B1Sunshine Global Circuits Co., Ltd | 2023 Annually ESG Report
Sunshine Global Circuits Co., Ltd.
2023 Annually
Environmental, Social &
Governance Report
Reporting Boundary
This report is the first ESG report published by Sunshine Global Circuits Co., LTD. The information and data in the report mainlycover the company's environmental, social and corporate governance related practices during the period from January 1, 2023 toDecember 31, 2023. Based on the continuity and comparison of the reports, Some data and information are not limited in 2023.Reporting PrincipleThis report refers to the GRI standard, the ISO 26000:2010 Guidance on social responsibility standard, the United NationsSustainable Development Goals (SDGs), and the Self-Regulatory Guidelines for Listed Companies issued by the Shenzhen StockExchange No. 17 - Sustainability Report (trial) requirements are prepared.
Report Content
In preparing the report contents, the company adheres to the criticality, integrity, and responsiveness principles of the GRIstandard. The report covers three main aspects: Organizational, Governance, and Society & Environment. It focuses on thecompany's responsibility in ESG governance, product responsibility, environmental responsibility, and employee responsibility. Thedata and information for this report are collected following the company's existing workflow.
Referring descriptionFor the convenience of expression and reading, Sunshine Global Circuits Co., Ltd. is referred to as ‘the SGC’or ‘Company’ or‘We/us’. The copyright of this report belongs to Sunshine Global Circuits Co., Ltd.
Publish modeThe report is released annually and is available for browsing or download on the company's official website (https://www.sunshinepcb.com).Forany questions or suggestions about the report's content, feel free to contact us.
Email address：esg@sunshinepcb.comPhone number1:+86 (0) 755-2724-3597Phone number2:+86 (0) 755-2724-3968Fax:+86 (0) 755-2724-3609
About this report
2023年度ESG 报告关于本报告
Message from Management 06Company Culture 072023 ESG Performance Information 08
ESG Report Verification Statement 73Reader Feedback 75GRI Standards Index of Indicator 74
05 People-oriented, Supporting Employee Development
5.1 Our Employee 56
5.2 Employee Rights Protection 57
5.3 Occupational Health and Safety 59
5.4 Training and Development 62
5.5 Employee Care 64
02 Organizational Governance:
Foundation of Growth
2.1 ESG Governance Structure 24
2.2 Business Ethics 26
2.3 Risk Management and Internal Control 28
2.4 ESG Key Issues 29
04 Environmental-friendlyLeading Green & Intelligent Manufacturing
4.1 Hazardous Substances Control 46
4.2 Building a Green Enterprise 48
4.3 Clean Production Management 50
4.4 Responding to Climate Change 51
06 Transparent ProcurementFulfilling Social Responsibilities
6.1 Responsible Procurement 68
6.2 Charitable and Public Welfare Activities 70
01 SGC Overview
1.1 Global Operations Overview 12
1.2 Milestones 16
1.3 Economic Performance Metrics 18
1.4 Awards and Recognitions 19
03 Product Innovation Empowers a Connected World
3.1 R&D and Innovation 34
3.2 Quality Management 37
3.3 Quality Control and Test 40
3.4 Enhancing Customer Satisfaction 42
Catalogue
Message FromManagement
Thank you all for your continuous trust and supportfor SGC. I would like to share our thoughts andoutlook on our company's philosophy,actions, and commitments in the areasof Environmental, Social, and CorporateGovernance (ESG).Environmental responsibility is the cornerstoneof our company's survival and development. In the faceof increasingly severe global environmental challenges,SGC deeply feels the mission and responsibility itbears. We always adhere to the concept of greendevelopment, actively promoting energy conservation,emission reduction, resource recycling, and theresearch and application of clean energy technologies.During our production processes, we strictly complywith environmental regulations, continuously optimizeprocesses, and reduce waste emissions, striving to builda low-energy consumption, low-carbon emission industrialchain. In the future, we will further increase investment,explore more efficient and environmentally friendlysolutions, and achieve harmonious coexistence betweenindustry and the natural environment.Social welfare is the driving force behind ourgrowth. SGC has always adhered to a people-orientedapproach, focusing on the growth and development ofour employees. We are committed to creating a safeand healthy work environment, implementing fair andinclusive employment policies, and continuously providingemployee training and education to help each employeerealize their self-worth. Additionally, we actively participatein community service and public welfare activities to giveback to society and strive to be a responsible corporatecitizen. We deeply understand that only by sharingprosperity with society can we go further.
In terms of corporate governance, we adhere to theprinciples of integrity and transparency, establish andimprove modern enterprise systems, strengthen internalmanagement, optimize decision-making mechanisms,and protect the rights and interests of all shareholders and
Company CultureDuty
Key value
Vision
Strategy
Innovation Drives a Smart-Connected WorldDual Carbon Policy Builds aBetter Life
Customer-Oriented, EfficientCollaborationProfessional and Dedicated, Co-Creation and Sharing
Becoming the Global Leader inGreen and Intelligent Manufacturingof High-Precision Electronic Circuits
Innovation Brings the LeadingPosition in Global SpecialtyMarket
stakeholders.We place greatimportance on the quality andtimeliness of information disclosure, ensuringthat the public has a full understanding of the company'soperating conditions. At the same time, we continuouslyimprove our risk management framework to preventvarious potential risks and pursue stable and sustainablegrowth for the company.
Looking to the future, SGC will continue to deepenits ESG strategic deployment, integrate ESG conceptsinto the fabric of our corporate culture, and embed themin all aspects of strategic planning, technological researchand development, production operations, and marketmarketing. We firmly believe that through relentlessefforts and innovation, SGC will leave a solid footprint inpromoting green industry development, fulfilling socialresponsibilities, and enhancing corporate governance.Let us join hands and write a new chapter in SGC's ESGendeavors, respond to the call of the times with practicalactions, and make greater contributions to the progressof human society and the sustainable developmentof our planet! Thank you again for your support andcompanionship, and we look forward to creating a brightfuture together! Thank you, everyone!
SGC President Sign: 3433940394
深圳明阳电路科技股份有限公司 | 2023年度环境、社会及治理（ESG）报告
Performance indicator2023First Time Yield（%）89.64%Government incentives and support funds（10k RMB/Year）767.37Water Consumption (T/Year)1,080,465.00Wastewater Discharge (T/Year)747,242.00Total electricity consumption (KWH/Year)118,290,242Natural Gas (KWH/Year)1,193,076Diesel (KG/Year)81,247.10Solid waste discharge (KWH/Year)25,224.81Gasoline (KG/Year)19,791.40Material Batch Qualification Rate (%)99.97%FQA Sampling Set Pass Rate（%）99.12%R&D Investment (10k RMB/Year)8,565.77Number of R&D group member331Female Middle-to-Senior Management Ratio（%）7.59%Frontline Employee Average Wage Ratio to Local Minimum Basic Wage3.81:1Average employee satisfaction（%）91%Gender Pay Ratio for Same Positions（%）1:1Labor contract signing rate（%）100%Employee Health Examination Rate（%）100%Work-Related Deaths (person/Year)0Occupational Disease Diagnoses (Times/Year)0Safety Training Course (H/Person/Year)27.4Employee Annually Training (H/Year)75,204Employee Training Cost (10k RMB/Year)154.37Average Employee Training Time (H/Person/Year)31.30Number of New Supplier Certification Audits21Annual Supplier SER Audit37
2023 ESG Performance Data
Total Assets (Billion RMB）
Employee Average CompensationGrowth Rate (%)
Number of training courses
Environmental protectioninvestment (Billion RMB / Year)
Sales Revenue (Billion RMB/Year）
Tax (Million RMB/Year）R&D Investment (10k RMB/Year)
Emission MonitoringCompliance Rate (%)
Patents Granted
Staff turnover rate （%）
Annual Product Volume(10k m
/ Year)
Safety Investment (10k RMB/Year)
Recovery of the amount ofrecyclable waste (Ton/ Year)
Wastewater TreatmentCompliance Rate (%)
Product Harmful SubstanceComplaints (PCS/Year)
3.481
13%
0.25
248,565.77
100%
3.4%
76.481.619
11,761.97
100%
Economic Information
深圳明阳电路科技股份有限公司 |2023年度ESG报告
Scope 2 Emission (TCO
-e/Year)
Scope 1&2 Total Emission(TCO2-e/ Year)
Scope 1 Emission (TCO
-e/Year)
78,435.10
3,065.84
81,500.94
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers a
Connected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, Supporting
Employee Development
Transparent Procurement Ful?lling
Social Responsibilities
SGC Overview
1.1 Global Operations Overview 12
1.2 Milestones 16
1.3 Economic Performance Metrics 17
1.4 Awards and Recognitions 18
SGC is a professional PCB manufacturer , equip with powerful R&D capabilityand professional product line. Following the mission of “Innovation Drives a Smart-Connected World, Dual Carbon Policy Builds a Better Life”, we are dedicated tobecoming the global leader in environmental-friendly and intelligent manufacturing ofhigh-precision printed circuited board.
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?llingSocial Responsibilities
1.1
Global Operations Overview
SGC was established in July 2001 and is headquartered in Xinqiao Street, Bao‘an District, Shenzhen. On February 1,
2018, it was listed on the Shenzhen Stock Exchange (stock abbreviation: 明阳电路, stock code: 300739). After more than
twenty years of development, SGC has six major production bases and sales entities under its umbrella: Shenzhen SGC,
Jiujiang SGC, Germany SGC, Malaysia SGC, Hong Kong SGC, and the United States SGC. Its business scope covers multiple
countries and regions worldwide.For many years, the company has been dedicated to the research, development, production, and sales of high-end
circuit boards. Based on the strategic positioning of "innovation-driven international market leadership in specialized areas,"
the company continuously increases its investment in research and development and technology. Its products include
multilayer boards, HDI boards, high-speed boards, rigid-flex boards, flexible boards, thick copper boards, high-frequency
boards, ATE boards, and Mini LED boards. Leveraging the differentiated layout of each production base, the company
can meet customers' diverse needs from samples to small and medium batches. Its products are widely used in AI servers,
automotive electronics, medical devices, energy power, electronic communications, and industrial control, among other
fields.
In July 2023, Sunshine PCB (Penang) Sdn. Bhd. was established inMalaysia. The company originated from the Vision factory located inPenang, Malaysia. After SGC acquired Vision, a series of intelligent upgradesand expansions were carried out, increasing the monthly productioncapacity to 7,000 square meters. The processing capability now covers 2-12layer PCBs. Currently, a new second-phase factory with a construction areaof 135,000 square meters is being planned. The company aims to becomea leading manufacturer of rigid, RF, and microwave PCBs in Southeast Asia,laying a solid foundation for SGC to expand its international market.
Sunshine Malaysia
Jiujiang SGC was established in July 2011 and is located in the JiangxiJiujiang High-Tech Development Zone. With a registered capital of 1.273billion RMB, it covers an area of 130,000 square meters. The company hasthe capability to mass-produce 2 to 40-layer PCBs and offers specializedproduct lines for high-speed, rigid-flex, thick copper, high-frequency, andMini LED markets.
Sunshine Jiujiang
In 2013, Sunshine PCB GmbH was established in Remscheid, nearDüsseldorf, Germany. The company originated from the RINDE factory, whichwas founded in 1966 and has a history of producing high-tech products,including 12-18 layer PCBs and high-density PCBs. Under the strategy of"Close to Customers, Real-Time Support," Sunshine PCB GmbH provideslocalized and customized services to customers in the European region.
Sunshine German
SGC headquarters is located in Shenzhen, known as the "SiliconValley of China," with a registered capital of 299 million RMB. It boastsa 20,000-square-meter facility and approximately 1,000 experiencedemployees. With a strong technical foundation, SGC focuses on theincubation and development of quick-turn boards, ATE products, andcomplex high-layer-count products.
Sunshine Shenzhen
Sunshine Shenzhen
Sunshine Jiujiang
Sunshine German
Sunshine Malaysia
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?lling
Social Responsibilities
■ Product and ServiceIn the context of continuously evolving customer demands and increasingly intense differentiated competition, SGC has
proposed an innovation-driven international market leadership strategy. This strategy focuses on the research, production,
and manufacturing of specialized products such as high-speed, rigid-flex, thick copper, high-frequency, ATE, and Mini
LED. These products are widely used in AI servers, automotive electronics, medical devices, energy and power, electronic
communications, and industrial control fields. Adhering to the business philosophy of "global layout, local service," the
company continuously expands its overseas production and sales bases, providing high-quality and efficient services to
customers in countries across Asia, Europe, and the Americas.
In the future, we will strengthen our foundational and product research and development to enhance producttechnical competitiveness and increase the proportion of sales of mid-to-high-end PCBs. Additionally, we will adapt tothe evolving market demands by intensifying efforts in international market expansion, aiming to increase the company'sglobal market share. 。
Our Global Customer Base
High frequencyHeavy Copper
Rigid-flex
IC Substrate
Optical ModuleBackplane
Electromechanical Systems
Industrial Control
Medical Electronics
CommunicationsAutomotive ElectronicsConsumer Electronics
■Industrial layout
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, Supporting
Employee Development
Transparent Procurement Ful?llingSocial Responsibilities
2001? SGC Shenzhen Headquarters Established
J? iujiang SGC successfullyreached production capacity andwas awarded the title of "NationalHigh-Tech Enterprise"? Jiujiang SGC obtained ISO 9001,ISO/TS 16949, and ISO 14001certifications? Shenzhen SGC obtained ISO/
TS 14067 carbon footprintverification
? Served as an executive directorunit of industry associationsCPCA, GPCA, and SPCA? Awarded the title of "OutstandingSupplier" by internationallyrenowned companies (BMK,ENICS, Flex)? Jiujiang SGC expanded monthlyproduction capacity to 40,000square meters and successfullylaunched the specializedproduction line for rigid-flexboards
1.2 Milestones
2010-2013
? Established a sales subsidiary inthe USA? Established a sales subsidiary inGermany? Acquired a factory in Remscheid,Germany, and obtained ISO13485 certification. Awarded thetitles of "Green EnvironmentalProtection Advanced Enterprisein the Circuit Board Industry" and"Shenzhen Pengcheng WasteReduction Advanced Enterprise"? Achieved international businesstransformation
2019-2020
? Shenzhen SGC's IC substrate
professional production linesuccessfully went into operation? Shenzhen SGC successfully
introduced photomask products? Jiujiang SGC's national-level
laboratory construction was
completed? Jiujiang SGC's soft and hard
combination board production line
expanded to a monthly capacity of
10,000 square meters? Comprehensive upgrade of the SAP
enterprise management system and
full implementation of international
human resource management
solutions
? Jiujiang SGC's monthly production
capacity expanded to 100,000 squaremeters? Jiujiang SGC's professional production
line went into operation? Jiujiang SGC achieved Customs AEO
Advanced Certified Enterprise status? Shenzhen SGC achieved Customs AEO
Advanced Certified Enterprise status? Established ATE professional production
line? Acquired Malaysian PCB company Vision
Industries
2021-2023
2014-2015
2016-2017
SGC's development over the past 20 yearshas been filled with opportunities and challenges.Through continuous innovation and perseverance, thecompany has demonstrated its profound foundationand outstanding strength in the electronics circuitindustry.
? The completion of the upgradeof the company's managementsystem, obtaining ISO9001,ISO/TS16949, and ISO14001certifications.? Awarded the title of "Shenzhen
High-Tech Enterprise"? Awarded the title of "National
High-Tech Enterprise"? Successfully transformed into a
multi-variety, small-batch, high-
tech enterprise, and initiated
international import and export
trade
2002-2008
? Listed on the Shenzhen StockExchange with the stock code300739? Shenzhen SGC establishedan Environmental-friendlyManufacturing Center
2018
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers a
Connected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?llingSocial Responsibilities
1.3 Economic Performance Metrics
In recent years, the global PCB market has shown a fluctuating upward trend, benefiting from the development ofemerging technologies such as 5G, cloud computing, and the Internet of Things (IoT). The industry has maintained stablegrowth globally. However, in the past few years, the PCB industry underwent strong expansion, leading to intensifiedcompetition. The release of new production capacity by companies has been affected, and it may take longer to digest thecapacity. Currently, the industry is facing a crucial juncture of reshuffling.With over twenty years of accumulation, SGC has built a solid international customer base. Facing the complex andever-changing international environment and the critical juncture of industry reshuffling and transformation, SGC fullyleverages its international advantages. It has proactively transformed and upgraded its senior management structure toan EMT model, optimizing and innovating operations. Additionally, based on a deep understanding of digitalization andintelligence, it actively promotes the intelligent construction of production processes and supply chains, addressing marketchallenges and seeking long-term development.From 2021 to 2023, the company achieved sales revenue of 5.442 billion yuan, with a total R&D investment of 245million yuan. In the future, SGC will continue to adhere to its internationalization and specialization market positioning,driving sustainable growth through innovation. It will seize opportunities in the PCB market development to achieve industryleadership.
Term202120222023Total Assets (billion)
3.2473.0833.481Annual Product Volume(10k m2）
123.4199.4976.48Sales Revenue (billion)
1.8541.9691.619Total Tax (million)162424R&D Investment（10k）7,198.948,707.428,565.77Government Incentives & Support Funds (10k)
679.253,182.68767.37
1.4 Awards and Recognitions
Over the years, SGC has garnered numerous honors and accolades, driving us to maintain our spirit of innovation andcraftsmanship. We relentlessly enhance product quality and service standards, contributing significantly to the advancementof the electronics information industry.
OrderDateAward TitleAwarding unit12017 May
Preferred Supplier Quali?cation by FlexFlex22018 Feb.2017 Advanced Unit Award for Export ContributionJiujiang Chengxi Port District Management Bureau32018 April
Guangdong Province 5G High-Density Interconnect (HDI)
Circuit Board Engineering Technology Research Center
Guangdong Provincial Department of Science and Technology42018 Sept.
Excellent National Brand Enterprise in the 4th ChinaElectronic Circuit Industry
China Printed Circuit Association (CPCA)52018 Dec.Standardized Safe Production EnterpriseBao’an District Safety Supervision Bureau, Shenzhen62019 -2021Consecutive Outstanding Enterprise AwardsJiujiang Chengxi Port District Management Bureau72019 Aug.Top 100 Chinese Electronic Circuit EnterprisesChina Printed Circuit Association (CPCA)82020 Jan.Outstanding Member UnitIntelligent Manufacturing Industry Association92020 MayLaser Technology Center in the PCB IndustryChinese Academy of Laser Technology Research Institute102020 Sept.High-Tech Enterprise Certi?cateJiangxi Provincial Department of Science and Technology112020 Nov.Model Workers’ Home in Jiangxi ProvinceJiangxi Provincial Federation of Trade Unions122020 Nov.“Green Manufacturing” Certi?cation
Jiangxi Provincial Department of Industry and Information
Technology132020 Nov.Provincial Enterprise Technology CenterJiangxi Provincial Department of Science and Technology142020
Level 3 Safe Production Standardized EnterpriseJiujiang Municipal Safety Production Committee O?ce152021 Jan.
“Certificate of Honor” for Poverty Alleviation,
Enthusiastic Public Service, and Caring Enterprise
Baihuasi Village Committee, Yong’an Township, Jiujiang Economicand Technological Development Zone162021 Jan.
2020 Tax Contribution AwardJiujiang Technical Development Zone (Export Processing Zone)172021 Dec.Top 40 Industrial Enterprises in Jiujiang CityJiujiang Entrepreneurs Association182022 Jan.2021 Industrial Development Progress Award
Jiujiang Economic and Technological Development Zone (ExportProcessing Zone) Working Committee of the Communist Party ofChina192022 Feb.
2021 Enterprise Excellence Contribution Award
Chengxi Port District Management Committee of the CommunistParty of China and Jiujiang Chengxi Port District ManagementBureau202022 AprilCivilized Unit of Jiujiang City
Jiujiang Municipal Committee of the Communist Party of China andJiujiang Municipal People’s Government212022
Provincial Workers’ VanguardJiangxi Provincial Federation of Trade Unions222022Municipal Workers’ VanguardJiujiang Municipal Federation of Trade Unions232022 July
2021 Green Manufacturing and Environmental
Protection Excellence Enterprise
Shenzhen Environmental Protection Industry Association, GPCA242022 July
Leading Manufacturing Cultivation Enterprise in JiangxiProvince
Jiangxi Provincial Industrial Strength Construction Leading Group
O?ce252022 Dec.
National Intelligent Manufacturing Demonstration FactoryExcellent Scenario
Department of Equipment Industry, Ministry of Industry and
Information Technology262023 Feb.2022 Outstanding Industrial Enterprise in Jiujiang CityJiujiang Municipal People’s Government272023 Feb.2022 Top Ten Industrial Enterprises
Jiujiang Economic and Technological Development Zone Working
Committee of the Communist Party of China
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?lling
Social Responsibilities
Awarded FlextronicsPreferred SupplierQualification in 2017
Outstanding National Enterprise in China's
Electronic Circuit Industry
Top 100 Enterprises in China'sElectronic Circuit Industry
Best PCB Partner Supplier ofthe Year 2015 by BMK Group
High-Tech Enterprise Certificate of
Jiujiang
Jiangxi Famous Brand Product
Certificate
OrderDateAward TitleAwarding unit282023 Feb.2022 Per Acre Bene?t Award
Jiujiang Economic and Technological Development ZoneManagement Committee of the Communist Party of China292023 Feb.2022 Science and Technology Innovation Award
Jiujiang Economic and Technological Development ZoneManagement Committee of the Communist Party of China302023 June2022 Green Enterprise in Shenzhen
Shenzhen Green Life Creation Action Guidance CommitteeO?ce312023 Sept.
2023 Management Innovation DemonstrationEnterprise in Jiangxi Province
Jiangxi Provincial Department of Industry and InformationTechnology322023 Oct.High-Tech EnterpriseShenzhen Science and Technology Innovation Commission332023 Nov.National High-Tech Enterprise Certi?cateJiangxi Provincial Department of Science and Technology342023 Dec.
Specialized, Re?ned, Unique, and Innovative Smalland Medium-Sized Enterprise
Shenzhen Small and Medium Enterprises Service Bureau
Organizational Governance:
Foundation of Growth
2.1 ESG governance structure 22
2.2 The principles of business ethics 23
2.3 Enterprise risk management 24
2.4 ESG Key Issues 25
Peace,justice,and stronginstitutions
Partnershipsto achievegoals
SGC adheres to the principles of integrity, honesty, and compliance with laws andregulations; and establishes and implements ESG governance to achieve sustainabledevelopment for the company.
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?llingSocial Responsibilities
2.1 ESG Governance Structure
To ensure compliance and transparency in company operations, SGC continuously improves its governance structure,
which consists of the General Meeting of Shareholders, the Board of Directors, the Board of Supervisors, and the EMT.
In accordance with modern corporate governance requirements, functional departments are established with clear and
reasonable business processes and well-defined responsibilities. This forms a governance structure where power institutions,
decision-making bodies, supervisory agencies, and the executive management layer each perform their duties, effectively
balance power, and coordinate with each other.The General Meeting of Shareholders is the company's power institution, providing shareholders with a crucial means
to exercise their legal rights. The company treats all shareholders equally, ensuring their right to be informed, to participate,
and to vote on significant company matters. The procedures for notification, convening, holding, and voting at the General
Meeting of Shareholders are regulated, and lawyers are invited to attend the meetings to provide legal opinions.The Board of Directors executes the resolutions of the General Meeting of Shareholders in accordance with the law and
is accountable to it. When forming the Board, the company fully considers factors of diversity and independence, actively
promoting the independent director system. Independent directors play a role in enhancing the rationality, standardization,
and scientific nature of company decisions.The Board of Supervisors, entrusted by the General Meeting of Shareholders, supervises the company's operations
and management. It oversees the compliance of the company's finances and the duties performed by directors and senior
management. The Board of Directors has established the Strategy Committee, the Audit Committee, the Nomination
Committee, and the Remuneration and Assessment Committee. These committees work collaboratively and provide effective
oversight to ensure the company's stable operation.
ESG governance structure
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers a
Connected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, Supporting
Employee Development
Transparent Procurement Ful?lling
Social Responsibilities
2.2 Business Ethics Principles
SGC adheres to the principles of integrity and compliance with business ethics, ensuring a fair and just business
environment. The company has established and improved an anti-corruption management mechanism to safeguard its
sustainable development. In 2023, there were no verified incidents of corruption or related reports, nor were there any
complaints or lawsuits due to corruption and bribery issues.
Audit Team Conducting Audits on Project Acceptance
Establishing an Anti-CorruptionManagement System
Signing Integrity
CommitmentAgreement
ImplementingSupervision, Monitoring,
and Accountability
Establishing aReportingchannel
ComplianceAwarenessTraining
ComplianceManagementSystem
SGC has established the "Anti-Corruption Operations Manual," which must be strictly followed by all employees,suppliers, service providers, and contractors. This manual enhances the anti-corruption framework by focusing onthe supervision of high-risk areas and key positions susceptible to corruption. By enforcing these measures, SGCensures a transparent, ethical, and corruption-free business environment.
All new employees must sign the "Integrity Agreement" upon joining SGC. Strategic partners, includingsuppliers, service providers, and contractors, are required to sign the "Sunshine Procurement Commitment forStrategic Partners." These agreements ensure that all parties act lawfully, maintain integrity, and resist any form ofcommercial corruption.
SGC has established an Anti-Corruption Supervision and Management Team, including members from the SupervisoryBoard and the Internal Audit Department. This team monitors compliance with integrity agreements and anti-corruptionpolicies. The Internal Audit Department focuses on detecting fraudulent activities and unethical behavior.Employees violating the integrity agreement face strict accountability measures. Suppliers breaching the"Sunshine Procurement Commitment for Strategic Partners" will have their qualifications revoked. Any commercialbribery actions are referred to judicial authorities for prosecution. This ensures the maintenance of ethical standardsand fairness in business operations.
To further maintain an atmosphere of integrity and transparency, and to enhance employees' awareness of legalcompliance, SGC conducts compliance training through various channels. These include new employee orientation,distribution of employee handbooks, and annual training programs. These initiatives aim to improve employees'understanding of compliance, ensuring they adhere to laws and regulations and uphold the highest standards ofethical conduct.
Anti-Corruption
Integrity Commitment Agreement
SGC has established the "Anti-Fraud and Reporting System" to encourage employees and business partners toreport corrupt activities. Reports can be submitted via the publicly available email or hotline. The company advocatesfor real-name reporting, ensuring that whistleblowers are protected during the investigation process. Any form ofdiscrimination or retaliation against whistleblowers is strictly prohibited.
Reporting Email: internalaudit@sunshinepcb.com Reporting Hotline: 0755-27243927
Reporting Channels
Oversight and Accountability
Compliance Awareness Training
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, Supporting
Employee Development
Transparent Procurement Ful?lling
Social Responsibilities
Environment
2.3 Risk Management and Internal Control2.4 ESG Key Issues
In recent years, SGC has had no incidents of non-compliance or major risk eventsSGC places great emphasis on managing risks throughout its operations, establishing a three-line defense system
for risk control. First Line of Defense: Core frontline business departments, which bear the primary responsibility for risk
management. Second Line of Defense: Regulatory departments, including Legal, Quality, Safety, Finance, and Human
Resources, which support the frontline departments through audits, inspections, and assessments to assist in risk control.
Third Line of Defense: Internal oversight departments, such as Internal Audit and the Audit Committee, which identify
risks and issues through supervision and inspections, continuously improving the company's risk management and internal
control systems. In 2023, SGC's risk control measures were effective, with no incidents of legal or regulatory violations.
To promptly obtain and respond to stakeholder needs, the company, based on the requirements of "ISO26000:2010Guidance on Social Responsibility" and the "GRI Standards," has identified stakeholder requirements and expectations, aswell as ESG issues. The company employs the "matrix evaluation method" to assess ESG key issues from two dimensions:
"the degree of impact on corporate sustainability" and "the degree of stakeholder concern about ESG issues." The companyaims to address stakeholder needs and expectations through communication and engagement, effectively control ESG risks,and achieve its strategic development goals.
SGC, in accordance with the "Basic Norms for Corporate Internal Control" and other relevant laws and regulations,has established a comprehensive internal control system that is effectively implemented. The Internal Audit Departmentconducts special audits on key matters such as internal control operations, financial income and expenditure, placement anduse of raised funds, and related transactions in accordance with the "Internal Audit System." This ensures the company'soperations and management are legal and compliant, assets are secure, and financial reports and related information aretruthful and complete.We also conducts internal control self-evaluation work according to the "Basic Norms for Corporate Internal Control"and relevant regulations, issuing internal self-evaluation reports. Additionally, the company engages external accountingfirms to independently audit the effectiveness of the internal control system. In 2023, there were no major or significantdeficiencies in internal control related to financial and non-financial reports. The internal control system operated effectively,maintaining effective internal control in all major aspects.
Comprehensive Enterprise Risk Management System
Range, Background, Criteria
Risk responseRecord and Report
Risk EstimateRisk Identification
Risk analysisRisk assessment
Communication andconsultation
Supervision and Examine
InterestedParties JoinCommunication
Identification(ESG Risks, Parties
Concerns)
Evaluation (DoubleMateriality, Expert
Opinions)
Determination of
Key Issues
ClientsSupervisory Authority
Suppliers
Employee
CompetitorInvestor
Community & NGO
SGC
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, Supporting
Employee Development
Transparent Procurement Ful?llingSocial Responsibilities
The statistical table of key issues of stakeholder communication and concernInterested Party Focus and Reply
Importance to Company's Sustainable Development
Interested Parties Concerns on ESG Issues
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Materiality Matrix
Interested PartyFocused IssuesCommunicate MethodChapter
Client
> Product Quality> Hazardous Substances Control> Customer Service and Sasfacon> R&D and Innovaon
> Customer Sasfacon Survey> Customer CommunicationMeengs > Customer Complaints
Chapter 3Chapter 4Chapter 3Chapter 3
Investor
> Return and Growth> Enterprise Risk Management> ESG Governance> ESG Governance Performance
> Financial Report Release> Shareholder CommunicationMeengs
Chapter 1Chapter 2Chapter 2
Supplier
> Honesty and An-corrupon> Responsible Procurement
> Supplier Meengs > On-site Audits > Joint Innovaon
Chapter 2Chapter 6
Employee
> Salary and Welfare> Occupaonal Health and Safety> Employee rights protecon> Career development and training> Employee happiness life
> Employee Sasfacon Survey > OHS Management System > Internal Meengs
Chapter 5
Environment
> Clean Producon Management> Responding to Climate Change> Environmental-friendly ProductDevelopment
> Pollutant Monitoring > ESG Report > Product Promoon
Chapter 4
SupervisoryAuthority
> Compliance and Legal Adherence> Support Economic Growth
> Government Meengs and Seminars > On-site Visits and Communicaon
Chapter 2Chapter 4Community &NGO
> Community Harmony> Charitable Acvies
> NGO Survey > Communicaon Meengs
Chapter 6
Product Innovation Empowersa Connected World
3.1 R&D and Innovation 30
3.2 Quality Management 33
3.3 Quality Control and Test 35
3.4 Enhancing Customer Satisfaction 37
Product quality is the lifeblood of the enterprise and the key tosustainable development. The company drives economic growth throughtechnological innovation and enhances customer satisfaction throughmeticulous manufacturing. We are committed to becoming a global leader inhigh-precision electronic circuit green manufacturing.
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, Supporting
Employee Development
Transparent Procurement Ful?lling
Social Responsibilities
3.1 R&D and Innovation
Technological innovation is the driving force for a company to achieve high-quality development. SGC has invested in
establishing a Technology Center, with the mission to "lead the company's technological innovation, support the company's
core technical competencies, and continuously acquire new profit growth points." The company adheres to the core values
of "customer orientation, open innovation, and efficient collaboration," aiming to become a leading electronic circuit R&D
innovation institution in the industry.
SGC has also established an R&D Center, investing substantial funds annually in purchasing advanced R&D instruments
and equipment, developing new products and processes, and improving product quality. From 2021 to 2023, the company
invested a total of 245 million yuan in R&D, providing ample resources to ensure the success of product development and
technological innovation projects.
Mr. David Aldape has been SGC's Chief Technology Officer since 2012, leading the company's product development
initiatives. With over 30 years of experience in the circuit board industry, Mr. David brings extensive expertise to the role.
Earlier in his career, he worked in Silicon Valley, serving as Director of Engineering and Quality/Product Engineering Manager
at Streamline Circuits, and as Director of Engineering at DDi (Dynamic Details Inc). At SGC, he leads a team of professional
R&D engineers dedicated to continuously improving current production processes and advancing technological research and
development.
Currently, SGC employs 331 R&D personnel and achieves the transformation of over six scientific and technological
achievements annually on average. In 2018, the company's technology center was recognized as the "Guangdong 5G
High-density Interconnection HDI Circuit Board Engineering Technology Research Center." In 2023, both Shenzhen SGC
and Jiujiang SGC were honored with the titles of "Specialized and New Small and Medium-Sized Enterprises" and "Jiangxi
Province Innovation Management Demonstration Enterprise," respectively.
To improve the standardized management of technological innovation and new product development, the TechnologyCenter has established a series of R&D project management procedures, including the "R&D Project Operation ManagementProcess," "SGC Process Capability Management Specification," "Material Selection and Usage Work Instructions," "NewMaterial Certification Work Instructions," and "R&D Board Order Operation Process Specification." These procedures controlthe critical processes of design and development to ensure that the quality of new products and technologies meets customerrequirements, relevant laws and regulations, international standards, and industry standards. While actively conductingindependent R&D, We also engages in extensive industry-university-research collaborations with enterprises, universities, andresearch institutes. On one hand, it fully leverages the disciplinary advantages of universities in manufacturing equipment,automation, electronic information, advanced materials, and light industry chemicals to assist in solving challengesencountered in the production process. On the other hand, the company continuously recruits high-quality talent andestablishes industry-university-research partnerships with renowned institutions to jointly conduct research projects.
■ Excellent R&D Team
■ Technological Innovation Management
Index data202120222023R&D Investment (10k RMB/Year)7,198.948,707.428,565.77Number of R&D Personnel324330331Patents Granted51213
SGC technical center has been awarded the title of"Guangdong Province 5G High-Density Interconnection
(HDI) Printed Circuit Board Engineering Technology
Research Center".
In 2023, Jiujang SGC was awarded the honorary title of "Jiangxi
Province Management Innovation Demonstration Enterprise".
In 2023, Shenzhen SGC was awarded the honorary title of"Specialized, Special, and New Small and Medium-sized
Enterprises
Company R&D and Technological Innovation Performance Data (2021-2023)
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?lling
Social Responsibilities
■ Product R&D Achievements
3.2 Quality Management Policy
Quality First, Lean Production, Continuous Innovation, Reach Customers Requirements
The company has established a comprehensive quality management system based on international standards such asISO 9001, IATF 16949, AS9100, ISO 13485, and QC 080000. Additionally, it has obtained product safety certifications likeUL and CQC. For several consecutive years, the company has been listed among the top 100 PCB enterprises in China by theChina Printed Circuit Association (CPCA).
From 2013 to 2021, the company ranked as follows in the CPCA’s "China Electronic Circuit Industry Rankings": 64th,61st, 59th, 54th, 47th, 48th, 45th, 45th, and 42nd, respectively. In 2023, the company ranked 38th in the comprehensivePCB top 100 enterprises and 20th among domestic PCB top 100 enterprises in the "22nd (2022) Revenue Rankings of MajorEnterprises in China's Electronic Circuit Industry," jointly published by CPCA and the China Information Technology IndustryFederation (CITIF). These rankings show a slight improvement compared to previous years.
■ Management Policy
■ Quality Management Performance
Quality FirstThrough education and quality activities,improve the quality system, so that allemployees establish the concept of excellentquality management, focus on work quality,reduce scrap, and eliminate rework. Establish agood corporate reputation while firmly opposingany form of bribery and corruption to protectthe company's interests and promote fair trade.
Continuous InnovationThrough continuous improvement andinnovation in software, hardware, and systemmethodologies, we consistently enhancetechnical capabilities, reduce productionprocess deviations, and keep the companydynamic and motivated.
Lean ProductionThrough continuous improvement andinnovation in software, hardware, and systemmethodologies, we consistently enhance ourtechnical capabilities, reduce production processdeviations, and maintain the company's vitalityand drive.
Reach Customers RequirementsWhile meeting customer needs for productquality, delivery, and service, we provideproactive and professional advice to improveproduct design and specialized services.This approach helps our customers achievesignificant breakthroughs and advancementsin product performance and cost efficiency
ProductProduct Technical ParametersPicture
Application Fields and Their
Functions
Probe Card
Layer: 18Material: S1000-2MThickness: 4.8+/-0.36mmTrace width/space:
0.163/0.2224mm
Minimum hole diameter: 0.6mmSurface finish： Immersion Gold +Selective Hard Gold
Application in SemiconductorPackaging and TestingProbe cards are used insemiconductor wafer testingas an interface between thechip under test and the testingequipment. By conductingelectrical performance tests onthe chips on the wafer, defectivechips can be screened out,reducing packaging costs andensuring chip quality.
Burn-in Board
Layer: 20 Material: IT-180AThickness: 2.225mmTrace width/space: .0.25/0.322mmMinimum Hole Diameter:0.13mmMinimum Hole-to-Conductor Distance：
4milSurface ?nish: Immersion Gold + SelectiveHard Gold + Golden ?ngerSpacing: 0.4mm
Application in SemiconductorPackaging and TestingBurn-in boards are testingdevices used for electronicproducts and semiconductordevices. They apply electricaland thermal stress to circuitboards or devices under speci?cconditions to identify and detectpotential faults or defects early.This process helps in eliminatingdefective components promptly,ensuring the stability andreliability of the products.
Heavy Copper
Layer: 20 /26Material: TU865Thickness: 5.8±0.58mmInternal Copper thickness: 3/3 oz|4/4ozPTH Copper: 25umTrace width/space: 0.55mm/0.152mmSurface Finish: ENIGVoltage Tol: 2770V DC 60SLamination misregistration: ±5milCoil Resistance Range （MAX-MIN)/ MIN≤ 3%
Application in the New EnergyVehicle SectorTransforming traditional woundcoil motors into circuit boardswith built-in winding coils,this innovation meets the keyperformance requirements ofnew energy vehicles.
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers a
Connected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, Supporting
Employee Development
Transparent Procurement Ful?lling
Social Responsibilities
SGC boasts a team of seasoned management professionals with extensive experience in the production of flexible andrigid boards. Adhering to international quality standards, the company implements comprehensive quality managementacross all products. This includes product quality planning, management processes, and operational standards. Qualityobjectives are systematically broken down and assigned to specific departments and positions. Monthly, the companyconducts data collection, analysis, and improvements on these quality objectives.From 2021 to 2023, the company's First Time Yield (FTY) rate and Final Quality Audit (FQA) sampling pass rate haveconsistently improved. These metrics demonstrate the company's maturity in product quality and delivery management.
The company's quality management has passed the on-site audit by the customer
CQC CertificateCUL CertificateUL Certificate
2021-2023 SGC Quality Performance Data
Quality indicators202120222023First Time Yield（%）87.31%89.41%89.64%Number of Product Hazardous Substance
Complaints (Pcs / Year)
Material Batch Pass Rate （%）99.97%99.95%99.97%FQA sampling pass rate （%）98.66%99.97%99.12%
ISO9001: Certificate IATF 16949 CertificateISO13485 Certificate AS9100D Certificate
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers a
Connected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?lling
Social Responsibilities
3.3 Quality Control and Test
Building on a foundation of quality system management:
We actively promotes the operation concept
of a smart factory. Focusing on the "flexibility" requirements of a smart factory, the company has transformed the
traditional manual scheduling and handling of products, finished goods, and materials into an AGV (Automated
Guided Vehicle) intelligent logistics system supported by MES (Manufacturing Execution System) and RCS (Robot
Control System) intelligent scheduling systems. This system, combined with AGV's autonomous path planning
and intelligent warehouse management functions, has significantly improved the level of quality management and
production efficiency.When a production process signals a material shortage, an AGV vehicle retrieves materials from the warehouse
and delivers them to the machine. After the machine completes the detection process, the AGV vehicle transports the
semi-finished products to the semi-finished goods warehouse. The pre-treatment line process within the company's
inner layer has currently achieved full closed-loop production automation and data informatization, encompassing
automatic logistics, automatic machine loading, automatic recipe cutting, automatic data collection, and automatic
machine unloading.The entire plant's transportation is uniformly managed by AGVs, allowing for 24/7 continuous operation. The
use of AGV robots and intelligent scheduling systems enhances the timeliness and accuracy of transportation tasks,
reduces manual labor intensity, includes error-proofing checks during operations, and provides real-time visualization
and control of logistics conditions, facilitating material traceability management.
QC Board
Product Manufacturing WorkshopAGV Intelligent System
Advanced Production Equipment
Supplier Quality Management:
To ensure that the quality of raw and auxiliary materials meets the requiredstandards, SGC has formulated and published the "Supplier Quality Management Work Instruction." This documentclearly specifies the control processes and execution guidelines for new supplier development, supplier qualityassessment, annual review, change management, and handling of anomalies. From 2021 to 2023, the companymaintained a material batch pass rate of over 99.9%.Product Inspection and Testing:
SGC has invested in establishing a central laboratory equipped withadvanced testing instruments from both domestic and international sources. This laboratory conducts electronicproduct failure analysis and reliability research, and it also houses a semiconductor integrated circuit packagingprocess laboratory. Since its establishment, the laboratory has continuously improved its testing capabilities, coveringthe necessary performance tests for products. It provides comprehensive quality inspection and evaluation ofproducts, materials, components, and intermediate products, meeting the testing requirements for product design,verification, and production processes.
White Light InterferometerInfrared Spectrometer
Thermal Shock Test ChamberThermal Emission Microscope System
Thermomechanical AnalyzerNetwork Analyzer
Micro-Resistance Testing SystemCyclic Interconnect Stress Testing System
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, Supporting
Employee Development
Transparent Procurement Ful?lling
Social Responsibilities
3.4 Enhancing Customer Satisfaction
To assess the current level of customer satisfaction, uncover potential customer needs, and identify opportunities
to improve service quality, SGC has established and implemented the "Customer Satisfaction Management Procedure"
based on international standards. The company conducts annual customer satisfaction surveys using methods such as
questionnaires, client visits, monthly scorecards, and daily communication. The survey covers areas including product
quality, delivery, engineering documentation handling, customer complaints, manufacturing process levels, and pricing.SGC convenes meetings with various business departments to discuss and analyze the survey results, producing a
Customer Satisfaction Survey Analysis Report. Each department analyzes the issues identified in the survey, determines root
causes, and formulates improvement plans. The Quality and Customer Service departments regularly track the progress and
verify the effectiveness of these improvement actions. According to survey results from 2019 to 2023, customer satisfaction
has increased from 83.2 points in 2019 to 90.4 points in 2023, demonstrating a steady improvement in the quality of
SGC’s products and services.
■ Customer Satisfaction Survey
Customer Satisfaction Survey Implementation Steps
Trend Chart of Customer Satisfaction Survey Results (2019-2023)
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SGC prioritizes customer information security and adheres to international standards, implementing scientific measuresto manage information security risks effectively.Information Security Management Procedures:
Established procedures like "Server Backup Management,""Network Antivirus and Firewall Management," and "Computer and Network Usage Management" to ensure data integrity,security, and operational continuity.
Information Security Hierarchical Management:
Developed workflows and security systems for collecting andusing customer information, classifying data by confidentiality level, enhancing account security, and controlling access tocontracts and project materials.Information Access Control:
Strictly manages system access permissions, allowing only approved personnel toaccess systems. Customer information is shielded in the SAP system, backed up regularly, and any bulk data actions arereviewed to prevent leaks.Firewalls and Antivirus Software:
Uses advanced firewalls and antivirus software to block external attacks,protecting the internal network and computer systems, ensuring a secure customer information protection framework.
■ Customer Privacy Protection
Environmental-friendly,Leading Green &Intelligent Manufacturing
4.1 Hazardous Substances Control 40
4.2 Building a Green Enterprise 42
4.3 Clean Production Management 44
4.4 Responding to Climate Change 45
The company upholds the philosophy of being responsible to societyand the planet. We are committed to consistent investment and scientificmanagement to be a responsible and conscientious enterprise, ensuringsustainable development.
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers a
Connected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?llingSocial Responsibilities
4.1 Hazardous Substances Control
HSF (Hazardous Substances Free) refers to the reduction of hazardous substances listed in RoHS directives,
REACH regulations, or other relevant laws, as well as those restricted or prohibited by customer requirements
due to their harmful effects on the environment and human health. To ensure that the company's PCB product
production and operations fully consider environmental and human health impacts, comply with customer
requirements, and adhere to relevant product safety and hazardous substance control regulations, the
company has developed and published the "HSF Control Procedure." This procedure implements a systematic
management mechanism to prevent hazardous substances from contaminating products.In 2023, the company's hazardous substances management system was certified with the
QC080000:2017 certification. From 2021 to 2023, the company did not experience any hazardous substance
complaints.
Regulations and Customer Requirements
Identify HSF Factors and Establish
HSF Control Standards
HSF Material Process ManagementHSF Product Design andDevelopment Process
HSF Supply Chain Process
Management
HSF Production Process
Management
HSF Quality Assurance ProcessHazardous Substances Free System
■ HSF Control Measures1）The company has established HSF (Hazardous Substances Free) plans and policies, complying with environmentalregulations worldwide and implementing a hazardous substances management system to ensure product compliance withHSF requirements.2）The company identifies all factors affecting HSF, including manufacturing, packaging, labeling, delivery, equipment,tools, fixtures, and auxiliary materials.3）The company formulates "Hazardous Substance Control Standards" and "Declaration of Non-Containment ofHazardous Substances" to meet customer and regional regulatory requirements, controlling hazardous substances inincoming materials, processes, and finished products.4）The procurement department evaluates and approves suppliers according to the "Supplier ManagementProcedures" to ensure effective hazardous substance control systems. For new materials, HSF monitoring data is requestedfrom suppliers to verify compliance.5）The company commissions third-party testing agencies for annual monitoring of finished products to ensurecompliance. Non-compliant products are sealed immediately and subject to further tracing, verification, and rectification.
REACH Compliance CommitmentQC080000:2017 System Certification
CertificateFinished Product Hazardous Substance
Monitoring Report
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?lling
Social Responsibilities
4.2 Building a Green Enterprise
■ Environmental Policy
Environmental protection serves as the bedrock for our company's survival and growth, representing anobligation we are duty-bound to fulfill. Grounded in the principles of social and planetary responsibility, we remainsteadfast in our commitment to invest resources, em ploy scientific methods for governance, meet emissionsstandards, adhere strictly to legal and regulatory frameworks, and act as a conscientious enterprise. These actionsare taken to guarantee our sustained and responsible business operations, fostering a future of enduring prosperity.The company adheres to a path of green development, adopting the policy of energy conservation and emissionreduction, as well as promoting green safety in our management approach. We uphold the principle of allocatingappropriate environmental costs in a rational manner, striving for a win-win scenario between corporate profits andenvironmental benefits. We prioritize conservation, protection, green industrial layout, green management, and greenproduction. Focusing on green, low-carbon, and circular practices, we aim to establish ourselves as a green enterprise.
The company has established a systematic environmental management system in accordance with theISO14001:2015 standard, continuously increasing its investment in environmental protection while adheringto national environmental protection regulations. Utilizing the PDCA (Plan-Do-Check-Act) operational model, itcontinually enhances its environmental performance. Statistics show that between 2021 and 2023, the company'stotal investment in environmental protection amounted to 82 million RMB.
1. Establishment of Environmental Objectives:
The company has formulated a series of environmentalobjectives, comprising energy conservation targets, input-output efficiency goals, and pollutant discharge standardscompliance aims. These objectives are propelled through an assessment mechanism that drives the executionand advancement of environmental activities across departments, fostering ongoing pollution prevention andimprovement initiatives.
2. Clean Production Audit:
The company has conducted multiple clean production audits, starting fromproduct design, raw material selection, process improvements, and production management. This approach seeksopportunities for enhancement in clean production, maximizing the conversion of raw materials and energy intoproducts, minimizing resource wastage, and reducing the emissions of pollutants and their environmental impact.
3. Environmental Awareness Training:
An annual plan for environmental protection publicity and trainingis formulated, which includes organizing related activities, environmental protection training sessions, promotionalcampaigns, and exchanges. These efforts enhance understanding of environmental regulations and environmentalmanagement activities, thereby raising employees' environmental awareness.
4. Environmental Inspection and Monitoring:
The company regularly conducts internal audits andmanagement reviews, and periodically arranges for third-party monitoring of environmental pollutants to identifyand address potential environmental hazards. Between 2021 and 2023, the company achieved a 100% compliancerate for emissions of pollutants such as waste gas and waste water, marking significant environmental performanceachievements. In 2021 and 2022, Shenzhen SGC Circuit respectively earned the titles of "Excellent Enterprise inGreen Manufacturing and Environmental Protection" and "Shenzhen Green Enterprise," recognizing its outstandingcontributions to environmental sustainability.
Energy conservation and emission reduction, green and safe
Environmental management mechanismsEnvironmental Performance Data Summary Table for 2021-2023
Environmental Indicators2021年20222023Environmental protection investment amount (Billion RMB/year)0.370.270.25Total water consumption (T/year)1,232,530.00 1,213,350.00 1,080,465.00Wastewater discharge volume (T/year)838,857.00 819,059.00 747,242.00Proportion of wastewater treated up to standard (%)100%100%100%Rate of exhaust gas monitoring meeting standards (%)100%100%100%Chemical Oxygen Demand (COD) discharge volume (T/year)33.11 28.62 25.85Ammonia nitrogen discharge volume（T/year）2.08 2.18 1.50Total electricity consumption（KWH/ year）120,122,321 126,272,371 118,290,242Natural gas（m
/ year）878,468 1,104,326 1,193,076Diesel（KG/ year）116,068.93 102,393.44 81,247.10Gasoline（KG/ year）18,770.44 15,481.67 19,791.40Solid waste discharge volume（T/ year）20,525.92 23,740.28 25,224.81Amount of recyclable or reusable waste（T/ year）9,225.52 10,422.50 11,761.97
ISO14001:2015 Environmental ManagementSystem Certification Certificate
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers a
Connected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?llingSocial Responsibilities
4.3 Clean Production Management
The upgraded organic exhaust gas
treatment system
Acidic Etching Solution Recycling SystemRecycling System
As the global economy expands, the consumption of fossil fuels by humans has led to a significant increase ingreenhouse gas emissions, which in turn have caused a worldwide climate impact through the greenhouse effect. Inresponse to this, the company refers to the risk analysis framework provided by the Task Force on Climate-related FinancialDisclosures (TCFD) to identify potential climate-related risks and opportunities in its production activities, incorporating theseinto its overall environmental risk management. By conducting climate risk identification and assessment, policy research,benchmarking against industry peers, and integrating expert opinions, the company has identified the following climatechange risks relevant to its business development.
4.4 Responding to Climate Change
■ Climate Change Risk IdentificationEnvironmental Management Responsibilities:
SGC Circuit adheres strictly to national environmental protectionregulations, actively implements the Environmental Impact Assessment (EIA) system and the "Three Simultaneities" principle.The company has established rigorous environmental management systems, setting up environmental managementdepartments and dedicated personnel to oversee environmental protection work, communicate with governmentenvironmental authorities, operate, maintain, and supervise environmental facilities.Clean Production Audit:
Shenzhen SGC has undergone three rounds of clean production audits. The first roundwas completed in 2012, the second in 2018, and the third in 2023. These clean production audits have significantly assistedthe enterprise in enhancing production efficiency, energy utilization rates, and reducing pollutant emissions. They havealso brought about substantial economic benefits, realizing a "win-win" scenario where both economic and environmentalbenefits are achieved.Upgrade of Exhaust Gas Treatment Systems:
The company operates three sets of organic exhaust gastreatment systems, which originally employed a process combining "water scrubbing + UV photocatalytic decomposition +primary activated carbon adsorption." In 2023, the company upgraded the treatment process for these systems, modifyingit to feature filtration + water scrubbing + secondary activated carbon adsorption. Following the upgrade, the efficiency intreating volatile organic compounds (VOCs) was enhanced, resulting in a reduction of organic exhaust emissions by 1.06tons per year compared to 2022 levels.
Stripping Line Replacement and Upgrade:
In 2023, the company invested 700,000 RMB to phase out anaging assembled thick gold stripping line in the surface treatment area and replace it with a fully automatic stripping line.The project has been completed and is now operational. The new stripping line has reduced the amount of water used inrepeated rinsing processes, leading to annual savings of 6,682 tons of water and 59,200 kWh of electricity. Moreover, it hasdecreased sludge discharge by 33.02 tons per year and membrane residue output by 7.21 tons per year.Acidic Etching Solution Recycling System:
During the production process, acidic etching waste liquid isgenerated. The company uses membrane electrolysis technology to extract copper ions from the acidic etching solution.By combining multiple proprietary innovative technologies, the waste liquid is entirely recycled back into the productionprocess, achieving 100% recycling and zero discharge of etching waste liquid.Waste Sorting and Disposal:
The company manages various wastes generated during the production processthrough classification. Recyclable waste is sorted and recycled for reuse, while non-recyclables are handled according tonational regulatory requirements for classified disposal. Hazardous waste is entrusted to qualified agencies for properhandling, and domestic waste is regularly cleared and transported by sanitation services for appropriate treatment.
Risk CategoryRisk Factor
Potential FinancialImpact
Mitigation Measures
Physical Risks
Climate Disasters (e.g., Typhoons, Floods Leading toSafety Incidents or Forced Suspension of Production)
Increased OperatingCosts; DecreasedValue of Fixed Assets
Establish Emergency ResponsePlans and Conduct Annual DrillExercisesClimate Change Impacts (such as Persistent HighTemperatures Causing Power Supply Anomalies,Increased Cooling Costs, Unstable Supply Capacity andTransportation)
Rising Operating Costs
Integrate Climate Change Awarenessinto Daily Operations Managementand Enhance Energy E?ciency
Transition Risks
Policy and Legal Risks (such as Rising Carbon Prices andImplementation of Carbon Taxes Leading to IncreasedOperational and Procurement Costs)
Rising OperatingExpenses, IncreasedFinancing Costs
Monitor Relevant Laws andRegulations, Regularly ReportGreenhouse Gas Emissions Data,and Effectively Respond to PolicyChangesTechnology Risks (such as Upgrading to Energy-Savingand Emission-Reduction Equipment)
Growing OperatingExpenses
Enhance Equipment UtilizationEfficiency and Increase ProductManufacturing ProductivityMarket Preference Risk (such as Increasing Scrutiny fromCapital Markets, Customers, and Other Stakeholderson Corporate Climate Actions; Poor Environmental andClimate Performance May Subsequently A?ect CompanyReputation and Performance)
Impaired ProductSales, NegativeImpact on CorporateReputation and BrandIn?uence
Elevate Climate Change as a KeyAgenda Item, Disclosing CarbonEmission-Related Informationthrough ESG Reports, StakeholderSurveys, and Other Channels
TransitionOpportunities
Technology Opportunities (Early Adoption of CleanTechnologies and Use of Renewable Energy Sources toE?ectively Mitigate Future Risks of Rising Energy Prices)
Decreased OperatingCosts, BoostedSales of Low-CarbonProducts
Formulate Carbon ReductionStrategies, Employing Clean Energyto Decrease Product-Related andOperational Carbon EmissionsMarket Preference Opportunities, Enhancing CompetitivePosition in the Market by Developing Innovative Low-Carbon Products to Meet the Demands of Capital Markets,Customers, and Stakeholders for Sustainable Solutions
Increased Revenues;EnhancedEnvironmental Imageand Brand In?uence
Actively Increase Investments inDecarbonization, Engage Suppliersin Collective Action, and OfferCustomers Cleaner, Lower-Carbon,and More E?cient Products
Climate Risk and Opportunity Identi?cation and Evaluation Table
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers a
Connected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, Supporting
Employee Development
Transparent Procurement Ful?llingSocial Responsibilities
■ Our Carbon Reduction Actions
1. Carbon Verification:
We conducts carbon auditing at the operational level in accordance with the ISO14064
standard, entrusting a third-party verification agency to audit carbon emission data and issue a carbon audit report. In
2023, the Scope 1 and Scope 2 emissions from our operations amounted to 81,500.94 tons of CO2-e per year, representing
a reduction of 6.4% compared to 2022.
2. Energy Management Mechanism:
The primary source of our company's carbon emissions stems from electricity
consumption during production processes. To decrease these emissions, we have established an energy management body,
the Energy Saving and Emission Reduction Team, which has formulated comprehensive energy management systems. These
include the ' SGC Company Energy Management System', 'SGC Company Energy Conservation and Rewards & Punishment
System', and 'Energy Management Procedures', comprehensively promoting energy conservation and efficiency enhancement
measures that have yielded notable carbon reduction outcomes.
2021-2023 Greenhouse Gas Emissions Data Statistical Table
Environmental Indicators202120222023Scope 1 Emissions (T CO
-e/ year）1,994.522,902.803,065.84Scope 2 Emissions(T CO
-e/ year）80,317.2484,129.1378,435.10Scope 1 and Scope 2 Total Emissions (T CO
-e/ year）82,311.7687,031.9381,500.94
Company Energy-Saving Retrofit Project Emission Reduction Performance Statistics TableSerial NumberProject Name
Carbon EmissionReducon Volume（TCO
-e）
Drilling Machine Conversion from Standalone Chiller to Central Oil CoolingProject
128.23
Drilling Workshop Dust Collecon Pipeline Energy-Saving Retrot Project
230.58
Heat Recovery Project for 200HP Thermal Air Compressor and 200HP AtlasCopco Air Compressor
81.98
High-Temperature Oven Energy-Saver Addion Project
374.94
New Energy Vehicle Replacement for Tradional Fuel Vehicle Project
11.39
Shenzhen SGC and Jiujiang SGC Energy-saving Fan Renovaon Project
633.15
3. Adoption of Water Source Heat Pump Central Heating in Place of Electric Heater Terminal Heating:
Heat pumps, known for their high efficiency and energy conservation capabilities, commonly exhibit heating efficiencies ofover 400%, far surpassing the 95% to 98% efficiency range of electric heaters. The company has incorporated more watersource heat pumps into its system, leveraging existing air-source heat pumps and the residual heat from air compressors,creating centralized hot water management for each building floor. This strategy lowers the energy consumed by hot watersupply, achieving an annual reduction of 338,400 kilowatt-hours (kWh) in electricity consumption and a decrease in carbonemissions by 193 metric tons of CO2 equivalent (CO2-e) per year.
4. Jiujiang SGC Geothermal System:
The geothermal heat pump system project of Jiujiang SGC CircuitTechnology Co., Ltd. is constructed in two phases according to the park development plan. The first phase has completedthe construction of the underground pipeline network, and the second phase aims to finalize equipment installation andcommence operations within three years. Upon completion of the project, it is anticipated to conserve 870,000 degrees ofelectricity annually and reduce carbon dioxide emissions by 485.72 tons.
5. Jiujiang SGC Photovoltaics:
Solar photovoltaic panels have been installed on the rooftops of dormitories, watertreatment facilities, R&D buildings, general areas of Factory 1 and Factory 2, the curved roof area of Factory 2, and thedome areas of Phase 1 and Phase 2 of the tank farm at the company's Jiujiang site. Harnessing solar power for electricitygeneration, this green energy is utilized for both production and daily life. The total capacity of the project can reach up to7,591.15 kWp, with an estimated total generation of 190,835 MWh over 25 years. Based on the grid factor of 2022, it isexpected to reduce carbon emissions by 4,353 tons of CO2-e , significantly contributing to carbon reduction efforts.
6. Energy saving and carbon reduction projects:
During the period from 2021 to 2023, the company hasimplemented numerous energy-saving projects, achieving remarkable results in carbon reduction. Details are provided in thefollowing table.
7.Energy saving and carbon reduction projects:
During 2021-2023, the company has carried out many energysaving projects and achieved significant carbon reduction effects, as shown in the following table
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People-Oriented,Empowering EmployeeDevelopment
5.1 Our Employee 50
5.2 Employee Rights Protection 51
5.3 Occupational Health and Safety 53
5.4 Training and Development 56
5.5 Employee Care 58
Adhering to the core concept of position value, SGC Circuit ensures therights and dignity of every employee, guaranteeing a fair and transparentwork environment. The company actively promotes a culture of strivers,encouraging employees to contribute with enthusiasm and relentless effortstowards the continuous growth and prosperity of the enterprise.
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers a
Connected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?llingSocial Responsibilities
5.1 Our Employees
■Human Resource PoliciesSGC Circuit deeply understands the
significance of talent, considering it the core
driving force and most cherished asset for
the company's development. The company
emphasizes the selection, cultivation, and
motivation of talents, upholding an employment
ideology centered around "people first, combining
virtue with competence, utilizing each person's
strengths, and realizing win-win outcomes."
Committed to fostering an environment that
nurtures a steady stream of talents, SGC Circuit
establishes a robust foundation for its sustainable
growth.The company actively promotes diversity
among its employees, attracting and retaining
a broad spectrum of talents from diverse
backgrounds, genders, ages, ethnicities, and
religious affiliations. It strictly prohibits any form
of discrimination based on race, skin color,
gender, nationality, religion, disability, marital
Company Human Resources Management Philosophy
Human Resources Performance Data2023
Total Number of Employees2400Male to Female Employee Ratio（%）70：30Age Distribution of Employees (Under 30 / 30-50 / Over 50)25:70:5Number of Ethnic Minority Employees (Persons)166Number of Employees with Disabilities (Persons)2Educational Attainment Distribution of Employees (Bachelor's Degree & Above / HighSchool & Above / Junior High School & Below)
3:5:2Percentage of Middle-Level and Above Female Managers Among Management Staff (%)7.59%Number of Foreign Employees (Persons)1
Human Resources Performance Data Sheet
People-Oriented ApproachRespecting the individualvalue of each employee,the company places greatemphasis on their personaldevelopment and growth,while attentively addressingtheir needs and expectations.Maximizing Each Person'sPotential Based on individualabilities, strengths, andinterests, the company makesreasonable job allocations toensure that each employeecan maximize their value intheir respective positions.
Combining Virtue withCompetenceThe company focuses notonly on cultivating employees'professional skills but alsoplaces a higher premium on theirmoral character, professionalethics, and overall demeanor. Achieving Win-Win OutcomesWith a fair compensation andbenefits system, alongside apromising career developmentplatform, employees areempowered to realize their self-worth while contributing to thecompany's growth, therebyachieving a mutually beneficialoutcome for both parties.
5.2 Employee Rights Protections
■ Employee Rights and Benefits
■ Compensation and Benefits
The company adheres to national labor regulations, strictly prohibiting any form of discrimination during thehiring process, and is fully committed to safeguarding all employees' rights and benefits, ensuring equal developmentopportunities for every staff member.
1. The company implements a comprehensive and transparent compensation and benefits system, focusing on work
schedule arrangements, promoting a reasonable work regime, and prioritizing employees' physical and mental well-being.
2. The company encourages employees to actively engage in corporate governance, supporting their establishment
and participation in trade unions. Through collective bargaining, both parties collaborate to uphold employees' legal rightsand interests. A union organization has been established within the company, with employee representatives elected bytheir peers to participate in management and decision-making processes. They assist in resolving and addressing employeegrievances, ensuring that employee voices are respected and heard.
3. The company strictly prohibits any form of discriminatory behavior. By establishing internal grievance channels, issues
are handled and resolved based on principles of fairness and impartiality, thereby preventing employees from experiencingdiscrimination or unfair treatment. This ensures a respectful and equitable working environment for all.
SGC Circuit comprehensively considers factors such as job value, individual competence, performance, and marketstandards when formulating a competitive, comprehensive, and diversified compensation and benefits system for itsemployees. Adhering to principles of fairness, competitiveness, motivation, economic viability, and legality, this system notonly acknowledges the value employees bring to the company but also reflects the company's commitment to employees'career advancement and quality of life. In 2023, the average salary increase rate for employees reached 13%, with anemployee satisfaction rate of 91%.
Employee Grievance Handling Process
Initial GrievanceReporting
PreliminaryInvestigationand Handling
GrievanceCommittee
Review
Deliberation and
Ruling
Implementation
and Feedback
Human resources metrics data202120222023The ratio of the average wage of frontlineemployees to the local minimum basic wage.
3.25:13.45:13.81:1Employee turnover rate（%）5.22%3.42%3.4%Average employee satisfaction rate（%）85%90%91%Average employee salary growth rate（%）24%36%13%Gender pay ratio for the same position（%）1：11：11：1Labor contract signing rate（%）100%100%100%
Company Employee Compensation and Benefits Data Statistics Table
status, age, pregnancy, or any other legally protected characteristics. Forced labor is explicitly banned, and the hiring ofchild labor is strictly forbidden. The company respects employees' individual freedom of belief and safeguards their personalprivacy, dedicated to creating a diverse and inclusive workplace environment. By the end of 2023, the company had a totalof 2,400 employees, including 166 individuals from ethnic minority groups, with female managers constituting 7.59% ofthe management team.
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?llingSocial Responsibilities
■ Satisfaction Survey
To ensure that salary levels across different positions within the company effectively combine internal fairness
with external competitiveness, the company implements a system where salaries are determined by responsibilities and
capabilities, compensation is based on performance, and salary adjustments are linked to both performance and capabilities.
Performance bonuses fluctuate with performance, and annual and monthly performance evaluations are important bases
for salary adjustments. The company legally provides various benefits to employees, including the state-mandated five
insurances and one fund, holidays, annual leave, sick leave, breastfeeding leave, and maternity leave. Additionally, the
company offers comprehensive accident insurance, free meals and accommodation, employee shuttle services, and gifts for
holidays and birthdays.
The company is dedicated to fostering an open, inclusive, and harmonious communication atmosphere, ensuring
that every employee's voice is swiftly and accurately conveyed and addressed. To promptly gain insight into employees'
genuine thoughts and needs, an annual Employee Satisfaction Survey is conducted, encompassing various aspects such as
work environment, compensation and benefits, career development, work pressure, communication between management
and subordinates, as well as corporate culture. Based on the survey findings, numerous improvement initiatives have been
implemented to enhance employees' engagement and sense of belonging.In 2023, the company's employee satisfaction rate has risen from 85% in 2021 to 91%, and the employee turnover
rate has decreased to 2.4%, indicating a continuous enhancement of the company's attractiveness.
Living EnvironmentOffice Environment
5.3 Occupational Health and Safety
■ Safety PolicyWe consistently prioritizes the safety and health of its employees, adhering to the principle of "Safety First, PreventionForemost, Comprehensive Management." We have established a systematic occupational health and safety managementsystem, gradually advancing the operation of this safety management system through four aspects: risk identification,system planning, organizational development, and cultural construction. The company has formulated an implementationplan with the goals of strengthening the foundation in 2023, improving standards and reducing risks in 2024, and achievingstable enhancement in 2025. Currently, Shenzhen SGC has obtained the ISO 45001 Occupational Health and SafetyManagement System certification.
Company's Safety Management System Implementation Chart
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System PlanningRisk ControlOrganizational GrowthCultural Development
Become a Global Leader in Green Intelligent Manufacturing of High-
Precision Electronic CircuitsDedicated to Establishing a World-Class Environmental and Safety Management System to Ensure Business ContinuityCreating a Healthy, Safe, and Pollution-Free Production Environment to Achieve Business and Strategic Goals
4USBUFHZ
2023:Pragmatic basis2025:Steady Growth2024:Upgrade standards andreduce inspectionsEstablish organization,standards, processes, andsystems
Procedural, Process-Oriented,Standardized, Systematic
Professionalism,AutonomyDigitization,SustainabilityGoal ManagementProcedure RevisionStandard DevelopmentProcess OptimizationSystem OperationDiagnostic EvaluationDigitization Development
System Planning Comprehensive Management Team Building Cultural Establishment
Risk Grading andControlChange ManagementEquipment LifecycleManagementPredictive WarningMechanism
Organizational PlanningPerformance EvaluationEmpowerment DesignCapability EnhancementTalent Group Development
Framework DevelopmentActivity PlanningIncentive MechanismBenchmarkingSustainability Solutions
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?lling
Social Responsibilities
■ Safety Management Measures
1. Safety Management Structure:
The company has established a safety governance framework comprising aSafety Management Committee, a dedicated Safety Department, and a Production Safety Leadership Group, clearlydefining the safety responsibilities and obligations of personnel at all levels. Moreover, the company has implementedincentive mechanisms and accountability systems for safety, fostering a top-down, all-participant safety managementsystem. During the period from 2021 to 2023, the company did not experience any major accidents causing injuriesor fatalities, nor were there any cases of occupational diseases, achieving commendable performance in safety andhealth.
ISO 45001:2018 Occupational Health and Safety Management System Certification Certificate
Occupational Health and Safety Data202120222023Safety Investment Funds（10K RMB / Year）384467454Employee Health Check-up Coverage Rate（%）100100100Work-related Fatalities (Persons/Year)
Occupational Disease Incidence Frequency (Occurrences/Year)
Safety Training Hours per Person per Year (H/Person/Year)252627.4
2. Dual Prevention Mechanism: T
he company has established a dual prevention mechanism comprising riskgrading control and hidden danger investigation and rectification, pinpointing and preventing various risks at theirsource. Close attention is paid to weak links and potential issues in the risk control process, with regular hiddendanger inspections and remediation to prevent safety accidents.
3. Standardization of Work Safety:
All production lines and equipment are subject to risk identification basedon safety standardization within the company, standardizing and quantifying safety risks. Each position has a visualsafety awareness card, informing employees of safety operation requirements and the dangers of non-compliance,ensuring adherence to safety operation standards by all staff.
4. Safety Inspection System:
The company regularly carries out diverse safety inspections to enhance theexecution of safety management and operational norms. Daily, on-duty supervisors along with the security teampatrol key risk positions, promptly addressing and resolving any identified hazards.
5. Occupational Health Protection:
The company engages third-party testing agencies to periodicallymonitor working conditions and the operational environment, strictly controlling occupational hazard factors. Regularoccupational health check-ups are organized, with postings of occupational hazard notification signs and provision ofpersonal protective equipment to comprehensively and stringently safeguard employees' occupational health.
6. Safety Awareness Training: I
n accordance with national safety regulations, the company has constructeda three-tier safety training system, delivering training in fire safety, operational safety, emergency response, first aid,chemical management, among others, through various methods. This has effectively heightened employees' safetyawareness and response capabilities.
Fire Emergency Drill
On-duty Supervisor Conducting Safety Inspection
2021-2023 Occupational Health and Safety Performance Data Summary Table
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?lling
Social Responsibilities
5.4 Training and Development
The company tailors training programs according to employees' job roles and career development needs. For those
on the management track, it sets up leadership training programs for grassroots, mid-level, and senior managers. For
professional roles, it constructs training programs centered around job competency requirements and personalized learning
pathways. Meanwhile, a 'New Talent Cultivation Plan' is established for fresh graduates, aiming to build an industry-leading
incubator for newcomers – a 'Whampoa Military Academy' equivalent, fostering a steady stream of outstanding talents
to support the company's sustainable growth and talent reserve. Encouraging continuous learning, the company provides
abundant online and offline learning resources, regularly soliciting and acting upon employee feedback to refine its training
and career advancement mechanisms. From 2021 to 2023, the total investment in employee training amounted to 2.942
million RMB, with an average of 26.4 training hours per person per year. The variety of training courses available expanded
to 86, indicating a consistent upward trend in the company's commitment to professional development.
A scientifically sound and rational career development mechanism is pivotal in facilitating employee growth and enhancingcorporate competitiveness. At its core, our company's career development approach revolves around a structured promotionladder, job rotation strategies, and tailored career planning, thereby offering extensive professional growth opportunities toemployees with diverse skills and at various hierarchical levels. We continuously advance and refine our competency-based jobrole management system, furnishing employees with clear guidelines for their career progression. This system is designed toassist employees in navigating the myriad challenges and issues they may encounter throughout their careers, ensuring theyprogress steadily along their growth trajectories. By fostering a culture that encourages ongoing learning, adaptability, andproactive engagement with career development resources, we empower our workforce to stay ahead in their respective fields,ultimately contributing to both individual success stories and the collective strength of our organization.
Indicator Data202120222023Employee Annual Training Total Hours (H/ Year)476955948575204Employee Training Investment（10K RMB / Year）
89.1150.72154.37Number of Training Course （Categories / Year）557286Average Training Hours per Employee (H/ Person/ Year)
21.4724.2231.30
2021-2023 Employee Training Performance Data Summary Table
Project Management TrainingCollege Student Bootcamp
■ Training and Development
Job rotation strategy ：
Employees are encouraged toparticipate in job rotations todiversify their work experience,enhance their overall skills, andcultivate versatile professionals.
Customized career planning：
Personalized careerdevelopment plans and growthpaths are formulated foremployees according to theirstrengths and interests.Career advancement pathwayBased on employees’ professionalskills and work performance,opportunities for rank promotionsand enhancements incompensation and bene?ts are
provided.
The company holds the 2023 Annual Sta? Commendation Ceremony, recognizing outstanding employees and
promoting exemplary achievements.
■ Employee Career Development
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers a
Connected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?llingSocial Responsibilities
5.5 Caring for Employees
■ Employee Mutual Assistance Fund
In order to enhance corporate cohesion and facilitate harmonious development, the company established a special
Employee Mutual Assistance Fund Association in 2021. To date, it has amassed over RMB 1.6 million in donations,
successfully assisting 11 employees in overcoming personal hardships by providing them with approximately RMB 290,000
in total aid. This assistance encompasses various aspects such as medical expenses, emergency handling of family incidents,
educational subsidies, and more, truly embodying the spirit of offering timely help and mutual support among colleagues.
The company has established an Employee Mutual Assistance Fund Association to support staff members facing unexpected
difficulties or special circumstances, aiding them in overcoming challenges.
■ Colorful Employee LifeTo foster a vibrant and uplifting work environment alongside a pleasant living atmosphere, we arrange a diverse arrayof cultural and sports activities. These initiatives enrich the spiritual lives of our employees, alleviate psychological pressures,and empower them to achieve a harmonious work-life balance. Annually during the summer vacation, our "Together inSGC, Cultivating Growth with Our Children" parent-child event brings abundant laughter and joy. It offers a wealth ofdiverse experiences that broaden children's perspectives, while interactive parent-child segments strengthen bonds betweenemployees and their offspring, yielding immense fulfillment. Throughout each year, the company organizes various culturaland sports engagements, including badminton, basketball matches, tug-of-war competitions, lantern riddle-solving duringthe Lantern Festival, birthday celebrations, and more. Such events reinforce team unity, enhance collaborative spirits amongteam members, and bolster a sense of collective honor and achievement.
Team Building Activities
Transparent ProcurementFul?lling SocialResponsibilities
6.1 Responsible Procurement 62
6.1 Charitable and Public Welfare Activities 64
The company adheres to the principle of “Disinterested Procurement,Win-Win Cooperation," and is dedicated to building a sustainable supplychain. The company actively participates in community development,gives back to society, and strives to be an exemplary corporate citizen!
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers a
Connected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?llingSocial Responsibilities
6.1 Responsible Procurement
■ Responsible Procurement Management
Procurement Values: Integrity and Collaboration, Understanding and Communication, Continuous Improvement
Vision and Goals:
Practice disinterested procurement, create strategic value, and build a supply ecosystem based on equality, respect,
transparency, development, and win-win cooperation. Commit to providing timely, accurate, high-quality, and cost-effective
procurement and supply chain services.
Since SGC establishment, the company has always adhered to the principle of integrity in its operations. Based on the
principles of fairness, openness, and impartiality, the company advocates for sunshine procurement policies, standardizes
the operations of all stakeholders in the supply chain, and collaborates with suppliers to strictly follow standards of integrity
and business ethics in all commercial activities
Supplier Participation in Empowerment Training
■ Integrity Procurement PlanTo achieve sustainable development of the supply chain, the company will establish and improve supplier ESGmanagement based on the requirements of the ISO 20400 Sustainable Procurement standard. The short-term supply chainESG advancement plan includes:
1) Strengthening supplier ESG risk evaluation and grading management, focusing on managing suppliers with high ESG
risks, and adding ESG-related evaluation criteria to the supplier QEMCDS performance scoring system;
2) Enhancing audits on suppliers' hazardous substance management, ESG compliance, and management performance.
The company plans to increase the annual audit count from 37 per year to 50 per year by 2029 to help suppliers improvetheir ESG management levels;
3) Actively responding to the national "Dual Carbon" strategy and customers' carbon reduction requirements,
promoting carbon inventory and carbon reduction initiatives among suppliers to reduce the carbon footprint of productsand contribute to mitigating global climate warming.
Performance Indicators202120222023Production Local Supplier Percentage（%）95.7%96.1%96.3%Number of New Supplier Certifications321921Annual Number of Supplier SER Audits13（Due to Covid）13（Due to Covid）37
Responsible Procurement Performance Data
The First Global Supplier Conference in 2023
On-Site Audits for Suppliers
SGC has established a comprehensive and applicable set of management standards. According to the "Supplier CertificationManagement System" and "Supplier Management Procedures," competitive suppliers are selected through setting entry thresholds,material evaluation, and assessments and guidance by a professional audit team. The company uses the SRM system to managethe full lifecycle of suppliers. To promote regional economic development, the company prioritizes local suppliers, with local suppliersaccounting for 96.3% of production materials in 2023.
SGC signs the "Strategic Partner Disinterested Procurement Commitment" and the "Supplier Environment/Safety/Social Responsibility Commitment" with all suppliers. These agreements include provisions on integrity,compliance, human rights, environmental protection, safety, and ROHS standards. Suppliers are required to adhere tothese commitments and mutually monitor each other to ensure the implementation of sunshine procurement. Anyviolations may result in the immediate termination or dissolution of contract terms.
SGC regularly conducts training for internal procurement personnel on topics such as integrity, honesty, andsupplier social responsibility management. This extends the company's social responsibility principles and requirementsto the supply chain. Together with suppliers, the company advances social responsibility management to ensure that alloperations comply with environmental regulations, labor laws, and corporate social responsibility standards.
SGC conducts annual SER (Social and Environmental Responsibility) audits for key suppliers, referencing theRBA (Responsible Business Alliance) audit program. These audits cover five major areas: labor, health and safety,environment, ethics, and management systems. This ensures that suppliers comply with relevant social responsibilityregulations in their business activities. In 2023, the company completed on-site SER audits for 37 suppliers.
Additionally, the company held the first SGC Supplier Conference in 2023, presenting awards such as theExcellent Quality Award and the Best Green Partner Award to recognize and motivate suppliers who have madesignificant contributions to the company.
1）Supplier Selection:
2）Supplier Management:
3）Disinterested Procurement Training:
4）Supplier Performance Evaluation:
SGC Overview
Organizational Governance:
Foundation of Growth
Product Innovation Empowers aConnected World
Environmental-friendly, LeadingGreen & Intelligent Manufacturing
People-oriented, SupportingEmployee Development
Transparent Procurement Ful?lling
Social Responsibilities
6.2 Charitable and Public Welfare Activities
■ Rural Assistance Charity Initiative
■ Education poverty alleviation project
We embraces the idea of "Contributing with Love, Giving Back to Society." It actively participates in social welfare and
charitable activities, taking tangible steps to shoulder its responsibilities and positively impact the community.
SGC actively implements the directives of
the Central Committee of the Communist Party
of China and the State Council on consolidating
the achievements of poverty alleviation and
promoting rural revitalization. By adopting targeted
assistance, the company fulfills its corporate social
responsibility. The company has made a directed
donation of nearly 100,000 RMB to Xingwang
Village in Du'an Yao Autonomous County, Hechi
City, Guangxi Zhuang Autonomous Region. This
donation aims to improve rural infrastructure,
support rural revitalization, and enhance the well-
being of the local population.
In December 2023, Jiujang SGC, in
conjunction with the Jiujang City Volunteer
Federation, made a heartfelt donation to the
Kangcheng Middle School in the Economic
Development Zone. Principal Wu Min of
Kangcheng Middle School expressed gratitude
for the company's act of kindness and warmly
welcomed the children of company employees to
enroll in Kangcheng Middle School. The Jiujang City
Volunteer Federation commended the company
for its compassionate support and awarded it a
plaque reading "Passion for Public Welfare, Moving
Forward Together."In the same year, Jiujiang SGC also donated
supplies to the Maotian Town Central Primary
School in Wuchuan County, Guizhou Province,
including electronic whiteboards for teaching,
improving the school's teaching conditions and
■Volunteer ActivitiesDuring Covid-19, We actively responded to the government's call, organizing employees to join the communityvolunteer team to support nucleic acid testing services. Additionally, the company mobilized employees to participate instreet volunteer organizations and provided resource support for volunteer activities.
As corporate citizens, the company deeply recognizes the importance of fulfilling corporate social responsibility. Wehope to illuminate every dim corner of the world with the light of love, making our society full of love and warmth.
SGC organized employees to participate in community volunteer activities.
the learning environment for the children. These practical actionssupported the development of local education. We hope togenuinely help children in impoverished areas, providing them withbetter educational resources, and allowing them to feel the careand warmth from society.
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Sunshine Global Circuits Co., Ltd | 2023 Annually ESG Report7475GRI Standards Index of Indicator
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□Organizational Governance Laying the Foundations for Growth
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□Transparent Sourcing Fulfilling Social Responsibility
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GRI Standards index
Part 1: General Standard Disclosures
Organizational Pro?leNo. Description Page102-1 Name of the organization9102-2 Activities, brands, products, and services9102-3Location of headquarters9102-4Location of operations9102-5 Ownership and legal form9102-6Markets served9102-7Scale of the organization9-10102-8Information on employees and other workers46102-9 Supply chain 42102-10 Signi?cant changes to the organization and its supply chainN/A102-11Precautionary Principle or approach17102-12External initiatives23-24102-13Membership of associationsN/A
Strategy102-14Statement from senior decision-maker4102-15Key impacts, risks, and opportunities13-14
Ethics and integrity102-16Values, principles, standards, and norms of behavior5-6102-17Mechanisms for advice and concerns about ethics16
Governance102-18Governance structure16102-19Delegating authority16102-20Executive-level responsibility for economic, environmental,and social topics21102-21Consulting stakeholders on economic, environmental,and social topics21-22
Sunshine Global Circuits Co., Ltd | 2023 Annually ESG Report7677GRI Standards Index of Indicator
102-22Composition of the highest governance body and its committeesN/A102-23Chair of the highest governance bodyN/A102-24Nominating and selecting the highest governance bodyN/A102-25Con?icts of interest16102-26Role of highest governance body in setting purpose, values,and strategyN/A102-27Collective knowledge of highest governance body16102-28Evaluating the highest governance body’s performance20102-29
Identifying and managing economic, environmental, and socialimpacts
102-30E?ectiveness of risk management processes17-18102-31Review of economic, environmental, and social topics21-22102-32Highest governance body’s role in sustainability reporting4102-33Communicating critical concerns21-22102-34Nature and total number of critical concerns21-22102-35Remuneration policies44102-36Process for determining remuneration44102-37Stakeholders’ involvement in remuneration21-22102-38Annual total compensation ratioN/A102-39Percentage increase in annual total compensation ratioN/A
Stakeholder engagement102-40List of stakeholder groups21102-41Collective bargaining agreementsN/A102-42Identifying and selecting stakeholders21-22102-43Approach to stakeholder engagement21102-44Key topics and concerns raised22
Reporting practice102-45Entities included in the consolidated ?nancial statements10102-46De?ning report content and topic Boundaries2102-47List of material topics 22102-48Restatements of information2
102-49Changes in reporting2102-50Reporting period2102-51Date of most recent report2102-52Reporting cycle2102-53Contact point for questions regarding the report53102-54Claims of reporting in accordance with the GRI Standards2102-55GRI content index54-60102-56External assurance52
Management approach103-1Explanation of the material topic and its Boundary22103-2The management approach and its componentsAll chapters103-3Evaluation of the management approachAll chapters
Part2: Topic-speci?c disclosures
Economic performance201-1Direct economic value generated and distributed10201-2
Financial implications and other risks and opportunities due to climatechange
13，39201-3De?ned bene?t plan obligations and other retirement plansN/A201-4Financial assistance received from governmentN/A
Market presence202-1
Ratios of standard entry level wage by gender compared to local minimumwage
202-2Proportion of senior management hired from the local community46
Indirect economic impacts203-1Infrastructure investments and services supported23-27203-2Signi?cant indirect economic impacts42
Procurement practices204-1 Proportion of spending on local suppliers42
Anti-corruption205-1Operations assessed for risks related to corruption16
Sunshine Global Circuits Co., Ltd | 2023 Annually ESG Report7879GRI Standards Index of Indicator
205-2
Communication and training about anti-corruption policiesand procedures
205-3Con?rmed incidents of corruption and actions taken N/A
Anti-competitive behavior206-1
Legal actions for anti-competitive behavior, anti-trust,and monopolypractices
NoneMaterials301-1Materials used by weight or volumeN/A301-2Recycled input materials usedN/A301-3Reclaimed products and their packaging materialsN/A
Energy302-1Energy consumption within the organization38,40302-2Energy consumption outside of the organization38302-3Energy intensity38302-4Reduction of energy consumption38,40302-5Reduction in energy requirements of products and services32-37
Water and e?uents303-1Interactions with water as a shared resource 38303-2Management of water discharge-related impacts35303-3Water withdrawal35303-4Water discharge35,38303-5Water consumption35,38
Biodiversity304-1
Operational sites owned, leased, managed in, or adjacent to, protectedareas and areas of high biodiversity value outside protected areas
N/A304-2Signi?cant impacts of activities, products, and services on biodiversityN/A304-3Habitats protected or restoredN/A304-4
IUCN Red List species and national conservation listspecies with habitats in areas a?ected by operations
N/AEmissions305-1Direct (Scope 1) GHG emissions38,40
305-2Energy indirect (Scope 2) GHG emissions38,40305-3Other indirect (Scope 3) GHG emissions 38,40305-4GHG emissions intensity38305-5Reduction of GHG emissionsN/A305-6Emissions of ozone-depleting substances (ODS) N/A305-7
Nitrogen oxides (NOX), sulfur oxides (SOX), and other signi?cant airemissions
N/AE?uents and waste306-1Water discharge by quality and destinationN/A306-2Waste by type and disposal method38306-3Signi?cant spillsN/A306-4Transport of hazardous wasteN/A306-5Water bodies a?ected by water discharges and/or runo?N/A/
Environmental compliance307-1Non-compliance with environmental laws and regulations None
Supplier environmental assessment308-1New suppliers that were screened using environmental criteria38，42308-2Negative environmental impacts in the supply chain and actions taken42
Employment401-1New employee hires and employee turnover46401-2
Bene?ts provided to full-time employees that are not provided to temporaryor part-time employees
401-3Parental leave47
Labor/management relations402-1Minimum notice periods regarding operational changesN/A
Occupational health and safety403-1Occupational health and safety management system42-45403-2Hazard identi?cation, risk assessment, and incident investigation43403-3Occupational health services44403-4
Worker participation, consultation, and communication on occupationalhealth and safety
44-45
403-5Worker training on occupational health and safety45403-6Promotion of worker health45403-7
Prevention and mitigation of occupational health and safety impactsdirectly linked by business relationships
42-45403-8
Workers covered by an occupational health and safety managementsystem
42-45403-9Work-related injuries43403-10Work-related ill healthN/A
Training and education404-1Average hours of training per year per employee48404-2
Programs for upgrading employee skills and transitionassistance programs
404-3
Percentage of employees receiving regular performance and careerdevelopment reviews
Diversity and equal opportunity405-1Diversity of governance bodies and employees46405-2Ratio of basic salary and remuneration of women to men47
Non-discrimination406-1Incidents of discrimination and corrective actions takenNone
Freedom of association and collective bargaining407-1
Operations and suppliers in which the right to freedom of association andcollective bargaining may be at risk
Child labor408-1Operations and suppliers at signi?cant risk for incidents of child laborN/A
Forced or compulsory labor409-1
Operations and suppliers at signi?cant risk for incidents of forced orcompulsory labor
N/ASecurity practices410-1Security personnel trained in human rights policies or proceduresN/A
Rights of indigenous peoples411-1Incidents of violations involving rights of indigenous peoplesN/A
Human rights assessment412-1
Operations that have been subject to human rights reviews or impactassessments
N/A412-2Employee training on human rights policies or procedures46413-3
Signi?cant investment agreements and contracts that include human rightsclauses or that underwent human rights screening
Local communities413-1
Operations with local community engagement, impact assessments, anddevelopment programs
413-2
Operations with signi?cant actual and potential negative impacts on localcommunities
N/ASupplier social assessment414-1New suppliers that were screened using social criteria42414-2Negative social impacts in the supply chain and actions takenNone
Public policy415-1Political contributionsN/A
Customer health and safety416-1
Assessment of the health and safety impacts of product and servicecategories
416-2
Incidents of non-compliance concerning the health and safety impacts ofproducts and services
NoneMarketing and labeling417-1Requirements for product and service information and labeling29417-2
Incidents of non-compliance concerning product and service informationand labeling
None417-3Incidents of non-compliance concerning marketing communicationsNone
Customer privacy418-1
Substantiated complaints concerning breaches of customer privacy andlosses of customer data
NoneSocioeconomic compliance419-1
Non-compliance with laws and regulations in the socialand economic area
None