国投罗钾盐田
PART
PART
CONTENTS
Ful?llment of Responsibilities:
Consolidating Cornerstones forSustainable Development
Governance philosophy for sustainable developmentSustainable Development Governance ObjectivesCommunication with StakeholdersAnalysis of Substantive Issues
Low-carbon Development:
Leading to a Green Future
Environmental ManagementGreen LightingEnergy ManagementResponding to Climate ChangeWater Resources ManagementEnvironmental Impact ControlGreen Operations
Team Building:
Shaping Workforce Cohesion
Labor Relations ManagementEmployee DevelopmentOccupational Health and Safety Production
Appendix
PART
PART
Enhancing Quality：
E?ciency to Drive Value Growth
Research and Development (R&D) and InnovationProduct LiabilityElevating Customer ExperienceSupply Chain ManagementDealer Management
Compliance Governance:
Building a Solid Foundationfor the Company
Corporate GovernanceRisk Control and Internal ControlRights and Interests of InvestorsBusiness EthicsInformation SecurityParty-building Governance
Glance at Pak
Company Pro?leOwnership StructureHistoryOverview of BusinessesHonors
About This ReportMessage from the ChairmanSustainable DevelopmentHighlights in 2023
PART
Devoted to Community Welfare：
Spreading Social Warmth
Lighting up Social ResponsibilityLighting up Rural RevitalizationLighting up Health Booster
Smart Strategies:
Illuminating the Path Ahead
Performance AppraisalIndicator IndexFeedback Form
Reporting ScopeThe subject of this report is "PAK" and its subsidiaries. Unless otherwise speci?ed, the scope of thisreport is consistent with that of the Company's annual report.
Reporting PeriodThis report covers a period from January 1, 2023 to December 31, 2023 ("Reporting Period"). Toenhance the comparability and foresight of this report, some sections will appropriately refer backto previous years or include forward-looking statements. This report is released on an annual basisto coincide with the ?nancial year.Preparation BasisNo. 2 Guidelines of the Shenzhen Stock Exchange for the Self-discipline Regulation of ListedCompanies - Standardized Operation of Companies Listed on the ChiNext (Revised in December 2023)Guidelines on Social Responsibility of Listed Companies of the Shenzhen Stock Exchange (2006)Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises(CASS-ESG 5.0) issuedby Chinese Academy of Social Sciences (CASS)Sustainability Reporting Standards of Global Sustainability Standards Board (GRI) (GRI Standards, 2021Edition)Sustainable Development Goals (SDGs) of the United NationsSustainability Accounting Standards Board (SASB) StandardsGuiding Opinions on the Fulfillment of Social Responsibility by Central Enterprisesof the State-ownedAssets Supervision and Administration Commission of the State CouncilSummary Report of Task Force on Climate-related Financial Disclosures (TCFD) under the FinancialStability Board
Description of Data
The data used in this report include the actual operational data of the Company, publicdata from government departments, annual financial data, and those data collectedfrom internal relevant statistical statements, third-party questionnaires and third-partyevaluation interviews. The financial data in this report is presented in CNY. For anydiscrepancy between this report and the financial statements, the financial statementsshall prevail. In the quantitative performance data, the data of "Nansha Base" is the sumof the data of the production base at No. 293 Caixin Road in Nansha District and the LEDintelligent lighting production base in Nansha District.Con?rmation and ApprovalThis report was approved by the Board of Directors of the Company on 23 April 2024 andwas released concurrently with the annual report. The Board of Directors has committed tomonitoring the contents of this report to ensure it contains no false records or misleadingstatements. They are accountable for the truthfulness, accuracy, and completeness of thereport.This report was released in Chinese and then translated into English. For any discrepancybetween the Chinese version and the English version, the Chinese version shall prevail.Access to this Report
This report can be accessed and downloaded from the website of the Company (http://www.PAK.com.cn) and the website of the Shenzhen Stock Exchange (http://www. szse.cn).
This report is the ?rst Environmental, Social and Governance Report ("ESG Report") issued by GuangdongPAK Corporation Co., Ltd. ("PAK", "the Company", or "we") In the principles of objectivity, standardization,transparency and comprehensiveness, this report elaborates the Company's environmental, social andcorporate governance practice and performance in 2023.
About This Report
To all respected stakeholders,Following the consecutive releases of our social responsibility reports, we have prepared our ?rst ESG report to provide you witha more comprehensive and in-depth understanding of our efforts in environmental protection, social responsibility, corporategovernance, and other aspects of sustainable development. We appreciate your time in reading this report, and we also eagerlyanticipate your constructive feedback. Your insights will greatly assist us in achieving better growth and serving consumers andsociety more e?ectively.
Message from the Chairman
It has been nearly 33 years since the founding of PAK. Overthese years, we have been dedicated to the lighting industry,evolving from nothing to a leading enterprise with a highmarket reputation in the domestic lighting industry. Everyachievement of the Company would not have been possiblewithout the support of all stakeholders, and is attributable toour business philosophy of upholding prudent managementand conducting business in good faith.Guided by this philosophy, we are committed to building anenvironment-friendly enterprise that prioritize sustainabledevelopment across our entire business chain, includingproduct development and design, enterprise management,and project construction. To reduce carbon emissionsthroughout our production and operation processes, wehave implemented several energy-saving and environmentalprotection initiatives. These include replacing the fuel forkliftsused in warehousing and logistics with electric forklifts,prioritizing the use of energy-saving and environmentallyfriendly materials in our products, and constructing adistributed photovoltaic power generation project onthe rooftop of our Nansha Base to provide clean energy.Additionally, our subsidiary company (a production base)in Zhaoqing has obtained provincial certification as a cleanproduction enterprise. In addition to our commitment toenvironmental protection in our production and operations,we closely monitor the technological evolution anddevelopment trends within the lighting industry. Whenevermore energy-efficient technologies emerge, we promptlyfollow up relevant research and swiftly integrate theseinnovations into our product applications. This proactiveapproach has enabled us to evolve our products from
incandescent lamps to fluorescent lamps and then to LEDlamps, always staying at the forefront of technologicalprogress. The application of new technologies has improvedthe energy efficiency of our products, and reduced energyconsumption and carbon emissions, thereby better protectingthe environment and mitigating global climate change. In2023, to enhance the energy-saving capabilities of our existingLED lighting products, we increased investment in the researchand development of high-efficiency lighting solutions. Wevigorously promoted intelligent lighting solutions to achievemaximum energy savings and reduce carbon emissions,thus contributing to a better global environment. Thecomprehensive energy-saving e?ects of the intelligent lightingrenovation projects implemented by the Company for clientsare remarkably evident. In some projects, the energy savingsrate reached as high as 80%, signi?cantly reducing the carbonemissions associated with these projects.Under the guidance of the philosophy of conductingbusiness in good faith, we consistently prioritize corporatesocial responsibility, making positive contributions toboth the industry and society and spreading positiveenergy. To promote the development of the industry, wehave established the PAK Lighting School which providesa platform for internship and growth for college studentsfree of charge while promoting the training of industrydesigners. We have initiated the "Lighting for Dreams: RuralClassroom Lighting Renovation"program, a public welfareinitiative aimed at providing healthy and comfortable campuslighting environments for rural children and teenagers inunderdeveloped areas to support their healthy growth.
Guided by the philosophy of conducting business in goodfaith, we uphold our corporate values of integrity, dedication,innovation, and win-win cooperation. We are committed tobalancing the interests of all stakeholders throughout ourdevelopment journey. We prioritize providing high-qualityproducts and services to our customers, fostering a conduciveworking environment for our employees' career advancement,and supporting our distributors and suppliers in realizing theirown value. Through these e?orts, we strive to achieve win-winoutcomes and foster mutual development.We believe that making money is not the sole purpose of acompany. Creating value for customers and meeting the needsof society and customers is the true value and foundationof a company's existence. We will persist in adhering to ourbusiness philosophy of upholding prudent management andconducting business in good faith. Starting with benevolenceand aiming for excellence, we will continuously enhance ourefforts in sustainable development and ESG practices. Weremain committed to our mission of "letting everyone feelthe charm of light"by creating a more comfortable, healthy,and intelligent lighting environment for consumers. We willrelentlessly pursue our vision of "becoming a leader in China'slighting industry". Let's conduct business in good faith andshare a better future together.
The Chairman of PAK
CNY
2023 Environmental, Social and Governance (ESG) Report
Sustainable DevelopmentHighlights in 2023
2,351.8234
millionOperating Income
204.8793
millionNet Pro?t Attributable to Shareholdersof the Listed Company
3,388.6397
millionTotal Assets
2,201.3333
millionNet Equity of Shareholders
1.1711
millionEnvironmental Input
22,087,897
kWhElectricity Consumption
151,795
tWater Consumption
15,746.73
tCO
eCarbon Emissions
67.9620
millionInvestment in R&D
Cumulative valid patents granted
New Application forInvention Patent
Total Valid Trademarks Registeredat Home And Abroad
Cumulative Software Copyrights
timesGovernance Performance
General Meeting ofShareholders Convened
timesMeetings of the Board ofSupervisors Convened
timesMeetings of the Board ofDirectors Convened
100%Signature Rare of theIntegrity Commitment incrucial positions
times
Internal Audits
timesTraining on Laws andRegulations
Social Performance
156.1154
millionTotal Taxes
31.45
ten thousandInput in Public Welfare
timesEmployee Training
hours
Total Employees' Training Duration
Economic Performance
Environmental Performance
R&DPerformance
CNYCNY
CNYCNY
CNYCNYCNY
Nansha LED Smart Lighting
Production Base
Zhaoqing Production BaseChongqing Production Base
Chongqing PAK Lighting Co., Ltd.Zhaoqing Dongsong Park Electrical Appliance Co, LtdGuangdong PAK Optoelectronic Industrial Co., LtdGuangdong PAK Smart Home Co., Ltd.Guangdong PAK Trading and Development Co., Ltd.Guangdong PAK Lighting Technology Co., Ltd.Zhongshan PAK Lighting Co., Ltd.Guangdong PAK Lighting Engineering Co., Ltd.Guangdong PAK International Trade Development Co., Ltd.Guangdong PAK Industrial Investment Fund PartnershipEnterprise (Limited Partnership)Shanglianke Lighting Co., Ltd.100%100%100%100%100%100%100%100%100%100%
99.9%
100%PT. Sinar PAK Indonesia
Production Base No. 293,Caixin Road,Nansha District
CompanyPro?le
Glance at PAK
Founded in 1991, "PAK"is a brand focusing on the development of lighting. In 2010,Guangdong PAK Corporation Co., Ltd. ("PAK", "the Company", or "we") was officiallyestablished to meet the growing market demand and provide comprehensive lightingsolutions. The Company is committed to promoting innovation and development in thelighting technology and offering industry-leading overall lighting solutions and professionalservices to customers. As one of the lighting brands with very comprehensive competitivestrength in China, the Company is headquartered in Guangzhou City, and has 4 majorproduction bases in Guangzhou, Zhaoqing, Chongqing, etc. The Company was successfullylisted on the Shenzhen Stock Exchange on March 17, 2017, with the stock abbreviationbeing "PAK"(stock code: 300625).After years of development, the product lines of the Company have covered fields suchas light sources, electrical appliances, commercial lighting, engineering lighting, outdoorlighting, household lighting, intelligent lighting, electrical engineering and HVAC. Whilemaintaining our leading position in commercial lighting, we have vigorously expanded intohousehold lighting and electrical projects, bringing products to thousands of households. Atthe same time, we actively enter the overseas market and strive to become an internationallighting enterprise.
Guangdong PAK Corporation Co., Ltd.Equity Structure
History
1991-1995
Founded and produced the firstelectronic ballast in 1991.Launched the first electronic ballast forfluorescent tubes, and established aproduct development strategy focusedon energy savingLaunched electronic supports forfluorescent lamps, taking the first steptowards energy-efficient lighting fixtures.
1996-2000Officially established the "PAK"brand,laying out a nationwide marketingnetwork.Launched energy-efficient CFL, forminga complete product line covering lightsources, electrical appliances, andlightingLaunched panels for fluorescentlamps and formally entered the field ofindustrial lighting.
2001-2005Obtained the national inspection-free productqualification as the first lighting fixtures and lightsource company in the industryBecome the first company advocating the lightingconcept of "Light Health"in the industry.·Obtained certification for energy-saving products inChina.Introduced the most comprehensive series of T5fluorescent lamps in the industry, and became aleader in new energy-saving and environment-friendlylighting products.Launched several series of metal halide electronicballasts and lamps and formally entered the field ofcommercial lighting.
2006-2010Launched LED series products and explored and triednew energy-saving lighting products.Awarded as the Recommended Brand of BeijingOlympic Games 2008 Gymnasiums construction andwon the tender of multiple Olympic GamesProducts used in 15 Olympic venues such as theNational Stadium (Bird's Nest) and China NationalConvention Center, and won the "Olympic ProjectContribution Award"by China's Building and ElectricalIndustry.Launched a full range of household lighting productsand formally entered the field of household lighting.
2011-2015Established the PAK Lighting SchoolLaunched a full range of LED products andfully entered the LED era.Launched intelligent lighting products,and explored the combination of lightingproducts and Internet technology.Conducted "light health"voluntary clinicactivities in residential communities.
2016-2020Won the "Second Prize of National Scientific andTechnological Progress Award"issued by the StateCouncil.Became the official partner of Manchester CityFootball Club in China for the 2016-2020 seasons.Listed on the Shenzhen Stock Exchange in 2017(Stock Code: 300625) with a brand-new logolaunched online, and fully upgraded the brandimage.Conducted "light health"voluntary clinic activitiesin office buildingsExpanded into intelligent products and intelligentsystemsInitiated the "Lighting for Dream"series of publicwelfare activities for the lighting renovation ofrural classrooms
2021
2022
Embarked on a new journey after 30-yeardevelopment, and established five-yearstrategic goals and plans.Fully promoted commercial/householdsmart products.Selected as the pilot projects for buildinga strong nation through brands
Supported Chinese athletes to win goldmedals in World Skills Competition
2023
Certified by Intertek's "Satellite Program"Supported the lighting construction ofvenues for the Hangzhou Asian Games
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Overview of Businesses
Main BusinessesPAK is mainly engaged inthe research, development,production, and sales of LEDlighting fixtures, lighting sources,and lighting control products,providing customers withcomprehensive lighting solutionsand related professional servicesto create a favorable lightingenvironment. Our productsare applied in various fieldsincluding commercial lighting,office lighting, industriallighting, household lighting,and outdoor lighting. Foroutdoor lighting projects,we have comprehensiveservice capabilities coveringdesign, product provision,construction, installation,commissioning, and projecthandover.The Company holds a strongbrand and market advantagesin professional lighting fieldssuch as commercial lightingand industrial lighting. We area holistic provider of lightingsolutions in the industrythat possess comprehensivecapabilities of providingintegrated lighting solutionscovering the design of lightingprojects, the R&D and after-sales service of lightingproducts, etc.
Business LayoutPAK possesses a comprehensivesales network and service system.By the end of the period, thecompany's commercial lightingbusiness segment had established55 offices nationwide, and thehome lighting business segmenthad 23 offices across the country.Each office is responsible formarket operations and salesmanagement in its respectiveregion. By the end of the period,the company's total number ofsales outlets across the countryhad exceeded 30,000, includingapproximately 3,000 exclusivestores, exclusive sales areas, andexclusive walls. At the same time,the company actively expandsits emerging e-commercebusiness. Customers can enjoyprofessional services in areassuch as product selection,lighting design, technicalconsultation, installation andmaintenance, and productafter-sales service.
Development StrategyWith the mission of "letting everyonefeel the charm of light"and the vision of"becoming a leader in China's lightingindustry", the Company focuses on thedevelopment of the large-scale lightingindustry, and adheres to the designphilosophy of supplying green, energy-efficient, healthy, and intelligent lightingproducts. Based on the marketingnetwork throughout the country, theCompany provides consumers withhigh-quality lighting products andcreates a healthy, comfortable andpleasant lighting environment.In 2021, the Company formulated theStrategic Plan of Guangdong PAK LightingCo., Ltd. for the Next Five Years (2021-2025),specifying the strategic positioning ofthe businesses and development fieldsof the Company for the next five years:
Mission: Let everyone feel the charm of lightingVision: To become a leader in the Chinese lighting industryValues: Integrity, Focus, Innovation,Win-win Cooperation
Strategy SystemCompany Culture
Strategic Implementation
Board Office WorkHuman ResourcesFinancial ManagementBrand ManagementInformation TechnologyManagementRisk Control
Supply ChainManagement
Production and QualityProduct and Research &DevelopmentMarketing Management
3 TransformationsBusiness FormTransformation
IntelligentTransformation
O2O Transformation
3 GoalsTop-tier comprehensivestrength domestically
Leading domesticcommercial lightingprovider
Cultivating a group of championsin segmented commerciallighting markets
Business Portfolio4 Core Businesses:
Intelligent LightingPublic SpacesReal EstateIndustrial Lighting
4 Strategic Development Businesses:
Intelligent Emergency LightingHotel LightingMunicipal Transportation LightingHome Lighting
4 Nurturing Businesses:
Electrical ProductsCommercial ChainOutdoor LandscapingPackaging
6 Strategic Development ChannelsProjectsDistributionRetailE-commerceOverseasHardware
10 Strategic Support Systems
Honors
AwardAwarderIntegration of Informatization and Industrialization ManagementSystem Certi?cate (Level 2A)
Taier Authentication CenterNational Intellectual Property Advantageous EnterpriseChina National Intellectual Property Administration2023 Green Sustainable Development Contribution Awardsyobserve.com, and gongyidaily.comTop Ten Lighting Appliance Enterprises in China's Light Industry
China National Light Industry Council, and China
Association of Lighting IndustryPreferred Brand of Xinhua Best in 2023xinhuanet.com(Industrial) In?uential Brand in 2023China Finance SummitKapok Design Award · 2023 Annual Product Design AwardKapok Design Award CommitteeProvincial Enterprise Technology Center
Department of Industry and Information Technology of
Guangdong Province2023 Guangdong Famous High-tech ProductsGuangdong High-tech Enterprise Association2023 FT Quality AwardFeiteng Quality Data (Xiamen) Co. Ltd.2023 Comfortable Fan Lamp AwardFeiteng Quality Data (Xiamen) Co. Ltd.2023 Comfort Performance Benchmarking AwardFeiteng Quality Data (Xiamen) Co. Ltd.Guangdong High-Value Trademark Brand
Guangdong High-Value Trademark Brand Evaluation
Committee under the Guangdong Trademark Association2023 Gaogong Golden Ball Award - Outstanding ContributionEnterprise Award
Shenzhen Gaogong Consulting Co., Ltd.2023 Leader Brand in China's Lighting Industry
Guzhen Lighting Report, Highlight Award Evaluation
Committee2023 Top 10 Engineering Lighting Brands in China's Lighting IndustryLight Award - Big Lighting in All Platforms2023 Top 10 Intelligent Lighting Brands in China's Lighting IndustryLight Award - Big Lighting in All PlatformsTop 10 Competitive Brands of Building and Electrical LightSource and Lamps at the 12th Summit of China's EngineeringSurvey and Design Industry
Intelligent Building and Electrical TechnologyTop 10 Competitive Brands of Lighting Control Systems at the12th Summit of China's Engineering Survey and Design Industry
Intelligent Building and Electrical Technology2023 Top 10 In?uential Lighting Brands in the Lighting andElectrical Industry
cnjiaju.net.cn, and cali-light.com2022 Top 10 Overall Advantage Enterprises in China's EducationLighting Industry
Shenzhen Lighting and Display Engineering Industry
AssociationIn?uential Brand for China's Healthy Education Lighting
www.alighting.cn, Guangdong Guangya Lighting Research
InstituteOutstanding Contributors to China's Education Lighting IndustryWhite Paper in 2022
Shenzhen Lighting and Display Engineering Industry
Association
During the Reporting Period, the Company received the following honors:
Some Honorary Certi?cates
Ful?llment of Responsibilities:
Consolidating Cornerstones forSustainable Development
PAK prioritizes green and low-carbon development. We have deeply integrated the governancephilosophy for sustainable development into our corporate strategy and daily operation,considering it the cornerstone for enhancing our compliance management, developmentquality, and competitiveness. In accordance with the requirements of the China SecuritiesRegulatory Commission and other authorities, we continuously improve our environmental,social, and governance systems, and strengthen the supervision and participation of the Boardof Directors in our governance e?orts for sustainable development. The Board of Directors, asthe highest decision-making body, is responsible for assessing the potential impacts and risksof our sustainability governance on our business modes, ensuring that sustainable strategiesare incorporated into business decisions. Additionally, it is also responsible for reviewingannual ESG reports.The evolution of lighting ?xtures has undergone numerous innovations, from halogen lamps to?uorescent lamps, and then to LED lights, and ?nally to today's intelligent lighting technology.With every step, the company has ?rmly moved towards a new realm of energy e?ciency andenvironmental protection, demonstrating its unremitting efforts in technological innovationand its deep recognition and emphasis on the concept of sustainable development. SansungLighting has always been committed to promoting the green transformation of the lightingindustry, contributing to the protection of the earth's environment through practical actions,and demonstrating a company's ?rm commitment to social responsibility and environmentalprotection while pursuing economic bene?ts.In 2023, we won honorary awards on the theme of social responsibility. This fully demonstratesour commitment to green and low-carbon construction and social responsibility.
Governance Philosophy for SustainableDevelopment
The 2nd International Green Zero Carbon Festival"2023 Green Sustainable Development Contribution
Award"
The 13th Philanthropy Festival and2023 ESG In?uence Annual Conference"2023 ESG Pioneer Enterprise Award"
The 13th Philanthropy Festival and ESG
In?uence Annual Conference"2023 Responsible Brand Award"
The 13th Philanthropy Festival andESG In?uence Annual Conference"2023 Carbon Peak And Carbon Neutrality
Action Contribution Award"
Sustainable Development Governance ObjectivesSDGsSpeci?c Actions in 2023
Relevant Chapters
and Sections
1. Participated in the "6-30"Rural Revitalization Assistance Activities in Nansha
District of Guangzhou in 2023 to deepen the "Yangcheng Charity for thePeople"Initiative, and donated to the rural revitalization projects in Lanke Town;
2. Actively participated in the "6-30"Rural Revitalization Assistance Activities
in Panyu District of Guangzhou in 2023 to deepen the "Yangcheng Charityfor the People"Initiative, and donated to the "Yangcheng Charity for thePeople"Initiative.
Devotion to Public Welfare:
Passing on Social Warmth
Provided nutritious meals for employees
Team Building: ShapingWorkforce Cohesion
1. Improved the Company's occupational health and safety as well as safety
production management systems;
2. Conducted occupational disease hazard detection and took qualified
protective measures;
3. Conducted regular training and emergency drills to provide employees with
safe working conditions;
4. Initiated a nationwide Light Health Free Clinic Tour to provide free retro?tting
to families and organizations that fail to meet the "light health"standard andcare for the eye health of residents;
5. Hosted the "PAK: Public Welfare Grassland Hiking for Household Decoration
Elites Designing Light" event, and donated to the Red Cross Branch in DuolunCounty to purchase eye-protecting desk lamps for local Hope Schools, caringfor students' eye health.
Team Building: ShapingWorkforce CohesionDevotion to Public Welfare:
Passing on Social Warmth
1. Cooperated with more than a hundred colleges and universities to build
teaching cooperation and practice bases and provided relevant trainingactivities;
2. Continuously innovated and developed high-quality campus-speci?c lamps,
and completed campus lighting renovation projects for more than a hundredcolleges and universities nationwide;
3. Initiated the "Lighting for Dreams: Rural Classroom Lighting
Renovation"program, donated eye-protecting desk lamps to rural children inunderdeveloped areas, and improved the lighting of rural campus classrooms.
Quality and E?ciencyImprovement: PromotingValue GrowthDevotion to Public Welfare:
Passing on Social Warmth
1. Adhered to the principles of fairness and impartiality in the hiring and
promotion of female cadres in the management of the Company to ensure thatevery employee receives equal opportunities and respect;
2. Formulated the
Management Procedures for the Protection of Female Workers(Pregnant Women)and theManagement Procedures for the Protection of FemaleWorkers (Pregnant Women), to reduce and solve the special di?culties caused bythe physiological characteristics of female workers in labor and work;
3. Guaranteed the right of female workers during pregnancy, childbirth and
lactation to enjoy leave such as prenatal examination leave, maternity leaveand breastfeeding leave.
Team Building: ShapingWorkforce Cohesion
1. Provided clean drinking water for employees;
2. Regularly arranged professionals to clean and disinfect sanitary
facilities.
Team Building: ShapingWorkforce Cohesion
Installed photovoltaic panels to increase the proportion of clean energyuse
Low-carbon Development:
Leading to a Green Future
Provided fair and competitive compensation and benefits foremployees, and established a performance appraisal system coveringall employees in production bases
Team Building: ShapingWorkforce Cohesion
1. Took the lead in entering the field of green lighting technology,
innovated and developed intelligent and interconnected LED lightingand other e?cient energy-saving lighting products;
2. Launched the Indoor Simulated Sunshine System, simulated natural
light through photoelectric fusion to provide a warm and comfortablelight environment, and alleviated the pressure brought by the indoorenvironment.
Low-carbon Development:
Leading to a Green FutureQuality and E?ciencyImprovement: PromotingValue Growth
1. Prohibited all forms of discriminatory behaviors and allowed all
individuals who meet the recruitment criteria to submit their resumes;
2. Gave equal opportunities for competitive employment to individuals
with disabilities.
Team Building: ShapingWorkforce Cohesion
Innovatively applied green smart manufacturing technologies, andlaunched a full-scenario intelligent lighting solutions to help variousindustries build intelligent green factories
Low-carbon Development:
Leading to a Green Future
1. Integrated green ideas into product design, fully implemented carbon
emission reduction in the whole life cycle of products, and led the trend ofgreen consumption;
2. Improved the product quality management of the Company, and
provided users with high-quality products and services;
3. Enhanced the supplier management of the Company, and put forward
specific requirements for upstream suppliers in terms of clean supplychain and supply chain quality;
4. Improved dealer management and maintained market order.
Low-carbon Development:
Leading to a Green FutureQuality and E?ciencyImprovement: PromotingValue Growth
1. Reduced carbon emissions during the Company's production
and operation by replacing energy-saving equipment and layingphotovoltaic panels;
2. Implemented green o?ce and saved the use of o?ce consumables;
3. Conducted the research and development of energy-saving products
to help users save energy and reduce emissions.
Low-carbon Development:
Leading to a Green Future
Standardized water resource protection and wastewater dischargeto ensure that the use of water resources and wastewater treatmentcomply with national and regional requirements
Low-carbon Development:
Leading to a Green Future
1. Conducted compliant disposal of factory solid wastes, improved the
recycling rate of packaging materials, and reduced the impact on theliving environment of terrestrial animals;
2. Firmly implemented the concept of "three synchronizations"and
regularly monitored the ecological environmental impacts within thevicinity of the Company's factory boundaries.
Low-carbon Development:
Leading to a Green Future
1. Integrated the concept of sustainable development into corporate
governance;
2. Prioritized compliance governance and improved the Company's
internal control capability;
3. Standardized the information disclosure process, broadened investor
communication channels, and provided investors with continuous andscienti?c pro?t distribution;
4. Continuously improved the business ethics system of the Company,
and regularly conducted anti-corruption and anti-unfair competitiontraining.
Ful?llment of Responsibilities:
Consolidating Cornerstonesfor Sustainable DevelopmentCompliance Governance:
Building a Solid Foundationfor the Company
1. Improved the stakeholder communication system, actively absorbed
the opinions of all parties, and promoted two-way communication;
2. Established a sound supply chain management system and
established long-term stable cooperative relationships with suppliers;
3. Oriented towards customer needs, improved customer satisfaction,
and achieved long-term stable development for both the Company andcustomers;
4. Provided training and further education opportunities to promote
the career development of employees.
Ful?llment of Responsibilities:
Consolidating Cornerstonesfor Sustainable DevelopmentQuality and E?ciencyImprovement: PromotingValue GrowthTeam Building: ShapingWorkforce Cohesion
PAK prioritizes the maintenance of relationship with stakeholders, actively absorbs the opinions and suggestions of all parties inthe principle of fairness, and promotes two-way communication, to build a harmonious interactive relationship.Stakeholders
Government andRegulatory Agencies
CustomersEmployeesCommunitySuppliersDistributorsShareholders and
Investors
Industry Associations andProfessional Organizations
Media
Expectations and Demands
Communication and Response
Economic PerformanceBusiness EthicsEnvironmentalManagementEnergy ManagementCarbon EmissionManagementWater ResourceManagementCircular EconomyHealth and Safety
GovernmentCommunications & VisitsInformation Disclosureand SubmissionDaily Communicationand ReportingListed CompanyActivities
Product QualityManagementCustomer RelationshipManagementCircular EconomyInnovation and R&D
Visits by CustomersVisits to FactoriesCustomer SatisfactionSurveyCustomerCommunication Hotline
Employee Trainingand DevelopmentEmploymentComplianceCompensationand Bene?tsHealth and Safety
Workers' CongressEmployee SymposiumsSuggestion BoxEmployee SatisfactionSurveyCorporate CultureActivitiesRegular TrainingInternal Journal
EnvironmentalManagementEnergy ManagementCarbon EmissionManagementWater ResourceManagementHealth and SafetySocial Welfare
Social Activities forPublic GoodCommunity Supervisionand FeedbackEnvironmental RiskAssessment
Supply ChainManagementProduct QualityManagementHealth and SafetyDigital IntelligenceTransformation
DistributorManagementBusiness EthicsProduct QualityManagementCustomer Service
Distributor TrainingDistributor ExchangeMeetingsEmail & Telephone
Economic PerformanceCorporate GovernanceRisk and ComplianceManagementBusiness EthicsInnovation and R&D
Supplier TrainingSupplier Audit &MonitoringSupplier ExchangeMeetingsTechnical Exchangeand R&D CooperationEmail & Telephone
SymposiumsMarket PromotionMeetingsOther Conferences
Innovation and R&DStrategic CooperationIndustry Co-construction
General Meeting ofShareholdersRegular Reportsand ProvisionalAnnouncementsImportant ProjectProgress AnnouncementInvestor HotlineOnline Interactive PlatformEmail
Governance StructureAnti-CorruptionSocial WelfareInformation Disclosure
O?cial WebsiteWeChat O?cial AccountExchange Meetings
2023 Environmental, Social and Governance (ESG) Report
Communication with Stakeholders
Green ProductEnergy ManagementEnvironmental ManagementResponding to Climate ChangeWastewater ManagementGreen O?ceBiodiversity Conservation
In Environment
Research and DevelopmentOccupational Health andSafety ProductionSupply Chain ManagementProduct LiabilityLabor Relations ManagementEmployee DevelopmentElevating Customer ExperienceDealer ManagementIntellectual Property ManagementCommunity Welfare
In Society
Three-tier Governance StructureRisk Control and Internal ControlBusiness EthicsRights and Interests of InvestorsRegulating Information DisclosureParty BuildingInformation Security
In Governance
2023 Environmental, Social and Governance (ESG) Report
PAK pays attention to ESG rating indicators in the capital market, takes into account national policies, industry trends and companystrategies, analyzes its own sustainable development challenges, regularly identi?es and evaluates the importance of materiality issuesof sustainable development, sorts out the Company's key issues of concern, and developed a matrix of materiality issues based on their"Importance to Company Development"and "Importance to Stakeholders".
Analysis of Materiality Issues
Benchmarking Studyof Policies, Laws andRegulation
FundamentalAnalysis of theCompany
Analysis Process of Materiality Issues
Benchmarkingwith Best Practicesin the Industry
Analysis ofExternal PublicOpinions
Materiality Issues
Importance to PAK's Sustainable Development
Importance to Our Stakeholders
Compliance Governance:
Building a Solid Foundation forthe Company
CorporateGovernance
Risk Control andInternal Control
Rights and Interestsof Investors
Business EthicsInformation
Security
Party-buildingGovernance
Manpower Administration CenterFinancial Management CenterBrand Management CenterInformation Management CenterAudit Risk Control CenterCommercial Market CenterHome DivisionE-commerce DivisionInternational Trade DivisionOutdoor Landscape DivisionCommercial Sales CenterProduct Management CenterR&D CenterSupply Chain Management CenterManufacturing CenterQuality CenterPresident's O?ceBoard of DirectorsShareholders General Meeting
Board of SupervisorsBoard O?ceStrategy CommitteeRemuneration and Appraisal CommitteeNominating CommitteeAudit Committee
Organizational Structure
Governance SystemPAK strictly follows relevant laws, regulations, and regulatory requirements. To strengthen economic cooperation and technologicalexchanges, promote the development of the national economy, and obtain satisfactory returns, we have established a scienti?c andefficient corporate governance mechanism and continuously improved the governance structure to ensure the stable and healthydevelopment of the Company. The Company has formulated the Articles of Association of Guangdong PAK Corporation Co., Ltd.,and clari?ed the duties and responsibilities of the governance structure composed of the "General Meeting of Shareholders, Board ofDirectors, Board of Supervisors, and Senior Management". We standardize the operation mechanism of decision-making bodies, andcreate a sound system of governance responsibilities and rights, and ensure e?cient decision-making and smooth communication, tolay a solid foundation for the sustainable development and success of the Company.
Corporate Governance
Three-tier Governance StructurePAK follows relevant laws, regulations, and the Articles of Association to standardize the procedures of the General Meeting ofShareholders. The Company issues a written notice before convening a General Meeting of Shareholders to inform all shareholders of thematters to be considered at the meeting as well as the date and place of the meeting, and the meeting adopts a combination of on-siteand online voting to facilitate shareholders' participation.The Company has formulated the Administrative Measures for Separate Counting of Votes of Small and Medium-sized Investors to protectthe rights and interests of small and medium-sized investors. For major issues involving the interests of small and medium investors, thevotes of small and medium investors are separately counted and disclosed in a timely manner to ensure that all shareholders exercisetheir rights equally and fully.
The General Meeting of Shareholders
The Board of Directors is the decision-making body of the Company and answers to the General Meetingof Shareholders. PAK's Board of Directors consists of 9 directors, including 3 independent directors and 6non-independent directors. The Company has formulated the Rules of Procedure of the Board of Directorsof Guangdong PAK Corporation Co., Ltd. to standardize the deliberation methods and decision-makingprocedures of the Board of Directors, promote the effective performance of directors and the Board ofDirectors in ful?lling their duties, and to ensure the e?ciency and scienti?c decision-making of the Boardof Directors.The Company selects and appoints the members of the Board of Directors with full consideration of manyfactors such as gender, age, educational background, professional knowledge and industry experience,aiming at realizing a diversified composition of the Board of Directors with a reasonable professionalstructure to meet the business needs of the Company.
Board of Directors
Members of the Board of DirectorsNumber of DirectorsDirector Type
Non-Independent Directors6Independent Directors3
Age
50-60640-503Gender
Male8Female1Academic Degree
Doctor's Degree1Master2Bachelor2Associate Degree4PAK attaches importance to the key role of independent directors in the standardized operation of theCompany, and emphasizes their professionalism and independence. We have formulated the "System ofWork of Independent Directors"to ensure that they provide independent and objective suggestions andopinions in the decision-making process and contribute to the sustainable and sound development ofthe Company. The Board of Directors sets up four specialized committees, namely the Audit Committee,the Strategy Committee, the Nomination Committee, and the Remuneration and Assessment Committee,which answer to the Board of Directors, perform their duties in accordance with the Articles of Associationand the authorization of the Board of Directors, and submit their proposals to the Board of Directors forconsideration and decision.
During the Reporting Period:
Relevant announcements were disclosed on the website of the Shenzhen Stock Exchange.
During theReporting Period
General Meetings of Shareholders were held, including;
annual General Meeting of Shareholders
extraordinary General Meetings of Shareholders, at which:
proposals were reviewed
The Meeting of theBoard of Directors
timesHas Deliberated
ProposalsAttendance Rateof Directors
100%
.
IndependentDirectors
Non-independentDirectors
Whether theIndependentDirector Serves asthe Chairman ofthe Committee
Responsibilities of Committees
StrategyCommittee
12No
Conducting research on the Company's long-termdevelopment strategy and major investment decisionsNominationCommittee
21Yes
Formulating the criteria, procedures and quali?cationrequirements for the selection and assessment ofdirectors and senior managementAuditCommittee
21Yes
Auditing financial information and disclosure of theCompany, and supervising and assessing the internaland external audit and internal controlRemunerationand Assessment
Committee
21Yes
Formulating assessment criteria for directors andsenior management, conducting assessments ofdirectors and senior management, and formulatingand reviewing remuneration policies and programsfor directors and senior management.
The Board of Directors is the supervisory body of the Company and answers tothe General Meeting of Shareholders. PAK strictly follows the procedures for theelection of supervisors stipulated in theCompany Law and the Articles of Association.To standardize the operation procedures of the Board of Supervisors, improve thesupervisory functions of the Board of Supervisors and strengthen the standardizedmanagement of the Company, the Company has formulated the Rules of Procedureof the Supervisory Board of Guangdong PAK Corporation Co., Ltd. to urge supervisorsto diligently ful?ll their duties in supervising the production and operation, ?nancialoperations, and the lawful and compliant performance of directors and other seniormanagement in the Company.The Board of Supervisors of PAK consists of 3 supervisors, including one employeesupervisor.
Internal Control Management
In accordance with basic laws and regulations concerning securities and theBasic Rules of Internal Control, and based on the actualbusiness needs of the Company, we have formulated the Internal Control System of Guangdong PAK Corporation Co., Ltd. and theInternalAudit System of Guangdong PAK Corporation Co., Ltd., to clarify the objectives, principles, processes and key control points of internalcontrol, and to build up a set of complete and scienti?c internal control systems.At the same time, the Company implements an internal audit system, establishes an internal audit institution, and assignsdedicated audit personnel. We follow the main principles of "strengthening audit supervision, expanding audit ?elds, highlightinginternal control management, and playing the role of audit evaluation", and conduct the internal audit and supervision on the?nancial income and expenditure and economic activities of the Company, to prioritize the development of importance businessand achieve e?ective supervision and service for our production and operation performance.
Risk Control and Internal Control
PositionDutyAudit Committee
Auditing the ?nancial information and its disclosure, supervision and evaluation of the CompanyAssessing the internal and external audit and internal control
Audit Department
Evaluating the completeness, rationality, and implementation e?ectiveness of the internal controlsystemAssisting in the establishment of anti-fraud mechanismsConducting regular audits on the deposit and utilization of funds raisedFollowing the recti?cation of audit issuesReporting to the Audit Committee on a regular basisFull-time Auditors
Conducting internal audit and supervision of the ?nancial income, expenditure and economicactivities of the CompanyTo ensure the stability of the internal control, we regularly carry out internal control evaluation for PAK and all of our a?liates, andevaluate the e?ectiveness of the design and operation of our internal control in terms of the internal governance environment,development strategy and social responsibility, internal auditing, asset management, capital activities, and the management ofour holding subsidiaries, etc. We also issues theAnnual Internal Control Self-Assessment Report of Guangdong PAK Corporation Co., Ltd.During the Reporting Period
During the Reporting PeriodBoard of Supervisors
20232023
During the Reporting Period:
The Strategy Committee held
meeting, and deliberated
proposals;The Audit Committee held
meetings, and deliberated
proposals;The Remuneration and Assessment Committee held
meeting and deliberated
proposals;The Independent Director held
meeting, and deliberated
proposal.
PAK has conducted a total of
internal audits, including
special audits,
?nancial audit and
other auxiliary audits.There are no major or signi?cant defects have been found in the company.
The Board of Supervisorshas held
meetingsDeliberated
Proposal
Attendance Rate ofSupervisors
100%
.
20232023
Training on Contract Related Legal Risks and Preventive MeasuresTo enhance employees' awareness and practical skillsin preventing and controlling legal risks in contracts andreduce contract-related legal risks, the Legal Departmentprovided training on the Contract-related Legal Risks andPreventive Measures in June 2023. The training primarilyfocused on legal risks during the signing and performanceof contracts, introduced main risk points at these stages,analyzed and discussed risk points based on the realitiesof the Company, and shared prevention and mitigationmethods for each risk point.
Training on Legal Risks and Preventive Measures ConcerningConstruction Engineering Contracts, Intermediary Contracts, and
Agency Contracts on Purchasing from OEM
According to the needs of business departments, the LegalDepartment invited external consultants and lawyers toprovide the Training on Legal Risks and Preventive MeasuresConcerning Construction Engineering Contracts, IntermediaryContracts, and Agency Contracts on Purchasing from OEM foremployees responsible for the lighting projects. Focusing onconstruction engineering contracts, intermediary contracts,and agency contracts on purchasing from OEMs, the trainingprovided explanations of basic knowledge and commonrisk points, conducted case analyses, shared risk responseand prevention measures and experiences, and addressedquestions and confusions of employees in businesses.Comprehensive Risk Management
In accordance with established development strategies, the Company has established effective risk assessment mechanismsthrough daily management, supervision, external audits, etc. We have formulated a series of risk management procedures toensure that the management can timely identify and fully assess risks faced, including internal and external risks. Based on riskidentification and analysis results in combination with risk tolerance, the Company weighs risks against returns and adoptscorresponding risk response strategies to ensure the realization of internal control objectives.
Risk SourcesRisk EstimationRisk Control SystemRisk Control Activities
Supplier Risks
1.Improper supplier selection leads to
increased procurement costs, unstable supplyquality, or supply interruptions;
2.Suppliers manipulate prices in the
Company's procurement activities by meansof collusive bidding and price pushing.
Internal Control Systemon Procurement andPayment of GuangdongPAK Corporation Co., Ltd.
Enhancing supplier screening toensure supply quality and stability.
Payment and
Contract Risks
1.Suppliers may engage in fraudulent
behaviors, such as providing false invoices orduplicate collections;
2.The payment process is not standardized;
3.Purchase contracts contain ambiguous
terms and conditions or legal risks.
1.Strictly reviewing fund payments
and reducing payment risks
2.Standardizing business processes
and authorization approvals for salesactivities
3.Providing training to ensure that
sales activities are standardized,compliant and legal.
PurchasingCorruption Risks
1.Employees in the purchasing department
may take advantage of their positions tocollude with suppliers and obtain improperbene?ts;
2.Purchasing decisions may be monopolized
by individual leaders or employees, resultingin a lack of fairness and impartiality in thepurchasing process.
1.Separating Incompatible Duties
2.Specifying clear authorization and
approval procedures
3.Strengthening audit supervision
4.Improving reporting mechanisms
5.Optimizing the organizational structure
of the supply chain management centerto ensure the clarity and transparencyof the entire supply chain
Sales andCollection Risks
1.Mistakes in sales planning result in non-
prospective sales forecasts or unscientificpricing policies, resulting in a decline in themarket competitiveness of the Company.
2.Improper management of customers' credit
leads to difficulties in recovering receivablesand risks of bad debts.
3.Sales contracts are not properly authorized,
contain ambiguous terms or involve legal risks
4.Unstandardized management of accounts
and notes receivable and inaccurate aging analysisresult in revenue loss and legal litigations.
5.Errors in issuing sales invoices cause tax-related
risks.
Internal Control Systemon Sales and Collectionof Guangdong PAKCorporation Co., Ltd.
Standardizing various businessprocesses and authorization approvalmatters related to sales planning,customer management, sales pricingmanagement, sales contract approvaland signing, order management,shipment management, accountsreceivable management, andcustomer complaint handling
InventoryManagement
Risks
1.Improper inventory storage leads to inventory
depreciation and expiration risks;
2.Inventory backlog occupying a large amount
of enterprise funds increases storage and capitalcosts.
3.Insufficient inventory leads to delayed
raw material supply, and affects the normalproduction of the Company.
4.Untimely accounting treatment of inventories
causes inconsistency between accounts andfacts
Inventory Internal ControlSystem of GuangdongPAK Corporation Co., Ltd.
1.Standardizing the life-cycle
management of inventory fromwarehouse-in, warehouse-out, scrapdisposal to inventory counting
2.Clearly stipulating the inventory
management process and theresponsibilities and authority of allrelevant personnel, as well as theapproval procedures and accountingtreatment methods
Enhancement of Compliance Awareness
The Company continues to strengthen the construction of the risk managementorganization system, integrating risk awareness and risk management conceptsinto daily business management activities. Personnel in positions responsible forrisk management conduct standardized management of risk identi?cation, riskassessment, risk response, and risk monitoring in production and operation. TheCompany also provides internal risk control training for employees to enhancerisk management capabilities and ensure legal and compliant operation andmanagement.
During the Reporting Period
Trainings onLegal-RelatedKnowledge
ParticipantsWith Over
Risk SourcesRisk EstimationRisk Control SystemRisk Control Activities
Fixed AssetManagementRisks
1.Newly purchased fixed assets have risks
of improper acceptance and recognitionprocedures
2.The use and custody of ?xed assets may be
subject to the risk of failure to authorize thesale of fixed assets in accordance with theprescribed procedures, use specific assetsor take responsibility for the custody of fixedassets, which may result in the use of fixedassets, and the risk of loss of ?xed assets dueto improper custody
3.The depreciation and impairment of fixed
assets have not been promptly checkedand counted, and the conversion of self-constructed fixed assets has not been timely,leading to increased tax risks for the Company.
Internal ControlManagement Systemfor Fixed Assets andEngineering Projectsof Guangdong PAKCorporation Co., Ltd.
1.Specifying the processes and
accounting rules for links such as thepurchase, valuation, depreciation, stockchecking, and disposal of fixed assets,and the management of engineeringprojects
2.Implementing effective division of
responsibilities, clarifying authorizationapproval procedures, and ensuring thesecurity of ?xed assets
3.Standardizing accounting procedures,
strengthening accounting supervisionover the management of fixed assets,and ensuring that the accountingis compliant and that accounts areconsistent with factsRisks of Financial
Activities
Unqualified fund management causesrestricted fund flows, increased capital costs,and decreased investment returns
Capital ManagementSystem of GuangdongPAK Corporation Co., Ltd.Foreign InvestmentManagement System
Standardizing the responsibilities,business processes, and authorizationpermissions of each position in fundmanagement
Disclosure Risks
of Financial
Reports
1.Information leakage results in risk of insider
trading.
2.Inaccurate or untrue data or omission of
important information in financial reportscause risks of misleading investors andstakeholders.
3.The preparation and disclosure of financial
reports do not meet the requirements ofrelevant laws, regulations and accountingstandards, resulting in the Company facingcompliance risks such as legal proceedingsand penalties.
Financial ManagementSystem of GuangdongPAK Corporation Co., Ltd.Internal Control Systemfor Financial Reportingof Guangdong PAKCorporation Co., Ltd.
Clearly defining the responsibilities ofthe financial management center, thejudgment and handling of significantfinancial matters, the preparation andsubmission of financial statements,?nancial analysis, and other processes
ManagementRisks of Holding
Subsidiaries
1.Improper governance structure and
unreasonable allocation of responsibilitieslead to management risks in subsidiaries
2.Incorrect formulation and execution of
subsidiary accounting systems, or inaccurateand incomplete information in consolidated?nancial statements, may lead to the inabilityto accurately reflect the overall operation ofthe Company
Internal Control Systemof Guangdong PAKCorporation Co., Ltd.
1.Dispatching directors and
corresponding management personnelto control the operation and decision-making of our subsidiaries
2.Assigning financial officers to the
holding subsidiary to supervisethe authenticity and legality of theholding subsidiaries' ?nancial status
3.Ensuring that accounting methods
and policies adopted by thecontrolling subsidiaries are consistentwith those of the Company, to realizeeffective control over the holdingsubsidiaries
Risk SourcesRisk EstimationRisk Control SystemRisk Control Activities
Risks of RelatedTransactions
1.Unfair transactions between related
parties and unreasonable pricing of relatedtransactions cause profit transfer anddamages to the interests of the Companyand our investors
2.Related transaction contracts may
contain illegal or unclear terms andconditions
3.Related transactions may lead to
regulatory penalties and litigation risks
Financial ManagementSystem of Guangdong PAKCorporation Co., Ltd.Related TransactionManagement System ofGuangdong PAK CorporationCo., Ltd.
1.Clearly defining related parties and
the scope of related transactions, thebasic principles of related transactions,decision-making authorizationprocedures for related transactions,and other aspects of related transactionmanagement
2.Making accurate and complete records
of related transactions occurring withappropriate review and authorization
PAK places high importance on tax governance. we have clari?ed the process for tax declaration and invoice management in theFinancial Management System of Guangdong PAK Corporation Co., Ltd. and established a Tax Management Department thatcenters on the Financial Management Center. Our subsidies at their discretion manage their own tax a?airs through their ownFinance Department under the guidance of our Financial Management Center.The Financial Management Center regularly reviews and summarizes our tax operations and payments, inventories our taxresources, and ensures that our employees are kept up-to-date with tax regulations by disseminating information through monthlymeetings and sharing experiences related to taxation.
Related Party TransactionsPAK has formulated theManagement System for Related Party Transactions of Guangdong PAK Corporation Co., Ltd., which clearly speci?esprocedures for the review, disclosure, and pricing principles of related party transactions, in accordance with applicable laws,regulations, and the reality of business to ensure that our related party transactions comply with the principles of fairness, justice,and transparency, enhance our internal controls, and protect the rights and interests of all shareholders. We strictly enforce arelated party avoidance mechanism to ensure that relevant directors and shareholders shall recuse themselves from voting duringthe review of matters on related party transactions.In addition, we have formulated theFinancial Management System of Guangdong PAK Corporation Co., Ltd. for the management of fundstransactions with related parties.During the reporting period, all related party transactions of the company have been subject to the corresponding decision-makingprocedures in accordance with relevant laws, regulations, and internal management systems.
Tax Management
During the Reporting Period:
we paid a total of CNY
156.1154
million in taxes (excluding personal income tax), signi?cantlycontributing to local economic development.
Protection of the Rights of ShareholdersPAK actively strives to provide shareholders with optimal investment returns and value creation. We strictly adhere to profitdistribution and stock repurchase policies as stipulated in ourArticles of Association and the Financial Management System of GuangdongPAK Corporation Co., Ltd. In addition, we have formulated theThree-Year Shareholder Return Plan of Guangdong PAK Corporation Co., Ltd. (2023-2025)to clarify our reasonable return policies for new and existing shareholders and enhance the transparency and operability ofour pro?t distribution decisions, thus enabling shareholders to oversee our operation and pro?t distribution.
Rights and Interests of Investors
Regulating Information DisclosurePAK rigorously upholds the principles of truthfulness, accuracy, completeness, timeliness, and e?ectiveness. We have developedtheInformation Disclosure Management System of Guangdong PAK Corporation Co., Ltd. to enhance our ability in information disclosuremanagement and the quality of information disclosure, protect the legal rights and interests of investors, and ensure thecon?dentiality of undisclosed information.During the Reporting Period, we disclosed 6 periodic reports and 122 ad hoc announcements while effectively enforcing andmaintaining our responsibility mechanism for information disclosure.
Facilitating Communication with InvestorsPAK places great emphasis on enhancing investor relations management. Wecontinuously improve our channels for communication and strengthen ourability to manage these relationships. To deepen our engagement with investorsand potential investors and enhance their understanding and recognitionof our company, we have established theInvestor Relations Management Systemof Guangdong PAK Corporation Co., Ltd. to accurately and promptly present ourinvestment value to the capital market, ensuring that our investor relationsefforts effectively serve as a bridge between conveying our company's valuesand facilitating investors' discovery of our value.We proactively engage in investor communication activities and maintain strongrelationships with our investors. We focus on building online communicationplatforms through performance brie?ngs, our o?cial website, investor surveys,emails and investors' hotline.Additionally, we have launched a series ofcommunication campaigns to ensure e?cient and e?ective channels for investorinteractions
Implementation Status of the 2022 Annual Dividend Plan of PAKCash dividend
0.6
CNY /share Total cash distributed CNY
167.5986
million
During the Reporting Period:
Hotline: 020-28660360Fax: 020-28660327Email: info@PAK.com.cnMailing address: No. 293, Caixin Road,Liangdibu Industrial Zone, LanheTown, Nansha District, GuangzhouCity, Guangdong Province, China.
Channels for investorcommunication:
PAK strictly adheres to the Anti-Unfair Competition Law of the People's Republic of China, theCompany Law of the People's Republic of China, theInterim Provisions on Banning Commercial Bribery, and other laws and regulations relating to other laws and regulations related to anti-bribery, anti-extortion, anti-fraud, and anti-money laundering enforced in the regions where we operate to prevent illegal activitiessuch as embezzlement and bribery.We advocate for integrity and continuously enhance our compliance and integrity control levels to ensure our continuous, stable,and healthy development. We focus on strengthening anti-corruption education at critical positions, regularly organize specializedtraining, and implement requirements on work with integrity to ensure that employees in crucial positions, particularly within thePurchasing Department, maintain a 100% compliance rate in signing theIntegrity Commitment.The company has established multiple reporting channels and has included anti-commercial bribery clauses in the generalprocurement contracts signed with suppliers. Contact information for the company's president and vice president is also providedin the contracts to facilitate suppliers' complaints or reports. Additionally, a supplier complaint module has been set up onthe company's supplier management platform, and the announcement posted to suppliers includes the contact email of thecompany's internal audit department, making it convenient for suppliers to directly report corrupt behaviors.
Business Ethics
20232023
Specialized Training for Marketing System ManagersIn November 2023, our Legal Department organized a SpecializedTraining for Marketing System Managers. The training focused oncontractual business secrets, non-compete agreements, and legaldiscussions on unauthorized private orders by sales staff. It alsoemphasized integrity and anti-unfair competition, focusing on themanagement of trade secrets and professional ethics among ourmarketing personnel.
Online Performance Presentation of PAK for 2022PAK participated in the "Investor Collective Reception Day", onecampaign of the "2023 Investor Relations Management Month
for Listed Companies in the Guangdong Jurisdiction"176%The proportion of net profit attributable to shareholders of thelisted company in the consolidated ?nancial statements for 2022
We hosted
performance brie?ngs and Investor Days. We received
institutional research visits.We held
online interactions at irm.cninfo.com.cn.
Information Security Management System
PAK has established professional information security teams and a comprehensive information security management system instrict accordance with applicable laws and regulations. We also have developed and issued a series of management measures toensure thorough information security and privacy protection.
Information SecurityEnhancing the Ability to Safeguard Information SecurityWe employ the following measures to ensure the security of employee and customer information comprehensively.
Information Management Center
InfrastructureDepartment
Organizational Structure of Information Security Management
Software System
Department
Software DevelopmentDepartmentDesktop Operation
and Maintenance
Team
Network Operation
and MaintenanceTeam
System Operationand Maintenance
TeamResponsible forthe company'snetwork architecturedesign and securityprotection, as well asthe management andoperation of networkand security devices.
Responsible forthe operationand maintenancemanagement ofvarious applicationsystems of thecompany, anddeveloping datasecurity managementpolicies andprocesses.
Responsible formanaging therequirements,conductingfunctional testing,deploying, managingvulnerabilities, andperforming operationand maintenance forthe business systems.
Responsible for thedesign, development,and testing ofapplication softwaresystems, as wellas the research,development, anditeration of systemarchitecture.
1. Network isolation and security: When connecting with external departments, use dedicated
network devices and communication lines to ensure data exchange security through physical orlogical isolation; and apply strict communication control, auditing, and recording measures;
2. Internal network isolation: Isolate computers in critical departments from the internet
physically, while ensuring that security monitoring, as well as wired and wireless networks,operate independently, to reduce security risks;
3. Software and hardware updates and maintenance: Regularly inspect and update software and
hardware and promptly address known vulnerabilities to enhance security and ensure systemstability and reliability;
4. Anti-virus and software compliance: Equip all computer equipment with licensed anti-virus
software, prohibit the use of pirated software, and ensure that all external software or discs arechecked for viruses before installation and use;
5. Data security and backup: Establish a data backup and recovery mechanism to ensure that
backup media are physically separated from the host system and that backup data are storedo?-site to mitigate data loss risks;
6. Equipment and environmental protection: Ensure that the purchased computer equipment
is highly reliable and provide necessary environmental safeguards for server rooms, includingan uninterruptible power supply (UPS), appropriate temperature and humidity controls, fireprotection, and static electricity prevention measures.
Operations andmaintenancemanagement
1. Formulate systems, such as the
Measures for the Management of Information Security,Measures for theManagement of Information System Failures,Measures for the Management of Server Rooms in the InformationCenter, andMeasures for the Management of IT Terminal Equipment;
2. Established a professional network security team to enhance network security defenses and
emergency response capabilities;
3. Promote and strengthen information security education and training to develop skilled
professionals and enhance our employees' awareness and capabilities in information security.Systemconstruction
1. Deploy and implement enterprise encryption and desktop management systems and
implement decentralized management across various application systems;
2. Construct a secure and straightforward VPN network to ensure safe access to our intranet
applications for employees working remotely;
3. Establish secure firewalls to filter traffic and prevent unauthorized external access to our
internal network;
4. Collaborate with professional enterprise-level network security, cloud computing, IT
infrastructure, and IoT service providers to perform comprehensive inspections of our
information management systems, identify and ?x security vulnerabilities, and strengthen threat
management.
Technicalmanagement
Manage computerterminal desktopsand data securitypolicies, as well ascontrol internetbehavior policies.
Emergency ResponsePAK takes proactive actions against potential information security risks to prevent signi?cant data leakage and e?ectively manageemergencies such as deliberate attacks on our network systems, damage, and the unauthorized dissemination and attachmentof illegal content. We have specifically developed theEmergency Response Plan for Network and Information Security, of which thescope and content are meticulously de?ned based on risk assessments of potential security incidents and the risk identi?cationof information security threats. To ensure that the emergency response plan is feasible and complete, we regularly conductinformation security emergency drills and continually revise and re?ne our emergency response plan based on the outcomes ofthese drills, ensuring that we can respond quickly and e?ectively to information security challenges.
Construction of Party OrganizationsPAK established a Party branch at our headquarters in 2003 to foster stable development. As of the end of the Reporting Period,members of our business operation team, operations and maintenance team, and administrative office who are members ofChina's Communist Youth League or members of the Communist Party of China represented over 40%. They steadfastly implementthe Party's lines, principles, and policies and applicable national laws and regulations.Chongqing PAK Lighting Co., Ltd. ("Chongqing PAK") , Zhaoqing Dongsong Park Electrical Appliance Co, Ltd. ("Zhaoqing PAK")and Guangdong PAK Optoelectronic Industrial Co., Ltd. ("PAK Optoelectronic ") , wholly-owned subsidiaries of Guangdong PAKCorporation Co., Ltd., established a Party branch in 2011 respectively, while PAK Optoelectronics set up its Party branch in 2016.Since their establishment. Since their establishment, the Party branches in our subsidies insist on adhering to the guidance ofXi Jinping Thought on Socialism with Chinese Characteristics for a New Era, diligently studying and implementing the Party'slines, principles, and policies, striving to integrate Party-building work with production and operation, and fully motivating Partymembers to become role models and Party branches to play a key role.During the reporting period, the Chongqing PAK Party branch was awarded the title of "Advanced Grassroots Party Organization" bythe Enterprise Work Committee of the Wanzhou Economic and Technological Development Zone of the Communist Party of China.Meanwhile, the PAK Optoelectronics Party branch was recognized as the "Outstanding Enterprise in Party Building Work among the 'TwoNew' Party Organizations in Langhe Town for 2022" by the Lanshe Town People's Government of Nansha District, Guangzhou City.
Party-building Governance
Party-building ActivitiesPAK conducts learning sessions under the Three Meetings and One Lecture system and Themed Party Day Events to strengtheneducation and training for Party members and improve their understanding of relevant theories and political consciousness. We requireour Party members to be pro?cient in their business; thoroughly study and implement Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era and guiding principles from the Party's 20th National Congress; play an exemplary role; watch sharedclasses and the movie The Great War; establish Comrade Xi Jinping's core position on the Party Central Committee and in the Party as awhole and establish the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; and uphold ComradeXi Jinping's core position on the Party Central Committee and in the Party as a whole and uphold the Central Committee's authority andits centralized, uni?ed leadership.
Strengthening Theoretical Study
To further improve data management efficiency,ensure data security, and firmly grasp thecontrol of data security, we have adopted ahybrid cloud model to build a new generationof IT infrastructure for enterprises: We host corebusinesses in the enterprise data center (privatecloud) and transition non-core businesses tothe public cloud to fully leverage the distinctadvantages of characteristics of the private andpublic clouds, thus enabling us to independentlycontrol the security of critical data.
Data Collection Platform Server of PAK
During the Reporting Period:
During the Reporting Period:
Party-building Meeting at Our HeadquartersThemed Party Day Event Held in Chongqing
PAK:Study of Xi Jinping Thought on Socialism with
Chinese Characteristics for a New Era
The HQ of PAK has convened
general meetings of party members, conducted three lectures on party theory,and has organized
themed party activities. Chongqing PAK, Zhaoqing PAK, and PAK Optoelectronicshave held
,
, and
general meetings of party members respectively.
A total of CNY
224.5
thousand have been invested in information security management.
information security training sessions were conductedThe training covered
83%
of our employees.
PAK actively carries out distinctive activities for Party members, constantly expands the content and mediums of learning activities,and innovates the ways of party-building activities to boost the vitality of party-building e?orts, further motivate Party membersand cadres to bear responsibility, show initiative, and become role models, and signi?cantly strengthen our cohesion and ability.Conducting Special Activities
PAK continuously re?nes our Party branch system to ensure that work is carried out in a standardized and institutionalized manner.We rigorously organize Branch party member sessions and strengthen ideological and political education to ensure the practicalapplication of directives. Furthermore, we focus on cultivating applicants for Party membership, selecting key talents, inspiring theenthusiasm and initiative of our young members, and strengthening their sense of social responsibility.Our Party branches actively embody an exemplary leadership role by engaging in charitable activities, such as participating incommunity volunteer services, fulfilling "micro-wishes", engaging in anti-fraud education, and caring for elderly people wholive alone. In partnership with PAK, our Party branches have established educational scholarships to encourage and supportoutstanding students.During the Reporting Period, the company headquarters'party members participated in
volunteer activities, claimed
"micro-wishes", and actively embraced social responsibilities, demonstrating the dedication of PAK's Party members.
Consolidation of ideological education
Hand-in-Hand Interaction at Chongqing PAK
Bazaar Stalls by the Youth Model Unit Award in 2023Watching a Patriotic-Themed Movie
Honors in Party-building
Advanced Party-building OrganizationAward for Non-State-Owned Enterprises
Pioneer Post for Party Members of
Non-State-Owned EconomicOrganizations in Guangzhou CityFive-Star Party BranchAnnual Advanced Party-buildingOrganization Award forNon-State-Owned Enterprises
Youth Model Unit Award
Honors in Party-building of Party branch at headquarters
Honors in Party-buildingof PAK Optoelectronics
Honors in Party-building of Chongqing PAKHonors in Party-building of Zhaoqing PAK
"Two New"Party-
building Model
Enterprise in Lanhe
Town
Advanced Primary-levelParty Organization
Advanced Primary-level Party Organization
Study of Party History in Zhaoqing PAKGeneral Meeting of PAK Optoelectronics Party Members
Themed Party Day Activity: Learning Party History andEmbarking on the Journey of Science and Technology
Low-carbon Development:
Leading to a Green Future
EnvironmentalManagement
Green Lighting
EnergyManagement
Responding toClimate Change
Water Resources
Management
EnvironmentalImpact Control
Green Operations
As a lighting company, PAK consistently adopts a responsible approach toenvironmental protection, both now and in the future. We implement proactiveand e?ective strategies to minimize the environmental impacts caused by ouroperations. Moreover, we maintain close relationships with all stakeholders,including local communities where we operate, our employees, localgovernments, and various non-pro?t organizations.
Environmental Management
Environmental CommitmentsOur commitment to sustainability is rooted in making environmental protection the foundation of our long-term strategic goals.Our dedication to sustainability is evident in the following several key practices:
Environmental Management SystemTo standardize our daily environmental management e?orts, ensure the health of our employees, and create a clean and suitableliving and working environment, we have established a series of environmental protection regulations. Under the guidance of thepolicies of "comprehensive planning, rational layout, integrated utilization, turning harm into bene?t, compliance with laws, cleanproduction, building eco-enterprises, and pursuing sustainable development paths", we endeavor to comprehensively enhancethe environmental management standards across our facilities.
In order to align environmental protection management more closely with actual production and improve management e?ciency,PAK has established environmental protection committees at each production base. These committees coordinate and guidethe environmental protection work of each base, quickly respond to and address environmental issues, and minimize delays ininformation transmission and decision-making, according to the local environmental conditions, legal requirements, and societalexpectations.We implement all feasible measures to mitigate the negative environmental impacts
caused by our production and operations.
EnvironmentalManagement
1. Regularly adjust and enhance our environmental management policies.
2. Conduct training to elevate employees' awareness about the environment.
3. Support employees to put forward methods to improve our environmental management systems.
Investmentprojects
1.Support employees to put forward methods to improve our environmental management systems.
3.Engage third parties to perform assessments..
3. Ensure that our investment projects do not impact highly sensitive and fragile natural environments
or environmental reserves that require protection.EnergyManagement
1. Boost energy e?ciency within production processes and reduce unnecessary energy consumption.
2. Increase the utilization of clean energy sources to improve our energy structure.
3. Implement measures aimed at reducing greenhouse gas emissions.
Product R&D
Our product technology R&D is closely aligned with environmental considerations, aiming to achieve
the key objective of "creating lighting with high power and low energy consumption".Emissionsmanagement
1. Ensure that all our waste and emissions are processed in compliance with relevant regulations.
2. Invite quali?ed third parties for testing.
Environmental
data
Regularly disclose our environmental data to all stakeholders.
ISO 14001:2015EnvironmentalManagementSystem Certi?cationZhaoqing Clean Production Enterprise Certi?cation
Director of the Environmental
Protection Committee
Director of the Environmental Protection CommitteeEnvironmental Protection Committee
Chairman of the Labor UnionO?ce of the Environmental Committee(HR & Administrative Dep.)HardwareProduction
Dep.
ElectronicProduction
Dep.
AssemblyProduction
Dep.
HR &dministrativeDep.
Finance
Dep.
EquipmentDep.
QualityControl
Dep.
Technical
Dep.HardwareWorkshop
ElectronicWorkshop
No.1AssemblyWorkshop
No.2AssemblyWorkshop
PackagingProduction
Dep
Planning
Dep.No.3AssemblyWorkshop
Organizational Chart of Environmental Protection Committee of Chongqing PAK
As of the end of the reporting period, the company has obtained ISO 14001:2015 environmental management systemcerti?cation, and its subsidiary, Zhaoqing PAK Lighting Co., Ltd., has passed the provincial-level certi?cation for cleanproduction enterprises.
During the Reporting Period:
CNY
1.1711
millionOut total environmental
Input is
Organizational Chart of Environmental Protection Committee of Zhaoqing PAK
Environmental Risk ManagementTo ensure the environmental safety of each production base and the surrounding areas of production equipment, PAKhas established mechanisms for environmental risk identification and assessment. We regularly carry out comprehensiveenvironmental risk assessments based on risk categories and impacts, and develop appropriate response measures to ensuretimely control of risks. The results of risk assessments will be detailed in our risk assessment reports.Furthermore, we conduct regular environmental impact emergency response drills to ensure that frontline staff can respondquickly and e?ectively to major environmental emergencies, thereby safeguarding environmental safety.
EnvironmentalRisk EmergencyResponse Drill
Risk Assessment
Following the principle of "Prevention Girst", PAK consistently endeavors to minimize the potential impacts on the surroundingnatural environment by regularly identifying potential environmental hazards, inspecting equipment, and monitoring the progressof our employees' work.Investigation of Hidden Dangers
Sewage treatment stationbefore recti?cation
Sewage treatment station after recti?cation(with the Safety Operation Procedures posted)
Hazardous waste warehouses
before recti?cation
Hazardous waste warehouses afterrecti?cation (with debris removed)
During the Reporting Period:
Leading Group of the EnvironmentalProtection CommitteePrimary Responsible Person
Main Responsible PersonEnvironmental Protection CommitteeFunctionalDepartment
No.1 ProductionDepartment
No.2 Production
Department
Planning Dep.Technical Dep.Equipment Dep.Planning Dep.HR &dministrativeDep.
FinanceDep.
No.1ProductionDepartment
PlanningSection
ProductSectionNo.2ProductionDepartment
Warehouse
Section
ProcessSection
ProductionEquipment
Section
BasicEquipment
Section
Planning
Dep.
All Employees
Survey and analysis of the basic situation of enterprises
Calculate the ratio of the quantityof substance at risk of gas (or water)seepage to its threshold quantity (Q)Control level of productionprocess and atmospheric (oraquatic) environmental risks (M)
Ratio (Q) of the quantity ofsubstance at risk of gas (or water)seepage to its threshold quantity (Q)
Sensitivity degree of atmospheric(or water) environmental risk
receptors (E)Atmospheric (or aquatic) environmental accident risk levelEnvironmental accident risk level of enterpriseGeneral environmental riskGreater environmental riskMajor environmental risk
PAK's Classi?cation Process for Environmental Accident Risk of Enterprise
Q<1
Q≥1
Through the investigationof environmental hiddendangers, we identi?ed atotal of
sites withpotential safety risks andachieved a recti?cationrate of100%
.
As of the Reporting Period:
Raising Environmental AwarenessPAK is committed to actively fostering environmental awareness among our employees, partners, contractors, and local communitiesin areas where we operate. Through various channels and modes such as environmental training, promotional campaigns, andcommunity engagements, we convey to them the importance of environmental conservation, guide them to actively participate inenvironmental actions, and contribute to creating a green and sustainable ecosystem.
Training on Environmental Protection for Employees
Lighting systems represent a rapidly evolving sector with immense potential for reducing energy consumption and carbon emissionand accelerating progress towards "carbon peaking and carbon neutrality"goals. As one of the pioneers in China's green lightingtechnology sector, PAK is responsive to the national call for "energy conservation and emissions reduction". We are committed togreen development, advancing urban and rural construction towards green and low-carbon goals through innovations in intelligentinterconnected LED lighting and other high-e?ciency, energy-saving lighting products.
Green Lighting
Green DesignPAK upholds the core concept ofgreen design, consistently pursueshigh-quality development, andincorporates energy-saving andconsumption-reducing featuresinto our product design. By fullyimplementing carbon reductionacross the life cycle of our products,PAK sets a green developmentbenchmark for the industry andleads the trend towards sustainableconsumption.
Green ProductsWith increasing consumer demand for lighting, intelligent lighting emerges as the most effective response, poised to define thefuture of the lighting industry. To this end, PAK deploys three major intelligent lighting systems and integrates cutting-edge productsand technology to cater to varied lighting needs across real estate, public spaces, commercial chains, industrial settings, intelligentemergency response, outdoor landscapes, and residential lighting for diverse populations and building types. By precisely controllinglighting parameters such as on/o? switches, brightness, and color temperature, PAK minimizes energy waste. In addition, we use energy-e?cient LED ?xtures and eco-friendly materials to further reduce carbon emissions, and foster the innovative co-development of greenenergy-saving and intelligent solutions, thus supporting the achievement of the "carbon peaking and carbon neutrality"goals.KNX series intelligent lighting systemOur intelligent lighting system of the KNX series (the "KNX Series") combines e?cient light sources with an intelligent control system anduser-centered design. Primarily used in large buildings like factories and airports, it employs advanced intelligent control techniques forprecise manipulation of light switches and brightness levels, avoiding unnecessary and excessive lighting to optimize energy use.Furthermore, the KNX Series allows for the rational zoning and timing of lighting. It integrates illuminance and infrared technology tooptimally utilize natural light, achieving unmanned intelligent control that further enhances energy e?ciency and reduces emissions.
"Smart "series intelligent o?ce lighting SystemWith the rapid economic and social development, the quantity of commercial o?ce buildings is steadily increasing, leading to evolvingo?ce environments where scene-based lighting demands are becoming a focal point. In response to emerging trends, PAK has adeptlynavigated the market dynamics, actively leveraging our technological innovation to develop the "Smart"Series of intelligent officelighting systems.The "Smart"Series includes intelligent components designed to avoid energy wastage from di?cult-to-control public area lighting suchas "always-on lights"and "unmanned lights". Additionally, it uses a constant illuminance sensor to monitor outdoor light intensity anddynamically adjust indoor lighting levels to prevent "daytime lights"when natural light is abundant.
The "Smart"Series prioritizes both comfort and energy e?ciency in o?ce lighting. It leverages minimal e?ort for maximum impact tofoster a green, low-carbon approach to both production and lifestyle, thus promoting the achievement of the "carbon peaking andcarbon neutrality"goals.
Design concept
Materials that negativelyimpact the environmentor product safety shouldnot be used.
Requirements on productrecyclability, durability,and packaging should beput forward.
Resource attributes
Emphasis should be placedupon the energy-savingattributes of our productscompared to traditional
lighting tools.
Energy attributes
Environmentalattributes
With the combination of radar sensing communication technologyand human circadian rhythm intelligent lighting solutions, the KNXseries of intelligent lighting systems can save more than40%
of energy consumption comparedto traditional lighting systems.
100,000
According to data calculations, adopting the "Smart"Seriesintelligent o?ce lighting solution in a
43.5%
annually, reducing carbon emissions by
1,500
tons.-square-meter comprehensive o?ce buildingcan achieve a maximum energy saving of
Bluetooth/PLC lighting systemPAK's Bluetooth/PLC lighting system is an intelligent lighting control system that is based on the power line carrier communicationtechnology. This system uses electrical wiring as a transmission medium, enabling the remote control and smart management oflighting fixtures. It significantly reduces the energy consumption of lighting fixtures and, consequently, lowers carbon emissionsassociated with electricity generation.Additionally, through rational light regulation and intelligent control, the Bluetooth/PLC systems can reduce the overheating andexcessive use of lighting ?xtures, thereby extending their lifespan. This not only diminishes the frequency and cost of replacements butalso lessens the environmental impact of discarded equipment.
Comprehensive Lighting Project for the Guangzhou Baiyun Railway Station - Illuminatinga Low-Carbon Railway StationBaiyun Railway Station is dedicated to constructing a green buildingthat is energy-efficient, low-consumption, and comfortable. In high-speed rail operations, lighting systems account for a signi?cant portion ofenergy usage, making their energy e?ciency crucial. Through our lightingsolution, which centered around green and energy-saving, we employedhigh-brightness, low-consumption fixtures that maximize the use ofnatural light to minimize energy waste. Additionally, we used indirect andanti-glare lighting techniques combined with botanical shading to createa comfortable, glare-free environment. Additionally, through intelligentcontrol, we enable Baiyun Railway Station to automatically save energyduring the night, thereby reducing energy consumption and light pollutionto meet green and low-carbon objectives.Baiyun Railway Station is dedicated to constructing a green building that is energy-e?cient, low-consumption, and comfortable. Inhigh-speed rail operations, lighting systems account for a signi?cant portion of energy usage, making their energy e?ciency crucial.Through our lighting solution, which centered around green and energy-saving, we employed high-brightness, low-consumptionfixtures that maximize the use of natural light to minimize energy waste. Additionally, we used indirect and anti-glare lightingtechniques combined with botanical shading to create a comfortable, glare-free environment. Additionally, through intelligentcontrol, we enable Baiyun Railway Station to automatically save energy during the night, thereby reducing energy consumptionand light pollution to meet green and low-carbon objectives.
Green StandardsSince 2005, PAK has pioneered the concept of "light health"in the industry, focusing on four keyindicators: energy e?ciency, environmental protection, safety, and comfort. We have continuallydriven the development of corresponding green standards, aiming to enhance industry-widegreen standards and foster collective progress. Furthermore, PAK has been deeply involvedin drafting industry green standards and completed several standards for green and healthylighting, including theCode for Electrical Green Design Application of Civil Building, Standard for LightingDesign of Interior Decoration, Life Lighting Handbook for Healthy Lighting, where theQ/PAKJ001-2021Requirements on LED Products for Indoor Lighting was recognized as a leading corporate standard.
Leading CorporateStandard Certi?cate
Energy-Saving Lighting Renovation in the Comprehensive Office Building of He'nan Provincial OrgansTo robustly promote energy resource conservationand ecological environmental protection in the publicinstitution, achieve energy savings and green officeenvironments, and create energy-e?cient o?ce spacesfor the public institution, the Management Center ofthe Comprehensive O?ce Building of He'nan ProvincialOrgans implemented an energy-saving lighting retro?t.PAK was responsible for this renovation project andleveraged our professional expertise and extensiveexperience to tailor an efficient and energy-savinglighting system for the o?ce building.
Nanjing Focus Technology Building Fully Wireless Intelligent Sensor Lighting ProjectO?ce buildings consume a signi?cant amount of energy. Through intelligent solutions, PAKbalances the comfort and energy e?ciency of o?ce lighting, helping the project achievedual carbon goals.In the Nanjing Focus Technology Buildingproject, the company dedicated itself to creating a120,000-square-meter fully intelligent lighting solution for the entire building. Depending onthe usage functions and artistic needs of di?erent spaces in the building, wireless intelligentcommunication control was adopted to achieve functions such as dimming, colortemperature adjustment, and human body sensing. It can also automatically adjust indoorlighting intensity based on daylight conditions, ensuring constant indoor illumination andminimizing energy consumption. This fully re?ects the green, energy-saving, and sustainabledevelopment concepts of the Nanjing Focus Technology Building，demonstrating highreliability, ?exibility, and scalability.Automatic control of workstationlighting, saving approximately40%
energy in the o?ce area.
With the combination of radar sensing communication technologyand human circadian rhythm intelligent lighting solutions, theBluetooth/PLC lighting system can save more than
40%
of energy consumption comparedto traditional lighting systems.
The project achieved anoverall power-saving rate of
49.7%
which is projected tosave approximately CNY
in annualelectricity costs.
China Environmental LabelingProduct Certi?cation
"Linear Lit V"Series LED Classroomand Blackboard LightsChina Green Building MaterialsCerti?cation (Three-star Rating)"Lit V"Series LED Light Panels"Star"Series LED Downlights"Tuxing"Series LED Street Lights
Case
Constant illuminance e?ect in the conferenceroom, saving approximately
60%
energy in the conference room area.
Unattended and constant-illuminancesmart lobby, saving approximately
30%
energy in the lobby and public areas.
Case
Case
thousand
Green MaterialsIn our production activities, we primarily use paper-based materials for packaging. To achieve sustainable development goals forrecycled materials, we actively promote the reuse of cartons and other packaging, continuously re?ne our materials recycling system,enhance the e?ciency of using secondary packaging and in-?lls, and substantially reduce the consumption of logistics packaging.Other packaging materials include plastics,foam and so on.In the continuous effort to promote recycling, the company has discovered that wooden pallets have tremendous potential forsecondary utilization compared to traditional materials. They are easy to repair and reuse, e?ectively improving the recycling rate ofwarehousing supplies.
Empowering Green ManufacturingIndustrial lighting accounts for approximately 70% of total lighting energy consumption, presenting asignificant opportunity for energy savings. By implementing LEDs and smart interconnected lightingsystems, energy consumption can be reduced by up to 80%. Therefore, PAK, committed to promotinggreen lighting, innovatively applies green smart manufacturing technologies to help various industriesbuild intelligent green factories. We have developed full-scenario intelligent lighting solutions that havebeen successfully deployed in facilities such as Ningde Times, Oriental Yuhong, 3TREES, Mlily, Vipshop,Yunda Express, and Rookie Logistics and enhanced their operational e?ciency.
PAK & Mlily Factory Smart Lighting SolutionPAK & 3TREES Factory Smart Lighting Solution
Energy Management
Energy Management SystemTo enhance energy e?ciency and foster sustainable development, we have established theRules for the Management of Resource and Energy Conservation to promote the e?ectiveuse of resources and the e?cient management of energy through a series of measures andpolicies, thus ensuring the sustainability of our bases.
ISO 50001 Energy ManagementSystem Certi?cation
In 2022, the company has obtained ISO 50001 Energy Management Systemcerti?cation.
80%
Reduce ElectricyCconsumption by
Energy-saving ManagementObjectives
To bolster energy-saving management, we have revised our 2023 energy strategy to establish energy-saving targets and assessmentcriteria for key indicators such as industrial and domestic natural gas. Furthermore, we regularly analyze the performance against theseindicators and the progress of energy-saving projects, making targeted improvements on critical aspects of energy conservation.
Industrial gas
≧
(m
/m
)Domestic gas
≤
0.1
(m
/person/day)
Energy-saving targets:
Use natural gas economically and provide trainingfor employees;Ensure full-capacity operation in workshops;Establish natural gas leak prevention facilitiesequipped with emergency procedures.
Actions for energy conservation:
Energy Usage of PAK in 2023
43.77
t
Gasoline
106.57
ten thousand m?
Natural Gas
22,087,897
kWhPurchased Electricity
Direct Energy Consumption
Indirect EnergyConsumption
226.57
t
Diesel Fuel4,526.52
tce
Comprehensive Energy Consumption
Carbon Management
PAK places great emphasis on managing carbon emissions across all stages from design and production to operation and maintenanceof production facilities, striving to reduce the carbon footprint of our products. Our efforts to reduce carbon emissions include theinstallation of photovoltaic panels and the replacement of diesel vehicles with electric ones. Additionally, we actively explore energy-saving potentials in daily operations, like enhancing lighting efficiency, to achieve green, low-carbon, and efficient operations thatcontribute to sustainable development.
Responding to Climate Change
The company is committed to promoting the transition to green energy. PAK Lighting has currently invested nearly
1.2
million yuanin a distributed photovoltaic power generation project with a capacity of
533.60
kW on the roof of its factory, covering an areaof2,377
square meters. Adopting the model of "self-generation and self-consumption with surplus power grid connection," itis expected to generate
580,000
kWh of electricity annually. The company will continue to invest in promoting renewableenergy projects, aiming to reduce electricity costs and improve the air quality of the local community, injecting new vitality into the pathof sustainable development.
Renewable Energy
Installation of Photovoltaic Equipment
PAK is transitioning from fuel-powered forklifts to electric forklifts for in-plant transportationand handling and eliminating exhaust emissions from the in-plant transportation process, thussigni?cantly reducing energy consumption and achieving green transportation.Green Transportation
Electric ForkliftsPAK's GHG Emissions
During the Reporting Period:
15,746.73
tCO
eTotal greenhouse gas emissions
Coping with Extreme WeatherClimate change, with its inherent uncertainty and complexity, leads to extreme weather such as typhoons and ?oods that may damageplant facilities, equipment, and o?ce buildings, potentially causing signi?cant asset losses for PAK.Extreme weather trigger a series of knock-on e?ects, including equipment damage, disrupted employee attendance, and transportationroute interruptions, all of which may severely hinder our stable production indirectly. In response, PAK has integrated extreme weatherrisk management into our overall risk management system, enhancing our resilience and ability to respond to catastrophic climateconditions.
3,150.01
tCO
e
Greenhouse gas emissions (Scope 1)
12,596.73
tCO
eGreenhouse gas emissions (Scope 2)
The company hasreplaced over
electric forklifts
As of the end of thereporting period
PAK places a high priority on water resourcemanagement and continually enhances our watermanagement practices to ensure efficient water useand responsible wastewater discharge. As part ofour strategy for environmental protection, we arecommitted to establishing partnerships with localcommunities, governments, and investors to collectivelyimprove water resource management.We also ensure the e?ectiveness of our water resourcemanagement strategies through regular monitoringand use advanced technologies to track and analyzethe use of water resources, so as to identify and resolveproblems in a timely manner. Furthermore, we conductregular training on water resource protection to increaseemployee awareness of the importance of waterresource management and encourage every employeeto actively engage in water resource protection e?orts.
Water Resources Management
Industrial water use target:
≧1,100
(m?/ton)Domestic water use target:
≤0.1
(tons/person/day)
Water resource management objectives:
Formula for industrial water use target: powder spraying area (m?) / monthly water consumption (tons)
Formula for domestic water use target: domestic water use (tons) / total number of employees / days attended
All targets have been met.
Achievements:
Routine preventive actionsEmergency response measures1．Maintain constant contact with local meteorologicaldepartments and emergency authorities to collectvarious weather warning information at any time andcommunicate it within the company.2．Conduct regular inspections and maintenanceof production facilities and equipment.3．Strengthen the structures of important productionfacilities and buildings to enhance their resistance towind, ?ood, and other natural disasters.4．Stockpile emergency supplies such as sandbags,water barriers, walkie-talkies, raincoats, etc.5．Regularly inspect and clean the drainage systemto ensure its unobstructed ?ow and prevent wateraccumulation and ?ooding.6．Arrange for dedicated personnel to conductpatrols and prepare for production reduction oreven shutdown based on the situation.7．Establish an emergency communicationmechanism, set up an emergency duty position withinthe company, and ensure smooth communicationchannels.
1．In case of abnormally high-temperature weather, closelymonitor electrical facilities such as the company's powerdistribution room and distribution cabinets in the area toprevent ?re hazards due to excessive power loads.2．In the event of natural disasters such as heavy rain and?ooding, promptly inspect workshops and warehouses for leaksand take temporary measures to address them. Keep a closeeye on the flow of water in the factory's drainage ditches and?ood discharge channels to prevent ?ooding. Move vehicles tosafe locations at higher elevations. Transfer outdoor materialsstacked in the open to indoor storage in the warehouse as muchas possible, and ensure that those that cannot be transferredare properly covered.3．For natural disasters such as heavy rain occurring duringwork hours, arrange work shifts and transportation schedulingbased on information from meteorological departments. Fornatural disasters such as heavy rain and flooding occurringbefore work shifts, arrange work shifts reasonably based ontra?c conditions.4．In the case of continuous heavy rain, simultaneously monitorthe geological conditions of the surrounding mountains toprevent natural disasters such as landslides or mudslides.Promptly evacuate personnel from the surrounding areas of thefactory and suspend production and operations.
PositionResponsibilitiesGroup Leader
Listen to reports on the situation promptly, immediately convene group members to study andprepare countermeasures, and organize emergency response actions.Deputy Group
Leader
Under the uni?ed direction of the Group Leader, promptly report to senior management andrelevant managing departments and direct the related departments in carrying out emergencyresponse and subsequent recovery actions as per the prepared disposal plans.Group Members
Ful?ll responsibilities and tasks assigned by the Emergency Response Leading Group and reportthe status and completion of these tasks in a timely manner.
Responsibilities for coping with extreme weather:
Extreme Weather Response Drill -Install barriers at the entrance of theunderground garage to block rainwater
Prevent Landslides -Reinforce the slope of the rear mountain
Prevent Flood Inundation -Raise the drainage channel
Water Consumption of PAK
Note: The above resource consumption ?gures are based on consolidated data.
151,795
tIn 2023
Wastewater Management
PAK fully recognizes the signi?cant responsibility of environmental protection. We not only strictly control pollutant emissionsduring the production process but also actively introduce advanced environmental technologies to ensure that every stagecomplies with environmental standards. Furthermore, we rigorously adhere to pollution compliance requirements andscienti?cally and e?ectively treat pollutants produced to ensure they cause no harm, thus achieving harmonious coexistence withthe environment and laying a solid foundation for our sustainable development.
Environmental Impact Control
Environmental Testing
PAK is committed to environmental protection and pollutionminimization and considers them a solemn pledge to ourstakeholders. To ensure this commitment is e?ectively ful?lled, weguarantee that all emissions either meet or surpass establishedstandards. We regularly engage third-party assessmentorganizations to conduct rigorous testing of our wastewater,exhaust emissions, and noise levels. These organizations operatein accordance with national laws and regulations, ensuring thestrictness and compliance of their evaluations.During the Reporting Period, PAK conducted 15 tests onwastewater and exhaust emissions. According to reports fromthird-party assessors, our emissions meet all national legalstandards, demonstrating our firm commitment and activeengagement in environmental protection and pollution control.
Wastewater and ExhaustGas Emissions Detection
times
During the Reporting Period:
To minimize wastewater discharge, we employ innovative wastewatertreatment technologies and solutions. We implement the separation ofindustrial and domestic wastewater streams and enhance the e?ciency ofrecycling drainage and reusing wastewater to signi?cantly contribute to oure?orts in building a greener and more beautiful environment.In 2023, the Chongqing Production Base adjusted the production methodsof some production lines and adopted alternating production. This measurenot only reduced the water consumption of the Chongqing ProductionBase, but also reduced wastewater discharge by over 50%. In addition, theChongqing Production Base also implemented the "F21 Scheme to Reducethe Water Content of Sludge in Wastewater Treatment Stations". Throughmechanical dehydration of the sludge in the wastewater treatment stations,the water content of the sludge was reduced to 60-70%, thereby reducingthe weight of the sludge and saving costs on sludge clearing and hazardouswaste disposal. This scheme officially began operating in March 2023and successfully reduced the water content of sludge by 50%, achievingremarkable environmental protection bene?ts.
Discharge of wastewater
PAK has prepared an annual plan for monitoring and observing environmental impacts to facilitate the organization and executionof environmental impact control and monitoring e?orts.To enhance our ability to detect and assess the impacts of our production activities on the surrounding environment, we regularlyengage third-party agencies to conduct comprehensive assessments of our wastewater discharge. These assessments primarilyfocus on detecting and analyzing key parameters such as pH levels, chemical oxygen demand (COD), total suspended solids (TSS),phosphates and petroleum-based compounds in samples, enabling us to evaluate our facility's environmental footprint. Thesestudies and data serve as the basis for the Company's understanding of the nature, magnitude and scope of its environmentalfootprint. The ?ndings from these studies also inform the Company's e?orts to re?ne its environmental management practices.
Wastewater Detection
Waste Gas ManagementManaging air pollutant emissions stands as a key component of PAK's environmental protection and climate strategy.To regulate the release of air pollutants, PAK engages third-party testing entities to conduct rigorous assessments. Thispractice ensures the timely receipt of dependable insights into the environmental status of regions a?ected by the Company'smanufacturing facilities. Armed with such timely analysis in the course of business operations, the Company can planenvironmental protection measures, oversee their execution, and make informed managerial decisions.To further reduce the company's impact on the atmospheric environment during production activities, the Chongqing ProductionBase has implemented the "F22 Powder Spraying and Curing Exhaust Gas Treatment" scheme. This scheme involves treating theexhaust gas generated from powder spraying and curing with activated carbon and then discharging it through a 17m high exhauststack. By upgrading the exhaust gas collection pipeline and adding new activated carbon integrated machines, the scheme aimsto reduce emissions of non-methane total hydrocarbons. The scheme has been stably implemented since January 2023 and hasachieved certain environmental, economic, and social bene?ts.During the reporting period, Chongqing PAK emitted 0.26 tonnes of exhaust pollutants and Zhaoqing PAK emitted 0.12 tonnes ofpollutants.
During theReporting Period
Domestic wastewaterIndustrial wastewater
Sources ofwastewater:
Introduction of alternatingproduction linesReduction of sludgemoisture content
Measures to reducewastewater:
2,411
t
52%
Wastewater Discharge Volume of
Chongqing PAK
Compared to the previous year, theVolume has decreased by approximately
Solid Waste ManagementThroughout its production and operation, the Company has been always committed to minimizing waste generation andamplifying recycling endeavors. To this end, the Company has devised a comprehensive, long-term strategy for managinghazardous substances. Employing cutting-edge tech innovations and equipment, it endeavors to reduce waste generation tothe utmost degree while elevating recycling rates. Meanwhile, the Company has instituted a comprehensive hazardous wasteclassi?cation framework, enabling precise comprehension of the attributes and disposal requisites of diverse waste categories.This facilitates the adoption of more scientifically informed and proper management practices, thereby mitigating the risksinherent in waste disposal and enhancing the overall e?cacy of hazardous waste management.
Summary of PAK Solid Waste Disposal
Following the collection of hazardous waste, the Company labels each waste batch with discernible details such as description,ID and hazard categorization in strict accordance with regulatory requirements. This ensures accurate identi?cation and controlat every procedural node. Before the expiration of the waste storage duration, the Company submits transfer applications tothe district environmental protection bureau by following the procedures for generating a duplicate form for hazardous wastetransfer. This ensures the legality and regulatory compliance of each operation.Moreover, the Company has forged closed alliances with specialized environmental protection entities to responsibly transferhazardous waste generated during production for pro?cient disposal, thereby mitigating potential environmental hazards.
Green Operations
Biodiversity ConservationThe Company upholds strict adherence to national environmental laws and standards, safeguarding maritime and terrestrialecosystems from adverse impacts. Every capital investment project undertaken by the Company incorporates measures tominimize its environmental footprint. While responsibly exploiting natural resources, emphasis is placed on safeguardingecological environment.Throughout the Reporting Period, the Company refrained from establishing production bases or operational sites within oradjacent to natural reserves or biodiversity hotspots outside natural reserves. None of the Company's operational activities,products or services had a material adverse impact on biodiversity.
Green O?ceIn its day-to-day operations, the Company champions a paperless office culture, reducing the unnecessary use of paperdocuments and forms. Meanwhile, it implements an O?ce Automation (OA) system to facilitate seamless o?ce work?ows. Thisinitiative is poised for wider adoption and implementation in the future, aiming to achieve full electronic o?ce management.
Garden Factory
Our Production Bases engage in the cultivation of diverse indigenous plants and trees in the vicinity, strategically designing thelayout of factory areas for production, o?ce and living spaces. This endeavor not only enhances the aesthetics of the environmentand fosters biodiversity but also contributes to the absorption of carbon dioxide, release of oxygen, and reduction of air pollution.Consequently, the entire factory premises flourish with verdant landscapes, providing employees with a comfortable andharmonious work environment. Furthermore, it sets a shining example for the industry’s green and sustainable developmente?orts.
Greening Initiatives Surrounding PAK
During the Reporing Period:
648.97
t
100%
General Industrial Solid WasteDisposal Volume
Compliance Rate of GeneralIndustrial Solid Waste Disposal
8.64
t
100%
Hazardous Waste Generation
Volume
Compliance Rate of Generated
Hazardous Waste Disposal
Note: The above emissions are all based on consolidated data. Generation intensity is calculated asthe total amount of waste generated divided by the company's annual total revenue.
Enhancing Quality andE?ciency to Drive Value Growth
Research andDevelopment (R&D) andInnovation
ProductLiability
Elevating CustomerExperience
Supply ChainManagement
DealerManagement
As of the Reporting Period:
R&D System
The Company has developed theProduct Development Design Management Proceduresfor the purpose of delineating the new productdevelopment process within the R&D Center and standardizing the collaborative requisites across various roles. This proceduraldocument ensures that the features, cost, quality and temporal milestones of new product development meet the demands of theMarketing, R&D and Quality Control departments. Since 2022, the Company has embraced the Integrated Product Development(IPD) matrix governance model. This model segments the R&D process into six phases, interlinking them in a matrix format. Suchpractice guarantees not only the ful?llment of customer requirements but also the e?cient allocation of design resources, therebyshortening product development cycles and reducing developmental costs.The R&D Center is structured into two principal departments and nine specialized divisions based on functionality, with a primaryfocus on independent research and design for all new products. Each division is tasked with the research and design of variouslighting ?xtures, ensuring that products meet established standards in terms of functionality, aesthetics and usability. Moreover,there's seamless collaboration among the divisions. Through ongoing innovation and optimization efforts, they drive productupgrades to meet user needs and boost market competitiveness.
Research and Development (R&D) and Innovation
Total Number of R&D Team
Members
Core Technical Sta?
Scienti?c and Technological InnovationThroughout the Reporting Period, the Company's R&D Center has been vigorously engaged in R&D endeavors in the fields ofThermodynamics, Optics, Electronic Control Technology and IoT. In the realm of mechanics, our pursuit lies in achieving unparalleledstability and durability of our products. Within optics, we continuously explore novel avenues, striving to deliver exceptional lightingexperience to our users. In the domain of electronic control technology, we focus on developing highly efficient and stable controlalgorithms, enabling precise control in intelligent illumination systems. Concurrently, we actively embrace IoT technology to propelforward the evolution of remote control and intelligent adjustment functions of intelligent illumination systems. Through sustainedinnovation and breakthroughs in these pivotal domains, we're dedicated to providing users with superior, intelligently crafted lightingsolutions, thus spearheading the illumination industry towards unprecedented heights.
Research and Development Field
In the Reporting Period, the Company unveiled its Indoor Sunlight Simulation System, ingeniously blending optical and electricalelements to faithfully recreate the spectrum of natural light. Through a distinctive visual ?eld folding design and the integration ofdiverse light sources and IoT technology, this system fosters a welcoming and tranquil lighting ambiance. It e?ectively mitigatesthe stresses of indoor environments, o?ering users a lighting experience that promotes both health and comfort.
Innovative Achievements
CAF LightingCAF Lighting - Application in Healthcare Settings
The Company has garnered a host of prestigious honors, including recognition as a High-tech Enterprise, a KeyResearch and Development Entity in Guangzhou, an LED Lighting Control System Engineering Technology R&DCenter in Guangdong Province, an Enterprise Technology Center in Guangdong Province, a Benchmarking Enterprisein the Innovative Technology Industry 2022, a National Intellectual Property Advantageous Enterprise, a participantin the Guangzhou High-Value Patent Cultivation Project, and an Intellectual Property Demonstration Enterprise inGuangzhou, etc. These accolades underscore the Company's expertise and prowess in the sphere of LED lightingcontrol systems, highlighting its excellent performance in technological innovation and R&D capabilities.
Provincial EnterpriseTechnology Center
High-Tech Enterprise Certi?cateBenchmarking Enterprise in the
Innovative Technology Industry 2022
R&D CenterR&D Department
Commercial
LightingDivision
OverseasElectricalAppliancesDivision
Electrical andElectricalEngineeringDepartment
TechnicalSupportSection
Outpatient
Surgery
Industrial
DesignDivision
Technology
PlatformSection
ProjectManagement
Section
IntegratedData Section
Intelligent ProductProject Department
R&D Center Organization Chart
During the Reporting Period:
67.9620
Investment in R&D
million
2.89%
Proportion of R&D Expenditure to Operating Revenue
CNY
To further enhance project management and optimize the internal collaboration mechanismsof the research and development department, the company has established clear assessmentcriteria and reward and punishment regulations to comprehensively and concisely evaluate thework performance of the company's research and development personnel.The company actively implements a project reward system, regularly rewarding projects thathave been completed and quali?ed. According to statistics, nearly 150 projects have receivedrewards during the reporting period, fully enhancing the work enthusiasm of employees andinjecting new vitality into the company's continuous innovation and development.
Incentive Mechanisms
Research and Study Activity
In November 2023, the College of Furniture and Art Designat Central South University of Forestry and Technologyled a delegation of over a hundred students to embarkon an academic study tour to PAK HQ. During the visit, anengineer from the Company's Intelligent Products Divisiondelivered a lecture titled "Intelligent Lighting and HighQuality Life", explaining the working principles of intelligentlighting systems through real-world applications.This immersive experience facilitated a profoundcomprehension among the students regarding the uniquebene?ts of illumination in diverse spatial contexts.
Industry-University-Research Collaboration
At present, PAK has forged partnerships with more than one hundred academic institutions, establishing educationalcollaboration hubs to facilitate practical training. We empower the next generation by infusing cutting-edge technologicalconcepts into educational settings. Looking ahead, we will remain resolute in our commitment to progress, fosteringresources sharing between academia and industry to invigorate endeavors toward high-caliber development.
nearly
projects havereceived rewards
Intelligent ManagementThe Company is actively driving forward its digitization e?orts to realize more e?cient project management and enhanced R&Dcollaboration. During the Reporting Period, the R&D Center made signi?cant strides in adopting and implementing cutting-edgeproject management software - E-Line. This initiative streamlined project management workflows, bolstered work efficiencyand ensured the smooth progression of projects. Furthermore, the utilization of E-Line has strengthened interdepartmentalcoordination, facilitated real-time information sharing, fostered communication and collaboration, shortened project cycle, andelevated both the e?ciency and quality of R&D e?orts, injecting a fresh impetus into the Company's growth trajectory.
E-Line Project Management SystemIntellectual Property ManagementThe Company places paramount importance on safeguarding intellectualproperty rights. To streamline the management procedures pertainingto patent affairs within the R&D Department, we've formulated theRegulations on Patent Affairs Management of the R&D Department. Theseregulations standardize processes encompassing patent applications andadministration, thereby fortifying our commitment to intellectual propertyprotection. We've garnered accolades such as the First Prize of GuangdongScience and Technology Progress Awards, China Patent Award, and NationalIntellectual Property Advantageous Enterprise.
Intellectual Property System
Top 50 Enterprises for Intellectual Property
Prowess in China's LED Industry 2022
As of the Reporting Period:
Cumulative ValidPatents Granted
Total Valid TrademarksRegistered at Home And Abroad
Cumulative SoftwareCopyrights
Driving Industry DevelopmentThe Company not only pursues excellence in R&D and production but also actively engages in industry standardization. By deeplyimmersing itself in these endeavors, the Company cultivates broad networks with experts, scholars and peers both within andbeyond the industry. This move enables us to stay abreast of the latest industry dynamics and emerging trends, facilitating abetter understanding of market demands.
Mainly Participated in the Formulation of Standards
and Technical Speci?cations
Category
Specifications for Home Intelligent Lighting Design w/o Main LightSocial organization standardsAssessment Requirements for Quality Grading and Forerunner - LED Panel Lights for General
Lighting Applications
Social organization standardsAssessment Requirements for Quality Grading and Forerunner - LED Indoor Lighting ProductsSocial organization standardsTechnical Specifications for Outdoor Performance and Landscape Lighting FixturesSocial organization standardsTechnical Specifications for Rating Premium Spectrum in Healthy Lighting Products
(Healthy Light Index)
Technical specifications for
product certi?cation
The Company has established dedicated roles for intellectual property management within the organizational framework. Amongthem, Technical Manager is responsible for planning of intellectual property initiatives and personnel oversight; Patent Engineer isresponsible for the review, retrieval and evaluation of technical documentation; and patent specialists are responsible for trackingapplication fees and overseeing intellectual property documentation, ensuring the smooth progression of intellectual propertyinitiatives.During the reporting period, the company has ?led for 8 new invention patents, and has obtained 1 invention patent, and 43 utilitymodel patents.
During theRepoting Period
End-to-End Intellectual Property ManagementBefore Project Proposal
Patent navigation is performed before project proposal to understand the technologicaldevelopment trends and hotspots for the prior art. This insight not only informs specificproject decisions but also sparks inspiration by leveraging prior art as design references.During Research andDevelopment
As design proposals take shape, risk assessments are conducted on the new proposals.Utilize patent searches across competitors and within the relevant field to gauge potentialinfringement risks, enabling proactive and orderly design around.After Confirmation ofR&D Solution
Swiftly implement measures to safeguard intellectual property rights once R&D strategies are?nalized.
Since its inception, the Company has embodied a spirit of pioneering innovation and unwavering progress, placing paramountimportance on product technology research and talent cultivation. It has embraced the path of independent innovation andproprietary brand. The Company has undertaken the following measures to safeguard both its own and others' intellectualproperty rights:
Intellectual Property Protection
Improvement of IntellectualProperty ProtectionMechanisms:
The Company has fortified its intellectualproperty protection efforts, intensifyingpromotional endeavors and traininginitiatives, under the leadership of theRisk Audit Center and Legal Department.Collaboration with law ?rms and intellectualproperty agencies facilitates the expeditiousidentification of infringement cases andthe implementation of effective measuresto safeguard the Company's lawful rightsand interests. Establishment of a robustdispute resolution mechanism enablesprompt response to intellectual propertyinfringement incidents.
Case-by-Case Approachto IPR Applications:
Prior to lodging IPR applications,the Company collaborateswith external experts toconduct specialized searchesand analyses, ensuring theuniqueness and e?cacy of eachcase. This serves to precludeconflicts with others' IPRs,thereby fortifying the legality andvalidity of the Company's IPRs.
Execution of Con?dentialityAgreements:
Upon induction into the Company,employees are required to executeconfidentiality agreements, therebybolstering awareness of intellectualproperty protection. Documentencryption systems are used toguarantee the intellectual propertysecurity during electronic deviceutilization and file transmission. Inaddition, confidentiality awarenesspublicity and education is conductedto foster profound understandingamong employees regarding thesignificance of safeguarding tradesecrets, thereby instilling a robustculture of con?dentiality awareness.
Enhanced IntellectualProperty Training:
In light of the Company's realities,intellectual property law coursesare delivered regularly to educateemployees. These sessionsdelve into patent law, trademarklaw and other pertinent areas,fostering a heightened awarenessof intellectual property rightsand empowering individuals tonavigate legal tools to protect theCompany's interests.
Inclusion of IPRProtection Provisions:
Every contract incorporates IPRprotection provisions to protectboth the Company's and others'IPRs, thereby preventing anyinfringement on third-party IPRs.
Regular Monitoring byExternal IntellectualProperty Agencies:
To enhance monitoring of similartrademarks, external agenciesare entrusted with the ongoingmonitoring of activities such asbrand misuse and unauthorizedreplication. Upon the identificationof any infringements, swift andcomprehensive measures includingtrademark opposition, invalidationand administrative litigation aredeployed to steadfastly safeguard theintegrity of the PAK brand.
Intellectual Property TrainingIPR Protection Provisions
Regular Monitoring
Quality Risk ControlTo thoroughly identify and respond to the array of risks and opportunities inherent in the Company's production and managementactivities, the Company has drafted theRisk and Opportunity Management Procedures and the Procedures for Responses to Risks andOpportunities. These documents clearly outline the operational imperatives for risk avoidance, mitigation and acceptance.Concurrently, the Company conducts comprehensive evaluations and draftsTables of Risk and Opportunity Assessment Outcomesand Responsesfor risks of varying levels. These tables set out specific hazards, potential impacts, corresponding risk levels andappropriate measures, facilitating a precise comprehension of the risk pro?le, fostering e?ective mitigation and advancing resilientgrowth.
HazardDescriptionRisk LevelMitigation MeasuresInadequateEquipmentMaintenance
Select employees' environmentalfootprint, and deficiencies in themaintenance of waste collection anddisposal equipment and workshopventilation systems.
Low risk
Enhance on-site warning signage and enhancethe routine maintenance and oversight ofenvironmental protection facilities.
Product QualityRisk
During our production and operationalprocesses, inadequacies in our qualitymanagement systems, coupled withlax enforcement and oversight, canlead to product non-conformities orquality issues, prompting customercomplaints or non-compliance duringinspections by regulatory authorities.
Low risk
Improve our quality management system;Factor in considerations of product qualityand ease of production control during thedesign phase;Heighten inspection and testing e?orts acrossraw materials and production processes;Ensure swift and effective resolution ofcomplaints from customers and relevantregulatory bodies regarding product quality.ProductionProcess Risk
Suboptimal formulation ofproduction control standards duringmanufacturing processes can disruptproduction schedules or escalate costs.
Low risk
Tailor SOPs and parameter benchmarksto better align with our actual productionprocesses.ComplianceObligations
Non-adherence to complianceobligations may undermine theCompany's reputation or cause legalprocedures.
Low risk
Bolster our adherence to legal and regulatoryframeworks, and fulfill complianceobligations with heightened diligence,thereby fortifying our corporate reputation.
Product LiabilityQuality Management SystemThe assurance of high-quality products is paramount for the sustained growth ofany enterprise. During the production phase, we adopt a quality policy centeredaround "advocating scientific management, pursuing quality efficiency, creatingdistinguished brands, and ensuring customer satisfaction". We've established a robustquality management system and instituted frameworks such as theE-commerce ProductManagement Regulations, theSales, Supply and Delivery Management Procedures, and theManagement Procedures for Corrective and Preventive Actions. These frameworks facilitateproduct whole-process control, fortifying the defenses for both quality and safety.
Furthermore, the Company has established a Quality Center as the organizational body in charge of quality managementand management system enhancement. Led by the Quality Center Director, this organizational structure oversees the qualitymanagement system's operation, de?ning the quality responsibilities and management requirements for each department.This integration ensures that quality permeates all facets of the product lifecycle.
GB/T 19001-2016/ISO 9001:2015 Quality
Management System Certi?cate
Organizational of QC Center
QC Director
QualityAssurance Dept.
Quality Control Dept.（Lighting Base、Zhaoqing Base、
Chongqing Base）
Quality Engineering
Dept.
Supplier QualityControl Dept.
Systematics Dept.Product Certi?cationdivisionDocument ControlSection
IQC Administrative O?ceIPQC Administrative O?ceOQC Administrative O?ceTrial Product Dept.
AftermarketAnalysis Dept.DQE Veri?cationSection
External QualityDept.Materials Quality
Division
As of the end of the Reporting Period, the Company has obtained certi?cationfor its quality management system, compliant with the GB/T 19001-2016/IS09001:2015 standards.
Product Quality AssuranceThe Company implements a quality management framework covering the entirety of the product lifecycle, mandating fullparticipation, adherence and continual improvement of quality management processes across all product lines.Lifecycle Management
ReceiveMaterials
Quali?edManufacturer Details&SPEC& Inspection
Procedures &Drawings & Sample
Check
Supplement andComplete InformationNG
GB/T2B2-2012
SamplingOK
Inspect
Quali?edWarehousing
ProductionProduct
ContinueProduction
FinishedProduct
Up toStandard
Be Put inStorageSelf-checkand SubmitIPQOInspection
OQCInspection
Reject the MaterialHandling Process
NG
IncomingInspection
To ensure that all incomingmaterials undergo inspectionand that warehouse materialsare rechecked to complywith the Company's qualitystandards, the Companyhas formulated theIncomingInspection ManagementProceduresto uphold stringentmaterial inspection practices.
LifecycleQualityManagement
SpotCheck
Emergency
Survey
Follow-upTest
PASS
QualityExceptionHandling
NG
NG
NG
ReturnGoodsReworkConcessionRelease
QualityExceptionHandling
ReturnGoodsReworkConcessionRelease
In-ProcessInspectionTheIn-Process
Inspection ManagementProceduresset out criteria for identifyingquality deviations, ensuring consistentproduction processes and strictadherence to national, industry orcustomer-specific standards forproduct evaluation.In circumstances where products fallshort of quality specifications, theCompany initiates further steps inaccordance with theNon-ConformingProduct Control Procedures.
Finished Product InspectionBefore products leave the factory, they undergo inspections as outlined in theFinished Product Inspection Management Proceduresto ensure that only items thathave been inspected and found to meet quality standards are either stocked orshipped out.In strict compliance with pertinent laws and regulations, the Company hasestablished an SOP for managing product labeling, i.e. theProduct Labeling andTraceability Management Procedures, to ensure comprehensive traceability of alloutgoing products. This includes batch numbers, speci?cations, and records ofprocess inspections.
OK
NG
OK
PASS
OK
OK
ResultDetermination
Through the implementation of theEquipment Management Procedures, the Company strives to allocate manpower and costs inthe most efficient manner possible, ensuring the effective execution of maintenance plans. This guarantees that productionequipment maintains optimal performance and precision, reduces the occurrence of malfunctions, extends equipment lifespan,and ultimately enhances overall production capacity.
Maintenance of Production Equipment
To safeguard consumer rights and interests and ensure the safety of individuals and their properties, the Company has formulatedthePAK's Management Measures for Lighting Product Recallin compliance with theLaw of the People's Republic of China on Product Quality
and theLaw of the People's Republic of China on the Protection of Consumer Rights and Interests. In a bid to improve the professionalismand e?cacy of recall procedures, the Company has established a nationwide uni?ed repository of technical experts specialized inlighting product recalls, implementing dynamic oversight to ensure the cutting-edge nature and applicability of the technology.Moreover, we maintain close liaison and collaboration with governmental bodies to jointly advance the establishment andrefinement of cooperative mechanisms for lighting product recalls. To heighten public awareness and attentiveness towardslighting product recalls, we proactively launch publicity and training campaigns to disseminate knowledge on quality safety andrisk mitigation practices.Throughout the Reporting Period, the Company remained free of any product recalls or signi?cant product quality incidents.
Product Recall
Enhancing Quality Awareness
The Company attaches great importance to nurturing quality awareness among the staff, fostering a culture of relentlesspursuit of quality excellence, and continually fortifying the practical skills of quality personnel. The Quality Center has deviseda comprehensive training plan for 2023 to elevate employees' comprehension and pro?ciency in quality management througha curated series of courses and activities. This initiative aims to instill a company-wide commitment to quality and foster aculture of ongoing improvement. Furthermore, the Quality Center will conduct regular assessments of training e?ectiveness toensure alignment with the practical needs of employees, thereby establishing a robust foundation for the Company's pursuit ofexceptional quality management.
8D Analysis and Case StudyISO 19001 Quality Management System Knowledge Training
Failure Mode and Impact Analysis (FMEA)Problem Analysis and Resolution - 5WHY Analysis Method
Digital Transformation
The deployment of SRM system streamlines the Company's quality management procedures, facilitating data-informeddecision-making. By dynamically gathering and analyzing quality data, we can promptly identify potential issues and implementpreemptive measures so as to mitigate quality risks. The system empowers the improvement of quality management practices,thereby fortifying our trajectory of robust development.
SRM System
Elevating Customer ExperienceCustomer Service Management
To ensure paramount oversight of after-sales service proceedings and guarantee customer satisfaction, we adhere to the ethos of"prioritizing service and delivering heartfelt and attentive care to customers". We have formulated pertinent internal governanceframeworks such as theE-commerce Customer Service Conduct Management Standards, the Commercial Sales Center's Commitment toAer-sales Service, and the Aer-sales Service Management Proceduresto uphold warm, patient, and expert interactions with customers.We are committed to furnishing customers with exceptional after-sales service experience, thereby cultivating trust, loyalty, andfostering a sterling corporate reputation.During the Reporting Period, the Company garnered recognition anew as a Premier Supplier of State-owned Enterprises, rankingamong the top 3 in the lighting industry.
Top Ten Suppliersof State-OwnedEnterprises 2023
During the Reporting Period:
Customer Complaint ResponseIn order to ensure timely resolution of customer complaints and enhance overall satisfaction, the Company has instituted theCustomer Complaint Management Proceduresand theRegulations on Handling Aer-sales Quality Defects,setting out clear processes, rolesand responsibilities, and timeframe requirements. Upon receipt of customer complaints or reports of quality defects, responsibledepartments are promptly mobilized to initiate the requisite procedures, conducting comprehensive investigations into theunderlying causes of quality issues and swiftly implementing e?ective corrective actions to ensure thorough resolution.
Product yield100%
Additionally, the Company actively broadens its channels for after-sales service consultation, primarily through channels suchas the after-sales service hotline at 400-618-2219, dedicated after-sales service personnel stationed at offices, and hotline forescalating complaints, thus ensuring precise and expeditious communication with customers.
After-sales Complaint Resolution Handling Work?ow
Product Quality Assurance CommitmentThe Company is acutely aware of the pivotal role that product quality plays in consumer satisfaction. Therefore, it has devisedexplicit commitments regarding product quality assurance and claims, ensuring consumers enjoy comprehensive and meticulousprotection when purchasing PAK products. Tailoring to the unique characteristics and applications of each product, the Companyhas established rational warranty periods and pledges to provide free-of-charge repair or replacement services for any damages ormalfunctions attributable to product quality defects within the speci?ed warranty periods.Moreover, the Company has established and implemented a streamlined claims mechanism to swiftly address consumerconcerns, showcasing its unwavering con?dence in product quality and underscoring its profound sense of responsibility to bothconsumers and society.Customer Satisfaction Assessment
The Company conducts in-depth satisfaction evaluations among its customers and dealers, encompassing various facets such asproduct aesthetics, quality consistency, the attitude and expertise of service personnel, and the promptness of issue resolution.These e?orts are aimed at perpetually elevating product quality and customer satisfaction. Throughout the Reporting Period, theCompany achieved a customer satisfaction rating of 90.48%.
Customer Service TrainingPAK employs a multifaceted approach to persistently improve service quality, listen to the voices of our customers and elevatecustomer satisfaction. By organizing customer service training sessions and establishing customer service protocols, we endeavorto sharpen the customer service skills of our sta? and re?ne the customer experience.
New Employee Product TrainingOn November 6, in a bid to seamlessly integrate new hires into our corporate ethos and equip them with profound productinsights, the Company orchestrated an immersive product induction session. This session delved into the fundamentalsof lighting, household and functional product lines, and their compelling selling propositions. Leveraging multimediapresentations, real-world case studies and interactive segments, this initiative was designed to furnish new recruits witha holistic grasp of our product portfolio's core strengths. After the training, a closed-book assessment was conducted tomeasure the learning outcome, supplemented by solicited feedback to refine and optimize future training endeavors.Concurrently, a repository of ongoing learning resources and mentorship programs stands ready to shepherd new recruitsalong their career trajectories.
Decoding "Light"and "Lighting"As the illumination landscape garners heightened interest from the public, market expectations for industry practitionerssoar commensurately. From December 19 to 21, PAK convened a training symposium themed "Decoding ‘Light' and‘Lighting'", tailored to empower e-commerce specialists with a systematic understanding of lighting fundamentals. Thisinitiative is aimed at fortifying their professional proficiencies and building a robust knowledge framework among theparticipants.
InformationGathering
ComplaintGeneration
Investigation& Analysis
Resolutionand Response
Regular Assessments of CustomerSatisfaction
Complaint resolution rate100%
As of the end of the reporting period:
Supply Chain ManagementSupplier ManagementIn a heightened effort to standardize and formalize the supplier onboarding process, ensure alignment of supplier productsand services with our established quality standards, elevate the caliber of our supplier base and guarantee our product quality,we've drafted theSupplier Development Management Proceduresand theProcurement Management Procedures. These protocols serveto delineate supplier responsibilities and streamline procurement workflows, ensuring our partnering suppliers not only havethe capacity to meet our product demands but also continually deliver exceptional services and innovative solutions amidst anintensely competitive landscape.
Supplier Lifecycle ManagementPAK places paramount importance on supplier management, implementing a suite of management measures and procedures toensure supplier lifecycle management, encompassing onboarding, assessment, categorization, and exit.
Supplier Lifecycle Management of PAKSupplier Onboarding
Thorough on-site audits are conducted to vet supplier capacities and credentials, admittingonly those meeting stringent criteria as quali?ed vendors.Supplier Assessment
Purchasing staff conduct supplier assessments or audits guided by theSupplier On-SiteAssessment Form to identify optimal suppliers.Category-BasedSupplier Management
Category-based supplier management is performed to enhance supply chain efficiency,reduce costs, optimize resource allocation, and bolster quality standards.Supplier PerformanceAppraisal
Regularly appraisals are performed to gauge supplier performance across quality, delivery,cost and service, categorizing suppliers into four tiers (A, B, C, D) based on outcomes.Supplier Improvement
Suppliers receiving aCorrective Action Noticeare expected to promptly institute correctiveactions, with pertinent
improvement records disseminated and archived.Supplier Exit
Suppliers persistently rated as C or below over three successive evaluations withoutimprovement are demoted to D status and disquali?ed as our suppliers.Supplier Grievances
Instituting a platform for supplier grievances enables timely resolution of concerns pertainingto PAK's quality, technology, delivery and settlement issues. Assigned personnel addressthese issues expediently to uphold supplier relations.
Responsible Supply Chain Management
To comprehensively enhance the e?ciency of supplier management and achieve digital management throughout the supplierlifecycle from onboarding to exit, the Company has introduced the SRM-PROD system. This system seamlessly integrates variousmodules including supplier performance appraisal, order confirmation, pricing, allocation, delivery, contract management,quality control and tooling, striving for real-time information sharing and updates to ensure transparency and precision in theprocurement process. Concurrently, optimizing communication and collaboration between suppliers and the procurement teamsigni?cantly enhances procurement e?ciency.
Intelligent Procurement
SRM (supplier relationship management) System Login Interface
To advance the cultivation of a transparent and ethical supply chain, the Company has entered intoSupplier Integrity CommitmentLetterwith its suppliers, rigorously adhering to principles of anti-corruption and anti-bribery. Furthermore, procurement contractsexplicitly set out provisions against commercial bribery, ensuring both parties steadfastly uphold the principles of integritythroughout their collaboration. As of the Reporting Period, the percentage of suppliers executing theSupplier Integrity CommitmentLetter stood at 83.94%.
Ethical Procurement
Duly Signed Notices on Commercial Integrity and Ethical Cooperation
CooperatingSuppliers,all of themare domestic suppliers
with
local(Guangdong Province)Suppliers
Note: The suppliers mentioned above refer to the company's raw material suppliers and externalcollaborators/outsourcing suppliers.
To bolster suppliers' grasp of product quality management, the Company provides them with training in quality management,with the aim of fostering a deep appreciation for the importance of quality control and equipping them with practical techniques.Following the training sessions, suppliers o?er positive feedback and complete evaluation forms assessing the training outcome,which serve as valuable input for improvement.
Supplier Quality Enhancement
During the Reporting Period, the Company convened the Supplier Quality Management Summit 2023, reiterating the PAK's qualityobjectives and expectations, reviewing the quality performance of 2023, conducting a thorough analysis of prevailing issues,delineating subsequent prevention priorities, and extensively communicating quality standards to suppliers. This concerted e?ortseeks to drive continual enhancement, ensuring that product quality consistently aligns with the PAK's stringent standards.
Supplier Quality Management Summit
Supplier Quality Management Training
Dealer ManagementDealer Management System
he Company is dedicated to fostering a symbiotic relationship with its dealers, promoting collaboration and mutual supportamong them to jointly expand market reach, minimize internal ine?ciencies, and prevent unnecessary diversions of resources.In order to uphold a fair and regulated market environment, and safeguard the mutual interests of the Company and its dealers,we've formulated internal standards such as theDealer Management Policyand theMarket Order Management Policy. Employing astrategy of "rigorously penalizing instances of illicit parallel trade while implementing comprehensive measures to address otherinfringements", we remain steadfast in maintaining market integrity and securing the enduring growth of both the Company andits dealer network.Supplier management stands as a pivotal element in upholding market integrity and ensuring partner quality. During the supplieronboarding process, we adhere to stringent selection criteria to ensure the enlistment of reputable and financially robustsuppliers, thereby laying a robust groundwork for collaboration. In instances where suppliers contravene the Company's marketgovernance framework, we reserve the right to terminate collaboration, safeguarding the overall health and stability of thecooperative ecosystem.Dealer Communication and FeedbackThe establishment of a Market Order Management Committee, comprising representatives from the Audit and Risk Control Centeralongside dealer delegates, underscores the Company's commitment to addressing complaints pertaining to parallel trades. Thiscommittee will receive complaints via the designated email address (sczxwyh@PAK.com.cn) and judiciously adjudicate the natureand magnitude of parallel trade based on substantiated evidence, imposing penalties as warranted.
The Company periodically conducts surveys among dealers on matters concerning product attributes and quality to gain acomprehensive understanding of their holistic evaluations, pricing strategies, product demand dynamics, and quality concernsacross various dimensions. By assimilating and analyzing this invaluable data, we can better discern market demands, re?ne ourpricing strategies, enhance product quality standards, and thereby fortify collaborative ties with dealers, fostering mutual growth.
Process of the Market Order Management Committee
1、Submission
of evidence bythe dealer
2.Cooperation of the
parallel-trading dealer
in the investigation
3. Acceptance of
the case by the
committee
4. Pursuit of
reconciliation
5. Rendering of
judgment
6. Noti?cation
Archiving by the
committee
Non-infringement
Rejected
Failed
Resolved
Infringement
Dealer TrainingThe Company places a premium on fostering the growth and evolution of its dealer network. To this end, it o?ers a plethora oftraining initiatives tailored to each dealer's unique needs, thereby catalyzing a continuous enhancement in their business acumenand professional expertise.
Special Training on Azure Light ProductsOn March 18, the Company conducted animmersive training session exclusively dedicatedto CAF Lighting products for its dealers. Thetraining meticulously elucidated the coreattributes and competitive advantages of CAFLighting offerings, while also conducting athorough analysis of their market positioning andfuture growth prospects. Through the dynamicdiscourse led by seasoned instructors, enrichedwith illustrative demonstrations, the dealersgained a profound insight into the intricaciesof CAF Lighting offerings. This comprehensiveunderstanding lays a robust groundwork for thedealers' endeavors in future market penetrationand sales endeavors.
20232023
Intelligent Emergency Project Department's New Product PresentationIn October, the Company launched a grandunveiling event for the latest innovations from theIntelligent Emergency Project Department. Duringthis presentation, we showcased the avant-gardefeatures, technological prowess and expansiveutility of our intelligent emergency lightingsolutions. Harnessing engaging demonstrationsand professional explanation, we instilled inour dealers an intensive comprehension of thepivotal role played by these cutting-edge productsin fortifying lighting safety and emergencyresponsiveness. This enlightenment serves asa cornerstone for their proactive promotionand widespread adoption within the marketlandscape.
20232023
"Empowering Dealers with Online Product Training"SurveyTo ensure the e?cacy of our training initiatives,we conduct periodic surveys to solicit feedbackfrom our dealers. This collaborative endeavorenables us to re?ne our training curriculum anddelivery methodologies, thus aligning with theevolving needs of our dealers and propellingcollective business advancement.
20232023
Investment in dealer trainingCNY
441.8
thousand
During the Reporting Period:
Team Building:
Shaping WorkforceCohesion
劳动关系管理
员工培养
职业健康与安全生产
Labor RelationsManagement
EmployeeDevelopment
Occupational Healthand Safety Production
Labor Relations Management
Recruitment andEmploymentPAK rigorously adheres to pertinent laws and regulations, including theLabor Law of the People'sRepublic of China,theLabor Contract Law of the People's Republic of China,and the Employment PromotionLaw of the People's Republic of China. Tailoring policies to operational realities, the Company hasdevised theRecruitment and Selection Management Policyand thePersonnel Change Management System,alongside thePAK Employee Handbook. These measures are designed to comprehensively safeguardemployees’ legitimate rights and interests concerning remuneration, termination, promotion, workinghours, leave entitlements, diversity initiatives, equal opportunities, anti-discrimination efforts, andother welfare provisions. Such initiatives further foster the harmonious and stable development of theCompany's human resources.
PAK Employment Compliance SystemSlavery and
tra?ckingin personsare strictlyprohibited
It is imperative to monitor and enforce anti-human tra?cking policies. Veri?cation of identity and background checks are mandatory for all foreign labor hires.Departments are expected to communicate the anti-human tra?cking policy to employees in order to collectivelyadvance labor safety.RBA management representatives are responsible for regular review of the Company’s labor employmentpolicies to ensure alignment with applicable laws and regulations as well as client requirements.
No child labor
The Company operates in strict adherence to pertinent laws, regulations and international labor pacts, refrainingfrom engaging minors under the age of 16 in any capacity.In cases of inadvertent employment of child labor, designated personnel are responsible for safely repatriatingthem to their residences and handing them over to their parents or guardians. All associated transportation andaccommodation costs are solely borne by the Company.The Company shall the prohibition of child labor and remedial policies are effectively communicated toemployees and stakeholders.
No forcedlabor orbonded labor
Any department or individual found engaging in corporal punishment, physical abuse, body searches, verbalinsults, or restricting employees’ personal freedom by con?ning them within workplace premises or collectivedormitories is strictly prohibited. Employing coercive or deceptive tactics in recruitment is strictly prohibited.No department or individual within the Company shall solicit currency or valuables from incoming staff as“entrance deposits”, nor shall they seize or pledge employees' identity documents.Upon entry or exit, employees shall not be subjected to any form of deposit or training fees.
Nodiscrimination
Discriminatory practices are expressly forbidden. We ?rmly uphold the principle of gender equality and the concept of equal pay for equal work.Exceptional employees, irrespective of gender, rank or nationality, may be promoted to higher positionsfollowing successful evaluations.We respect employees' freedom of religious belief, neither coercing nor exhibiting bias based on employees’religious a?liations. Should employees make reasonable requests for religious accommodations, we must dulyoblige in accordance with statutory provisions and corporate protocols, thus ensuring the protection of customaryreligious practices.Under no circumstances shall employees be subjected to discriminatory medical examinations. Medicalexaminations, including pregnancy or contraception evaluations, shall not serve as prerequisites for employment,and requests for pregnancy or virginity tests shall be deemed unacceptable.
100%100%
The Company places a premium on talent acquisition, adhering steadfastly to the principle of“transparent hiring, equitable competition and meritocratic selection”. To this end, it embarks on
talent acquisition endeavors via two principal channels: campus recruitment and social recruitment.
As for campus recruitment, the Company’s branch-level HR administrators and the Human
Resources Center organize recruitment drives each spring and autumn, meticulously tailored to the
requirements of diverse positions. Simultaneously, they intermittently engage in nurturing university
student talent through initiatives such as establishing collaborative teaching and practical bases,
sponsoring competitions, and spearheading joint study activities. These e?orts are pivotal in fortifying
the Company’s reservoir of talent.
Diversi?ed Recruitment Channels
As for social recruitment, the Company forges partnerships with prominent domestic recruitment
platforms and esteemed headhunting agencies. Additionally, it disseminates recruitment
advertisements across mainstream media outlets and specialized publications, actively broadening
the horizons of its recruitment landscape. Furthermore, the Company extends an invitation to its
employees to explore internal job markets, thereby facilitating their pursuit of expansive career
trajectories.
Moreover, in a bid to harness the wealth of experience and wisdom possessed by its seasoned
personnel, the Company ventures into channels for the re-engagement of retirees. This gesture not
only underscores the Company’s appreciation for the professional acumen of its senior cohort
but also serves as a beacon of positivity to both its workforce and the broader community, thereby
effectively nurturing employee relations and fostering the steady evolution of the Company.
Throughout the Reporting Period, a total of 46 retirees got re-employed by the Company.
The College of Furniture and Art Design at Central South University of Forestry
and Technology led a delegation to PAK HQ for a study tour.
retirees gotre-employed
During theReportingPeriod
Persons
As of the Reporting Period
Percentage of contract workersSocial insurance coverage
················
At PAK, we celebrate the uniqueness of each employee, fostering an inclusive environment that values diversity. Discrimination inany form is strictly prohibited, and we welcome applications from all quali?ed individuals, regardless of ethnicity, residency status,gender, marital status, or religious beliefs. Our commitment is to provide all job seekers with an equitable chance to compete foremployment opportunities.
Embracing Diversity and Ensuring Equal Opportunities
Workforce Structure in 2023
The Company ensures strict compliance with laws and regulations such as theLaw on the Protection of Women's Rights andInterestsand theRegulations on Labor Protection of Female Workers.We are dedicated to eradicating gender discrimination fromour organizational culture and practices. When it comes to hiring and promoting female employees and leaders, we adhereto principles of fairness and impartiality, ensuring that every member of our team receives equitable treatment and respect.
Advocating for Women’s Rights
PAK is deeply committed to mitigating the unique challenges that female employees face in their professional lives dueto physiological factors. To this end, we’ve established theManagement Procedures for the Protection of Female Workers(including Pregnant Women),which prohibits assigning tasks exceeding prescribed labor intensities or engaging in any labordeemed inappropriate for pregnant or nursing employees. Furthermore, we ensure that pregnant employees and those inthe breastfeeding stage have access to prenatal check-up leave, maternity leave, and breastfeeding breaks, among otherbene?ts.
International Women’s DayCelebrations
2,025 PersonsFemale
47%1,805 PersonsMale
52.87%
47.13%
883 Persons
1,236 Persons
Below 30 years old
Aged 40-50
23.05%
1,537 PersonsAged 30-40
40.13%
32.27%
171 PersonsAged 50-60
4.46%
3 PersonsAged 60 and above
By GenderBy Age Group
62PersonsSeniormanagement level
1.62%
2,762 PersonsGrassrootsemployees
72.11%
783 PersonsMiddlemanagement level
20.44%
Finance
912 PersonsSales
23.81%
392 PersonsAdministration &Others
10.23%
452 PersonsTechnology
11.80%
53 Persons
1.38%
565 PersonsBachelor’s Degree
14.75%
2,212 Persons
Below Associate’s degree
57.75%
1,042 Persons
Associate Degree
27.21%
11 PersonsMaster’s Degree
0.08%
219 PersonsJuniormanagement level
5.72%
4 Persons
Operationaldecision-makinglevel
0.10%
2,021 PersonsProduction
52.77%
0.29%
During the Reporting PeriodAs of the Reporting Period
As of the Reporting Period
During the Reporting Period
Employeeswith Disabilities
Employees fromEthnic MinoritiesPersonsPersons
By Rank
By Education
By Profession
employees are currently on maternity leave, with a
100%
return-to-work rate.
Welcomed aboard
new female individuals.
The company employs a total of
3,830
sta? members.
employees are currently on childcare leave, with a
100%
return-to-work rate.
Women represent
25%
of our workforce in science,technology, engineering, and mathematics (STEM) professions.Women hold
1.73%
of managerial positions withinour revenue-generating departments.
Compensationand Bene?ts
PAK ensures its employees receive fair and competitive compensation and benefits. To this end,we’ve prepared theGuangdong PAK Corporation’s Compensation Management Policyand theGuangdongPAK Corporation’s Performance Appraisal Management Policy.These policies seamlessly blend the“construction of the compensation framework” with the “PAK’s development strategy” allowing
compensation management to play a pivotal role in achieving our corporate goals.
Compensation Structure
PAK has implemented a performance appraisal system that covers all employees across ourproduction bases. Through objective assessments of employees’ work performance, attitudes andcapabilities, we assist them in enhancing their professional standards. Furthermore, we conductperformance appraisals for all staff as directed by the performance appraisal management policy.The outcomes of these annual performance appraisals serve as crucial benchmarks for employeesparticipating in internal job competitions, seeking promotions, considering job transfers, earningrecognition as outstanding employees, engaging in talent development, and adjusting compensation.
To foster better communication between management levels and enhance collaboration amongdepartments, the Company prioritizes open dialogue between employees and their supervisors.This approach is seamlessly integrated into every stage of our performance evaluation process.Through face-to-face discussions, we provide employees with feedback on their performanceappraisal results and the reasons behind our assessments. Together, we analyze any areas whereperformance may fall short and devise strategies for improvement and growth.Should employees have any queries or doubts regarding their appraisal results, they are entitledto lodge a written appeal with the Compensation and Performance Department regarding theirperformance evaluation for the current cycle, specifying reasons for objection. This appealmechanism o?ers employees a platform to voice their opinions and raise concerns, ensuring thatthe appraisal process remains fair and accurate, while also encouraging ongoing re?nement andenhancement of our evaluation system.
Type of PerformanceIndicator
Dimension AssessedData Source
Strategicperformance
Company sales revenue
Finance CenterMarketing DepartmentCompany gross pro?t marginCompany net pro?t margin
Organizational
performance
Decomposition of departmentalindicators/responsibilities
Data-related departments
Work plan indicatorsPersonal performancecommitment projectsWork attitude, cooperation andlevel of execution
Basemonthly pay
Overtime
pay
Quarterlyperformancebonuses
Annualperformancebonuses
ExtraincentivesAllowancesSubsidies
Compensation Structure at PAK
At PAK, we’re dedicated to providing top-notch, competitive bene?ts for our employees. Beyond the mandatory social insurancesand housing fund, we’ve got commercial coverage for those in special roles. Moreover, we offer holiday gifts, bonuses, mealallowances, free lodging, shuttles, birthday treats, etc. It’s all part of our mission to ensure our team has the best possible work-lifebalance.
Employee Bene?ts
EmployeeBene?tStructure at
PAK
Extra bene?tsEmployee care
package
Essentials
Commercial insurancefor special occupationsChildbirth allowanceSports events
Team adventures
Festive giftsFestivitiesWorking lunch at thecompany canteenCommuter busesLodgingBirthday gatherings
and gifts
Social insurances and
housing fundStatutory holidaysPaid annual leave/work-
related injury leave
Lantern Festival Activities
Company Anniversary Sports Day
Birthday Party
Qingyuan Expansion Activity
DemocraticGovernance
To better cater to our employees and accurately address their speci?c needs in both work and life,the Company routinely conducts satisfaction surveys targeted at the administrative managementdepartment. We compile anAnnual Report on Administrative Work Satisfaction, analyzing employeesatisfaction across di?erent levels and departments regarding dining, accommodation, cleanliness,front desk services, environmental facilities, security, and transportation. Subsequently, we implementtargeted improvements based on these ?ndings.
Employee Satisfaction Survey
PAK is committed to cultivating an environment of open and democratic communication, fostering stronger interaction betweenthe Company and its employees. We provide a variety of communication channels, including employee forums, WeChat groups,o?ine communication gatherings, and internal publications. These platforms cover a range of topics, including but not limited toenhancing production processes, adjusting employee bene?ts, and revising attendance policies.
Employee Communication
PAK has put in place protocols such as theLabor Unions ManagementProcedures, Management Procedures for Freedom to Join Labor Unions,andFreedom of Association and Collective Bargaining Management Proceduresto bolster democratic governance. Leveraging avenues such as laborunions, forums and transparent factory meetings, we endeavor touphold the legal rights and interests of our workforce.DemocraticManagementSystem
The Company has established and implemented thePAK Labor Dispute Mediation Systemin an e?ort to safeguard the lawful rights andinterests of both the Company and its employees and to foster a harmonious and stable work environment. This system aims toaddress disputes through non-litigious means, thus preventing their escalation and minimizing the legal burden on employees.By establishing an enterprise-level labor dispute mediation committee, we enhance our ability to proactively prevent and resolvecon?icts, leading to mutually bene?cial and harmonious labor relations.
Labor Dispute Resolution
Employee Symposium
CEO's Mailbox
O?ine Communication Meeting
Company Internal Magazine Three Heroes' New Perspectives
In safeguarding the rightful interests of our employees, we’veestablished a labor union at PAK as a conduit for employeerepresentation. Elected by their peers, union members serve as liaisonsbetween sta? and management, advocating for employee rights andregularly conveying sta? feedback and needs to leadership.
We respect our employees’ autonomy, protecting their freedom toassociate, join unions, participate in collective bargaining, and engagein peaceful assemblies in accordance with the law, while also upholdingthe independence of labor unions.
If employees have any dissatisfaction or suggestions regarding thecompany's management or other aspects, they can directly raise themto their department leaders or the human resources department.Alternatively, they can choose to submit their suggestions in writtenform to the suggestion box. The company will promptly address anddeal with all types of complaints raised by employees, widely adopt theiropinions, listen to their voices, and promptly resolve their di?culties andconcerns.
Representation for
Employees
Freedom ofAssociation
Channels for
EmployeeComplaints
PAK places a premium on employee development. To ensure that our training e?orts are systematic,ongoing and e?ective, we’ve laid the foundation with the “PAK Training Center”. Additionally, we’veformulated theTraining Management PolicyandInternal Trainer Management Policyto provide a robustframework for employee growth. Tailored to the diverse needs of di?erent roles and ranks, our traininginitiatives encompass onboarding, manager training, specialized skill enhancement, and the nurturingof internal trainers.To ensure that our training e?orts attain the desired e?ects, we conduct a diverse array of assessmentsand gather feedback on each training session. We look at everything from how employees rate theprograms to what they've gained from them, how they've applied their newfound skills, and whethertheir performance has improved as a result. This holistic approach helps us fine-tune our trainingsystem, making it more robust and comprehensive. Plus, it gives employees insights into areas wherethey can grow, empowering them to reach their full potential while driving the Company forward.
We’ve built a top-notch team of instructors to provide expert knowledge explanations and teaching, enrich course content andcultivate a positive atmosphere for internal sharing, communication and learning. These instructors, both internal and external, areselected, trained and evaluated by our dedicated Training Management Department. They cover a wide range of topics, rangingfrom leadership and generic managerial skills to post-speci?c skills, technical know-how and general professionalism.
Instructor Team
PAK is constantly enhancing its hybrid training system, blending online ando?ine approaches to empower individual development within the Company. Byharnessing the synergy between the “Brilliant Star Platform” online learning huband o?ine talent development initiatives, we’re empowering our team membersfrom both ends.
Online Learning Hub
Training System
SAP-HR System Online-Study
TypeProgram
CadreTraining
Professional
Training
New EmployeeTraining
Executive-level Management Cadre Development ProgramManager-level Management Cadre Development ProgramDirector-level Management Cadre Development ProgramTeam Leader Management Cadre Development Program
Pilot ProgramVoyage ProgramSailing ProgramGreen Ivy ProgramDi?erent operational skills training for di?erent professional groups
General Competency and Quality Training CoursesEach department conducts targeted job training for new employees.
R&DSales
SupplyChain
ProductQualityHRFinanceProduction
Operational Skills
Training
For Social RecruitmentFor Management TraineeInternship Development
New Employee ForumHello, New Radiance
PAK Employee Development System
Employee Development
EmployeeTraining
PAK “Brilliant Star Platform”
During the Reporting Period
During the Reporting Period
During the Reporting Period
Throughout the Reporting Period, the Company expanded its o?erings on the “Brilliant Star Platform”,adding six categories of training courses totaling
4,292
sessions. A total of
1,073
employees engaged in online training, accumulating
107,171
hours of active learning.
During the Reporting Period, we’ve brought on board
internal instructors, developed
internal training courses.
During the reporting period, the Training Department has conducted
employees’training sessions, with a total duration of
hours and a total participation of
10,813
person-times.
To bolster our pool of skilled talent and re?ne our assessment framework for skilled personnel, PAK’s Zhaoqing Production Baseinitiated vocational skill level assessments for two key job categories: high and low-voltage electrical appliance assembly workersand stamping professionals. These assessments aim to provide a thorough, impartial evaluation of employees' vocational prowess.Professional Skills Training
Vocational Skill Level Assessment at PAK
ProgramTraineeCourse Duration (hour)PAK Sales Elite Training Camp 202310648Sales Elite Training Camp (Session 2)5372Marketing System Manager Capability EnhancementTraining (Session 1s)
5446“Spot Plan” Course (Session 1)13012“Spot Plan” Course (Session 2): URA (user requirements analysis)
12912“Spot Plan” Course (Session 3): Marketingand Operations
11112O?ine Instruction for “Spot Plan” Product ManagerTraining
LED Driver Basics Lecturing381.5ISO50001 Energy Management System Knowledge Training433Supplier Quality Management Training312Spark Plan - National Store Manager Training2676Plastic Raw Materials and Testing Training1222Plastic Mold Design Fundamentals Training302General-purpose Plastic Properties Lecturing372Transformer Precision Design Training302
Key Training Initiatives in 2023
Spark Plan - National Store Manager Training
O?ine Instruction for “Spot Plan” Product
Manager Training
Marketing System Manager Capability Enhancement
Training (Session 1s)
General-purpose Plastic Properties Lecturing
Employee Development Path at PAK
We’ve introduced internal job competitions to meet the Company’sevolving business needs, tap into the potential of our internal talent,optimize hum resources allocation, and encourage employees topursue continuous self-improvement. This move aims to provide ouremployees with a platform to showcase their talents and create moreopportunities for career advancement. All current employees areeligible to compete openly for vacant positions.
OccupationalHealthand SafetyManagementSystem
GB/T 45001-2020/IS045001:2018Occupational Healthand Safety Management System
Certi?cate
Occupational Health and Safety Production
Safety Production and Occupational Health Management Policy
Safety production policy: Safety ?rst, prioritizing Prevention, and holistic controlOccupational disease prevention and control policy: Prioritizing prevention,and integrating prevention with treatment.
To further clarify safety production responsibilities, strengthen safety management, and comprehensively ensure thesafety of employees’ lives and property, the Zhaoqing Production Base has planned to establish a Safety ProductionManagement Committee. Additionally, a Safety Office will be set up under it to enhance organizational leadership andoversee daily safety management. Simultaneously, the Chongqing Production Base has also formed a Safety ProductionWork Committee to drive the thorough implementation of safety measures and ensure their e?ectiveness.
The Company places a high priority on the occupationalhealth and safety of its employees, strictly adhering tolawssuch as the Law of the People’s Republic of China on Preventionand Control of Occupational Diseases.It has established a robustsystem for occupational health, ensuring compliance withoccupational disease prevention and control responsibilitiesto e?ectively safeguard employee well-being. At the ZhaoqingProduction Base, multiple internal management protocols,including theSafety Production and Occupational HealthManagement Policy,have been implemented to standardizesafety practices and enhance inherent safety levels.Concurrently, the Chongqing Production Base has introducedregulations like theSafety Production Target ManagementPolicyand theSafety Production Accident Management Policyto delineate responsibilities across all levels of personnel,boost employee awareness of safety practices, and institute arigorous safety assessment mechanism. Regular evaluationsare conducted to reinforce safety consciousness and maintainseamless production operations.
ChongqingProduction Base
ZhaoqingProduction Base
Putting people ?rst, with safety as the top priority;Prioritizing prevention for continuous improvement;Putting safety ?st for harmonious development.
During the Reporting period, PAK achieved ISO 45001 certi?cation for its occupational healthand safety management system.
Position TypeManagement Track (M)Technical Track (T)Professional Track (P)
OperationalTrack (O)
Decision-makingLevel
M14CEO
/
/
/
M13VP
SeniorManagementLevel
M12
Board SecretaryGMM11Deputy GMT11Chief EngineerM10Senior DirectorT10Senior ExpertM9
DirectorO?ce Manager of CEO
T9ExpertP9Senior Chief SpecialistM8Associate DirectorT8Senior EngineerP8
Senior Chief Specialist/
Senior Accountant
MiddleManagement
Level
M7
Manager/Deputy
Manager
T7
High-levelEngineer
P7
Securities A?airs Representative/ Chief Specialist/Senior Accountant/
Senior HRBP
M6DirectorT6EngineerP6
Vice President Assistant/Vice PresidentSecretary/General Manager Assistant/
Deputy General Manager Assistant/High-level Senior Specialist/Intermediate Legal Advisor/Intermediate Accountant/Logistics Support Specialist/High-level HRBP
O6SeniorTechnician
M5Deputy DirectorT5
AssistantEngineer
P5
Senior Specialist/Senior Accountant
Senior Legal Advisor/HRBP
O5High-levelTechnicianJuniorManagementLevel
M4Team Leader/GroupLeader
T4TechnicianP4High-level Specialist/Senior Accountant/
Senior Legal Advisor
O4Technician
Execution Level//
P3Specialist/Accountant/Legal AdvisorO3
SeniorCraftsman
P2Clerk/ AssistantO2Craftsman/O1
General
Worker
EmployeeGrowth andPromotion
Employees are the lifeblood of our company’s future growth. To help them chart their career paths,PAK has mapped out four promotion routes - Managerial, Technical, Functional and Operational- for staff across our HQ, marketing/business units, and production/quality divisions. They caneither deepen their expertise along a single route or pivot to di?erent roles based on their skills andstrengths. To keep our career paths running smoothly, we’re constantly fine-tuning our careerdevelopment planning system year after year.
During the Reporting Period
Employees SuccessfullyParticipated in Internal JobCompetitions or Transfers.
Persons
Organizational of the Safety Production Committee
at the Chongqing Production Base
There were
industrial injury accidents at the Zhaoqing base, a decrease of
compared to 9 in 2022,representing a reduction of
66.7%
.
SafetyProduction RiskManagement
The Company conducts a thorough analysis of potential hazards in the workplace and duringpersonnel activities. By implementing the Hazard Identification andRisk Assessment Control Procedures,we ensure the safety and well-being of our employees and stakeholders, mitigating any potentialharm or health risks.
Risk Identi?cation and Response
We draft annual safety production responsibility statements and ensure that all sta? members sign them, clearly outlining thesafety obligations of every level of management, department, technical team, and operational sta?. This meticulous approachensures that accountability for safety production is ingrained in every employee, at every level, and in every aspect of ouroperations.Through rigorous safety inspections and proactive hazard identi?cation, we swiftly address any issues, enhancing our ability toprevent accidents and maintain a safe working environment.
Investigation of hidden dangers
Safety Production Committee
O?ce of the Safety Production Committee (Safety
and Environmental Protection Dep.)
Director of SafetyProduction CommitteeVice Director of SafetyProduction Committee
Chairman ofthe Labor Union
To ramp up our readiness for safety incidents and e?ectively tackle unforeseen emergencies, we’ve tailored emergency drill plansto ?t our realities. These plans are geared toward executing rescue operations swiftly, e?ciently, and in an organized manner, withthe goal of curbing the potential fallout from accidents.Emergency Plans and Drills
Emergency Response TrainingIn June 2023, the Company orchestrated a ?re extinguishing emergency drill with an aim to embed ?re emergency know-how deep within the ranks, fostering a culture of “Workplace Risk: I See, I Know, I Control”. The drill honed in on masteringthe choreography of emergency ?re?ghting and rescue at the scene of a ?re, teaching participants the ropes of wielding ?reextinguishers and navigating escape routes.
Fire Evacuation and Emergency Drill
In July, the Chongqing Production Base kicked off drillsto bolster the oversight and management of liquidammonia. Following our emergency simulation, thedrill simulated scenarios like ammonia leaks, puttingemergency response, personnel evacuation, and crisismanagement procedures to the test. The aim is to beef upthe sta?'s ability to handle ammonia-related emergenciesand heighten safety awareness, ensuring they’re primedto take swift, decisive action in real-world scenarios tosafeguard both personnel and the environment.
Special Training on Ammonia Leakage
During the Reporting Period
During the Reporting Period
At the Zhaoqing Production Base, we identi?ed
irregularities during safety inspections, promptlyrectifying
of them, achieving an impressive on-time recti?cation rate of
100%
.
Similarly, the Chongqing Production Base conducted
comprehensive hazard investigations,uncovering
potential risks, and achieved a perfect on-time recti?cation rate of
100%
.
The Nansha Production Base organized
safety inspections and discovered
potential safetyhazards. The recti?cation rate for these hazards is also
100%
as scheduled.
When procuring hazardous chemicals, the Planning Department must source them from suppliers holdingcorresponding operating or production licenses.Suppliers are required to furnish the Planning Department with Material Safety Data Sheets (MSDS) andsafety labels that match the hazardous chemical’s item name.Each production department should submit a monthly plan based on the projected demand and storagecapacity.
SafetyManagement
To diligently uphold the principle of “Safety First, Prioritizing Prevention, and Holistic Control” inproduction safety, the Chongqing Production Base has devised theStakeholder Safety ManagementPolicy. This Policy aims to enforce the safety production responsibility of personnel at all levels,enhance safety oversight of external individuals like contractors and visitors, and rigorouslyimplement the Company’s safety incentive and penalty scheme to ensure a safe workingenvironment. Meanwhile, the Zhaoqing Production Base, through itsStakeholder Management Policy,delineates clear management roles for all involved parties. The aim is to cultivate a secure, healthyenvironment, mitigating safety risks associated with external collaborative projects to ensureseamless company operations.
Stakeholder Safety Management
To safeguard the management of hazardous chemicals at the Chongqing Production Base, the Company has drafted protocolssuch as theHazardous Chemical Management Policyto bolster oversight. This ensures that the storage and utilization of hazardouschemicals adhere to relevant regulations and standards. Stringent monitoring and management protocols are in place for theprocurement, storage, and handling of hazardous chemicals.
Hazardous Chemical Safety Control
In order to keep our safety production e?orts running smoothly, the Company has drawn up a comprehensive training plan for theyear 2023. Simultaneously, all our production bases have been actively involved, tailoring a range of engaging safety productiontraining activities to suit their specific circumstances. These sessions cover essential knowledge about the updatedLaw of thePeople’s Republic of China
on Safety Production,theEnvironmental Protection Law of the People's Republic of China,and other pertinenttopics such as safety, ?re prevention, drug awareness, and hazard identi?cation through images. The aim is to ensure that everystaff member not only grasps but also internalizes the fundamental principles and practical know-how of safety production,thereby boosting their safety consciousness e?ectively. This lays a robust theoretical groundwork for further implementing oursafety production responsibilities and proactively preventing and managing safety incidents.
Safety Education and Training
Anti-drug Campaigns in Lanhe Town
Fire Safety and Workplace Hygiene Training in
Zhaoqing Production Base
Safety Training for Photovoltaic Installation Projects
in Block C of our Nansha Production Base
Occupational Disease Prevention and TreatmentTraining in Chongqing Production Base
Procurement
Hazardous chemicals should be stored separately based on their characteristics, ensuring on-sitefacilities and conditions like electricity, fire protection, ventilation and temperature meet safetystandards.Storage or usage areas must be equipped with necessary emergency response facilities, supplies, andmaterials.The management of precursor chemicals follows a “Five Pairs” approach and strictly adheres toestablished approval procedures.Hazardous chemical warehouses must prominently display MSDS, detailing the item name, hazardousproperties, and emergency handling procedures.Managers of precursor chemical warehouses require approval from the competent department of publicsecurity.
?
?????
??
??
??
During the Reporting Period
36.3216
0%100%
Storage
Usage
Disposal
Personnel handling hazardous substances must be well-versed in their technical specifications andsafety labels, understanding their hazardous properties, storage requirements, protective measures, andemergency protocols.Strict adherence to safety protocols during usage is mandatory, including the use of prescribedprotective gear.
Used packaging for hazardous chemicals (including precursor chemicals) must undergo stringentmanagement, with strict guidelines for collection and a prohibition on indiscriminate disposal.Recyclable packaging materials are to be reclaimed by the Planning Department from suppliers, whilenon-recyclable items are temporarily stored by the using department. Quali?ed units approved by theDepartment of Safety and Environmental Protection are then enlisted for disposal.
Production Accident Countfor The Year
Occupational DiseaseIncidence RateWork-related Fatalitiesfor The Year
Safety Hazard Recti?cationRate
Work-Related Injuriesfor The YearTimesPersons
Person
tenthousandCNYTotal safety investment
OccupationalHealth Protection
To ensure the well-being of our employees, the Company teams up with third-party agencies toregularly assess potential occupational disease risks at in our workplaces. Swift action is taken toaddress any identi?ed hazards, and specialized medical check-ups are o?ered to those exposed tosuch risks.
Occupational Disease Hazard Monitoring
In order to look out for our employees in roles where occupational hazards are a concern, we makeit crystal clear what occupational disease risks they may face right from the get-go. We make sureto prominently display warning signs for occupational disease hazards in relevant areas and keepeveryone updated on the results of our hazard checks. Moreover, we hold regular sessions to educateour sta? on occupational health, boosting their awareness and helping them stay on top of potentialrisks. Moreover, we supply our employees with standard personal protective equipment (PPE) againstoccupational diseases and make sure they know how to use it correctly, with an aim to protect theirhealth and safety.
Protective Measures
Occupational HealthBulletin Board
Occupational DiseaseHazard Warning Signs
Devoted to CommunityWelfare and SpreadingSocial Warmth
Sticking to the philosophy of “growing alongside ourlocal community”，we're actively involved in socialwelfare initiatives, knitting together our corporatejourney with the broader societal progress, all aimed atnurturing a flourishing society and enhancing qualityof life. In 2023, we were recognized as a DevotedSupporter of Community Welfare. It's not just a badgeof honor; it's a beacon guiding us to amplify our societalcontributions.
“光怀”社会责任
“光爱”乡村振兴
Devoted Supporter of Community
Welfare 2023
“光心”照明健康
Lighting up SocialResponsibility
Lighting up RuralRevitalization
Lighting up HealthBooster
Lighting up Social Responsibility
When heavy rainfallwreaked havoc inChongqing in July2023, we sprang intoaction. Our ChongqingProduction Base didn'tjust sit back; we donated300 LED table lampsto the Changling TownPeople’s Governmentand the Wuchiao Sub-district O?ce. We lit upthe darkness, bringingwarmth and hope tothose a?ected by thecalamity.
In the same month, we teamed up with the China Furniture& Decoration Chamber of Commerce (CFDCC) to launch aseries of events themed “China Selected Household ProductsLaunch”. During our very own “PAK Design with Light - HomeDecoration Elite Grassland Hiking Public Welfare” event, wepledged to donate RMB 10 to the Red Cross Society of DuolunCounty for every kilometer walked by participants. The goal isto purchase eye-protective table lamps for local Hope Schools,ensuring students’ eyesight stays crystal clear.
PAK Design with Light - Home Decoration Elite Grassland Hiking Public
Welfare” Event
Table Lamp Donation
Consoling to Fire?ghters
In honor of the 2023 Army Day, PAK's Chongqing Production Base paidheartfelt tribute to the Wanzhou District Fire Emergency Rescue Detachment,acknowledging the courageous ?re?ghters who consistently brave the frontlinesin the face of adversity, thus making monumental contributions to societaltranquility and stability.
Lighting up Rural Revitalization
CaringDonation
Harness the collective force of care to propel rural revitalization forward. The Company was activelyengaged in the 2023 "6.30" Rural Revitalization Assistance Event and the Guangzhou Nansha District's“Charity for the People” Campaign. We extended a helping hand by donating RMB 20,000 to the ruralrevitalization initiative in Lanhe Town, demonstrating our unwavering support for and investment inrural progress.EmpoweringRuralEducation
In our commitment to fostering equitable educational development and aiding in rural povertyalleviation, PAK proactively leveraged its expertise in educational lighting. We boldly embraced oursocial responsibility by spearheading the “Light of Dream: Rural Classroom Illumination CharitableRevamp” Program. Our aim is to provide underprivileged rural children and teens with a nurturing,well-lit learning environment, thereby nurturing their holistic growth journey.Throughout the Reporting Period, our ongoing initiative, “Light of Dream: Rural ClassroomIllumination Charitable Revamp”, continues to gain momentum. We made visits to schools suchas Tiechang Primary School in Bozhou District, Tengyun 7th Hope Primary School in Jiehe Town,Huanggang Town's Jiwu City Primary School, and Ningling Zhangqiao Primary School. We donatedlighting ?xtures to enhance the schools’ luminous ambience, thus contributing substantially to thefoundational development of rural education.
As far back as 2005, PAK blazed a trail by championing the notion of “light health” within the industry. Our mission is to advocatefor lighting practices that promote not just brightness, but holistic well-being. We’ve been on a relentless quest to craft lightingenvironments that foster harmony and health, continually re?ning our products' performance. To put our beliefs into action, we'veembarked on a nationwide tour of “light health” clinics, offering free makeovers to homes and businesses falling short of ourstandards.Our commitment to illuminating healthy spaces extends particularly to educational institutions. Through tireless innovation andthe creation of top-notch, school-speci?c lighting ?xtures, we've transformed over a hundred campuses across the nation. Our goalis to set the stage for optimal learning environments, lighting the way for generations of students.
Library at Shenzhen UniversityClassroom at Hangzhou Normal University
Lighting up Health Booster
“Light of Dream: Rural Classroom IlluminationCharitable Revamp” Program
Smart Strategies:
Illuminating the PathAhead
In 2023, seizing the tide of economic resurgence, we dovedeep into internal revitalization efforts, fortifying managementstructures and empowering our workforce throughcomprehensive training initiatives. We're not just investing insmart lighting solutions; we're betting big on brilliance. Our aimis to revolutionize illumination with energy-e?cient technologywhile simultaneously revolutionizing our distribution channelsunder the "1+N" model. It's about more than just lighting uprooms; it's about lighting up futures. Through the joint effortsof everyone in the Company, we've seen a consistent uptickin our business performance and a steady rise in our marketshare domestically. We've also made solid strides in areas of
sustainable development such as corporate governance, environmental conservation, and social responsibility.Looking ahead to 2024, we’re steering our ship according to our strategic objectives, holding fast to theprinciples of sound business practices and ethical conduct. We're digging deeper into internal managementreforms, keeping a keen eye on product quality, and delivering top-notch products and services to ourcustomers to enhance their quality of life. We're not just lighting up rooms; we're illuminating futures—a missionthat's ingrained in our corporate DNA. In line with this mission, we're ramping up e?orts in developing energy-e?cient and smart products, championing smart lighting solutions to contribute to society's goals of energyconservation and emission reduction. Furthermore, we're fine-tuning our corporate governance, striving forimproved operational performance to ensure our shareholders receive their due rewards. Moreover, we'resetting up and refining our ESG governance framework, continuing to prioritize sustainable developmentinitiatives, and ramping up investments in relevant areas. Actively engaging in social welfare activities andful?lling our corporate social responsibilities are also high on our agenda as we aim to play our part in fosteringa more harmonious and prosperous society.
Economic Performance
IndicatorUnit2023Operating IncomeNet Pro?t Attributable to Shareholders of the Listed CompanyTotal AssetsNet Equity of ShareholdersTotal Taxes Paid(Excluding Individual Income Tax)
General Meeting of Shareholders ConvenedExtraordinary General Meetings of ShareholdersAnnual General Meeting of ShareholdersReviewed ProposalsMembers of the Board of DirectorsIndependent DirectorsFemale DirectorMeetings of the Board of Directors ConvenedReviewed ProposalsThe Independent Director MeetingThe Strategy CommitteeMeetingThe Audit Committee MeetingThe Remuneration and Assessment Committee MeetingMeetings of the Board of Supervisors ConvenedReviewed ProposalsInternal AuditsSpecial AuditFinancial AuditOther Auxiliary AuditTraining on legal-related knowledgeCash dividend for 2022 (with tax)
Governance Performance
CNY millionCNY millionCNY millionCNY millionCNY million
timestimestimesitemspersonspersonspersonstimesitemstimestimestimestimestimesitemsitemsitemsitemsitemstimesCNY/share
0.6
Performance Appraisal
IndicatorUnit2023
Governance Performance
CNY million%piecespiecestimestimestimes
%timesCNY thousand
times
%timestimestimestimestimes
167.5986
224.5
Periodic Report DisclosureAd hoc Announcements DisclosureHoliding Performance Brie?ngs and Investor DaysReceived Institutional Research Visits.Online Interactions at Interaction Easy(Shenzhen Stock Exchange)
Major Violation of Business EthicsInvestment in Information securityInformation Security Training SessionsEmpolyee Coverage of Information Security Training SessionsInformation Security Related IncidentsGeneral Meetings of Party MembersLectures on Party TheoryThemed Party ActivityParty Members’ volunteer activities,
Environmental performance
CNY million%%%times
1.1711
Environmental InputCompliance Rate of Pollutant MonitoringSynchronous Operation Rate of Environmental Protection FacilitiesImplementation Rate of "Three Simultaneous" EnvironmentalProtection Measures for Construction Projects
Environmental Management
2,351.8234
204.8793
3,388.63972,201.3333
156.1154
The proportion of net profit attributable to shareholders of the listedcompany in the consolidated ?nancial statements for 2022
Signature Rare of the Integrity Commitment in crucial positionsIntegrity Commitment
Total cash distributed for 2022 (with tax)IndicatorUnit2023
tceten thousand m?
tt
kWht
Comprehensive Energy ConsumptionNatural Gas ConsumptionGasoline ConsumptionDiesel Fuel ConsumptionPurchased Electricity ConsumptionWater Consumption
Resource Management
tCO
etCO
etCO
eGHG Emission (Scope 1 and Scope 2)GHG Emission (Scope 1)GHG Emission(Scope 2)
GHG emission management
times
ttt%t%
Detection of Wastewater and Exhaust Gas EmissionsWastewater Discharge Volume (Chongqing PAK)Exhaust Gas Emission Volume(Chongqing PAK)General Industrial Solid Waste Disposal VolumeCompliance Rate of General Industrial Solid Waste DisposalHazardous Waste Generation VolumeCompliance Rate of Generated Hazardous Waste Disposal
Management of Waste
CNY million%personspersons
itemsitemsitemsitemsitemsitems
Investment in R&DProportion of R&D Expenditure to Operating RevenueTotal Number of R&D Team MembersCore Technical Sta?New Application for Invention PatentNew Invention PatentNew Utility Model PatentsCumulative Valid Patents GrantedTotal Valid Trademarks Registered at Home And AbroadCumulative Software Copyrights
Industrial Performance
Technological Innovation & Intellectual Property Protection
67.9620
2.89
%times
Product YieldOccurrence of Product Recall and Major Product Quality Accidents
Product Quality
Environmental performanceEnvironmental ManagementMajor Environmental Violation IncidentsIncidents with Signi?cant Impact on BiodiversityEnvironmental Hazard InvestigationIdenti?cation of Potential Environmental Hazards through InvestigationsRecti?cation Rate of Identi?ed Hazards
timestimestimesitems
%
%
%Customer SatisfactionComplaint Resolution Rate
Customer Service
90.48
指标单位2023年
4,526.52
106.57
43.77
226.57
22,087,897151,795
15,746.733,150.0112,596.73
2,4117,455.67
648.97
8.64
指标单位2023年
Supplier Management
companiescompaniescompaniescompanies%
Cooperating Suppliers·Local Suppliers·Domestic Suppliers ·Overseas SuppliersPercentage of suppliers executing the Supplier Integrity Commitment Letter
CNY thousandInvestment in Dealer Training
Dealer Management
83.94
441.8
IndicatorUnit2023IndicatorUnit2023
Employee PerformanceLabor Relations Management
指标单位2023年
personspersonspersons%%personspersons
%personspersons
%
%
%persons
%persons
%times
New IndividualsNew Female IndividualsRetirees Got Re-employedPercentage of Contract WorkersSocial Insurance CoverageTotal Sta? Employs MembersEmployees with Over 10 Years (Inclusive) of Work ExperienceProportion of Employees with Over 10 Years (Inclusive) of Work ExperienceEmployees with DisabilitiesEmployees from Ethnic MinoritiesFemale EmployeesFemale Coverage of STEM professionsFemale Coverage of managerial positions within our revenue-generating departmentsEmployees on Maternity LeaveReturn-to-Work Rate after Maternity LeaveEmployees on Parental LeaveReturn-to-Work Rate after Parental LeaveIrregular Employment Events
1,702
3,830
1.73
Employee Performance指标单位2023年
Employee DevelopmentOnline Learning HubTraining Courses AddingParticipation of Online Learning HubActive Learning Duration on Online Learning HubEmployees Successfully Participated in Internal Job Competitions or Transfers
itemspersons
hourspersons
4,2921,073107,171
Safe ProductionTotal Safety InvestmentMajor Casualty AccidentWork-related InjuriesWork-related DeathIdenti?ed Irregularities during Safety InspectionsZhaoqing PAKChaoqing PAKNansha Production BaseImpressive On-time Recti?cation RateZhaoqing PAKChaoqing PAKNansha Production Base
CNY thousand
timespersonspersons
items
items
items
%%%
363.2
Public Welfar
CNY thousand
CNY thousand
CNY thousand
Input in Public Welfar·Donation·Market Value of Donated Goods
Employee DevelopmentEmployees’ Training ConductionEmployees’ Training DurationEmployees’ Training ParticipationInternal InstructorsInternal Training CoursesThe Internal Trainning Project E?ect Score is Equal
timeshoursperson-time
persons
items
—
10,813
93.13
314.5
172.5
IndicatorUnit2023IndicatorUnit2023
Content
Guidelines on Corporate Social ResponsibilityReporting for Chinese Enterprises (CASS-ESG
5.0)
Sustainability Reporting Standards ofGlobal Sustainability Standards Board
(GRI Standards)About This ReportP1.1/P1.2/P1.3/G3.72-2/2-3/2-4Message from the ChairmanP2.1/P2.2/Sustainable Development Highlights in 2023P3.1/
Glance at PAKP4.1/P4.2/P4.3/P4.42-1/2-6/2-9Ful?llment ofResponsibilities:
ConsolidatingCornerstonesforSustainableDevelopment
Govemance philosophy for
sustainable development
G2.1/G3.2/G3.112-9/2-14Sustainable DevelopmentGovernance Objectives
G3.22-14/2.22Communication withStakeholders
G3.62-16/2-29Analysis of Substantivelssues
G3.53-1/3-2/3-3
ComplianceGovernance:
Building a SolidFoundation for theCompany
Corporate GovernanceG1.1/G1.22-9/2-10/2-11/2-12Risk Control and InternalControl
G1.3/G1.42-27/207-1/207-2
Rights and Interests ofInvestors
G1.102-16/2-27/2-29Business EthicsG1.7/G1.8/G1.9205-1/205-2/205-3/206-1
Information SecurityS4.6418-1Party-building Governance/2-27
Low-carbonDevelopment:
Leading to a Green
Future
Environmental ManagementE1.1/E1.2/E1.3/E1.4/E1.5/E1.6/E1.72-12/2-27
Green LightingE1.8/E2.7/E2.8/V4.3/V4.4301-2/301-3/302-5Energy ManagementE2.1/E2.2302-1/302-2/302-4/302-5Responding to Climate
Change
E2.4/E2.5/E5.2/E5.3/E5.5/E5.6201-2/305-1/305-2
Water Resources
Management
E2.9/E2.10/E2.11/E2.12/E2.13303-1/303-2/303-3Environmental Impact
Control
E3.1/E3.2/E3.3/E3.4/E3.5/E3.6/E3.8
303-2/303-4/303-5/306-1/306-2/306-3/306-4/306-5Green OperationsE2.14/E4.1/V4.4304-1/304-2
Indicator Index
Content
Guidelines on Corporate Social ResponsibilityReporting for Chinese Enterprises (CASS-ESG
5.0)
Sustainability Reporting Standards ofGlobal Sustainability Standards Board
(GRI Standards)
Enhancing Qualityand E?ciencyto Drive Value
Growth
Research andDevelopment (R&D) and
Innovation
V2.1/V2.1/V2.3/V2.4/V2.5/V2.7/V2.8203-1Product LiabilityS4.1/S4.4/S4.9416-1Elevating Customer
Experience
S4.1/S4.2/S4.4/S4.5/S4.7/S4.8416-1Supply ChainManagement
S5.1/S5.2/S5.3/S5.6204-1/308-1/414-1Dealer Management//
Team Building:
ShapingWorkforceCohesion
Labor Relations
Management
S1.1/S1.2/S1.3/S1.4/S1.6/S1.7/S1.8/S1.10/
S1.11
2-7/2-19/2-20/2-30/201-3/401-1/401-2/405-1/406-1/
407-1/408-1/409-1Employee DevelopmentS2.1/S2.2/S2.3/S2.4404-1/404-2/404-3Occupational Health and
Safety Production
S3.1/S3.2/S3.3/S3.4/S3.5/S3.6/S3.7/S3.8/S3.9
403-1/403-2/403-3/403-4/403-5/403-6/403-7/403-8/
403-9/403-10Devoted toCommunityWelfare andSpreading SocialWarmth
Lighting up Social
Responsibility
V3.4415-1Lighting up Rural
Revitalization
V3.3/V3.4/V3.5415-1Lighting up Health BoosterV3.3203-1/203-2Smart Strategies: Illuminating the Path AheadA1/
Appendix
Performance Appraisal
A2/Indicator Index A4/Feedback FormA52-16
Feedback FormDear reader,
Mail: info@PAK.com.cnAddress: No. 293 Caixin Road, Lanhe Town, Nansha District, Guangzhou, China
1. Which category of stakeholder do you belong to?
□Shareholders and Investors □ Government and Regulatory Agency □Employee □Customer and Partner □Supplie □Community and Public
□Other
2. Your overall assessment of this year's ESG report
□Excellent □Good □Fair □Poor □Bad
3.What do you think of this report?
Information disclosure：□Better □Good □Fair □Poor □Bad
Layout： □Better □Good □Fair □Poor □Bad Readability： □Better □Good □Fair □Poor □Bad
4.Which issues are most concerns to you? (You can choose 3 options)
Greetings! Thank you so much for dedicating your precious time to review this report amidst your busy schedule. To ensurethat you and other stakeholders receive even more valuable ESG insights, we kindly request your assistance in completing thefeedback form and providing us with feedback in the areas mentioned below. Your inputs will greatly assist us in further enhancingour ESG management capabilities.
· Governance Issues
· Social Issues
· Environmental Issues
□ESG governance □Governance structure □Investor relations management
□Business Ethics □Compliance operation
□Green product □Fight climate change □Environmental Management
□Energy-saving technology □Resource utilization □Emission management
5.Is the information you are concerned about re?ected in this year's ESG report?
□Yes □No （What other information would you like to see?_____________________）
6.What other comments or suggestions do you have regarding our ESG reporting or ESG e?orts and
sustainability management?
□Digital construction □Research and Development Innovation □Industry development and win-win
□Privacy and data security □Product and service quality □Customer service
□Supply chain management □Diversity and equality □Talent introduction and retention
□Employee rights and bene?ts □Sta? training and development □Occupational health and safety
□Intellectual Property Protection □Social Welfare