacturing sites
ESG Working Group(Secretariat)
Upholding the mission of "provide clean energy, build an intelligent world", Farasis Energy continuously promotessustainability deployment and achieves green transition and upgrading. To this end, we integrate sustainability intodaily work to achieve sustainable development goals through green mobility and green energy.Farasis Energy builds up an ESG governance structure led by the General Manager, ensuring that the ESG strategyand implementation are much more e?ective and systematic.
ESG Governance Structure
Farasis Energy’s ESG Governance Structure
Decision-makingLevel
Management Level
Executive Level
General Manager
ESG Committee
ESG Practice
ESG Working Group (Secretariat)
Production Sites
Departments
＋＋
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
1516Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
The identication and analysis of ESG topics help Farasis Energy stay informed of the top concerns of internal and externalstakeholders, and promptly adjust its management strategies. In 2023, we surveyed and analyzed material topics of ESGin stakeholders, including management, employees, governments and regulators, shareholders and investors, customers,suppliers, contractors, partners, communities, and social organizations. We received 386 replies in this survey.Compared to the ESG topics of the previous year, we added three topics, including “Work of Workers' Congress/Labor Union","Digitalization and Intelligence System", and "Supplier ESG Audit". We adjusted "Clean-tech Introduction and Application","Product Design and Lifecycle Management", and "Conict Minerals Management" respectively into "Active Exploration andUtilization of Renewable Energy", "Calculation of Product Carbon Footprints", and "Responsible Mineral Management". Wemerged "GHG Emission" and "Raw Material Supply Risk Assessment" into "Response to Climate Change" and "ResponsibleMineral Management" respectively to improve our ESG topic management and better meet our development trends.
Materiality Analysis
Based on the research on laws and regulations,peer practices benchmark, public responses, andbusiness strategy, we updated the 2023 ESG topicspool with an amount up to 44 topics and selected28 of them as our priorities in accordance with ourannual development plan.
Based on our ESG strategy, we invite stakeholdersincluding management, employees, governments andregulators, shareholders and investors, customers,suppliers, contractors, partners, communities, andsocial organizations to join the survey on materialityanalysis. Based on the survey results, we identiedthe core topics that are most important and prioritizedfor Farasis Energy's management this year.
Identication and PrioritizationMateriality Analysis and Prioritization
Importance to Farasis Energy
Analysis of the Importance of ESG Topics for Farasis Energy in 2023
Importance to Stakeholders
1. ESG Governance Structure
2. Business Code of Conduct
3. Risk Management System
8. Response to Climate Change
9. Active Exploration and Utilization of
Renewable Energy
10. Calculation of Product Carbon Footprints
14. Employee Right Protection
15. Employee Health and Safety
16. Diversity and Inclusion
17. Complaint and
Communication
18. Employee Training and
Capacity Building
4. Anti-corruption and Anti-bribery
5. Whistleblowing and Whistleblower Protection
6. Shareholders' Rights Protection
11. Green Product Research Development
12. Pollutants and Waste Management
13. Biodiversity
19. Salary Incentives and
Promotion
20. Product Quality and
Safety
21. Product Research and
Innovation
22. Digitalization and
Intelligence System
Environmental
Topics
Governance
Topics
SocialTopics
7. Party Building
23. Customer Right Protection
24. Intellectual Property Protection
25. Data Security and Customer
Privacy Protection
26. Supplier ESG Management
27. Responsible Mineral Management
28. Community Welfare
In response to the concerns of stakeholders regarding laws and regulations such as the Inflation Reduction Act and theEU Battery and Waste Battery Regulation, we have intensified executive training and gradually planned to incorporate themanagement of ESG-related issues into departmental KPI assessments. We have conducted ESG training and capacity-buildingactivities specically targeted at the Board of Directors and senior management, including ESG training for management, ESGreport kick-o? meetings, and executive training courses.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
1718Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Key Topics
Potential or Actual ImpactSupply Chain ImpactEconomic AspectEnvironmental AspectSocial Aspect
Procurement of RawMaterials
Manufacturing or OperationUse by CustomersDisposalProduct Quality and SafetyProduct SalesEnvironment PollutionHealth and Safety▲●●▲
Product Research and InnovationProduct Sales
Climate Change andEnvironment
Intellectual Property Rights▲●●▲Employee Right ProtectionEmployee Rights and Benets●Employee Health and SafetyEmployee Health and Safety●
Risk Management SystemCorporate Development●Green Product Research DevelopmentClimate Change▲●●▲Business Code of Conduct
Fair Competition, Corruption and Bribery,Insider Trading, and Conicts of Interest
Trade Secrets, ProductQuality and Safety
●Supplier ESG ManagementProduct Sales
Climate Change andEnvironmental Pollution
Human Rights▲Active Exploration and Utilization of
Renewable Energy
Climate Change●Pollutants and Waste ManagementEnvironment Pollution●Salary Incentives and Promotion Talent Retention●
●Direct impact▲ Indirect Impact
Referring to the relevant standards in "GRI 3: Material Topics" in the Global Reporting Initiative Standards (GRI Standards) by the Global Sustainability Standards Board (GSSB), we evaluate the actual or potential impacts of key topics on the economy, environment, society, and humanrights, involving our operations and business activities, as well as di?erent stages of the upstream and downstream value chain.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
1920Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsPerformance and Progress in 2023
Improve the business ethicsmanagement system andclarify the management ofissues such as corruption,conict of interest, fraud,money laundering, and anti-competitive practices.Improve the anti-fraudsystem, promote resourceand information sharing, andjointly build a clean businessenvironment.
Strict supplier pre-evaluation andselectionCollaborate with supply chainpartners to focus on topics suchas environmental protection, laborrights, child labor, occupationalhealth and safety, and businessethicsConduct supply chain duediligence investigation andmanagement and continuouslycarry out due diligencemanagement of mineral resources
Collaborate with suppliers for openinnovation and tackle industry-wide challenges such as productcarbon footprints and materialrecycling
Introduce ISO 50001 to optimize energy e?ciencyand energy-saving methods, improve energy-saving measures, and conduct greenhouse gasemission accounting in accordance with ISO14064Maximize the utilization of raw materials and carryout a life-cycle assessment
Achieve green transition and intelligentmanufacturing through the introduction ofgreen energy, energy-saving technologicaltransformation, digital development, and leanmanagement
Promote enterprise-academia-research institute cooperation,strengthen international exchangeand communication, and continuouslybuild a high-level R&D teamQuickly and e?ectively solvecustomers’ quality issues and improveproduct quality to satisfy customers
Reduce waste of water and steam resources,improve water e?ciency, and save water
Enhance product performance viainnovation, establish a comprehensivelow-carbon and intelligent productionsystem that integrates productsolution portfolios, mass production,sustainable and eco-friendly plants,as well as post-lifecycle productmanagement, all within a holisticlifecycle approach.Enhance the quantity and quality ofpatent applications and improve thetrademark portfolio
Timely formulate our strategy of carbon peakingand carbon neutrality
SDG 16: Peace, Justice,and Strong Institutions
SDG 12: ResponsibleConsumption and Production
SDG 17: Partnerships forthe Goals
SDG 12: Responsible Consumption andProduction
SDG 7: A?ordable and Clean Energy
SDG 17: Partnerships for theGoals
SDG 6: Clean Water and SanitationSDG 3: Good Health and Well-beingSDG 9: Industry, Innovation
and Infrastructure
SDG 1: No Poverty
Strengthen our care andattention towards left-behindchildren and help vulnerablegroups in the communitiessurrounding our company’soperational premises
Establish assistance workshopsaimed at poverty alleviation tohelp impoverished familiesActively conduct charityactivities to help impoverishedstudents
SDG 11: Sustainable Citiesand Communities
SDG 4: Quality Education
SDG 13: Climate Action
Improve the management procedures for the laborprotection of female employees
Develop an employee development system thatencompasses the enhancement of managerial skills,professional capabilities, fundamental abilities, andlearning support
Standardize the occupational health and safetymanagement system from top to bottom
Introduce SA8000 to continuously improve the workenvironmentOptimize the human resource management systemand employee recruitment and employment processesto improve recruitment e?ciency and optimizerecruitment channels
SDG 5: Gender Equality
SDG 4: Quality Education
SDG 8: Decent Work and Economic Growth
SDG 10: Reduced InequalitiesFollow the principles of equal pay for equal workand equal employment and clarify that we do notdiscriminate against job seekers based on gender,age, race, religious beliefs, disabilities, and etc.
Managing with DueDiligence and SeekingCommon Development
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strengthand Seizing Industrial
Opportunities
Beneting SocietyThrough Kindness and
ActionsShaping CorporateGovernance withCompliance Concepts
Showcasing Determination onGreen Development through Low-
carbon Practices
Due to the presence of shift workers at the production and operation sites, the implementation and organization of integrity compliance training cannot ensure that all employees are fully covered.
Our investment in environmental protection mainly includes hazardous waste treatment, hazardous waste appraisal, hazardous waste warehouse expansion and renovation, environmentaltesting, radiation monitoring, etc.
Unclosed complaints from the U.S. and European customers concern the cycle of returning defective products to the selling country, which a?ects the progress of problem analysis.
Target suppliers are those based on internal supplier development and procurement control procedures.
? Conducted
training sessionson anti-corruption and anti-bribery,reaching
88.68
% of employees and
% of suppliers and contractors
? Assessed corruption risks for
%of operation premises? Conducted internal audits on business
ethics issues for
% of operationpremises?
No
major incidents of suspectedmonopoly or unfair competition
? Supplier Code of Conduct signed by
% of target suppliers
?
%
of direct material purchaserstrained in sustainable procurement?
% of active cathode materialsuppliers covered by audits ofthe supply chain due diligencemanagement system?
critical mineral raw materialsuppliers covered by audits ofannual supply chain due diligencemanagement
?
1,483
R&D employees, accountingfor about
22.6
% of all employees?
patents applied for this year,with a total of
patents appliedfor;
patents granted this year,with a total of
granted patents?
customer complaints, with aclosure rate of
95.85
%
? Annual external donation andrural revitalization fund up toCNY
1.11
million? The employment assistanceworkshops of us helped
needy families, o?ering
jobs? Organized the “Bringing Love
Home - Warming Children toProtect Their Growth” at the“Children’s Love Harbor” to sendwarmth and Spring Festivalsouvenirs to
children andfamilies
? Environmental protection investment of CNY
3.8273
million
, energy conservationprojects with investment of CNY
4.5107
million? PV power generation of
37,129,897.40
kWh? Total consumption of recycled water of
611,234.60
tonnes? “
B
” rating in CDP Climate ChangeQuestionnaire? Zhenjiang Site realized "Carbon Neutral
Production" for specic products, and Ganzhousite achieved carbon neutraltiy on its operationalboundries as certied by ISO 14068
? Conducted
safety drills and
safetytraining sessions, reaching
% of employees? Women holding
13.26
% of all managementpositions (manager level or above),
17.48
% ofjunior management positions (supervisor level orabove), and
% of senior management positions(statutory senior managers)?
5,724
new employees
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
2122Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and ActionsStakeholders EngagementBased on background information such as industry characteristics, products and services, as well as mission and vision, we identify various groups involved in our operations and business activities. By considering the frequency and importance of communication with each group, theirlevel of understanding of us, and their inuence on our operations and business, we have selected eight key stakeholders, namely, employees, governments and regulators, shareholders or directors, customers, suppliers, communities, and social organizations. We actively establish anormalized communication mechanism with stakeholders, striving to create greater value for all parties.
Representative
Expectation
EngagementMethod
Category
Employees
Governments andRegulators
Shareholders and
investors
Customers
Suppliers, contractors,
and partners
CommunitiesSocial OrganizationsManagement
●General employees
●Communitiesaround oursites
●Investors
●Domestic andinternationalcustomers
●Suppliers
●Contractors
●Partners
●Regular informationdisclosure
●Participation in relevantmeetings
●Communicationthrough industryassociations, etc.
●Supplier trainings
●Onsite audit andcommunication
●Regular visits
●Face-to-facemeetings
●Charity anddonation
●Complainthotline
●Governments andrelated authorities atvarious levels
●Shanghai StockExchange (SSE)
●China SecuritiesRegulatoryCommission (CSRC)
●Academia and researchinstitutes
●ESG rating agencies
●Media
●Industrial associations
●
Media briengs androundtables
●Regularcommunication andfeedback
●Project cooperation
●
Farasis Energy’so?cial website,WeChat publicaccount, and otheropen channels
●Employee RightProtection
●Product Quality andSafety Management
●Product Research andInnovation
●Employee Health andSafety
●Business Code ofConduct
●Party branch
●Labor Union
●Farasis CoreCommunity EmployeeExchange Platform
●E-mail box
●Corporate WeChataccount
●Employee suggestionbox
●"Farasis Home" o?cialaccount
●Regular work reports
●Management meetings
●Special training
●E-mail box
●Corporate WeChat account
●Pre-salescommunication
●After-sales service
●Regularcommunication, suchas customer visits
●Third-party trainings
●Customer audits
●Regular informationdisclosure
●Shareholders’ Meeting
●Investors’ roadshowsand meetings
●Hotline and e-mails
●Onsite visiting
●Business performancebriengs andpresentations
●IR activities leveragedby social media
●Product Quality andSafety Management
●Product Research andInnovation
●Risk ManagementSystem
●Green ProductResearchDevelopment
●Employee RightProtection
●Product Research andInnovation
●Product Quality andSafety Management
●
Employee RightProtection
●Employee Benets andSupports
●Employee Health andSafety
●Employee RightProtection
●
Employee Healthand Safety
●Product Qualityand SafetyManagement
●Product Researchand Innovation
●
Business Code ofConduct
●
Product Qualityand SafetyManagement
●EmployeeRightProtection
●Pollutantsand WasteManagement
●
FarasisEnergy’sCharityPrograms
●Product Quality andSafety Management
●Employee RightProtection
●
Employee Healthand Safety
●Product Researchand Innovation
●Farasis Energy’sCharity Programs
●Employee RightProtection
●Product Quality andSafety Management
●
Supplier ESGManagement
●Business Code ofConduct
●Risk ManagementSystem
●Anti-corruption and Anti-bribery
●Green Product ResearchDevelopment
●
Product Quality and SafetyManagement
●Employee Right Protection
●Active Exploration and Utilizationof Renewable Energy
●Pollutants and WasteManagement
●Salary Incentives and Promotion
●Board Directors
●Managers
●
Department heads
[Feature] Leading Development with Party BuildingContinuously Improving Governance StructurePreventing Risks and Improving Quality and E?ciencyAdhering to Integrity and Compliance in OperationEmbracing the Era of Tax Transparency
Our Progress:
In 2023, relying on the Shareholders’ Meetings, Board of Directors, and Board of Supervisorsas the governance foundation and guided by building of Communist Party of China (“CPC”or “Party”), Farasis Energy developed an internal control system, a compliance and riskmanagement system, and a tax governance system, as well as a business ethics and anti-corruption system. We continued to shape a solid and transparent corporate governancesystem.Our Performance:
Promote the process of board composition diversity. Our Board of Directors comprises 11members, including 4 independent directors; while the Board of Supervisors consists of 5members, including 3 females.Establish e?ective corporate governance system. In 2023, we held 17 board meetings, 3shareholders’ meetings, and 12 supervisory board meetings.Maintain adequate investor interaction. We organized and participated in 47 reverseroadshows and strategy meetings, conducted 13 investor onsite communication sessionson manufacturing sites, held seven online public exchange meetings with investors (over1,600 attendees), and answered over 80 online questions on SSE’s public platform.Strengthen the party and government construction of enterprise. The Group PartyCommittee has 9 members, including 1 general Party branch and 4 Party branches. Thereare currently 99 registered Party members and 11 applicants for Party membership.Promote anti-corruption and clean government work. Conducted 14 training sessions onanti-corruption and anti-bribery, reaching 88.68% of employees and 100% of suppliers andcontractors.Ensure compliance operation. No major incidents of suspected monopoly or unfaircompetition throughout the year.
Shaping Corporate Governancewith Compliance Concepts
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
Enhancing the Management of Party Organizations
Party Organizations and Culture
To further optimize and adjust the organizational structure of the Group’s Party organization, FarasisEnergy’s Party Branch applied to the Comprehensive Party Committee of Fields and Industries of“New Economic and Social Organizations” of the Enterprise Service and Industry and InformationBureau of Ganzhou Economic and Technological Development Zone for the establishment of agroup Party committee (9 members) in June 2023.We enhance the development of Party organizations, implement the CPC's organizational lifesystem, and normalize and institutionalize learning and education. We adhere to the Party Branch'swork approach of "three promotions, three cultivations, and three improvements" and implementthe CPC's organizational life system. We set up "The Vanguard of Party Members", "CPC MemberSentry", and "Party Member Zone of Responsibility" in production areas, to ensure the presenceof Party members in key positions and at times of di?culties and ensure Party members lead therobust growth.
In terms of new materials, the O?ce developed 13 cathode materials for sodium-ion batteries, laying the foundationfor the timely delivery of products for sodium-ion battery projects.In terms of supplier development, the O?ce developed nearly 10 material suppliers throughout the year, securingour power battery supply chain.In terms of technical support, the O?ce provided technical support for various mass production projects and cellproducts nearly 20 times, successfully solving about 8 process and technical problems. The O?ce also applied foror published three technical invention patents.
We firmly advance training for applicants for Party membership and potential Party members. In 2023, we accepted threepotential Party members, trained 11 applicants for Party membership, and registered 27 Party members among the oatingpopulation. During the past year, we organized 15 trainees to participate in training courses and all successfully graduated.Through carriers such as the Party congress, "Jiangxi Party Building Cloud App", and public account, we actively organizedParty members to learn and follow the CPC's ideology and improve their political stance. All members of the Party Committeeuse the "Jiangxi Party Building Cloud App", quickly sparking a learning trend among all Party members and cadres.
To fully leverage the exemplary role of Partymembers as pioneers, Farasis Energy has setup the “CPC Provincial Congress DelegateOffice”, consisting of the Party Member Groupfor Battery Cell Innovation, Party Member Groupfor Pack Innovation, and Party Member Groupfor Special Projects. The o?ce aims to promoteadvanced experience, transform innovativeachievements, solve technological bottlenecksof new energy technology, and promotetechnological progress in Farasis Energy.
Cultivating Technical Experts intoParty MembersCultivating Party Members intoTechnical ExpertsCultivating Party Members andTechnical Experts into CorporateManagement
Improving CulturalQualityImproving TeamworkCohesionImprovingDevelopmentMomentum
The Group Party Committee sets up Party members’ rooms with the standards of "places, facilities,signs, CPC flags, books and newspapers, and regulations". We set up 12 "Vanguards of PartyMembers", 4 "Party Member Zones of Responsibility" and 64 Party members "make promises andpractice their promises", to ensure Party members lead the robust growth. In future, we will launchthe "1269" Party building strategy, specically, one goal, two enhancements, six leadership, andnine transformations. It will further promote the corporate culture, organization, system, quality, ande?ciency.
Work Approach of “Three Promotions, Three Cultivations, and Three Improvements”
CPC Provincial Congress Delegate O?ce
Case
[Feature] Leading Development with Party Building
Promoting Servicesvia Party BuildingPromotingInnovation viaServicesPromotingDevelopment viaInnovation
Three PromotionsThree CultivationsThree Improvements
Number of generalParty branch(es)
Number of new members of the year
Person
Number of Party branches
Number of applicants for Party membership
Person
Number of Partymembers of the year
Person
In 2023
2625Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
Party Conduct and IntegrityOur Party Committee strictly implements the Provisions on the Implementation of Primary Responsibilities of the PartyCommittee (Party Leadership Group) for Overall Strict Party Governance and convened two Group Party Committee (Branch)meetings throughout the year to specically discuss the work of overall strict Party governance and Party conduct and integritybuilding.We actively promoted thematic education and convened four Party committee meetings themed by education and leadershipthroughout the year to clarify responsibilities and strengthen accountability. We conducted two thematic tutorials and each(general) party branch organized four collective learning sessions. In line with the learning theme and practical work, weorganized four exchange and discussion sessions for Party members and organized four volunteer service activities led by Partymembers.In 2023, the Group Party Committee received the title of "Advanced Primary Party Organization" from the Party WorkingCommittee of "New Economic and Social Organizations" of Ganzhou Economic and Technological Development Zone. Itreceived a commendation from the Party Working Committee of "New Economic and Social Organizations" of GanzhouEconomic and Technological Development Zone in the Notification on Supervision of Party Building Work and ThematicEducation in Non-public Economic and Social Organizations in Q3 of 2023. It received the title of "Two Strong & Six Good"Party Organization for Party Organizations of New Economic and Social Organizations in Ganzhou Economic and TechnologicalDevelopment Zone. It received a "Good" rating in the evaluation of 88 Party organizations for Party building. In 2023, wereceived the titles of the Fourth among Leading Private Enterprises in Fulllment of Corporate Social Responsibilities in JiangxiProvince, the "Ganzhou May Day Labor Award", the Excellent Organization for the "Five-Small" Production Competition inGanzhou, the Demonstration Enterprise for Industrial Reform in Ganzhou Economic and Technological Development Zone, andthe Advanced Group for Blood Donation in Ganzhou.
In 2018, he joined the Product Testing Department and achieved the process standardization of testing tasks andthe sharing of test data in the department by leveraging his knowledge of automated control and managementexperience. This signicantly improved the test e?ciency and reduced errors.He met the customers’ testing requirements through semi-automatic control methods with his knowledge andsupplier research. After projects were assigned, he participated in the equipment selection, installation, andcommissioning work for the testing building, laying a foundation for the development of key customer projects.He diligently studied technology and applied his knowledge to optimize the design of testing xtures, change thewiring method of charging and discharging equipment, and upgrade the software for charging and dischargingequipment. These improvements enhanced the space utilization rate of SPS cells and expanded the measurementrange of charging and discharging equipment. The modied testing equipment meets the development requirementsof existing SPS cells.
Major Deeds:
Typical Case of “Top 10 OutstandingYouths” - Ming Chunfa
We have organized the Selection of “Top 10 Outstanding Youths” for threeconsecutive years to recognize young employees who have demonstratedoutstanding performance, innovative spirit, and leadership potential intheir work. In October 2023, we carried out the Third Selection of “Top 10Outstanding Youths” of Farasis Energy and 34 candidates participated in thisactivity. We finally selected 10 individuals through various stages such aspersonal/departmental recommendation, online voting, onsite evaluation, anddemocratic evaluation.
The Third Selection of “Top 10 Outstanding Youths” of Farasis EnergyAdhering to the principle of Party building leading mass building, we inspire new vitality in each (general) party branch and carryout mass and group activities to enhance team emotions and cohesion. In 2023, we conducted 14 activities of various types.We fully utilize the "Farasis Home" o?cial account, video channel, and o?ine promotional carriers (such as bulletin boards andbanners) to publicize the deeds, dedication, and craftsmanship spirit of labor models and advanced collectives.Educational and Cultural Activities
Case
Learning Xi JinpingThought on Socialismwith ChineseCharacteristics fora New Era everymonthThe Secondsession "May 4
th
Medal Collective"Competition
“Date with SpringTea” - InternationalWomen’s Day TeaPlantation Outingand Tea PickingActivity on March 8
th
July 1st Gala ofCultural BenetActivities of New EraCivilization PracticeSeries in Ganzhou in2023
School-attendingCeremony forFarasis EnergyEmployees’Children
The Third Selection of"Top 10 OutstandingYouths"
Watching Filmswith Revolutiontheme
Organizing educationbriengs to learn andimplement Xi JinpingThought on Socialismwith ChineseCharacteristics for aNew Era
Number of Partymember activities
Unit/TimeUnit/Person timesNumber of people covered
by Party member activities
202120212022202220232023
2827Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.
About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energyin 2023
ESGGovernance
Appendix
Shaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
2930Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
Appendix
Shaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsContinuously Improving Governance StructureContinuously Standardizing Corporate GovernanceFarasis Energy gradually improves internal rules and regulations and continuously promotes standardized and proceduralmanagement according to laws, regulations, and regulation rules, including the Company Law of the People’s Republic of China,the Securities Law of the People’s Republic of China, the Code of Corporate Governance for Listed Companies, and the RulesGoverning the Listing of Stocks on the Science and Technology Innovation Board of Shanghai Stock Exchange.We have established a series of systems and a corporate governance structure with clear rights and responsibilities and mutualchecks and balances. They include the Articles of Association of Farasis Energy (Ganzhou) Co., Ltd., Rules of Procedure ofShareholders’ Meetings, Rules of Procedure of the Board, and Rules of Procedure of the Board of Supervisors. We strictly runthe Shareholders’ Meeting, Board of Directors, and Board of Supervisors based on decision-making authority and scientificprocedures.Our Board of Directors has established the Audit Committee, Strategy Committee, Nomination Committee, Remuneration andEvaluation Committee, and Technology and Product Committee. Each committee plays a positive role in decision-making andsupervision in relevant areas.
Board of SupervisorsAudit CommitteeStrategy CommitteeNomination CommitteeRemuneration and Evaluation Committee
Technology and Product Committee
Corporate Governance Structure of Farasis Energy
Board of Directors
Shareholders’ Meeting
Enhancing Communication with InvestorsFarasis Energy aims to protect investor rights by complying with disclosure requirements and developing policies such asthe Management Measures for Investor Relations and Management Measures for Information Disclosure, to build strong andhealthy investor relations.
The Board ofSupervisors consists of
membersThe Board ofDirectors comprises
members
including
femalesupervisors
Non-independentdirectors
persons
Independentdirectors
persons40-49
persons
Doctoral degree and above
persons
Number of independent directorswith an industry background
persons
Number of independent directors with aprofessional background in risk management
persons
Number of independent directors with abackground in accounting or nance
persons
50-59
persons
Master’s degree
persons60 and above
persons
Bachelor’s degree
personProfessional backgrounds of independent directors
Educational backgrounds of Board membersAges of Board members
Independence of Board members
We actively answer the questions raised by investors on public platforms such as ShanghaiStock Exchange E Interactive and investor hotlines, promote information communicationbetween listed companies, investors and other market participants, and protect the rights andinterests of small and medium-sized investors.In 2023, we answered more than 80 questions from investors on the E-interactive platform andanswered a number of questions from the investor hotline.Social Media
We regularly conduct onsite communication sessions for investors on our manufacturing sites sothat they can fully learn about the operation of our sites, product manufacturing processes, andproduction processes, as well as the industrial application of our latest technologies.In 2023, we organized 13 onsite communication sessions.
Onsite Surveys
of SpecicObjects
We fulfill our information disclosure obligations, and on this basis, we implement a voluntarydisclosure system to guarantee the truthfulness, accuracy and completeness of the informationdisclosed.In 2023, we issued 75 interim announcements, 4 periodic reports, and several other disclosures.Announcement
Disclosure
We hold regular online public meetings such as performance briefing meetings, performanceforecasts, and investment communication meetings to focus on interpreting our regular nancial status,operating performance, and achievement of management goals, as well as our future business plansand prospects. We update the progress of major issues such as equity trading in listed companiespromptly and provide answers to the key concerns of investors.In 2023, we organized seven public exchange meetings, including performance briengs, with over1,600 attendees from participating institutions.Performance
Briengs
We regularly organize strategy meetings, roadshows, reverse roadshows, and online public exchangemeetings with investors to timely communicate our latest developments to the capital market andcreate transparent communication.In 2023, we organized and participated in 47 online and o?ine investment exchanges to maintain theattention of the capital market.
Exchangeswith Investors
The board meetings held
times
The supervisory boardmeetings held
times
The shareholders'meetings held
times
The meetings of theCommittees under theBoard of Directors held
times
In 2023, We conscientiously implemented the responsibilities of the three committees, emphasized deepening theawareness of governance, optimizing the internal mechanism of corporate governance, and protecting the legitimaterights and interests of investors.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
3132Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
Appendix
Shaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Preventing Risks and Improving Quality andE?ciency
Adhering to Integrity and Compliance in Operation
Improvement of Internal Control System
Empowering Stakeholders to Grow in Compliance
Compliance System
Management of Compliance Risks
Being responsible for establishing, improving, and e?ectively implementing the internal audit system, the Board of Directors andits Audit Committee ensure that the information disclosed in internal audits is true, accurate, and complete. Under the directleadership of the Board of Directors and its Audit Committee, our Supervision and Audit Department exercises internal auditpower and reports to them.All internal organizations, subsidiaries, and significant equity holding companies of Farasis Energy cooperate with ourindependent Audit and Internal Control Department to fulll its responsibilities under the laws and regulations, accept internalaudit supervision, and provide necessary conditions.This department is entitled to access and review documents, meeting minutes, computer software, and other relevantmaterials related to production and operation, including but not limited to plans, budgets, final settlement, account books,reports, contracts, and other related documents. It is entitled to request the audited organizations to provide documents,objects, information, and other materials necessary for the audit work. It is entitled to conduct onsite inspections, inventories,or supervision of assets and to request departments and personnel to conduct face-to-face workow tests. If any personnelconduct any behavior that obstructs or disrupts audit work or refuses to provide materials, with the approval of the leader, thisdepartment may take necessary temporary measures and propose decisions and suggestions to pursue the responsibility ofsuch personnel.This department regularly screens internal and external risks, compiles a risk list, and periodically updates it. It collaborates withresponsible departments to update the risk control matrix, ensuring a suitable risk control model.For high-risk business process (such as certain procurement, fund management, asset management, and etc.), this departmentformulates an annual audit plan and completes multiple project audits within a one-year audit cycle to ensure that high-riskmatters are included in the annual routine audit.
"Compliance makes long-term success". Compliance is not a cost, but a productive force.
We have developed the Management Procedure for ComplianceObligations and Evaluation of Compliance to guide our compliancemanagement personnel and organize relevant departments toevaluate compliance in EHS, labor, employment, anti-bribery, anti-fraud, information security, intellectual property, energy management,and etc.In the early stage of compliance evaluation, each specializedcompliance liaison collects and sorts out applicable legal andregulatory standards for each specialized project, identifiescompliance obligations related to Farasis Energy, and then developsa List of Legal Obligations and Other Requirements.The compliance management personnel request the responsibledepartments to provide supporting materials created during theperformance of compliance obligations based on evaluation criteria.By comparing the collected supporting materials with the identiedcompliance obligations, the compliance management personnelprovide a conformity evaluation, identify areas for improvement, andissue improvement notices accordingly.
Based on applicable laws, regulations, and regulatory provisions, we have established policies and systems such as FarasisEnergy’s Code of Conduct for Compliance Operation, Ethical Conduct Management Procedures, and Provisions on theInvestigation of Responsibilities for Breach of Rules and Disciplines. These policies and systems clearly dene the managementof topics such as corruption, conflicts of interest, fraud, money laundering, and anti-competitive practices, safeguarding thesound development of Farasis Energy.Farasis Energy’s Code of Conduct for Compliance Operation: It aims to standardize the legal and compliant business activitiesof all employees, as well as third parties engaged in business activities on behalf of Farasis Energy, to avoid compliance risks atthe source and prevent potential issues.
Ethical Conduct Management Procedures: To standardize the internal employees’ business conduct and Farasis Energy ‘sbusiness activities, our management takes the lead in promoting the cultivation of business ethics and actively organizes ethicstraining that covers employees, personnel dispatched by third parties, and suppliers. The Audit Department supervises theintegrity and ethics of Farasis Energy ‘s economic activities and provides recommendations that comply with ethics and lawswhen necessary.Provisions on the Investigation of Responsibilities for Breach of Rules and Disciplines: These Provisions aim to standardize thehandling and accountability for serious violations and disciplinary cases in the business and engineering areas of all entitiesa?liated with Farasis Energy. They are designed to e?ectively address issues of negligence in management, education, andsupervision related to serious violations and disciplinary cases, as well as omission and passive attitudes on sensitive and risky issues.
A "corrupt practice" refers to the act of o?ering, giving, receiving, or soliciting - no matter directly or indirectly- anything of value to inuence improperly the other party.A “fraudulent practice” refers to any act or omission, including misrepresentation, that is, someone knows,recklessly misleads, or attempts to mislead a party to obtain nancial or other benets or avoid obligations.A “collusive practice” refers to any arrangement between two or more parties for any improper purpose,including the purpose of improperly inuencing the other party.A "coercive practice" refers to the act of impairing, harming, or threatening to impair or harm - no matterdirectly or indirectly - any party or the property of the party to inuence improperly the actions of a party.An “obstructive practice” refers to any act of intentionally destroying, falsifying, altering, or concealingevidence materials required for an investigation, or providing false materials to investigators in an attempt toseriously impede the investigation of alleged corrupt, fraudulent, coercive, or collusive practices, as well asthreatening, harassing, or coercing any party to prevent it from participating in the investigation or disclosingknown investigation information.Sexual harassment refers to any unwanted act that violates the will of another person and causes discomfortor association with sexual connotations through language, expressions, actions, text, images, videos, audio,links, or any other form of information, regardless of whether the perpetrator of the act or the sender of theinformation has the intention or purpose of harassment or any other improper motive.
CorruptPracticesFraudulentPracticesCollusivePracticesCoercivePracticesObstructionPractices
SexualHarassment
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
3334Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
Appendix
Shaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsEnhancement of Compliance Awareness
We comprehensively collect and screen newly issued laws, regulations, and standards, as well as policy notications publishedby state authorities. We compile the selected information that is applicable to our company into a Compliance Classroom -Updates of Latest Regulations and publish it on our OA system every two weeks.In 2023, we focused on interpreting the EU battery regulations and established an EU Battery Regulations Taskforce to facilitatethe implementation of measures in 2024 and 2025. We conducted the 2023 Annual Compliance Training for all employees, witha training duration of 55 minutes. We organized compliance training specically for the management.
Creating a Good Atmosphere of Integrity
In 2023, the key regulatory focuses of our anti-fraud work include unauthorized or illegal appropriation and misappropriation ofcorporate assets for personal gain, false records, misleading statements, or material omissions in nancial accounting reportsand information disclosures, abuse of authority by directors, supervisors, managers, and other senior management, andcollusive fraud by related institutions or personnel.We have established an anti-fraud framework to dene the responsibilities of each level. We stipulate that departments shouldsupport anti-fraud e?orts and establish and improve fraud prevention management systems.
The Board of Directors urges the management to build an anti-fraud culture and enhance the anti-fraud internal controlsystem; the Board of Directors and the Audit Committee spearhead anti-fraud activities and direct and oversee anti-fraud operations.The management is responsible for establishing, improving, and implementing internal controls to reduce the chancesof fraud. It also should take proper and e?ective remedial measures for fraud behaviors, and be accountable for theoccurrence of fraud. Heads of subsidiaries, branches, and departments are primarily responsible for anti-fraud e?ortsat respective units or departments.Audit and Internal Control Department: As a standing organization in charge of anti-fraud work, it is responsible foranti-fraud work in Farasis Energy and our subsidiaries.Human Resources Department: It is responsible for penalizing employees who bear leadership and directresponsibility for fraudulent practices according to the approved opinions. This department should handle thesalary, bonuses, labor remuneration, and labor relations of employees involved in fraud. It should conduct anti-fraud training, legal and regulatory education, as well as integrity and moral education for new employees.Supply Chain Management Center: It is responsible for informing Farasis Energy 's whistleblowing channels toall suppliers according to relative policies, and signing integrity agreements with all suppliers. It also administersrewards and punishments for suppliers based on the approved treatment suggestion.Legal Compliance Department: It is responsible for reviewing cases and evidentiary materials transferred by theAudit and Internal Control, referring fraudulent cases that meet the criteria for case-ling to judicial authorities, andinitiating legal proceedings against individuals involved on behalf of Farasis Energy.Finance Center: It is responsible for promptly transferring any clues of fraud discovered during financialmanagement to the Audit and Internal Control Department. Before the conclusion of a fraud case, it freezes allpayments of the individual responsible for the case. It assists in recovering economic compensation related tofraud cases.
Audit Committee of Board of Directors
Audit and Internal Control Department
Human Resources Department
Supply Chain Management Center
Legal Compliance Department
Finance Center
Management
To e?ectively prevent fraudulent practices, we, our branches and subsidiaries, as well as all departments, have improvedinternal control systems and regularly conduct internal control self-assessments.In the Anti-Fraud Management System and Provisions on the Investigation of Responsibilities for Breach of Rules andDisciplines, we have established clear audit and control business process (such as accounting and procurement procedures)to prevent corruption and bribery. These procedures regulate the professional conduct of all employees, especially directors,supervisors, middle and senior management, and employees in key positions. They further explicitly prohibit any form offraudulent practice that harms the legitimate economic interests of Farasis Energy or seeks improper economic benets.We have developed the Gift Management Measures to clarify the specific commercial behavior for approving sensitivetransactions (such as gifts and travel), ensuring that gifts play their due role in business interactions. We e?ectively managegifts and cash gifts received from external institution.Our Audit Department formulates an annual audit plan to conduct routine audits every year for high-risk business processesin various departments such as procurement, fund management, asset management, and etc.We conduct various forms of integrity and compliance education and trainings for our employees, such as issuing holidayguidelines and decisions regarding the disciplinary actions for employee misconduct through our OA system, and also bypublishing monthly ethical conduct posters through our corporate WeChat, as part of our ongoing internal integrity andcompliance training program.For anti-corruption trainings and warnings targeted at contractors and suppliers, we conduct internal anti-corruption trainingand send notications to suppliers on prohibiting gift-giving during holidays. Our Supply Chain Department takes the lead insigning anti-corruption agreements with them, prioritizing business cooperation, and conducting due diligence on suppliers.In future, we will conduct anti-corruption training for suppliers, introduce our internal integrity system and internal audit andsupervision system to suppliers, and advocate a fair, just, win-win, and clean business environment.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
3536Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
Appendix
Shaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
We have established a sound whistleblowing system, optimizing the whistleblowing and complaint system as well as thewhistleblower protection system. We have set up a hotline and clarified the procedures, time limits, and requirements forhandling complaints and reports, ensuring that whistleblowing and complaints become an important route for us to e?ectivelyobtain information.In Farasis Energy’s Code of Conduct for Compliance Operation, we clearly dene the rules for consultation, whistleblowing, andhandling of violations. We encourage any employee to promptly and actively consult or report to the compliance departmentwhen he/she has doubts about the compliance of certain acts and di?culties in judging how to comply with our compliancerequirements under specific circumstances, he/she finds violations of relevant laws, regulations, and our compliancerequirements by partners or colleagues, or Farasis Energy or any individual is subject to external compliance investigations,inquiries, or whistleblowing.In the Anti-Fraud Management System, we explicitly encourage real-name whistleblowing. Employees and all social parties thathave direct or indirect business relationships with us can report suspected fraudulent practices to our Audit and Internal ControlDepartment through various channels such as hotline, e-mails, letters, or face-to-face meetings.We keep whistleblowers’ identities, contents of reports, the information about investigators, witnesses, and investigationsconfidential. All shall hold back or prevent any whistleblowers from reporting under any excuse or by any means, or takerevenge on whistleblowers, investigators, witnesses, or their relatives. The employees are rewarded, as long as they reportnoncompliance behaviors or o?er compliance recommendations and thus avoid signicant losses for us.In the Ethical Conduct Management Procedures, we explicitly require absolute condentiality of the whistleblower informationand deem any revenge against employees as a result as the most serious disciplinary violation in Farasis Energy. If we discoverrevenge against whistleblowers, we take disciplinary measures such as education, apology, warning, and dismissal as the casemay be. In case of a signicant impact, we investigate legal responsibilities according to law.
Acceptance of External SupervisionProportion of operationpremises subject to corruptionrisk assessment
%
Proportion of operation premisessubject to internal audits onbusiness ethics issues
%
Proportion of suppliers andcontractors participating in anti-corruption and anti-bribery training
%
2021
63.78
%2022
85.59
%2023
88.68
%
Proportion of employees participating in anti-corruption and anti-bribery training
2021
Time2022
Time2023
Time
Total number of anti-corruption and anti-bribery training for directors and o?cers
2021
Time2022
Time2023
Time
Total number of anti-corruption and anti-bribery training for general employees
20213,039
Person2022
6,114
Person2023
5,811
Person
Total number of employees participating in anti-corruption and anti-bribery training
In case of any known or suspected violation of our compliance policies, applicable laws,regulations, or other requirements, regardless of its severity, any department, employee, orbusiness partner may consult or report to the relevant compliance department/authorities undertheir real names or anonymously or through one of the following channels:
Hotline: 0797-7329850E-mail: compliance@farasisenergy.com.cn
Reporting Channels
Due to the presence of shift workers at the production and operation sites, the implementation and organization of integrity compliance training cannotensure that all employees are fully covered.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
3738Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Embracing the Era of Tax Transparency
Perfecting Tax Compliance Management
Enhancing Tax O?cials’ Professional SkillsFarasis Energy acts in strict compliance with all applicable tax laws and regulations in terms of tax declaration, tax payments,tax accounting, and business decisions, as well as daily operations. Our goal is to build a tax management team that is honest,trustworthy, professional, and intelligent. This team makes tax decisions reasonably, controls tax risks, improves managemente?ciency, and e?ectively supports business operations.Our Headquarters has established a Tax Shared Service Center (SSC) to centrally manage tax-related business and designatedfull-time tax accountants to each key subsidiary’s finance department for local tax-related matters. Since its establishment,Tax SSC has released tax-related internal control management systems such as the Invoice Management System, Systemfor Managing Related-party Transactions, and Tax Management System. It updates the above systems according to theimprovement of applicable tax laws and regulations.In 2023, Tax SSC established and improved the Group’s tax-related electronic database, centrally managing tax information andscal data for each legal entity to facilitate tax data analysis and external audit coordination.
We continuously enhance the systematic management of the entire process related to tax matters and strengthen the
competency training of tax professionals. In 2023, we participated in a series of training seminars hosted by professional
organizations, closely following and actively studying the latest scal and tax regulations issued by the government to ensure
compliance of our tax-related operations. These training seminars covered topics such as "BEPS 2.0 Dual-Pillar International
Tax Rules", "Management of Transfer Pricing Risks", "Insights into Tax Incentives for Stabilizing Employment", "Discussions on
Supply Chain Trade Barriers", "Reform of the O?shore Passive Income Exemption System in Hong Kong", and "Updates on the
Policy of Additional Deductions of Research and Development Expenses".
Structure and Functions of Farasis Energy Tax SSC
Tax SSC
TaxManagementDepartmentfor Domestic
Operations
TaxManagementDepartment for
InternationalOperations
●The Group’s tax-related systemand process standardization
●The Group’s tax forecast andanalysis report
●Tax-related audit coordinationand risk response
●The Group’s tax planning
●Tax calculation for sites
●Tax declaration for sites
●Tax settlement for sites
●Invoice certication and issue
●Export rebate management
●Management of governmentsubsidy materials
TaxManagement
Team
TaxDeclarationTeam
BillManagementTeam
●The Group’s tax evaluation andself-inspection
●The Group’s related-partytransaction management
●Tax policy research andtraining
●Deferred income managementfor sites
●Maintenance of relations withtax authorities for sites
●Filing and declaration of nontradeforeign exchange payment
●Tax-related investigation onsitecoordination
●Collection of declaration materials from overseas related companies
●Overseas tax policy research and planning
●Response to audits of overseas related companies
●Coordination on tax-related matters of overseas legal entities
We strictly comply with applicable laws, regulations, and international standards on anti-monopoly or anti-unfair competition,including the Anti-monopoly Law of the People's Republic of China, Anti-unfair Competition Law of the People's Republicof China, and Anti-unfair Competition Law of the People's Republic of China. We have developed the Anti-monopoly andCompliance Management Measures, adhering to the principles of "fairness, justice, and win-win cooperation" to create a fairbusiness environment.We effectively identify and objectively evaluate customer requirements and refrain from using unfair means or engaging invicious competition to attract customers. When accepting orders, we adhere to the Order Review and Control Proceduresand we do not conceal our existing business capabilities or provide any false information, ensuring business integrity andtransparency.In 2023, we did not encounter major incidents of suspected monopoly or unfair competition.
Fair Dealing, Advertising, and Competition
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
3940Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Showcasing Determination onGreen Development throughLow-carbon Practices
[Feature] Embracing New Trends in Green DevelopmentAdvancing E?cient Resource UtilizationCommitted to Natural Ecosystem Conservation
Our Progress:
Every employee bears in mind our mission of "provide clean energy, build an intelligentworld". Farasis Energy actively address climate change. We strive to improve ourmanagement of energy, water resources, wastewater, waste gas and solid waste, thus toexplore and provide eco-friendly green products and services.Our Performance:
We completed the ISO 14064 certication for our annual corporate carbon emissions bya third-party certication agency for two consecutive years.For three consecutive years, specic products have passed the third-party certication of"carbon neutral production”.The Ganzhou site achieved 100% renewable energy use in 2023, and was certied toISO14068 standard.100% of sites have o?cially passed the ISO 14001 environmental management systemcertication.We invested CNY 8.338 million in environmental protection and energy conservationprojects.We store and treat 100% of solid and liquid hazardous waste according to regulatoryrequirements.All sites managed wastewater, waste gas and solid waste effectively, and we did notreceive any environmental complaints or punishments from regulators.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
Response to Climate Change
Green development represents an imperative solution to overcome resource and environmentalconstraints, explore positive business transformation, and achieve both sustainability and high-quality growth. It is a general trend of globalization. We are committed to this vital task, harnessinginnovative and responsible green practices to support carbon neutrality and usher in a new era ofeco-friendly development.
Embracing the novel development philosophy, we view carbon peaking and carbon neutrality ascritical drivers for enhancing the quality of our development. Leveraging international standards likeISO 14064, ISO 14067, ISO 14068, and the GHG Protocol, we adopt scientic and standardizedapproaches to managing greenhouse gas emissions, product carbon footprints, and carbonneutrality in specic production processes. We actively promote the establishment of an energymanagement system aligned with ISO 50001, embracing the latest trends in green development.
Implementing Climate GovernanceWe have integrated climate risk control and climate opportunities into our operational processes,establishing a comprehensive mechanism for risk identication and response. This has signicantlystrengthened our governance capacity and adapt to climate change.
RiskDescription
RiskDescription
Counter-measures
Counter-measures
Financial
Impact
Financial
Impact
Transition
Risks
Policy and Regulation Risks
Technology
Market
●
The carbon emissions trading market officially launched in 2021. Ourcarbon emissions exceed the benchmark set by the Chinese governmentfor the inclusion of the electricity industry in the national carbon marketpilot program. There is a possibility that we may be included in the carbonemissions control system in the future.
●
The EU o?cially adopted the EU Battery and Waste Battery Regulations inAugust 2023. Given that Europe is an important overseas market for ourcompany, the introduction of the Regulations may have a certain impact onour exported products.
●We have established an EU Battery Regulations Taskforce to assess the impact of the EU batteryregulations (including substances restricted by the EU) on our mass-produced products and newprojects, and formed targeted countermeasures to ensure the normal progress of related projects.
●We extend the calculation of our product carbon footprints and invite third-party companies for dataaccounting and calibration, ensuring data accuracy.
●We actively participate in the drafting and formulation of industry energy and carbon-related standardssuch as the Implementation Guide for Energy E?ciency Benchmarking of Battery Industry, the CarbonEmission Accounting Standard for the Whole Life Cycle of Power Battery, and the T SQIA 062-2023 Technical Requirements for Carbon Footprint Assessment of Rechargeable Industrial Batteries,establishing a comprehensive industry carbon emission accounting standard.
●The increasing demand for low-carbon technologies may give rise to more advanced and emerging batterytechnologies, bringing uncertainty to the development and competition of our battery technologies.
●
More companies have started to pay attention to Scope 3 emissions from externally purchased goodsand services. The requirements for low-carbon footprint and sustainably certified products are alsorising since customers’ demand for low-carbon products and procurement choices become increasinglystringent.
●The cost of research and development for low-carbon technologies increases.
●The introduction and retrot of intelligent equipment and facilities result in higher costs.
●Sales decline due to the failure to meet customers’ demand for low-carbon products.
●We advance the construction of intelligent plants and continuously invest in solar PV power generationprojects. Introducing intelligent equipment throughout the cell and module manufacturing process, weintegrate conventional industrial control technology with Internet IT technology, industrial IoT technology,and big data technology.
●We promote the industrialization of our super pouch solution (SPS) for large pouch power batteries,which is expected to increase the system volume packaging efficiency by over 30% and reduce thenumber of structural components in the battery system by 50%. We have already developed and appliedthis solution to multiple passenger vehicle projects.
●We strengthen our green research and design, increase the proportion of NMP recycling, and reduce theuse of glue in our module design to facilitate easier recycling and disassembly.
●We advance the process of using circular packaging for our raw materials and replace cartons anddisposable PVC pallets for our PCBA parts with recyclable plastic boxes and PVC pallets.
●We increase the proportion of renewable energy, and the Ganzhou Site has achieved 100% renewableenergy use in 2023, strengthening low-carbon manufacturing capacity.
●The cost of carbon emissions varies with the uctuations of market carbonprice.
●The cost of battery carbon footprint accounting increases.
RiskDescription
FinancialImpact
Counter-measures
4241Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
[Feature] Embracing New Trends in Green Development
Appendix
AppendixShaping Corporate Governance with
Compliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
Physical
Risks
Intense natural factors
●Extreme weather disasters such as oods and heat waves can potentially impact our production, damagecritical production processes and equipment, and even a?ect the health and safety of our employees andworkplaces.
●
Typhoons, oods, and droughts lead to decreased capacity.
●
We obtain ISO 14001 environmental management system certication and improve our management ofre safety facilities, hazardous waste, special equipment, construction, and sewage treatment plants.
●We actively establish the ISO 50001 system to advance both technological and management-basedenergy conservation e?orts.
●We have also established an emergency command center to standardize and normalize the managementof accidents such as res, typhoons, and oods.
●We enhance logistics efficiency by optimizing routes to reduce the number of dispatch and developcoordinated shipping plans. By changing the original shipment address from an external warehouse todirect shipment from the factory, we further reduce the environmental impact of our logistics operations.
Green and Low-carbon Manufacturing
We establish professional and stable energy conservation organizations at both Group and site-levels. By introducing the ISO50001 system, we establish an energy management mechanism and continuously conserve energy, reduce emissions, andoptimize the energy structure.In 2023, we completed the ISO 14064 certification for our annual corporate carbon emissions by a third-party certificationagency for the second year. We continuously increase the proportion of renewable energy consumption through PV power,procurement of green certicates, and participation in green power transactions.In Ganzhou, the PV project with a total installed capacity of 5.99 MW was initiated in 2022 and connected to the grid in 2023.In 2023, the PV power generation reached 4.9639 million kWh. At the same time, Ganzhou Site actively participates in market-based green power trading, purchasing and consuming 17,883,000 kWh of green power, and purchased international greencerticates for the remaining electricity to achieve 100% use of renewable electricity.The last phase (8.1 MW distributed PV system) in the Zhenjiang Site was o?cially connected to the grid for power generationin January 2023. The current PV system in the site has an installed capacity of 31.5 MW, with 32.166 million kWh of PV powergeneration in 2023. Meanwhile, in the Zhenjiang Site, the specic production line has delivered specic products of “CarbonNeutral Production” for three consecutive years.With a focus on “green transformation”, we vigorously promote the green upgrading and renovation of production equipment,creating green and energy-efficient plants. We not only oversee and regulate the power consumption of air conditioningsystems, road lighting xtures, landscaping elements, and other essential facilities across our production facilities, warehouses,and administrative o?ces, but we also strive to maximize the energy e?ciency and conservation benets of our productionequipment.
Type of ClimateOpportunities
DescriptionFinancial ImpactLow-carbonproducts andservices
? Vehicle electrication
is a crucial path for thetransportation industry toachieve emission reduction,and electric vehicles havebecome the primary solution forthe industry to reduce carbonemissions.
? The sales
increase.
? We increase investment in research and
development, including market research,prototype design and testing, and thedevelopment of new technologies or processes.? We upgrade equipment, tools, and technologiesand implement quality control measures toenhance product quality and performance.Use of energyfrom low-emissionsources
? Investing in and developing solarPV power generation not onlyreduces the carbon emissionsgenerated by our electricityconsumption but also lowers thecost of purchasing carbon creditssuch as CCER and I-REC.
? The operatingcosts decrease.? The asset valuesincrease.
? We constantly optimize our energy structure and
increase the proportion of renewable energy use.In 2023, the Ganzhou Site has achieved 100%renewable energy use through green power trading,photovoltaic power generation, green certicatetrading and other measures, and the Zhenjiang Sitehas achieved the renewable electricity usage ratioof 45% through photovoltaic power generation andgreen certicate trading.Low-carbonproductionprocess
? Upgrading the equipment in
plants or production processesfor energy e?ciency not onlyimproves the overall energye?ciency of production but alsoreduces energy procurementand usage, thereby loweringdirect operating costs.
? The productioncosts decrease.? The asset valuesincrease.
? We promote energy-saving technologicaltransformation, and implement energy-savingprojects such as energy-saving transformationof rotary dehumidiers, air compressorgrid connection, and refrigeration systemtransformation. The annual investment cost ofenergy-saving renovation projects reached CNY
4.5107 million.
Financial Impact
RiskDescription
Counter-measures
Financial
Impact
Investment costs for energy-saving renovationprojects
451.07
10,000 CNY
4443Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
In future, we will, based on the development and planning of our main business, timely formulate a carbon peaking and carbonneutrality strategy and targets that align with international mainstream initiatives and standards such as SBTi. We will exploreprojects such as carbon o?set and forestry carbon sink.
Key Energy Conservation Projects in 2023
ProjectSite
Ganzhou Site
Zhenjiang
Site
Benets
●We implement an energy consumption managementplan for production lines and promote the installationof basic energy meters at production lines in cellmodule plants.
●We connect the air compressors of the pilot line tothe grid and reduce the number of air compressorsstarted after the grid connection, thus reducing powerconsumption.
●We implement the stepped utilization of steamcondensate and transform the air conditioning boxesof seven dehumidiers in a step-by-step mannerto utilize the heat of condensate and reduce steamconsumption.
●At the power station on the site, we carry out anenergy conservation project for the central air-conditioning intelligent control system. By integrating achilling station control system, we incorporate variablefrequency drives and sensors in the hardware andinstall intelligent control software to achieve automaticcontrol of the main chiller system.
●We use 18W high-e?ciency energy-saving LED lightsin plants to replace the original 18W/22W lights ofinferior brands, with a lifespan of up to 30,000 hours.
●We combine the loads of two transformers in the high-voltage distribution room into one transformer foreconomical and e?cient operation and deactivate low-load transformers to reduce no-load losses.
●
It achieves automatic reading of energyconsumption meters and early warning, conductsa detailed analysis of production line energyconsumption, evaluates equipment status andenergy usage, and monitors equipment energyconsumption and degradation. These e?ortssignicantly enhance the energy managementof our production line equipment.
●It is expected to save CNY 855,000 in powercosts annually.
●The predicted total added income for the nextthree years is about CNY 7.1796 million.
●It is expected to save 10.32 million kWh ofpower annually and about CNY 7.22 million inpower costs.
●It is expected to save CNY 0.45 million in powercosts.
●It is expected save CNY 0.7 million in powercosts.
●
We carried out the waste heat recovery transformationof the regenerative air of the rotary dehumidier torecover the heat for fresh air preheating.
●We carried out special inspection of air leakage in thecompressed air system of the factory and dealt with itin time to reduce air leakage waste.
●For the high-temperature surface of local equipment,the insulation cotton was wrapped to reduce heat lossand saved the energy consumption of air conditioningand refrigeration in the workshop.
●
It is expected to save CNY 229,000 per unit peryear in revenue after the equipment modicationis completed.
●It is expected to save about CNY 221,000 inenergy consumption costs of air compressors.
●We saved about CNY 89,000 in power costs.
Greenhouse Gas Emissions
Energy Management
Unit: tCO
e
Unit: tCO
e/CNY 1 million of operating income
Unit: tce/CNY 1 million of operating income
Total emissions of Scope 1greenhouse gas
Emission intensity of Scope 1greenhouse gas1
Total energy consumption
2021
2021
Total emissions of Scope 2greenhouse gas (location-based)
Emission intensity of Scope 2greenhouse gas
Energy consumption intensity
2022
2022
Total emissions of Scope3 greenhouse gas
Emission intensity ofScope 3 greenhouse gas
2023
2023
Total emissions of greenhouse gas (Scopes 1 and 2)
Greenhouse gas emission intensity (Scopes 1 and 2)
8.07
65.61
20212021202220222023202358,412
102,88
93,987
130.16
73.22
36.12
0.54
75.49
36.66
0.26
22.35
60.08
22.61
PV power generation/kWh
9,625,760.0021,040,600.00
37,129,897.40
16.69
8.88
5.72
Emission intensity of Scope 1 greenhouse gas = Total emissions of Scope 1 greenhouse gas ÷ CNY 1 million of operating income, the same below.
Energy consumption intensity = Total energy consumption ÷ CNY 1 million of operating income
4645Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
28,242.50
228,049.67
455,577.62
256,293.00
418,505.906,280.48
874,815.60
424,786.38
4,328.28
367,329.06
987,510.47
371,657.34
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
R&D and Application of Green ProductsCollaboration with Partners to Promote Green Development
Seeking technical innovations to promote green development, we focus on three major areas to advance the R&D andapplication of green products.
Developing single-cell No ThermalPropagation tofurther improve safetyperformance.
Enhancing specic energy,industrializing cells with acapacity of 400 Wh/kg, anddeveloping prototypes with acapacity of 500 Wh/kg.
Expanding productcycle life and improvingeconomy.
Farasis Energy actively participated in the drafting and formulation of industry energy and carbon-related standards, such asthe Implementation Guide for Energy E?ciency Benchmarking of Battery Industry, the Carbon Emission Accounting Standardfor the Whole Life Cycle of Power Battery, and the T SQIA 062-2023 Technical Requirements for Carbon Footprint Assessmentof Rechargeable Industrial Batteries, to strengthen its competitiveness in energy and carbon peaking and carbon neutralitybusiness.
Case
Case
Case
SPS Helps to Further Increase the Capacity of New Sites
Promote wireless charging new energy vehicles, and practice green mobility
Supporting Green Aviation with Innovative Battery Technology
To accelerate the implementation of the new technology of SPS to meet customer product needs, we will invest in theGanzhou 30 GWh New Energy Battery Project (Phase I) and the Guangzhou 30 GWh Power Battery ManufacturingSite Project (Phase I). We will build core high-quality power battery capacity based on our latest SPS technology inthese projects with a total investment of about CNY 4.3 billion.SPS products feature advantages such as high performance, low cost, and high adaptability. The manufacturing of cellsand battery systems exhibits characteristics of high e?ciency, low investment, and environmental friendliness. In termsof driving range, charging e?ciency, cost reduction, e?ciency enhancements, and compatibility with vehicle models,these products can better meet customer needs, enhance service e?ciency, reduce production costs, and acceleratecapacity implementation, thus improving our economic benets and supply capabilities.
The 19th Asian Games grandly opened in Hangzhou on September 23, 2023. During the Games, JMEV's "Yi" with awireless charging system appeared at the State Grid Hangzhou Xiaoshan Asian Games Village Charging Station. Thisfirst pure electric coupe of JMEV adopts Farasis Energy's high-performance NMC pouch power battery to achievean ultra-high discharge rate, enabling 5.8s super dual-motor acceleration and 170 kW powerful performance andcontributing to the rapid development of China's new energy vehicles.
Air mobility and transportation have been signicant sources of high carbon emissions in the transportation industry, inresponse to which, Farasis Energy has been strengthening technology input to advance the R&D progress of electricaircraft and ensure technology security. The safety of the NMC pouch battery cell launched by Farasis Energy issuperior to the relevant national standards and requirements and has passed safety tests required in standards suchas FAA AC-20-184/RTCA DO-311. The battery system adopts "immersed" management and comprehensively monitors
JMEV “Yi”State Grid Hangzhou Xiaoshan Asian Games Village Charging
Station
the battery pack. It can achieve no open ames within 24 hoursafter thermal propagation is triggered. Furthermore, the AI BMScan have a dual backup design that ensures normal operationeven in case of failure. In terms of safety materials, the phasechange material independently developed by Farasis Energyis characterized by ultra-low thermal conductivity, high specicheat capacity, high phase change enthalpy, and light weight,and its strong heat absorption e?ciency can reduce the surfacetemperature of thermal propagation cells to below 100°C formore than ve minutes.
Innovation in Cells
Innovation in Recycling
Innovation in Systems
Innovation in Manufacturing
The industry's rst module-free pouch integrationtechnology
●Horizontal arrangement of cells, with a volumeutilization rate of 75%
●One type of cell compatible with all series ofpassenger vehicles
●Lightweight design with a reduction of systemcomponents by 50%
●Proprietary thermoelectric separation technologyfor great safety protection
●AI BMS3.0 cloud-ground big data in combinationwith intelligent control
●Composite use of high-e?ciency liquid coolingplates and heat conduction sheets, increasingheat dissipation e?ciency by 4 times
The industry's rst module-free pouch integrationtechnology
●Leading chemical materials and all-tab design,ensuring the superiority of cells
●Fully compatible with all chemical materialsystems
●
2.2C-6C ultra-high charging/discharging rate
●Charging for 10 minutes, with a range of 400 kmavailable
●Semi-solid and solid electrolytes, signicantlyenhancing intrinsic safety
The industry's rst module-free pouch integrationtechnology
●Signicant improvement in the investment return ofpouch cells
●Reduction of equipment investment by 50%
●Reduction of plant area by 60%
●Reduction of manufacturing costs by 35%
●Reduction of energy consumption costs by 30%
The industry's rst module-free pouch integrationtechnology
●Innovative direct recycling technology
●Utilization rate of recycled cathode materialsincreased to over 99%
●Direct and complete restoration of the originalchemical and physical composition of high-qualitycathode materials while maintaining their crystalstructures
4847Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common Development
Showcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
4950Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon Development
Showcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsCombination of Optimization MeasuresFarasis Energy exercises scientific management and provides green energyto protect the environment and build a better life, with its environmentalmanagement system continuously improved.Farasis Energy has established environmental objectives, targets andmanagement programs as well as procedures and systems including theEnvironmental Factor Identification and Evaluation Management Procedures,Management Procedure of Water, Gas and Noise Pollution, Waste ManagementProcedure, Management Procedure for Energy Resources, EnvironmentalManagement Scheme, Management System of Sewage Treatment Station,Management System for the Simultaneous Design, Construction and Operationof Occupational Health Facilities in Project Construction, and EHS ResponsibilityManagement Procedure. Through continuous monitoring and periodic review,Farasis Energy optimized hazardous waste management, sewage treatmentstation management, and etc., with cases including regular on-site inspectionsby the safety and environmental audit team established by the EHS Departmentand the customer, noise reduction around the stereoscopic warehouse of theGanzhou factory, and special inspections organized by the EHS ManagementDepartment, which e?ectively improved the EHS management performance.
澳
| Certificate CN11/30688.00 | 澳 |
| 澳 | |
| The management system of | 澳 |
| Farasis Energy (Ganzhou) Co., Ltd. Farasis Energy (Zhenjiang) Co., Ltd. | |
| 澳 | |||
| 澳 | 澳 | ||
| Unified Social Credit Code: 913607006984663896 | |||
| Business Registration Address: West Side of Caidie Road and North Side of Jinling West Road, Ganzhou Economic Technology Development Zone, Ganzhou City, Jiangxi Province, P.R. China | 澳 | ||
| Business Operation Address: West Side of Caidie Road and North Side of Jinling West Road, Ganzhou Economic Technology Development Zone, Ganzhou City, Jiangxi Province, P.R. China | 澳 | ||
| has been assessed and certified as meeting the requirements of | 澳 | ||
| ISO 14001:2015 | 澳 | ||
| 澳 | |||
| For the following activities | 澳 | ||
| Design and manufacture of lithiumion batteries | 澳 | ||
| 澳 | |||
| 澳 | |||
| This certificate is valid from 23 June 2023 until 22 June 2026 and remains valid subject to satisfactory surveillance audits. | 澳 | ||
| Issue 2. Certified since 22 June 2011 | 澳 | ||
| Multiple certificates have been issued for this scope, the main certificate is numbered CN11/30688.00 | |||
澳
| 澳 | |||||||
| 澳 | |||||||
| 澳 | 澳 | ||||||
| Authorised by | |||||||
| Jonathan Hall | |||||||
| Global Head - Certification Services | 澳 | ||||||
| SGS United Kingdom Ltd | |||||||
| Rossmore Business Park, Ellesmere Port, Cheshire, CH65 3EN, UK | 澳 | ||||||
| t +44 (0)151 350-6666 - www.sgs.com | |||||||
| 澳 | |||||||
| 澳 | 澳 | 澳 | 澳 | ||||
| 澳 | |||||||
| This document is an authentic electronic certificate for Client’ business purposes use only. Printed version of the electronic certificate are permitted and will be considered as a copy. This document is issued by the Company subject to SGS General Conditions of certification services available on | 澳 | ||||||
Terms and Conditions | SGS.
rized alteration, forgery or falsification of the content or
| appearance of this document is unlawful. |
| 澳 | 澳 | |
| Page 1 of 2 | ||
Advancing E?cient Resource Utilization
Water Resources Management
Sustainable Packaging
Farasis Energy continues to deepen green management, adopts energy and resource control measures, and systemicallyoptimizes management.
All sources of water for Farasis Energy are from municipal water supplies. In terms of water resource management, we usesteam thermal energy to replace electricity for heating, with steam condensate recovery devices added to recover condensateand steam for reuse and reduce the waste of water and steam resources.In 2023, Farasis Energy was not involved in water resource impacts caused or facilitated by water withdrawal, consumption,and discharge or directly produced by its operations, products, or services through business relationships.
Packaging material data comes from the incoming volume of Ganzhou and Zhenjiang site. The recyclable packaging at Ganzhou site consists of materialracks, while that of Zhenjiang site consists of material racks, plastic boxes, and pallet collars. Zhenjiang site increased the use of small packaging withexport volume in 2023, replacing the original large packaging and leading to an increased carton packaging and decreased proportion of recyclablepackaging consumed.
Proportion of recyclable packaging used at Ganzhou site = recyclable packaging consumed ÷ (consumption of recyclable packaging + paper boxconsumed)
Proportion of recyclable packaging used at Zhenjiang site = recyclable packaging consumed ÷ (paper box + wooden box + consumption of recyclablepackaging)
Farasis Energy incorporates environmental considerations into its dailypackaging and transportation logistics management and keeps optimizingand improving packaging, to improve loading rates and reduce logistics costs.Farasis Energy increases packaging recycling mainly by using recyclablepackaging materials such as material racks, plastic boxes, and pallet collars,and reduces the use of disposable packaging such as cartons, wooden boxes,foam boxes, and plastic wrap. In 2023, with packaging recycling considered atthe packaging design stage, Farasis Energy eventually realized the transitionfrom paper packaging to recycled packaging. Among its products, wepackaged PCBA parts with recyclable plastic boxes and recyclable vacuum-formed trays, avoided single-piece packaging for battery packs, harness parts,and module end plates and promoted multi-piece packaging, to reduce theuse of plastic resources.In the meantime, Farasis Energy launched a packaging recycling project toreuse and recycle packaging from suppliers, with iron racks, plastic boxes,and other circular packaging currently used as outer packaging for domesticcustomers.
Zhenjiang Site
Water consumption intensity
123.67
Tonne/perCNY 1 million of operatingincome
Total consumption of recycled water611,234.60
TonneWater consumption
2,032,662.75
Tonne
In 2023
The proportion of the Farasis Energy ‘s sites with ISO 14001 environmental management system certication reaches 100%,and the sites fully implement the requirements of ISO 14001:2015 issued by the International Organization for Standardization.Furthermore, the sites strengthen environmental protection training, covering environmental protection laws and wastemanagement requirements, for all new employees. In 2023, 100% of employees received environment-related trainings.For more information about environment management, please refer to our Environmental Management Statement.
Carton
570,868
Wooden crate43,577
Proportion of recyclablepackaging used
2.30
%
Recyclable packagingused14,471
Ganzhou Site
Carton used42,966
Proportion of recyclable packaging used
56.76
%
Recyclable packaging used56,408
Set
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
5152Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Committed to Natural Ecosystem Conservation
Management of Wastewater, Waste Gas and Solid Waste
Farasis Energy fully complies with all applicable environmental laws and regulations and industry standards, such as the Law ofthe People's Republic on Prevention of China and the Control of Environmental Pollution Caused by Solid Waste, AtmosphericPollution Prevention and Control Law of the People’s Republic of China, Integrated Emission Standard of Air Pollutants,and Emission Standard of Pollutants for Battery Industry, as well as local laws, regulations, and implementation rules andregulations.
For wastewater, waste gas, noise, and solid waste generated during production and operations, we have a management systemin place and conducts regular monitoring, to ensure that wastewater, waste gas, and noise are discharged or emitted and solidwaste is disposed of according to standards. Farasis Energy also has an environmental self-monitoring program in place andentrusts a qualied third-party monitoring agency every year to regularly monitor wastewater, waste gas, and noise.Wastewater Management
Waste Gas Management
The wastewater generated from sites includes domestic sewage and production wastewater. We separate rainwater and sewagefor drainage, in which, domestic sewage and production wastewater are collected and treated till they meet discharge standardsbefore being discharged, to meet the requirements of the Emission Standard of Pollutants for Battery Industry.
Farasis Energy emits waste gas generated during its production and operation after treatment by the waste gas treatmentfacilities to meet standards and monitors waste gas regularly. We regularly inspect and maintain waste gas treatment devicesand, as required by regulations, regularly monitors the organized emissions of VOC exhaust funnels in the factory area, andunorganized emissions of VOCs at the factory boundary.In terms of preventing air pollutant emissions, Farasis Energy's NMP (N-methyl pyrrolidone) waste gas recovery and treatmentsystem adopts a "condensation + three-layer water spray" recovery process with treatment e?ciency of above 98%, and weemit other waste gases externally through workshop ventilation treatment facilities. We regularly detect factory boundary noiseand reduce the impact of noise on the surroundings through methods such as wall sound insulation and range attenuation.In terms of reducing dust and particulate matter emissions, Farasis Energy's areas that generate dust are mainly the mixingprocess areas where we use negative pressure feeding technology to reduce dust generation and emit dust according tostandards after treatment by dust removal equipment.In 2023, Farasis Energy’s organized NMP waste gas emissions met the emission standard required in the Emission Standard ofPollutants for Battery Industry (GB30484-2013), with NMP waste gas less than or equal to 50 mg/Nm
.
Unit: KilogramVolatile organic compounds
(VOCs) emissions
1,342.60
Nitrogen oxides(NOx)
104.60
Particulate matters(PM)
104.00
Sulfur oxides(SOx)
793.10
Total waste gas emissions
85,717.35
10,000 m
Waste gas emission intensity
5.22
10,000 m
/CNY 1 million of operating income
Total wastewater discharge
279,046.00
Tonne
Wastewater discharge intensity
16.98
Tonne/per CNY 1million of operating income
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
5354Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon Development
Showcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsCaseExploring NMP Recycling to Reduce Product Environmental Impact
N-methyl pyrrolidone (NMP) is a solvent commonly used in lithium-ion battery production to dissolve lithium compoundand polymer electrolyte so that the binder fully comes into contact with other substances and is evenly distributed.Lithium-ion batteries account for more than 70% of NMP product applications, and the recycling of NMP not only helpsto reduce costs but also plays a positive role in the product's environmental footprint.Farasis Energy recovers NMP volatilized from the cathode coating process through our NMP recovery device, andthe recovered NMP is returned to its original manufacturer. The NMP manufacturer then uses distillation equipment topurify and process the waste liquid, so as to ensure that the parameters of the puried NMP are consistent with thosesynthetic new ones, and supplies them back to Farasis for reusing in our production lines.
Biodiversity Protection
Farasis Energy complies with relevant laws, regulations, and policies, such as the Law of the People’s Republic of China onEnvironmental Impact Assessment, Opinions on Further Strengthening Biodiversity Protection, Soil Pollution Prevention andControl Law of the People’s Republic of China, and Regulation on Groundwater Management, as well as local laws, regulations,and implementation rules and regulations.Currently, Farasis Energy has no operational sites owned, leased, adjacent to, protected areas and areas of high biodiversityvalue outside protected areas. In 2023, Farasis Energy had no significant impacts of activities, products and services onbiodiversity.
Waste Management
Farasis Energy collects the generated solid waste bycategories and first transfers non-hazardous wasteto a dedicated waste bin for storage managementbefore handing the waste to a qualied waste disposalcompany for disposal. For hazardous waste, FarasisEnergy has a management plan for hazardouswaste declaration in place, linking waste generation,storage and outbound transfer to the environmentalprotection information management system, and wecommission a qualied disposal agency for compliantdisposal of all wastes. Furthermore, we strictly complywith national laws, regulations, and standards forhazardous waste management, regularly superviseand inspect the management of hazardous wastewarehouses, and urge rectication.For recyclable wastes, such as scrap metals andwaste cartons, Farasis Energy commissions agencieswith technical capabilities to carry out comprehensiveutilization according to indirect procurementmanagement methods and bidding managementprocedure.
Posting of waste classication markings
Posting of hazardous waste classication markings
Total general
waste
7,922.69 Tonne
Total hazardous
waste
715.91 Tonne
General wasteintensity
0.48 Tonne/per CNY 1
million of operating income
Hazardous wasteintensity
0.04 Tonne/per CNY 1
million of operating income
Environmentalprotection costs
382.73 10,000 CNY
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
5556Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Our Progress:
Farasis Energy, one of the world's earliest companies to specialize in the NMC pouch batterytechnology, has successively passed performance certication by the United States Councilfor Automotive Research, the Federal Consortium for Advanced Batteries, and the SandiaNational Laboratories by virtue of its advanced scientific research capabilities and high-performance and high-safety products, with the quality of its pouch batteries recognized anda?rmed by electric aircraft enterprises, OEMs, and other customers.Our Performance:
1,483 R&D employees, accounting for about 22.6% of all employees.155 patents applied for this year, with a total of 485 patents applied for; 80 patentsgranted this year, with a total of 293 granted patents.51 quality-related procedure documents added and updated this year, with more than200 matching three-level system documents updated and added.987 customer complaints, with a closure rate of 95.85%.
Accumulating Strength andSeizing Industrial Opportunities
Creating Cutting-edge TechnologyOverall Consolidation of Quality ManagementFully Protecting the Rights and Interests of CustomersPerfecting Information Security Management
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
5758Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsCreating Cutting-edge Technology
Product Research and Innovation
Globalized Open Innovation System
Forward-looking and Leading Technology Reserve
Farasis Energy has been adhering to the development principle of focusing on technology R&D rst before pursuing capacityenhancement in the context of convergence of power battery technologies. Farasis Energy has been making systematic e?ortsin cells, system structure innovation, and the life cycle management system to ensure its deep involvement in global competition.In 2023, Farasis Energy integrated global resources to build a global R&D team of 1,483 members, with R&D employeesaccounting for 22.6% and the number of core technicians reaching 11, which provides support for stimulating Farasis Energy’snew quality productive forces.
In 2023, Farasis Energy restructured its R&D system and built R&D institute and Engineering institute dual-systems. This meansthe R&D institute is responsible for frontier technology R&D and transformation, while the Engineering institute is responsiblefor product development, product management and industrialization, and realized flexible integration of advantageous R&Dresources in China, United States, and Germany.Farasis Energy's Engineering institute has been recognized by authoritative institutions for its work quality and standard, andhas been assessed as a "Jiangxi Province New Energy Vehicle Lithium-ion Power Battery Enterprise Technology Center","Jiangxi Province New Energy Vehicle Power Battery Engineering Technology Research Center", and "Jiangxi Province HighSpecic Energy and High Safety Power Lithium Battery Engineering Research Center".Moreover, Farasis Energy fully utilizes external top resources and conducts R&D cooperation with international scientificresearch institutions, well-known organizations and industry top experts in power batteries, including international top researchinstitutions in lithium-ion battery, such as Argonne National Laboratory, Lawrence Berkeley National Laboratory, BerkeleyUniversity, Stanford University, Tsinghua University, Tongji University, Harbin Institute of Technology, Beijing Institute ofTechnology, and Jiangsu University, as well as international well-known enterprises, such as BASF, DuPont, and 3M, to ensurethe positive shift of products from "available" to "favorable".
Farasis Energy is one of the earliest companies in the industry to establish the ternary chemical system and pouch powerbattery structure as the direction of power battery R&D and industrialization. Its core technical team is developing cutting-edge technologies for future battery development and has made technological breakthroughs in the areas of semi-solid/solid-state lithium-ion battery technology, sodium-ion battery technology, high energy density power battery cell technology, and newchemical and electrochemical energy storage technologies.Under the technology development concept of “one generation in production, one generation in reserve, one generation indevelopment”, Farasis Energy industrializes its technical reserves and reserves multiple core technologies of next-generationpower batteries.
Going forward, Farasis Energy will continue to make breakthroughs in semi-solid/solid-state lithium-ion battery technology,sodium-ion battery technology, high energy density power battery cell technology, new chemical and electrochemical energystorage technologies, and cathode and anode material R&D technology.
CaseRegular Cooperation with Global Higher Education InstitutionsIn 2023, Farasis Energy launched a collaboration with Tsinghua University in the eld of safety technology developmentfor vehicle power batteries, with collaboration projects covering power battery system thermal runaway propagation andthermal management technologies, power battery anode lithium-plating detection and fast charging control technology,power battery safety early warning, fault diagnosis and life monitoring technology, solid-state battery technology,and power battery intrinsic safety and design technology, which has achieved notable results. The collaboration hasestablished a thermal propagation characteristic parameter database for our all cell series and built a module-levelheat-gas-electricity simulation coupling model with accuracy of 80% or higher, which reaches the industry's leadinglevel and provides a direction for the future development of sulde solid-state batteries.
Development of high-
performance LMFP
battery
Development ofpower batteries with
long cycle life
Sodium-ion technology
development and
application
Super pouch solution
(SPS)
Development oflithium-ion batteriesfor energy storage andmedium and heavycommercial vehicles
Increase in R&D expenses
25.25
%
R&D investment
7.49
CNY 100 million
In 2023
R&D expensesof total operating
revenue
4.56
%
This solution has entered the stage of industrialization and is expected to improve thevolumetric cell-to-pack ratio by more than 30% and reduce the number of structuralcomponents in the battery system by 50% compared to conventional technology andsignicantly lower costs. We have already developed and applied this solution to multiplepassenger vehicle projects;Farasis Energy’s first global sodium-electric model equipped with the first-generationsodium-ion battery has rolled off the production line, and we expect costs to besignicantly lowered after the second-generation sodium-ion batteries mature and are putinto mass production, which will support the rapid promotion of new energy vehicles;Farasis Energy independently and innovatively developed lithium-ion batteries for energystorage and medium and heavy commercial vehicles have completed the pilot test andverication and are feasible for industrial applications;Our product has entered the stage of industrialization, with LFP cells having an energydensity of over 200 Wh/kg and industry-leading cycle life. When combined with SPStechnology, the product can support a range of 600 km on a full charge for completevehicles.This product is currently in development, and has energy density and cost advantagesover LFP batteries.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
5960Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality Environment
Accumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and ActionsSteady Advancement of Process InnovationFarasis Energy highly encourages employees to innovate by taking various measures and issues special rewards to inventionswith major technological breakthroughs assessed by its Patent Review Committee as S-level patents.We urge all employees to participate in process innovation, which has led to notable results in cell and module processimprovement. In 2023, Farasis Energy reduced costs by more than CNY 65 million through module process innovation.
Digitalization for Excellent DevelopmentFarasis Energy has built an information system covering R&D, procurement, production, quality, logistics and other businessprocesses, focusing on digital production, digital quality, digital logistics and digital maintenance to build a digital factory in an all-round way.
Cell process innovation project
Module process innovation project
Twin-screw slurry preparation
system for anodes
Rolling, slitting and die-cutting
integrationLaser welding equipment
developmentShortening of self-dischargestanding time
High-speed slurry preparationsystem for cathodes
Optimization of packdisassembly process
Optimization of air tightness
test processCooper bar voltage drop test
processOptimization of charge anddischarge tests
Optimization of tightening
process
This system integrates advanced technologies and concepts in the elds of automation, informatization,and digitalization and serves as a manufacturing management platform that combines automaticinformation collection and process visualization.We have fully integrated the ERP system and systems such as MES, WMS and PLM to realize information-based, digital, and intelligent management of the whole process.This integrated R&D management platform has functions including new product development, designsimulation analysis, process planning, and manufacturing simulation optimization, to realize designcollaboration, optimize products and production processes, and fully ensure continuous optimization ofproduct service and product use feedback.The platform enables scalable model building and extends to all levels of management in the company,ensuring real-time grasp and tracking of operation status by managers, and achieving real-time perceptionof and response to work e?ectiveness.
We have introduced intelligent equipment to the whole process of cell and module manufacturing torealize integrated molding of pouch lithium-ion power batteries, and we employ digital technologies inthe equipment manufacturing process to realize intelligent detection, intelligent judgment, intelligentprocessing, and intelligent storage.
Farasis Energy has achieved the integration and optimization of the whole process of R&D management, procurementmanagement, production management, energy management, environmental protection and safety, logistics and warehousemanagement, supply chain management, sales management, and etc. through intelligent factory construction, which promotesits intelligent manufacturing transformation and upgrading and signicantly improves the production e?ciency.
We have integrated conventional industrial control technology with IT, Industrial IoT technology, andbig data technology to complete the integrated control of the intelligent devices, industrial system, andinformation system, connecting and achieving intelligent management of the whole process of “rawmaterials → cells → module PACK → warehousing → sales”.
Equipmenthardware
levelEquipmentsoftwarelevel
Customizedi-Factory MES
systemGroupenterpriseresourceplanning (ERP)
systemProductlifecycle
management
(PLM) system
BI intelligentdecision-making
and analysis
platform
Interior View of Intelligent Manufacturing at Zhenjiang Site
Integrated Molding from Raw Materials, Cells to Pack
Inspection
Stacking
Assembling
Rolling and slitting
Testing
Coating
Packaging
Mixing
AutomationInformatizationIntellectualization
Advanced configuration in the industry, with 800robots in use; automated manufacturing of cells, withan automation rate of up to 98.5%Full realization of MES system, with informationtraceable for 20 yearsIntroduction of the IoT and big data into theintelligentmanufacturing system to realize intelligent detection,intelligent logistics, intelligent judgment, intelligentprocessing, and intelligent storage
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
6162Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Intellectual Property Protection
Optimizing Intellectual Property Management
Optimizing Intellectual Property Management Practices
In 2023, focusing on R&D and marketing tasks, Farasis Energy adjusted the ownership of the intellectual property managementdepartment and assigned dedicated personnel to conduct standardized management.
Farasis Energy has taken a number of measures to prevent and control intellectual property risks. On the one hand, westrengthen the monitoring and analysis of external information, and keep abreast of market dynamics and competitors; onthe other hand, we enhance the supervision and inspection of internal management to secure the compliance and legality ofintellectual property rights.
We are further committed to continuously improving the e?ciency of intellectual property work, optimizing the whole process ofpatent management, and realizing a rapid increase in patent term. We invested more professional intellectual property talentresources to keep intellectual property working more closely with the R&D.
Contribution to Industry ProgressWhile improving our innovation mechanism, we have actively participated in the formulation of industry-related standards, andpromoted the industry development and progress through good practices and knowledge sharing.
We restructured theIntellectual PropertyDepartment from the LegalCompliance Department tothe Engineering Institute,forming a research-centricorganizational structure;
Organizational structure
In terms of workow
We established andimproved an intellectualproperty managementsystem to form an “internaldrive”, and embeddedpatent work throughout theR&D lifecycle, especiallyin the R&D process, topromote R&D for patents;
Indicator incentives
To boost the quality ofpatent applications andencourage more activeparticipation, we o?eredR&D personnel higherlevels of patent rewardsin the industry as indexincentives.
Sponsors
Industrialstandards
Groupstandards
NameAlliance of Technological Innovationin Compulsory Resources RecyclingIndustryAlliance of Technological Innovationin Compulsory Resources RecyclingIndustryChina Industrial Association of PowerSources, SGSChina Electronic Energy SavingTechnology AssociationChina Electronic Energy SavingTechnology AssociationChina Electronic Energy SavingTechnology AssociationChina Electronic Energy SavingTechnology AssociationChina Industrial Association of PowerSources
China Energy Conservation Association,China Society of Technology EconomicsChina Automotive Battery InnovationAllianceGuangdong Technical Committee forStandardization of Power BatteriesShenzhen Quality Inspection Association
New Energy Vehicle Waste and Used Power Battery - LogisticsInformation Traceability Management Requirement
New Energy Vehicle Waste and Used Power Battery - Evaluation forLogistics Service Quality
Product Category Rules (PCR) for Power and Energy StorageBatteriesStandard for Pouch Lithium-ion Power Batteries
Guidelines for Carbon Footprint Evaluation of Lithium-ion BatteryProductsRequirements of the Greenhouse Gas Emissions Accounting -Lithium-ion Battery EnterpriseTest Methods for Energy E?ciency of Lithium-ion Battery Products
Implementation Guide for Energy E?ciency Benchmarking of BatteryIndustry - Part 1: General RulesImplementation Guide for Energy E?ciency Benchmarking of BatteryIndustry - Part 2: Battery ProductImplementation Guide for Energy E?ciency Benchmarking of BatteryIndustry - Part 3: Cathode MaterialImplementation Guide for Energy E?ciency Benchmarking of BatteryIndustry - Part 4: Anode MaterialImplementation Guide for Energy E?ciency Benchmarking of BatteryIndustry - Part 5: SeparatorCarbon Emission Accounting Standard for the Full Life Cycle ofPower BatterySpecication and Dimension of Power Battery Module for ElectricVehiclesGeneral Technical Requirement for Portable Energy Storage PowerSupplyTechnical Requirements for Carbon Footprint Assessment ofRechargeable Industrial Batteries
In 2023we applied for
patents, with a total of
patents as accumulated. There’re
granted patents this year, with a total of
granted patents patents as accumulated.We were awarded the titles of National Intellectual Property Advantage Enterprise andGanzhou Intellectual Property Advantage Enterprise.
We strengthen publicity and training on intellectual property protection. By working with local protection centers, externalspecialist agencies and industry associations, we carry out trainings and seminars on intellectual property protection, andpromote IPR-related legal knowledge to enterprises and the employees to enhance their legal and risk awareness.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
6364Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsOverall Consolidation ofQuality Management
Intensive Quality Management
Since its establishment, Farasis Energy has attached greatimportance to quality management and put product safety andquality rst. We have passed the ISO 9001 and IATF 16949 qualitysystem certification and UN38.3, CQC, ETL and other productcertifications, characterizing the quality management mode andmethod of Farasis Energy.
With the rapid iteration of technological development and the continuous improvement of customer requirements, we'remanaging the quality management system dynamically. In 2023, we updated the quality manual annually, added and updated51 procedure documents, and updated and added more than 200 third-level system documents to secure the product qualityimprovement.We fully implemented IATF16949 quality management system, including optimizing the control process of quality management,using quality management tools to prevent product quality hazards and risks, and improving the systematic total qualitymanagement.We continued to strengthen the construction of internal audit system, and set up the company-level professional internal auditteam for special audits during the year, including but not limited to the new production site put into operation, PPAP pre-audit,key customer visit pre-audit, and joint and special multiple-site audit, to ensure the implementation of quality management in allaspects.We introduced external professional resources with SGS, BV, TUV, VDA and other world-renowned third-party organizations toescort the improvement of the corporate quality management level.
Building a Quality Culture with Full Participation
Closed-loop Implementation of Improvement MeasuresIn the case of continuous improvement of the management system, we effectively promote the implementation of qualityimprovement measures.At Zhenjiang site, we built a failure analysis room of about 500 square meters, which was put into service in August 2023,basically realizing the failure analysis and validation inside and outside the factory. Since it was put into use, the analysis roomhas e?ectively supported the failure analysis and greatly reduced the duration of customer complaint analysis. It provides datasupport for risks such as foreign objects and R-angle damage in the process, and helps the Quality Management Departmentimprove its business in multiple dimensions.At Ganzhou site, we set up a series of key performance indicators for regular monitoring and evaluation, including productyield rate, product safety accident rate, and customer satisfaction. We conducted quality audits, made in-depth analysis of theproblems found, and carried out closed-loop quality management through the quarterly case sharing session on key issues andthe quarterly QCC results conference. In 2023, the rst time capacity (FTC) rate of PACK in Ganzhou Site exceeded 99%, whichis at the leading level in the industry.
The fundamental guarantee for continuous quality improvement comes from the improvement of quality awareness and activeparticipation of all employees. In 2023, we built a quality culture with full participation through training and cultural promotion.The Group organized company-level VDA 6.3&6.5 training in August 2023, covering personnel from relevant departments of thequality system. A total of 80 trainees obtained the VDA 6.3&6.5 internal auditor qualication, enhancing the e?ect of our productquality supervision.At Ganzhou site, the cumulative number of participants in the "Quality Month" reached 1,004 throughout the year. Ten qualitylectures invited industry experts, research institute doctors and internal trainers and attracted more than 1,000 participants. Weorganized a quality essay contest, and received 74 quality essays in total, demonstrating employees' commitment to quality anddedication. We launched quality incentive activities by setting the Monthly Quality Star Award (individual), Monthly Quality StarAward (team), and Monthly Quality Prevention Contribution Award. The number of annual quality incentive award recipientsreached 1,043 person times, and the cumulative incentive material bonuses were about CNY 160,000.
CaseDigital Solutions Help the Implementation of Quality Management throughout the Life CycleIn 2023, we introduced the QMS collaborative platform covering the whole product life cycle, and realized thefull implementation of the product life cycle quality management concept in practice, involving design quality,incoming quality, process quality, after-sales quality, and change management.Technically, QMS integrates WMS, MES, ERP, OA, and PLM, and realizes data statistical analysis, riskprole, application of lessons-learned, project status management, report presentation and other functionsthrough the structured functional design. We comprehensively improved the quality business process controlcapabilities, and helped improve both product quality and service quality.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
6566Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsCasePublicity Posters for Full Quality Participation
Product Safety and RecallIn terms of product recall, we conduct test analysis and formulate disposal measures for vehicle power batteries within the scopeof our recall in accordance with the Administrative Regulations on Recalls of Defective Automobile Products, the Measures forthe Implementation of the Administrative Regulations on Recalls of Defective Automobile Products, and the Regulations on theAnalysis and Management of Product Recall Parts, and level out to all projects in time. We had no recalls in 2023.With multiple e?orts, our product quality performance gained recognition from a number of OEMs and third-party agencies.
Fully Protecting the Rights and Interests ofCustomers
Constructing a Rapid Response Mechanism
Following up Customer Complaints in Closed Loop
Customer rst is not just a slogan, but a philosophy, an attitude and an action. It is woven into every aspect and detail throughoutthe work process of Farasis Energy.
We strive to build a rapid response mechanism. For the quality problems on the client side, we have formed communicationchannels like real-time online Teams meeting reporting between departments and customers, regular weekly meeting reportingsystem, SCQ special quality reporting, and 8D Steering meeting.Through various forms of reporting, we report the progress of customer complaint quality problem analysis and improvementmeasures timely to customers, solve client quality problems quickly and e?ectively, and improve product quality to customersatisfaction.
We set up a sound customer complaint and follow-up process, and standardize the process of handling customer complaints,involving Quality Department, After-sales Service Department, Material Control Department, Process Department, ResearchInstitute and other important departments. These e?orts are fundamental to solving relevant problems, to improve the productquality, and to increase customer satisfaction.
AnnualExcellentQuality Award
Annual QualityContributionAward ofSupply chain
Partners
NationalQuality LeadingEnterprise inthe New EnergyIndustry
National Quality
and IntegrityBenchmarkingEnterprise
Classication of customer
complaint
Customer feedbackand communicationconrmation
Containment measures
Entry and requisition ofcustomer returned productsFailure cause analysis andtemporary measures
Root causeanalysisand long-term actionformulation
Statistical analysis and continualimprovement of customer returned
products
Horizontal deployment andstandardization of long-term
measures
Statistical analysis andcontinual improvement ofcustomer return productsProcedure for Handling Client Complaints
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
6768Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Constantly Improving After-sales Service
In 2023, we improved the way of service satisfaction survey by turning the after-sales service satisfaction survey directly to car-owners, and enhanced the credibility and validity of the survey results to provide a basis for the evaluation of after-sales servicequality. Based on the survey results, we tracked and optimized the existing after-sales service model and time-to-service tofacilitate Farasis Energy 's after-market brand building.
CaseStrengthening the Collaboration between Automobile Enterprises to Improve the E?ciency
of After-sales ServiceWe co-developed the licensing service station in consultation with GAC customers. Subject to the troubleshootingrequirements of GAC products, repairs used to be available in few designated locations only. It's often necessaryto replace the whole package by inter-provincial transfer. In 2023, Farasis Energy and GAC jointly explored theoptimization plan, decided to co-develop the service outlet licensed by both sides, and granted a maintenance licenseto the outlet. Since then, GAC product maintenance can be conducted at nearby maintenance outlets, without shippingto other provinces and cities. This greatly optimizes the e?ciency of customer demand response.
Depending on the severity of customer complaints about quality problems, we manage the problems by levels. The companypresident shall respond to serious quality problems and problem escalation within 4 hours.
Perfecting Information Security Management
Farasis Energy actively embraces digital transformation, makes information security a priority in this process, andstrengthens management continuously to ensure the steady progress of digital transformation.
Consolidating the Safety Management System
Optimizing the Organizational Management Structure
To standardize information security management, we've established the Information Security Committee, with General Manageras the top manager of the Committee; the vice General Manager of the IT Department as the representative of the informationsecurity administrators, and managers of relevant departments as members. In 2023, we further optimized the verticalmanagement system and improved the horizontal governance system such as process, structure, PMO and information security.During the year, the Information Security Committee functioned properly. It reviewed the suitability, conformity and e?ectivenessof the information security management system, reported the implementation of information security management systempolicies and target indicators, and reviewed and discussed the problems found in the operation of the information securitymanagement system to further improve management system standards.
Closure rate ofcustomer complaints
95.85
%
Unit: No.Total customercomplaints
Number ofcomplaints closed
Director of the Information Security Committee
Deputy Director of the Information Security Committee
| IT and Digitization Department | Quality Center | Legal Compliance Department | Human Resources Department | Finance Center | Ganzhou Site | Zhenjiang Site | Guangzhou Site | Yunnan Site | Ganzhou New Energy Site |
Manufacturing Management and EHS
DepartmentInformation Security Organization Structure
Unclosed complaints from the U.S. and European customers concern the cycle of returning defective products to the selling country, which a?ects the progress of problem analysis.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
6970Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsPerfecting the Supporting Mechanism Process
Farasis Energy carries out information security mainly at three levels:
In 2023, we launched information security hardware and software systems, e.g., office terminal, industrial terminal antivirussoftware, bastion host, le encryption, WAF, and IPS.With reference to the system construction standard of ISO 27001, we have established more than 30 information securitymanagement procedures, including the Information Security Management Manual, the Information Security IncidentManagement Procedure, the Information Security Compliance Management System and the Data Protection ManagementMethod. In 2023, we updated 32 of them to provide a solid guarantee for information security.
Enhancing Safety Awareness of All EmployeesWe integrate information security-related laws and regulations into the information security system construction and awarenesstrainings, so that all new employees have knowledge of information security laws and regulations.
Strengthening Information Security AuditAssessing Information Security Risks
Strengthening Security Incident Response
We conduct regular information security risk assessments. We have established the Information Security Risk AssessmentManagement Procedure, which offers a complete process for information security risk assessment, ranging from threatidentication, control measures and analysis, risk assessment and analysis to risk treatment, residual risk disposal and riskcontrol. For high-risk items, we organize internal audits every year, and report the problems found and corrective measures tothe Information Security Committee.
For information security incident response and management, we’ve established the Information Security Incident ManagementProcedure, which has clear requirements on how to timely respond to information security incidents, incident reporting andinvestigation. We have the Information Security Business Continuity Management Procedure available and conduct businesscontinuity drills at least once a year.In terms of incident reporting, we’ve developed a failure escalation reporting procedure. Depending on the failure level, we reportit to di?erent levels of engineers and managers level by level to ensure e?cient management.
Terminal security: we install virus protection software and desktop management software. All office
terminals are managed by the AD domain controller in a unied manner, and users are controlled by policiesto periodically change passwords, lock screens, and prevent illegal software installation;
Data security: we establish the DataProtection Management Method forhierarchical management of data, andclarify information ow procedures andmechanisms to ensure informationsecurity;
Network security: we deploy firewallsecurity devices at the network border,and deploy online behavior devicesand IPS network intrusion preventionsystems at the core level to resist DoS(Denial of Service) and vulnerabilityattacks.
For new employees at the production lineFor new employees of functional departmentsThe Human Resources Department organizes2-3 orientation training sessions every week,including information security awareness training,with training coverage of more than 98%. Trainingrequires sign-in and examination. The examinationtotals 100 points, and the passing score is 90points. Those who fail must be reexamined.
We conduct information security awarenesstraining at least once a week. New employeeshave to sign in and pass the assessment.
Number of attacks defended
26,843,751
Time
Number of customerinformation leakage incidents
Information security incidents occurred
In 2023
Protection rate
99.99
%
We handle incidents such as employee violations or leaks as per regulations, and link them to employee KPIs andpromotions.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
7172Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsThird-party Data Security ManagementTo prevent unauthorized access or disclosure of third-party data, we have established the Data Protection Management Methodto clearly stipulate the classification and flow of data. All our office terminals are equipped with file encryption software. Tosend les for work reasons, the employees shall submit an application for approval, and the department head will authorizethe decryption. Appropriate information security requirements is also available in the Information Security and RequirementsManagement Procedure for Stakeholders. The Internet is isolated from the corporate Intranet by a boundary firewall, andemployees can access the Internet only after submitting procedures.We are responsible for the identication, review and management of the needs and expectations of stakeholders in line withthe Information Security and Requirements Management Procedure for Stakeholders. Stakeholders include but not limited to(competent) government authorities, industry associations, customers, suppliers, employees, and companies. We collect theexpected control list of their requirements annually for the development of their information security measures.Carrying out External Certication
Battery Information Data Protection
We regard external certication as an e?ective means to strengthen information security management. With reference to ISO27001 and TISAX system standards, we have established a range of information security management systems such as theInformation Security Management Manual and the Information Security Risk Assessment Management Procedure. All themanufacturing sites put into production obtained the TISAX AL2 certification label, and the ISO 27001 information securitymanagement system is under planning.In 2023, Farasis Energy was named the "Industrial Information Security Benchmarking Enterprise" of Ganzhou Economic andTechnological Development Zone Government, after evaluated by the National Industrial Information Security DevelopmentResearch Center experts.
We attach importance to customers' requirements for information security of battery equipment, and implement the informationsecurity management of battery keys on BMS (battery management system) device to strengthen battery information dataprotection. Our BMS used in products is certied to ISO 26262 ASILC.For the battery chip system, we take the following actions to ensure information security:
We deploy a cryptographic system on all battery packs. It is composed of software and hardware systems, and can generate aunique password for each battery pack to improve the overall battery safety. After the battery pack is delivered to the customer,in case of serious safety accidents such as overvoltage, undervoltage, overcurrent, and over-temperature in the power battery,BMS shall automatically lock the battery pack and prevent it from further use. We then ship the battery pack back to the factoryfor battery unlock and test analysis.
Authentication and authorizationmanagement: Authenticate all softwarecodes to ensure that only licensedsoftware versions are available;
Reporting Channels
https://www.farasis.com/index/privacy
Contact Details for Privacy PolicyOrganization: Representative of informationsecurity administratorsEmail: rongyu@farasisenergy.com.cn
Information Security Reporting and Feedback Channels
Information Security InterfaceOrganization: Information Security DepartmentEmail: pjning@farasisenergy.com.cnTel: 0797-7329933
Physical security: Physically protect the
battery management system and deleteexposed internal interfaces to preventhardware cracking;
Data encryption and backup: Encryptthe BMS data and communication toensure data security;
Verication of the software validity:
Check the software before the systemstarts. Do not start the software if it isfound to be tampered with illegally.
Managing with Due Diligence andSeeking Common Development
Our Progress:
While providing leading technology, quality products and services for the global new energyindustry, Farasis Energy cooperates with upstream and downstream enterprises to builda mutually beneficial, efficient and smooth industry value chain. This effort is to increasethe transparency of our supply chain, to support the sustainable development of industry'scollaborative ecological chain, and to promote the high-quality development of the newenergy industry.Our Performance:
Up to 282 suppliers, and the scope of suppliers is primarily material suppliers andsuppliers with purchases greater than 10 million CNY.100% of active cathode material suppliers covered by audits of supply chain duediligence management system.A professional audit agency commissioned to carry out the annual supply chain duediligence management audit, covering 19 critical mineral raw material suppliers, includingthe on-site audit of sustainability related criteria.Farasis Energy Supplier Code of Conduct signed by 100% of target suppliers (based oninternal supplier development and procurement control procedures).As the end of December 23, 100% of direct material buyers have been trained insustainable procurement.
All-round Supply Chain ManagementEnhancing Supply Chain ResilienceSustainable Supply Chain Risk ManagementResponsible Mineral Management
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
7576Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon Development
Showcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and ActionsAll-round Supply Chain Management
Enhancing Supply Chain Resilience
Depending on whether the purchased products and services make their way into the nal products manufactured and sold,Farasis Energy splits the procurement business into direct and indirect material procurement.We have formulated the Supplier Development and Management Procedure to keep the suppliers’ quality of products andservices meeting our requirements. Before working with suppliers, we sign with them the Condentiality Agreement, GeneralTerms of Procurement, Supplier Code of Conduct, Supplier Integrity Commitment, Supplier Questionnaire, and etc.For the collaborative process management, we’ve formulated the Supplier Performance Evaluation and Appraisal to standardizethe supplier performance evaluation and appraisal process, and to quantify the supplier performance evaluation indicators.Supplier performance evaluation is based on three parts: quality, price and delivery. Suppliers are fallen into Tier 1 suppliers andkey non-Tier 1 suppliers according to the appraisal results, and are then evaluated.
We have developed the Emergency Preparedness and Response Management Procedure to respond to major environmentaland signicant hazard incidents and abnormalities in the energy supply, and to minimize the loss and hazard of major incidents.In terms of organizational structure, we set up an Emergency Command Center, whose members include the leader of theEmergency Command Center (EHS Director, concurrently) and members (directors or managers of departments). The leaderof the Emergency Command Center is responsible for the unied command and dispatching of the emergency scene, and themembers are responsible for the implementation of emergency plans.For extreme weather, we attach importance to typhoon and ood emergency preparedness and response, since typhoons andoods may directly or indirectly a?ect the interruption of production line for supply chain raw materials, sudden surge in materialdemand and increased transportation costs.Total number of key suppliers
Total number of Tier 1 suppliers
Total number of key Tier 1 suppliers
Proportion of key Tier 1 supplier purchasesto total procurement expenditure
84.05
%
Unit:
No.NortheastChina
NorthChina
East China
South China
Southwest
China
CentralChina
NorthwestChina
Hong Kong,Macao, and
Taiwan ofChina
Overseas
Number of suppliers
: 282
Emergencypreparedness
Emergency response
plans
Review of emergency response plans
Test and drills of emergency response plans
Resource assurance for emergencypreparedness and response
Emergency responsemeasures for specicaccidentsEx-postdebrieng
The scope of suppliers is primarily material suppliers and suppliers with purchases greater than 10 million CNY, such as equipment and MRO, excludinglogistics and professional services.
Key suppliers are the Company’s Class A material suppliers and high-volume/non-replaceable suppliers in Class B/C.
Tier 1 suppliers are suppliers who directly supply products or services to the company.
Key Tier 1 suppliers are those key suppliers that supply directly to the company.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
7778Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Synergy of Upstream and Downstream CapacityFrom February to March in 2023, we conducted energy carbon survey and technical exchanges with some key raw materialsuppliers in the annual carbon footprint verification, obtained the actual product carbon footprint information from certainsuppliers, and improved the preparation of existing carbon inventories.During the annual on-site audit of supply chain due diligence management, we understood the suppliers’ work plans insustainability through on-site seminars and other forms, and actively delivered the sustainability requirements from downstreamcustomers and terminal markets.
Sustainable Supply Chain Risk Management
Supplier Code of ConductBased on our actual situation and business environment, we update the Farasis Energy Supplier Code of Conduct, which setsa series of sustainability requirements for suppliers in terms of labor human rights, health and safety, environment and businessethics.
Framework of the Farasis Energy Supplier Code of Conduct
Responsible Mineral Management
As an industry practitioner, we are fully aware of the potential risks of material adverse effects in the exploitation, trading,processing and export of mineral resources, and are committed to our obligations to respect human rights, not to fuel conictand not to adversely a?ect the environment and society. Since 2018, Farasis Energy has become a member of the ResponsibleCritical Mineral Initiative (RCI), continuing to improve the level and effectiveness of responsible mineral management withinternationally harmonized standards and frameworks.In 2023, based on the laws and regulations of downstream customers and terminal markets, and in compliance with the OECDBest Practice Guidelines, we updated and improved the Due Diligence Management Procedure for Responsible Mineral SupplyChain, basically completed the formulation of supply chain due diligence management system documents and the establishmentof risk response processes, and passed the audit of downstream customers.
LaborHealth and safetyEnvironmentCode of ethicsManagement system
Child labour andyoung workers
Proportion of audited/assessedsuppliers involved in improvementactions or capacity development
%
Proportion of target suppliersassessed for corporate socialresponsibility
%
Proportion of direct materialspurchasers trained in sustainableprocurement
%
In 2023
Free choice of
employment
Occupational safety
Environmentalpermit and reporting
Corruption, briberyand other illegal acts
CompanycommitmentWorking hoursWork-related injuries
and diseases
Wastewater and solidwasteHazardous substance
management
Protection of fair
competition
Legal requirements
and customerrequirements
Audit and assessment
Emergencypreparedness
Pollution prevention
and resourceconservation
Money laundering
Managementaccountability and
responsibilityCompensation and
welfare
Industrial hygiene
Exhaust emission
Trade compliance
Risk assessmentand management
Corrective action
procedure
Discrimination andharassmentStrong physical
work
Material limitation
Informationdisclosure
Improvement
objective
Documentation and
records
Public health, foodand accommodation
Energy consumptionand greenhouse gasemissions
Fair dealing,advertising, and
competition
Responsiblemineral sourcing
Communication
Freedom ofassociation andcollective bargaining
Machine protection
Stormwatermanagement
Intellectual property
rights
Training
Supplierresponsibility
Health and safety
communicationIdentity protectionand non-retaliation
policy
Privacy
Employee feedback
and engagement
Target suppliers are those based on internal supplier development and procurement control procedures.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
7980Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance withCompliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
We organize supply chain due diligence management training for employees involved in the procurement of critical mineral rawmaterials. We often conduct such training annually to keep the knowledge structure regularly updated. During the annual supplychain due diligence management audit, we provide special due diligence management training for Tier-N suppliers with relativelylow due diligence system maturity identied in on-site audits.In 2023, our supply chain due diligence management system covered all active cathode material suppliers. We commissioned aprofessional audit agency to carry out the annual supply chain due diligence management audit, covering 19 critical mineral rawmaterial suppliers, and carried out capacity building and rectication based on the audit results.To enhance communication and collaboration with a?ected areas, upstream and downstream enterprises in the supply chain,government departments, non-governmental organizations, media and other stakeholders, we have established and disclosedthe Complaint and Communication Mechanism for Supply Chain Management to build a dialogue and consultation platform forthe continuous improvement of our supply chain governance capability.During the reporting period, we did not receive any complaints from the established open communication channels forcomplaints.
Risk Response Plan for Supply Chain Due Diligence Management
Suppliers classied ashigh ESG risk
Due diligence audit formineral supply chain
In 2023
Unit: No.SuppliersTier 1
suppliers
Key non-Tier 1suppliers
Have undergone an ESG risk assessment inthe past 3 years
Update supply chain map
Update KYS/KYC data
Review chain of custodydocuments, including purchaseorders, shipping records, andstorage recordsConduct risk assessment
Visit cathode materialmanufacturers and reneriesUpdate the risk mitigation plan
Monitor supplier’s implementationof the risk mitigation planConduct internal monitoring ofthe implementation of FarasisEnergy ‘s risk mitigation planConduct supplier and stakeholdermeetings
Supply chain map questionnaire
Understand your supplier/business partner questionnaireReview relevant documents,including purchase orders,shipping records, and storagerecordsSupplier risk assessment template
List of supplier eld visitsIncident reporting templateRisk mitigation plan template
Risk mitigation monitoring tools
Internal monitoring checklist andreport templateMeeting minutes template
Annually or when FarasisEnergy ‘s supply chain changesAnnually or when FarasisEnergy ‘s supply chain changesWhen the partnership beginsand in case of any changes
Annually or when FarasisEnergy ‘s supply chain changesAnnually or when FarasisEnergy ‘s supply chain changesAnnually or based on the levelof riskAnnually or based on the levelof riskAnnually or based on the levelof risk
Regularly, at least once a year
The processing clerks are responsible
for recording the complaint andcommunication in the complaint le.
Within seven (7) business days
of receipt of the complaint andcommunication, the clerks provide awritten response to the complainant,acknowledging receipt of the complaintand providing steps and timing for
resolving the complaint.If the complainant is not satised with theinvestigation report or action measures,we shall conduct further investigationand research to identify and implementthe action plan that requires furtherdevelopment. If the complainant is stillunable to agree on improvement actions,we may refer the complaint to a third partyfor mediation or engage external experts
for review and consultation.
The clerks make a preliminaryassessment of whether the complaintand communication conform to the scopeof this complaint and communicationmechanism, and communicate the relevantinformation to corporate managers anddepartments.The complaint investigation is conductedimmediately after receipt of the complaint.The relevant personnel shall completethe complaint-related investigation reportor action report and draw responseconclusions within one month from thedate of commencement of the complaint.The Supply Chain ManagementDepartment reports to the Committeequarterly the complaints received,resolutions and pending cases, analyzesthe status and time frame for the resolutionof complaints annually, and evaluatesthe e?ectiveness of complaint andcommunication mechanisms.
Accepting the complaint or communication
Complaint conrmation
Improvement action
Preliminary assessment
Complaint response
Monitoring and evaluation
Action itemsTool nameFrequency
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
8182Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Stimulating Talent Vitality withHigh-Quality Environment
Our Progress:
Farasis Energy always regards talent as its most valuable assets. We sign labor contractswith all employees and make full contributions to social insurance to protect the legitimaterights and interests of each employee. We value the introduction and training of talent, recruitand select talented people through a variety of channels and ways, and o?er a full range ofvocational training and development opportunities. We attach importance to the safety of ouremployees in workplace, protect their physical and mental health, and provide them with acomfortable and safe working environment. In 2023, Farasis Energy won the "ExtraordinaryEmployer Award" in 2023 by virtue of its excellent image of hirer's trademark and humanresource management capability. This is a recognition of our outstanding achievements intalent team construction and talent development.Our Performance:
A total of 6,554 employees, with female employees accounting for 27.34%.The suggestion box opened for 45 times, and a total of 105 comments and suggestionsreceived online and o?ine, with a response rate of 100%.Employee satisfaction/ engagement up to 82%.The second vesting period of the initial grant portion of the restricted stock incentive plancompleted with the conrmation of 404 vesting o?cers in November 2023.100% of the operation sites available certied by a third party to meet the ISO 45001standard.
Protecting Basic Rights and Interests of EmployeesCreating a Fair Environment for GrowthFirmly Constructing a Safe and Healthy Line of DenfensePracticing Employer's Humanistic Care
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
8384Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality Environment
Accumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsProtecting Basic Rights and Interests of EmployeesProtect Rights and Interests of Employees in Multiple PathsFarasis Energy formulates and issues the Employee Manual, which regulates the behavior of employees and provides guidelines fordaily work, so that employees are fully aware of their rights and obligations. We strictly implement national policies on human rights,gender, age and ethnicity, and standardize labor management. In May 2023, Farasis Energy 's labor union set up a Labor DisputeMediation Committee to process conicts in the bud, better protecting the interests of employees and facilitating long-term developmentof the enterprise.Farasis Energy identies and evaluates human rights-related topics in its daily operations or of external concern, and formulated humanrights systems, including the Remedial Management Procedure for Preventing the Employment of Child Labor and Remediation ofChild Labor, the Management Procedure for the Protection of Underage Workers, the Management Procedures for Labor Protection ofFemale Workers, the Management Procedures for the Prohibition of Forced Labor, the Management Procedures for Complaints andthe Prohibition of Abuse, the Freedom of Association and Procedure for the Regulation of Negotiated Assemblies, the ManagementProcedures for the Prevention of Discrimination and Sexual Harassment and the Management Procedures for Remuneration andBenets to protect human rights.
Farasis Energy developed the Remedial Management Procedure for Preventing the Employment of Child Laborand remediation of Child Labor to prohibit all departments, contractors and suppliers from recruiting minors under
16. We check "three certicates" (ID card, residence permit, and health certicate) to ensure that the actual age
of the hired employees is at least 16 years old and meets the requirements of labor law and other relevant lawsand regulations. And we visit workshops to spot-check and verify the identity of employees at irregular intervals toensure that their age information is consistent with personnel information;Prohibition
of child
labor
Employee ManagementSafety ManagementEmployee Protection
Procedure and Policy System for Employee Management and Protection
4,765
2023
7,113
2021
6,554
2022
Unit: PersonUnit: Person
By levelBy age
Management
≤30
＞
Non-management31-40
41-50
By gender in 2021
Female
1,335
Male
3,430
By gender in 2023
Percentage offemale employees 27.34
%
Male4,762Female1,792
By gender in 2022
Percentage offemale employees
29.48
%
Male
5,016
Female2,097
202120212023
2,230
3,230
2,889
2022
4,351
2,104
3,200
3,003
2022
6,680
2023
5,913
Prohibition
of forced
labor
Farasis Energy established the Management Procedures for the Prohibition of Forced Labor to prohibit all formsof forced labor, including freedom during rest time, prohibition of forced overtime, prohibition of subcontractingof prison laborers, prohibition of withholding deposits or identification documents, and lawful vacations andseparations;Freedom ofassociationandnegotiatedassemblies
Farasis Energy’s labor union plays an important role in promoting the protection of employees’ rights andinterests, the building of corporate culture and the well-being of employees. Farasis Energy formulated theFreedom of Association and Procedure for the Regulation of Negotiated Assemblies and other Labor Union-related policy documents and signed the Special Contract for Wage Collective Negotiation in Jiangxi Province,Special Collective Contract for Special Protection of Female Employees and Special Collective Contract forOccupational Safety and Health.
Percentageof femaleemployees
28.02
%
Total number of employees
The "management" refers to employees who are managers and above.
Job Grade Management RegulationsEmployee Recruitment Management SystemMeasures for the Management of Charity FundEmployee Welfare Management SystemEmployee Attendance Management SystemEmployee Reward and Penalty Management
SystemManagement & Sta? Training Management SystemProduction Operator Skill Training Management
Standard
Safety AccidentManagement Regulations(including Work-relatedInjuries or SuddenIllnesses)Emergency ResponsePlan for Special Events
Involving Employees
Management Procedure for the Prohibition of Forced LaborFreedom of Association and Procedure for the Regulation of
Negotiated AssembliesManagement Procedure for the Prevention of Discrimination
and Sexual HarassmentRemedial Management Procedure for Preventing theEmployment of Child Labor and remediation of Child LaborManagement Procedure for the Protection of Underage
WorkersManagement Procedures for Labor Protection of Female
WorkersManagement Procedures for Complaints and Prohibition of
Abuse
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
8586Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality Environment
Accumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and ActionsEnsure Compliance in Recruitment
According to the Employee Recruitment Management System, we have standardized recruitment processes such asrequirements elicitation, selection of recruitment channels, release of recruitment information, recruitment execution, andenrollment, and etc., which denes the responsible person for each process node as well as the time to ensure the consistencyand transparency of the recruitment process, enhancing the recruitment experience of job seekers.We audit recruitment information released in external channels and internal platforms to eliminate all illegal job expressionsand ensure legality and compliance in recruitment, interviews, and enrollment. It also provides employees with opportunities forcareer development and publicizes recruitment information internally and externally at the same time to ensure a transparentrecruitment process.We follow the principle of equal pay for equal work and equal employment, and treat candidates from Farasis Energy's systemand the recruitment process regardless of gender, age, ethnic group, religious belief, disability, and etc., to ensure the fairness ofthe recruitment structure.We organize the study of internal laws and regulations as well as systems and procedures to avoid discriminatory behavior inrecruitment, to raise awareness of obvious or potential discriminatory behavior, and to strengthen the implementation of thestandard recruitment process.We regularly review and improve recruitment systems and processes each year to ensure compliance with anti-discriminationlaws and regulations, including monitoring anti-discrimination e?orts through the legal team. We will take immediate action tocorrect any discriminatory behavior found.
Proportion of employees coveredby formally elected employeerepresentatives
%
Proportion of employees covered byLabor Union or collective bargainingagreements at Ganzhou Site
%Proportion of employees coveredby formal collective agreements onworking conditions
%
Unit: Person
Unit: Person
By post
By academic qualications
2021
2021
2022
2022
2023
2023
R&D
1,1601,4331,483
Master
267315 293
Sales
178181139
Others
3,299
5,306
4,684
Management
Doctoral and above
Production
2,886
4,882
4,332
Bachelor
1,160
1,451 1,539
A manager is an employee in the “managerial queue”.
Annual new recruits
2,294
In 2021
Annual new recruits
5,413In 2022
Annual new recruits
5,724
In 2023Annual new recruits
By gender in 2021By gender in 2022By gender in 2023
Number of new maleemployees
4,306
Number of newfemale employees
1,418
Number of new maleemployees1,629
Number of new maleemployees3,848
Number of newfemale employees
1,565Number of newfemale employees
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
8788Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About Farasis
Energy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality Environment
Accumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Listen to Employees’ ResortsWe set up a channel for all employees to collect suggestions and complaints for Farasis Energy 's high-quality development andreect behaviors that are detrimental to Farasis Energy 's interests promptly. Employees can put forward suggestions throughthe Labor Union or human resources center mailbox, Corporate WeChat account, or employee suggestion box, including but notlimited to daily operation, energy saving and consumption reduction, revenue increase and expenditure reduction, cost reductionand e?ciency increase, and etc. The employees whose suggestions are adopted are rewarded according to the value of thesuggestions.In 2023, Farasis Energy 's Labor Union opened the suggestion box 45 times o?ine jointly with the Audit Department, online ando?ine received 105 suggestions on canteen food, administrative management, workshop management, personnel management,and etc. The response rate of the suggestions reached 100% and won unanimous praise from the employees.We conducted an annual employee satisfaction/engagement survey for all employees on the current state of Farasis Energy 'smanagement, leadership management style, organizational atomsphere, team division of labor and cooperation, departmentalfeedback, company platforms and opportunities, and communication at all levels. The nal result of the survey was 81.8% withan increase from 2022. Farasis Energy formulated improvement plans and measures from the incentive management system,strengthening the talent ladder, optimizing organizational design and division of responsibilities, and building the corporateculture based on the results of the survey.
CaseCanteen Quality ImprovementIn September 2023, the Labor Union promptly acted onemployee complaints about the canteen with relateddepartments by conducting employee communicationsand a eld visit on canteen operations. The Labor Unionproposed solutions based on the survey results to re-tender the canteen supplier and replace that after twomonths, improving employees' dining experience. Thisprocess solves the actual problems of the employees andshows that we value the opinions of the employees andare determined to improve their working environment.
Cost of hiring new employees1,550,013.01
CNY
Average recruitment cost
1,052.37
CNYNumber of internal referral
Person
In 2023
Unit: %
202120222023
80.1277.4081.80
Employee satisfaction/ engagement survey results
Unit: PersonUnit: Person
By typeBy level
Social recruitmentWhite collarCampus recruitmentGeneral employees
20212021
2,233
20222022
5,272
1,445
20232023
5,599
3,002
Unit: Person
By age
202120222023
Number of newemployees aged 31-40
1,7331,824
Number of newemployees aged＞
6730
Number of newemployees aged ≤30
1,214
3,552
3,728
Number of newemployees aged 41-50
新食堂图片
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
8990Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality Environment
Accumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Diversity, Equality and InclusionFarasis Energy complies with the multicultural backgrounds and cultural characteristics of job seekers, encourages mutualexchanges and cooperation of diverse backgrounds, emphasizes a multicultural and inclusive corporate culture, and providesemployees with diversied training and development opportunities to satisfy their career development needs.Farasis Energy is a globalized company with subsidiaries in many countries and regions. Farasis Energy actively seeksemployees with di?erent backgrounds and cultures to enhance our ability to innovate and be competitive in the marketplaceeven in di?erent work scenarios. Farasis Energy organizes corporate culture activities, encourages employees from di?erentcultural backgrounds to participate in internal cultural and work exchanges, and enhances employees' sense of well-being atwork and corporate identity.
Creating a Fair Environment for GrowthEmployee Training Channels and MethodsWe formulated a talent development system covering Farasis Energy's regular employees, part-time employees, outsourcedemployees, and etc. in management competence enhancement, professional competence enhancement, basic competenceenhancement, and learning guarantee, and carries out enhancement training and lecturing activities on management ability andprofessional competence based on the current status quo and demand by in-house training or external training.
In 2023, Farasis Energy conducted management skills and professional skills training internally and externally, with a trainingattendance of 28,022 person times.
Farasis Energy cooperated with universities and colleges to set up a Farasis Energy Class andorganized 12 periods of intensive training, regular training, and symposium for more than 200 freshcollege students. In 2023, Farasis Energy launched the "Intensied Training for College Students toFarasis Energy" for 145 new college graduates, including assessment, intensied training, internaltraining, external training, symposiums, and evaluation of outstanding college students;Farasis Energy trained more than 6,000 new employees, with a participation rate of 100% anda qualication rate of 100%; organized 12 company-level trainings by 52 hours and 6 courses,with a training attendance of 631 person times and a participation rate of 69%. Farasis Energyaccumulated 8 new apprenticeship training courses, with a training attendance of 285 persontimes, a participation rate of 79%, and 76 mentors and apprentices paired;Farasis Energy trains managers mainly in internal training, supplemented by online platforms, andconcentrates on the training of middle and senior managers. In 2023, Farasis Energy accumulated2 periods of manager training and assessment from theoretical knowledge, professional skills, andmanagement skills, with a training attendance of 154 person times;Farasis Energy provides regular theoretical training, new project introduction skills training,transfer skills training, standard change skills training, skills enhancement training, and othertypes of training for on-the-job production operators to keep adapted to changes and updates inproduction lines and technology. Farasis Energy also encourages the training of multi-talentedworkers, and one employee can hold several positions;Farasis Energy piloted the online learning platform "Farasis Energy School" focusing on generalbasic skills, with the activity rate of employees therein reaching 80%. In 2023, Farasis Energy had
32.54 hours of learning per capita for all employees.
In 2023 Zhenjiang site
Annual employee training coverage
53.27
%
Total training hours of all employees73,999
hours
By region
Unit: Person202120222023
Unit: %
Proportion of femalesin managementpositions
(Manager level and above)
Proportion offemales in juniormanagementpositions(Supervisory leveland above)
Proportion offemales in seniormanagementpositions(Statutory seniormanagers)
13.26
17.48
20.00
Proportion of employees from ethnic minoritiesor disadvantaged groups
3.05
%
Number of employeeswith disabilities
PersonProportion of femalesin R&D positions
15.49
%
In 2023
Chinese mainland
4,622
2141
6,943
2168
6,376
Hong Kong, Macao and TaiwanOverseas
For fresh collegestudents
For newemployees
For managers
For production
operators
For allemployees
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
9192Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality Environment
Accumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Dual ladder career system
Case“Farasis Energy Class” Cultivates Fresh Graduates for Farasis Energy
Farasis Energy cooperates with Gannan University ofScience and Technology through "Industry-Academia-Research" to set up Farasis Energy talent training siteand build the "Farasis Energy Innovation Class" to givefull play to the enterprise and the university to serve thecommunity and train high-quality applied, composite andinnovative talents to lead the development of the modernindustry. In the second semester of the third year, thestudents of Farasis Energy Class receive enterprise +school dual teaching mode based on the industry-teachingfusion cultivation to integrate the corporate culture,the development trend of the new energy industry, theproduction process of lithium batteries, quality management,the English language of the intelligent manufacturingprofession, career planning, practice/visit teaching, andother teaching practice contents, and comes to FarasisEnergy for internships in the fourth year, which cultivateshigh-quality technical talents for the industry.We continue to invest more resources and strength in employee training and development, build internal learning mechanismsand education platforms, and create a learning and growth atmosphere for a good corporate reputation.Fair and Transparent Development Path
Diversied Approach to Motivate Employee Growth
Farasis Energy provides employees with management, technology, operation, and other rank ladders, and encouragesemployees to carry out in-depth development in the direction of non-management, with di?erent career planning paths to buildtheir career core competitiveness. Farasis Energy facilitated timely adjustment of career paths for employees in di?erent ladders,providing maximum exibility for employees’ career development.
Dual career ladders (Managerial ladder andtechnical ladder) for each type of position
Managerial
ladderLeader
Technical
ladder
Master
Farasis Energy formulated short-, medium- and long-term option incentive programs to attract and retain outstanding talents andto enhance employee cohesion and competitiveness.
In 2023, Farasis Energy optimized the compensation and benet system based on the salary and benet improvement projectand developed a competitive compensation mechanism to improve internal employee satisfaction and external competitivenessby reshaping our rank system and performance system.
Farasis Energy abides by the Employee’s Personal Performance Commitment formulated by employees at the beginning of theyear and adopts the method of “Employee’s summary and self-assessment, direct superior’s rating, department head’s reviewand approval by the head of the rst level of the department” to conduct employee’s performance appraisal and management.Farasis Energy carries out performance management every year to manage the formulation of Farasis Energy ‘s businessobjectives and strategic decoding in a hierarchical and graded manner to realize the goal management of all employees.Farasis Energy developed a comprehensive performance communication system to fairly and equitably set the employeeperformance goals. Appraisers and appraisees need to communicate and agree when setting performance objectives. Theappraiser communicates with the appraisee about performance analysis, results notification, results application, and etc.,and helps the employee to nd out the reasons for good or bad performance and to formulate an action plan, improvementmeasures, and performance objectives for the next stage. Appraisees who disagree with the appraisal results have the rightto appeal directly to the Human Resources Department or the department head within two working days of the performanceinterview. If it fails, the appraisee can re-appeal to a higher level until the issue is resolved with consensus.
We adjust the annual salaryfor core employees, andcommend annual excellentemployees and teams with acertain amount of bonuses;tThe annual bonus of di?erentdepartments relates to itsbusiness performance;
Performance bonussystem coverage
%
Performance equitysystem coverage
6.82
%
Performance paysystem coverage
%Annual evaluation rate ofindividual performance
%
In 2023
ManagerSupervisor
IntermediateEntry
SeniorBackbone
Schematic Diagram of Dual Ladder Career System
We granted restricted stock incentives to 555 coreemployees as planned for the rst time in 2021,and reserved 3 employees for the incentive target.The incentive plan covers ve years from 2021 to2025, with one vesting period per year. Individualperformance appraisal results are key in the totalnumber of shares of restricted stock to be awarded,and those who fail the appraisal receive no restrictedstock allocated during the vesting period. In November2023, Farasis Energy completed the second vestingperiod of the initial grant portion of the restricted stockincentive plan and announced the conrmation of404 vesting o?cers, with an aggregate of 6,575,195shares to be vested.
Short-termincentive
Medium- andlong-termincentive
Our technicians and managershead to the school for classes
Internship stagedebrieng
Students come to thecompany for training
Specialized groupbuilding for students
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
9394Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About Farasis
Energy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Firmly Constructing a Safe and Healthy Line ofDenfenseHealth and Safety Mechanism ConstructionOur main manufacturing sites and their supporting office area have passed the ISO 45001 system third-party certification,including Farasis Energy (Ganzhou) Co., Ltd. and Farasis Energy (Zhenjiang) Co., Ltd.. 100% of Farasis Energy's operationalsites in production meet the requirements of the ISO 45001 standard by certication from a third party. Since the initial ISO45001 system certication in 2016, Farasis Energy has continued to improve OHS management system and synchronouslyupdated its management standards and documentation system for the new version of the ISO 45001:2018 standard.Farasis Energy's Safety Production Management Committee with 71 members is a decision-making body for work andproduction safety under the leadership of the company president. It implements comprehensive leadership, management, andsupervision of the safety production of the company's a?liated units through various functional departments.Ganzhou and Zhenjiang manufacturing sites established Safety Production Management Committees and EHS managementdepartments as well as full-time safety management personnel, responsible for production safety, environmental management,occupational health, and fire safety. The site Safety Production Management Committee consists of the heads of sitedepartments and coordinates the health and safety e?orts at each site.
The activated factories conducted risk assessments for hazard identication, including Farasis Energy (Ganzhou) Co., Ltd., and Farasis Energy (Zhenjiang)Co., Ltd., excluding companies in the process of engineering construction and installation of equipment in the factory due to the lack of production andoperation.
●
The EHS department of Farasis Energy organizes at least one hazard identication every year,carries out risk evaluation, formulates control measures and programs for the risk items, andfollows up the implementation of the control measures and programs;
●We sign a safety duty system document for all employees at the beginning of each year and urgeseach department to implement the safety responsibility. In 2023, 100% of sites adopted employeehealth and safety risk assessments.
●We review the target indicators at the beginning of each year, revises and releases new EHSmanagement objectives, updates the target indicators for safety and environmental accidents,organize the annual work safety summary meeting for managerial employees and above, and signthe Commitment to Work Safety Responsibility on the spot;
●Every new employee must receive training on the all-sta? work safety responsibility system andsign the Commitment to Work Safety Responsibility.
●Site employees conduct management activities in an orderly manner according to FarasisEnergy's rules and regulations, and implements operation approvals following the process, withspecial operations being licensed and special equipment annual inspection qualied;
●
We strictly control 8 major hazardous operations such as re operation, limited space operation,work at height, and hoisting operation in the factory, perform the application of hazardousoperation permit tickets in advance, set up special guardians on the spot, and implements safetycontrol measures;
●
External construction personnel may not enter the plant area without examination and approvalof the Notification of Safety Risks, the safety training records, and the Safety Agreement withOutsourced Company that have been signed or a?xed with a seal.
●
We established a hazard identification and management system to carry out daily inspections,monthly inspections, and special safety inspections;
●We established an improvement and continuous improvement mechanism and organized torectify promptly the problems found in internal inspections, external inspections, internal audits,management reviews, and evaluations.
Hazard Identicationand Improvement
Objectives &Compliance
Programs
Hazard Identicationand RiskEvaluation
OperationControlGroup-level Safety Production Management Committee headGroup-level Safety Production Management Committee executive deputy head
Member of group-level Safety Production Management Committee
Group-level Safety Production Management Committee o?ce
Ganzhou site Safety Production
Management Committee
Zhenjiang site Safety Production
Management Committee
Others
Safety Management Organizational Structure
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
9596Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
For more information on corporate governance, please refer to the Statement of Occupational Health and SafetyManagement.
Safety Accident Emergency System
Occupational Health Management
Farasis Energy established accident emergency plans and disposal programs such as the On-Site Disposal Program forExceeded NMP Exhaust Concentrations, the Critical Incident Management Program for the Cell Production Department, andthe accident disposal and management systems such as the Safety Accident Management Regulations (including Work-relatedInjuries or Sudden Illnesses), the Safety Accident Disposal and Emergency Liaison Chart, and the Control Procedures forNonconformity, Accident Investigation, Reporting and Handling.
Farasis Energy formulates occupational health management systems such as the Responsibility System for Preventionand Control of Occupational Disease Hazards, the Occupational Disease Hazard Warning and Notication System, and theOccupational Disease Hazard Emergency Rescue and Management System, informs employees of occupational diseasehazards arising in their work according to the law, and signs a Letter of Informatization of Occupational Disease Hazard Factorswith employees.Farasis Energy strictly implements the “simultaneous design, construction and operation” of occupational health protectionfacilities, monitors and tests occupational disease hazards, conducts occupational health checkups before, during, and afteremployment, establishes and improves employees’ occupational health guardianship les, and regularly updates the declarationof occupational disease hazards to ensure their occupational health.All sites complete the “simultaneous design, construction and operation” of pre-evaluation of occupational health, designof protection facilities, and evaluation of control effects of construction projects, as well as the testing and evaluation ofoccupational disease hazards as required, and organize occupational health checkups for employees in corresponding positionsbefore, during and after their employment.Farasis Energy conducts pre-employment occupational health checkups for new employees to be hired, employees transferringto be exposed to occupational disease hazards, and employees to be engaged in jobs with special health requirements. The EHSManagement Department of the production sites formulates an implementation plan for occupational health checkups based onthe occupational disease hazards to which employees are exposed and regularly arranges occupational health checkups.
Ganzhou and Zhenjiang sites set up annual safety and health targets, and Farasis Energy organizes an annual review of theirtarget indicators, and revises and releases new annual health and safety management targets.
fatal accidents with work safetyresponsibility
fatal accidents with work safetyresponsibility
incidence of occupationaldiseases
security incidents
Annual hazard identicationand management of duerectication rate ≥
%
Cumulative rate of lost-timeaccidents per million man-hours ≤
incidence ofoccupational diseases
security incidents
general economic lossaccidents
We formulate company-leveland department-level accidentemergency response plans andemergency response programsfor possible accidents, with thedepartmental level mainly foremergency response programs.
We regularlyorganize drills for alldepartments accordingto the emergency planand disposal program.
We regularly manageand inspects emergencymaterials.
We provide aclear denitionbased on thelevel of theaccident andquickly activatethe emergencypreparednessand responselevels, includingrequirementson the reportingdepartment/person andtimeline.
Emergency response plansEmergency DrillsContingency Reserve
We protect the rstscene of the accident,organize relevantinvestigation andanalysis of the cause,and makes rectications.
We started the on-siteemergency responseprogram immediately afterthe accident and sent theinjured to the hospital atsoonest.
Accident Investigation
We maintain accidentstatistics and les and conductregular accident reviews andinvestigations.
Retrospective EducationE?cient Treatment
Accident Report
Achievement of Targets for 2023
Ganzhou site’s annual targetZhenjiang site’s annual target
Proportion of employees represented on formal jointbusiness management and labor health and SafetyProduction Management Committees
%
Proportion of operatingfacilities certied to ISO45001
%Proportion of premisesassessed for employeehealth and safety risks
%
ISO
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
9798Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and ActionsCase
Health and Safety Culture Promotion and ImplementationThe week from April 25
th 2023 to May 1
st2023 was the 21st national educational event for the Law on the Preventionand Control of Occupational Diseases, with the theme “Improvement of the Working Environment and Conditionsto Protect Employees’ Physical and Mental Health”. Ganzhou site carries out promotions on chronic diseases andoccupational health, health clinic, and etc., posts the results of occupational disease hazards testing on the site,conducts special inspection of occupational health, replaces any damaged occupational hazards warning cards on site,and proceeds noise testing in hazardous places, to enhance the awareness of occupational health protection of thesite’s employees and the management level.
November 9
th, 2023 was the 32
nd
National Fire Prevention Day themed "Prevention First & Life First", Ganzhou sitecarried out the "Fire Prevention Competition", concerning how to wear re-resistant combat suits and positive-pressureair breathing apparatuses, smoke masks and how to use carbon dioxide re extinguishers and re hose connections.Zhenjiang site posted promotional banners throughout the plant and organized the First Forklift 6S Contest onNovember 23
rd, to improve the safety and stability sense of forklift drivers, enhance the performance and capacity offorklift trucks, strengthen the awareness of safe driving, and improve the standard of work performed by employees.
In September 2023, Ganzhou site carried out theAnkang Cup Knowledge Contest, adopting the systemof the online preliminary round and o?ine quarter-nal,with the enthusiastic participation of all departments,achieving success.June 2023 was the 22
ndnational Safe ProductionMonth themed “Everyone Concerns about Safety &Responds to Emergencies”. Ganzhou site organizedthe promotion of the Work Safety Law, knowledgetraining, and award-winning safety knowledge WeChatquiz. Zhenjiang site EHS organized the promotion andapplication of the “Comprehensive Fire Safety LearningPlatform”, and the activities of “Interesting Quiz onSafety Knowledge” and “Finding Mistakes Together” toenhance the safety awareness of employees.Safety Training and Cultural Promotion and Implementation
Farasis Energy develops an annual safety training plan every year and carries out three-level safety education and trainings fornew employees. Each department develops departmental annual training plan and organizes its implementation.Farasis Energy rigorously implements a three-level work safety education and training mechanism, which requires allnewcomers (including dispatched workers and interns) to accept safety training at plant level, workshop level and shift level andmaster essential safety knowledge and skills before starting work. Farasis Energy regularly conducts knowledge and hands-ontraining for re protection, occupational health and safety training, and special equipment safety training.
Coverage ofsafety training
%
Number ofemployeesparticipating insafety training
11,474
Person
Safety drills
Time
Number of participants insupplier safety training
1,762
Person
Number of safetytraining sessions
TimeCoverage of suppliersafety training
%
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
99100Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality Environment
Accumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and ActionsAdvocate work-life balanceFarasis Energy integrated competition, corporate culture and cooperation with fun sports games as the carrier to create a sportsevent, enhance the sense of belonging of employees to Farasis Energy, enrich employees’ cultural life in their spare time,stimulate the enthusiasm of the team, release the pressure of work, and cultivate their sense of competitiveness.
Fun Games
The First National Fitness Games in Ganzhou Economic and Technological Development Zone
Employee SupportsFarasis Energy’s Labor Union regularly helps employees in need,offers educational assistance to employees’ children, and sets up acharity fund to respond to emergencies, medical assistance, or familydifficulties. Following the principle of helping people in urgency ratherthan people in poverty, the charity fund sent approximately CNY 150,000of charity money to more than 20 families in 2023.The Labor Union regularly updated “Accurate Documentation ofEmployees in Need”, and solved their practical problems, whichenhanced their sense of belonging to Farasis Energy and made themfeel happier at work and in everyday life.
Sending Warmth to Employees in Need
Practicing Employer’s Humanistic Care
Welfare Guarantee for All Employees
Farasis Energy built a robust welfare system covering all employees, balancing their work and life, and practicing the spirit of“Care and Concern” for employees.
Farasis Energy set up the Employee Care Committee to organize free medical check-up services foremployees regularly, established the Employee Care Construction Program and the Employee CarePlan as mostly concerned by employees, which includes 98 measures covering employee welfare,remuneration, infrastructure and corporate culture, and promoted the “We Care” program.Farasis Energy provides comprehensive social insurance, including pension, medical care,unemployment, occupational injury, and maternity insurance, and improves the medical insurancesystem to establish a multi-level medical insurance system. Farasis Energy has purchasedemployee commercial insurance benefits since October 2022 and renewed them in 2023, coveringadditional benets such as accidental injury insurance, sudden illness, critical illness, outpatient andhospitalization.Farasis Energy guarantees employees' statutory holidays, including paid annual leave, marriageleave, maternity leave, parental leave, breastfeeding leave, and etc. If the child is under 3 years old,the parents have 10 days of parental leave per year each based on a medical certicate of birth or ahousehold register.Farasis Energy provides employees with accommodation, meals, shuttle bus, holiday benefits, andirregular working hours for non-production operation employees to exibly arrange the balance of lifeand work. The Administration Department uniformly and standardly manages employee dormitory toensure standardized use of electricity, orderliness, and harmonious roommate relationships.Farasis Energy organizes colorful employee activities, such as team building, fun sports, family day,birthday party, and etc.
Health
care
Basicbenets
Statutoryholidays
Employee
lifeEmployeeactivities
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
101102Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and Actions
Beneting Society ThroughKindness and Actions
Our Progress:
Farasis Energy actively fulfills its social responsibility and enthusiastically participates inpublic welfare undertakings. In 2023, our visits to poverty families of women with "twocancers", holiday visits to elderly citizens who’re living alone, care for left-behind children,care on "June 1" International Children's Day, Student Assistance Activity in SanjiangTownship, purchase of poverty relief products, and support for employees in need, and etc.,won positive and reputable social and public comments.Our Performance:
The total amount of donations and materials for the year was about CNY 1,784,800;The employment assistance workshops of us helped 12 needy families, o?ering 12 jobs,and donated materials worth more than CNY 1.29 million (including salary, benefits,insurance, and etc.);Farasis Energy organized the activity “Bringing Love Home - Warming Children to ProtectTheir Growth”, sending warmth and Spring Festival souvenirs to 25 children and families;Farasis Energy was honored as "The Fourth among Leading Private Enterprises inFulllment of Corporate Social Responsibilities in Jiangxi Province" at the conference ofthe Top 100 Private Enterprises in Jiangxi in 2023.Community CharityEmployee Volunteering
Appendix
Appendix
Shaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
103104Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and ActionsCommunity Charity
Employee Volunteering
Rural Revitalization
Caring for Left-behind Children
Support Education
In 2023, Farasis Energy speciallypurchased farm products as welfare for theSpring Festival, totaling more than CNY
300,000
to win the "Anti-poverty War" for the realization of ruralrevitalization.
The employment assistance workshops of Farasis Energy helped
needy families, o?ering
jobs, and donatedmaterials worth more than CNY
1.29
million (including salary, benets, insurance, etc.) by the end of 2023.
In December 2023, Farasis Energypurchased
kilograms of naveloranges amounting to CNY 5,250 toe?ectively help the fruit farmers as per thecall of the district party committee and thedistrict government.
In August 2023, FarasisEnergy carried outactivities to purchase CNY40,000
ofwatermelons from Gansufarmers to solve the problemof unsalable agriculturalproducts.
In January 2023, the Labor Union and Women’s Committeeof Farasis Energy organized the series activities “SendingWarmth - Voluntary Care Warms Winter Tour”, and the“Bringing Love Home - Warming Children to Protect TheirGrowth” at the “Children’s Love Harbor” in Xiejiao Village,Sanjiang Town, Ganzhou Economic and TechnologicalDevelopment Zone to send warmth and Spring Festivalsouvenirs to 25 children and families.
On August 31
st, 2023, Sanjiang Town held the 2023 Caring Scholarships and Student Grants Conference, inviting FarasisEnergy to attend and speak as a representative of the caring enterprises that support education. Since the establishment of theGanzhou Economic and Technological Development Zone Sanjiang Town Education Assistance Association in 2022, FarasisEnergy has been donating to Sanjiang Town for two consecutive years, with a cumulative total of CNY 97,400.
On June 1
st, 2023, International Children’s Day, Farasis Energy’s volunteers went to Xiangjiang Road Primary School inGanzhou City to o?er their best wishes and present the exclusive customized gift boxes.
In 2023, Farasis Energy kept in mind its social responsibilities and obligations, vigorously promoted the voluntary spirit ofdedication, love, mutual assistance, and progress, and actively participated in public welfare activities while expanding its scale.
In 2023, Farasis Energy organized 9 volunteer activities. InJanuary 2023, Farasis Energy's employee volunteers visited19 low-income and disadvantaged families of women with"two cancers" in Xiejiao Village, Sanjiang Town, GanzhouEconomic Development Zone, and sent their New Year'sblessings and love to them. Farasis Energy's two volunteerteams in Ganzhou and Zhenjiang went to the Zhen'aiRetirement Center and Xingrui Home Care Service Centerto send good wishes and greetings for the Spring Festival.On the occasion of the Dragon Boat Festival in 2023, theGanzhou volunteer team of Farasis Energy went to Zhen'aiRetirement Center and sent good wishes and gifts for thefestival to elderly citizens who lived alone and the Center’sworking sta?s.
Employment Assistance Workshop display board at Farasis Energy
Volunteer activities
Session
Number of volunteers participating in the activities
Person times
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
105106Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and ActionsAppendix
ESG Performance TableGovernance and Economic Performance
Business performance
Social contribution per share
/-0.34-0.19Operating incomeCNY 100 million35.00115.88164.36Annual taxCNY 100 million0.380.690.71Operating cost CNY 100 million36.17107.18153.11Total assetsCNY 100 million209.37321.27301.47
Litigation and violations
Number of corruption lawsuits initiated and concludedagainst the company
No.000Number of corruption lawsuits initiated and concludedagainst the employees
No.000Number of reports generated by anti-corruptionreporting procedures
No.001Number of internally recognized corruptionsNo.001Cases related to antitrust/anti-competitionNo.000Cases related to discrimination or harassmentNo.000Cases related to insider tradingNo.000Cases related to conicts of interestNo.000
Compliance training
Proportion of operation premises subject to corruption risk assessment%100100100Proportion of operation premises subject to internal audits on businessethics issues
%100100100Total number of anti-corruption and anti-bribery training for directorsand o?cers
Time121114Total number of anti-corruption and anti-bribery training for generalemployees
Time121114Total number of employees participating in anti-corruption and anti-bribery training
Person3,0396,1145,811Proportion of employees participating in anti-corruption and anti-briberytraining
%63.7885.9688.68Proportion of suppliers and contractors participating in anti-corruptionand anti-bribery training
%100100100
Board of Directors
Number of Board of Directors heldTime142017Number of shareholders’ meetings heldTime453Number of Board of Supervisors heldTime121712Number of directorsPerson111111
By independenceNumber of independent directorsPerson444Number of non-independent directorsPerson777
By gender
Number of male directorsPerson81111Number of female directorsPerson300
Professional backgrounds of independent directors
Number of independent directors with an industry backgroundPerson012Number of independent directors with a professional background in riskmanagement
Person333Number of independent directors with a background in accounting ornance
Person222
Others
Average attendance of the Board meetings%100100100Proportion of the minimum number of meetings required to be attendedby members of the Board of Directors of the number of meetings heldduring the year
%100100100Restrictions on the number of independent/non-executive directorsholding concurrent positions in domestic listed companies
No.553
Social contribution per share =earnings per share + (total tax + employee expenses + interest expenditure + public welfare input - social cost) ÷ Totalcapital stock at the end of the period
Due to the presence of shift workers at the production and operation sites, the implementation and organization of integrity compliance training cannotensure that all employees are fully covered.
IndicatorUnit202120222023
IndicatorUnit202120222023
IndicatorUnit202120222023
IndicatorUnit202120222023
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
107108Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsEnvironmental Performance
Environmental indicatorsTaxes and fees related toenvironmental protection
CNY715,000.0086,400.0092,910.00Environmental pollution incidentsNo.000Environmental investment
CNY 10,00090.33374.09382.73Investment in energy-savingrenovation projects
CNY 10,000-801.6451.07Greenhouse Gas Emissions
Total emissions of greenhouse gas (Scopes1 and 2)
tCO
e256,292.17424,786.38371,657.34Total emissions of Scope 1 greenhouse gastCO
e28,242.506,280.484,328.28Total emissions of Scope 2 greenhouse gastCO
e228,049.67418,505.90367,329.06Total emissions of Scope 3 greenhouse gastCO
e455,577.62874,815.60987,510.47Greenhouse gas emission intensity
tCO
e/CNY 1 million ofoperating income
73.2236.66
22.61
Emissions and waste
WasteTotal general wasteTonne9,701.1910,370.087,922.69General waste intensity
Tonne/per CNY 1 millionof operating income
2.770.890.48Total hazardous wasteTonne111.18500.70715.91Waste electrolyteTonne9.5732.9835.95
Emissions and waste
IndicatorUnit202120222023
IndicatorUnit202120222023
IndicatorUnit202120222023
IndicatorUnit202120222023
Waste engine oilTonne1.162.009.33Refrigerating uidTonne0.420.510.08Discarded packageTonne7.70194.67186.87Waste curing agentTonne00.165.51Residual slurriesTonne76.74255.60210.93Waste alcoholTonne2.0013.306.45Spent activated carbonTonne00.322.23Waste ltersTonne00.400.40Wastewater treatment sludgeTonne0.000.00106.50Waste gluesTonne13.540.68151.58Waste organic solventTonne0.050.090.07Hazardous waste intensity
Tonne/per CNY 1 millionof operating income
0.030.040.04WastewaterTotal wastewater discharge
Tonne632,496.00776,113.00279,046.00Wastewater discharge intensity
Tonne/per CNY 1 millionof operating income
180.7166.9816.98Waste gasTotal waste gas emissions
10,000 m
74,841.6273,709.9285,717.35Volatile organic compounds(VOCs) emissions
Kilogram2,197.66927.601,342.60Nitrogen oxides (NO
x)Kilogram3,276.00-104.60Particulate matters (PM)Kilogram149.76-104.00Sulfur oxides (SO
x
)
Kilogram0-793.10Waste gas emission intensity
10,000 m
/CNY 1 millionof operating income
21.386.365.22
Unless otherwise stated, the statistical scope of environmental performance data is Farasis Energy's two major sitbases in Ganzhou and Zhenjiang.
2021 and 2022 data are for the Zhenjiang site, and 2023 data for both the Ganzhou and Zhenjiang sites.
During the reporting period, we checked the data of previous years retrospectively and revised the data of “investment in environmental protection”for 2022 (original data: CNY 3.816 million) disclosed in the 2022 Environmental, Social and Governance (ESG) Report. Farasis Energy investment inenvironmental protection mainly includes hazardous waste treatment, hazardous waste appraisal, hazardous waste warehouse expansion and renovation,environmental testing, radiation monitoring, etc.
The 2021 Scope 3 total greenhouse gas emissions data are derived from internal estimates, and therefore the carbon sources identied in the carboninventory, and even the raw data obtained, are incomplete. 2022 and 2023 data are derived from ISO14064 veried certication data.
Emission intensity of greenhouse gas = Total emissions of greenhouse gas ÷ CNY 1 million of operating income.
During the reporting period, we checked the data of previous years retrospectively and revised the data of “total discharge of wastewater” for 2021 and2022 (original data: 635,796 tonnes and 843,763 tonnes) disclosed in the 2022 Environmental, Social and Governance (ESG) Report, and revisedsimultaneously the data of “wastewater discharge density” for 2021 and 2022.
During the reporting period, we checked the data of previous years retrospectively, with data from Ganzhou and Zhenjiang sites being calculated bythe actual measurement method, and revised the data of “total emissions of waste gas” for 2022 (original data: 214,147,200 m
) disclosed in the 2022Environmental, Social and Governance (ESG) Report, and revised simultaneously the data of “waste gas emission density” 2022.
We regularly test pollutant emissions, and no sulfur oxides (SOx) were detected at Zhenjiang site in 2021, and no related pollutants were generated in2022 due to boiler shutdown. The Ganzhou site did not produce nitrogen oxides (NOx), particulate emissions (PM), or sulfur oxides (SOx) from 2021 to2023.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
109110Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About This
Report
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Energy ManagementTotal energy consumption
tce58,412102,88293,987Energy consumption intensity
tce/CNY 1 million of
operating income
16.698.885.72Proportion of renewable electricityusage
%22.027.058.0
Employee Portrait
Total number of employees
Person4,7657,1136,554
By genderMalePerson3,4305,016 4,762FemalePerson1,3352,097 1,792
By regionChinese mainlandPerson4,6226,943 6,376Hong Kong, Macao and TaiwanPerson22 1OverseasPerson141168 177
By levelManagement
Person414433 641Non-managementPerson4,3516,680 5,913
By age≤30Person2,2303,230 2,88931-40Person2,1043,200 3,00341-50Person381599 590>50Person5084 72
By academic qualicationsDoctoral and abovePerson3941 38MasterPerson267315 293BachelorPerson1,1601,451 1,539OthersPerson3,2995,306 4,684
By postManagement
Person541617 600R&DPerson1,1601,433 1,483ProductionPerson2,8864,882 4,332SalesPerson178181139
IndicatorUnit202120222023
IndicatorUnit202120222023
IndicatorUnit202120222023
IndicatorUnit202120222023
Water Resources ManagementWater consumption
Tonne1,654,218.502,388,865.802,032,662.75Water consumption intensity
Tonne/per CNY 1million of operating
income
472.62206.15123.67Total consumption of recycledwater
Tonne498,249.50737,501.80611,234.60
Packaging materials
Ganzhou SiteCarton usedNo.41,474 58,611 42,966Recyclable packaging usedSet17,01853,70956,408Proportion of recyclable packagingused
%29.0947.8256.76
Zhenjiang SiteCartonNo.8,49240,800570,868Wooden crateNo.1,25121,81343,577Recyclable packaging usedNo.12,54033,82114,471Proportion of recyclable packagingused
%56.2835.072.30
Social Performance
The total number of employees includes full-time equivalents within and outside of China.
The “management” in the ESG Performance Table refers to employees who are at the manager level and above.
A manager is an employee in the “managerial queue”.
The total energy consumption accounting method is mainly based on General Rules for Calculation of the Comprehensive Energy Consumption (GB/T2589-2020) with all data calibers include electricity, steam, natural gas equivalent discounts, and photovoltaic discounts of 0.
Energy consumption intensity = Total energy consumption ÷ CNY 1 million of operating income
During the reporting period, we checked the data of previous years retrospectively and revised the data of “total water consumption” for 2021 and 2022(original data: 1,063,482 tonnes and 1,994,922 tonnes) disclosed in the 2022 Environmental, Social and Governance (ESG) Report, adjusted the name to“water consumption” and revised simultaneously the data of “water consumption density” for 2021 and 2022.
During the reporting period, we checked the data of previous years retrospectively and revised the data of “total consumption of recycled water” for 2021and 2022 (original data: 472,621 tonnes and 595,969 tonnes) disclosed in the 2022 Environmental, Social and Governance (ESG) Report.
Packaging material data comes from the incoming volume of Ganzhou and Zhenjiang site. The recyclable packaging at Ganzhou site consists of materialracks, while that of Zhenjiang site consists of material racks, plastic boxes, and pallet collars. Zhenjiang site increased the use of small packaging withexport volume in 2023, replacing the original large packaging and leading to an increased carton packaging and decreased proportion of recyclablepackaging consumed. During the reporting period, we checked the data of previous years retrospectively and revised the data of "carton used" "Recyclablepackaging used" and "proportion of recyclable packaging used" at Ganzhou site for 2022 (original data: 55,263 pieces, 45,517 sets and 45.2%) disclosedin the 2022 Environmental, Social and Governance (ESG) Report.
Rate of recyclable packaging consumed at Ganzhou site = recyclable packaging consumed ÷ (consumption of recyclable packaging + paper boxconsumed)
Rate of recyclable packaging consumed at Zhenjiang site = recyclable packaging consumed ÷ (paper box + wooden box + consumption of recyclablepackaging)
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
111112Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and ActionsDiversity and InclusionProportion of females in management positions (Managerlevel and above)
%12.5613.6913.26Proportion of females in junior management positions(Supervisory level and above)
%19.8719.2117.48Proportion of females in senior management positions(Statutory senior managers)
%20.0020.0020.00Proportion of females in R&D positions%14.6416.8415.49Proportion of employees from ethnic minorities ordisadvantaged groups
%-3.563.05Number of employees with disabilitiesPerson396650
Occupational health and safety
Health and SafetyLost-time injury rate
-0.740.910.88Number of work-related accidentsNo.81513Number of recordable work-related injuries
Person81513Number of work-related deathsPerson000Total number of hours lost due to work-related injuries
Hour2,411.007,342.501,507.50Safety drills
Time284642Number of safety training sessionsTime448483631Number of employees participating in safety trainingPerson times16,62617,69011,474Coverage of safety training%100100100Proportion of premises assessed for employee health andsafety risks
%100100100Proportion of employees represented on formal jointbusiness management and labor health and SafetyProduction Management Committees
%100100100Proportion of operating facilities certied to ISO 45001%100100100
Occupational health and safety
IndicatorUnit202120222023
IndicatorUnit202120222023
IndicatorUnit202120222023
Lost-time accident rate = lost-time injuries ÷ total hours worked x 1,000,000
During the reporting period, Farasis Energy traced and checked the data of previous years, and the work-related accidents did not cover tra?c accidentson the way to and from work, and revised the “recordable work-related injuries” data in 2021 and 2022 (the original data were 11 and 14 respectively)disclosed in the 2022 Environmental, Social and Governance (ESG) Report.
During the reporting period, Farasis Energy traced and checked the data of previous years, and the work-related accidents did not cover tra?c accidentson the way to and from work, and revised the data of “total working hours lost due to work-related injuries” in 2021 and 2022 (the original data were 3,824hours and 2,808 hours, respectively) disclosed in the 2022 Environmental, Social and Governance (ESG) Report.
During the reporting period, we checked the data of previous years retrospectively and revised the data of “safety drills” for 2022 (original data: 49 times)disclosed in the 2022 Environmental, Social and Governance (ESG) Report.
The scope of data statistics in 2021 is the Ganzhou site, and the safety training data of some suppliers cannot be traced. The scope of data statistics in2022 and 2023 is the two sites in Ganzhou and Zhenjiang.
Annual new recruitsPerson2,2945,4135,724
By genderNumber of new male employeesPerson1,6293,8484,306Number of new female employeesPerson6651,5651,418
By ageNumber of new employees aged ≤30Person1,2143,5523,728Number of new employees aged 31-40Person9511,7331,824Number of new employees aged 41-50Person123121142Number of new employees aged >50Person6730
By typeSocial recruitmentPerson2,2335,2725,599Campus recruitmentPerson61141125
By levelWhite collarPerson283181176General employeesPerson7741,4453,002Number of internal referral
Person1,0571,626466Cost of hiring new employeesCNY3,922,459.531,465,796.721,550,013.01Average recruitment cost
CNY2,901.231,174.521,052.37
Employee Recruitment
IndicatorUnit202120222023
A decrease in the number of blue-collar internal referrals at Zhenjiang site leads to a decrease in total data for 2023.
Average recruitment cost = total annual recruitment cost ÷ cumulative annual number of recruits.
Third-party Health and safetyLost-time injury rate-000Total number of lost-time accidentsNo.000Number of recordable work-related injuriesPerson000Number of work-related deathsPerson000Number of participants in supplier safety training
Person291,4041,762Coverage of supplier safety training%100100100
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
113114Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
Appendix
Shaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsVocational or skill-related training
Total training hours of all employeesHour-61,50373,999Average training hours
Hour-7.1211.29By genderAverage training hours for male employeesHour-7.3711.94Average training hours for female employeesHour-6.509.57
By levelAverage training hours for managementHour-6.8810.96Average training hours for general employeesHour-7.1511.33Annual employee training coverage
%-89.4153.27By genderCoverage of male employees%-89.7254.20Coverage of female employees%-88.6750.78
By levelCoverage of management%-98.1268.49Coverage of general employees%-88.3351.62Average amount spent on training and development offull-time employees
CNY-138.15193.82Protection of Employees’ Rights and Interests
Employee satisfaction/ engagement survey results%80.1277.4081.80Employee satisfaction/ engagement survey coverage%100100100Signing rate of labor contracts%100100100
Protection of Employees’ Rights and Interests
Coverage of social insurance%100100100Coverage rate of occupational health check-up%100100100Number of labor disputesNo.-45
Labor Union Management
Proportion of employees covered by formal collectiveagreements on working conditions
%100100100Proportion of employees covered by duly electedemployee representatives
%100100100Proportion of employees covered by Labor Union orcollective bargaining agreements in Ganzhou Site
%100100100Performance and RemunerationAnnual evaluation rate of individualperformance
%100100100Performance bonus system coverage%80.1277.4100Performance equity system coverage%12.117.046.82Performance pay system coverage%100100100Total employee-related costs (salaries +benets)
CNY768,798,280.071,183,257,464.271,220,790,737.64
IndicatorUnit202120222023
IndicatorUnit202120222023
IndicatorUnit202120222023
IndicatorUnit202120222023
The statistics come from the salary, bonus, welfare, social insurance and provident fund of all employees.
IndicatorUnit202120222023
Average training hours for employees = total training hours ÷ total number of employees; average training hours for employees by type = total traininghours for employees in that type ÷ total number of employees in that type, the same below. At the end of 2022, we carried out a trial run of digitaltransformation of our training work, synchronized with the digital transformation of training data and the digital transformation of training forms, withincomplete statistics of some data during the trial run, and the training budget tilted towards digital transformation projects. After the trial operation in 2023,the digital transformation of training work was basically completed, and it is expected that there will be a signicant shift and improvement in the number ofhours of employee training in the year 2024.
Annual employee training coverage = number of employees who participated in training and were on duty during the year ÷ total number of employees;Annual employee training coverage by type = number of employees in that type who participated in training and were on duty during the year ÷ total numberof employees in that type, the same below. During the reporting period, Farasis Energy's cost reduction and resource investment priorities resulted in adecrease in training coverage in 2023. As the company's digital training platform has not yet been fully and o?cially launched, some of the actual trainingthat has been carried out and o?ine training can not be included in the statistics.
Party BuildingNumber of general Party branch(es)No.111Number of Party branchesNo.224Number of Party members of the yearPerson599999Number of new members of the yearPerson264030Number of Party member activitiesTime142023Number of people covered by Party member activitiesPerson times538693
IndicatorUnit202120222023
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
115116Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsSupplier ManagementNumber of suppliers
No.269244282By regionNortheast ChinaNo.434North ChinaNo.7810East ChinaNo.142124143South ChinaNo.9790103Southwest ChinaNo.345Central ChinaNo.121315Northwest ChinaNo.100Hong Kong, Macao, and Taiwan of ChinaNo.000Overseas
No.322Proportion of targeted suppliers signing Supplier Code ofConduct
%--100Proportion of target suppliers assessed for corporate socialresponsibility
%-100100Proportion of purchasers trained in sustainable procurement%-100100Proportion of audited/assessed suppliers involved inimprovement actions or capacity development
%-100100Number of due diligence audits for mineral supply chainNo.-1019Total number of key suppliers
No.223213226Total number of Tier 1 suppliers
No.248217245Total number of key Tier 1 suppliers
No.223213226
Supplier Management
IndicatorUnit202120222023IndicatorUnit202120222023
Proportion of key Tier 1 supplier purchases to totalprocurement expenditure
%70.4198.4084.05number of suppliers that have undergone an ESG riskassessment in the past 3 years
No.-1026Number of Tier 1 suppliers that have undergone an ESG riskassessment in the past 3 years
No.-49Number of key non-Tier 1 suppliers that have undergone anESG risk assessment in the past 3 years
No.-617Number of suppliers classied as high ESG riskNo.000
Scientic and professional competence
Cumulative granted patentsNo.157213293Cumulative patent applicationsNo.267330485Annual granted patentsNo.375680Annual patents applicationsNo.5481155R&D investment
CNY 100million
5.415.987.49Increase in R&D expenses%45.6210.5125.25R&D expenses of total operating revenue
%15.465.164.56Number of core technicianPerson61111Average number of years for launching all new products
Year1.170.831.33Module process innovation project to reduce costsCNY66,117,0005,972,76065,708,000
Customer Base Size and Service
Total customer complaints
No.-747987Number of complaints closedNo.-736946Closure rate of customer complaints
%-98.5395.85
IndicatorUnit202120222023
IndicatorUnit202120222023
Proportion of purchases from key Tier 1 suppliers in total procurement expenditure = annual purchases from key Tier 1 suppliers for material procurement÷ total annual purchases within the scope of supplier data statistics.
The share of R&D expenses was diluted as shipments led to a signicant increase in the Group’s revenue.
The company counts the projects N that are closed each year, and calculates the time T1,T2...SOP for each project, and the average value is (T1+T2+...)....TN, the average value is (T1+T2+... +TN)/N.
The scope of data statistics is the company’s two sites in Ganzhou and Zhenjiang. During the reporting period, we checked the data of previous yearsretrospectively and revised the data of “total numbers of customer complaints” and “customer complaint closure rate” for 2022 (original data: 779 casesand 97%) disclosed in the 2022 Environmental, Social and Governance (ESG) Report.
The statistics of total customer complaints come from the number of projects initiated by customer complaints.
Customer complaints closure rate = number of closures for the year ÷ total number of complaints. Unclosed complaints from the U.S. and Europeancustomers concern the cycle of returning defective products to the selling country, which a?ects the progress of problem analysis.
The scope of suppliers is primarily material suppliers and suppliers with purchases greater than 10 million CNY, such as equipment and MRO, excludinglogistics and professional services.
Overseas suppliers are not included in the statistics of Voron Technology’s overseas entities, such as FEE, FEU and SIRO.
Target suppliers are those based on internal supplier development and procurement control procedures.
Key suppliers are the Company’s Class A material suppliers and high-volume/non-replaceable suppliers in Class B/C.
Tier 1 suppliers are suppliers who directly supply products or services to the company.
Key Tier 1 suppliers are those key suppliers that supply directly to the company.
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
117118Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Information SecurityProportion of sites with TISAX AL2 certication%100100100Information security incidents occurredNo.30244Number of attacks defendedTime47,561,10179,268,50226,843,751Protection rate%99.9999.99599.99Number of customer information leakage incidentsNo.000Loss caused by violation of relevant laws and regulationsCNY 10,000000
Community WelfareExternal donationCNY 10,000-16.222Non-monetary (goods or materials)CNY 10,0002.11213.15Number of employee volunteersPerson--15Volunteer activitiesSession789Number of volunteers participating in the activitiesPerson times535972
Rural RevitalizationFundsCNY 10,000100128109Non-monetary (goods or materials)CNY 10,0001.641.935.33No. of employee assisted through Employment Assistantprogram
Person161412
IndicatorUnit202120222023
IndicatorUnit202120222023
IndicatorUnit202120222023
Benchmarking Index for No. 1 of Shanghai Stock Exchange for Self-regulatory Guidelines of Listed Companies—Regulation of Operations
Indicator ContentsWhere to Find
8.1
Pursuing economic benets and protecting the interests of shareholders; protecting the legitimaterights and interests of creditors and employees; treating suppliers, customers and consumers withintegrity; practicing the concept of green development and actively engaging in environmentalprotection, community construction and other public welfare undertakings.
ESG Governance
8.2
In business activities, should follow the principles of voluntary, fair, equal pay, honesty and credit,abide by social morality, business ethics, and accept the supervision of the government and thepublic; shall not rely on exaggerated propaganda, false advertising and other improper ways toprot; Shall not engage in illegal activities such as bribery and smuggling to obtain undue benets.;shall not infringe on the trademark rights, patents and copyrights of others and other intellectualproperty rights; shall not engage in unfair competition.
Continuously ImprovingGovernance StructureAdhering to Integrity andCompliance in OperationCreating Cutting-edgeTechnology
8.3
Based on the industry in which it operates and its own business characteristics, the company shallform a social responsibility strategic plan and working mechanism that is in line with the company’sreality. The company’s social responsibility strategic plan should at least include the company’sbusiness ethics code, employee protection plan and career development support plan, technologyinvestment and research and development plan for rational use of resources and e?ectiveprotection of the environment, social development funding plan, and mechanism arrangement forimplementing, managing and monitoring the social responsibility plan.
ESG Governance
8.4
The social contribution value per share disclosed in the annual social responsibility report iscalculated by adding to the basic earnings per share created by the company for shareholders,the amount of value created for other stakeholders such as taxes created by the company forthe state, wages paid to employees, interest paid on loans to banks and other creditors, and theamount of external donations made by the company, and deducting other social costs incurred bythe company due to environmental pollution, etc., to form the value added per share created by thecompany for the society.
ESG Performance Table
8.5
SSE Corporate Governance Panel sample companies listed on the Exchange, companies listed bothdomestically and internationally, and nancial companies shall disclose their social responsibilityreports (hereinafter referred to as social responsibility reports) at the same time as their annualreports. The Exchange encourages other listed companies in a position to do so to disclose non-nancial reports, such as social responsibility reports, at the same time as the annual report.If a company discloses a social responsibility report, the board of directors shall consider itseparately and disclose it on the website of the Institute.
-
8.6
Construction and implementation of social responsibility systems regarding employee protection,environmental pollution, commodity quality, community relations, etc.
Protecting Basic Rights andInterests of EmployeesEmbracing New Trends inGreen DevelopmentOverall Consolidation ofQuality ManagementCommunity CharityProblems and shortcomings in the fulllment of social responsibility, and the gaps with theseguidelines, along with their reasons.Improvement measures and specic time schedule.
8.7
Listed companies should establish a system for the selection and appointment of employeedirectors and employee supervisors in accordance with the provisions of the Company Law and thearticles of incorporation to ensure that employees enjoy full rights in corporate governance; supportlabor unions in carrying out their work in accordance with the law, listen to employees’ opinionson matters of immediate interest to them, such as wages, benets, labor safety and health, socialinsurance, etc., through democratic forms such as employee congresses and labor union meetings,and care for and pay attention to reasonable needs of employees.
Protecting Basic Rights and
Interests of Employees
8.8
Comply with environmental protection laws and regulations and industry standards.
Committed to NaturalEcosystem ConservationDevelop and implement the company’s environmental protection plan.
Embracing New Trends in
Green DevelopmentE?cient use of natural resources such as energy, water and raw materials.
Embracing New Trends in
Green Development
Advancing E?cient
Resource Utilization
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
119120Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
Appendix
Shaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
Compliant disposal of pollutants.
Committed to Natural Ecosystem
ConservationConstruction and operation of e?ective pollution control facilities.
Committed to Natural Ecosystem
ConservationFull payment of taxes and fees related to environmental protection.
Embracing New Trends in Green Development
ESG Performance TableSafeguarding the supply chain environment.
Enhancing Supply Chain ResilienceSustainable Supply Chain Risk ManagementOther environmental protection responsibilities that should be fullled.
Embracing New Trends in Green DevelopmentAdvancing E?cient Resource Utilization
Committed to Natural Ecosystem
ConservationESG Performance Table
8.9
The company’s environmental protection policy, annual environmental protectionobjectives and e?ectiveness.
Embracing New Trends in Green DevelopmentTotal annual resource consumption of the company.
Advancing E?cient Resource UtilizationESG Performance TableCompany’s environmental investment and environmental technology development.
Embracing New Trends in Green Development
ESG Performance TableTypes, quantities, concentrations and destinations of pollutants discharged by thecompany.
Committed to Natural Ecosystem
Conservation
ESG Performance TableConstruction and operation of the company’s environmental protection facilities.Embracing New Trends in Green DevelopmentThe treatment and disposal of waste generated by the company in the productionprocess, the recycling and comprehensive utilization of waste products.
Committed to Natural Ecosystem
ConservationVoluntary agreements with environmental authorities to improve environmentalbehavior.
Not ApplicableThe company was rewarded by the environmental protection department.Not ApplicableOther environmental information voluntarily disclosed by enterprises.
Embracing New Trends in Green DevelopmentAdvancing E?cient Resource UtilizationCommitted to Natural Ecosystem
ConservationESG Performance Table
8.10
The company has new, reform, expansion of construction projects with signicantenvironmental impact and other major investment behavior.
Not ApplicableThe company is investigated by the environmental protection department forenvironmental violations, or is subject to signicant administrative or criminalpenalties, or is subject to a decision by the relevant people’s government orgovernment department to impose a deadline for treatment or to suspend, relocateor close down production.
Not ApplicableThe company is involved in signicant litigation or its major assets are seized,seized, frozen or pledged or mortgaged due to environmental issues.
Not ApplicableThe company or its major subsidiaries are listed as key emission units by the stateenvironmental protection department.
Our Zhenjiang site is the major air emissionunit and has been disclosed in the 2023
Annual Report.
8.10
Newly announced environmental laws, rules, regulations, and industry policies mayhave a signicant impact on the Company’s operations.
Adhering to Integrity and Compliance in
OperationOther signicant events related to environmental protection that may have a signicantimpact on the trading price of the company’s stock and its derivatives.
Not Applicable
8.11
The listed company shall regularly assign a person to check the implementation of theenvironmental protection policy and shall correct any behavior that does not complywith the company’s environmental protection policy and take appropriate remedialmeasures.When a company experiences a signicant environmental pollution incident, itshould promptly disclose the causes of the environmental pollution, its impact on thecompany’s performance, the extent of the environmental impact, and the recticationmeasures the company intends to take.
Embracing New Trends in Green
Development
8.12
The name of the company’s pollutants, the mode of emission, the concentration andtotal amount of emission, exceeding the standard and total amount.
Committed to Natural Ecosystem
ConservationESG Performance TableConstruction and operation of the company’s environmental protection facilities.
Embracing New Trends in Green
DevelopmentCommitted to Natural Ecosystem
ConservationCompany environmental pollution accident emergency plan.
Committed to Natural Ecosystem
ConservationThe measures taken by the company to reduce pollutant emissions and future workarrangements.
Committed to Natural Ecosystem
Conservation
8.13
Compliance with product safety laws and regulations and industry standards.
Overall Consolidation of Quality
ManagementEstablish a safe and reliable production environment and production process.
Overall Consolidation of Quality
ManagementEstablish product quality and safety assurance mechanisms and product safetyaccident emergency response programs.
Overall Consolidation of Quality
ManagementOther production and product safety responsibilities should be performed.
Overall Consolidation of Quality
Management
8.14
Establishing management systems for hiring and ring employees, compensation andbenets, social insurance, working hours, etc. and measures to deal with violations.
Protecting Basic Rights and Interests of
EmployeesCreating a Fair Environment for GrowthPracticing Employer's Humanistic CareEstablish a working environment and supporting safety measures to preventoccupational hazards.
Firmly Constructing a Safe and Healthy
Line of DenfenseConduct necessary employee knowledge and vocational skills training.Creating a Fair Environment for GrowthOther employee rights protection responsibilities that should be fullled.
Protecting Basic Rights and Interests of
EmployeesCreating a Fair Environment for GrowthFirmly Constructing a Safe and Healthy
Line of DenfensePracticing Employer's Humanistic Care
8.15
Listed companies should strictly abide by the code of scientic ethics, respect the spiritof science, adhere to the proper values, social responsibility and code of conduct, andfully leverage the positive e?ects of science and technology.The company shall avoid research, development and use of science and technologythat endangers the natural environment, life and health, public safety, ethics andmorality, and shall not engage in research and development and business activitiesthat violate the fundamental rights of individuals or harm the public interest of society.Companies that develop or use innovative technologies in life sciences, articialintelligence, information technology, ecology and environment, new materials andother areas of scientic and technological innovation should follow prudent and soundprinciples and fully assess their potential impact and reliability.
Creating a Fair Environment for GrowthOverall Consolidation of Quality
ManagementPerfecting Information Security
ManagementEmbracing New Trends in Green
Development
Indicator ContentsWhere to FindIndicator ContentsWhere to Find
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
121122Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energyin 2023
ESGGovernance
Appendix
Shaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and Seizing
Industrial Opportunities
Beneting Society Through Kindness
and ActionsGRI Standards Index
Guideline
Farasis Energy reported the information cited in this GRI Content Index during the periodJanuary 1, 2023 through December 31, 2023 by reference to the GRI Standards.Standard referencesGRI 1：
Basis 2021
GRI 2: General Disclosures 20212-1Organizational detailsAbout Farasis Energy
2-2Entities included in the organization’s sustainability reportingAbout This Report2-3Reporting period, frequency and contact pointAbout This Report
2-4Restatements of informationESG Performance Table2-5External assurance
Third Party AssuranceReport2-6Activities, value chain and other business relationshipsAbout Farasis Energy2-7EmployeesSDG-8, SDG-10
Protecting Basic Rights andInterests of EmployeesESG Performance Table2-8Workers who are not employeesSDG-8
All-round Supply ChainManagementESG Performance Table2-9Governance structure and compositionSDG-5, SDG-16
Continuously ImprovingGovernance StructureESG GovernanceESG Performance Table2-10Nomination and selection of the highest governance bodySDG-5, SDG-16
Continuously ImprovingGovernance Structure2-11Chair of the highest governance bodySDG-16-2-12
Role of the highest governance body in overseeing themanagement of impacts
SDG-16
Continuously ImprovingGovernance Structure
ESG Governance
2-13Delegation of responsibility for managing impacts
Continuously ImprovingGovernance Structure
ESG Governance
2-14Role of the highest governance body in sustainability reportingESG Governance
2-15Conicts of interestSDG-16
Adhering to Integrity andCompliance in Operation
2-16Communication of critical concerns
Continuously ImprovingGovernance Structure
ESG Governance
2-17Collective knowledge of the highest governance bodyESG Governance
2-18Evaluation of the performance of the highest governance body-2-19Remuneration policies-
2-20Process to determine remuneration-
2-21Annual total compensation ratio-2-22Statement on sustainable development strategy
Message from the ChairmanESG Governance2-23Policy commitmentsSDG-16
Adhering to Integrity andCompliance in OperationSupplier Code of Conduct2-24Embedding policy commitments
Adhering to Integrity andCompliance in OperationSupplier Code of Conduct2-25Processes to remediate negative impacts
Acceptance of ExternalSupervisionPerfecting InformationSecurity ManagementResponsible MineralManagementESG Performance Table2-26Mechanisms for seeking advice and raising concernsSDG-16
Acceptance of ExternalSupervisionPerfecting InformationSecurity ManagementResponsible MineralManagementESG Performance Table
2-27Compliance with laws and regulations
Adhering to Integrity andCompliance in OperationAdvancing E?cientResource UtilizationCommitted to NaturalEcosystem ConservationOverall Consolidation ofQuality ManagementPerfecting InformationSecurity ManagementESG Performance Table2-28Membership associations-2-29Approach to stakeholder engagementESG Governance2-30Collective bargaining agreementsSDG-8
Protecting Basic Rights andInterests of EmployeesESG Performance TableGRI 3: Material Topics 20213-1Process to determine material topicsESG Governance3-2List of material topicsESG Governance3-3Management of material topicsESG Governance
GRI 201: Economic Performance 2016201-1Direct economic value generated and distributedSDG-8, SDG-9ESG Performance Table201-2
Financial implications and other risks and opportunities due toclimate change
SDG-13
Embracing New Trends inGreen Development201-3Dened benet plan obligations and other retirement plans
Practicing Employer'sHumanistic Care
GRI Standard Indicator ContentsSustainable Development GoalsWhere to Find
GRI Standard Indicator ContentsSustainable Development GoalsWhere to Find
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
123124Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality with
High-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
201-4Financial assistance received from government-
GRI 202: Market Presence 2016202-1
Ratios of standard entry level wage by gender compared tolocal minimum wage
SDG-1, SDG-5, SDG-8-202-2
Proportion of senior management hired from the localcommunity
SDG-8-
GRI 203: Indirect Economic Impacts 2016203-1Infrastructure investments and services supportedSDG-5, SDG-9, SDG-11Community Charity
203-2Signicant indirect economic impactsSDG-1, SDG-3, SDG-8Community Charity
GRI 204: Procurement Practices 2016204-1Proportion of spending on local suppliersSDG-8-
GRI 205: Anti-corruption 2016205-1Operations assessed for risks related to corruptionSDG-16
Adhering to Integrity andCompliance in OperationESG Performance Table205-2
Communication and training about anti-corruption policies andprocedures
SDG-16
Adhering to Integrity andCompliance in OperationESG Performance Table205-3Conrmed incidents of corruption and actions takenSDG-16ESG Performance Table
GRI 206: Anti-competitive Behavior 2016206-1
Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices
SDG-16ESG Performance TableGRI 207: Tax 2019207-1Approach to taxSDG-1, SDG-10, SDG-17
Embracing the Era of TaxTransparency207-2Tax governance, control, and risk managementSDG-1, SDG-10, SDG-17
Embracing the Era of TaxTransparency207-3
Stakeholder engagement and management of concerns relatedto tax
SDG-1, SDG-10, SDG-17
Embracing the Era of TaxTransparency207-4Country-by-country reportingSDG-1, SDG-10, SDG-17
Embracing the Era of TaxTransparencyGRI 301: Materials 2016301-1Materials used by weight or volumeSDG-8, SDG-12
Advancing E?cientResource UtilizationESG Performance Table301-2Recycled input materials usedSDG-8, SDG-12
Advancing E?cientResource UtilizationESG Performance Table301-3Reclaimed products and their packaging materialsSDG-8, SDG-12
Advancing E?cientResource UtilizationGRI 302: Energy 2016302-1Energy consumption within the organization
SDG-7, SDG-8, SDG-12,
SDG-13
Embracing New Trends inGreen DevelopmentESG Performance Table
302-2Energy consumption outside of the organization
SDG-7, SDG-8, SDG-12,SDG-13
-302-3Energy intensity
SDG-7, SDG-8, SDG-12,SDG-13
Embracing New Trends inGreen DevelopmentESG Performance Table302-4Reduction of energy consumption
SDG-7, SDG-8, SDG-12,SDG-13
Embracing New Trends inGreen Development302-5Reductions in energy requirements of products and services
SDG-7, SDG-8, SDG-12,SDG-13
-GRI 303: Water and E?uents 2018303-1Interactions with water as a shared resourceSDG-6, SDG-12
Advancing E?cientResource UtilizationCommitted to NaturalEcosystem Conservation303-2Management of water discharge-related impactsSDG-6
Committed to NaturalEcosystem Conservation303-3Water withdrawalSDG-6-303-4Water dischargeSDG-6-303-5Water consumptionSDG-6
Advancing E?cient
Resource UtilizationESG Performance TableGRI 304: Biodiversity 2016304-1
Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outsideprotected areas
SDG-6, SDG-14, SDG-15
Committed to NaturalEcosystem Conservation304-2
Signicant impacts of activities, products and services onbiodiversity
SDG-6, SDG-14, SDG-15
Committed to NaturalEcosystem Conservation304-3Habitats protected or restoredSDG-6, SDG-14, SDG-15-304-4
IUCN Red List species and national conservation list specieswith habitats in areas a?ected by operations
SDG-6, SDG-14, SDG-15-GRI 305: Emissions 2016305-1Direct (Scope 1) GHG emissions
SDG-3, SDG-12, SDG-13,
SDG-14, SDG-15
Embracing New Trends inGreen DevelopmentESG Performance Table305-2Energy indirect (Scope 2) GHG emissions
SDG-3, SDG-12, SDG-13,
SDG-14, SDG-15
Embracing New Trends inGreen DevelopmentESG Performance Table305-3Other indirect (Scope 3) GHG emissions
SDG-3, SDG-12, SDG-13,
SDG-14, SDG-15
-305-4GHG emissions intensitySDG-13, SDG-14, SDG-15
Embracing New Trends in
Green DevelopmentESG Performance Table
305-5Reduction of GHG emissionsSDG-13, SDG-14, SDG-15-
305-6Emissions of ozone-depleting substances (ODS)SDG-3, SDG-12-
GRI Standard Indicator ContentsSustainable Development GoalsWhere to FindGRI Standard Indicator ContentsSustainable Development GoalsWhere to Find
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
125126Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
Appendix
Shaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other signicantair emissions
SDG-3, SDG-12, SDG-14,SDG-15
Committed to NaturalEcosystem ConservationESG Performance TableGRI 306: Waste 2020306-1Waste generation and signicant waste-related impacts
SDG-3, SDG-6, SDG-11,SDG-12
Committed to NaturalEcosystem Conservation306-2Management of signicant waste-related impacts
SDG-3, SDG-6, SDG-8,SDG-11, SDG-12
Committed to NaturalEcosystem Conservation306-3
Waste generated
SDG-3, SDG-6, SDG-11,SDG-12, SDG-15
Committed to NaturalEcosystem ConservationESG Performance Table306-4Waste diverted from disposalSDG-3, SDG-11, SDG-12
Committed to NaturalEcosystem ConservationESG Performance Table
306-5Waste directed to disposal
SDG-3, SDG-6, SDG-11,SDG-12, SDG-15
-
GRI 308: Supplier Environmental Assessment 2016308-1New suppliers that were screened using environmental criteria-308-2
Negative environmental impacts in the supply chain and actionstaken
Enhancing Supply ChainResilienceSustainable Supply ChainRisk ManagementResponsible MineralManagementESG Performance TableGRI 401: Employment 2016401-1New employee hires and employee turnoverSDG-5, SDG-8, SDG-10
Protecting Basic Rights andInterests of EmployeesESG Performance Table401-2
Benets provided to full-time employees that are not provided totemporary or part-time employees
SDG-3, SDG-5, SDG-8
Practicing Employer'sHumanistic Care401-3Parental leaveSDG-5, SDG-8-
GRI 402: Labor/Management Relations 2016402-1Minimum notice periods regarding operational changesSDG-8-
GRI 403: Occupational Health and Safety 2018403-1Occupational health and safety management systemSDG-8
Firmly Constructing aSafe and Healthy Line of
Denfense403-2Hazard identication, risk assessment, and incident investigationSDG-8
Firmly Constructing aSafe and Healthy Line of
Denfense
403-3Occupational health servicesSDG-8
Firmly Constructing aSafe and Healthy Line ofDenfense403-4
Worker participation, consultation, and communication onoccupational health and safety
SDG-8, SDG-16
Firmly Constructing aSafe and Healthy Line ofDenfense403-5Worker training on occupational health and safetySDG-8
Firmly Constructing aSafe and Healthy Line ofDenfense403-6Promotion of worker healthSDG-3
Firmly Constructing aSafe and Healthy Line ofDenfense
Practicing Employer'sHumanistic Care403-7
Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationships
SDG-8
Firmly Constructing aSafe and Healthy Line ofDenfense403-8
Workers covered by an occupational health and safetymanagement system
SDG-8
Firmly Constructing aSafe and Healthy Line ofDenfenseESG Performance Table403-9Work-related injuriesSDG-3, SDG-8, SDG-16
Firmly Constructing aSafe and Healthy Line ofDenfenseESG Performance Table403-10Work-related ill healthSDG-3, SDG-8, SDG-16
Firmly Constructing aSafe and Healthy Line ofDenfenseESG Performance TableGRI 404: Training and Education 2016404-1Average hours of training per year per employeeSDG-4, SDG-5, SDG-8, SDG-10ESG Performance Table404-2
Programs for upgrading employee skills and transitionassistance programs
SDG-8
Creating a Fair Environment
for Growth404-3
Percentage of employees receiving regular performance andcareer development reviews
SDG-5, SDG-8, SDG-10ESG Performance TableGRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employeesSDG-5, SDG-8
Protecting Basic Rights andInterests of Employees405-2Ratio of basic salary and remuneration of women to menSDG-5, SDG-8, SDG-10ESG Performance Table
GRI 406: Non-discrimination 2016406-1Incidents of discrimination and corrective actions takenSDG-5, SDG-8
Protecting Basic Rights and
Interests of Employees
GRI 407: Freedom of Association and Collective Bargaining 2016407-1
Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk
SDG-8
Sustainable Supply Chain
Risk ManagementProtecting Basic Rights and
Interests of EmployeesESG Performance Table
GRI 408: Child Labor 2016408-1
Operations and suppliers at signicant risk for incidents of childlabor
SDG-5, SDG-8, SDG-16
Sustainable Supply Chain
Risk ManagementProtecting Basic Rights and
Interests of Employees
GRI Standard Indicator ContentsSustainable Development GoalsWhere to FindGRI Standard Indicator ContentsSustainable Development GoalsWhere to Find
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
127128Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About FarasisEnergy
Farasis Energyin 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and SeekingCommon DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and ActionsThird Party Assurance Report
GRI 409: Forced or Compulsory Labor 2016409-1
Operations and suppliers at signicant risk for incidents offorced or compulsory labor
SDG-5, SDG-8
Sustainable Supply ChainRisk ManagementProtecting Basic Rights andInterests of Employees
GRI 410: Security Practices 2016410-1
Security personnel trained in human rights policies orprocedures
SDG-16-GRI 411: Rights of Indigenous 2016411-1Incidents of violations involving rights of indigenous peoplesSDG-2-
GRI 413: Local Communities 2016413-1
Operations with local community engagement, impactassessments, and development programs
Community CharityEmployee Volunteering413-2
Operations with signicant actual and potential negative impactson local communities
SDG-1, SDG-2
Community CharityEmployee Volunteering
GRI 414: Supplier Social Assessment 2016414-1New suppliers that were screened using social criteriaSDG-5, SDG-8, SDG-16
Sustainable Supply ChainRisk Management414-2Negative social impacts in the supply chain and actions takenSDG-5, SDG-8, SDG-16
Sustainable Supply ChainRisk ManagementGRI 415: Public Policy 2016415-1Political contributionsSDG-16-
GRI 416: Customer Health and Safety 2016416-1
Assessment of the health and safety impacts of product andservice categories
Overall Consolidation ofQuality Management416-2
Incidents of non-compliance concerning the health and safetyimpacts of products and services
SDG-16
Overall Consolidation ofQuality Management
GRI 417: Marketing and Labeling 2016417-1Requirements for product and service information and labelingSDG-12
Overall Consolidation ofQuality Management417-2
Incidents of non-compliance concerning product and serviceinformation and labeling
SDG-16
Overall Consolidation ofQuality Management417-3
Incidents of non-compliance concerning marketingcommunications
SDG-16
Adhering to Integrity andCompliance in OperationGRI 418: Customer Privacy 2016418-1
Substantiated complaints concerning breaches of customerprivacy and losses of customer data
SDG-16
Perfecting InformationSecurity Management
GRI Standard Indicator ContentsSustainable Development GoalsWhere to Find
| 1 |
Independent Assurance Statement
IntroductionT?V Rheinland (Shanghai) Co., Ltd., member of T?V Rheinland Group, Germany (hereinafter “T?VRheinland”, “We”) has been entrusted by the management of Farasis Energy (Ganzhou) Co., Ltd. (hereinafter“Farasis”, “the Company”) to conduct independent assurance of Farasis 2023 Environmental, Social andCorporate Governance (ESG) Report (hereinafter “the Report”). All contractual contents for this assuranceengagement rest entirely within the responsibility of Farasis. Our task was to give a fair and adequate judgmenton the Report.The intended users of this assurance statement are stakeholders who have relevance to Farasis’ overall ESGperformance and impacts of its business activities during year 2023 (1 January 2023 ~ 31 December 2023).T?V Rheinland is a global service provider of Corporate Social Responsibility (CSR) & Sustainability Services inover 65 countries, having qualified professionals in the field of Corporate Sustainability Assurance, Environment,Social and Stakeholder Engagement. We have maintained complete impartiality and independence during theassurance engagement, and we were not involved in the preparation of the Report contents.
Assurance StandardT?V Rheinland undertook the assurance work in accordance with the AA1000 Assurance Standard v3(AA1000AS v3) Moderate level of assurance.Scope & Type of Assurance
Our assurance engagement was carried out in accordance with the AA1000AS v3, Type 1, Moderate level onFarasis ESG performance information and data disclosed in the Report. The following assurance criteria wereused in performing the assurance work:
? With reference to GRI Sustainability Reporting Standards (GRI Standards)? Shanghai Stock Exchange's Self-Regulatory Guidelines for Listed Companies No. 1 - StandardizedOperation? The United Nations Sustainable Development Goals (UN SDGs)? Adherence to the AA1000 AccountAbility Principles of Inclusivity, Materiality, Responsiveness, and Impact.
Assurance Methodology
Our assurance activities included:
? Reviewing the company's management practices and processes to evaluate environmental, social and
corporate governance system, including ESG strategy, corporate governance, compliance management,risk management, stakeholder communication, material issue analysis, and ESG-related keyperformance.? Conducting interviews with company management and managers responsible for gathering andanalyzing information on ESG performance.? Reviewing and examining ESG management practices and performance information and data to test theaccuracy of such information and data based on a sample basis and applied analytical procedures.? Collecting documentary evidence and assessing management representations to support adherence to
the AccountAbility Principles.
Limitations
Appendix
AppendixShaping Corporate Governance withCompliance Concepts
| Shaping Corporate Governance with Compliance Concepts | Showcasing Determination on Green Development through Low-carbon Practices | Accumulating Strength and Seizing Industrial Opportunities | Managing with Due Diligence and Seeking Common Development | Stimulating Talent Vitality with High-Quality Environment | Beneting Society Through Kindness and Actions | ||
129130Environmental, Social, and Corporate Governance (ESG) ReportFarasis Energy (Ganzhou) Co., Ltd.About ThisReport
Message fromthe Chairman
About Farasis
Energy
Farasis Energy
in 2023
ESGGovernance
AppendixShaping Corporate Governance with
Compliance Concepts
Managing with Due Diligence and Seeking
Common DevelopmentShowcasing Determination on Green Development
through Low-carbon Practices
Stimulating Talent Vitality withHigh-Quality EnvironmentAccumulating Strength and SeizingIndustrial Opportunities
Beneting Society Through Kindness
and Actions
| 2 |
T?V Rheinland performed the assurance based on the scope of defined engagement agreement, and on amoderate level assurance under the AA1000AS for engagement. Information and performance data subject toassurance is limited to the contents of the Report.Our assurance work did not cover financial report and its financial data, and other information not related tosustainability.
Conclusions
Based on our methodology and activities performed within the scope of this assurance, we can reach aconclusion that no instances or information came to our attention that would be to the contrary of the statementmade as below:
? Farasis 2023 ESG report and its contents adhere to the AA1000 AccountAbility Principles.? Farasis has implemented management processes, including an energy and carbon emissions datamanagement system to collect and aggregate key performance data related to material issues within thereporting boundary, while the company identifies, evaluates, defines and manages material issues.? The ESG-related information and performance indicators disclosed in this report have been evaluatedand supported by documentary evidence, to truly reflect Farasis’ ESG management practice.T?V Rheinland shall not bear any liability or responsibility to a third party for perception and decision on Farasisbased on this Assurance Statement.
Adherence to the AA1000 AccountAbility PrinciplesInclusivityFarasis has established a stakeholder engagement procedure. The company's identified key stakeholders includeemployees, governments and regulators, shareholders and investors, customers, suppliers and partners,communities and social organizations. Supporting evidence demonstrates that the company conducted researchand analysis on ESG-related issues with these stakeholders in 2023 to understand their priorities and adjustmanagement strategies to respond appropriately.
MaterialityBased on the interpretation of regulatory policies, industry benchmarking, stakeholder research results, and thecompany's development strategy, Farasis identifies ESG issues for optimal management, and analyzes anddefines material issues from the two dimensions of "importance to stakeholders" and "importance to thecompany". As shown in the issue matrix diagram in the report, high-importance issues include, but are notlimited to, product quality and safety, employee rights protection, product development and innovation, andemployee health and safety.
ResponsivenessFarasis conducts multi-channel communication and dialogue with key stakeholders on ESG-related issues andresponds to the concerns of relevant parties in a timely and appropriate manner. Communication methodsinclude regular information disclosure, employee communication platform, employee training, supplier audit andtraining, industry association communication and cooperation, complaint hotline, and public welfare activities.The company updates or revises the supply chain due diligence policy, supplier code of conduct, supply chaingrievance and communication mechanism, etc., and publishes them on the official website.This report discloses key performance indicators and data that key stakeholders are interested in, coveringgreenhouse gas (GHG) emissions, other significant emissions and waste, energy consumption, watermanagement, occupational health and safety, employee management, and supplier management, and these datadisclosures are comparable.ImpactFarasis assessed the actual or potential impact of the company's own operations, business activities and upstreamand downstream supply chains on economic, environmental and social topics on material issues. The companyalso integrates ESG issue management into the company's operational management and risk management
| 3 |
processes. Supporting evidence shows that the company carried out compliance assessments on environmentaland safety, labor and employment, anti-bribery and anti-fraud, information security, intellectual property, andenergy management, and strengthened its supply chain due diligence process in 2023 to manage environmentaland social impacts on the company's operations and business.
Daniel Pan
Corporate Sustainability Service Technical ManagerT?V Rheinland (Shanghai) Co., LtdShanghai, China, 9 April 2024