About this ReportChairman's StatementAbout Luxshare Precision
Assurance ReportKey Performance DataGRI Content Index
Recognition and HonorsExcellent Performance
Appendix
Contents
Sustainability GovernanceStructureTargets and StrategiesStakeholder CommunicationMaterial Issues Identification
Sustainability Governance
Corporate GovernanceRisk ControlQuality ManagementEncourage InnovationIntelligent Manufacturing
Way of GovernanceDriven by Intelligent Manufacturing,Led by Governance
Green and Low-carbon StrategyReduction of Greenhouse GasEmissionsWater Resource ManagementPollutant DischargeManagementGreen Product Exploration
Leading the Green Path
A Low-carbon Approach toPreserving the Eco-friendly Legacy
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
People-oriented Approach
Progressing Together with Care andSincerity
Supply Chain ManagementSystemConflict Minerals ManagementGreen Supply ChainGiving back to the Society
The Path to Development
Striving Forward Together forHarmonious Future
0202
2023 Sustainability Report
About this Report
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
About this Report
Introduction
Luxshare Precision Industry Company Limited releases a sustainability report everyyear, which focuses on the disclosure of the concepts, goals, work progress and futureplans of the Company and its subsidiaries in terms of sustainable development.
Preparation Basis
Luxshare Precision has prepared this Report in accordance with "the GRI Standards"and taken reference to theSocial Responsibility Instructions to Listed Company
issued by the Shenzhen Stock Exchange as well as the issues MSCI and others areconcerned with in respect of the Environmental, Social and Governance (ESG) rating ofcapital market. In the process of preparation, this Report was prepared by identifyingthe important stakeholders, analyzing and arranging substantial issues about thesustainable development, defining the contents of this Report, and summarizing,sorting and reviewing the relevant information.
Data Source
All data used in this Report originates from Luxshare Precision Industry Company andits subsidiaries.
Terms DefinitionFor the convenience of expression and reading, "Luxshare Precision", "We" and "us","the Company" in this Report refer to Luxshare Precision Industry Company Limited.Unless otherwise specified, the terms and abbreviations of subsidiaries used in thisReport have the same meanings as those defined in the Company's2023 AnnualReport.
Reporting Entities and PeriodUnless otherwise specified, the policies, statements and materials in this Report coverthe actual business scope of the Company, and the reporting entities in the Report arethe same as those of the2023 Annual Reportof the Company. The Reporting Period isfrom January 1, 2023 to December 31, 2023.
Availability of this Report
Luxshare Precision Sustainability Report is released annually at the same time as theAnnual Financial Report. You can access the simplified Chinese and the English versionof this Report through the following website. In case of any inconsistency between theversions, the Simplified Chinese version shall prevail.https://www.luxshare-ict.com/sustainability/reports-and-polices.html
Confirmation and Approval
This Report was approved by the Board of Directors for release on April 24, 2024.
Reliability Statement and AssuranceThe Board of Directors is responsible for the truthfulness, accuracy and completenessof the Report. Luxshare Precision has commissioned T?V Rheinland (Shanghai) Co., Ltd.to conduct an external audit according to AccountAbility AA1000 Verification Standards.The statement of independent verification is provided on page 76 of the Report.
2023 Sustainability Report
About this Report
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's Statement
About Luxshare Precision
Chairman's Statement
Looking back in 2023, we saw slow recovery of theglobal economy and fierce competition in the industry.In the face of challenging environment, we truly feltthe strength of Luxshare Precision, who showcasedthe mission and commitment of “Made in China” inthe international arena. The responsibility grew evenclearer to us to push forward with the development ofthe electronic industry and become a high-end brandin the global value chain. It is our faith and belief thatunderlie the responsibilities. We are in the convictionthat the sustainability of our business stems from themission to create long-term value. While designingand practicing the corporate vision, mission andvalues, we keep exploring how to take advantage ofour products to implement the ESG strategies, how tobetter incorporate ESG into our business, and how toleverage on our capabilities to solve social problems.In the process of addressing a series of issues, wegain insight into the relationships of Luxshare Precisionwith the era, the nation, the society and the industry.We strengthen strategic leadership,understand and take responsibilities withfulfilling market expectations.Luxshare Precision always considers standardoperations as a starting point, value realization asfootholds, and investor needs as orientation, in abid to improve the governance compliance andrisk control systems of the Company and has alsowon long-term trust of the consumers, customersand other stakeholders. The Board of Directorsof the Company meticulously puts the regulatoryrequirements into practice, empowers the corporatestrategies, and consistently gives impetus to thecorporate governance mechanism with well-definedpower and responsibilities and well-maintainedbalance. While constantly improving the Company'sgovernance capabilities, we aggregate and consolidateour R&D advantage. In the future, digital technologieswill play an increasingly significant role. Embarkingon the journey of Industry 4.0, the Companyrigorously develops Intelligent Manufacturing,continues to accumulate the technological andmanufacturing advantages, and further steps up the
the mechanism of protection within the Company,and render competitive compensation and benefits aswell as diversified career development opportunitiesto our employees. It is always our mission to helpevery employee grow in an equal, respectful, happy,inclusive and diverse environment.We create shared value and build trust todeliver our social responsibilities.Luxshare Precision has always been trying to expandits responsibilities it undertakes for many years. Weendeavor to develop a responsible and sustainablesupply chain system with suppliers and other partners,give full play to our industrial influence, and assist oursuppliers in constantly improving their environmentaland social performance. On top of that, we proactivelyencourage our suppliers to invest in energy conservationand deliver our commitment to reduce pollution andcarbon emissions along the whole value chain. Inthe meantime, we keep abreast of and take initiativeto respond to the actual needs of the communitieswhere the Company operates. We lead the communitydevelopment and volunteer services, demonstratingthe responsibilities and commitments of LuxsharePrecision as a corporate citizen.With a well-designed blueprint, it isimperative to make continuous contributions.Our future is full of challenges mixed with hopes. Bystaying true to the original aspiration of "Connectingthe Future with Technology", Luxshare Precisionunderpins smart manufacturing with technologiesand innovations, and injects new productive forcesas new momentum into corporate development,to mark the new milestone. In addition, LuxsharePrecision will hone the Company's own competenceand capitalize on the strength of the industry, witha view to moving towards the world's top-notch andglobally competitive enterprise.
R&D of Intelligent Manufacturing by virtue of artificialintelligence, 5G, cloud computing, big data and othernew-generation information technologies.We delve into sustainability and performmeticulously to drive the sustainable valuechain.Against the backdrop of global climate change andshouldering the responsibility of facilitating "carbonpeaking and carbon neutrality", we are well-aware thatchange and transformation entail concerted effortsalong the whole value chain. In January 2024, LuxsharePrecision's emissions reduction targets were officiallyvalidated and approved by the Science Based Targetsinitiative (SBTi). We will advance the attainment of theclimate targets in an orderly and phased manner inthe future as guided by the overall plan for climatetransformation path. Despite all the difficultiesand challenges, we speak with conviction that asustainable future is inevitably driven by new energyand new technologies. Luxshare Precision integratesenergy management with smart park management,and unleashes the potential of energy efficiencyimprovement, by boosting the development of theInternet of Energy (IOE) smart energy managementplatform. Meanwhile, the Company continues toexpand the proportion of clean energy usage andoptimize the energy structure by developing rooftopPV systems, purchasing green electricity directly andother methods.We join forces with our employees to shareaccomplishments and build a harmoniousworkplace.The progress and advancement of the Company can'tbe achieved without the unremitting efforts madeby our talents. We hold fast to strict managementcombined with genuine care, provide various channelsto recruit talents, and build a stage for our employeesto make their dreams come true. Considering people'sneeds and well-being as central, we have establisheda sophisticated human resources system, continuouslyramp up the management of employee benefits and
Wang LaichunChairman of Luxshare Precision
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
2023 Sustainability Report
Company ProfileRecognition and HonorsExcellent Performance
About Luxshare PrecisionCompany Profile
Main Business
Established on May 24, 2004, Luxshare Precision Industry Company Limited was successfully listed on the Shenzhen Stock Exchange on September 15, 2010 (Stock Code:
002475). Headquartered in Dongguan City, Guangdong Province, China, the Company has over 100 subsidiaries, mainly located in Guangdong, Jiangxi, Jiangsu, Zhejiang,Anhui and other regions of China, and foreign countries such as Vietnam, India, and Mexico, and has established R&D centers in Shanghai, Dongguan, Shenzhen, Xi'an,the United States, etc.
Luxshare Precision adheres to the core corporate value of "Pragmatism, Enterprising, Developing, Innovation, Cooperation, Fusion, Thanksgiving, and Return", alwaysinsists on the technology orientation as the core, integrates the product research & development and application services, and gradually realizes the leap from traditionalmanufacturing to intelligent manufacturing. We are committed to providing integrated intelligent manufacturing solutions from core components and modules to thesystem assembly for consumer electronics, automotive products and enterprise communication products. For more information about the industry and business of theCompany, please refer to Section III Management Discussion and Analysis of the2023 Annual Report.
Industry Cooperation
This chapter only shows some of the industry associations that Luxshare Precision has participated in.
As a leading enterprise in the industry of electroniccomponents, Luxshare Precision and its subsidiarieshave become formal members of more than 50industry associations. They participate in industryconferences, assist in the formulation of industrystandards, and share the latest industry technologiesto enthusiastically promote industry managementnormalization and unification, and impel the healthyand stable development of the industry.
Product Application ScenesConsumer Electronics
Office scene: Smart display, intelligent conference system, AR/VR/MR, smartspeakers, laptops, controllers, tablet computers, smart phones, wireless chargingand security camerasIndoor family scene: Smart vacuum cleaners, gamepads, smart adapters, routers, smartspeakers, e-book, robot vacuum cleaners, cosmetic instruments, TAG trackers, VR, etc.Outdoor application scene: AR glasses, bone conduction headphones, wirelessbluetooth headphones, smart bracelets, smart watches, outdoor power supply,balance cars, electric scooters, smart safety lock, electric vehicle chargers andsmart helmetsAutomotive
Multi-category product lines within and outside the cockpit, covering core componentsincluding vehicle wiring harnesses, connectors, intelligent network, smart cockpit andnew energy vehicle power systems
Medical Health
Start from consumable products, carry out rapid integration towardssurgery, imaging and other equipment product lines
Communication and Data Center
Data center scene: Extend from components and modulesproducts to complete server assembly, develop optical andelectrical transmission and power supply products of low-speedand high-speed IO interface, expand thermal managementsystem modules and vertically integrate the complete solution ofthe data centerWireless base station application scene: Deeply integrate andfocus on the antenna, CPE, tower amplifiers, RF units and otherproduct lines
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
2023 Sustainability Report
Corporate Development History
2004
2016
2011
2021
2005
2017
20122010
201920152013
2014
Luxshare PrecisionIndustry Co., Ltd.was foundedofficially
In May
Luxshare Precision wassuccessfully listed on theShenzhen Stock Exchange(Stock Code: 002475)
In September
Luxshare Precisionacquired LuxshareElectronic Technology(Kunshan) Ltd.
In March
Luxshare Precision acquiredFujian JK Wiring SystemsCo., Ltd.
Luxshare Precision acquiredHuzhou Jiuding ElectronicCo., Ltd.
In May
In December
Luxshare Precisionacquired controllingshareholding of MerryElectronics (Suzhou)Co., Ltd.
Luxshare-ICT (Vietnam)Limited was established
In August
In October
Luxshare India Private Limited was established
Luxshare iTech (Zhejiang) Co., Ltd. wasestablished
Luxshare-ICT (NGHE AN) Limited was established
Luxshare Intelligent Manufacture Technology(Changshu) Co., Ltd. was established
In FebruaryIn AprilIn AugustIn October
Xiexun Electronic(Ji'an) Co., Ltd. wasestablished
In November
Luxshare Precision acquiredASAP TECHNOLOGY (Jiangxi)CO., LTD.
Luxshare Precision acquiredLanto Electronic Limited
Luxshare Precision Limitedwas established
Luxshare Precision acquiredICT-LANTO LIMITED
Luxshare Precision Industry (Kunshan) Co., Ltd. was established
In January
In MayIn May
In JuneIn October
Luxshare Precisionacquired SuKKunststofftechnikGmbH (Germany)
In October
Luxshare Precisionacquired controllingshareholding ofMerry Electronics(Huizhou) Co., Ltd.
In March
Luxshare Precisionacquired controllingshareholding of LuxcasePrecision Technology(Yancheng) Co., Ltd.
In January
Luxshare Precisionacquired controllingshareholding of SpeedTech Corp.
Dongguan LuxsharePrecision Industry Co., Ltd.was established
In July
In November
Company ProfileRecognition and HonorsExcellent Performance
2022
Luxshare Precisionacquired controllingshareholding ofTime InterconnectTechnology Limited
In March
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
2023 Sustainability Report
Recognition and Honors
Silver MedalEcoVadis Certification"BB" LevelMorgan Stanley Capital International（MSCI）Index
Excellent Case of ESGResponsibility for "XinhuaCredit Jinlan Cup"
China Economic InformationService
2023 ESG Best Practice Caseof Chinese Listed CompaniesChina Association for PublicCompanies
"A-" Rating in Climate Change"B" Rating in Water Security
Carbon Disclosure Project
Listed in "Pioneer 100 China ESG Listed Companies"
China Media Group
People's Corporate SocialResponsibility AwardGreen Development Award
People.cn
2023 "Golden Key·Honor Award"China Sustainability Tribune
Ranked 3rd in Industry in CITIRanked 6th in Industry in CATI
The Institute of Public &Environmental Affairs
Company ProfileRecognition and HonorsExcellent Performance
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
2023 Sustainability Report
Recognition and Honors (Continued)
2023 "Evergreen Award"Green Award forSustainability
Caijing Magazine
2023 Award for ESG ModelEnterprise among ListedCompaniesTimes Media Group
Listed in "Top 100 ListedCompanies of China in ESG"Securities Times
EnvironmentallyFriendly PioneerEnterprise AwardCLS.CN
Women's EnterpriseCertificate
MSD China
2023 Green SustainableDevelopmentContribution Award2023 International GreenZero Carbon Festival
2023 Fortune Global 500
Fortune
Listed in "2023 Forbes ChinaESG Innovation EnterpriseSelection"
Forbes China
"Golden Awards" AnnualSustainability AwardBest Environmental (E)Responsibility AwardSina Finance
Company ProfileRecognition and HonorsExcellent Performance
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's Statement
About Luxshare Precision
2023 Sustainability Report
Excellent Performance
The result was calculated based on operational boundary data, the statistical method was market-based, and the current data has not been verified.
Way of GovernanceDriven by Intelligent Manufacturing, Led by Governance
Leading the Green PathA Low-Carbon Approach to Preserving the Eco-Friendly Legacy
The signing rates of theEmployee's Letter ofIntegrity CommitmentandEmployee's Letterof Commitment on Code of Conductreached100%Accumulated patentsgranted reached
6,202Special ESG investorcommunications were carried out
times
Number of informationleakage incidents was
Handling rate of businessethics related complaints was
100%
From 2022 as a base year, absoluteScope 1&2
GHG emissions reduced yearon year by54%
From 2022 as a base year, Scope 3GHG emissions per CNY of value addeddecreased by13%Energy saved reached143,893 MWh
Number of internal audittasks completed was
Investment in clean technologyresearch and development was over
RMB
millionOverall installed capacity of rooftopsolar PV power generation reached
MW
Number of energy conservationtransformation projects was
Number of subsidiaries certifiedby the ISO 14001 environmentalmanagement system was
Number of green factories was
Utilization rate of clean energy reached63%
Number of subsidiaries that received AWS International Sustainable WaterManagement Standard Gold Level certification was
Accumulative number of subsidiariesthat obtained UL 2799 Zero Waste toLandfill validation was
Company ProfileRecognition and Honors
Excellent Performance
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's Statement
About Luxshare Precision
2023 Sustainability Report
CSR：Corporate social responsibility.
SORs：Smelters or refineries.
The coverage rate of employee engagementand satisfaction survey was
Number of suppliers and subsidiariesassisted in achieving the removal ofenvironmental violation records wasThe number of valid responsescollected was over
Promoted suppliers to save energy by
Total number of requests and suggestionsthe employee platform received was
CSR
audits ratio for newsuppliers was
100%
100%
100%The case closure rate was
The signing rate of theLetter ofGuarantee on the Responsible BusinessAlliance Code of Conductfor newsuppliers reached100%
Excellent Performance (Continued)
Number of incidents involving humanrights violations and discrimination was
Number of supplier training sessionsorganized was
Compared to the previous year, work-related injuries decreased by
46%
The total number of participants in thetraining reached5,529
The total expenditure onemployee training programs was
Proportion of SORs
involving 3TG
in the supplychain that passed RMAP
certification wasAverage training time per person wasThe total investment in public welfare
and charity undertakings was
People-oriented Approach
Progressing Together with Care and Sincerity
The Path to DevelopmentStriving Forward Together for Harmonious Future
18,487
210,00059
15,890 MWh
RMB
10.95
million
hours
100%
RMB
12.63
million
3TG：Tantalum, tin, tungsten, and gold. These four metal minerals are collectively referred to as 3TG minerals.
RMAP：A third-party responsible mineral source certification program publicly released by the Responsible Minerals Initiative (RMI) industry organization, verified by the Responsible Business Alliance (RBA).
Company ProfileRecognition and HonorsExcellent Performance
Sustainability Governance
Luxshare Precision regards sustainable development as a part ofthe Company's overall strategy, focusing on the aspects such asclimate-related risks and opportunities, protection of employeerights and interests， responsible supply chain management, andbusiness ethics, and seizing the opportunities for sustainabledevelopment in the new era.Internally, we continuously track cutting-edge information relatedto sustainable development, make comparison with advancedindustry practices, and constantly improve our internal sustainabledevelopment and management capabilities; externally, we haveestablished a normalized communication mechanism, proactivelylisten to and respond to the demands of stakeholders in a timelymanner, and work together with enterprises and the society tostride towards a more sustainable future.
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
About this Report
2023 Sustainability Report
Sustainability Governance StructureTargets and Strategies
ESG Management Policy
Luxshare Precision has established a three-level sustainability governance structure featuring "decision-making - planning - execution". We invite professional third-party institutions to provide annual training on thelatest trends and excellent practices in the field of sustainable development for all team members, effectivelyenhancing our internal sustainable development management capabilities. As the highest decision-makingbody of the governance team, the Board of Directors reviews important sustainable development work matterssuch as the overall plan, strategies, management policies, and goals proposed by the Sustainable DevelopmentCenter by combining regular meetings and ad hoc meetings. Moreover, it reviews the progress of achievingthe goals in accordance with the various sustainable development goals and provides action requirements andsuggestions for areas or aspects that need to be improved. For more information about the responsibilities ofLuxshare Precision ESG governance team, please refer to theCompany's official website.
Luxshare Precision always adheres to the ESG management policy of "Scientific Governance, Green and
Low Carbon, Harmony and Health, Responsible Procurement", pursuing a balance between social impact,environmental benefits, and corporate financial performance to create more shared value. We will upholdthe principle of sustainable development throughout our development and pass it on to our upstream anddownstream partners, with a view to jointly forging sustainable competitiveness in the global value chain.
Sustainability Governance Structure
Build a harmonious workplace, respect therights and interests of employees in eachoperation site, establish smooth communicationchannels, continuously improve the democraticmanagement system, provide diversifieddevelopment pathways and a sound occupationalhealth management system for employees,and create a harmonious, democratic, safe andcomfortable work environment.
Maintain a benign relationship with suppliersof mutual benefit, win-win cooperation andcommon development, establish a sound supplychain social responsibility management system,build a green and responsible value chain, andjointly work for a sustainable future.
Scientific Governance
Continuously improve corporate governancestructure, enhance corporate governance, followthe requirements of business ethics, build trustwith all stakeholders, boost the long-term value ofthe Company, and pursue sustainable corporatedevelopment and business model.
Implement the national green development strategy,advance green and low-carbon transformation,reduce waste and increase efficiency, promotegreen and eco-friendly products and services,help achieve scientific carbon goals, seize cleantechnology opportunities, and drive green and low-carbon development of the whole industry andsociety.ESG Practice
Sustainability GovernanceWay of Governance
ESG PracticePeople-oriented Approach
ESG Practice
ESG Practice
Leading the Green Path
The Path to Development
Green and Low Carbon
Harmony and HealthResponsible ProcurementSustainable Development Center
Office of theSecretary ofthe Board
DisciplinaryCommittee
EHSCommittee
CentralFunctionalDepartments
HumanResourcesDepartment
Information SafetyManagementDepartment
Intellectual PropertyManagementDepartment
Business UnitESG WorkingGroup
Other Functional
and ServiceDepartments
Supply ChainManagementDepartment
Decision-making LevelPlanning LevelExecution LevelBoard ofDirectors
Sustainability GovernanceStructureTargets and Strategies
Stakeholder CommunicationMaterial Issues Identification
Chairman and CEO
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
About this Report
2023 Sustainability Report
Commitment for Critical Goals
The UN Sustainable Development Goals (SDGs) function as an important guide for Luxshare Precision in carrying out sustainable development work. We are committed to promoting the achievement of SDGs as our main task,enhancing our management capabilities in matters such as supply chain, production/operation, products, employees, and social participation, and continuously optimizing the direction and path of action.
Value Chain
Sustainable Development Goals and
Commitments
Progress in 2023
Production /
Operation
Corporate Governance GoalsProgress of Corporate Governance GoalsContinue to improve corporate governanceand internal control system
Establish three defense lines for riskmanagement and internal control underthe guidance of COSO frameworkConduct regular stakeholdercommunication through multiple channels
Conducted 17 ESG special investorcommunications sessionsPercentages of female directors andindependent directors in the Board are notless than one third
Female directors accounted for 42.86%;independent directors accounted for
42.86%
Continuously improve the business ethicsstandards and unblock whistleblowingchannels to complete a 100% handlingrate of business ethics related complaints
100% handling rate of business ethicsrelated complaintsConduct regular business ethics trainingand build a culture of honest management
The employee anti-corruption trainingcoverage was 100%, and the total durationof anti-corruption and business ethicsrelated training reached 293,076 hoursZero major information leak, zero majorinformation system failure and zerobusiness continuity interruption incident
Passed the annual audit of ISO 27001information security standard certification,and zero relevant incident took placeCommunityEngagement
Maintain good communications withlocal communities where operations areconducted
Actively participate in communityactivities, and care for and visit vulnerablegroupsActively contribute to local communitydevelopment
A total of RMB 12.63 million was investedin public charity activitiesActively contribute to local communityconstruction
Devote to social welfare activities such asdisaster relief and rural revitalization, andcontribute to community construction
Value Chain
Sustainable Development Goals and
Commitments
Progress in 2023Production /Operation
Environmental GoalsProgress of Environmental GoalsSet GHG emission reduction goalsconsistent with the scientific carbonreduction goal of a 1.5°C pathway
The formulation of scientific carbonreduction goals has been completed andthe Company has been certified by the SBTiReduce absolute Scope 1 and 2 emissions
50.4% by 2032 from a 2022 base year
The absolute emissions (market-based) ofScope 1 and 2 decreased by 54% from a2022 base yearThe Company shall save 250 million kWhenergy cumulatively from 2023 to 2025
Saved 140 million kWh energycumulativelyThe utilization rate of clean energy willreach 30% by 2023, 40% by 2024 and50% by 2025
The utilization rate of clean energyreached 63%The withdrawn water utilization rate willincrease by 20% by 2025 compared withthat of 2021
The withdrawn water utilization rateincreased by 17.03% in 2023 comparedwith that of 2021Employ the third party to conduct wastewaterdetection at least once a year
100% of the factories have met thestandardsAchieve a waste transformation rate of
85.5% by 2023, 88% by 2024, and 90% by
2025
The average waste transformation ratereached 86.06%Impose strict graded control of hazardoussubstances and gradually materializereplacement and reduction goalscomprehensively
Developed and promoted hazardoussubstance phased-out plans based ondomestic and international policy trendsand customer standards
Sustainability GovernanceStructure
Targets and StrategiesStakeholder CommunicationMaterial Issues Identification
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
About this Report
2023 Sustainability Report
Value Chain
Sustainable Development Goals and
Commitments
Progress in 2023
Supply Chain
By 2025, more than 80% SORs whichinvolve 3TG business pass certification ofResponsible Minerals Assurance Process(RMAP) or other relevant certifications
100% of SORs involving 3TG businessin the supply chain passed RMAPcertificationInitiate green supply chain initiativesto promote environmental and socialresponsibility among suppliers
Assisted 59 suppliers and subsidiaries inachieving the removal of environmentalviolation recordsSet GHG emission reduction goalsconsistent with the Science Based Targets(SBT) of a 1.5°C pathway and involve theScope 3 reductions
The formulation of scientific carbonreduction goals has been completed andthe Company has been certified by theScience Based Targets Initiative (SBTi)Reduce Scope 3 emissions 58.1% per CNY ofvalue added by 2032 from a 2022 base year
Reduce Scope 3 emissions 13% per CNYof value added from a 2022 base yearPromote suppliers to save 100 million kWhenergy cumulatively from 2023 to 2025
Drove suppliers to save 15.89 million kWhof energyProducts
Complete the intelligent production andmanufacturing system, and graduallypromote the industrial intelligenttransformation
The 5-year Plan for intelligentmanufacturing is being prompted,and intelligent upgrade of 32 businessprocesses was completedStrengthen the quality managementsystem and continuously improve productquality
The Company and its major productionbases have passed the ISO 9001 qualitymanagement system certificationMotivate R&D and innovation of coretechnologies and encourage associatedpatent R&D and application in cleantechnologies
1,527 patents were newly added, and thetotal number of patents reached 6,202Constantly increase R&D investment ofgreen products and clean technologies
More than RMB 300 million was investedin the R&D of green products and cleantechnology, and 46 patents related toclean technology were obtained
Value Chain
Sustainable Development Goals and
Commitments
Progress in 2023Employees
Value and respect the rights and interestsof all employees at home and abroad, toavoid discrimination and damage to labors'rights and interests
A labor risk management framework of"identification - prevention - supervision- mitigation and remediation" wasestablished, and zero incident of laborrights infringement and discriminationtook place this yearRealize "zero work-related death incidentand zero occupational disease incident",and achieve 10% reduction in annual work-related injury incidents of the Companyeach year compared to the previous yearfrom 2023 to 2025
No work-related fatalities took place,and the number of work-related injuriesdecreased by 46% year on year
Construct an occupational environmentwith diversity, inclusiveness andequality, provide a competitiveremuneration plan for all employees,provide diverse promotion channels
We continuously promote scientific andrational adjustment of salary, improvethe promotion system and mechanism,and launch the "Star Characters" and"Thanks to You" honor system to enhancethe sense of identity and belonging ofemployeesUnblock employee complaintchannels, actively carry out employeecommunications, and build a team ofemployees with high satisfaction andengagement
The coverage rate of employeeengagement and satisfaction surveywas 100%, with over 210,000 validquestionnaires collectedRetain 100% signing rate of theEmployee'sLetter of Integrity Commitment
The signing rate of theEmployee's Letterof Integrity Commitment reached 100%Strengthen employees' awareness ofconfidentiality, and training on informationsecurity and privacy protection
The total duration of information securitytraining reached 201,701 hours, with atotal of 64,003 participants100% employees receive on average 20hours of training annually by 2025
The employee training coverage was100%, with an average training durationof 23 hours per person
Commitment for Critical Goals (Continued)
Sustainability GovernanceStructureTargets and Strategies
Stakeholder CommunicationMaterial Issues Identification
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
About this Report
2023 Sustainability Report
StakeholdersGovernments and
Regulatory Agencies
Shareholders and
Investors
SuppliersCustomersEmployeesCommunity MembersPartners and
Social Media
MajorConcernedMaterialIssues
Energy managementEmployee diversity andequal opportunitiesTalent attraction andretentionResponsible supply chainmanagementClimate-related risks andopportunitiesCorporate governance andrisk control Business ethicsInformation security andprivacy protection
Energy managementOccupational health andsafetyCustomer relationshipmanagement Product responsibilitiesInnovative research anddevelopmentInformation security andprivacy protectionClimate-related risks andopportunitiesZero-carbon commitmentand carbon management
Responsible supply chainmanagementInformation security andprivacy protectionCustomer relationshipmanagement Product responsibilitiesOpportunities in cleantechnologyHazardous substance andchemicals management
Climate-related risks andopportunitiesWaste and circularproductionHazardous substance andchemical management Business ethics Product responsibilitiesZero-carbon commitmentand carbon management
Talent attraction andretentionOccupational health andsafetyProtection of employeerights and interestsEmployee training anddevelopmentEmployee diversity andequal opportunities Product responsibilitiesInnovative research anddevelopment
Community engagementClimate-related risks andopportunitiesZero-carbon commitmentand carbon managementWater resources andwastewater managementWaste and circularproduction
Information security andprivacy protection Product responsibilitiesOpportunities in cleantechnologyResponsible supplychain management
CommunicationChannels
Supervision acceptance Regular disclosureIrregular reportingParticipation in relevantmeetings Survey questionnaires
Information disclosureGeneral Meetings ofShareholdersCommunication withspecial ESG investorsCall conference, email,etc. Survey questionnaires
Open tenderingDaily communication withsuppliersSupplier management andreviewSupplier training andempowerment Survey questionnaires Supplier conference
Online communicationplatformsRegular customerassessment Technical seminarsCustomer satisfactionsurveysAnnual and quarterlycommunications Survey questionnaires
Trade unions Employee symposiumEmployee complaints andappealsEmployee engagement andsatisfaction surveys
Information disclosure Complaint hotline Field visits Volunteer activitie
Information disclosureCommunication andinterviewEngagement in industryexchangesWeChat official accountplatform
Stakeholder Communication
Luxshare Precision actively listens to the suggestions and expectations of stakeholders on the Company's sustainable development strategies and practices, and uses them as a key reference for us to promote sustainabledevelopment work. We have identified seven types of stakeholders in light of the Company's own business characteristics and operational situation, and continuously improve the diversified communication mechanism.We encourage all relevant parties to appeal against potential negative impacts that may be caused or facilitated by the Company, and ensure that multiple appeal channels, such as the open email address(public@luxshare-ict.com)and complaint hotline, are maintained unobstructed, and dedicated employees are appointed to promptly contact the appellant to energetically remedy negative impacts and accept supervision and review upon theimprovements. We would regularly share relevant improvement progress with stakeholders and communicate with them to ensure the openness, transparency, and effectiveness of the remedial process.
Sustainability GovernanceStructureTargets and StrategiesStakeholder Communication
Material Issues Identification
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
About this Report
2023 Sustainability Report
Material Issues Identification
Double Materiality Survey Methods and ProcessesIn 2023, Luxshare Precision invited stakeholders to conduct issue evaluations from both the dimensions of "Financial Materiality" and"Impact Materiality", and sought their suggestions and opinions on material issues andsustainable development efforts.This year, Luxshare Precision received a total of 1,619 valid response questionnaires and 191 valid suggestions, and analyzed the survey results based on field interviews and third-party expert opinions. The analysis results wereconfirmed by the Board of Directors, ultimately identifying issues of high, medium, and low materiality, and forming a double materiality matrix and the analysis results of the impact of material issues on the value chain.We will continue to develop and implement internal action plans in consideration of the annual assessment for the materiality of issues, and disclose relevant information in our sustainability report to respond to the concerns ofstakeholders regarding the sustainable development efforts of Luxshare Precision.
Identification Process of Double Materiality Issues
Third-party
expertopinions
5 highly materialissues
13 moderatelymaterial issues
2 lowly material
issues
Impact materialityAssess the influence of the Company's operationon the environmental, social and governance issuesDegree ofinfluence
IrremediablenessLikelihood ofoccurrenceScope ofinfluence
Strategic planning& business strategy
20 ESG issuesLatest ESGmanagement trend
Overall situationof the industryCapital market
focus
Questionnaire
survey
Mailcommunication
Telephone
inquiryField interview
...
Boardreview
Financial materialityAssess the influence of the environmental, social andgovernance issues on the value creation of the Company
Degree of influenceLikelihood of occurrenceFinancial capitals
Manufactured capitals
Human capitals
Intellectual capitals
Natural capitals
Social and relationshipcapitals
Sustainability GovernanceStructureTargets and StrategiesStakeholder CommunicationMaterial Issues Identification
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
About this Report
2023 Sustainability Report
Matrix of Double Materiality Issues
Matrix of Material Issues of Luxshare Precision 2023
Financial Materiality
Impact Materiality
EnvironmentalSocialGovernanceHighly ImpactModerately ImpactLowly Impact
Highly Important
Zero-Carbon Commitment and CarbonManagement
2Climate-related Risks and Opportunities3Occupational Health and Safety4Employee Training and Development5Protection of Employee Rights and Interests
Moderately Important
Hazardous Substance and ChemicalsManagement
7Opportunities in Clean Tech8Talent Attraction and Retention9Energy Management10Waste and Circular Production11Corporate Governance and Risk Control12Responsible Supply Chain Management13Innovative Research and Development14Product Responsibility15Business Ethics16Information Security and Privacy Protection
Water Resources and WastewaterManagement18Customer Relationship ManagementLowly Important19Employee Diversity and Equal Opportunities20Community Engagement
Zero-CarbonCommitment andCarbon ManagementClimate-related Risksand OpportunitiesOccupational Health and SafetyEmployee Training andDevelopmentProtection of EmployeeRights and Interests
Hazardous Substance andChemicals ManagementOpportunities in Clean Tech
Talent Attraction and Retention
Energy Management
Waste and CircularProduction
Corporate Governanceand Risk Control
Responsible SupplyChain Management
Innovative Research and Development
ProductResponsibilityBusiness Ethics
Information Securityand Privacy Protection
Water Resources andWastewater ManagementCustomer Relationship ManagementEmployee Diversity andEqual OpportunitiesCommunity Engagement
Sustainability GovernanceStructureTargets and StrategiesStakeholder CommunicationMaterial Issues Identification
Way of Governance
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
About this Report
2023 Sustainability Report
IssueCategries
20 Material IssuesRelevant ChaptersGRI Standards
SupplyChain
Production/Operation
ProductEmployee
CommunityEngagementEnvironmental
Zero-Carbon Commitment andCarbon Management
Reduction of Greenhouse Gas EmissionsGRI 302 Energy GRI 305 EmissionsEnvironmental
Climate-related Risks andOpportunities
Green and Low-Carbon Strategy
Reduction of Greenhouse Gas Emissions
GRI 201 Economic PerformanceGRI 302 Energy
GRI 305 EmissionsSocialOccupational Health and SafetyOccupational Health and SafetyGRI 403 Occupational Health and SafetySocial
Employee Training andDevelopment
Talent DevelopmentGRI 202 Market PresenceGRI 404 Training and EducationSocial
Protection of Employee Rightsand Interests
Protection of Rights and Interests
Employee Well-being
Talent Recruitment and Retention
GRI 2-23 Policy CommitmentGRI 401 EmploymentGRI 402 Labor/Management RelationsGRI 405 Diversity and Equal
Opportunity
GRI 406 Non-discriminationGRI 407 Freedom of Association and CollectiveBargainingGRI 408 Child LaborGRI 409 Forced or Compulsory LaborEnvironmental
Hazardous Substance andChemicals Management
Green Product Explorations
Green Supply Chain
GRI 308 Supplier Environmental
AssessmentGRI 403 Occupational Health and
Safety
GRI 414 Supplier Social AssessmentGRI 416 Customer Health and SafetyEnvironmentalOpportunities in Clean TechGreen Product ExplorationsGRI 302 EnergyGRI 306 WasteSocialTalent Attraction and Retention
Talent Recruitment and RetentionRemuneration and Benefits Assurance
GRI 202 Market PresenceGRI 401 Employment
GRI 405 Diversity and Equal OpportunityEnvironmentalEnergy ManagementReduction of Greenhouse Gas EmissionsGRI 302 EnergyGRI 305 EmissionsEnvironmentalWaste and Circular Production
Pollutant Discharge ManagementGreen Product Explorations
GRI 306 WasteGovernance
Corporate Governance andRisk Control
Corporate GovernanceRisk Control
GRI 201 Economic Performance
GRI 207 Tax
GRI 405 Diversity and Equal OpportunityGRI 418 Customer PrivacySocial
Responsible Supply ChainManagement
Supply Chain Management SystemConflict Minerals ManagementGreen Supply Chain
GRI 205 Anti-corruption
GRI 308 Supplier Environmental
Assessment
GRI 414 Supplier Social AssessmentGovernance
Innovative Research andDevelopment
Encourage InnovationGreen Product Explorations
GRI 302 EnergyGovernanceProduct ResponsibilityQuality ManagementGRI 416 Customer Health and SafetyGovernanceBusiness EthicsCorporate GovernanceGRI 205 Anti-corruption GRI 206 Anti-competitive BehaviorSocial
Information Security andPrivacy Protection
Risk ControlGRI 418 Customer PrivacyEnvironmental
Water Resources andWastewater Management
Water Resource ManagementGRI 303 Water and EffluentsSocial
Customer RelationshipManagement
Quality Management
Green Product Explorations
GRI 416 Customer Health and SafetySocial
Employee Diversity and EqualOpportunities
Talent Recruitment and RetentionGRI 405 Diversity and Equal OpportunitySocialCommunity EngagementGiving back to SocietyGRI 413 Local Communities
Impact of Material Issues on the Value Chain
Highly ImpactModerately ImpactHighly ImportantModerately ImportantLowly Important
Sustainability GovernanceStructureTargets and StrategiesStakeholder CommunicationMaterial Issues Identification
Way of Governance
Driven by Intelligent Manufacturing,Led by GovernanceWith the acceleration of global economic integration, enterprisesare facing unprecedented opportunities and challenges. In thisdynamic backdrop, governance capabilities are more crucial thanever for enterprises to navigate this complex and ever-evolvingmarket environment. Meanwhile, the governance has emergedas a vital criterion for measuring a company's overall strength.While striving for perfection, Luxshare Precision is committed tocontinuous improvement in the corporate governance frameworkand risk management mechanisms and protects investors'legitimate rights and interests. We adhere to stringent businessethics standards and compliance requirements, foster a cultureof integrity, protect the security of corporate information, andsafeguard the privacy of both our customers and employees.Moreover, we place significant emphasis on product quality andR&D to consistently enhance our overall competitiveness.
●Corporate Governance and Risk Control●Business Ethics
●Information Security and Privacy Protection
●
Innovative Research and Development
●Product Responsibilities
●Customer Relationship Management
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
The Secretary of the Board of Directors, thedirector with a related party relationship, orany other director, as per relevant regulations,proposes an abstention from voting for thedirector with a related party relationship, whoshall then abstain from voting.
The director with a related party relationshipshall not participate in the review of mattersregarding the related party transaction.
When the Board of Directors votes on thematters regarding the related party transaction,after the voting rights of the director with arelated party relationship are excluded, theremaining directors unrelated to the related partytransaction present at the Board meeting shallvote in accordance with the provisions of theArticles of Association.
Corporate Governance
Corporate Governance Structure
Management Responsibilities of the Boardof Directors and the Board of Supervisors
Operation Mechanism of the Board ofDirectors
We have made ongoing efforts to refine our corporate governance framework, place particular emphasis on safeguarding the rights and interests of our investors, and adhere to the principles of anti-corruption, integrity, and faircompetition. Our goal is to set a benchmark for corporate governance within the industry. We rigorously comply with the tax regulations in the places where we operate worldwide and actively fulfill our tax obligations. For theCompany's generation, distribution and retention of economic value and financial assistance received from the government, please refer to Section X Financial Report of the2023 Annual Report for more details.
Luxshare Precision has established a corporate governance structure comprising the General Meetingsof Shareholders, the Board of Directors, specialized committees under the Board of Directors, the Boardof Supervisors, and the C-suite. We refine our modern enterprise system and regulate the Company'soperations in strict accordance with relevant laws and regulations, including theCompany Law of thePeople's Republic of China(Company Law), theSecurities Law of the People's Republic of China, the
Rules Governing the Listing of Shares on the Shenzhen Stock Exchange (Revised in 2023), Guidelines onthe Bylaws of Listed Companies,Code of Corporate Governance of Listed Companies,Shenzhen StockExchange Listed Companies Self-Regulatory Guidelines No. 1 – Standardized Operation of Main BoardListed Companies. Our ultimate goal is to substantially bolster our capabilities of corporate governanceand fulfill our economic responsibilities.For more details about the Company's corporate governance structure, please refer to Section IVCorporate Governance of the2023 Annual Report.
The Board of Directors is the highest management and governancebody of the Company, and is responsible for convening the GeneralMeetings of Shareholders, reporting to the General Meetings ofShareholders on its work, implementing the resolutions of theGeneral Meetings of Shareholders, deciding the Company'sbusiness plan and investment plan, deciding the setup of internalmanagement institutions within the Company, and formulatingfundamental management policies of the Company.The Board of Supervisors supervises the Company's operationin accordance with the law and the legality of the Company'sBoard of Directors and senior management in performing theirduties, and safeguards the legitimate rights and interests ofthe Company and its shareholders.
The Board of Directors holds at least two meetings every year.To ensure well-regulated and effective operation of the Board ofDirectors, we have made it clear in ourArticles of Associationthatif a director is related to the enterprise involved in the resolutionto be made in a meeting of the Board of Directors, the directorshall not exercise his/her voting rights on the resolution, nor shallthe director act as a proxy for any other director in exercising his/her voting rights. If the amount of a transaction effected betweenthe Company and its related party exceeds RMB 30 million andrepresents more than 5% of the absolute value of the Company'saudited net assets in the most recent period, the transaction shallbe reviewed and approved by the Board of Directors and then besubmitted to the General Meeting of Shareholders for deliberation.The Company shall annually disclose the estimates of the relatedparty transaction for the year, the information of the counterparty tothe related party transaction and the estimated transaction amountin relevant announcement, as well as the reasons why the relatedparty relationship with the counterparty exists.
Procedures for Abstention andVoting by Directors with RelatedParty Relationships
Corporate Governance Structure
Audit Committee
Compensation and Performance
Appraisal CommitteeStrategy Committee
Nomination Committee
General Meetings of
Shareholders
Board of SupervisorsBoard of Directors
Senior Management
During the Reporting PeriodThe number of meetings the Boardof Directors held was
Corporate Governance
Risk ControlQuality ManagementEncourage InnovationIntelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
Composition of the Board of DirectorsSpecialized Committees of the
Board of Directors
We elect and engage directors in accordance with the election and engagement procedures as stipulated in theCompany Lawand theArticles of Association. Thenumber and composition of members of the Board of Directors comply with applicable laws, regulations, and theArticles of Association. Additionally, measures are takento prevent and mitigate potential conflicts of interest. Moreover, we follow the principles of meritocracy and diversity and consider multiple dimensions when selectingcandidates, such as gender, age, cultural background, educational background, professional knowledge and skills, main experience, and years of service. We promotescientific operation and decision-making of the Board of Directors.
Four specialized committees are set up under theBoard of Directors, including the Audit Committee,the Strategy Committee, the Nomination Committee,and the Compensation and Performance AppraisalCommittee. They are composed of directors, withthe Audit Committee and the Compensation andPerformance Appraisal Committee solely comprisedof independent directors and the chairpersonsof the Nomination Committee and the StrategyCommittee being independent directors. Thespecialized committees, accountable to the Board ofDirectors, assist the Board of Directors in corporategovernance, perform in accordance with the lawtheir duties in supervising and reviewing mattersregarding corporate governance, reporting to theBoard of Directors on a regular basis, and offerscientific and professional opinions and referencesto the Board of Directors in decision-making.
Remuneration PoliciesLuxshare Precision adopts the salary structure of"basic annual salary + long-term incentive", has put
in place a benefit sharing and risk sharing mechanismbetween shareholders, management and coretechnical (business) cadres, and formulated a series ofindividual performance evaluation indicators includingsustainable development performance to drive thefulfillment of the Company's future developmentstrategies and business goals. Meanwhile, we haveimplemented a stock option incentive plan accessibleto all staff members. This plan covers managementpersonnel, core technology (business) backboneemployees and loyal grass-roots staff meeting theincentive conditions. The Company complies withnational regulations on resignation and retirement,and provides welfare guarantees for employees inaccordance with the law.Please see Section IV Corporate Governance of the2023 Annual Reportfor details of salaries obtainedby directors, supervisors and senior managementduring the Reporting Period.
Structure of the Board of Directors MembersNamePosts
Tenure of Independent
Directors
Gender
Professional Knowledgeand Skills
Main ExperienceAge
EmployeeStatus3 years3-9 years
Above 9
years
Industry orTechnology
Legal, Financialor Accounting
TechnologyIndustry
Legal, Financialor Accounting
Below 55years old
56-65years old
66-75years old
WangLaichun
ChairmanFemale√√√√WangLaisheng
Vice ChairmanMale√√√√Li WeiDirectorMale√√√√Wang TaoDirectorMale√√√√Zhang Ying
Independent
Director
√Female√√√LiuZhonghua
IndependentDirector
√Male√√√SongYuhong
IndependentDirector
√Female√√√
At the end of the Reporting PeriodThe number of directors of theBoard of Directors was
Among them, the number ofindependent directors was
The number of femaledirectors reached
Corporate GovernanceRisk ControlQuality ManagementEncourage InnovationIntelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
During the Reporting Period
Protection of Investors' Rights and InterestsStrengthening Integrity Construction
We lay great emphasis on the maintenance of investor relations, and have refined the policy for protectingshareholders' rights and interests and provided a variety of communication channels. Our ultimate goal is tosafeguard the legitimate rights and interests and long-term returns of investors.
Pursuant to the relevant anti-corruption and anti-bribery laws and regulations, Luxshare Precision hasdeveloped a series of rules and regulations, such as theCode of Ethical Operating Procedures, theGlobalCode of Business Conduct and Ethics(COC), theEmployee Incorruptibility Management Systemand the
Procurement Business Ethics Management Systemto standardize and regulate the business conduct ofemployees, management personnel, suppliers, and other partners. During the Reporting Period, the Companydid not receive any significant penalties, nor was it required to remedy any material problems.We have set up a Business Ethics Governance Structure directly led by the Chairman and operated by itssubordinate groups under the coordination of the Discipline Committee. The Chairman receives regular reportsand is accountable to the Board.
Protection of Shareholders' Rights and InterestsWe standardize the convening and voting procedures of General Meetings of Shareholders in strict accordancewith the provisions and requirements of theCompany Law,the
Articles of Association, and theRules ofProcedures of the General Meetings of Shareholders, to give equal treatment to shareholders and ensurethat shareholders, especially minority shareholders, can fully exercise their rights. We hold General Meetings ofShareholders at least once a year, where the shareholders (including the shareholders' agents) exercise theirvoting rights corresponding to the number of voting shares they hold and are entitled to one vote for each
share.
Investor Communications
We actively encourage two-way communication with investors. By creating multiple channels for domestic andoverseas investors, including the investor relations section on our official website, hotline and email address,online results briefings, offline meetings, and platforms such as easy IR, we promptly share the latest updates onour operations and development trends to address investor concerns regarding our operations, financial position,external investments, and industry layout plans. During the Reporting Period, we held a total of 17 ESG-focusedinvestor communications, actively responding to stakeholders' inquiries regarding the Company's plans for "carbonpeaking and carbon neutrality" plans, ESG goals, and environmental management systems.
Business Ethics Governance Structure
Chairman of the Board
Discipline Committee
Pay attentionto updates onanti-corruptionregulations andpoliciesReview anti-corruption policiesand proposerevision opinionsAssist ininvestigations andcase analysisParticipate inor cooperatewith litigation orarbitrationRecover damages
Budget expensesand execute andcontrol costsOrganize,summarize, andanalyze dataCompare the price,quantity, delivery,and maintenancerecords fordevelopmentand procurementprojectsMonitor financialtransactionsCollect, organize,archive, and retrievefinancial data
Summarize, collect,statistically analyze,and manage anti-corruption dataand informationProvide andanalyze informationon suppliertransactionsIssue alertsfor abnormaltransactionsEstablish a supplierevaluation systemand bring it toimplementation
Conduct workregarding anti-corruption andintegrity-relatednews and onlineinformationOrganize anti-corruption trainingHandle routinesecretary work,including meetingorganization,informationcirculation, andfile managementUndertake anti-corruption work-related liaison andcommunication
Monitor businessrisksConduct businessethics investigationsAccept andinvestigate reports/accusationsEstablish an anti-corruption systemand optimizeinspection policiesand proceduresOrganize orcooperate ininvestigations,evidencecollection, andaccountability
InvestigationGroupLegal GroupAudit Group
Financial
Group
Publicity Group
Number of large-scaleinvestor communications
Number of small-scale communicationsby phone, email, etc
Number of inquiries andcommunications on easy IR
Corporate GovernanceRisk ControlQuality ManagementEncourage InnovationIntelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
Anti-Corruption Declaration and Reporting ManagementWhistleblower ProtectionWe prioritize internal management and integrity commitment and review throughout our business dealings. Employeesand suppliers are required to complete theEmployee's Voluntary Declarationand theSupplier's Voluntary Declaration,respectively. Additionally, as per the law, we have established management policies for corruption reporting, includingtheReporting and Whistle-blower Protection System, and standardized the reporting procedures. Furthermore,multiple reporting channels are kept open. Through the combined approach of"voluntary declaration + reporting andsupervision", we strive to prevent and control integrity risks.
We maintain a "zero tolerance" policy against anydiscrimination or retaliation directed at whistleblowers.We safeguard whistleblowers' privacy and relevantinterests. By avoiding conflicts of interest amonginvestigators and offering legal assistance, we providewhistleblowers with protection as needed. This ensuresthat whistleblowers are shielded from any potentialretaliation.
Upon receiving reports, we designate personnel to investigate cases based on factors such as the case scale andnature. In 2023, we raised the ceiling on rewards for whistleblowers, aiming to encourage more individuals toparticipate in Luxshare Precision's integrity development.
During the Reporting Period, the Company had fourcorruption incidents, as confirmed by the internalaudit department. These cases involved briberyand misappropriation of corporate funds. Theindividuals implicated have been referred to judicialauthorities or dismissed in accordance with relevantpolicies of the Company. These incidents did notpose significant risks to the Company. During theReporting Period, there were no litigation casesregarding corruption that involved the Companyor our employees.
Whistleblowing Management FlowchartReport ReceivingInvestigationCase AssignmentCase ConclusionAccepting reportsAssigning taskforces
Signing the Statementof Investigation
Deciding whether thesuspected act is true or notImplementing reward andpunishment mechanismsEvidence collectionand verification
Avoid Conflicts of Interest amongInvestigators
Require investigators to sign the
Statement of Discipline Committee andCase Investigation Personnelto ensurethey have no conflict of interest with thereported individuals
Protect the Privacy of WhistleblowersStrictly prohibit the unauthorized disclosureof whistleblower-related informationDesignate specialized auditors to handlethe reports while keeping it confidential
Seriously Investigate and HandleRetaliation IncidentsReport any instances of retaliationpromptly to the factory's top supervisorand the Director of the DisciplineCommittee once they are identifiedProvide legal assistance to whistleblowersImpose severe penalties on retaliators,including up to dismissal
During the Reporting PeriodHandling rate of the businessethics-related reports was
%
#313 Beihuan Road, Qingxi Town, Dongguan, GuangdongProvince, ChinaAddress：
13688847351WeChat：
0769-38800880Phone：
3413207068QQ：
justice@luxshare-ict.com
Email：
Reporting Channels
Corporate GovernanceRisk ControlQuality ManagementEncourage InnovationIntelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
Development of Integrity CultureWe actively conduct integrity education for all employees, managers, as well as suppliers. We have taken multiplemeasures, including signing the letter of commitment, organizing training, and implementing performance appraisals,to advocate and practice culture of integrity in all respects.
Some designated suppliers have directly signed theLetter of Integrity Commitment with the customers. Upon confirmation, it is not necessary to sign it again.
Advocating Fair CompetitionLuxshare Precision actively advocates fair competition and safeguards market order. According to theAnti-Unfair CompetitionLaw of the People's Republic of China, theAdvertising Law of the People's Republic of China, theSeveral Provisions onProhibiting Infringements upon Trade Secretsand related laws and regulations in the countries or regions of business,the Company has formulated theCode of Ethical Operating Procedures. Also, the Company has explicitly stipulated thatno employee shall use illegal means, including illegal hacking, theft, wiretapping, and bribery, to access any third party'strade secrets or other confidential information. Furthermore, employees are prohibited from publishing false or misleadingadvertising information, conspiring with peers to set prices to disrupt market order or carrying out other illegal acts.
For Employees andManagersWe incorporate theGlobal Code of BusinessConduct and Ethics(COC) into our employees'quarterly training and appraisals, and theresults of the appraisals are linked to theirperformance appraisals and promotionsWe carry out annual anti-corruption andintegrity online training for all employees,and special publicity for personnel in qualitycontrol, strategic procurement, sales andother positions. The training includes theinterpretation of corruption cases, and theCompany's reward policies and reportingchannels for anti-corruption and integrity
On a quarterly basis, we utilize the supplierrelationship management (SRM) system topushLuxshare Precision's Commitment onAnti-corruptionto suppliers and track theprogress of supplier acknowledgment. Thisensures timely and sufficient communicationwith suppliers about the Company'sprinciples for business ethicsWe ask the suppliers to sign theLetter ofIntegrity Commitment for Supplierupon theinclusion of the suppliers. By the end of theReporting Period, 98.95% of the suppliersin the database had signed theLetter ofIntegrity Commitment for Supplier
During the Reporting Period
During the last three years
During the Reporting Period
Anti-unfair competition, antitrust and antitrust-related legal proceedings occurred
Employee anti-corruption trainingcoverage rate was
%The pass rate of the COC examreached
%
The total hours of anti-corruption andbusiness ethics-related training reached
293,076Total number of business ethicstraining sessions for managers of M3or above in high-risk positions suchas procurement was
The rate of the employees who signedtheEmployee's Letter of IntegrityCommitment and Employee's Letter ofCommitment on Code of Conduct was
%
For Suppliers
Corporate Governance
Risk ControlQuality ManagementEncourage InnovationIntelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
Risk Control
Risk Identification and Management
Strategic
Risks
Corporate governance risk
Continuously improve the corporate systems, standardize the Company's production and operations, perfect the corporate governance structure, pay attention to theprotection of shareholders' rights and interests and investor relations management, and constantly enhance corporate governanceProduct competitiveness risk
The Company's products and business layout show diversified and vertical integration characteristics, comprehensively covering components, modules and systemassembly. The Company provides one-stop professional services in an all-round way, and accelerates the application of intelligent manufacturing and big data operation andmanagement platform
Operational
Risks
New technology and new productdevelopment risk
Continue to actively invest required R&D expenses in the development of new technologies and new products, introduce and cultivate new technology and new productdevelopment talents, and improve research and development capacityProduct quality risk
Optimize the quality management process, continuously promote an intelligent testing and intelligent quality management system, and improve the quality management at allstages, including supplier managementClimate change risk
Regularly monitor climate changes, set science-based targets in line with the requirements of the 1.5°C pathway, which have been officially certified and approved by theSBTi, identify climate-related risks, and regularly review short-, medium-, and long-term carbon reduction goals and action progress; the management takes countermeasuresagainst risks with high importance and urgencyLabor relations risk Improve the labor management system, set up trade unions in each production base, and actively maintain good communications with employees through multiple channels
ComplianceRisks
Business ethics risk Set up the Disciplinary Committee, perform business conduct compliance management led by the chairman, and conduct regular internal audits of business ethicsIntellectual property managementand protection risk
Establish the intellectual property management system, and investigate and confirm other companies' intellectual property in the phase of design and development
InformationSecurityRisks
Information security Expand the coverage of business continuity and the scope of factory audit and enhance the security of weak electricity system and the security of intelligent parksPrivacy protection
Organize privacy protection-related training and appraisals and require that confidential documents should be stored in lockable file cabinets, safes, or other securefurniture when not in use, with the keys entrusted to designated personnel
Luxshare Precision has improved its risk identification and assessment system, bolstered internal control management, and established specific measures to identify and address information security risks and privacy divulgencerisks. These efforts ensure comprehensive and effective control of various risks.
Risk TypeRisk ItemResponse Strategies
Corporate Governance
Risk ControlQuality ManagementEncourage InnovationIntelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
In 2023, Luxshare Precision, taking into account the needs and expectations of relevant stakeholders, formulated a business continuity management (BCM) system with the goal of"operational stability" in combination with theincident management plan (IMP) and the business continuity plan (BCP). Additionally, we developed aBusiness Continuity Management Manualbased on the ISO 22301 standard to ensure effective planning, implementation, andimprovement of the BCM system.
ISO 22301 Business Continuity Certificate
Business Continuity System
Business Continuity Management System
BCM Policy
BCMProcedures
RiskAssessment
StrategySelection
IMP/BCPTrainingTest/Drill
Maintenance/ImprovementBusinessEffect Analysis
Organization & Responsibility, Operating Mechanism, and Execution & Assessment
Stakeholders' needs and expectations
Achieve BCM goals andstable operations
BCP
IMPManpower shortage
R&D
Supply chaindisruption
Operation
Labor dispute
Manufacturing
Information
security
Supply chain
Manufacturingsites unavailable
Product delivery
Politics/Policies
Finance
Earthquake
IT
Heavy rain/
Typhoon
Business
Infectious disease
HR
Fire
Administration
After undergoing a rigorous review, theCompany was successfully certified by ISO22301 for business continuity, providing a robustguarantee for the Company's steady operations.
Corporate Governance
Risk Control
Quality ManagementEncourage InnovationIntelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
Internal Control ManagementInformation Security
Information Security Risk Management
Luxshare Precision has established a robust and effective internal control system, comprising three defenselines for risk management and internal control. The Board of Directors oversees relevant reports on internalcontrol risk data and internal control procedures, while the management is responsible for organizing riskcontrol in routine operations.
Internal AuditThe Internal Audit Department, as the Company's internal independent audit institution, coordinates with risk control,internal control, and internal audit functions to guarantee the independent performance of our regulatory duties. Itcovers critical risk areas comprehensively, including corporate social responsibility, financial activities, procurementbusiness, asset management, sales business, contract management, and information security.In 2023, Luxshare Precision expanded the audits by establishing relevant departments to comprehensively conductaudits for domestic and overseas businesses. It required an annual internal financial and non-financial audit
to be conducted at domestic and overseas factories and operational sites, with marketing and productionmanagement audited at least once every half a year. Additionally, supplier management process audits wererequired to be conducted at least once a year.
Luxshare Precision has established a well-refined information security management system encompassing more than60 internal policies and management procedures. In 2023, the Company added and updated 27 internal policiesand management measures. We also expanded the coverage of business continuity and the scope of audits in thedimension of security and further enhanced Operational Technology (OT) security and the security of intelligent parks.We have set up an Emergency Response Management Team, formulated an information security emergencyresponse plan, and specified an emergency contact list, an emergency command structure, and the emergencyresponse processes and measures. During the Reporting Period, the Company carried out business continuity drills,regular vulnerability scans, failure drills, and penetration tests for key applications, and fixed a total of 1,553 system
vulnerabilities.
FirstDefenseLine
Integrate risk management into daily work to managerisks in the actual operation of each business
Organize and promote risk management processesand activities, and build the Company's riskmanagement and internal control systemReview the effectiveness and adequacy ofthe Company's risk management and internalcontrols, and oversee the implementation ofimprovement measures
SecondDefense Line
ThirdDefense Line
Highlights of Information Security Management Measures
BusinessContinuity
Expand drills from the core processes of key business to all processes of keybusiness, covering data centers, application equipment redundancy, and emergencydrills and recovery of the failure domains across the entire link.Security Audit
Cover all factories in penetration testing, vulnerability scans, and information securityaudits and conduct regular refresh audits, completing more than 340 improvementprojects.Data Security
Expand the coverage of equipment to all areas, achieving full coverage ofconfidentiality areas without exceptions.
SecurityAdvertisingCampaign
Utilize posters and comics combined with trending topics to raise informationsecurity awareness.
InformationMasking
Grant time-limited access to external personnel to strengthen the protection of thepersonal privacy and data of vendors and customers.
Business Department
Compliance Management
Audit Department
During the Reporting Period
Total number of internal audits Luxshare Precision completed was
During the Reporting Period
Luxshare Precisionhad
incident of information leakageCorporate GovernanceRisk Control
Quality ManagementEncourage InnovationIntelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
In 2023, Luxshare Precision successfully passed theannual audit of the ISO 27001 information securitystandard certification, and Luxis Precision IntelligentManufacturing (Kunshan), one of Luxshare Precision'ssubsidiaries, was certified by the highest informationsecurity standard, Security Accreditation Scheme forUICC Production (SAS-UP).
SAS-UP Certificate
ISO 27001 Certificate
Information Security Training
Information Security Certification
We enhance employees' awareness of informationsecurity by regularly sending information security-focused publicity materials, conducting relevantsecurity drills, and reminding supervisors at all levelsto conduct information security training for theirrespective team members. During the ReportingPeriod, the Company conducted multiple trainingsessions to enhance the employees' awareness ofinformation security and confidentiality. The totaltraining hours amounted to 201,701, with a totalof 64,003 participants.
Privacy Protection
Luxshare Precision, guided by national laws and regulations and in combination with standards of customers and the industry, has formulated privacy managementmeasures such as theTrade Secret Management Procedure and the Management Procedure of Information Security of Related Parties, and well-establisheddesensitization standards and processes. Additionally, employees' behaviors are regulated as per the provisions of theEmployee Handbook and theGlobal Code ofBusiness Conduct and Ethics through regular training assessments, and we prohibit them from divulging the privacy and business information of our partners.
Privacy protection content:
Defined according to customerrequirements or the Company'sconfidentiality classification standards
Privacy protection mark:
According to the determined levelof confidentiality and confidentialityperiod, attach a confidential mark oraffix similar seal for the commercialsecret data of each unit
High-sensitivity data protection:
Detailed desensitization standardsare developed according to differentbusinesses, departments and interestedparties
Classified Management
Authorization management:
Computer users should usestandard user name, password orpassphrase, and such password orpassphrase should not be disclosedto any irrelevant or unauthorizedpersonnel and should meet strengthrequirements
Equipment repair and maintenance:
The installation, debugging andoverhaul of computer equipmentinvolving enterprise secrets shall beundertaken by internal professionaltechnical personnel, and otherpersonnel shall not disassemble andoverhaul the computer equipment
Access Permission
Secret-involving conference management:
The organizing department shall strictlydetermine the attending personnel forany secret-involving meeting. For onlinemeetings, the organizing departmentshall set up passwords and encryptedlinks, and review attendees beforehand
Access permission terms:
All parties providing various productsor services to the Company thatrequire physical or logical accessto our information assets mustsign a confidentiality agreement orconfidentiality clauses document
Privacy protection training:
Provide training and assessment onprivacy protection for employees
Personnel Management
During the Reporting PeriodLuxshare Precision had
substantiated complaints involving infringement upon customer privacy and loss ordivulgence of customer information
Privacy Protection Measures
Confidential information management:
Relevant confidential informationobtained for business purposes shallbe properly kept by the personnelinvolved, and shall not be taken tohome or any public places or disclosed
Storage of confidential information:
Confidential documents, records,disks, optical discs or other storagemedia should be placed in locked filecabinets, safes or other forms of safefurniture when not in use, and the keysare managed by designated personnel
Asset Management
Corporate GovernanceRisk ControlQuality ManagementEncourage InnovationIntelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
Quality Management
Lean Quality Management
We consistently regard product quality as the lifeline of the Company. Through the establishment of a robust qualitymanagement system, we monitor and manage the quality of products throughout their lifecycle. By fostering thequality culture, we aim to enhance all employees' sense of responsibility and mission toward product quality, thusdelivering products that exceed customer expectations.
Luxshare Precision strictly abides by theProductQuality Law of the People's Republic of Chinaand otherrelevant laws and regulations. Based on customers'audit requirements and our internal annual reviewresults, we constantly improve the quality managementsystem. We implement quality control measures on allfronts with full consideration of the product positioning,process characteristics, and sustainable developmentneeds of the factories, and have established aquality objective management system linked to theperformance of each responsible personnel. Meanwhile,the Quality Department of the Company consistentlytracks and assesses the achievement of qualityobjectives in the production bases through regularquality audits, and widely disseminates excellent qualitymanagement practices across the Company.Luxshare Precision has adopted the intelligentquality management mode of automatic productionand automatic inspection and extensively appliedmachine vision, intelligent patrol inspection and othertechnologies. This helps us rapidly analyze the qualityof products and reduce the frequency and degreeof impact of product abnormalities. Furthermore,we track the quality inspection of products throughour quality management system, enabling thecollection, recording, and visualization of qualityinformation throughout the entire productionprocess. In 2023, we updated the Luxshare QualityInformation Management platform. Through qualitycontrol methods such as recording quality data andonline quality measurement, we achieved automatedstatistics analysis and dynamic monitoring of coreprocesses throughout the product lifecycle. Thisapproach comprehensively elevated our qualitymanagement capabilities.
At the end of the Reporting Period
Case LuxcaseICT Yancheng Optimized Quality Systems and ProcessesIn 2023, LuxcaseICT Yancheng established the Production Data Acquisition (PDA) System, the MachineManagement System, the Quality Management System (QMS), and the Manufacturing Execution System(MES), forming Computer Numerical Control (CNC) automatic locking and risk material control procedures.Among the four systems, the PDA system binds the operators, the machine, and the materials, ensuring100% information traceability. The Machine Management System enables automatic locking of machinesin response to CNC alarms. Furthermore, the machine will not be able to start without verification throughPDA scanning. The MES system facilitates the locking and unlocking of risk materials, while the QMS systemprovides feedback on measurement data.Within the closed-loop management system of CNC automatic locking, we have achieved precise controland effective traceability of risk materials. Besides, we leveraged on digital tools to optimize the processingof abnormal alarms, enabling our engineering and production teams to conduct more efficient dataanalysis. This resulted in a significant reduction in the frequency of abnormal alarms. Furthermore, theimplementation of the automatic material locking and interception mechanism has led to a substantialdecrease in the quantity of risk materials selected by up to 56%. This effectively prevented non-conformingmaterials from entering the product assembly, testing, and packaging processes.
Case Lanto Kunshan Applied AI-Powered Digital Means to Enhance Process
Quality ManagementIn response to national strategies, Lanto Kunshan is promoting"Intelligent Manufacturing". It leverages onAI, Chat GPT, and digital technologies to comprehensively upgrade and improve its existing quality control,production efficiency, and product competitiveness. The aim is to achieve intelligent inspection, low-carbonand paperless operation, data digital twin, and real-time quality monitoring and improvementManagement and output of process indicators: By implementing rapid, automatic output of productiondata and visualizing it, Lanto Electronic Limited has achieved real-time and direct display of production,which facilitates early issue detection and resolution. This approach has significantly boosted productionefficiency and the timeliness of problem resolutionManagement and output of process inspection and test data: Lanto Electronic Limited has achievedsystematic integration and visualized presentation of basic quality data and made it traceable throughoutthe product manufacturing processIntelligent inspection and test: Lanto Electronic Limited is gradually replacing manual inspection withAI devices to achieve automatic inspection, thereby enhancing the accuracy and precision of productinspection and lowering the customer complaint rate
Luxshare Precision and its mainproduction bases were certified byISO 9001Production bases certified by IATF 16949Quality Management System Standard forthe Automotive Industry reached
Number of production bases certifiedby ISO 13485 Medical Devices –Quality Management Systems was
Corporate GovernanceRisk Control
Quality ManagementEncourage InnovationIntelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
Development of Quality CultureCustomer Relationship
Management
We place significant emphasis on fostering culture of quality within the Company. We have developed training programs for quality control and management based on theCompany's quality management standards, business development demands, and the competency requirements for our employees. Furthermore, we integrate quality awarenessenhancement into the onboarding, pre-employment and on-the-job phases for our employees and regularly conduct knowledge dissemination and practical training sessionscovering topics such as laws and regulations on quality management, common knowledge, and job-specific skills among our employees. Through initiatives such as specialimprovement projects, quality awareness campaigns, quality activity seasons, quality review meetings, and the annual"Quality Month" Activities, we strive to bolster our employees'zero-quality-defect abilities and instill the corporate quality culture in them.
Luxshare Precision has continuously enhanced itscustomer service system by employing diverse channelsand multiple forms of communication, thus gainingdeep insights into customer expectations regardingproduct quality. We handle customers' opinions in atimely and appropriate manner in accordance with the
Operating Procedure for Information Communication,theHandling Procedure for Customer Complaints, theOperating Procedure for Continuous Improvement
and other internal regulations, and continuouslyoptimize internal procedures and managementmeasures. We developed theHandling Procedurefor Product Sales and Return, in which the recallimplementation procedure was defined, and effectiveremedial measures were adopted for product recall,maintenance and transportation, so as to earnestlysafeguard customers' rights and interests.We conduct multi-dimensional customer surveys,including annual customer satisfaction surveys andmonthly evaluations of customer satisfaction indicators.During the Reporting Period, a total of 262 customersurveys were conducted, focusing on dimensions suchas product quality, delivery status, business services,and product pricing, to gain a thorough understandingof customer demands and expectations. Moreover, therelevant responsible business departments followed up onthe feedback, developed remediation plans, and improvedthe service standards and quality in a targeted manner, ina bid to enhance customer recognition and satisfaction. On-site Quality Awareness Enhancement of Luxshare ThermalQuality Knowledge Contest of Lanto Bozhou
On-site "Quality Month" Activities of Kunshan Factory
Case Luxshare Precision Conducts Several National "Quality Month" Activities at Multiple FactoriesIn active response to the national call for Quality Month, Luxshare Precision has consistently organized annual"Quality Month" activities. Through a range of activitiessuch as quality management knowledge contests, interactive quizzes within business units, assessments for rational improvement proposals, quality training, and qualityawareness cultivation, we aim to promote the"quality" concept among all employees and thoroughly implement our quality policy of"customer first, management withintegrity, scientific management and excellence".Corporate GovernanceRisk Control
Quality Management
Encourage InnovationIntelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
By the end of the Reporting Period
Encourage Innovation
R&D Incentives
Intellectual Property Right Management
Luxshare Precision regards innovation and R&D as a catalyst for continuous advancement. We are dedicated toconsistently refining precision electronic products and solutions, increasing our investment in R&D, and driving theexploration of cutting-edge technology. Simultaneously, we place high emphasis on protecting intellectual propertyrights to consolidate our technological edge.
Luxshare Precision values and enhances the development of its innovation system. To coordinate the Company'stechnical resources and enhance its technological competitiveness, we have established the Technology Committeecovering all major technical domains within the Company. This committee facilitates the connection of resourcesand information across different R&D sectors, enabling the sharing of technical capabilities and platforms. We haveestablished R&D centers in Shanghai, Dongguan, Shenzhen, Xi'an and USA. Through technological innovation inproducts and services, we have achieved platform-based and intelligent development, laying a solid foundation for thecontinuous development of industry technology. To enhance the Company's technological innovation capabilities, weactively engage in technical exchanges with domestic universities, suppliers, and other third parties.With theMeasures for Rewarding Patents and Business Secretsas a guarantee, we publicly commend units withoutstanding patent application performance in each quarter and reward excellent inventors, aiming to encourageand inspire employee innovation. We have defined goals for developing high-value patents and prepared plans forrelevant procedure and framework. By the end of the Reporting Period, we had completed 217 high-quality patent
proposals and submitted 94 high-quality patent applications.
Luxshare Precision places a high value on independent innovation and the protection of intellectual property rights.We strictly abide by thePatent Law of the People's Republic of China, theCopyright Law of the People's Republic ofChina, theTrademark Law of the People's Republic of China, and other laws and regulations, and have formulatedinternal management systems such as theIntellectual Property Management Manualand theIntellectual PropertyManagement and Control Procedureto standardize the Company's intellectual property right management andcontinuously refine our protection system for intellectual property rights. We adopt methods such as market patentinvestigations and internal risk investigations to control potential risks of intellectual property rights infringement. Thisallows us to strengthen our own intellectual property protection while respecting the rights of others.We conduct visits to internal R&D personnel to promote the Company's intellectual property system and the latestdevelopments, facilitating smooth progress in the Company's intellectual property protection. During the ReportingPeriod, we launched online courses on patent search and infringement comparison, and disseminated patent-relatedprecautions and key content regarding patent invalidations in business communications. Every month, we send theNotice on Respecting the Intellectual Property Rights of Others, Strictly Keeping Trade Secrets and Complying withPrevious Employers-related Obligationsto internal employees via email, aiming to raise their awareness of intellectualproperty rights protection.
Number of Patents in the Company in 2023Number of Newly AddedTotal Number
9824,491
1691,142
Number of Newly Added
Patents in the Year
1,5276,202
Total Number of Patents
Total number of cases of trademarkinvalidation and opposition LuxsharePrecision had handled was
The number of key projects within the Companyfor which patent status tracking was performedto prevent potential claims and disputes was
Corporate GovernanceRisk ControlQuality ManagementEncourage InnovationIntelligent Manufacturing
Patents for Utility ModelPatents for InventionPatents for Appearance Design
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
Intelligent Manufacturing
Intelligent Manufacturing System and Planning
With the arrival of the digitization, Luxshare Precision adheres to the"Industry 4.0" intelligent manufacturing strategy and actively advances the digital upgrade of itsproduction and operations. This effort aims to gradually enhance our intelligent manufacturing system, laying a solid foundation for sustained innovation and sustainabledevelopment in the future.
We have devised Luxshare Precision's 5-year Plan for Intelligent Manufacturing (2023-2027), focusing on expanding information sharing, automatic control, and visualizedmanagement. The goal is to gradually achieve transparent production and whole-link intelligent manufacturing of the industrial chain. In 2023, we established three keyprocesses to provide solid data support for the Company's value stream. Meanwhile, we identified improvement areas around our value stream to shore up our businesscapabilities. This approach allows us to outline a process and framework that supports the fulfillment of our value stream, ultimately facilitating the Company's sustainabledevelopment and value creation.
Developed three processes of engineering data,production processes, and production information
Implemented 32 business processes around 12production scenarios
Advanced the application of Digital Twin in production
Gradually achieved the full coverage of the WarehouseManagement System (WMS)
Note: The work for 2023 has been completed as scheduled
Establish the interconnection of the underlyingequipment
Implement the precise distribution andimporting of logistics in unmanned workshops
Establish lean standardization of productionlines
Build the value of lean talent, cultivate leantalents for the enterprise, and assist suppliersin lean coaching
Promote the application of 3D printing, graphicprocessing, machine vision and other intelligenttechnologies
Promote the application of intelligentdecision-making, intelligent productionscheduling, quality analysis and otherintelligent services
Deeply explore the artificial intelligencefield and apply machine learning in themanufacturing process
20232024
202520262027
Luxshare Precision's 5-year Plan for Intelligent Manufacturing (2023-2027)
Cooperate in the interconnected operations of materials,manufacturing and supply
Promote intelligent application for premaintenance andrepair, logistics path optimization, etc.
Corporate GovernanceRisk ControlQuality ManagementEncourage Innovation
Intelligent Manufacturing
People-oriented ApproachLeading the Green Path
The Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Way of Governance
2023 Sustainability Report
With the assistance of our Manufacturing Operation Management (MOM) platform which consists of theIntelligent Manufacturing Execution System, Luxshare Quality Information Management, and Intelligent AssetManagement System, we have included processes such as production and operation, manpower management,and safe execution in the management, thus achieving the coordination of product manufacturing parameterson all fronts, including the cost, quantity, and safety.
Intelligent Manufacturing AchievementsBuilding upon our intelligent manufacturing system, we actively promote the development of informationtechnology and continuously strengthen intelligent equipment coverage across factories to create an efficientproduction ecosystem. To propel intelligent and refined operations throughout the Company, we are committedto achieving comprehensive data connection and intelligent decision-making and driving our subsidiaries toestablish smart factories. Through comprehensive decision support and scientific data analysis and prediction,we strive to propel the digital transformation of the Company. By unshackling the constraints of traditionaloperational models, we deliver more flexible and efficient solutions for production.
Intelligent Park
Through intelligent security, system connections, and paperless practices, LuxcaseICT Yanchengeffectively reduces paper usage and enhances management efficiency.CNC Data Collection
LuxcaseICT Yancheng establishes device monitoring, efficiency analysis, execution management, toolsmanagement and other modules, achieves full coverage of CNC production scenarios, evaluates costsand efficiency, and optimizes the production management process.
5G Development
LuxcaseICT Yancheng is committed to reducing mechanical production delays and material risks,cultivating digital talent, and improving the accuracy of data applications, thereby supporting decision-making.Digital R&D and Intelligent Engineering Library
By utilizing data analysis for R&D information retrieval and interpretation, LuxcaseICT Yanchengenhances its R&D efficiency and overall work effectiveness.
Case LuxcaseICT Yancheng Drives the Application of Intelligent Information
TechnologyLuxcaseICT Yancheng has achieved efficient data processing at the source by virtualizing the datasystem architecture and employing methods such as data collection, process monitoring, andmanagement. Through a visualized monitoring system, it can objectively monitor all parameters andthe operational status, thus enabling timely warnings for equipment, controlling operational risks, andenhancing operational efficiency.
Intelligent Operation Platform
Luxshare Precision MOM Platform
Programmable LogicController
Digital Cloud Services
Test System
Warehouse ControlSystem
Surface Mounted TechnologicalEquipment
Test EquipmentManagement System
Automatic GuidedVehicle System
Vendor ManagementSystem
Manpower TransparencyManagement
Intelligent AssetManagement SystemIntelligent Total ProductiveManagement
Luxshare QualityInformation Management
KPI Digital Performance
ManagementIaaSPaaSSaaSIntelligent Manufacturing
Execution SystemElectronic StandardOperating Procedure (E-SOP)
Client System IntegrationLuxshare Project Information
Management
Corporate GovernanceRisk ControlQuality ManagementEncourage InnovationIntelligent Manufacturing
Leading the Green Path
A Low-carbon Approach toPreserving the Eco-friendly Legacy
Green and low-carbon development stands as an important directionin the new wave of industrial revolution. In response to the call for"carbon peaking by 2030 and carbon neutrality by 2060" and the goalsof "Building a Beautiful China" and "Developing a Circular Economy",Luxshare Precision remains committed to upholding its environmentallyfriendly commitments by integrating the principle of green operationsinto its production and operational activities and steadfastly advancingenergy conservation, emission reduction, and resource recyclingactions. Our comprehensive efforts aim to enhance the level ofgreen manufacturing, optimize our environmental managementsystem through concrete actions, and drive the transformationand upgrading of the industry through a profound change inmanufacturing practices. Furthermore, while fulfilling our corporateenvironmental responsibilities, we contribute to low-carbon and greendevelopment in society by focusing on the research, development, andcommercialization of clean technologies.
●Climate-related Risk and Opportunities●Zero-carbon Commitment and Carbon Management
●Opportunities in Clean Technologies●
Energy Management
●Water Resources and Wastewater Management●Waste and Circular Production
●
Hazardous Substances and Chemicals Management
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
Green and Low-carbonStrategy
EnvironmentalManagement System
Climate Risks and OpportunitiesLuxshare Precision places great importance onenvironmental management and addressing climatechange risks throughout its operational processes.We proactively align ourselves with China's "14thFive-Year Plan" and carbon neutrality goal byimplementing and enhancing our environmentalmanagement and climate risk management systems.
We vigorously assess climate-related risks and opportunities across upstream and downstream sectors and within our internal operations. Following the
Recommendations of the Task Force on Climate-related Financial Disclosures(TCFD), we have disclosed our work plans and outcomes on aspects of
"governance", "strategy", "risk management", and "metrics and targets". For details, please refer toClimate Risk and Opportunity Identification and Response
Strategy.
Honor
Over three successive years, LuxsharePrecision's exceptional management of carbonemissions across its entire value chain and itsdedication to supply chain decarbonizationhave garnered significant acclaim, resulting inconsistent improvement in rankings.
Climate Action Transparency
Index (CATI)
174 292021
17 72022
Overall Ranking
Overall Ranking
Overall Ranking
Industry Ranking
Industry Ranking
Industry Ranking
12 62023
202120222023C B A-CDP Climate Change Rating
As of the end of the Reporting Period
Total number of subsidiaries under LuxsharePrecision certified by ISO 14001 EnvironmentalManagement Systems was
Accumulative numberof subsidiariesawarded national orprovincial or municipalGreen Factory was
Factories that werenewly awardednational or provincialor municipal GreenFactory reached
Luxshare Precision strictly adheres to national laws andregulations such as theLaw of the People's Republicof China on Environmental Impact AssessmentandtheCleaner Production Promotion Law of the People'sRepublic of China. We have developed a full-fledged lineupof environmental management procedures, includingtheGroup-wide Environmental Protection ManagementProcedure, theControl Procedure of Environmental FactorIdentification and Assessment, and theOperation Procedureof Environmental Safety and Health Policy. Through thestandardization, systematization, and normalization of theseenvironmental management procedures, we promote theconstruction of an increasingly sophisticated environmentalmanagement system, dedicating ourselves to the practiceof green and environmental friendly operations.
Green and Low-carbonStrategyReduction of GreenhouseGas EmissionsWater Resource ManagementPollutant DischargeManagementGreen Product Exploration
Governance
Establishing a Task Force on Carbon Neutrality led by the Board of Directors, coordinated by theSustainable Development Advancement Center, and joined by each factory to comprehensively promoteclimate change-related matters, and ensure that all affairs are implemented in accordance with the planand relevant goals are achieved.The Strategy Committee under the Board of Directors is responsible for the deliberation of theCompany's climate change-related matters, including internal and external stakeholder communication,risk identification, target and strategy formulation, etc., to ensure the implementation of the Company'sclimate strategy.Strategy
Identifying climate risks and opportunities based on the guidelines of TCFD, in consideration of LuxsharePrecision's business operations.Conducting relevant policy review based on the identified results to understand the importance andfuture development trend of various climate risks and opportunities in the macro environment.Assessing the impact of climate change-related risks and opportunities on the Company's business,strategy and financial planning over time and under different scenarios through qualitative climatescenario analysis.
Risk Management
With identification, selection and assessment of Luxshare Precision's potential climate risks every year,risk management departments devise their countermeasures, which are subject to deliberation of theStrategy Committee under the Board of Directors, who will develop additional countermeasures ifnecessary.Categorizing various climate risks according to probability of occurrence and impact, and themanagement takes countermeasures against risks with high importance and urgency.
Metrics and Targets
Establishing science-based carbon targets in line with the 1.5°C pathway, which have been formallyvalidated and approved by the SBTi. Setting phased climate targets and committing to achieving carbon neutrality no later than 2050.
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
Carbon Reduction Targets and Action PathwayIn order to effectively mitigate global warming, Luxshare Precision took the initiative to establish carbon reductiontargets for its own operations (Scopes 1 and 2) and key value chain (Scope 3) in accordance with the SBTi 1.5°Cpathway requirements. These targets were officially validated and approved by SBTi in January 2024.With the "carbon peaking and carbon neutrality goals" as the guiding principle, and incorporating baselinecarbon inventory results and its own business development status into strategic considerations, LuxsharePrecision has formulated short, medium, and long-term goals as well as six emission reduction strategies tofulfill its climate commitments and pave the way towards a carbon-neutral future.
Carbon Neutrality Roadmap
Luxshare Precision Science-based Carbon Reduction Targets
Improve energyefficiency
Minimize fugitive
emissions
Promotelow-carbon designOptimize energy
structure
Support suppliers inreducing emissions
Create eco-friendlyoperational scenarios
Kick off energy-savingtechnology upgrades andequipment replacementsStrengthen on-site energymanagementEnhance the energy efficiencyof processesVerify energy-savingachievements through third-party validationImplement Waste HeatUtilization and Ground-sourceHeat Pumps Utilization
Install rooftop solar PV panelsEngage in green electricityprocurement Actively utilize biomass energy Gradually phase out diesel forklifts Expand energy storage projects
Replace hexafluoropropane/carbon dioxide fire extinguishersand assess the feasibility of usingpowder fire extinguishersPurchase air conditioningrefrigerants with low leakage rates
Establish a Green Supply ChainManagement (GSCM) systemProvide energy-saving andefficiency trainingPromote energy conservationand emission reduction projectsEncourage core suppliers todisclose carbon emissions data
Conduct product carbon footprintassessmentsEncourage the use of renewablematerials and recycled materials Reduce product packagingImprove product energy efficiency
Reduce high-emission travelmethods such as air travelEncourage employees touse public transportation forcommutingDigitize asset management andstrengthen equipment maintenanceto extend the equipment life Promote paperless office operationsEncourage employees to usenew energy vehicles andexpedite the installation ofcharging stations within thefactory premises
From 2022 as a base year, toreduce absolute Scope 1 and 2GHG emissions by 2032 by
From 2022 as a base year,to reduce Scope 3 GHGemissions per CNY of valueadded by 2032 by
50.4%58.1%
Phased Targets
Key Strategies
Green and Low-carbonStrategyReduction of GreenhouseGas EmissionsWater Resource ManagementPollutant DischargeManagementGreen Product Exploration
Save 250 million kWhenergy cumulatively
Clean energy utilizationrate increase to 50%
Save 100 million kWhenergy cumulatively byour suppliers
Reduce absolute Scope 1 and2 GHG emissions by 50.4%
Reduce Scope 3 GHGemissions 58.1% perCNY of value added
Achieve carbon neutralityno later than 2050
Short-term targets by 2025Science-based carbon reduction targets by 2032Long-term targets by 2050
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
Reduction of Greenhouse Gas EmissionsLuxshare Precision places great importance on energy conservation and emission reduction. We have established internal work procedures such as theOperation Procedure ofGreenhouse Gas Control,theControl Procedure of Energy Conservation and Consumption Reduction, and theGreenhouse Gas Operation Guidelinesas the basis for our work.Throughout the year, we focus on initiatives related to smart energy, energy conservation upgrades, and the use of clean energy. These initiatives are implemented across all ourfactories, driving our progress towards low-carbon operations. Additionally, we actively partake in the drafting of industry standards on carbon management to promote low-carbonpractices across the industry.
ISO 14064-1 Third-party GreenhouseGas Verification Statement for 2022
Carbon NeutralityCertificate of Ri Ming
Participation in the Drafting of Three GroupStandards, Including theCarbon Management Guidefor Computer, Communication, and Other ElectronicEquipment Manufacturing Industries
Figures for 2023 have not been verified.
The figures presented herein have been verified and differ from those disclosed within the 2022 sustainability report.
Changes in factory boundaries due to acquisitions, merger and other business activities.
Location-basedMarket-based
Scope 1 Greenhouse Gas Emissions (tCO
e)Scope 2 Greenhouse Gas Emissions (tCO
e)Greenhouse Gas Emission Intensity (Scope 1 and Scope 2)(tCO
e/RMB 1million)
Greenhouse Gas Emissions
2022
SBT Boundary
2022
SBT Boundary2023
SBT Boundary
2023
SBT Boundary2023Operational Boundary
2023Operational Boundary
Green and Low-carbonStrategy
Reduction of GreenhouseGas Emissions
Water Resource ManagementPollutant DischargeManagementGreen Product Exploration
1,632,6141,636,4251,849,052
93,646
64,43864,911
8.64
7.04
7.06
1,755,4071,568,1761,571,5141,385,530
1,479,175
671,243
675,054
606,805
2.72.71
610,143
6.91
2.89
2.91
93,646
64,438
64,911
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
Intelligent Energy ManagementUtilization of Renewable EnergyLuxshare Precision draws on its technical advantages to organically combine energy management andintelligent park management, and continues to promote the construction of IOE (Internet of Energy) intelligentenergy management platform. Through the implementation of this platform, our Kunshan Factory has achievedonline monitoring of energy system, subsystem self-control, energy consumption analysis, and other intelligentanalysis and management tasks. Kunshan Factory is scheduled to implement a Centralized Group ControlEnergy-saving System by 2024.
Renewable energy utilization is the critical pathway forLuxshare Precision to achieve its carbon neutrality goal.Through measures such as rooftop PV, direct purchase ofgreen electricity, investments in Clean Energy Fund, andprocurement of green certificates, we aim to persistentlyincrease the proportion of clean energy usage andreduce carbon dioxide emissions. In 2023, the Company
successfully elevated the ratio of clean energy utilizationto 63%, outperforming the target of"achieving a 50%clean energy utilization rate by 2025". As at the end ofthe Reporting Period, overall installed rooftop photovoltaiccapacity reached 85MW.In addition, we continued to participate in green energyfund investment to support high-quality clean energy projectdevelopment. During the Reporting Period, the Companygained green rights of 43,354MWh through investing inthe green energy fund.
Features of IOE Intelligent Energy Management Platform
Statement of GreenCertificate ProcurementEnergy Analysis
Pinpointing opportunities for optimizing energyefficiency in water, electricity, and gas usage byanalyzing resource utilization across various floors andbusiness units, taking account of peak, intermediate,and off-peak consumption patterns
Group ControlEnergy Saving
Real-time monitoring of data from air compressionstations and air conditioning stations, using AI algorithmsto calculate the optimal operating combinations andreduce energy consumption
WarehouseManagementPaperless management from storage to delivery,effectively improving warehousing efficiency andreducing paper usageDetailed records of equipment operation, maintenance,and repairs enable comprehensive and traceablerecord-keeping
EquipmentRecording
Alarm and WorkOrder
Reading equipment alarm information and promptlyalerting management personnel, providinginformation on faulty equipment and potential causesfor repair; allowing quick access to surveillancefootage to confirm on-site conditions, thus ensuringoperational safety
Access Control
Ensuring factory security through real-time videopreview, historical video playback, access controlsystems, and coordinated security measures withoperational and maintenance procedures
Total solar PV power
generated
78,656 MWh
The ratio of clean energy
utilization
%
Total reduced greenhouse gas
emissions1,010,366 tCO
e
EquipmentControl Bin
Displaying the operating status and importantparameters of power distribution room, air compressorsystem, waste heat recovery system, and constanttemperature and humidity air conditioning systems ona single screenOne-click automatic inspection, automatic presentationand export of equipment status and parameters,eliminating the need for on-site inspections3D Visualization
Directly purchased greenelectricity755,797 MWh
Procurement of greencertificate788,326 MWh
Green and Low-carbonStrategyReduction of GreenhouseGas EmissionsWater Resource ManagementPollutant DischargeManagementGreen Product Exploration
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
Case Distributed Photovoltaic Power Generation
Project at Luxshare Smart ManufacturingIn response to the Company's call for energy conservation and emissionsreduction and in a drive to optimize the energy structure in its factory, LuxshareSmart Manufacturing has allocated substantial resources to establish a rooftopphotovoltaic base, utilizing solar energy to provide electricity for its productionlines. As of the end of the Reporting Period, a total of 7 MW installed capacityhas been completed, with an average annual power generation of 7.1 millionkilowatt-hours.
We have implemented an energy storage system to supplement powersupply gaps during peak electricity demands, thereby optimizing demandmanagement and achieving"peak load shaving". This initiative is expectedto further augment the Company's capacity for integrating and utilizingrenewable energy sources in the future. During the Reporting Period, LuxshareSmart Manufacturing completed the construction of one energy storageproject, which is projected to deliver an annual storage and discharge capacityof 2,400 megawatt-hours, cumulatively amounting to 48,000 megawatt-hours over a 20-year lifespan.
Case Implementation of Diverse Energy-Saving
Optimization Measures and Energy-SavingVerification at Kunshan FactoryThrough enhancements in on-site management, upgrades to wastedischarge systems, optimizations of air compressor systems, andretrofits to air conditioning systems, Kunshan Factory has seena substantial reduction in its electricity consumption. Moreover,Kunshan Factory has engaged a third-party professional institution,meticulously adhering to internationally recognized standards such asthe International Performance Measurement and Verification Protocol(IPMVP) and China's G30256-2013 Technical Requirements for EnergySaving Measurement and Verification, to conduct calculations andvalidations on its energy-saving renovation projects. As a result ofstringent assessment, Kunshan Factory has successfully obtaineda verified energy savings report to demonstrate the reliability andeffectiveness of its energy-saving initiatives.
Low-Carbon and Energy-saving Retrofits
Each year, Luxshare Precision establishes comprehensive corporate-wide energy conservation objectives complemented by improvement plans,mandating that each factory sets corresponding targets based on their specific operational circumstances and maintains diligent monitoring of theirprogress toward these targets. In addition, regular energy-saving retrofits are carried out across workshops, harnessing the synergistic optimizationof both management practices and technological advancements to markedly diminish energy consumption and greenhouse gas emissions.
Electricity saving rate = (Electricity saving in the current Reporting Period/total Electricity consumption in the previous Reporting Period) *100%. This indicator represents theenergy saving opportunities identified by the Company during the Reporting Period and provides an estimate of future energy saving potential.
Distributed Photovoltaic Project of Luxshare Smart Manufacturing
Energy Storage Power Station of Luxshare Smart Manufacturing
Energy-saving Verification Report of Kunshan Factory
Energy Conservation Transformation Projects in 2023
Number of
Projects
Annual PowerConservation
(MWh)
Annual GreenhouseGas Emission Reduction
(tCO
e)AirCompressorSystem
5829,06418,117Central AirConditioning
5637,381 23,303Exhaust Fanin Factories
92,5921,614Life andOffice PowerConsumption
607,7414,837ProductionPowerConsumption
10167,11541,821
Total284143,89389,692
Green and Low-carbonStrategy
Reduction of GreenhouseGas Emissions
Water Resource ManagementPollutant DischargeManagementGreen Product Exploration
As of the end of the ReportingPeriod
During the ReportingPeriodThe number of the Company'ssubsidiaries that had obtainedISO 50001 energy managementsystem certification was
Electricity saving rate
reached approximately
5.1
%
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
In managing the utilization of water resources
inour daily operations, we adhere rigorously to alllocal regulations governing water usage, waterrecycling, and wastewater discharge quality acrossour operational locations. Building upon theprevious year's actual water consumption and ourcorporate development strategy, we devise annualwater resource management action plans. Westrictly regulate wastewater discharge within ourfactories and consistently pursue water recyclingand zero-waste-water-discharge projects to reducewastewater discharge and minimize our impact onsurrounding aquatic ecosystems.
Water Resource Management
Water Resource Utilization
The Company has established theOperational Procedures for Sustainable Water Managementto strengthenwater resource management, in addition to advancing towards obtaining certificate of AWS International WaterStewardship Standard. Adhering to AWS management requirements, each subsidiary gathers relevant waterdata to analyze risks and opportunities related to water usage, and then integrates the results with strategicwater resource planning, setting five dimensions of sustainable water management objectives and proactivelyimplementing key management initiatives to enhance water utilization efficiency.
We continuously monitor and account for productionand domestic water intake, drainage, and overallwater balance, tracking usage patterns to minimizewastage in our factories. Some factories haveadopted intelligent water management systems topromptly identify and address irregularities in wateruse. Across all factories, we promote water-savinginitiatives by transforming to water-efficient fixtures,repurposing rainwater for landscaping irrigation,and implementing reclaimed water reuse schemes,thereby maximizing the reuse of water resources.During the Reporting Period, major productionbases of Luxshare Precision achieved an impressivereclaimed water usage rate of 85.88%.
Luxshare Precision primarily draws its water resources from municipal supply systems, which are utilized for various purposes includ-ing domestic consumption, indirect cooling of refrigeration equipment integral to the manufacturing process, and a limited quantityof other production-related applications that involve direct integration into the production lines.
Remote monitoringmanagement
Intelligent Water
Management
System
Features of Intelligent WaterManagement System
InitiativesObjectives
System operation
management
EquipmentmanagementEnergy consumption
cost managementWater quality laboratory
managementSafe production
managementOperation assessment
managementOffice management
Elevating and refining water resource managementstandards and capabilities
Boosting employee awareness on water conservation
Conducting eco-friendly energy-saving campaignsto raise environmental consciousness amongemployees and the public
Fostering green supply chain management
Aligning with AWS requirements and enhancingwater resource management practices to obtainAWS certification
Posting water-saving signage
Posting related promotional content
Encouraging supplier disclosure of data and removalof non-compliance records
Regularly cleaning water bodies and assistingrelevant departments in water management efforts
Improving cleanliness and aesthetics of importantwater-related areas
Developing water-saving technologies at the sourceand promoting water reuse in production
Enhancing water resource utilization rate, reducingwithdrawal and consumption
Controlling water consumption per unit of product
Regularly monitoring water quality
Ensuring compliance with effluent water qualitystandards
Frequency of monitoring effluent water quality
Guaranteeing adequate WASH provisions for employees
Enhancing WASH provisions for visitors
Continuously providing suitable WASH facilities for employees
Adding visitor hygiene amenities
Green and Low-carbonStrategyReduction of GreenhouseGas Emissions
Water Resource Management
Pollutant DischargeManagementGreen Product Exploration
Important Water-Related Areas
Water Balance
Water Quality
Water, Sanitation, and Hygiene (WASH)
Water Management
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
For details of the measures taken by piloting factories in the field of sustainable water management in 2023and their specific quantitative performances, please refer tothe Announcement - 2023 Lanto ElectronicSustainable Water Management Planandthe Announcement - 2023 Luxshare Electronic TechnologySustainable Water Management Plan.During the Reporting Period, 2 subsidiaries of Luxshare Precision have obtained the AWS Gold Level
Certificates, and 4 subsidiaries of Luxshare Precision have initiated relevant certification processes with theambition to attain the AWS Gold Level Certificate by 2024.
In a systematic effort to identify potential water-related risks across our factories, we assess the operationalconditions at each factory annually and utilize the"Aqueduct" water risk tool developed by the World ResourcesInstitute to systematically identify and address enterprise-level water risks. Based on these risk assessments, wetailor water-saving strategies specific to the needs of individual factory in different operational locations, therebyeffectively enhancing water use efficiency.
| 认证证书 | |||
| 标准 | |||
or Water Stewardship (AWS)
| 国国 |
际
可
| 可 |
持
续
| 续 |
水
管
| 管 |
理
标
| 标 |
准
（
| （2.0 |
版
）
| ） | ||
| AWS |
注册号
| AWS |
-000521
| 兹代表WSAS证明 | ||
| 证书持有者 | ||
:
| 立立 |
讯
电
| 电 |
子
科
| 科 |
技
（
| （ |
昆
山
| 山 |
）
有
| 有 |
限
公
| 公 |
司
| 注册地址： |
江苏省昆山市锦溪镇锦昌路158号
昆山市锦溪镇锦东路318号
| 昆山市锦溪镇锦东路288号 | ||
昆山市锦溪镇百胜路486号
昆山市锦溪镇锦裕路西侧88号
| 认证 |
等级
| : | 国际可持续水管理 |
标准黄金级认证
| 所在流域: | 吴淞江流域 | |
| 行业类别: | 电子与半导体制造 | |
| 认证 |
范围:
一场址
| 通过 |
审核，证明场址符合国际可持续水管理标准(2.0版)
| 有效期: | 证书有效期从2023-07-03 至 2026-07-02. 此证书需经过符合要求的监督审核保持有效。 |
| 2023-07-18 | |||||
| 莱茵检测认证服务（中国）有限公司 中华人民共和国北京市北京经济技术开发区荣华南路 15 | |||||
号院
号楼
| 3 |
楼
室、
| 12 |
层
室，
| 100176 |
| https://watersas.org www.a4ws.org www.tuv.com |
Lanto Kunshan and Luxshare Electronic Kunshan Awarded the First-ever Chinese-language
AWS Gold Level Certification
Publicity to and Cooperation with StakeholdersManagement Effeciency of Sustainble Water ManagementWith unwavering attention to the needs and suggestions of our stakeholders regarding water resourcemanagement, we employ multifaceted strategies such as training sessions, collaborative exchanges, andcomprehensive water usage surveys to jointly address water stress and associated risks alongside our stakeholders.Supplier/Service Provider Analysis and Survey
Water-saving Promotion andEmployee Awareness ImprovementImplementation of Water ResourceRegulatory Requirements
Develop theCitizen's Guide to WaterConservation PracticesImplement company-wide water-savingawareness campaigns through the useof water conservation labels, promotionalposters, and educational articles on ourofficial social media channels Provide WASH training to employees
Collaborative Efforts with River Administration:
Over 30 Joint River Cleanup Campaigns Conducted
Promotional Activities HighlightingWorld Water Day and China Water
Week
We conduct water consumption analysis and surveys for suppliers/service providers to our pilotfactories, mandating annual water quality reports from those whose annual water consumption exceeds10,000 tons.Carry out AWS certification promotion activities to discuss sustainable water management cooperationissues, and encourage suppliers/service providers of our pilot subsidiaries to participate in AWScertificationPush suppliers to remove water-related violation records on the Institute of Public & EnvironmentalAffairs (IPE) -- in 2023, Luxshare Precision collaborated with two of our suppliers to remove their water-related violation records on the website of IPE.
Actively cooperate with the local governmentin water usage declaration, water balance test,industrial water reuse survey and other workMaintain an in-house water quality testinglaboratory that conducts routine waterquality tests Attend water conservation employee trainingWork with relevant departments to protectkey water-related areas
Green and Low-carbonStrategyReduction of GreenhouseGas EmissionsWater Resource Management
Pollutant DischargeManagementGreen Product Exploration
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
Wastewater ManagementIn strict adherence to theWater Pollution Prevention and Control Law of the People's Republic of Chinaandother relevant laws and regulations, Luxshare Precision has formulated theOperating Procedure of WasteWater, Waste Gas and Noise Controlto regulate wastewater management across all production sites, ensuringdischarge water quality meets national and local standards. To mitigate wastewater generation and pollutantemissions, we relentlessly enhance daily management practices and continuously upgrade our water treatmenttechnologies at various production bases to minimize our impact on receiving waters.
Moreover, we mandate that each factory undergoes at least one wastewater discharge monitoring per year byexternal agencies to continually evaluate the performance and effectiveness of our wastewater managementtechnologies and infrastructures.
Operational Maintenance
Ensuring normal and stable operation of wastewater treatment facilities, eliminating any leakage orother malfunctions.
Persistent advancement in wastewater treatment processes, embracing technologies such as reverseosmosis concentrate recycling, nitrogen-free neutralizers, etc.
Introduction of state-of-the-art water treatment equipment including heavy metal wastewatertreatment devices, phosphorus removal systems, and integrated wastewater treatment systems.
Wastewater Reuse
Acid Waste Reuse
Wastewater processed utilizing ultraviolet sterilization systemand Polymer Film Evaporation Equipment (PFET) heavy metalwastewater treatment equipment is reused twice within theproduction lines, while a small portion of the concentratedwater, after evaporation treatment, is entrusted to qualifiedthird-party organizations for disposal of the resultingcrystalline salts. In 2023, Luxcase Factory significantly curtailedindustrial wastewater discharge and achieved a water reuserate exceeding 99% on its anode line.In 2023, Luxcase Factory completed the construction of acidreuse infrastructure for an anode line. Leveraging anionresin exchange technology in its acid purification apparatus,it attained a more than 98% reuse rate of sulfuric acid andphosphoric acid. Furthermore, through trial implementationof processes such as Dual Purification Unit (DPU) filtration foraluminum and trace metal elements, as well as evaporatorconcentration, it has achieved a recycling rate of over 95% forchemical polishing acids.
Acid Recovery Equipment and System
Case｜Zero Discharge of Industrial Wastewater Pollutants at Luxcase FactoryLuxcase Factory has been committed to a zero discharge initiative since 2019 for industrial wastewaterpollutants. By consistently adopting advanced wastewater treatment technologies, it aims to enhance theoverall recycling rates of industrial wastewater and waste acids.
Case｜ Recycling of Reclaimed Water from Cutting and Grinding Processes at
Luxshare Electronic KunshanIn recognition of its superior conductivity, ultra-pure water used for cutting and grinding is being effectivelyrecycled by Luxshare Electronic Kunshan, who redirects wastewater from thinning and slicing processesback into the reverse osmosis system, replacing tap water as the feed water source in production lineswith an impressive 95% reuse rate, thereby significantly reducing freshwater consumption.
Wastewater Management Initiatives
As of the end of the Reporting PeriodThe total number of factories generatingindustrial wastewater in Luxshare Precision was
The number of factories achieving zerodischarge of industrial wastewater was
Process Upgrades
Equipment EnhancementGreen and Low-carbonStrategyReduction of GreenhouseGas Emissions
Water Resource ManagementPollutant DischargeManagementGreen Product Exploration
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
Solid waste generated in the production processshall be identified and classified in accordancewith theNational Hazardous Waste Directory
and theSolid Waste Identification Standard (GB-34330) and other national standards.
Storage facilities shall be built in accordance withthePollution Control Standard for Storage andDisposal Sites of General Industrial Solid Wastes(GB-18599) and thePollution Control Standard forHazardous Waste Storage(GB-18597) to preventwaste from causing secondary pollution to thesurrounding environment, soil and groundwater.
Pollutant Discharge Management
Luxshare Precision persistently advances pollution discharge/emission management environmental system,rigorously controlling pollutant discharges, optimizing resource utilization, and diminishing the environmentalimpact of its production and operational activities. We continuously escalate investments in pollution preventionand control technologies and projects to boost the efficient recycling of resources, thus steadily transitioningtowards green manufacturing.
Non-hazardous waste
14,309t
Domestic waste
24,082t
Hazardous waste
114,618
t
Waste Management
In strict adherence to theLaw of the People's Republic of China on the Prevention and Control ofEnvironmental Pollution Caused by Solid Waste, we have formulated theWaste Control Operating Procedure
outlining the guiding principle of"categorization, centralized storage, unified treatment" for waste management.This comprehensive approach involves classifying, storing, compliantly disposing, and recording all productionwaste to minimize its environmental impact.In 2023, we introduced an electronic information management system for waste management developedin reference to UL 2799 standards. This system captures details including waste types, weight, conversionmethods, disposal vendors, and processing procedures. All our factories utilize this system to collect, makestatistics and analyze waste-related data, gaining insight into waste generation and disposal outcomes, therebyachieving substantial enhancements in waste management efficiency.
ClassificationStorage
Compliant disposalRecordIn strict accordance with the requirements of theEnvironmental Protection Bureau, solid wasteshall be disposed by a qualified third party.
All factories are required to set up solid wasterecording account and record detailed informationsuch as waste category, production volume,transportation mode and treatment mode.
Total amount of recycled
Total amount of reusedOverall reduced amountTotal amount of waste subject to incineration
(with energy recovery)Total amount of waste subject to compostingTotal amount of waste subject to anaerobic digestion1,285 t3,150 t11,642 t
15,613 t
27,614 t
93,705 t
Wasteconversionand disposal
During the Reporting Period, Luxshare Precision's waste management data were as follows:
Zero Waste to Landfill
We actively promote an advanced waste management philosophy of zero landfill across all our factories,setting ambitious three-year targets to achieve the average waste transformation rate of 85.5% by 2023, 88%by 2024, and 90% by 2025. We conduct regular monitoring of waste management practices at each factory,implementing targeted improvements accordingly. While striving to reuse internally and downsize the usage ofmaterials such as plastics, metals, paper cartons, coils, and pallets, we also encourage waste treatment serviceproviders to recycle reusable waste and dispose of non-recyclables through energy-recovering incineration,in a bid to advance waste minimization, recycling, and harmless disposal. During the Reporting Period, theCompany achieved an average waste transformation rate of 86.06%.
Overall Procedures of Waste ManagementGreen and Low-carbonStrategyReduction of GreenhouseGas EmissionsWater Resource Management
Pollutant DischargeManagement
Green Product Exploration
Total wastegeneration
153,009
t
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
We adhere rigorously to theAtmospheric Pollution Prevention and Control Law of thePeople's Republic of Chinaand other national laws and regulations. Each year, weconduct regular environmental monitoring audits across all our factories to ensurecompliance regarding emissions of nitrogen oxides, sulfur oxides, particulate matter,and other air pollutants. Our factories are equipped with online data systems todynamically monitor air quality, and we implement measures such as activated carbonadsorption upgrades for Volatile Organic Compounds (VOCs) and the adoption ofelectric forklifts to minimize emissions of waste gases during production and operation.Moreover, we stringently manage raw materials to guarantee the exclusion of ozone-depleting substances as required by laws and regulations.
Waste Disposal Method
Waste to energy(WTE)
Not EncouragedReductionReuseRecyclingIncineration
without energy
recoveryAnaerobicdigestion
CompostingBiofuel
Landfill
Wastes NotConvertedConversion PathwaysOutside the FactoryConversion Pathways
Within the Factory
UL Solutions is pleasedto present this letter to:
Congratulations to the company for having achieved:
Environmental Claim Validation
for:
Dongguan Luxshare Precision Industry Co., Ltd. (Tiesong Campus)NO. 313 Beihuan Road, Qingxi Town, Dongguan, Guangdong, 523650, China
This facility has achieved Zero Waste to Landfill Platinum Operations, 100% diversion, with10% Thermal Processing with Energy Recovery as per Environmental Claim ValidationProcedure (ECVP) for Zero Waste Classifications, UL 2799A First Edition per UL Project4790711606
This achievement letter is not a product certificate, and it does not indicate the current statusof a product or facility’s certification/Validation. Please confirm the current status of acertification/Validation by searching the UL SPOT? Product Database at UL.com/spot or byemailing LST.ULE.ProgramAdministration@ul.com.
08/30/2023 – 08/30/2024
Validation period Josh Warren
VP&GM, Retail & Consumer Products
? 2023 UL LLC. All rights reserved.
ENVIRONMENTAL CLAIM VALIDATION SUMMARY
ENVIRONMENTAL CLAIM VALIDATION SUMMARYRi-Shan Computer Accessories (JiaShan) Co., Ltd.
| Ri-Shan Computer Accessories (JiaShan) Co., Ltd. |
| Ri-Shan Computer Accessories (JiaShan) Co., Ltd. |
| Report Number: |
Validation Period:
| Validation Period: |
| 30 May 2023 - 30 May 2024 |
Claim:
Claim:
Method:
Method:
Facility:
Facility:
Ri-Shan Computer Accessories (JiaShan) Co., Ltd. has achieved Zero Waste to Landfill Platinum Operations, 100%diversion, with 10% Thermal Processing with Energy Recovery.
Ri-Shan Computer Accessories (JiaShan) Co., Ltd. has achieved Zero Waste to Landfill Platinum Operations, 100%diversion, with 10% Thermal Processing with Energy Recovery.Environmental Claim Validation Procedure (ECVP) for Zero Waste Classifications, UL 2799A First Edition, Dated July20, 2018
Environmental Claim Validation Procedure (ECVP) for Zero Waste Classifications, UL 2799A First Edition, Dated July20, 2018No.95 Changjiang Road, Huimin Sub-District, Jiashan County, Jiaxing 314112, Zhejiang, China
No.95 Changjiang Road, Huimin Sub-District, Jiashan County, Jiaxing 314112, Zhejiang, China304399-4160
304399-4160
? 2019 UL ? 2211 Newmarket Parkway, Marietta, GA 30067-9399 USA ? T: 888.485.4733 ? F: 770.980.0072 ? W: ul.com/environment
UL 2799 Zero Waste to Landfill Validation Platinum Grade Certificates Received by
Jia Shan Ri Shan and Luxshare Dongguan in 2023
Case｜Cable Label Optimization at Huizhou Time Interconnect
Case｜Reducing the Use of Packaging Stretch Films at Luxcase Factory
In a pioneering move that maintains the efficiency of cable assembly installation, Huizhou Time Interconnect useslabel printers to print labels onto shrink tubes, thereby achieving an integrated design of labels and shrink tubes,streamlining the process and downsizing the use of paper labels. In 2023, this innovative approach led to an annualsaving of approximately 100,000 paper labels for Huizhou Time Interconnect.
While ensuring product stability during transportation, Luxcase Factory implements eco-friendly designs through theuse of thinner, longer stretch films, which increase the number of pallets per roll from 20 to 35, effectively reducingplastic consumption and decreasing waste generation at its source.Air Pollutant Emission Management
Production Factory
Case｜Upgrading Exhaust Gas Treatment Facilities at Jia Shan Ri ShanJia Shan Ri Shan undertook a significant upgrade of itsexhaust gas treatment facilities for injection moldingand CNC material removal processes, i.e., renovation forsecondary activated carbon treatment units. By upgradingthe activated carbon units and replacing with reusablegranular activated carbon, Jia Shan Ri Shan effectivelyreduced VOCs exhaust gas emissions.
22.2%
After upgrading ofthe activated carbonunits, the exhaust gastreatment efficiencywas improved by
27.5%
As of the end of the Reporting Period
A cumulative total of Luxshare Precisionsubsidiaries awarded UL 2799 ZeroWaste to Landfill validation was
During the Reporting PeriodThe total volume of exhaustgas emissions was
314.24
t
This yearThe number of subsidiariesreceiving Platinum ratings forthe first time was
After replacementof the fillers,the exhaust gastreatment efficiencywas improved by
Green and Low-carbonStrategyReduction of GreenhouseGas EmissionsWater Resource Management
Pollutant DischargeManagement
Green Product Exploration
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
Green Product Exploration
Green Chemicals
Lifecycle Management of Hazardous Substances
Within the framework of an increasingly popular global consensus on environmental protection, Luxshare Precisionunderstands that green products are not only a necessary option for the development of manufacturing in thefuture, but also a vital tool for promoting corporate green transformation and upholding social conscience. Wevigorously promote comprehensive lifecycle management of chemical substances, adhering to the core principlesof resource conservation and environmental protection, while actively expanding into clean technology domains tojointly forge a sustainable future.Luxshare Precision places significant emphasis on the potential adverse impacts of chemicals on both theenvironment and human health. We proactively implement green chemical projects, working with suppliers tocomprehensively manage chemical substances involved in production processes and product compositions,striving to minimize associated risks.We continuously monitor the latest domestic and international regulations related to hazardous substancemanagement, as well as our clients' most up-to-date restrictions on hazardous materials. This includes adherence toconventions such as theStockholm Convention on Persistent Organic Pollutants,theRegulation on Registration,Evaluation, Authorization and Restriction of Chemicals (REACH) andits list of Substances of Very High Concern,theDirectives 2011/65/EU and 2015/863/EU on Restriction of the Use of Certain Hazardous Substances inElectrical and Electronic Equipment and the Revision, Regulation (EU)2019/1021 on Persistent Organic Pollutants(POPs), Directive 2002/96/EC on Waste Electrical and Electronic Equipment (WEEE), California Safe DrinkingWater and Toxic Enforcement Act of 1986,and China's Volatile Organic Compounds (VOCs) standards. Theseefforts enable us to thoroughly identify and control hazardous substances within our processes and products. Wehave updated ourManagement Standard for Restricted Substances of Materials and Finished Productsto Version 35,which stipulated a total of 77 prohibited substances, 264 restricted substances and 76 declared substances.
List of Prohibited and Restricted Substances Managed Ahead of Legal RequirementsRestricted SubstanceRegulatory Requirement
Date of OfficialImplementation
Internal ManagementRequirement
Date of InternalImplementationMedium-chain ChlorinatedParaffins (MCCPs)
Proposed restriction underREACH Annex XVII
Not yet officiallycontrolled
Included in the restricted list2014
Lead and its compoundsCadmium and itscompoundsMercury and itscompounds
Regulation (EU) 2023/1542
In batteries:
The concentration of lead andits compounds does not exceed
0.01%, and that of cadmium
and its compounds shall notexceed 0.002%, and that ofmercury shall not exceed
0.0005%.
August 18, 2024
In batteries:
The concentration of lead andits compounds shall be less than
0.004%, and that of cadmium
and its compounds shall notexceed 0.001%.If there's any accidentalpresence of mercury in batteries,it shall be no more than 0.0001%by concentration.
2019
Lead and its compounds
Regulation (EU) 2023/923
Concentration of lead is less than
0.1% in polymers or copolymers
of vinyl chloride (PVC)
November 29,2024
Concentration of lead in organicmaterials (e.g., plastics, rubbers,inks, coatings, paints) is less than
0.003%
2014Hexabromocyclododecane(HBCDD)
EU POPs Regulation
Concentration is no more than100 ppm
Scheduled forcontrol
Included in the restricted list2014N,N-Dimethylformamide(DMFA)
REACH Annex XVII, Entry 76
Concentration in substances ormixtures is no more than 0.3%
December 12,2023
Completely banned2022C9-C14 PerfluorocarboxylicAcids (C9-C14 PFCAs) andtheir saltsC9-C14 PFCAs-relatedsubstances
REACH Annex XVII, Entry 68
Total concentration of C9-C14PFCAs and their salts in thesubstance, the mixture, or thearticle is below 25 ppbTotal concentration of C9-C14PFCAs-related substances isbelow 260 ppb.
February 25,2023
Completely bannedJanuary 1, 2023
Throughout the updating process of theManagement Standard for Restricted Substances of Materials andFinished Products, we consistently anticipate potential risk factors by developing proactive strategies formanaging potential harmful chemical substances before they are formally regulated under relevant laws andregulations. In doing so, we exceed legal requirements by preemptively incorporating certain chemicals intoour internal prohibited and restricted uses policy.
Newly Added Prohibited and Restricted Chemical Substances
Green and Low-carbonStrategyReduction of GreenhouseGas EmissionsWater Resource ManagementPollutant DischargeManagement
Green Product Exploration
Prohibited SubstancesRestricted Substances
Endocrine disrupting chemicals (EDCs)
4-tert-Butylphenol
Allergenic dyesBrominated Flame Retardants (BFRs)
Hydrogen fluoride (HF)
Dechlorane Plus
(2-benzothiazolylthio)methyl thiocyanate
2-n-octyl-4-isothiazolin-3-one4-Chloro-3-methylphenol
Ethyl ethoxyacetate
Acrylamide
SiloxanesCopper (Cu)
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
In adherence to the IECQ Hazardous Substance Process Management (HSPM) requirements, we have established a comprehensive lifecycle management system for hazardous substances across our products, encompassingmeticulous risk identification and tiered control measures for chemical substances inherent to both the products and manufacturing processes. During the Reporting Period, a total of 22 subsidiaries attained the QC 080000hazardous substances process management system certification.
Regarding the management of hazardous chemicals, Luxshare Prevision rigorously adheres to pertinentdomestic laws and regulations such as theRegulation of the People's Republic of China on the Administrationof Chemicals Subject to Supervision and Controland theRegulations on the Safety Management of HazardousChemicals.We have also formulated internal management policies such as theChemical Control OperatingProceduresto systematically regulate the handling of chemicals throughout the procurement, transportation,warehousing, storage, usage, emergency response, and waste disposal processes.Through the EHS Information System, we conduct rigorous approvals for chemical purchase requests andthe introduction of new chemicals within the factories, and control the procurement and storage of restrictedsubstances, highly toxic chemicals and chemicals with serious occupational health and safety hazards in strictaccordance with laws and regulations in the locations of operation. We stringently regulate storage conditions,usage protocols, and operator guidelines for these chemicals, implementing end-to-end process management.
Hazardous Substance Management Process
Whole Process Management of Hazardous Chemical Substances in Products
Product DevelopmentMaterial ProcurementIncoming Material InspectionProcess ControlFinished Product AssuranceThe Company abides by "Principles ofGreen Chemistry" and follows guidelinessuch as theGeneral Principles forEcological Design of Productsand the
Management Standards of RestrictedSubstances of Materials and FinishedProducts. From feasibility analysisthrough product design stages,we holistically integrate lifecycleenvironmental impact assessmentsinto our considerations. We diligentlyevaluate potential health andenvironmental implications of productsduring the usage and disposal phases,thereby actively adopting harmlesschemical compositions and echoingthe hazardous substance free (HSF)philosophy. Also, our product designspecifications and material lists clearlycommunicate stringent environmentalstandards of our organization.
Suppliers are mandated to disclosefull material compositions via theGreen Product (GP) module of theGSCM system, in addition to furnishingnecessary test reports. Our dedicatedenvironmental specialists meticulouslyreview these submissions to ensuresuppliers consistently meet ourhigh bar for hazardous substancemanagement, thus safeguardingagainst non-compliant materials at thesource. The GP module of the GSCMsystem has achieved cross-functionalintegration, enabling suppliers tolink multiple subsidiaries with oneaccount, promoting data sharingamong subsidiaries and consequentlyenhancing overall managementefficiency. For more informationon Luxshare Precision's suppliermanagement regarding hazardoussubstances, please refer to the"GreenSupply Chain" section.
Luxshare Precision identifies andmanages the risks of hazardoussubstances in raw and auxiliarymaterials using a tiered approach.Based on material properties and risklevels, we tailor testing items andfrequencies accordingly, operatingunder a strict ‘non-conformance equalsnon-acceptance' policy at the incominginspection stage. To proactively preventenvironmental anomalies, our primaryproduction bases' laboratory systemnow incorporates Statistical ProcessControl to monitor concentrationfluctuations across different batchesof the same material, generate trendcharts, and automatically trigger alertsfor values exceeding set limits, therebyimproving the consistency and controlover incoming materials.
Prior to shipment, we conduct randomsampling inspections on finishedproducts, verifying their compliancebefore affixing environmental labelsand providing material compositionstatements and test reports as perregulations and customer requirements.This ensures conformity with clients'standards and relevant legal statutes.Moreover, where necessary, wedisclose product chemical compositionsand potential impact assessmentsthrough product labels, client portals,International Material Data System,China Automotive Material Data System,and other third-party platforms.
In order to prevent cross-contaminationduring manufacturing processes, ourassessment takes into account thepossibility of dangerous compoundsin machinery and equipment, tools,and auxiliary materials that may comeinto direct or indirect contact with theproduct during its manufacture beforewe adopt corresponding preventivemeasures. We regularly test the harmfulsubstances in auxiliary materials andsemi-finished products to avoid thepollution of harmful substances in themanufacturing process.Green and Low-carbonStrategyReduction of GreenhouseGas EmissionsWater Resource ManagementPollutant DischargeManagementGreen Product Exploration
As of the end of the Reporting PeriodThe number of laboratories of Luxshare Precision that had been accreditedunder the ISO 17025 Laboratory Management System was
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
Scheduled Phase-out/
Replacement Year
Substance (substance group)
Affected Materials/Product
Progress/Status2015
Bis(2-ethylhexyl) phthalate（DEHP）, Butyl benzylphthalate (BBP), Dibutyl phthalate (DBP), and Diisobutylphthalate (DIBP)
All MaterialsFull Replacement2019Lead and Its CompoundsCopper Alloy MaterialsFull Replacement2019Antimony trioxideWire/CablesFull Replacement2021VOCCleaning AgentsPartial Replacement2022Decabromodiphenyl EthaneAll MaterialsFull Replacement2022Triphenyl phosphateAll MaterialsFull Replacement2022Tributyl phosphateAll MaterialsFull Replacement2023PFBS and PFBS -Related SubstancesAll MaterialsFull Replacement2023PFHxA, its Salts, and PFHxA-Related SubstancesAll MaterialsFull Replacement2023EDCsAll MaterialsFull Replacement2029
Substances of Concern in Components/Parts Exemptedunder RoHS Directive
All MaterialsPartial Replacement
Phase-out and Substitution of Hazardous Substances and Outcomes of the Endeavor
Luxshare Precision places great emphasis on the daily safe management of chemicals, with an overarching goal of fully phasing outall chemicals of concern. We implement the applicable standards of chemical safety at home and abroad and the customer's relevantrequirements for the specifications of restricted substances with high standards. A series of phased-out plans for harmful substanceshave been devised and implemented to proactively seek alternatives and reduce or eliminate the use of such substances.Our ongoing efforts include the continuous evaluation of the hazardous nature of chemicals used in our production andoperational activities, proactive initiatives to decrease chemical quantities, and substitution programs targeting specific chemicalsfor which reduction or replacement plans have been tailored.Schedule and Implementation Progress of Hazardous Substance Phase-out and Replacement Plans
Recycled MaterialsIn adherence to the principles of resource conservation and environmental protection, Luxshare Precisionpersistently integrates the 4R philosophy throughout its operations to minimize material usage.
Case｜ Aluminum Scrap Exchange Program at Suzhou Luxshare Technologies
Suzhou Luxshare Technologies has partnered with vendors to exchange aluminum scrap for newaluminum raw materials at a set ratio, thus reducing new material purchases and waste generation.During the Reporting Period, this initiative successfully exchanged 15,992 kg of aluminum scrap.
We employ design strategies that minimize material usageby optimizing thickness based on product specifications anddimensions, thereby reducing raw material consumptionWe prioritize the use of recyclable materials and proactively seekalternatives for non-recyclables. Moreover, we collaborate withsuppliers to promote the recycling of underperforming, transit-damaged, or reusable materialsWe internally recycle and reuse materials such as aluminum,copper, tin, rare-earth magnets, post-consumer recycled (PCR)plastics, and reusable polyester resins, concurrently optimizingproduction processes to minimize input materials duringmanufacturingWe adopt surface de-plasticization on packaging materials such asgift boxes, labels, paper bags, and mylar films, thereby reducingplastic content in product packaging
Overall Management of Materials
Green and Low-carbonStrategyReduction of GreenhouseGas EmissionsWater Resource ManagementPollutant DischargeManagement
Green Product Exploration
Product Manufacturing
Shipping Phase
Material Sourcing
Process Design
Way of Governance
People-oriented ApproachThe Path to DevelopmentAppendix
Sustainability Governance
Chairman's StatementAbout Luxshare Precision
Leading the Green Path
2023 Sustainability Report
Clean TechnologyOpportunitiesAs a leading electronic manufacturing company,Luxshare Precision is committed to fostering asustainable, smartly interconnected future. Wecollaborate with partners to drive innovation andtransformation in clean technologies, offeringcleaner products and services that support greenconsumption and lifestyles.Proactively seizing clean technology opportunities, wehave strategically ventured into sectors such as PVpower generation, batteries, new energy vehicles,and data center power systems. Our focus is on
R&D and commercialization of clean technologyproducts such as photovoltaic components, energystorage systems, heat-dissipation systems, high-voltage wire harnesses, wireless charging, and fuelcells. Through this relentless pursuit, we aspire to
deliver energy-efficient and energy-saving productsand solutions to catalyze our society's transitiontowards low-carbon development.
新增清洁技术产品
CleanTechnologyType
Product CategoryProduct Name & DescriptionStatus
EnergyEfficiency
New Energy VehiclesLuxshare Precision specializes inenhancing energy efficiency in electricvehicles through advanced technologiesand solutions. By developing optimizedelectrical energy transmission systemsand products, we improve chargingefficiency and safety performance,boosting energy utilization rates.
Liquid-Cooled High-Power Charging Cable
This innovative product incorporates a liquid circulation channel between the cable and charging gun, using a powerpump to circulate coolant and rapidly dissipate heat generated during charging, thereby significantly increasingcable transmission efficiency and EV charging speed. Capable of safely transmitting currents exceeding 600A, it canprovide enough charge for an electric vehicle to travel up to 200 kilometers in mere minutes.
Mass Production
Electric Motor ControllerReplacing traditional fossil fuel output control, this product governs the speed and direction of the electric motor,thereby controlling the driving performance of new energy vehicles.
Mass ProductionElectric Vehicle PowertrainBoasting a smaller size, lower noise, and higher energy conversion efficiency compared to traditional internal combustionengines, this powertrain effectively reduces carbon emissions during driving.
UnderDevelopment
Optimization Systems & TechnologiesLuxshare Precision designs energy systemoptimization technologies and productsto enable smart optimization and controlacross various scenarios, including datacenters and consumer applications, therebyensuring efficient energy utilization.
140W 2C1A PD Fast ChargerSupporting multiple charging protocols including PD3.0, QC3.0, and UFCS fusion fast charging, this charger caters tosimultaneous charging needs for various devices, reducing strain on power outlets and lowering power consumption.
Mass Production1A1C Fast ChargerOffering compatibility with several charging protocols (PD, QC, and UFCS fusion fast charging), this charger supportsdiverse charging requirements while providing a higher power density and lower heat generation.
Mass Production"Light Active" SeriesThrough advancements in chip balancing amplification, re-timing, and digital signal processing, these productsenhance copper cable application lengths. Additionally, they optimize passive copper cables with smaller diametersand bending radii, streamlining cabling in data centers and dramatically cutting system power consumption by up to20%-60% compared to conventional AOC optical modules.
UnderDevelopment4U Liquid Coolant Distribution UnitThe liquid cooling distribution unit automatically adjusts the quantity of heat for exchange according to the communicationdevice on the rack, and controls the temperature of the refrigerant at the outlet within the preset range, with thetemperature error smaller than ±1°C, in a bid to achieve energy conservation and efficiency improvement.
UnderDevelopment
PollutionPreventionand Control
Recycling and ReuseLuxshare Precision diligently identifiesand capitalizes on opportunities forrecycling and repurposing waste materials,pioneering innovative recycling technologiesfor aluminum and plastics, thereby activelycontributing a significant reduction in rawmaterial consumption of our products.
Wall Charger SeriesEach of the seven products in this series utilizes PCR plastic that has undergone polymer modification. One modelboasts a PCR content of up to 99%, thus effectively diminishing greenhouse gas emissions.
Mass ProductionVehicle Harnesses
The entire series of harness assemblies is manufactured from environmentally friendly and recyclable materials conforming tostandards GB/T 30512-2014, RoHS, and REACH, well enhancing the utilization rate of resources.
Mass Production
Alternative
Energy
Fuel Cells/Hydrogen Systems
Luxshare Precision devotes itself to hydrogenproduction, storage, and transportationscenarios, deploying optimized solutions forhydrogen generation, storage, and provision,driving the transformation of energy mix.
Fuel Cell StackThe development of a 140KW graphite-based hydrogen fuel cell stack enhances reaction efficiency for medium-to-heavy-duty trucks' fuel cells, providing ample power for operating vehicles.
UnderDevelopment
The above chart only shows the new clean technologies and products in 2023. For a comprehensive overview of Luxshare Precision's past innovations and specific products inthe realm of clean technology, please refer tothe Luxshare Precision Clean Products Catalogue 2022.
During the Reporting Period
By 2024
The investment in clean technologyR&D exceededRMB
millionThe number of patents relatedto clean technology was
Plan to invest in clean technologyR&D over
RMB
million
Green and Low-carbonStrategyReduction of GreenhouseGas EmissionsWater Resource ManagementPollutant DischargeManagementGreen Product Exploration
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
People-oriented ApproachProgressing Together with Careand SincerityAs social demands for safeguarding labor rights and interests inenterprises become increasingly stringent, in order to enhancetalent attraction and create a diverse and inclusive workplace,Luxshare Precision has established a comprehensive labor riskmanagement mechanism to protect the legitimate rights andinterests of its employees. Luxshare Precision always focuseson talent development, and has implemented a training systemwith characteristics of Luxshare Precision that provides trainingon various topics such as skill enhancement, leadership, and ESGissues. Luxshare Precision has also improved remuneration andbenefits and performance appraisal systems to share the fruitsof development with its employees. Additionally, the Companyplaces great emphasis on employee occupational health andsafety, and has developed effective management mechanismsto maintain a safety performance of "zero work-related fatalityaccidents and zero occupational diseases".
●Occupational Health and Safety●Protection of Employee Rights and Interests●Employee Diversity and Equal Opportunities●Talent Attraction and Retention●Employee Training and Development
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Luxshare Precision respects and protects the legitimaterights and interests of all employees, strictly complieswith applicable laws and regulations in its domestic andinternational operations, and rigorously follows standards setby international labor conventions and initiatives, including theUniversal Declaration of Human Rights, theFundamentalConventions of the International Labour Organization, theUnited Nations Guiding Principles on Business and HumanRights, theResponsible Business Alliance Code of Conduct,theCorporate Responsibility to Respect Human Rights: AnInterpretive Guide, Global Sullivan Principles, and SocialAccountability (SA 8000) Standard.To establish a sound management mechanism forsafeguarding labor rights and interests, Luxshare Precisionhas formulated several policies and procedures, such as the
Social Responsibility Management Manual, theEmployeeHandbook, theRecruitment Management Measures, theOperating Procedures of Unforced Work, theOperatingProcedures of Child LaborandMinor labor Management,theOvertime Management Measures, theManagementProcedures of Freedom of AssociationandCollectiveBargaining, theOperating Procedures of Discrimination
andHarassment Prevention, and theDiversityandInclusionManagement Procedures,which regulate workplacebehaviors, prevent illegal practices like forced labor, child labor,discrimination, and harassment, guarantee reasonable workinghours with lawful compensation that includes overtime pay,and respect employees' freedom of association and collectivebargaining rights, fostering an inclusive, diverse and equitableworking environment. The Company has issued theLuxsharePrecision Statement on the Protection of Labor HumanRights, affirming its commitment to upholding labor rightsand interests. Meanwhile, we regularly conduct supplier CSRrisk assessments and audits to strengthen the prevention andcontrol of risks to labor rights and interests within the supplychain.Luxshare Precision complies with relevant provisions of nationallaws and regulations regarding the minimum notice period foroperational changes to fully protect the legitimate rights andinterests of all stakeholders. As of the end of the ReportingPeriod, Luxshare Precision had not been involved in anymatters that require notification to stakeholders.
To effectively safeguard labor rights and interests, LuxsharePrecision has established a labor risk management mechanismof "Identification - Prevention - Supervision- Mitigationand Remediation" with reference to the OECD HumanRights Due Diligence framework. In 2023, we set up a specialworking group serving the whole Company to develop aSelf-Assessment Questionnaire (SAQ) and planned to fullyimplement the identification and self-assessment of labor risksin our factories in 2024. The working group is also responsiblefor overseeing and auditing the risk assessment in the factories,urging timely rectification of potential risks or non-compliantbehaviors.
Protection of Rights and Interests
As of the end of the Reporting Period
No incidents
involving violations of freedom of association and collectivebargaining rights, forced labor, illegal slavery, child labor, or any form of discriminationwere detected within Luxshare Precision’s operations and supply chain.
Labor Risk Management MechanismIdentification
Supervision
Prevention
Mitigation and Remediation
Sort out various risks to labor rights andinterests, such as forced labor, child labor,harassment, and discrimination, and establishtargeted risk management systems.
Establish a triple audit mechanism consistingof internal specialized audits, client audits,and external third-party audits (such as RBA)to achieve comprehensive supervision oflabor-related issues.
Continuously improve preventive measures,such as verifying identities through IDchecks, implementing attendance systems,and providing training on protection of rightsand interests, so as to effectively preventand control various risks to labor rights andinterests.
Conduct investigations promptly in theevent of violations of rights and interestsor receiving related complaints and holdresponsible parties accountable. Legalaid, financial compensation, psychologicalcounseling and other assistance willbe provided to those affected. Resolvecomplaints through measures such astraining, disciplinary actions, providingsupport to the affected individuals, improvingrelated infrastructure, and upgrading policies.Protection of Rights andInterests
Employee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Key Labor Rights Risk Management MeasuresChild Labor Prevention
Anti-discrimination
Anti-harassment and Anti-abuse
Working HoursOccupational Health and Safety
Freedom of Association and CollectiveBargaining
Overtime CompensationData Privacy and Information Security
Engage in friendly negotiations with employees in the event oflayoffs, ensuring that they are informed of adjustment plans.Prior to formal negotiation, cooperate with sister companies to
provide reemployment opportunities for employees, under thepremise of respecting the employee's preferences.If mutual agreement is reached upon the termination of employment,the Company will provide severance pay to the employees.The Company also implements skill enhancement training programsfor all employees to help them enhance their capabilities to obtainreemployment and increase the probability of employment.
It is prohibited to compel employees to engage in production,
manufacturing, or related meetings or activities outside ofworking hours.When employees need to work overtime temporarily, arrangeovertime and rest periods in accordance with theWorking HoursManagement Procedures.Continuously monitor employees' working hours through attendance
systems and registration of working hours by designatedpersonnel.Conduct investigations promptly in the event of violations of reasonableworking hour policies or upon receiving related complaints, and providereasonable assistance to the affected individuals. In cases whereemployees' health is compromised due to significantly excessive workinghours, promptly assist them in obtaining medical assistance and bearthe corresponding medical expenses.
During the recruitment and other employment processes such asjob applications, promotions, rewards, training, job assignments,wages, benefits, disciplinary actions, and termination of employment,no discrimination based on race, color, age, gender, sexualorientation, ethnicity, disability, religion, political affiliation, unionmembership, nationality, marital status, or gender identity shallbe permitted.Conduct investigations promptly in the event of discriminatoryincidents or upon receiving related complaints, and provide affectedindividuals with reasonable assistance, such as legal aid, financialcompensation, and psychological counseling.
Comply with the requirements for overtime pay/allowances statedin theEmployee Handbookand legally provide employees withovertime compensation.
Ensure that workers exercise their organizational rights in anenvironment free from violence, pressure, fear, intimidation, andthreats, and provide facilitative conditions for the establishmentof trade unions or other forms of employee organization to enablethem to perform their duties promptly and effectively.Conduct investigations promptly in the event of infringements ofrelevant rights and interests or upon receiving related complaints,and provide reasonable legal assistance to the affected individuals.
Adopt a hierarchical control principle to identify, assess, and
minimize potential health and safety risks, and provideappropriate personal protective equipment.
In the event of any incidents that jeopardize occupational health andsafety, provide medical assistance to employees promptly.
Strengthen management and control of information security
through the use of data governance platforms, enhance the overallawareness of information security among all employees, strictlyprotect personal information privacy and corporate trade secrets, andachieve zero loss and zero leakage.
Forced Labor
Responsible Restructuring
Sign labor contracts with workers in accordance with the law, andclarify employment conditions.It is strictly prohibited to collect deposit in any form from
workers. Furthermore, unless required by law, it is not allowed to
possess, destroy, conceal, or confiscate their documents.Conduct prompt investigations upon discovering forced laborincidents. While holding responsible parties accountable, ensure thataffected individuals are provided with reasonable assistance, includinglegal aid, financial compensation, and psychological counseling.
Verify employees' ages through manual checks of ID cards,relevant certificates issued by local public security agencies, etc.,and manually inspect and identify potential child labor during routinework.Encourage all employees to timely report illegal employment ofchild labor through suggestion boxes, phone calls, or emails to theCompany's administrative department and central managementdepartment.In accordance with the provisions of labor law, immediately ceasethe work of any child labor upon discovery, arrange for their healthexamination by specialized institutions, promptly return them to theirguardians, and assist them in continuing their compulsory education.
Prohibit all forms of harassment, such as psychological harassment,sexual harassment, and verbal harassment, and enforce workplacediscipline in accordance with theEmployee Handbookby imposingdisciplinary actions against harassment, such as mandatorycounselling, warnings, demotions, and dismissals.Encourage employees to report potential and actual harassment andabuse incidents to the Company's human resources administration ordepartment heads.Conduct investigations promptly in the event of harassment or abuseincidents or upon receiving related complaints, and provide affectedindividuals with reasonable assistance, such as legal aid, financialcompensation, and psychological counseling.
Protection of Rights andInterests
Employee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Employee Well-beingWe prioritize the needs of our employees and providethem with competitive remuneration while continuallyimproving the Company's welfare system. At the sametime, we attach great importance to employee careand are committed to creating a warm and harmoniousworking atmosphere for our employees.
Labor Union Conference in Vietnam Factory
Harmonious WorkplaceLuxshare Precision is committed to creating a harmoniousworkplace atmosphere. We have established multiplecommunication channels to encourage our employeesto feed back on their thoughts and demands. Dedicatedpersonnel are assigned to address them promptly.Additionally, the Company conducts surveys on employeeengagement and satisfaction to comprehensivelyunderstand their views on their work and the Company.Based on the findings, targeted improvement plans areformulated to effectively address employees' challengesin both their personal and professional lives.We respect and protect the rights of employees toengage in equal negotiation, collective bargaining, andfreedom of association. We have established smoothchannels of communication, including various onlineand offline platforms and approaches at the Companyand factory levels, allowing us to listen to employees'voices from multiple platforms and perspectives.
Employee Communication
The number of labor unionfederation established byLuxshare Precision was
The number of labor unions LuxsharePrecision had established wasAs of the end of the Reporting Period
The case closurerate was
%
The total number of requests and suggestionsthe employee platform received was18,487
During the Reporting Period
Employee Engagement and SatisfactionThe Company surveys all employees at home and abroad on employee engagement and satisfaction. Thequestionnaires and research strategy are designed for direct and indirect labors respectively to align withtheir characteristics. The 2023 survey was conducted in the form of a combination of online questionnairesand offline interviews. Each BU assigned dedicated personnel to conduct interviews with employees. Atotal of over 210,000 valid questionnaires were collected, and 12 executives were interviewed. In 2023,the Company implemented a series of employee workplace experience improvement programs, receivingpositive feedback from employees, and employee engagement and satisfaction scores during the ReportingPeriod showed a steady increase.
Training Session for "Experience
Officers" in Boshuo Factory
Case｜"Experience Officer" Program Launched in Various Factories
Luxshare Precision has implemented the "ExperienceOfficer" program in over 40 factories. The programappoints individuals as Experience Officers to collectconcerns on conditions of dining, housing, transportation,and production management from direct labor (DL) ineach factory. With authentic feedback provided by theseofficers through their firsthand experience, efforts aremade to improve the conditions in each factory, whichis led by human resources department and advanced bydirect supervisors, so as to effectively enhance overallmanagement and employee service levels.
Luxshare Precision Communication
Channels
Global Direct
ReportingChannel
StarCommunity
WeChatOfficialAccount
Sunshine
EnvoyPlatform
StaffSymposium
DouyinOfficialAccount
Voice ofEmployees
CareCenter
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Employee CareWe care about every Luxshare Precision employee, provide diverse benefits to them, and strive to deliver acomfortable and warm working environment. We have undertaken projects such as renovation of old dormitories,upgrades and replacement of dormitory facilities, and construction of multifunctional areas for employee leisure andrecreation. Additionally, the Company continuously enriches employees' leisure activities, organizes diverse events,enhances employee happiness, and strengthens company cohesion.Employee Benefits
Luxshare Precision places great emphasis on theworkplace and life experience of its employees, forwhich we have established a well-developed employeebenefit system. In addition to statutory benefits for allemployees such as social, pension, medical and otherinsurance, as well as paid leave such as childcare leave,the Company also purchases commercial insurance forour employees, collaborates with local governmentsto ensure the educational needs of our employees'children studying in local schools are met, providesshuttle bus services for commuting of our employees'children, and renders after-school care services, etc.Through diverse care initiatives, we aim to enhanceemployee well-being.Diversified Holiday Activities
Birthday Celebration for
Employees
Activity CenterCanteen Upgrades
Remuneration and Benefits Assurance
Luxshare Precision has established a performance appraisal system that covers all employees. Scientific remunerationadjustments are conducted regularly to provide employees with competitive remuneration. Additionally, the Companycontinuously improves its welfare system based on its characteristics, offering employees a variety of non-monetarybenefits. While enhancing employees' sense of identity and satisfaction with the Company, we strive to create acaring and harmonious workplace for our employees.Remuneration LevelLuxshare Precision continuously improves its remuneration system to provide employees with market-competitivesalaries. We adhere to the principle of"equal pay for equal work"and maintain the Company's remuneration atan upper level within the industry, on the basis of not being lower than the statutory minimum wage standards ineach operating location. During the Reporting Period, we continued to promote the scientific and rational salaryadjustments, taking into account the actual performance of our employees and making salary adjustments from theperspectives of internal fairness and external market competition.Performance AppraisalLuxshare Precision has established a regular performance appraisal system that covers all employees at home andabroad. This system encompasses comprehensive appraisal indicators and clear appraisal procedures. Employees'objective performance and development at the workplace serve as the basis for annual performance appraisal. Theevaluation results undergo multiple rounds of approval with feedback to ensure objectivity and fairness.
We have established an honor system with thecharacteristics of Luxshare Precision and introduced aseries of activities such as"Star Avenue"and"Thanksto You"to recognize outstanding employees whohave made contributions to the Company and sharethe achievements of corporate development withemployees.The"Thanks to You"series is one of the recognitionawards launched by Luxshare Precision, aiming toreward active full-time employees who have completedten, fifteen, twenty, twenty-five years of service ormore and continuously strengthen employees' senseof belonging and honor. During the Reporting Period,we presented commemorative gifts to nearly 1,600individuals, with a cumulative total of over 5,000recipients.
Honor System
Presentation of "Thanks to You" Commemorative
Gifts to the Honored Employees
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
"Luxshare Cup" Group Competition
Case｜The 5th "Luxshare Cup" Group CompetitionIn April 2023, the grand opening of the 5th"Luxshare Cup"sports event took place. 35 teams from differentfactories of the Company competed fiercely for 9 days in 4 events: soccer, basketball, badminton, andwomen's relay race. This event not only enriched employees' leisure activities but also deepened the spiritof unity, hard work, and collaborative integration among all Luxshare Precision employees.
"Charming ?o dài" Contest in Vietnam Factory
Case｜The "Charming ?o dài" Contest Organized by the Vietnam FactoryIn October 2023, the Vietnam factory organized the"Charming ?o dài"contest, which attracted numerousemployees. After multiple rounds of competition, 24 contestants were selected as winners. This eventpromoted traditional Vietnamese culture, showcased the grace and beauty of Vietnamese women, andprovided a platform for female employees to express themselves.
Employee Activities
We organize diverse employee activities, and keep enriching the leisure time of our employees, so that we can enhance the experience of employees in workplace while stepping up the Company's cohesion and attraction.
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Family Members Visiting the Workshop
in Kunshan FactoryFamily Day Event in Dongguan Factory
Group Photo of Families in East China Factory
Case｜"Luxshare Family Day" Event Organized in Multiple Factories
In July 2023, Luxshare Precision organized the"Luxshare Family Day"event in multiple factories, introducingactivities such as Star Public Welfare Recycling, corporate culture quizzes, talent performances, and otherexciting segments, allowing family members to understand the work of their loved ones and experience theintegration of company culture and family culture.
Case｜The 6th "Voice of Luxshare" Singing Contest Organized by Luxshare PrecisionIn October 2023, Luxshare Precision held the 6th"Voice of Luxshare"singing contest, allowing employeesto enjoy the pleasure and passion brought by music amidst their stressful work. The theme of this editionwas"Unlimited Peaks, Fighting for Passion", showcasing the unity, vitality, and innovative spirit of LuxsharePrecision employees.
Contest in Dongguan Factory
Contest in East China Factory
Contest in Vietnam Factory
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Talent Recruitment and Retention
Luxshare Precision adheres to the principles of diversity and equality and actively recruits talents. We provide employees with well-defined career development pathways,empowering them to achieve better personal growth. The Company is committed to building an equal and diverse workforce, and creating an inclusive workplace.
Male employeesFemale employees
Employees from Mainland ChinaEmployees from Hong Kong, Macau, and TaiwanOverseas employees (excluding employees from HongKong, Macau, and Taiwan)
In 2023, Luxshare Precision organized a series of diversityintegration projects, aiming to help disabled employees betterintegrate into the collective and feel the warmth and careof the Company. In the Kunshan factory, various activitiesare organized to promote inclusive development amongemployees, including organizing free medical consultationsand visits, hosting fun sports events, conducting training onthe concept of disability inclusion, as well as providing healthand safety training for employees with disabilities.
Free Medical Consultations and Visits for Disabled Employees
Diversity Integration Carnival and Fun Sports Event
Safety Education Training for Disabled Employees
As of the end of the Reporting Period the total number of employees was 232,585
Employees aged 29 and belowEmployees aged 30 to 49Employees aged 50 and above
Distribution Diagram for Employees in 2023
Talent Recruitment
The Company continues to deepen itsefforts in campus recruitment and conductsthe"Campus Reserve Cadres"recruitmentprogram for fresh graduates from domesticand international universities. By onlineinformation sessions and live broadcasts,offline specialized recruitment fairs, andschool-enterprise activities, covering over ahundred universities at home and abroad,the program attracts tens of thousandsof students to submit their resumes, andeach year nearly a thousand graduateschoose to join Luxshare Precision. Duringthe Reporting Period, the Company washonored with two employer awards.51Job & yingjiesheng.com "2023
Top Graduate Employer"
Diversity and Equality
Luxshare Precision is committed to buildinga diverse, equal, and inclusive workplace.We prohibit any form of discriminationand adhere to the principles of diversityand equality in both our recruitment andemployment processes. We pay attention tothe vulnerable groups among our employeesand help them integrate into the Luxsharefamily.
民族地区供应商资格证书CERTIFICATE OF EMBZ SUPPLIER证书编号Certificate No：
特证明经MSD China供应商评估委员会认定符合EMBZ的所有条件，特颁此证。This certifies thathas met the criteria for certification as a Ethnic Minority Business ZoneEnterprise by evaluation committee of MSD China.
Legal person’s Signature and official sea签发日期Date of Issue：
| ____/____/____ |
立讯精密工业（恩施）有限公司
EMBZ202307180129Luxshare Precision Industry (Enshi) Co.,Ltd
有效期至Date of Expiry：
____/____/____
202411
102023
Luxshare Enshi Has Been Certified as an EMBZ
(Ethnic Minority Business Zone) Supplier
132,253100,33247,617
1,319
183,6492,132118,379
112,074
By gender
By agegroup
By region
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
We actively collaborate with external partners and continuously promotethe"A+ Eyas Program", exploring efficient ways of talent developmentin collaboration with multiple institutions. We have also established acomprehensive talent development process, including activities such asvisits and learning, corporate culture promotion, job introductions, andprofessional training, in order to deepen participants' understanding ofLuxshare Precision while gaining professional skills and knowledge.
Promoting School-Enterprise Cooperation
Luxshare Xi'an Held the School-enterprise Cooperation Event
Case｜ Practical Activities in Collaboration with
Chang'an University at Luxshare Xi'an
In June 2023, Luxshare Xi'an collaborated with Chang'an Universityto conduct practical internship activities. Our engineers provideddetailed introductions to the Company's development history,products, research and development and production environment,as well as on-site lectures and explanations of professionalknowledge. The event received high recognition from theparticipating students, laying a solid foundation for high-qualitytalent reserves for the Company.
Career Promotion
We have established a dual-track career development pathway for employees in management and professional roles. We continuously clarify and refine thepromotion system and mechanisms, aiming for fair, just and reasonable employee placement while increasing employee motivation and sense of identity. Wehave set up transparent promotion processes for all employees, following four key promotion principles, striving to create a scientific and rational promotionsystem.
During the Reporting PeriodPromotions in theManagement Track
Promotions in theProfessional Track
2,631persons
9,720persons
Management Track
Luxshare Precision Promotion System
Professional Track
Decision-making LevelM5 Senior Expert LevelP5M4 Operations Management LevelExpert LevelP4M3 Senior Management LevelSenior Professional LevelP3M2 Intermediate Management LevelIntermediate Professional LevelP2M1 Junior Management LevelJunior Professional LevelP1
Protection of Rights andInterestsEmployee Well-being
Talent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Talent DevelopmentWe are guided by talent development and aim to builda comprehensive training system for our employees,providing diverse training courses and capabilityenhancement programs to support the sustainabledevelopment of talent.
Influence-based SeriesProfessional trainingExpertise
fundamental
Excellent technicians: lean production, six sigmaR&D elites: project management (PMP)Marketing leaders: accounts managementIndustry hardcore: supply chain managementInternal lecturers: star planOn-boarding certification: position know-howSchool-enterprise cooperation: cooperativeeducation, education for academic qualificationimprovementOccupational qualification certification
Luxshare Precision TalentDevelopment SystemStrategies/Management Requirements of the GroupAbility-based Series
Transition-based Series
Leadershipimprovement
High-potentialreservedevelopment
M5 executive trainingM4 executive training
M4 reserve trainingM3 reserve trainingP3 P4 high-potentialtrainingStar plan – new forceclass
Research on strategicdeploymentResearch on humanresources managementResearch on financialmanagementDigital developmentPublicity on work safetyPublicity on anti-corruption and integrity...
Platform center (management and incentive mechanism, online learning platform, talent evaluation platform,
external resource platform, form system)
Star classroomLuxsharePrecision Forum
New employeeon-boardingtraining
Managementenhancement
ManagementupskillingLine leadertraining class
Star Making Series
Organization experience summarycase database, lesson database, lecturer database
Employee Training System
Luxshare Precision has established and improved thetalent development systems from the corporate levelto the factory level. At the corporate level, we havebuilt a comprehensive learning platform and a learningresource library focusing on leadership, professionalskills, and diverse job competency enhancement needs.We have implemented multiple customized talentdevelopment programs and key competency trainingprograms.In 2023, we refined the training system for eachfactory/BU based on the job requirements, providingmore targeted training programs to ensure thatemployees in various positions acquire the necessaryknowledge and skills throughout critical stagessuch as onboarding, hiring, promotion, and positionreassignment. Additionally, we enhanced employees'overall capabilities through multidimensional courses,including personal leadership and other generalknowledge courses.We provide a variety of general courses for all employees.In addition to offline courses, we have launched an onlinelearning platform called"i School"to provide employeeswith flexibility to schedule their learning. To addressthe challenges of cross-cultural communication andintegration faced by employees in overseas operations,we have developed and launched a series of onboardingtraining courses for new employees in Vietnam and India.
Development and Training
To provide employees with opportunities for knowledgeand skill enhancement and better realize their self-worth, we continuously refine our employee trainingsystem, offering diversified and customized coursesand training programs in terms of format and contentfor all employees.
During the Reporting Period
The total expenditure on employeetraining programs amounted to
The total training hours for allemployees exceeded
The average training hoursper person was
RMB
10.95
million
5,240,496 hours
hours
Total Training Hours (hour)
161,736293,0762,151,601119,422201,70114,067
Specialized Training
Protection of Labor Rightsand Interests and DiversityAnti-corruption TrainingEHS TrainingQuality ControlInformation SecurityIntellectual Property
Number of Trainees(person-time)
74,835633,223925,62487,98364,003
5,714
Multi-thematic Training
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetention
Talent Development
Occupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Executive reserve cadresSenior management reserve cadresSection-level cadresSpecialists for High-potential talent poolSenior management current cadres
Junior cadresReserve cadresAll IDL
Trainees
New Employee Training
Star Training Camp in Luxshare Smart Manufacturing Star Training Camp in Vietnam Factory
Case｜Luxshare Precision Organizes "Star Training Camp" for New Employees
To help new college graduateemployees quickly integrate intoLuxshare Precision, we organize the
"Star Training Camp"onboardingtraining to promote fast learningand growth of the reserve cadres.In the centralized training courses,the training team provides detailedintroductions to the Company's mainbusiness, corporate culture, policies,etc., helping the reserve cadresgain comprehensive and systematicunderstanding of the Company's basicinformation and business, laying afoundation for their subsequent workand career development.
Leadership TrainingLuxshare Precision has always emphasized the development ofemployees' workplace leadership. We have introduced the LuxsharePrecision Leadership Model, which divides leadership capabilitiesinto different levels ranging from basic to outstanding based onfive dimensions. Each level corresponds to a specific capabilityenhancement pathway. The model provides a solid theoreticalfoundation and directional guidance for cultivating workplaceleadership.Following the leadership model, we have launched the"Star-MakingSeries"training programs, offering a variety of leadership trainingcourses of which the contents are tailored to management cadres,high-potential talent reserves, and talent reserves, respectively.
Luxshare Leadership Model
Driving Luxshare
Precision tobuild businesssuccess
Continuous
learning
Influence
Execution
Decision-making
ExpertiseThinkingDevelopingothersMotivatingmembers
Missionattainment
Leanoperation
Rational deci-sion-making
Takingresponsi-bilities
BusinessinsightProblemresolution
Holoscopicawareness
Leadership Training System
M4 Reserve Practice ProgramM3 Reserve Practice ProgramM2 Management Practice ProgramP3P4 High-potential Talent Practice ProgramManagement Advancement ProgramLine Leader Practice ProgramStar ProgramPersonal Leadership Development Training Program
Training Program
Luxshare Precision has created the"Star Program", an onboardingtraining project for new college graduate employees each year.Focusing on talent development paths, the program integratescorporate development with employees' career growth. This projectis conducted in the form of"Star Training Camp", aiming to enhancethe professionalism of reserve cadres through phased training andcontinuously provide talent reserves for the Company's sustainabledevelopment.
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
We have rolled out a Personal Leadership Development(PLD) training program for all employees to cultivatetheir ability to use positive personality traits and skillsto guide their life's direction. The teaching approachfocuses more on guiding students and inspiringproactive thinking. During the Reporting Period,we introduced 21 PLD courses, including the TeamCollaboration, which received widespread praise andpopularity from participants.
Training Class in Vietnam Factory Training Class in East China Factory
Training Class in LuxcaseICT Yancheng
Case｜ Luxshare Precision Conducts Training for Management Reserve CadresTo enhance the comprehensive skills and leadership of the Company's management cadres, we haveconducted a series of reserve tour training and management promotion training programs for talentreserves at various management levels. These programs aim to develop the leadership capabilities ofreserve cadres, including their thinking, decision-making, and influence. Additionally, they promote theintegration of cultural values and concepts of cadre among existing cadres.
PLD Leadership Training
The total training hours of PLDcourses amounted to over2,400minutes
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Graduation Ceremony of the Academic QualificationImprovement Project in Kunshan Factory
Skill Upgrade TrainingsWe provide various skill upgrade training programs for all employees and encourage them to actively pursueexternal skill certifications. During the Reporting Period, we conducted skill upgrade training programscombining theory and practical sessions for roles such as draftsmen. We also supported employees inobtaining professional skill certifications, contributing to their career development.
Computer Programming Training
Electronic Equipment Installation and Commissioning Training
Case｜ Kunshan Factory Launched Associate/Bachelor's Degree Upgrade ProgramIn July 2023, the KunshanFactory partnered with Xi'anJiaotong University, SoochowUniversity, Changshu Institute ofTechnology, Suzhou VocationalUniversity, and other institutionsto launch academic degreeupgrade programs. Throughinformation sessions and emailnotifications, over 140 employeeswere attracted to enroll.
Academic Degree Upgrade Programs
We have collaborated with multiple institutions toprovide academic degree upgrade programs forall employees. Through methods such as tuition
reimbursement and subsidies, we encourageemployees to participate, supporting their careergrowth and promoting personal development.
Corporate Poster for Enrollment Notice
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent Development
Occupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Occupational Health and SafetyLuxshare Precision strives to provide a healthy,hygienic, and safe workplace for employees, with thegoal of"zero fatal accidents and zero occupationaldiseases", and make continuous efforts in theprevention and management of occupational healthand safety risks.Management SystemLuxshare Precision continuously enhances its occupationalhealth and safety management system. We haveestablished an EHS Management Committee to supervisethe Company's EHS affairs, strictly complying with relevantlaws and regulations such as theProduction Safety Law
and theLaw on Prevention and Control of OccupationalDiseases. We have formulated and implemented unifiedstandards like theGroup EHS Manual, theGroupOccupational Health Management Procedures, and theGroup Accident Management Proceduresto monitor andensure compliance by all subsidiaries, as well as implementdetailed management practices.EHS Management StructureThe Company has established regulations such as theGroup EHS Management Committee Operation andSupervision Management Systemand theBU DirectorEnvironmental Safety and Health Accountability Form.This has formed an efficient centralized managementstructure, establishing an occupational health and safetysystem covering all employees. The EHS ManagementCommittee also includes employee representatives toensure adequate participation in occupational healthand safety management.During the Reporting Period, Luxshare Precisionorganized 3 specialized EHS meetings for seniormanagement, covering topics such as EHS planning,construction and enhancement of EHS informationmanagement system, and EHS reporting.
EHS Information ManagementWe utilize an EHS information management system tostreamline control measures and reporting channels,promoting systematic, intelligent, and standardizedEHS management. During the Reporting Period, wecontinuously improved the information managementsystem, adding new modules for canteen safetymanagement and risk investigation management. We alsocreated data reporting functions to make all data in safetymanagement more intuitive.
Modules in Operation forEHS Management
Note: The orange modules are newly added modulesin 2023
EHS Management Committee Structure
Board of Directors
EHS Officers of Factories
Responsible for overall planning ofthe Company's EHS-related work
Organize and carry out theEHS-related inspections in allfactories as plannedFollow up the EHS problems ineach factory and resolve themtimely
Collect the latest laws andregulations related to EHS, andestablish internal implementationstandards Provide necessary legal assistanceEstablish relevant management systemsand work procedures and organize theirimplementationCarry out EHS-related publicity activitiesand trainingResponsible for the collection, collationand analysis of the Company's EHSrelated data
Listen to the reports on EHS work by theDirector-General of EHSEHS Management Committee
Audit GroupPublicity GroupLegal Group
Establish and continuously improve the Company's EHS management system Establish and improve the Company's EHS management system documents Hold quarterly EHS meetings, and plan and deploy the overall EHS work of Luxshare PrecisionFormulate the EHS inspection plans and standards, carry out the EHS audits and inspections, and follow upproblem improvementCoordinate and command emergency events, conduct crisis public relations according to the severity of theevents, and initiate emergency response procedures promptly
As of the end of the Reporting PeriodThe number of subsidiaries that obtained ISO 45001 Occupational Healthand Safety Management System Certification was
Basic informationof EHSmanagement
institutionsSafetyaccidentreporting
Occupationalhealthmanagement
List of chemicals
EHS-related
laws andregulations
Contractormanagement
Specialequipmentmanagement
Emergencymanagement
Hiddendangerreporting
Canteensafetymanagement
Riskinvestigationmanagement Responsible for the direction and inspection of EHS work in BG/BU/factories Implement the EHS-related measures and review capital investmentWork with the Executive Director of each factory to carry out the EHS management
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent Development
Occupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
EHS Risk ManagementThe Company has formulated theGroup EHS Audit Management Measuresand theHazard Identificationand Risk Assessmentand Control Procedures to actively identify, investigate, respond to, and manage hazardsources. We comprehensively consider factors such as safety management, risk disaster levels, and productionlayouts to classify various EHS risks. We then implement dynamic risk management and conduct EHS auditsaccordingly.
Risk Identification and Control
For identified EHS risk sources, we organized safety drills and other activities to enhance employees'awareness of occupational health and safety risks and improved their risk responses.
United Drills of Aids on Water in Kunshan Factory
Supervised the completion ofrectifications over1,000
The number of spotchecks conducted was
During the Reporting Period
The domestic and overseasfactories where we completedaudits reached over
Work-related Injury ManagementWe have formulated regulations such as theWork-related Injury Management Measures, theMedical Healthand Occupational Disease Prevention Operating Procedures, and theAccident (Incident) Reporting, Investigationand Handling Control Procedures. We have also established the work-related injury handling and emergencyresponse processes to provide standardized guidelines for responding to and dealing with health and safetyincidents. We also have 24-hour open clinics to provide timely assistance to employees in need.
Division of Duties in Work-Related Injury HandlingEvacuate andprotect theemployeesAnnounce theincident within 2hoursAssist in accidentinvestigationImplement incidentrectification
Incident Department
Handle thework-related injuryincidentArrange for medicaltreatment andreview Reimburse the fees
Administration
Handle thework-related injuryincidentConduct incidentinvestigation andanalysisTrack incidentrectification Check safety training
EHS
Handle thework-related injuryincident Report the work-related injury Update the work-related injuryhandling progress
HR
Report thework-related injuryincidentEvacuate from thesite with risk ofwork-related injury
Employees
Implementationof EHS policies
Production facilityhazards and rectificationSafety educationand training
Incident handlingprocedures
EHS Audit Mechanism
Identify hazard
Audit Contents
Entity and Implementation ProcessEHS audit of the Company
Special EHS audit
External auditFactory self-inspection
Audit Forms
EHS Management Committee
Factory
Report rectificationmeasures, plans andprogress and within3 working days
Regularly trackhazard rectifi-cation
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
We continuously reinforce the EHS management responsibilities of our factory leaders. In the event of anaccident, the responsible personnel must immediately report it through the EHS management system,and report to local government regulators within a specified time based on the incident grade. Toprevent reoccurrence, each factory must analyze the accident's root cause and formulate and implementcorresponding rectification measures. Luxshare Precision requires all BG/BU directors to sign an EHSManagement Responsibility Letter. This had been 100% achieved by the end of the Reporting Period.
EHS Accident Management Process
Major incidentsGeneral incidents
Approve report
Notification Notification
Training and CareWe regularly conduct various occupational healthand safety training sessions across all factories. Inaddition to offline training, we have also launchedEHS courses on the online learning platform"i School"for employees to enhance their EHSawareness.EHS Management TrainingTo help all EHS management personnel clearlyunderstand their responsibilities and improve theirEHS management capabilities, we provide safetymanagement trainings at company, department,and position levels to enhance the Company'soverall EHS management standards.
The Company's various EHS trainingsessions reached a total of
Participants2,151,601 hours
925,624
person times
Emergency Management Training in East
China Factory
Emergency Management Training in South
China Factory
Emergency Management Training in
Chuzhou Factory
Emergency Management Training in Luxcase
Factory
Case｜Luxshare Precision Held EHS Emergency Management TrainingIn September 2023, the EHS Management Committee organized an annual emergencymanagement training session for EHS management personnel and safety officers from fiveregions, with a total of 385 participants. Through a combination of theoretical lectures and on-sitepractical drills, this training enhanced all participants' ability to respond to various emergencies.
Incident Reporting and Handling Process
There were no work-related fatalities, and145 work-related injury incidents occurred,representing a year-on-year decrease of
Luxshare Precision invested inoccupational health and safetymanagement for approximately
During the Reporting Period
%
RMB
million
An incident occurs
Report to EHS manager
of the factoryReport in the incident system
Evaluate severity of incident
Investigate incident and
analyze causeDetermine and implement
improvement measures
Confirm improvement effectIssue report of incidenthandling
Issue preliminaryreport of the incident
Review incident report
Investigate incident andanalyze cause
During theReportingPeriod
Factory
EHS Committee of
the Company
Chairman
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
Leading the Green Path
The Path to DevelopmentAppendix
People-oriented Approach
2023 Sustainability Report
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Production Safety Training
We are committed to instilling occupational health and safety awareness throughout all aspects of daily productionand operations. To this end, we require all production factories to regularly conduct production safety training tostrengthen employees' safety knowledge and improve their ability to respond to safety emergencies.
Contractor EHS TrainingEvery year, the Company provides EHS safety trainingfor contractors, clarifying our various standards andregulations, potential safety risks in each constructionphase, and control measures. This ensures thatcontractors fulfill their primary responsibilities forproduction safety. In 2023, all factories providedspecialized training and examinations for all contractorpersonnel engaging in on-site construction work.
Mental Health Knowledge Competition
Case｜Huarong Factory Organized Chemical Safety Training
In 2023, the Huarong Factory organized online andoffline chemical safety and environmental protectionknowledge training for first-line managers, local safetyofficers, chemical managers, and administrative stafffrom various manufacturing departments acrossall factories. With two training sessions and 32participants, this effectively enhanced the chemicalmanagers' safety and environmental protectionknowledge and management capabilities.
Disease Screening Organized for Female Employees in
Dongguan Factory
Case｜ Dongguan Factory Organized Free Breast and Cervical Disease Screening
In November 2023, the Dongguan Factorycollaborated with the Dongguan Federationof Trade Unions to organize a free breastand cervical disease screening for 300female employees at the factory. This wasaimed to promote women's health and raisewellness awareness.
Mechanical Equipment Safety Training Held by
Jiangxi Factory
Case｜Jiangxi Factory Held Mechanical Equipment Safety Knowledge Training
In May 2023, the Jiangxi Factory held a specializedmechanical safety training session for 56 managementpersonnel. By incorporating actual case studies andanalyzing the root causes of common safety incidents,the training helped participants effectively absorbrelevant knowledge about mechanical equipmentsafety.
Chemical Safety Training
The total number of contractors thatattended the EHS training was5,820person times
During the Reporting Period
Safeguarding Employees' Physical and Mental HealthWe have always placed great emphasis on our employees' physical and mental well-being. We regularly organizeemployee physical examinations, vaccinations, and other campaigns. We have also established various sports clubsand organized outdoor activities to encourage employees to exercise during their free time and enhance theirphysical fitness.
The Company also highly cares about employees'mental health. During the Reporting Period,we collaborated with external professionalorganizations to launch a mental wellnessproject. We also organized multiple mentalhealth knowledge lectures, mental healthknowledge competitions, mindfulness stressrelief camps, and various other mental healthactivities, which were widely recognized andparticipated in by employees.
Protection of Rights andInterestsEmployee Well-beingTalent Recruitment andRetentionTalent DevelopmentOccupational Health andSafety
The Path to DevelopmentStriving Forward Together forHarmonious Future
A supply chain management mode that delivers environmental,social and economic benefits is crucial to boost a Company'score competitiveness from multiple dimensions. LuxsharePrecision incorporates sustainability assessments into itsprocurement decisions and supplier management, is commitedto building a sustainable supply chain management system, topromote the transition into a high-quality, green and low-carbonsupply chain. Additionally, we pay attention to and respond tothe actual needs of the communities, joining hands with partnersto build a harmonious and healthy society.
●
Responsible Supply Chain Management
●Community Engagement
People-oriented Approach
Appendix
The Path to Development
2023 Sustainability Report
Leading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Supply Chain Management System
Luxshare Precision has formulated a series of management systems and procedures, such as theSupplier Code of Conduct
and theSupplier Management Operating Procedure, to establish the high standards for supplier behaviors in areas such aslabor rights and environmental responsibility. The Company implements full life cycle management of suppliers through threestages: development access, tiered management, and evaluation and audit.During the Reporting Period, we added provisions for the introduction and referral process of temporary suppliers in the
Supplier Management Operating Procedure, requiring first-tier suppliers to manage their suppliers (second and third-tiersuppliers of the Company) and implement corresponding processes, which furtherly improves the Company's suppliermanagement system.
Development AccessLuxshare Precision formulates an annual admission review plan for potential suppliers and conducts strict qualificationreviews of suppliers by ISO-approved auditors, in accordance with the admission standards stipulated in theSupplierAdmission Operating Procedure, theElectronic Material Supplier Admission Mechanism, and other procedures.
Requirements of System Certification for Supplier Admission
Quality Management System CertificationISO 9001, IATF 16949, ISO 13485, TL 9000, QC 080000, SONY GP or third-party quality system certifications of other categoriesConsumer Electronics?At least certified in one of ISO 9001,
IATF 16949, and ISO 13485
Automotive Electronics? Certified in ISO 9001?Certified in IATF 16949 or has established an IATF 16949certification introduction planSocial Responsibility System CertificationISO 14001, OHSAS 18001, ISO 45001, SA 8000, RBA-VAP or third-party social responsibility system certifications of other categories
Number of Suppliers in 2023
Supplier Admission Threshold
Investigation
Supplier Capability BaselineInvestigation
Management System
Audit
Investigate the supplier'squalifications, finances,organization, capabilities, systems,and inspection conditions
Investigate the supplier'sproduction equipment, testingequipment, technical processcapabilities, quality control andenvironmental control capabilities
Audit the supplier'smanagement system
Annual Supplier Admission Review Plan
Categorizedby Region
Categorized
by TypeService providers
Suppliers of raw and
auxiliary materials
2,143
Overseas suppliers1,6677,381
Chinese suppliers
7,857
Tiered ManagementAfter the admission of new suppliers, the Company adopts a monthly performance evaluation method to continuouslygrade and manage suppliers, in order to ensure product and service quality as well as supply chain stability. We conduct acomprehensive scoring from multiple dimensions such as technical ability, quality ability, delivery and supply ability, costleadership ability, environment and business ethics, and classify suppliers into four grades: A, B, C, and D.During the Reporting Period, Luxshare Precision distributed supply chain impact survey questionnaires/risk managementquestionnaires to suppliers and developed an online risk warning map program, systematically and intelligently controllingsupply chain risks and ensuring business continuity.
Tiered Supplier Management Standards
Grade A/BGrade CGrade D
Grades in MonthlyPerformance Appraisal
Management Measures
Prioritized for future cooperation
No contract renewal or new contracts awarded; required to suspend supply, and providedwith guidance for improvement; if all improvements are implemented, supply will be allowedand monitored continuously, otherwise supplier qualification will be revoked
Required to provide an improvement report, with effects to be tracked, and may besubject to on-site audits if necessary; supplier qualification will be revoked if twoconsecutive audits are failed
Total number of
suppliers
9,524
During the review process, we communicate and promote the Company's supplier management standards, productquality and environmental standards, RBA standards and requirements to our suppliers, and require potential suppliers tosign theEnvironmental Assurance Letter,Letter of Guarantee on Responsible Business Alliance Code of Conduct,Letter of Integrity Commitment for Supplier, and other documents.Suppliers must obtain at least 1 quality system certification and 1 social responsibility system certification to beincluded in the list of potential suppliers. In 2023, we further refined the admission requirements for suppliers, clarifyingthe basic quality system certification requirements for consumer electronics and automotive electronics suppliers.
Supply Chain ManagementSystemConflict Minerals ManagementGreen Supply ChainGiving back to the Society
People-oriented Approach
Appendix
The Path to Development
2023 Sustainability Report
Leading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Evaluation and AuditLuxshare Precision conducts annual annual audits on its suppliers through a combination of online and on-sitemethods, with audit criteria consistent with the admission review, so as to regularly assess whether qualified suppliersmeet compliance requirements. In 2023, we continued to promote the application of the SRM system, with nearly100% of suppliers already included in the system for management, comprehensively enhancing the efficiency ofauditing, ensuring the retrievability and traceability of records, and promoting the systematization and standardizationof the Company's annual supplier audits.Supplier TrainingLuxshare Precision values supplier capability building. We communicate with suppliers through one-on-oneexchanges, quarterly business reviews, specialized trainings, workshops, supplier conferences, and othermethods to jointly identify areas for improvement and discuss optimization directions.
During the Reporting PeriodThe number of suppliertraining sessions organized byLuxshare Precision was
Had a cumulativeattendance of
participants
5,529
Environmental and Social Responsibility Management
Luxshare Precision places great emphasis on theenvironmental and social responsibility managementof its supply chain. We require suppliers to complywith the framework ofUN Guiding Principles onBusiness and Human Rights, the RBA Code of Conduct,all applicable laws and regulations, as well as theSupplier Code of Conduct, Supplier Corporate SocialResponsibility Management Operating Procedure,and other internal management regulations. We alsoissue theLetter of Guarantee on the ResponsibleBusiness Alliance Code of Conductto all suppliers,ensuring 100% awareness of and compliance withenvironmental and social responsibility requirementsthrough comprehensive promotion. Any violation ofrelevant management regulations may jeopardize thecooperative relationship between the supplier andthe Company, and even lead to termination of thepartnership at the worst.
During the Reporting Period
The signing rate of theLetter ofGuarantee on Responsible BusinessAlliance Code of Conductby newsuppliers was100%
In 2023, Luxshare Precision completed the development of the GSCM information management system whichincluded a Social Environmental and Responsibility (SER) auditing module. This module enables online managementof processes such as information collection, risk assessment, evaluation and auditing of suppliers, supportingthe Company's efforts to digitize and systematize supplier CSR management while ensuring auditing security and
traceability, as well as reducing costs and increasing efficiency.
Functions of SER Module
Introduction ofsupplier profile
Initiation ofgraded riskassessment
Initiation ofsupplier SER audit
Review planmanagement
Management ofmissing items insupplier SER audit
Systemoperationprocesses
Carbonemissionsand energymanagementConflictmineralsmanagement
Wastemanagement
Updatesto suppliermanagementsystemsHazardoussubstancemanagement
Anti-corruptionand businessethicsSustainablewatermanagement
CSRmanagement
EHS
Diversity andinclusionrequirements
Topics of Supplier Training
Supply Chain ManagementSystemConflict Minerals ManagementGreen Supply ChainGiving back to the Society
People-oriented Approach
Appendix
The Path to Development
2023 Sustainability Report
Leading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Audit CriteriaAudit Contents
Rectification ItemsCompletedManagement System
ESG Management System Training Communication
Employee feedback, engagement, and appeals Corrective action process Supplier responsibilities
EnvironmentalManagement
Environmental permits and reports Pollution prevention and control
Energy conservation and emission reduction Hazardous substances
Labor Management
Prohibition of child labor and forced labor Right of free association Anti-discrimination and anti-harassment
Humanitarian treatment Compliance in working hours Compliance in remuneration
Occupational Health andSafety Management
Occupational safety Emergency plan Prevention and control of occupational diseases Industrial hygiene
Physically demanding work Machine safety guards Public hygiene, food, and accommodation
Business EthicsManagement
Business integrity Fair trade, advertising, and competition Identity protection and anti-retaliation policy Privacy protection
Conflict minerals management Intellectual property protection Information disclosure
Conflict MineralsManagementLuxshare Precision does not directly purchase or use mineral ores,but the materials and components necessary for our productionmay contain metals such as 3TG and cobalt. Committed toresponsible mineral procurement, the Company continuouslyimproves conflict minerals management procedures, and strives toensure that all materials used in our products come from sociallyand environmentally responsible supply chains.Systematic ManagementMechanism
Luxshare Precision complies with international guidelines andinitiatives such as RMI and OECD, continuously promoting
the systematization of conflict minerals management, regularlyupdating management systems such as theConflict MineralsManagement Measures, and managing 3TG, cobalt and othermineral materials. We require all suppliers to comply with the RBACode of Conduct and only procure 3TG from SORs certified byRMAP. SORs that have not passed RMAP certification or do notmeet customer requirements must be removed from the supplychain within a specified period.In 2023, Luxshare Precision participated in RMI, strengtheningits conflict minerals management efforts, enhancing its supplychain conflict minerals management capabilities, and applyingRMI's Reasonable Country of Origin Inquiry (RCOI) procedures tothe 3TG minerals in its products. This has made a contribution topromoting the establishment of a conflict-free supply chain.
CSR Audit for Suppliers
During the risk assessment phase, we conduct supplier CSR risk identification based on theSupplier CSR Risk Identification andAssessment Formto determine the supplier's CSR risk level and avoid cooperating with high-risk suppliers. The audit criteriamainly include management systems, environmental management, labor management, occupational health and safetymanagement, and business ethics management.
During the Reporting PeriodNo majorCSR risks were found insuppliers in 2023
During the Reporting Period
The number of suppliers thatunderwent CSR audits was1,624
The suppliers that completedon-site CSR audits reached
The rate of new suppliers thatunderwent CSR audits was100%
Supply Chain ManagementSystemConflict Minerals ManagementGreen Supply ChainGiving back to the Society
People-oriented Approach
Appendix
The Path to Development
2023 Sustainability Report
Leading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Conflict Minerals Management Process
Sign theLetter
of Guarantee on ResponsibleBusiness Alliance Code of Conduct, etc.
All credentials are met
Promote warehousing andfile building of the supplierConflict minerals managementadvocacy and compliance
Initiate risk assessmentbased on due diligenceinformation
High-risk suppliersImplement risk mitigation plans
until verification is completedSpecialized coachingTrigger CSR audit for projects containing conflict mineralsNon high-risk suppliersFilling and closing
Distribute, collect,and review surveyquestionnaires through theGSCM system
Conduct investigationin conjunction withRCOI program
Identify potential countries of originfor mineral materials in products
Identify suppliers thatmay be involved in theuse conflict minerals
SORs attained conformant statusSORs not attainedconformant status
Develop and implementimprovement plans until SORsare attained conformant status
Filling of duediligence results
Selection
Stage
Supplier Due
Diligence
Risk Assessmentand Mitigation
Initiate due
diligence
Regular training
Supply Chain ManagementSystemConflict Minerals Management
Green Supply ChainGiving back to the Society
People-oriented Approach
Appendix
The Path to Development
2023 Sustainability Report
Leading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Due DiligenceLuxshare Precision conducts reviews of materials and product compositions to identify all suppliers in the Company'ssupply chain that may be involved in the use of 3TG and cobalt minerals, and uses RMI's Conflict Minerals ReportingTemplate (CMRT) and Extended Minerals Reporting Template (EMRT) to conduct due diligence audits on the identifiedsuppliers, assisting them in removing SORs that have not passed RMAP certification. As of the end of the ReportingPeriod, 100% of the SORs involved in the use of 3TG in Luxshare Precision's supply chain had passed RMAPcertification. In the future, we will continue to implement responsible procurement and strive to 100% avoid theuse of conflict minerals.
In 2023, we included the conflict minerals due diligence process into the conflict minerals module of the GSCM system.After identifying suppliers in the supply chain that may be involved in the use of 3TG and cobalt minerals, we used thissystem to distribute, collect, and consolidate CMRT and/or EMRT questionnaires for suppliers, identified and confirmedSORs that have not participated in RMAP certification, and issued timely warnings. We continuously followed up, evaluated,and audited the progress of suppliers in removing non-compliant SORs until all SORs involved in the supply chain werequalified, further enhancing our conflict minerals management capabilities. During the Reporting Period, Luxshare
Precision conducted CMRT surveys with 1,924 suppliers involved in the use of 3TG, with a 100% response rate;conducted EMRT surveys with 1,373 suppliers involved in the use of cobalt, with a nearly 90% response rate.
We combined the RMAP certification audit results and the RCOI tool provided by RMI to investigate the 3TG in theCompany's supply chain and determine the origin countries of the relevant minerals to the greatest extent possible,
ensuring that all 3TG minerals in the Company's mass-produced products are traceable. By cross-referencing theconsolidated SOR information with the RCOI database, we had identified the country location of 216 SORs providing 3TGto our suppliers and determined the potential countries of origin for 3TG minerals in Luxshare Precision's supply chain:
Tantalum may originate from:
Brazil, China, Ethiopia, France, Madagascar,Mozambique, Nigeria, Sierra Leone, Spain, etc.
Gold may originate from:
Benin, Canada, Chile, Papua New Guinea, thePhilippines, South Africa, South Korea, Sweden,Uzbekistan, etc.
Tungsten may originate from:
China, Brazil, Vietnam, Bolivia, etc.
Tin may originate from:
Australia, Bolivia, China, Laos, Malaysia, Mongolia,Myanmar, Peru, Spain, the United Kingdom, Vietnam,etc.
Risk Management
We comprehensively evaluate and define the risk level ofsuppliers based on the due diligence and RCOI survey results.For high-risk suppliers, we will further conduct CSR auditsthat include conflict minerals evaluation to more holistically
assess their conflict minerals management; and we will providemore guidance and support to them, continuously followingup, evaluating, and auditing their progress in SOR certificationand mineral traceability, until verifying that all SORs involved inthe supply chain are qualified. For non high-risk suppliers, weprovide regular education and training, timely sharing the latestinformation and updates on conflict minerals with them to helpenhance their conflict minerals management capabilities andawareness.
Certification of Luxshare Precision's 3TG Suppliers Using SORs
Note: The rate of "In the process of certification / Not participating" was 0
Tantalum
100%
Tin
100%
Gold
100%
Tungste
100%
Total
100%
During the Reporting PeriodConflict minerals related personneltraining coverage rate was
100%
3TG Related Suppliers Performingthe Corresponding ProceduresHaving formulated conflict-freeminerals policy
100%
Having conducted due diligence ontheir upstream suppliers
100%
Luxshare Precision CMRT Due Diligence Results
Supply Chain ManagementSystem
Conflict Minerals ManagementGreen Supply ChainGiving back to the Society
People-oriented Approach
Appendix
The Path to Development
2023 Sustainability Report
Leading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Green Supply ChainBuilding a green supply chain has formed an integral part of Luxshare Precision's green and low-carbon planning to help achieve its scientific carbon reduction goals and improve green competitiveness. Wehave launched theGreen Supply Chain Initiativeto promote green and low-carbon development awareness among our suppliers. We aim to work together to reduce pollution and carbon emissions, andminimize the environmental impact of our entire value chain.Environmental Compliance Management of the Supply ChainTo promote environmental compliance among our suppliersand improve the environmental compliance level throughout oursupply chain, Luxshare Precision has established a specializedgreen supply chain taskforce, and formulated a three-stepenvironmental compliance management strategy: (i) dynamic
monitoring of environmental performance; (ii) supervisionof negative impact elimination; and (iii) establishment andoptimization of management and information disclosuremechanisms.
Environmental Compliance Management Strategy
Use the IPE database to track environmentalcompliance recordsIdentify common environmental managementrisk sources
Oversee our own personnel operation andurge suppliers to eliminate environmentalmanagement risk sources with effective actions
Urge subsidiaries and suppliers to completepollutant release and transfer registration(PRTR) in a timely mannerGuide subsidiaries and suppliers to establisha standardized management system andoptimize it regularly
During the Reporting Period, Luxshare Precision'sperformance in respect of the Green Supply ChainCorporate Information Transparency Index (CITI):
During the Reporting Period, Luxshare Precision
suppliers in removing ofenvironmental violation records
suppliers to disclose thePRTR informationFor industry ranking, in theFor overall ranking, in theplaceplace
th
rd
Assisted
Promoted
Dynamic monitoring ofenvironmental performance
Supervision of negativeimpact elimination
Establishment and optimizationof management and informationdisclosure mechanisms
Supply Chain ManagementSystemConflict Minerals ManagementGreen Supply ChainGiving back to the Society
People-oriented Approach
Appendix
The Path to Development
2023 Sustainability Report
Leading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Zero-carbon Management of the Supply Chain
Luxshare Precision fully recognizes the significance ofenergy conservation and carbon reduction throughout itssupply chain to achieve the Company's carbon reductiongoals. Through supplier meetings, training, and othermethods, Luxshare Precision continues to exert its zero-carbon influence in the supply chain management. In2023, we launched the carbon emission reduction
module of the GSCM system for the first time tocollect energy and carbon emission data from suppliers,simultaneously provided training and Q&A sessions onreporting operations. We also developed a research planof green and low-carbon promotion activities for suppliers,encouraged suppliers to actively participate in carbon dataverification and submit energy conservation cases. Thesemeasures empower suppliers to improve their zero-carbonmanagement and fulfill their commitments in developing agreen supply chain.In addition, we collaborated with IPE to launch theZeroCarbon Supply Chain Initiative, and engaged suppliersin the product carbon footprint data estimation, disclosureand application training provided by IPE, with an aim topromote suppliers to disclose carbon emission informationon the IPE platform, and to catalyze the supply chaintowards a fully-fledged green transformation.
Poster of the Green and Low-carbonSupplier Conference
-13:45开
| 13:30 | 开 |
场
致
场
致
辞
| 辞 | ||
| 13:45 | ||
-14:10
IPE绿
色
| 色 |
供
应
| 应 |
链
建
| 建 |
设
实
| 实 |
践
--公众环境研究中心
| 践 | ||
| 14:10 | ||
-14:40
节
能
| 能 |
减
排
| 排 |
案
例
| 例 |
分
享
| 享 |
--天工之城
-15:10
ISO14067产
14:40
产
品
| 品 |
碳
足
| 足 |
迹
认
| 认 |
证
流
| 流 |
程
介
| 介 |
绍
--SGS通标标准
| 绍 | ||
| 15:10 | ||
-15:20中
场
| 场 |
休
息
| 息 |
15:20
-15:50可
15:20
可
持
可持
续
| 续 |
水
管
| 管 |
理
与
| 与 |
废
弃
| 弃 |
物
零
| 零 |
填
埋
| 埋 |
介
绍
| 绍 |
--安佑环境
-16:00立
| 15:50 | 立 |
讯
多
| 多 |
元
化
| 化 |
介
绍
| 绍 |
及
要
| 要 |
求
求
16:00
-16:50
立
16:00立
讯
| 讯 |
GSCM绿
色
| 色 |
供
应
| 应 |
链
管
| 管 |
理
系
| 系 |
统
介
| 介 |
绍
--碳排放/SER / GP /冲突矿产管理
| 绍 | ||
| 16:50 | ||
问
答
| 答 |
●会
议
| 议 |
议
程
| 程●●活活动动报报名名扫扫码码报名或复复制制链接到浏览器：https://tnlak.h5.xeknow.com/sl/3KTfR1注: 若打开页面不对，请关掉页面重新复制此链接再打开一次. |
2023年
立
| 立 |
讯
可
| 可 |
持
续
| 续 |
发
展
| 展 |
暨
绿
| 绿 |
色
低
| 低 |
碳
供
| 供 |
应
商
| 商 |
大
会
| 会 |
2023年12月20日星期三13:30-16:50线上直播
【主办】立讯精密工业股份有限公司【承办】SGS通标标准技术服务有限公司
Case Luxshare Precision Convened 2023 Sustainable Development & Green
and Low-carbon Supplier Conference
On December 20, 2023, Luxshare Precision held the 2023 SustainableDevelopment & Green and Low-carbon Supplier Conference online.We shared our key actions in developing the green supply chain withsuppliers, presented the GSCM system at the conference. We alsoinvited specialized third parties to share the best practice of greensupply chain development, case studies of energy conservationand emission reduction, ISO 14067 product carbon footprintcertification, sustainable water management, zero waste to landfilland other green and low-carbon management expertise, in order toassist suppliers in boosting their zero-carbon management roundly.
Case Selected Cases About Suppliers' Energy Conservation and Emission ReductionSupplier 1: Energy Consumption Management for Air Compressors
The supplier implements a smart energy consumption management platform, which enables real-timemonitoring, fault diagnosis, report analysis and presentation for operations status of air compressors andother equipment in the industrial park, as well as automatic start and stop of air compressors basedon the changes in gas consumption in the workshop. At the same time, the platform can realize alarmmanagement, analysis report management, system management and other functions to achieve the goal ofenergy conservation and emission reduction. The annual emission reduction is up to 3,660 tCO
e
Supplier 2: Install Rooftop PV
The supplier has installed solar panels on the rooftops of the dormitories in the factory to distribute PV-generated power to the distribution room. The annual power generation amounted to 60,000 kWh withannual emission reduction of 43.08 tCO
e
Supplier 3: Reasonably Reduce Air Conditioner Usage
For the purpose of cooling, the supplier has installed ventilation devices and water spray fans in theworkshop, and used the heat discharged from the working compressed air to heat the workshop in winter,which has reasonably reduced the working time of the air conditioners in winter, saving approximately 14.4million kWh of electricity per year, which is translated into a reduction of about 900 tCO
e
Supplier 4: Lighting Energy Saving Renovation
The supplier has replaced the incandescent lamps in the office area with energy-saving lamps, raisedemployees' awareness of energy conservation and emission reduction by developing the good habit ofturning off lights and electrical appliances in time. As a result, the annual electricity consumption wasreduced by 1,629 kWh
During the Reporting Period
15,890
MWh
Provided survey coaching in connectionwith green and low-carbon survey for
The number of suppliers promotedto disclose their carbon emissioninformation on the IPE platform was
Promoted suppliers save energy
suppliers
Supply Chain ManagementSystemConflict Minerals ManagementGreen Supply Chain
Giving back to the Society
People-oriented Approach
Appendix
The Path to Development
2023 Sustainability Report
Leading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
We continuously improve the functionality of the GP module of the GSCM system, systematically manage hazardoussubstances in the supply chain, and provide support for green procurement. The system has a built-in database of basicchemical substances, as well as a database of the Company's requirements for control of hazardous substance for variousmaterials, allowing for the standardized management of environmentally friendly materials submitted by suppliers. We areable to trace the substances contained in the materials through system queries, conduct forward-looking investigations in thewake of new hazardous substances prohibition and restriction trend, and develop strategies (e.g. early layout and replacement)accordingly. We also communicate updates on relevant laws and regulations, industry trends, and the latest hazardous substancecontrol requirements of Luxshare Precision to our suppliers to facilitate their learning and compliance. At present, the GP
module of the GSCM system has been embedded into the Company's product R&D and procurement processes,ensuring the effective communication and implementation of hazardous substance control requirements.
Hazardous Substance Management Requirementsof the Supply Chain
As the connection point between customers and suppliers, Luxshare Precision understands that providing clear materialrequirements to suppliers is an important prerequisite for providing high quality and environmentally friendly products tocustomers. We set consistent standards for suppliers, so as to drive the suppliers to improve hazardous substance managementand reduce supply chain risks.
Hazardous Substance Management Requirements of the Supply Chain
Green and Compliant Part Approval Management
1. Develop Bill of
Material (BOM)
2. Notify material need
4. Communicate need for
control of hazardoussubstance
6. Review information
for control ofhazardous substance
5. Upload information for
control of hazardoussubstance
9. Issue formal Purchase
Order (PO)
7. Pass hazardous
substance control audit
8. Approve material need
Engineering R&D
Environmental
specialist
SAP system
Luxlink system
Supplier
EntryConditions
ChangeManagement
RegularAudit
Replacementor Reduction
Require raw material suppliers to sign theLetter of Guarantee for EnvironmentalProtection to ensure that raw materials, components, packaging materials, semi-finished products and finished products supplied to Luxshare Precision meet themanagement requirements of theManagement Standard for Restricted Substancesof Materials and Finished Products
Timely communicate with and require suppliers to complete self-inspection, feedbackand confirm compliance within the prescribed time limit after theManagement Standardfor Restricted Substances of Materials and Finished Productsis updated. Suppliers arerequired to proactively report changes related to raw material properties and otheraspects in accordance with the relevant change management requirements of theCompany. They should also provide relevant information and samples as appropriated,so as to effect the change in the supply upon approval.Conduct regular audits related to the control of hazardous substances, check theproduct ingredient list and third-party hazardous substance testing report, and sendit to the Company's internal laboratory for hazardous substance testing to preventthe non-environmentally friendly materials and products from flowing into theCompany's product chain
Actively carry out the replacement or reduction of hazardous chemical substances,and phase out hazardous chemical substances or replace them with safer chemicalsubstances as soon as practicable
GP module of the
GSCM system
3. Capture material
information
Supply Chain ManagementSystemConflict Minerals ManagementGreen Supply ChainGiving back to the Society
People-oriented Approach
Appendix
The Path to Development
2023 Sustainability Report
Leading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
The China Charity Federation Issued a "Flood Disaster Relief" Certificate
Giving back to the Society
Drive the Development of the Industry
Luxshare Precision actively participates in variousindustry associations, networks with the industry, andpromotes industry development. At the same time,we also take the lead in developing communities,supporting disaster relief efforts and rural revitalization,caring for special groups, and making contributions tothe buildup of a harmonious society.
Luxshare Precision attaches great importance to product quality and is committed to providing customers withhigh-quality, comfortable and easy-to-use products. We actively explore ways to put scientific and technologicalresearch results into applications. We have joined more than 50 industry associations at home and from abroad,and serve as the vice-chairman unit of the China Electronic Components Association. By combining the advantagesof the membership unit, the Company has driven the development of the industry. During the Reporting Period, theCompany made contributions to the industry by jointly drafting industry standards, e.g."Shielded Balanced Cablefor Road Vehicles with Bandwidth up to 10GHz" andDetailed Specification for Rectangular Data TransmissionConnector with Shielded Housing and Transmission Rate of 112Gbps at 0.60mm Pitch.
During the Reporting Period
millionThe total investment the Companymade in public charity activities wasRMB
12.63
Support Public Charity ActivitiesThe company is deeply concerned about the impact of natural disasters on the public. We actively practice ourexemplary role and take immediate actions at the onset of disasters. We actively raise funds and support peopleaffected in the disaster-stricken areas within our capacity. At the same time, we care for disadvantaged groups, helppromote rural revitalization and green development, and give full play to the role of the public welfare undertakingsin achieving common prosperity and low-carbon life.
Case Luxshare Precision Participated in Exchanges Held by Industry AssociationsIn August 2023, Luxshare Precision participated in the "Ninth Membership Representative Conferenceand 2023 China Electronic Components Industry Summit" held by the China Electronic ComponentsAssociation in Nantong, Jiangsu Province. At the meeting, Luxshare Precision was appointed as the vicechairman unit of the association, and obtained the "Outstanding Contribution Award" in recognition of theCompany's contributions to the electronic components industry.In October 2023, we, as an invited guest, participated in the "Fourth Session of the Ninth MembershipConference of the Electrical Connector Branch of China Electronic Components Association and the 2023(12th) Connector Technology Development Seminar", and published theBrief of CRE Connector Designatthe conference and won the Third Prize for Excellent Paper, promoting the development of the electroniccomponents industry.In October 2023, Luxshare Precision was invited to attend the 2023 IPC China Electronic Manufacturing AnnualConference – ESG Sustainable Development Forum jointly held by the Association Connecting ElectronicsIndustries (IPC) and Pudong New Area Association of Quality and Technologies, Shanghai. Under the themeof "Responding to the ESG requirements of customers and markets, improving international competitiveness",Luxshare Precision gave an introduction to the Company's sustainability drivers and ESG strategies as wellas an in-depth analysis of key ESG fields in the industry from the perspective of enterprises along the supplychain, setting a model and an example of ESG development practice for reference for the industry.
Case Luxshare Precision was Fully Committed to Supporting the Post-disaster
Reconstruction in Zhuozhou, Hebei ProvinceIn July and August 2023, the No. 5 Typhoon Doksuri, brought extreme heavy rainfall to Beijing, Tianjin,Hebei, Fujian, and other regions, triggering floods and geological disasters. The lives and property of thepeople were severely threatened. On August 4, the Company donated RMB10 million to the China CharityFederation through Luxshare Precision Industry (Baoding). The donation would be used for disaster relief,rescue, and post-disaster reconstruction in the severely affected areas of Zhuozhou, Hebei Province.
Supply Chain ManagementSystemConflict Minerals ManagementGreen Supply ChainGiving back to the Society
People-oriented Approach
Appendix
The Path to Development
2023 Sustainability Report
Leading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
In November 2023, Luxshare Precision donated RMB500,000 to the Beijing GuangcaiCharity Foundation. The donation would be used to consolidate results obtainedfrom poverty alleviation in Zhijin County, Guizhou Province, further expand theeffect, help rural revitalization, and support production and living service assistanceprograms, and other public welfare assistance programs agreed upon by the threeparties.
Upholding the traditional virtues of respecting and loving the elderly, employees ofLuxcase Precision Technology (Yancheng) brought glutinous rice balls, lanterns, andgifts to the nursing homes and extended holiday greetings and deep care to theelderly living there on the Lantern Festival. This activity aims to make the elderlyfeel the warmth and care of the society, so that they can spend a warm and happyholiday time.
Case Luxshare Precision Joined Hands with Beijing Guangcai
Charity Foundation in Public Charity Assistance Programs
Case LuxcaseICT Yancheng Held Caring Activities for Nursing
Homes
Case Kunshan Factory's Series Activities - Energy Conservation Week
On July 11, 2023, the Energy Saving Publicity Week theme publicity activity co-organized by Luxshare Precision Kunshan Factoryand Kunshan Tourist Resort Management Committee officially kicked off. During the event, the Company organized an arrayof activities, including"Old Clothes Recycling","Creative Gallery" and"Donating Steps for Environmental Protection", with activeresponse and participation by various departments.
Old Clothes Recycling：This year marked the fourth anniversary of old clothes recycling activity with more than 128kg idle
clothes and hat textiles collected in total
Creative Gallery：The activity is open to all employees and their children to submit creative environmental paintings with an aimto educate people and advocate for a green lifestyle through artworks
Donating Steps for Environmental Protection：Employees can convert their daily walking steps into charitable donations.Through the cooperation platform, the participating charitable organizations and enterprises will donate to the respective publicwelfare programs. More than 200 people participated in the event.
Series Activities of Energy Conservation Week
Old Clothes Recycling
Caring the Elderly on the Lantern Festival
Supply Chain ManagementSystemConflict Minerals ManagementGreen Supply Chain
Giving back to the Society
7676
The Path to Development
Appendix
2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
AppendixAssurance Report
附录
Independent Assurance Statement
IntroductionT?V Rheinland (Shanghai) Co., Ltd., member of T?V Rheinland Group, Germany (hereinafter “T?V Rheinland”,“We”) has been entrusted by the management of Luxshare Precision Industry Company Limited (hereinafter “LuxsharePrecision”, “the Company”) to conduct independent assurance of its 2023 Sustainability Report (hereinafter “theReport”). All contractual contents for this assurance engagement rest entirely within the responsibility of LuxsharePrecision. Our task was to give a fair and adequate judgment on the Report.The intended users of this assurance statement are stakeholders who have relevance to Luxshare Precision’s overallSustainability Performance and impacts of its business activities during year 2023 (1 January 2023 ~ 31 December 2023).T?V Rheinland is a global service provider of Corporate Social Responsibility (CSR) & Sustainability Services in over 65countries, having qualified professionals in the field of Corporate Sustainability Assurance, Environment, Social andStakeholder Engagement. We have maintained complete impartiality and independence during the assuranceengagement, and we were not involved in the preparation of the Report contents.
Assurance StandardT?V Rheinland undertook the assurance work in accordance with the AA1000 Assurance Standard v3 (AA1000AS v3)Moderate level of assurance.
Scope & Type of Assurance
Our assurance engagement was carried out in accordance with the AA1000AS v3, Type 1, Moderate level on LuxsharePrecision’s sustainability performance information and data disclosed in the Report. The following assurance criteriawere used in performing the assurance work:
? In accordance with GRI Sustainability Reporting Standards (GRI Standards)? Guidelines for the Social Responsibility of Listed Companies of the Shenzhen Stock Exchange? The United Nations Sustainable Development Goals (UN SDGs)? Adherence to the AA1000 AccountAbility Principles of Inclusivity, Materiality, Responsiveness, and Impact.
Assurance MethodologyOur assurance activities included:
? Reviewing the company’s management practices, processes, and performance to evaluate the sustainabilitymanagement system, including the sustainability policy, corporate governance, compliance management, riskmanagement, stakeholder communication, material issue analysis, and key performance.? Conducting interviews with company management and managers responsible for gathering and analyzing
information on sustainability performance.? Reviewing and examining sustainability management practices and performance information and data to testthe accuracy of such information and data based on a sample basis and applied analytical procedures.? Collecting documentary evidence and assessing management representations to support adherence to the
AccountAbility Principles.
Limitations
T?V Rheinland performed the assurance based on the scope of defined engagement agreement, and on a moderate levelassurance under the AA1000AS for engagement. Information and performance data subject to assurance is limited tothe contents of the Report.Our assurance work did not cover financial report and its financial data, and other information not related to
sustainability.Conclusions
Based on our methodology and activities performed within the scope of this assurance, we can reach a conclusion thatno instances or information came to our attention that would be to the contrary of the statement made as below:
? Luxshare Precision 2023 Sustainability report and its contents adhere to the AA1000 AccountAbility Principles
and meet criteria requirements in accordance with GRI Sustainability Reporting Standards (GRI Standards).? Luxshare Precision has implemented management processes, including wastes, energy and carbon emissionsdata management systems to collect and aggregate key performance data related to material issues within thereporting boundary, while the company identifies, evaluates, defines and manages material issues.? The sustainability-related information and performance indicators disclosed in this report have been evaluatedand supported by documentary evidence to truly reflect Luxshare Precision’s sustainability managementpractices.T?V Rheinland shall not bear any liability or responsibility to a third party for perception and decision on LuxsharePrecision based on this Assurance Statement.Adherence to the AA1000 AccountAbility PrinciplesInclusivityLuxshare Precision has established procedures of ESG information disclosure and stakeholder communication. Keystakeholders identified by the company include governments and regulators, shareholders and investors, suppliers,customers, employees, customers, communities, partners and the media. The company conducts regular stakeholdercommunication through multiple channels to understand and respond to stakeholder concerns about sustainabilityissues. Supporting evidence demonstrates that in 2023, Luxshare Precision conducted a stakeholder questionnaire surveyon sustainable development issues, and actively responded to stakeholders' concerns about the company’s “DualCarbon” planning, ESG goals, and environmental management system through ESG special investment exchangeactivities.
Materiality
Supporting evidence indicates that Luxshare Precision conducted material issues assessments in 2023 based on theresults of stakeholder questionnaire analysis and seeking expert opinions. The company evaluates and prioritizes the2023 sustainability issues from the dual dimensions of “sustainability impact materiality” and “financial impactmateriality”, including the impact analysis of materiality issues on the value chain. The results of the materialityassessment were reviewed and approved by the Board of Directors to form a Dual Materiality Matrix. As shown in thematrix diagram, the high-materiality issues disclosed in this report include, but are not limited to, net-zero commitmentsand carbon management, climate change risks and opportunities, occupational health and safety, employee rightsprotection, and employee training and development. According to the results of the materiality assessment of the aboveissues, Luxshare Precision has formulated and implemented an internal action plan, which is disclosed in this report.Responsiveness
Luxshare Precision responds to its key stakeholders in a variety of ways, including information disclosure, investorcommunication activities, employee training, online customer communication platform, supplier training andempowerment, and community welfare activities. The evidence shows that in 2023, the company values the complaintsraised by stakeholders about the impact on the company’s sustainable development, and regularly shares and providesfeedback on the remedial measures taken by the company to ensure that the relevant procedures are open, transparentand effective. The company’s official website also discloses a statement on the Protection of Labor and Human Rights.This report discloses data on key performance indicators (KPIs) that stakeholders are interested in, covering energyconsumption, greenhouse gas emissions (including Scope 3 emissions), other significant gas emissions, wastemanagement, sustainability water management, employee management and training, anti-corruption, occupational healthand safety, and supply chain management, and these data disclosures are comparable. Supporting evidence reflects thatLuxshare Precision participated in the formulation of industry carbon management guidelines and standards in 2023 andlaunched the “Towards Zero Carbon Supply Chain Initiative” in collaboration with the Institute of Public and
Environmental Affairs (IPE) and upgraded the GSCM information management system to launch the carbon module.In addition, the company joined the RMI and published an annual Conflict Minerals Survey Report.ImpactLuxshare Precision focuses on the analysis of the environmental and social impact of its own operations and supplychain and integrates risk management and compliance management into its business operations. Supporting evidencedemonstrates that in 2023, the company continued to improve its risk management mechanism to identify, assess andcontrol strategic risks, operational risks, compliance risks and information security risks, including climate change risksand labor relations risks. The company pays attention to the labor rights and interests of itself and its suppliers, includingthe development of a labor risk management framework, and is able to conduct regular supply chain CSR riskassessments, and initiates a supply chain conflict minerals due diligence process. Luxshare Precision sets goals andtargets related to sustainable development, and considers and manages the impact of materiality issues on the valuechain.
Daniel PanCorporate Sustainability Service Technical ManagerT?V Rheinland (Shanghai) Co., LtdShanghai, China, 9 April 2024
7777
The Path to Development
Appendix
2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Key Performance DataEnvironmental Performance Table
IndicatorUnit20232022GRI 302-1 Energy consumption within the organization
1 2Non-renewable energy consumptionMWh209,373.45265,951.63 GasolineMWh4,669.943,851.59 Diesel oilMWh6,223.415,064.01 Liquefied petroleum gasMWh216.09109.61 Natural gasMWh198,264.01256,926.42Renewable energy consumptionMWh79,062.6140,389.48 Biomass energy (ethanol gasoline)MWh406.46288.76 PV power generation for self-useMWh78,656.1540,100.72Purchased municipal electricityMWh2,497,635.612,826,377.34Total PV power generationMWh78,656.1541,021.89Purchased green electricityMWh755,796.54271,619.41Purchased green certificatesMWh788,326.00301,490.00Purchased thermal energyMWh0.00327.23Purchased cold energyMWh0.000.00Purchased steamMWh35,298.05428.53PV power soldMWh0.00921.17Total energy consumptionMWh2,821,369.723,133,474.21
IndicatorUnit20232022GRI 302-3 Energy intensityEnergy consumption intensity per unit of businessrevenue
MWh/RMB 1million
12.1714.64
Electricity consumption intensity per unit of businessrevenue
MWh/RMB 1million
11.1113.21
GRI 302-4 Reduction of energy consumptionAnnual electricity savingsMWh143,893.50189,975.21Installed photovoltaic capacity
MW85.2954.64GRI 303-3 Water withdrawalTotal water withdrawalML24,574.1824,476.90
Surface waterML0.000.00 Groundwater (renewable)ML2.526.29 Groundwater (non-renewable)ML0.000.00 SeawaterML0.000.00 Extracted/entrained water/generated waterML0.000.00 Third-party water sourcesML24,571.6624,470.61Total water withdrawals in areas under waterresources stress
ML4,237.354,204.99GRI 303-4 Water dischargeTotal water dischargeML22,379.9522,492.04Total discharge to surface waterML0.000.00
The Company's main energy consumption sources are natural gas, gasoline, diesel, liquefied petroleum gas, power generated by PV power facilities, outsourced electricity from municipal power supply, outsourced clean energy and outsourced steam. Data of the energyconsumption in 2022 was verified data.
Data of the energy consumption in 2023 is based on the electricity and fuel consumption and relevant conversion factors provided by theGeneral Rules for Calculation of Comprehensive Energy Consumption (GB/T 2589-2020).
Total installed photovoltaic capacity is the total installed rooftop photovoltaic capacity of the Company as of the end of the Reporting Year.
During the Reporting Year, the Company verified and updated the data related to water withdrawal for 2022.
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About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
IndicatorUnit20232022Total discharge to groundwaterML0.000.00Total discharge to seawaterML0.000.00Total discharge to third-party organizationsML22,379.9522,492.04Total industrial wastewaterML6,328.266,111.67Total domestic sewage dischargeML16,051.6916,380.38Total discharge in areas under water resourcesstress
ML3,773.773,773.17Times of administrative penalties for sewagedischarge of the Company
Times00GRI 303-5 Water consumptionTotal water consumptionML2,194.231,984.86Total water consumption in areas under waterresources stress
ML463.58431.82GRI 305-1 Direct (Scope 1) GHG emissions
1 2Total Scope 1 Greenhouse Gas emissionstCO
e64,910.5993,645.54Total CO
emissionstCO
e44,851.6556,787.76Total CH
emissionstCO
e16,921.8320,986.60Total N
O emissionstCO
e105.90134.26Total HFCs emissionstCO
e3,031.2115,736.87Total PFCs emissionstCO
e0.000.00Total SF
emissionstCO
e0.000.00
IndicatorUnit20232022Total NF
emissionstCO
e0.000.00Biogenic CO
emissionstCO
e103.2858.9GRI 305-2 Energy indirect (Scope 2) GHG emissionsTotal (Location-based) Scope 2 Greenhouse Gasemissions
tCO
e1,571,514.241,755,406.64Total (Market-based) Scope 2 Greenhouse Gasemissions
tCO
e610,143.261,385,529.8GRI 305-3 Other indirect (Scope 3) GHG emissions
Total Scope 3 Greenhouse Gas emissionstCO
e5,902,511.906,609,751.98Category 1: Purchased Goods and ServicestCO
e2,014,192.98 3,325,446.59Category 2: Capital GoodstCO
e135,396.76 218,591.07Category 3: Fuel and Energy-related Activities(excluded in Scope 1 or Scope 2)
tCO
e380,358.40409,512.71Category 4: Upstream Transportation andDistribution
tCO
e736,135.72 414,219.81Category 5: Waste Generated in OperationstCO
e29,264.53 77,868.03Category 6: Business TraveltCO
e8,040.59 2,319.80Category 7: Employee CommutingtCO
e50,030.14 48,401.59Category 8: Upstream Leased AssetstCO
e67,043.61 4,110.92Category 9: Downstream Transportation and DistributiontCO
e104,323.11 124,995.72
Due to the nature of the Company's business, greenhouse gas emissions mainly come from outsourced municipal electricity, outsourced steam and fossil fuel combustion. The list of greenhouse gases includes carbon dioxide, methane and nitrous oxide, hydrofluorocarbons.Greenhouse gas emissions are presented in terms of carbon dioxide equivalent. Greenhouse gases in 2023 are based onthe General Rules for Calculation of Comprehensive Energy Consumption (GB/T 2589-2020)promulgated by the State Administration for Market Regulationand the Standardization Administration of China,IPCC Sixth Assessment Report issued by the Intergovernmental Panel on Climate Change (IPCC), 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Guidelines for Provincial Greenhouse Gas Emission Inventories (forTrial Implementation), Chinese Mainland Power Grid Emission Factors (for adoption in Chinese Mainland and Taiwan) and Vietnam Electricity Emission Factors (for adoption for factories in Vietnam). Some Scope 3 GHG emissions are based on the2023 Government GreenhouseGas Conversion Factors for Company Reporting promulgated by the Department for Business Innovation and Skills (BIS) and Department for Environment, Food and Rural Affairs (DEFRA) and the simapro database.
The carbon emission data (Scope 1 and Scope 2) for 2022 have been updated to verified data, and the data of greenhouse gas emission intensity have been updated accordingly.
In the verification process of scientific carbon reduction goals, the accounting method for some of verified carbon emission data for the base year (2022) was adjusted for update according to the requirements of SBTi.
Environmental Performance Table (Continued)
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About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
IndicatorUnit20232022Category 10: Processing of Sold ProductstCO
e277,883.98112,695.63Category 11: Use of Sold ProductstCO
e1,985,053.44 1,815,113.12Category 12: Scrap Processing of Sold ProductstCO
e17,461.2226,658.18Category 13: Downstream Leased AssetstCO
e30,389.1323,019.41Category 14: FranchisestCO
e//Category 15: InvestmentstCO
e66,938.296,799.4GRI 305-4 GHG emissions intensityTotal Scope 1 & Scope 2 (Location-based)Greenhouse Gas Emissions
tCO
e1,636,424.831,849,052.18Total Scope 1 & Scope 2 (Market-based) GreenhouseGas Emissions
tCO
e675,053.851,479,175.34Scope 1 & Scope 2 (Location-based) GreenhouseGas Emission Intensity
tCO
e /RMB 1million
7.068.64
Scope 1 & Scope 2 (Market-based) Greenhouse GasEmission Intensity
tCO
e /RMB 1million
2.916.91
Scope 1 Greenhouse Gas Emission Intensity
tCO
e /RMB 1million
0.280.44
Scope 2 (Location-based) Greenhouse Gas EmissionIntensity
tCO
e /RMB 1million
6.788.20
Scope 2 (Market-based) Greenhouse Gas EmissionIntensity
tCO
e /RMB 1million
2.636.47
GRI 305-5 Reduction of GHG emissionsTotal reduction of GHG emissionstCO
e1,100,057.45512,010.64
IndicatorUnit20232022
GRI 305-7 Nitrogen Oxides (NOx), Sulfur Oxides (SOx), and other significant air emissionsTotal exhaust gas emissionst314.24304.19Boiler exhaust gast9.655.48Kitchen fumet4.145.15Industrial exhaust gast298.95258.21Nitrogen Oxides (NOx) emissionst40.336.03Sulfur Oxides (SOx) emissionst10.091.13Persistent organic pollutant (POP) emissionst1.400.00VOCs emissions (including non-methanehydrocarbon)
t70.7195.18Sulfuretted hydrogen emissionst0.000.00
Particulate matter emissionst162.50118.07Tin and its compounds emissionst13.9237.80Other exhaust gas emissionst1.5035.35GRI 306-3 Waste generatedOverall waste generatedt153,009.79154,368.43Non-hazardous waste generatedt114,618.42100,819.82Domestic waste generatedt14,309.4314,447.89Hazardous waste generated t24,081.9439,100.72
In 2023, Luxshare Precision comprehensively checked the exhaust gas emissions from all production factories in the Reporting Year and past years, confirming that none of its factories emitted sulfuretted hydrogen. Therefore, the sulfurettedhydrogen data for 2022 was incorrect and has been modified.
Environmental Performance Table (Continued)
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About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
IndicatorUnit20232022GRI 306-4 Waste diverted from disposal
Total amount of waste recoveredt121,319.28104,007.10Amount of hazardous waste recoveredt22,685.9913,319.50 Amount of hazardous waste transferred for reuset691.471,316.29 Amount of waste reused off-sitet391.151,316.29 Amount of waste reused on-sitet300.320.00Amount of hazardous waste transferred for
recycling
t21,994.5212,003.21Amount of hazardous waste transferred to other
recovery operations
t0.000.00Amount of non-hazardous waste recoveredt93,796.5086,181.94Amount of non-hazardous waste transferred for
reuse
t26,727.5546,826.46 Amount of waste reused off-sitet5,694.853,145.13 Amount of waste reused on-sitet21,032.7043,681.33Amount of non-hazardous waste transferred for
recycling
t67,068.9539,355.48Amount of non-hazardous waste transferred for otherrecovery operations
t0.000.00Amount of domestic waste recoveredt4,836.794,505.66 Amount of domestic waste transferred for reuset194.630.00 Amount of domestic waste transferred for recyclingt4,642.164,505.66Amount of domestic waste transferred for otherrecovery operations
t0.000.00
IndicatorUnit20232022GRI 306-5 Waste directed to disposal
Total amount of waste directed to disposal (includingthose transferred)
t31,690.5150,361.27Amount of hazardous waste directed to disposalt1,395.9525,781.16Amount of hazardous waste directed to disposal
by incineration (with energy recovery)
t1,031.08797.07Amount of hazardous waste directed to disposalby incineration (without energy recovery)
t0.000.00Amount of hazardous waste directed to disposalby landfill
t0.000.00Amount of hazardous waste directed to disposal byother disposal methods
t364.8724,984.09Amount of non-hazardous waste directed to disposalt20,821.9214,637.88Amount of non-hazardous waste directed todisposal by incineration (with energy recovery)
t5,573.836,530.28Amount of non-hazardous waste directed todisposal by incineration (without energy recovery)
t0.000.00Amount of non-hazardous waste directed todisposal by landfill
t0.000.00Amount of non-hazardous waste directed to disposalby other disposal methods
t15,248.098,107.61Amount of domestic waste directed to disposalt9,472.649,942.23Amount of domestic waste directed to disposal byincineration (with energy recovery)
t5,036.755,733.80Amount of domestic waste directed to disposal byincineration (without energy recovery)
t0.000.00Amount of domestic waste directed to disposal bylandfill
t0.000.00Amount of domestic waste directed to disposal byother disposal methods
t4,435.894,208.43
The disposal method of non-hazardous waste and hazardous waste transferred for reuse is divided into off-site and on-site, and the other disposal methods of waste diverted from disposal are off-site.
The disposal method of hazardous waste and non-hazardous waste directed to disposal by other disposal methods is on-site, and the disposal method of other waste directed to disposal is off-site.
Environmental Performance Table (Continued)
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About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
IndicatorUnit20232022GRI 2-6 Activity, value chain and other business relationsTotal number of suppliers in the databaseSupplier9,52410,680 Overseas suppliersSupplier1,6671,869 Chinese suppliersSupplier7,8578,811 Service suppliersSupplier2,1432,403 Suppliers of raw and auxiliarySupplier7,3818,277GRI 2-7 EmployeesTotal number of employeesPerson232,585236,932 Employees aged 29 or belowPerson112,074114,915 Employees between 30 and 49Person118,379120,244 Employees aged 50 or abovePerson2,1321,773 Male employeesPerson132,253134,768 Female employeesPerson100,332102,164 Employees from Chinese MainlandPerson183,649187,784Employees from Hong Kong, Macao and Taiwanregions
Person1,3191,350Overseas employees (excluding employees from HongKong, Macao and Taiwan regions)
Person47,61747,798 Total number of indirect laborPerson64,18269,801 Total number of direct laborPerson168,403167,131
IndicatorUnit20232022Total number of long-term employees
Person232,585236,932Total number of temporary employeesPerson00Total number of full-time employeesPerson232,585236,932Total number of part-time employeesPerson00GRI 2-28 Membership associationsTotal number of important associations participated inAssociation 5332GRI 201-1 Direct economic value generated and distributedAmount of operating revenueRMB 1 million231,905.46214,028.39Operating revenue growth compared with the previousyear
%8.3539.03GRI 201-2 Financial implications and other risks and opportunities due to climate changeInvestment in Clean TechnologyRMB
Over 300million
Nearly 260millionInvestment goal in Clean Technology in 2024RMB
Over 320million
Over 300millionProperty all risks insurance coverage (i.e., the amountof the insurance payout)
RMB 10,0005,794,000.004,039,585.09Annual premiums for property all risks insuranceRMB 10,000699.10347.4GRI 205-1 Operations assessed for risks related to corruptionPercentage of the subsidiaries conducting internal riskassessment of integrity/anti-corruption this year
%100100
In accordance with the labor-related laws, regulations and practices of the place of operation, we conduct classified statistics on long-term employees and temporary employees.
Social Performance Table
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About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
IndicatorUnit20232022GRI 205-2 Communication and training about anti-corruption policies and proceduresNumber of employees signing the letter of integritycommitment/signing the letter of integrity notice
Person232,585236,932Number of governance bodies' members signing the
letter of integrity commitment/signing the letter ofintegrity notice
Person1212 Chinese Mainland%66.6766.67 Hong Kong, Macao and Taiwan regions%33.3333.33Overseas (excluding Hong Kong, Macao and Taiwanregions)
%0.000.00Number of general employees signing the letter ofintegrity commitment/signing the letter of integritynotice
Person232,573236,920 Chinese Mainland%78.9679.26 Hong Kong, Macao and Taiwan regions%0.570.57Overseas (excluding Hong Kong, Macao and Taiwanregions)
%20.4720.17Number of direct labor signing the letter of integritycommitment/signing the letter of integrity notice
%72.4170.54Number of indirect labor signing the letter ofintegrity commitment/signing the letter of integritynotice
%27.5929.46Number of suppliers signing the Letter of IntegrityCommitment
Supplier9,42410,540 Chinese Mainland%83.6083.60 Hong Kong, Macao and Taiwan regions%9.029.02Overseas (excluding Hong Kong, Macao and Taiwan
regions)
%7.387.38 Service suppliers%22.5122.50
IndicatorUnit20232022 Suppliers of raw and auxiliary materials%77.4977.50Total number of employees receiving anti-corruptiontrainings
Person232,585236,932Number of governance bodies' members receivinganti-corruption trainings
Person1212 Chinese Mainland%66.6766.67 Hong Kong, Macao and Taiwan regions%33.3333.33Overseas (excluding Hong Kong, Macao and Taiwanregions)
%0.000.00Total number of employees receiving anti-corruptiontrainings
Person232,573236,920 Chinese Mainland%78.9679.26 Hong Kong, Macao and Taiwan regions%0.570.57Overseas (excluding Hong Kong, Macao and Taiwanregions)
%20.4720.17 Number of direct labor trained%72.4170.54 Number of indirect labor trained%27.5929.46Total number of employees receiving anti-corruptiontrainings
Person-times633,223313,498Total hours of anti-corruption trainingsHour293,076.36959,488.00GRI 205-3 Confirmed incidents of corruption and actions takenTimes of corruption whistleblowing receivedEvent1612 Total number of confirmed incidents of corruptionEvent44Total number of the confirmed events (among which theemployees were fired or disciplined due to the corruption)
Event43Total number of the confirmed events (where thecontract with business partners was terminated or notrenewed due to the violations related to corruption)
Event11
Social Performance Table（Continued）
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About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
IndicatorUnit20232022Confirmed legal actions involving company andemployee corruption
Event00Corruption litigation concluded involving the Companyand employees
Times00Compensation amount of corruption litigationconcluded involving the Company and employees
RMB0.000.00GRI 206-1 Legal actions for anti-competitive behavior, anti-trust, and anti-monopoly practicesConfirmed anti-unfair competition, antitrust and anti-monopolylawsuit
Event00Compensation amount of anti-unfair competition, anti-trust and anti-monopoly lawsuit concluded involvingthe Company
Event00Compensation amount of anti-unfair competitiveconduct, antitrust and antitrust practices concludedinvolving the Company
RMB0.000.00GRI 401-1 New employee hiring rate and employee turnoverTurnover rate of indirect labor (Loss of employeesinclude quitting, dismissed and fired employees)
%23.8318.74GRI 401-3 Parental leave
Number of employees having rights of parental leave(male)
Person132,253134,768Number of employees actually using parental leave(male)
Person4,7913,988Number of employees having rights of parental leave(female)
Person100,332102,164Number of employees actually using parental leave(female)
Person3,7082,536GRI 403-5 Worker training on occupational health and safetyTotal hours of EHS trainingHour2,151,601.172,505,922.00
IndicatorUnit20232022Total number of employees receiving EHS trainingPerson232,585119,089Total person-times of employee receiving EHS trainingPerson-times925,624349,882Total hours of Board of Directors members receivingEHS training
Hour14.0014.00Total number of Board of Directors members receivingEHS training
Person77Total person-times of Board of Directors membersreceiving EHS training
Person-times77GRI 403-8 Workers covered by an occupational health and safety management systemNumber of employees in the operational sites withoccupational health and safety management system
Person232,585236,932Proportion of employees in the operational sites withoccupational health and safety management system
%100.00100.00Number of employees in the operational sites withoccupational health and safety management systemhaving passed internal audit
Person232,585236,932Proportion of employees in the operational sites withoccupational health and safety management systemhaving passed internal audit
%100.00100.00Number of employees in the operational sites withoccupational health and safety management systemhaving passed external audit
Person195,405184,479
Turnover rate of employees is calculated by: Number of turnover employees in this category / (Number of employees of this category at the end of the year + Number of turnover employees in this category).
The parental leave mentioned in this article includes the statutory rights and interests such as childcare leave, maternity leave, and paternity leave equally granted to employees in accordance with the relevant laws and regulations of theplace where it operates.
Social Performance Table（Continued）
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About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
IndicatorUnit20232022Proportion of employees in the operational sites withoccupational health and safety management systemhaving passed external audit
%84.0177.86GRI 403-9 Work-related injuriesGRI 403-10 Work-related ill healthTotal working hours (Total working hours of allemployees)
Million hours463.31471.97Number of fatalities due to work-related injuriesTimes00Rate of fatalities due to million-hour work-relatedinjuries
Times/Million
hours
0.000.00
Number of serious injuries due to work-related injuriesTimes01Rate of million-hour work-related injuries with seriousconsequences
Times/Million
hours
0.000.0021
Number of work-related injuries other than the abovefatalities and serious injuries
Times145268Total number of recorded employee injuriesTimes145269Rate of recorded work-related injuries per millionworking hours
Times/Million
hours
0.310.57
GRI 404-1 Average hours of training per year per employee
Total hours of employee trained
Hour5,240,496.9710,715,691.29 Total hours of male employees trainedHour2,941,306.726,107,944.04 Total hours of female employees trainedHour2,299,190.254,607,747.26 Total hours of direct labor trainedHour2,971,557.001,901,896.00 Total hours of indirect labor trainedHour2,268,939.978,813,795.29
IndicatorUnit20232022Average employee training hours
Hour22.5345.23 Average male employee training hoursHour22.2445.32 Average female employee training hoursHour22.9245.10 Average direct labor training hoursHour17.6511.38 Average indirect labor training hoursHour35.35126.27Total person-times of employees trainedPerson-times3,853,9491,958,541GRI 404-2 Programs for upgrading employee skills and transition assistance programsTotal training expenseRMB10,0001,095.341,309.48Number of employees enrolling in academic educationPerson1,635860Total number of internally certified instructorsPerson1,163909GRI 404-3 Percentage of employees receiving regular performance and career development reviews
Percentage of indirect labor receiving regular performanceand career development reviews
%100.00100.00 Male indirect labor%100.00100.00
Female indirect labor%100.00100.00GRI 405-1 Diversity of governance bodies and employeesTotal number of governance bodies' membersPerson1212 Number of male governance bodies' membersPerson66 Proportion of male governance bodies' members%50.0050.00 Number of female governance bodies' membersPerson66 Proportion of female governance bodies' members%50.0050.00
Total hours of employee trained, average employee training hours, total number of employees trained, and total person-times of employees trained are all recorded in the online learning platform"i School" system.
During the Reporting Period, Luxshare Precision adjusted the contents and the statistical methods of some training programs.
Average employee training hour is calculated by: Total training hours provided for the employees in this category/Total number of the employees in this category.
The statistical scope of this indicator is the number of indirect labor who receive regular performance and career development appraisals and the percentage of them by gender. This indicator is not applicable to direct labor becauseperformance appraisals of direct labor are conducted in a flexible manner.
Due to calculation logic adjustments, the percentage of indirect labor receiving regular performance and career development reviews in 2022 has been corrected. The percentage of indirect labor receiving regular performance and careerdevelopment reviews by gender = the number of employees in this category who receive regular performance and career development reviews /the number of employees in this category.
Social Performance Table（Continued）
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2023 Sustainability Report
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Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
IndicatorUnit20232022Number of governance bodies' members aged 29 orbelow
Person00Proportion of governance bodies' members aged 29or below
%0.000.00Number of governance bodies' members agedbetween 30 and 49
Person55Proportion of governance bodies' members aged
between 30 and 49
%41.6741.67Number of governance bodies' members aged 50 orabove
Person77Proportion of governance bodies' members aged 50or above
%58.3358.33Number of governance bodies' members withprevious risk management background
Person00Proportion of governance bodies' members with
previous risk management background
%0.000.00Number of governance bodies' members with
previous industry management background
Person66Proportion of governance bodies' members withprevious industry management background
%50.0050.00Number of governance bodies' members withprevious law management background
Person22Proportion of governance bodies' members withprevious law management background
%16.6716.67Proportion of employees aged 29 or below%48.1848.50Proportion of employees aged between 30 and 49%50.9050.75
IndicatorUnit20232022Proportion of employees aged 50 or above%0.920.75Proportion of male employees%56.8656.88Proportion of female employees%43.1443.12Proportion of disabled employees%0.260.17GRI 308-1 New suppliers that were screened using environmental criteriaGRI 308-2 Negative environmental impacts in the supply chain and actions takenGRI 414-1 New suppliers that were screened using social criteriaGRI 414-2 Negative social impacts in the supply chain and actions takenNumber of new suppliersSupplier1,4052,389Percentage of new suppliers subject to CSR audit%100100Number of suppliers completing CSR audit in 2023Supplier1,6242,451
Number of suppliers completing audit on-siteSupplier527800Number of suppliers having significant, actual andpotential negative environmental and social impactsconfirmed
Supplier01
Percentage of suppliers agreeing to improvements
after assessments
%0.000.00
Number of suppliers terminating relationships after
assessments
Supplier01
Percentage of suppliers terminating relationships
after assessments
%0.00100GRI 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer dataSubstantiated complaints concerning breaches ofcustomer privacy and losses of customer data
Event00
Social Performance Table（Continued）
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Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Company NameName of HonorLevelHuzhou Jiuding Electronic Co., Ltd.
The Fifth Batch of Specialized, Refined, Peculiar and Novel"Little Giants"
NationalLuxshare Precision Industry (Jiangsu)Co., Ltd.
National High-tech EnterpriseNationalLanto Electronic Limited
2023 List of China's Top 100 Competitive Electronic
Information Enterprises
NationalLanto Electronic Limited"Digital Quality Management Innovation and Practice" CaseNationalLanto Electronic Limited
2023 Typical Case of Quality Improvement in the ElectronicInformation Industry
NationalLanto Electronic LimitedNational Intellectual Property Advantage EnterpriseNationalLuxshare Electronic Technology(Kunshan) Ltd.
Green Supply Chain Management EnterpriseNationalJiangxi Luxshare Intelligent ManufactureCo., Ltd.
National Enterprise Technology CenterNationalLuxshare Precision Industry (Enshi) Co.,Ltd.
National Green FactoryNationalLuxshare iTech (Zhejiang) Co., Ltd.
2023 Top 100 Competitive Electronic Information
Enterprises
NationalLuxis Technology (Kunshan) Co., Ltd.National High-tech EnterpriseNationalLuxcase Precision Technology(Yancheng) Co., Ltd.
Demonstration Factory of Nanoscale Precision Machiningfor Intelligent Manufacturing
NationalLuxcase Precision Technology(Yancheng) Co., Ltd.
Luxcase Precision 5G+AI Intelligent Full Connection FactoryNationalLuxis Precision Intelligent Manufacturing(Kunshan) Co., Ltd.
National High-tech EnterpriseNationalHuzhou Jiuding Electronic Co., Ltd.2022 Hidden Champion of Zhejiang ProvinceProvincialLuxshare-ICT (Vietnam) Limited2023 Typical Enterprise of Service for LaborersProvincialLuxshare-ICT (Van Trung) CompanyLimited
2023 Enterprise of Excellent Employee WelfareProvincialLuxshare-ICT (Nghe An) Limited
Outstanding Award for Work Performance of Labour
Security and Health
ProvincialLuxshare Precision Industry (Baoding)Co., Ltd.
Occupational Health Enterprise in Hebei ProvinceProvincialLuxshare Precision Industry (Baoding)Co., Ltd.
Middle and Small-sized Innovation Enterprises in Hebei
Province
ProvincialXuancheng Luxshare Precision IndustryCo., Ltd.
Provincial Green FactoryProvincial
Company NameName of HonorLevelLuxshare Precision Industry (Jiangsu)Co., Ltd.
Provincial Demonstration Intelligent WorkshopProvincialLanto Electronic LimitedProvincial High-tech EnterpriseProvincialXiexun Electronic (Ji'an) Co., Ltd.
Pilot Manufacturing Cultivation Enterprise in Jiangxi
Province
ProvincialXiexun Electronic (Ji'an) Co., Ltd.Expert Workstation in Jiangxi ProvinceProvincialXiexun Electronic (Ji'an) Co., Ltd.Provincial High-tech EnterpriseProvincialXiexun Electronic (Ji'an) Co., Ltd.
The First Unit (Set) of Key Technical Equipment in JiangxiProvince
ProvincialASAP Technology (Jiangxi) Co., Ltd.
Innovative Management Demonstration Enterprise inJiangxi Province
ProvincialASAP Technology (Jiangxi) Co., Ltd.
Single Manufacturing Champion Enterprise in JiangxiProvince
ProvincialASAP Technology (Jiangxi) Co., Ltd.Pilot Manufacturing Enterprise in Jiangxi ProvinceProvincialLuxshare Electronic Technology(Kunshan) Ltd.
Top 100 Excellent Enterprises in Jiangsu ProvinceProvincialLuxshare Precision Industry (Chuzhou)Co., Ltd.
Manufacturing Enterprise as a Provincial Pacemaker of Per
Mu Benefits
ProvincialLuxshare Precision Industry (Chuzhou)Co., Ltd.
Top 100 Private Enterprises in Anhui ProvinceProvincialLuxshare Precision Industry (Chuzhou)Co., Ltd.
Top 100 Private Manufacturing Enterprises in Anhui
Province
ProvincialLuxshare Precision Industry (Chuzhou)Co., Ltd.
Top 100 Enterprises in Anhui ProvinceProvincialLuxshare Precision Industry (Chuzhou)Co., Ltd.
Top 100 Manufacturing Enterprises in Anhui ProvinceProvincialLuxshare Precision Industry (Chuzhou)Co., Ltd.
"Double Top 100" Enterprises of R&D intensity in Anhui
Province
ProvincialMerry Electronics (Suzhou) Co., Ltd.
2023 Typical Pilot Benchmarking Enterprise of Integrationof Advanced Manufacturing and Modern Service Industriesfor the High-quality Development of the Modern ServiceIndustry
ProvincialLuxshare Automation (Jiangsu) Ltd.
Scientific and Technological Achievement Award of JiangsuAssociation of Artificial Intelligence
ProvincialMerry Electronics (Huizhou) Co., Ltd.Innovative Middle and Small-sized EnterprisesProvincialMerry Electronics (Huizhou) Co., Ltd.
Specialized, Refined, Peculiar and Novel Middle and Small-sized Enterprises
Provincial
Summary of Honors
Not all honors are listed here.
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2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
Company NameName of HonorLevel
Jiangxi Luxshare Intelligent ManufactureCo., Ltd.
Top 100 Private Manufacturing Enterprises in JiangxiProvince
ProvincialJiangxi Luxshare Intelligent ManufactureCo., Ltd.
Top 100 Private Enterprises in Jiangxi ProvinceProvincialJiangxi Luxshare Intelligent ManufactureCo., Ltd.
Industrial Design Center in Jiangxi ProvinceProvincialJiangxi Luxshare Intelligent ManufactureCo., Ltd.
Top 20 Cultural Enterprises in Jiangxi ProvinceProvincialJiangxi Luxshare Intelligent ManufactureCo., Ltd.
Provincial Industrial Internet PlatformProvincialJiangxi Luxshare Intelligent ManufactureCo., Ltd.
Innovative Management Demonstration Enterprise in
Jiangxi Province
ProvincialLuxshare Precision Industry (Enshi) Co.,Ltd.
Industrial Design Center in Hubei ProvinceProvincialLuxshare iTech (Zhejiang) Co., Ltd.Top 100 Private Enterprises in Zhejiang ProvinceProvincialLuxshare iTech (Zhejiang) Co., Ltd.
(The 22nd) Top 20 Export Enterprises in the Electronic
Information Industry in Zhejiang Province
ProvincialLuxshare iTech (Zhejiang) Co., Ltd.
Research and Development Center of High-tech Enterprisein Zhejiang Province
ProvincialLuxshare iTech (Zhejiang) Co., Ltd.
The Second Batch of "Cloud Enterprises" in theManufacturing Industry in Zhejiang Province
ProvincialLuxshare iTech (Zhejiang) Co., Ltd.New Key Enterprise Research Institute Identified in 2023ProvincialLuxshare iTech (Zhejiang) Co., Ltd.Provincial Green FactoryProvincialDongguan Xuntao Electronics Co., Ltd.
Benchmarking Demonstration Enterprise for the CoreSoftware Tackling Project in Guangdong Province
ProvincialSuzhou Luxshare Technologies Co., Ltd.
Engineering Technology Research Center in JiangsuProvince
ProvincialLuxshare iTech (Zhejiang) Co., Ltd.
(The 22nd) Top 30 Enterprises Ranked by OperatingIncome in the Electronic Information Industry in ZhejiangProvince
ProvincialSuzhou Luxshare Technologies Co., Ltd.Provincial Demonstration Intelligent WorkshopProvincialDongguan Huarong CommunicationTechnology Co., Ltd.
Specialized, Refined, Peculiar and Novel Middle and Small-sized Enterprises
ProvincialLuxis Technology (Kunshan) Co., Ltd.Provincial Demonstration Intelligent WorkshopProvincialLuxcase Precision Technology(Yancheng) Co., Ltd.
Unicorn Enterprise in Jiangsu ProvinceProvincial
Company NameName of HonorLevelLuxcase Precision Technology(Yancheng) Co., Ltd.
Provincial Green FactoryProvincialLuxcase Precision Technology(Yancheng) Co., Ltd.
Typical Case of Synergic Transformation into Digitalization
and Green Development in Jiangsu Province
ProvincialLuxcase Precision Technology(Yancheng) Co., Ltd.
Enterprise Included in the "2023 Ministry of Industry andInformation Technology List of 5G Factories"
ProvincialLuxcase Precision Technology(Yancheng) Co., Ltd.
Five-star Cloud Enterprise in Jiangsu ProvinceProvincialLuxcase Precision Technology(Yancheng) Co., Ltd.
Top 100 Manufacturing Enterprises in Jiangsu ProvinceProvincialLuxcase Precision Technology(Yancheng) Co., Ltd.
2022 Top 200 Private Enterprises in Jiangsu ProvinceProvincialRi Shan Computer Accessories (JiaShan) Co., Ltd.
Provincial Industrial Internet PlatformProvincialRi Shan Computer Accessories (JiaShan) Co., Ltd.
2023 Provincial Pilot Enterprise for Implementation of the
National Standards for Enterprise Data Management in
Zhejiang Province
ProvincialRi Shan Computer Accessories (JiaShan) Co., Ltd.
Top 100 Private Enterprises in Zhejiang ProvinceProvincialRi Shan Computer Accessories (JiaShan) Co., Ltd.
Single Manufacturing Champion Cultivation Enterprise in
Zhejiang Province
ProvincialRi Shan Computer Accessories (JiaShan) Co., Ltd.
"Cloud Enterprise" in the Manufacturing Industry inZhejiang Province
ProvincialLuxshare Precision Accessory (Kunshan)Ltd.
Provincial High-tech EnterpriseProvincialLuxshare Precision Accessory (Suzhou)Ltd.
Provincial Green FactoryProvincialLuxshare Precision Accessory (Suzhou)Ltd.
Provincial Demonstration Intelligent WorkshopProvincialLuxshare Precision Accessory (Suzhou)Ltd.
Work Safety Standardization Level 2 EnterpriseProvincialHuzhou Luxshare Precision Industry Co.,Ltd.
The Third Prize in the Eighth China Innovation Challenge
(Zhejiang) and the 2023 "Ranking" Competition for
Technical Demands in Zhejiang Province
Provincial
Summary of Honors (Continued)
8888
The Path to Development
Appendix
2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
GRI Content Index
GRI Standards and Disclosure ItemsLocation
Requirement(s)
Omitted
ReasonExplanation
GRI 2: General Disclosures 20212-1 Organizational detailsCompany Profile2-2 Entities included in the organization's sustainability reportingAbout this Report2-3 Reporting Period, frequency and contact pointAbout this Report2-4 Restatements of information
Reduction of Greenhouse GasEmissionsKey Performance Data2-5 External assuranceAssurance Report2-6 Activities, value chain and other business relationships
Main BusinessKey Performance Data2-7 Employees
Recruitment and RetentionKey Performance Data2-8 Workers who are not employeesGRI Content Index2-8-a 2-8-b 2-8-c
Informationunavailable/incomplete
The Company respected the employees hired by all formsof employment, the data statistics are incomplete fordisclosure.2-9 Governance structure and compositionCorporate Governance2-10 Nomination and selection of the highest governance bodyCorporate Governance2-11 Chair of the highest governance bodyCorporate Governance2-12 Role of the highest governance body in overseeing the management of impactsCorporate Governance2-13 Delegation of responsibility for managing impactsCorporate Governance2-14 Role of the highest governance body in sustainability reportingSustainability Governance Structure2-15 Conflicts of interestCorporate Governance2-16 Communication of critical concernsCorporate Governance2-17 Collective knowledge of the highest governance bodyCorporate Governance2-18 Evaluation of the performance of the highest governance bodyCorporate Governance2-19 Remuneration policiesCorporate Governance
Statement of useLuxshare Precision Industry Company Limited has reported in accordance with the GRI Standard for the period from January 1, 2023 to December 31, 2023.GRI 1 usedFoundation 2021
8989
The Path to Development
Appendix
2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
GRI Standards and Disclosure ItemsLocation
Requirement(s)Omitted
ReasonExplanation
2-20 Process to determine remunerationCorporate Governance2-21 Annual total compensation ratioGRI Content Index2-21-a 2-21-b 2-21-c
Confidentialityconstraints
The Company actively promoted fair pay for employees,which was disclosed with some information omitted ordeleted to protect employee privacy.2-22 Statement on sustainable development strategyTargets and Strategies2-23 Policy commitmentsProtection of Rights and Interests2-24 Embedding policy commitmentsCommitment for Critical Goals2-25 Processes to remediate negative impactsStakeholder Communication2-26 Mechanisms for seeking advice and raising concernsStakeholder Communication2-27 Compliance with laws and regulationsCorporate Governance2-28 Membership associations
Industry CooperationGiving back to the Society2-29 Approach to stakeholder engagementStakeholder Communication2-30 Collective bargaining agreementsGRI Content Index2-30-a 2-30-b
Informationunavailable/incomplete
The Company complied with relevant laws and regulationsand protect the legitimate rights and interests ofemployees, which cannot be fully disclosed due to thedifficulty of accurate statistics.GRI 3: Material Topics 20213-1 Process to determine material topicsMaterial Issues Identification3-2 List of material topicsMaterial Issues IdentificationGRI 201: Economic Performance 20163-3 Management of material topics
Green and Low-Carbon StrategyEmployee Well-beingKey Performance Data201-1 Direct economic value generated and distributedKey Performance Data201-2 Financial implications and other risks and opportunities due to climate change
Green and Low-Carbon StrategyGreen Product ExplorationKey Performance Data201-3 Defined benefit plan obligations and other retirement plansRemuneration and Benefits Assurance201-4 Financial assistance received from governmentCorporate GovernanceGRI 202: Market Presence 20163-3 Management of material topics
Remuneration and Benefits AssuranceTalent Recruitment and RetentionTalent Development
GRI Content Index(Continued)
9090
The Path to Development
Appendix
2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
GRI Standards and Disclosure ItemsLocation
Requirement(s)Omitted
ReasonExplanation
202-1 Ratios of standard entry level wage by gender compared to local minimumwage
GRI Content Index
202-1-a 202-1-b202-1-c 202-1-d
Confidentialityconstraints
The Company adhered to the principle of "equal pay for equalwork" and provided basic salaries which were not less thanthe local minimum wage, which are not disclosed due toconfidentiality requirements.202-2 Proportion of senior management hired from the local communityGRI Content Index202-2-a
Confidentialityconstraints
The Company continues to promote a level of managementdiversity and localization that is omitted from disclosure dueto confidentiality requirements.GRI 205: Anti-corruption 20163-3 Management of material topicsCorporate Governance205-1 Operations assessed for risks related to corruption
Corporate GovernanceKey Performance Data205-2 Communication and training about anti-corruption policies and procedures
Corporate GovernanceSupply Chain Management SystemKey Performance Data205-3 Confirmed incidents of corruption and actions taken
Corporate GovernanceKey Performance DataGRI 206: Anti-competitive Behavior 20163-3 Management of material topicsCorporate Governance206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
Corporate GovernanceKey Performance DataGRI 207: Tax 20193-3 Management of material topicsCorporate Governance207-1 Approach to taxCorporate Governance207-2 Tax governance, control, and risk managementCorporate Governance207-3 Stakeholder engagement and management of concerns related to taxCorporate Governance207-4 Country-by-country reportingGRI Content Index
Luxshare Precision complied with the requirements of each operating site and submits tax information to thelocal tax authorities.GRI 302: Energy 20163-3 Management of material topics
Reduction of Greenhouse GasEmissions302-1 Energy consumption within the organizationKey Performance Data302-2 Energy consumption outside of the organizationGRI Content Index302-2-a 302-2-b 302-2-c
Informationunavailable/incomplete
The estimation/statistics of energy consumption occurringin upstream and downstream activities are not yet welldeveloped and therefore can't be accurately disclosed.
GRI Content Index(Continued)
9191
The Path to Development
Appendix
2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
GRI Standards and Disclosure ItemsLocation
Requirement(s)Omitted
ReasonExplanation302-3 Energy intensityKey Performance Data302-4 Reduction of energy consumption
Encourage InnovationGreen Product ExplorationReduction of Greenhouse GasEmissionsKey Performance Data302-5 Reductions in energy requirements of products and servicesGRI Content Index302-5-a 302-2-b 302-5-c
Confidentialityconstraints
Disclosure is omitted due to confidentiality requirementsGRI 303: Water and Effluents 20183-3 Management of material topicsWater Resource Management303-1 Interactions with water as a shared resourceWater Resource Management303-2 Management of water discharge-related impactsWater Resource Management303-3 Water withdrawalKey Performance Data303-4 Water dischargeKey Performance Data303-5 Water consumptionKey Performance DataGRI 305: Emissions 20163-3 Management of material topics
Reduction of Greenhouse GasEmissionsPollutant Discharge Management305-1 Direct (Scope 1) GHG emissions
Reduction of Greenhouse GasEmissionsKey Performance Data305-2 Energy indirect (Scope 2) GHG emissions
Reduction of Greenhouse GasEmissionsKey Performance Data305-3 Other indirect (Scope 3) GHG emissions
Reduction of Greenhouse GasEmissionsKey Performance Data305-4 GHG emissions intensity
Reduction of Greenhouse GasEmissionsKey Performance Data305-5 Reduction of GHG emissions
Reduction of Greenhouse GasEmissionsKey Performance Data305-6 Emissions of ozone-depleting substances (ODS)Pollutant Discharge Management
GRI Content Index(Continued)
9292
The Path to Development
Appendix
2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
GRI Standards and Disclosure ItemsLocation
Requirement(s)Omitted
ReasonExplanation
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissionsPollutant Discharge ManagementGRI 306: Waste 20203-3 Management of material topicsPollutant Discharge Management306-1 Waste generation and significant waste-related impactsPollutant Discharge Management306-2 Management of significant waste-related impacts
Pollutant Discharge ManagementGreen Product Exploration306-3 Waste generated
Pollutant Discharge ManagementKey Performance Data306-4 Waste diverted from disposal
Pollutant Discharge ManagementKey Performance Data306-5 Waste directed to disposal
Pollutant Discharge ManagementKey Performance DataGRI 308: Supplier Environmental Assessment 20163-3 Management of material topicsSupply Chain Management System308-1 New suppliers that were screened using environmental criteria
Supply Chain Management SystemKey Performance Data308-2 Negative environmental impacts in the supply chain and actions taken
Supply Chain Management SystemGreen Supply ChainGRI 401: Employment 20163-3 Management of material topics
Employee Well-beingTalent Recruitment and Retention401-1 New employee hires and employee turnover
Key Performance DataGRI Content Index
401-1-a
Confidentialityconstraints
Only the annual turnover rate of indirect employees wasdisclosed as required for non-disclosure.401-2 Benefits provided to full-time employees that are not provided totemporary or part-time employees
Employee Well-being
GRI Content Index(Continued)
9393
The Path to Development
Appendix
2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
GRI Standards and Disclosure ItemsLocation
Requirement(s)Omitted
ReasonExplanation401-3 Parental leave
Employee Well-beingKey Performance DataGRI Content Index
401-3-c 401-3-d 401-3-e
Informationunavailable/incomplete
The Company provides parental leave for all employees. Asdata management is still being improved, some indicatorsof this disclosure item will be omitted in the current year.GRI 402: Labor/Management Relations 20163-3 Management of material topicsProtection of Rights and Interests402-1 Minimum notice periods regarding operational changesProtection of Rights and InterestsGRI 403: Occupational Health and Safety 20183-3 Management of material topicsOccupational Health and Safety403-1 Occupational health and safety management systemOccupational Health and Safety403-2 Hazard identification, risk assessment, and incident investigationOccupational Health and Safety403-3 Occupational health servicesOccupational Health and Safety403-4 Worker participation, consultation, and communication on occupational healthand safety
Occupational Health and Safety403-5 Worker training on occupational health and safety
Occupational Health and Safety
Key Performance Data403-6 Promotion of worker healthOccupational Health and Safety403-7 Prevention and mitigation of occupational health and safety impacts directlylinked by business relationships
Occupational Health and Safety403-8 Workers covered by an occupational health and safety management system
Occupational Health and Safety
Key Performance Data403-9 Work-related injuries
Occupational Health and Safety
Key Performance Data403-10 Work-related ill health
Green Product Exploration
Occupational Health and Safety
Key Performance DataGRI 404: Training and Education 20163-3 Management of material topicsTalent Development404-1 Average hours of training per year per employee
Talent Development
Key Performance Data
GRI Content Index (Continued)
9494
The Path to Development
Appendix
2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
GRI Standards and Disclosure ItemsLocation
Requirement(s)Omitted
ReasonExplanation404-2 Programs for upgrading employee skills and transition assistance programs
Talent DevelopmentKey Performance Data404-3 Percentage of employees receiving regular performance and careerdevelopment reviews
Talent DevelopmentKey Performance DataGRI 405: Diversity and Equal Opportunity 20163-3 Management of material topics
Corporate GovernanceTalent Recruitment and Retention405-1 Diversity of governance bodies and employeesCorporate Governance405-2 Ratio of basic salary and remuneration of women to menGRI Content Index405-2-a 405-2-b
Confidentialityconstraints
The Company upholds the principle of"equal pay for equalwork" and is committed to creating an equal and diverseworkplace, disclosure of which is omitted due to confidentialityrequirements.GRI 406: Non-discrimination 20163-3 Management of material topicsProtection of Rights and Interests406-1 Incidents of discrimination and corrective actions takenProtection of Rights and InterestsGRI 407: Freedom of Association and Collective Bargaining 20163-3 Management of material topicsProtection of Rights and Interests407-1 Operations and suppliers in which the right to freedom of association andcollective bargaining may be at risk
Protection of Rights and InterestsGRI 408: Child Labor 20163-3 Management of material topicsProtection of Rights and Interests408-1 Operations and suppliers at significant risk for incidents of child laborProtection of Rights and InterestsGRI 409: Forced or Compulsory Labor 20163-3 Management of material topicsProtection of Rights and Interests409-1 Operations and suppliers at significant risk for incidents of forced orcompulsory labor
Protection of Rights and InterestsGRI 413: Local Communities 20163-3 Management of material topicsGiving back to the Society413-1 Operations with local community engagement, impact assessments, anddevelopment programs
Giving back to the Society
GRI Content Index (Continued)
9595
The Path to Development
Appendix
2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
GRI Standards and Disclosure ItemsLocation
Requirement(s)Omitted
ReasonExplanation413-2 Operations with significant actual and potential negative impacts on localcommunities
Giving back to the SocietyExploration of Green ProductsPollutant Discharge ManagementKey Performance DataGRI 414: Supplier Social Assessment 20163-3 Management of material topicsSupply Chain Management System414-1 New suppliers that were screened using social criteria
Supply Chain Management SystemKey Performance Data414-2 Negative social impacts in the supply chain and actions taken
Supply Chain Management SystemGreen Supply ChainConflict Minerals ManagementGRI 416: Customer Health and Safety 20163-3 Management of material topicsQuality Management416-1 Assessment of the health and safety impacts of product and servicecategories
Quality Management416-2 Incidents of non-compliance concerning the health and safety impacts ofproducts and services
GRI Content Index416-2-a 416-2-b
Confidentialityconstraints
The Company is committed to providing high quality andnon-hazardous products, the disclosure of which is omitteddue to confidentiality requirements.GRI 418: Customer Privacy 20163-3 Management of material topicsRisk Control418-1 Substantiated complaints concerning breaches of customer privacy and lossesof customer data
Risk Control
Key Performance Data
GRI Content Index (Continued)
9696
The Path to Development
Appendix
2023 Sustainability Report
People-oriented ApproachLeading the Green Path
About this Report
Way of GovernanceSustainability Governance
Chairman's StatementAbout Luxshare Precision
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