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奥特维:2023年度ESG报告英文版 下载公告
公告日期:2024-06-20

Chapter IISolid Foundation ? Characteris-tic Governance

Message from ATWNotes on the Report

CONTENTS

About ATW

Responsible Management

Appendices

Chapter IIndependent R&D ?ATWInnovation

Chapter IIIGood Faith ? Greater Prosperity

Chapter IVPriority to Safety ? Focus on Quality

Chapter VContribution to Society ? ConstantDedication

Chapter VIClose Cooperation ? Win-win Outcomes

Chapter VIIGreen Development ? Low-carbonPractices

Innovative R&D systemInnovative R&D initiativesInnovation achievementsIntelligent development anddigital upgrade

Employment equity and diversityProtection of employee rights and interestsPromoting employee developmentCare for employee well-beingProtection of employee health and privacy

OrganizationOperation of the three meetingsProtection of shareholders’rights andinterestsInternal control and risk managementAnti-corruption and anti-briberyParty building

Production safety managementProduct quality managementImproving customer service

Tax payment according to lawPublic interest activities and donationsCommunity building and developmentVolunteer activities

Sustainable supply chainSupport for industrial development

Environmental managementPollutant managementEnergy resource managementGreen operationsCarbon emission management

Reporting periodScope of reportReport releasePrinciples of preparationGlossaryInformation sources

OverviewStrategy and cultureBusiness layout and developmentHistoryHonors in 2023Performance summary

ESG working mechanismStakeholder communicationIdenti?cation of material topics

股票代码688516

Amid the complicated and changing uncertainties in global economy, Autowellhas maintained rapid development in 2023. The Company’s performance hasachieved substantial growth, evidenced by the signing of new orders worth overCNY 10 billion, year-on-year growth of over 70% in terms of operating income andnet pro?t, as well as the market share of over 60% for the Company’s core product,ultra-high-speed MBB Cell Soldering Stringer. Meanwhile, we have carried outenvironmental, social and governance responsibilities and integrated the conceptof sustainability into all aspects of the Company’s operations.Adhere to innovative development andpromote green socio-economic developmentSince China’s “dual carbon goals” were proposed, the upgrading of PV powergeneration technology has boosted the development of the PV industry. Autowellhas since increased its investment in R&D to continuously improve key technicalcapabilities and upgrade its product technologies. By the end of 2023, it hadobtained a total of 1,605 intellectual property rights. New products, such as high-speed welding systems, various 0BB process equipment, XBC equipment, andintelligent ultra-low-oxygen monocrystal growth furnace, have been launched inthe market. The process optimization not only improved the performance of newproducts, but also reduced the energy consumption of the products.Low carbonization is a key link of high-quality development. Autowell has furtherpromoted green production and operations. The Company developed a green andlow-carbon sustainability model by utilizing renewable energy, improving energye?ciency, and advocating green o?ces. Training and other measures were adoptedto improve employees’awareness of sustainability and environmental protection,thereby reducing carbon emissions in production and life.Optimize the governance structure andstandardize operations

The Company has set up relevant management and governance systems, strictlyobserves laws, regulations and industry requirements, sets up e?ective channelsto communicate with investors, promptly discloses major information to investorsand other stakeholders, shares the corporate achievements and developmentplans, and gives play to the leading role of Party building, in a bid to ensurethe Company’s stable operation and sustained development.Standardizedoperation lays the foundation of a company. We have established a sound internalmanagement system. Pillared by internal systems and approval processes, we

have developed complete and standardized models for R&D, procurement,production, and sales. We are committed to protecting the rights and interestsof shareholders and creditors and fulfilling our obligations for informationdisclosure. We communicate with investors via multiple channels and promptlydisclose important information to investors and other stakeholders. We haveimproved operating e?ciency through building information system, optimizingmanagement process, and refining production management. We attach greatimportance to internal control and risk management, while further strengtheninginformation security, clean business practices, and IPR protection, so as to ensurethe Company’s stable operation and sustained development.

Ful?ll social responsibilities and achievewin-win results for all parties

The Company protects the rights and interests of customers and suppliers,delivering goods with guaranteed quality and quantity and making payments infull and on time completely in line with the contract requirements. By the end of2023, the Company had 4,832 employees. The Company has consistently upheldthe people-oriented principle, strictly abides by laws and regulations, adheresto legal and reasonable employment, resolutely protects the rights and interestsof employees, and promotes the common development of the Company andemployees through the implementation of equity incentives. The Company hasestablished a complete production system and quality system to ensure productquality and safety. The Company attaches great importance to shareholderreturns. In 2023, apart from cash dividends, there were two share repurchases,demonstrating the con?dence in the Company’s development prospects.

Year-on-year growth ofoperating income andnet pro?t exceeded

No. of employees

No. of intellectualproperty rights ob-tained by the end of2023

%

,

,

In the future, Autowell will continue to follow the path of tech-nological innovation, devote to the mission of “Building SmartFactory With New Technologies, Driving Global Intelligent Man-ufacturing”, strive to advance intelligent manufacturing, andinject green momentum into the sustainable development of theCompany and society.

MESSAGE FROMAUTOWELL

Message from ATWNotes on the ReportAbout ATWResponsible Management

GLOSSARY

The following glossary of terms is included for the reader’s convenience.

INFORMATION SOURCESThe qualitative and quantitative information in this Report is sourced from ATW’s publicinformation, internal documents and relevant statistical data.

REPORTING PERIODThe Report covers a period from 1 January 2023 to 31 December 2023.However, certain statements may be beyond the aforesaid period to ensurethe comparability of the Report.

SCOPE OF REPORTThis Report centers on Autowell. Unless otherwise speci_ed, the scope of thisReport is consistent with the scope of the Company’s annual report.

REPORT RELEASE

This Report is the first Environmental, Social and Governance (ESG) reportreleased by Wuxi Autowell Technology Co., Ltd.

PRINCIPLES FOR PREPARATION

This Report is prepared pursuant to the PRules Governing the Listing ofStocks on the STAR Market of the Shanghai Stock ExchangeQ, PGuidelinesNo. ? of the STAR Market of Shanghai Stock Exchange for Self-regulation ofListed Companies  Standardized OperationQ, PGuidelines on CorporateSocial Responsibility Reporting for Chinese Enterprises (CASS-CSR ?.–)Q is-sued by the Research Center for Corporate Social Responsibility of ChineseAcademy of Social Sciences, GRI Standards (?–??), and the United Nations’Sustainable Development Goals (SDGs).

NOTES ON THE REPORT

AbbreviationFull nameATW, the Company, our company, we, the groupWuxi Autowell Technology Co., Ltd.

ATW Intelligent

Wuxi Autowell Intelligent Equipment Co., Ltd.,a holding subsidiary of the CompanyATW Supply Chain

Wuxi Autowell Supply Chain Management Co., Ltd.,a wholly-owned subsidiary of the CompanyATW Optica

Wuxi Autowell Optical Application Co., Ltd.,

a holding subsidiary of the CompanySCEC

Wuxi Songci Electromechanical Co., Ltd.,

a holding subsidiary of the CompanyATW Coshin

Wuxi Autowell Coshin SemiconductorTechnology Co., Ltd.,a holding subsidiary of the companyATW XuRi

Wuxi Autowell XuRi Technology Co., Ltd.,

a holding subsidiary of the CompanyLeddo Technology

Wuxi Leddo Technology Co., Ltd.,

a holding subsidiary of the CompanyWuxi Zhiyuan

Wuxi Autowell Zhiyuan Equipment Co., Ltd.,

a holding subsidiary of the CompanyATW Jiexin

Wuxi Autowell Jiexin Technology Co., Ltd.,

a holding subsidiary of the CompanyPolar PV

Polar Photovoltaics (Bengbu) Co., Ltd. ,a wholly-owned subsidiary of the CompanyWuxi Polar

Wuxi Polar Photovoltaics Co., Ltd.,a holding subsidiary of the Company

Message from ATW About ATWResponsible ManagementNotes on the Report

Wuxi Autowell Technology Co., Ltd. was founded in 2010 andrecognized as a national high-tech enterprise for the _rst time in 2015.It has been awarded as a Jiangsu Small Giant Enterprise of Science andTechnology, a Potential Unicorn Enterprise in South Jiangsu NationalInnovation Demonstration Zone, Wuxi Quasi-Unicorn Enterprise,among others. ATW is a renowned intelligent equipment manufacturerin the sectors of photovoltaics, lithium batteries and semiconductors.ATW has several subsidiaries, including ATW Intelligent, SCEC, ATWXuRi, ATW Coshin, and Leddo. Its expanding PV product portfolio nowserves the four major sectors of PV industry chain: Rod, Wafer, Cell andModule. The competitive ‘agship products MBB Cell Soldering Stringerand Wafer Inspection System are well recognized by the leadingenterprises in the PV industry and have gained a large market share.Following the development trends of new energy vehicles, energystorage and consumer electronics markets, the Company hasindependently developed Lithium-ion Battery Module, PACKProduction Line, and Lithium-ion Battery Appearance InspectionMachine, winning repeat orders from well-known enterprises inthe industry. In addition, we have received bulk orders for the self-developed product Wire Bonder that’s officially launched onto themarket in 2021.In the future, Autowell will be committed to providing customers withall-round and intelligent solutions for the industry chain, creatinggreater values for customers, and making greater contributions to theindustry.

Wherever there is a factory, thereis ATW’s intelligent manufacturingsystem.

Vision

Mission

Values

Build Smart Factory With NewTechnologies Drive Global IntelligentManufacturing.

Competitive Innovation & LeadingTechnology;Superior Quality;EfficientServices;Valuable Trust.

STRATEGY AND CULTUREOVERVIEW

ABOUT AUTOWELL

Message from ATW

Notes on the ReportAbout ATWResponsible Management

As a renowned intelligent equipment manufacturer in the sectors of PV, lithium batteriesand semiconductors, ATW’s product portfolio now serves the four major sectors of PVindustry chain: Rod, Wafer, Cell and Module. The competitive flagship products MBBCell Soldering Stringer and Wafer Inspection System are well recognized by the leadingenterprises in the PV industry and have gained a large market share. The Company hasindependently developed Lithium-ion Battery Module, PACK Production Line, and Lithium-ion Battery Appearance Inspection Machine, winning repeat orders from well-knownenterprises in the industry. In addition, we have received bulk orders for the self-developedproduct Wire Bonder that’s officially launched onto the market in 2021. Meanwhile, wehave continued to expand product development in the packaging & testing sectors of thesemiconductor industry.

Rod WaferCell

Energy Storage

Dicing

Prismatic cells

Die bonder

Pouch cells

AOI inspection

Cylindrical cells

Wire bonder

Module

BUSINESS LAYOUT AND DEVELOPMENT

PV business

Lithium battery business

Semiconductor business

Monocrystalgrowth furnace;Ingot automationequipment

Wafer inspectionsystem;Laser coder/decoder;Silicon waferpackagingequipment;Automatic re-inspectionpackaging line

Screen printingproduction line;light-inducedannealing furnace;Metallization-annealingintegrated furnace;Packaging line andintelligent logisticsline;LEM equipment

ESS module & packassembly line;Intelligent assembly lineof container-type energystorage system

Dicing sawWafer cleaner

Prismatic energy storage mod-ule/PACK production line;Prismatic dynamics module/PACK production line

Slicken solder die bonderAutomatic epoxy die bonder

Pouch module/PACKproduction line

Hybrid module opticalinspection system

Cylindrical cells module/PACKproduction line

Aluminum wire bonderHybrid module bonder

MBB cell solderingstringer;Laser dicing saw;Bussing machine;Layup machine;High-speed weldingsystem;Junction boxwelding machine;PV modulelaminator

Covering four major sectors of the PV industry chain

Module & Pack & Container Automatic Assembly Line

Covering four major sectors of the packaging & testing in the semiconductor industry

Message from ATW Notes on the ReportAbout ATWResponsible Management

ATW was foundedDevelop PV cell solderingstringer to enter the PV era

Initial public launchof soldering stringer

Sales hit CNY 200 million

Recognized as a national high-tech enterprise for the first timeand began to develop overseasbusiness

Merger and acquisition of ATW

Intelligent to enter the sector of

lithium battery equipment

Wafer inspection systemsuccessfully broke the im-port monopoly

The bonder project wasinitiated to enter thesemiconductor industryResearch on weldingprocess of bonderswas conducted and thefirst set of prototypeswas assembledListed on the STAR Market

? Holdings of SCEC? Aluminum wire bonder re-ceived ?rst batch of orders

ATW Smart Factory was built

The product launch ofSCEC’s new generationof monocrystal growthfurnace was held suc-cessfully

The Phase II workshopbuilding located at XinhuaRoad was completed andput into use

HISTORY

2010

2017

2018

2019

2020

2021

2022

2023

2012

2013

2014

2015

2016

Message from ATW

Notes on the ReportAbout ATWResponsible Management

HONORS IN 2023National honorsProvincial honors

Municipal honorsIndustrial honors

Others

National High-tech Enterprises (SCEC, XuRi)

Wuxi Key Laboratory ofAdvanced PV EquipmentManufacturing Technology2023 Golden Leopard awards for

“Technical Excellence” and“Advanced Soldering Stringer”

Top 30 Most Valuable CompaniesListed on the STAR Market in the17th Ranking of Listed ChineseCompanies by Value

“Intelligent ManufacturingModel” & “Chief Brand

O?cer”

2023 Best Interactive IR TeamThe 14

thInvestor Relations“Pegasus Awards” for ListedChinese Companies

Outstanding Units in Information

Disclosure

“ 2023 Best TalentGathering Unit” in WuxiWuxi Patent Gold Award

Jiangsu ProvincialGreen Factory

Jiangsu Province AA-levelQuality Credit EnterpriseJiangsu Provincial LeadingService Providers inIntelligent Manufacturing

Message from ATW Notes on the ReportAbout ATWResponsible Management

IndexUnit 2023R&D expenses (including share-based payment)

CNY 10,00032,730.77R&D investment as a share ofoperating income

%5.19No. of R&D techniciansperson875No. of granted IPRs during thereporting period

piece358No. of granted invention patents

during the reporting period

piece32No. of employeesperson4,832Percentage of female employees%11.61No. of employees aged above 40 person359No. of employees aged between 31

and 40

person1,816No. of employees aged 30 and

below

person2,657Labor contract signing rate%100Social insurance coverage%100

PERFORMANCE SUMMARY

IndexUnit 2023Operating income

CNY 100million

63.02

Total assets

CNY 100million

156.17

Net pro?t attributable toshareholders of listed companies

CNY 100million

12.56

Total tax paid

CNY 100million

6.61

Social contribution per shareCNY5.59No. of board meetings heldtimes23No. of matters discussed andreviewed by Board

times82

No. of Supervisory Boardmeetings held

times22No. of matters discussed andreviewed by Supervisory Board

times71No. of shareholders’meetingsheld

times5No. of matters discussed andreviewed at the general meeting

of shareholders

times22No. of performance brie?ngs

held

times6No. of commercial bribery

litigation cases

times0

IndexUnit 2023Electricity consumption10,000 KWh589.45

Fuel consumptionTon132.83

Natural gas consumptionKNm

46.26

Municipal water supplyTon72,697

GHG Scope 1tons C0

e583.53

GHG Scope 2tons C0

e7,124.93Annual investment inenvironmental protection

CNY 10,0007.36

GovernanceEnvironmentSociety

Message from ATW

Notes on the ReportAbout ATWResponsible Management

A solid governance structure constitutes a vital pillar for efficient operations. In 2023, starting from the preparation of ESG report, ATW set up an ESGworking group and uni_ed the understanding of EGS philosophy between employees and the Company through diversi_ed means, including publicity ofESG concepts, identi_cation of material ESG topics, gathering of ESG information, and interviews with experts.

? The Board of Directors is the Company’s supreme decision-makingbody on ESG governance, responsible for the overall planning andcoordination of ESG work.? The chairman is responsible for supervising and reviewing theCompany’s ESG strategy, goals and annual work plans, and reportingESG implementation results and major plans to the Board.? The Audit Committee also participates in the Company’s review anddecision-making on ESG-related matters such as addressing climatechange and ensuring health and safety.?The Company headquarter is responsible for coordinating andpromoting the implementation of ESG-related work. The GeneralManagement Department, Legal Department, and relevant departmentsof each subsidiary are responsible for the management of variousspecialized ESG-related matters.* A separate dedicated executing agency—ESG Working Group is set upunder the General Management Department, comprising the heads ofthe General Management Department and each subsidiary’s functionaldepartments related to social responsibilities.* The ESG Working Group is also responsible for implementing speci?cESG policies and goals. The group includes an environmental, safety andhealth specialist responsible for the Company’s environmental-relateda?airs. The Company’s Securities Investment Department is responsiblefor corporate governance matters.? Each subsidiary is responsible for the execution and implementationof specific work in line with the ESG management systems and ESG-related overall plans, targets and tasks.

Supreme decision-making body

Board of Directors

ChairmanAudit Committee

LegalDepartment

Supervision and review body

Headquarter

Executive agency

RESPONSIBLEMANAGEMENT

ESG WORKING MECHANISM

Functionaldepartments ofeach subsidiaryGeneralManagementDepartment

Message from ATWNotes on the Report About ATWResponsible Management

Stakeholders

Expectations &demands

Communication &response

Employee

Compliant protection ofrights and interests;Mature salary system;E?ective promotion

mechanism

Employee activities;Training programs;Salary system;Promotion mechanism

Customer

Product quality;Customer service;

Business ethics

Enhance quality control;

Customer review;After-sales service

Suppliers & partners

Supplier management;

Business ethics

Technical Seminar;Supplier visits;Supplier managementsystem

Shareholders& investors

Return on investment;Protection of rights andinterests;Corporate governance;

Investor relations

Information disclosure

rating;Shareholders’meetingPerformance brie?ng;Promotional road show

ATW values the opinions of all stakeholders and accurately identi_es stakeholders among shareholders, investors, employees, customers, suppliers, partners, government and regulatoryagencies, media, and communities. The Company has established an effective communication mechanism to communicate with stakeholders on a regular basis through variouschannels, including websites, media platforms, meetings, reports, and activities, in a bid to fully understand and respond to the concerns of stakeholders.

STAKEHOLDER COMMUNICATION

Stakeholders

Expectations &demands

Communication &response Government

Compliance management;Pay taxes according to law;

Increase employment

Government symposium;Receive government visits

Regulatory authority

Compliant operations;Compliance withregulatory requirements;Response to development

policies

Information disclosure;Cooperate with

supervision;Submit reports;Learn the latest policies

and rules

Media

Economic performance;Compliance management;

Development strategy;

Labor and human rights;

Environment and energymanagement;Social responsibilities

O?cial website;WeChat o?cial account;

Media brie?ng;

Press conference

Community

Talent employment;Charity activities;Community service;Environment and energymanagement

O?cial website;WeChat o?cial account;

Community activities;Volunteer activities

0908

Message from ATW Notes on the ReportAbout ATWResponsible Management

To better identify the material ESG topics related to the Company’s operations, we conducted surveys, identi_cation, evaluation and screening of material topics, and collected opinionsfrom internal and external stakeholders through questionnaires. In addition, we constructed the matrix of material topics for analysis based on the Pthe degree of importance to theCompany’s sustainable developmentQ and Pdegree of importance recognized by stakeholdersQ, so as to evaluate the ranking of topics.

Identify the sustainability-related material topicsin the Company’s industry and establish a library ofsuch topics with reference to the relevant evaluationfactors of ESG ratings in the capital market, such asMSCI, S&P DJSI, CDP, Morningstar, Wind, and Sino-Se-curities Index, in combination with GRI standards,UN SDGs, SASB Standards, and other internationalstandards and goals related to sustainability man-agement, as well as the material topics identi_ed bycompanies in the same industry.

PROCESS TO IDENTIFY MATERIAL TOPICS

Conduct stakeholder interviews to collect feedbackand suggestions from various stakeholders on theCompany’s sustainability practices and strategies forfuture sustainability.Prepare an online survey questionnaire for theevaluation of material ESG topics and invite variousstakeholders to rate the importance of the corre-sponding ESG topics.

Based on the results of the above questionnaireand the Company’s development situation, evalu-ate the topics from perspectives of Pimportance tostakeholdersQ and Pimportance to ATW’s devel-opmentQ, rate and rank the topics by the degree ofimportance, and produce a matrix.

IDENTIFICATION OF MATERIAL TOPICS

Identifytopics toform a libraryof topics

Stakeholdercommunicationand survey

Evaluationof materialtopics

Highly material topicsValid questionnairesEngaged stakeholders

Based on the analysis results of material topics, this Report provides detailed disclosure ofhighly material topics in response to internal and external concerns.

Internal interviews involve business leaders and employeerepresentatives.

Material topicsRelated topics

categories9438611

Message from ATWNotes on the Report About ATWResponsible Management

股票代码688516MATRIX OF MATERIAL TOPICS

Related topicsMaterial topicsHighly material topics

Importance to stakeholders

High

Waste and hazardous substancesmanagement

Clean energy useWater consumption and management

Training on environmentalprotectionAddressing climate change and carbon emissions

Biodiversity protectionGreen design

Green product

Clean manufacturing

ImportantHighly important

R&D innovation

Safe productionEmployee compensation and bene?ts

Product qualityInformation security andprivacy protection

IPR protection

Community contributionand charity activities

Anti-discrimination and diversitymanagementEmployee development andtrainingGreen procurement and green supply chain

Industry-university-researchcooperation

General

ESG governance

Shareholders and equity

Sustainable pro?tability

ESG governanceShareholders and equitySustainable pro?tabilityCompliance managementRisk management and internal controlWaste and hazardous substances management

Clean manufacturing

Clean energy useWater consumption and management

Green productTraining on environmental protectionAddressing climate change and carbon emissions

Biodiversity protection

Green design

R&D innovation

Safe ProductionEmployee compensation and bene?ts

Product qualityInformation security and privacy protection

IPR protectionAnti-discrimination and diversity managementCommunity contribution and charity activities

Employee development and trainingGreen procurement and green supply chain

Industry-university-research cooperation

Risk management and internalcontrol

Compliance management

Importance to ATW development

1110

Message from ATW Notes on the ReportAbout ATWResponsible Management

INDEPENDENT R&DATW INNOVATIONUpholding the philosophy of innovation-driven development,ATW has pursued self-development and contributed to nationaldevelopment based on sci-tech innovation. To this end, theCompany has proactively brought in advanced technologiesand high-caliber talents at home and abroad, deeply engagedin collaboration with universities and research institutes valuedthe protection of intellectual property rights, and constantlystrengthened its R&D strength and innovation capabilities.Building on the continuously improving R&D system, wehave further upgraded our product advantages, continuouslyexpanded R&D areas, enhanced technological applications inproducts, and created greater value for customers.

Innovative R&D systemInnovative R&D InitiativesInnovation achievementsIntelligent development and digital upgrade

SDGs

Sustainableconsumption andproduction

Industry,innovation andinfrastructure

R&D investmentR&D investment

Innovation achievements

Intelligent development

Patent ?lingsPatent ?lings

Licensed IPRs

Manufacturing automation rate

Licensed IPRs

%

%

%

5.19

Percentage in operating income

Including invention patentsIncluding invention patents

Including invention patentsIncluding invention patents

Intelligent development delivers the _rst-pass yield above  

CNY 327,307,700

2,219

1,605

97.55

(Note: Overall pass rate)

Our achievements

2023

Cumulative amount

1312

IndependentR&D ATWInnovation

Solid FoundationCharacteristicgovernance

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

In the practice of innovation projects, we have established an innovation managementmechanism featuring Pone focus and five transformationsQ based on product lines andpillared by IT.

Productplanning

Customization

Independent

R&D

Productoptimization

Projectmanagement

TechnologyR&D

R&D model

Platformdevelopment

Sales contract

Corporate strategy

Technologicaldevelopment

Product R&D

One-Focus and Five-Transformations

ManagementMechanismOriented toward technological innovation and customer demand, the Companyhas continued to increase investment in scienti_c research to ensure its sustainedcompetitiveness. We established the three-pronged approach for productdevelopment, ensuring Pthe sales of one generation of product to be followedby the R&D and reserve for the next generation of productQ. By comprehensivelyevaluating the three key areas of sales, products and R&D, we hold regular meetingsto gain an in-depth understanding of the main trends in the market and futuredevelopment trends of emerging technologies. Based on customer needs, we haveconstantly adjusted and optimized product routes to ensure that products arealways aligned with the market so as to achieve sustainable development.

Sales GenerationR&D GenerationReserve Generation

One-Focus and Five-Transformations Management Mechanism

Project Approval andManagement Process;Project Reward System;Performance Appraisal System;Reward System for Rational

Suggestions

Innovative R&D system

Innovative R&D model

InnovativeR&Dconcepts

Innovationmanagement

mechanism

Innovationsystemguarantee

Focus on independent innovation

Adhering to high-end product positioning;Ecological quality management;Integrating upstream and downstream qualitymanagement, comprehensive corporatemanagement;Panoramic information platform (sap);Strategic operation and management

Fivetransformations

One focus

Independent

R&D ATWInnovation

Solid FoundationCharacteristicgovernance

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

Three major R&D management bodiesThe Company has set up the Project Management Committee, Standardization Management Committee, andExperimental Center Management Committee to coordinate and make decisions on major technological andmanagement innovation projects.Twelve technological innovation labs

ATW has vigorously explored to grow into a global supplier of core intelligent equipment for the emerging industries andtransformation of traditional industries based on the needs and technical characteristics of the three major industriesof PV, semiconductors, and lithium batteries, in combination with the application of comprehensive technical meansin mechanics, electrics, electronics, optics, machine vision, robotics, and computer. We have established 12 majorlaboratories centering on PV, semiconductors, and lithium batteries, fully equipped with advanced testing equipment,including non-destructive dicing saw, nanosecond infrared lasers, Beckhoff systems, area-array cameras, high-temperature heating test platforms, small automatic solar module laminators, and battery internal resistance tester, in abid to safeguard technological innovation.

LaserProcessingTechnologyLabGT Lab

PV SiliconWaferTechnologyLab

PV CellTechnologyLab

PV ModuleTechnologyLab

R&D Innovation Center (12 major laboratories)

Semiconductor

TechnologyLab

LithiumBatteryTechnology

LabMachine VisionTechnology Lab

MAT Lab

AI Lab

CAE LabSolar Cell Lab

Innovative R&D system

Three major innovative industrializationpractice bases

With the focus on the R&D of PV, lithium batteries, andsemiconductor equipment and the industrialization ofkey processes, and with a view to attracting externalresources for coordinated development, the Companyhas successively established the Jiangsu ProvincialEngineering Technology Research Center, the JiangsuProvincial Enterprise Technology Center, and the JiangsuProvincial Postdoctoral Innovation Practice Base, in a bidto jointly promote the Company to develop new productsand technologies that align with market demands and theCompany’s development strategy to ensure the Company’scompetitive edge in the industry.

1514

IndependentR&D ATWInnovation

Solid FoundationCharacteristicgovernance

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green DevelopmentLow-carbonPractices

Appendices

Technical reserves

ATW’s innovative thinking has been embedded into the products throughout the lifecycle. Building on years of continuous R&D investment and technology accumulation, the Companyhas developed an innovative technology reserve system, comprising four core supporting technologies (4M technology) and eight core application technologies. These technologieshave been applied to multiple core products of the Company’s main business, forming the Company’s core product system at the PV silicon wafer end, cell end, and module end.

Innovative technology reserves and products under development

Breaking the monopoly of foreign technologies: semiconductor wire bonding technologyIn order to achieve high-reliability welding of semiconductor chip leads, the Company comprehensively applied technologiesfor ultrasonic welding, high-speed motion control, high-precision optical positioning, and highly sensitive sensor detectionto overcome a number of technical difficulties, including ultrasonic applications, pressure control, wire detection, tensiondetection, multi-axis servo linkage, and visual follow-up positioning.The project was initiated in 2017. It took 4 years to achieve a repeatable positioning accuracy of ±3um, compatible with thetechnical indicators of 2-20mil aluminum wires and aluminum strips, and a yield rate above 99.95%, breaking the blockade offoreign technologies in this ?eld.

IndependentR&D ATWInnovation

Solid Foundation

Characteristic

governance

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

Products under development

Under researchUnder development

Large cell soldering stringerLarge wafer inspection systemPV high-e?ciency back-contact

soldering stringerComplete battery assembly lineComplete battery screen printing lineBattery annealing equipmentAdvanced laser processing equipment

for metallizationIntelligent logistics packaging line

Semiconductor bonderSemiconductor chip die bonderSemiconductor testing equipment

Semiconductor dicing sawDicing and bussing machineCzochralski monocrystal growth furnaceContinuous feeding machineSemiconductor monocrystal growth furnace

TOPCon battery equipmentLithium battery cell stacking machineSemiconductor packaging and testing

equipment

1716

IndependentR&D ATWInnovation

Solid FoundationCharacteristicgovernance

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green DevelopmentLow-carbonPractices

Appendices

To promote sustained product innovation, the Company has continued to optimize its talenttraining system and cultivate talents with innovative thinking and professional skills. Weinsist on building a highly educated and high-caliber R&D team. As of the end of 2023, theCompany has a total of 875 R&D personnel, up by 23.41% year on year, including 170 witha postgraduate degree or above. They have injected continuous power for the Company’sscienti_c research and innovation and facilitated the Company’s sustainable development.

Cultivation of innovative talents

No. of R&D personnel year-on-year growth 

No. of R&D personnel with a postgraduate degree or above

The Company has established a mature innovation incentive system to stimulatethe enthusiasm of sci-tech personnel, unlock their potential for scientific research,facilitate the commercialization of sci-tech achievements, and improve the Company’soverall technical capacity, management capacity and market competitiveness.

INNOVATIVE R&D INITIATIVES

Innovation incentive system

Innovation incentive

system

Purpose

Targetedemployees

Talent recommendationreward system for all

employees

Recommend external

professionals

All employeesSci-tech talent training

system

Motivate improvement of

technical capabilities

All employeesLi Wen Craftsman Cup

Evaluation

Major technologicalinnovations andbreakthroughs

All employeesRational suggestion reward

system

Motivate productoptimization andtechnological upgrade

All employeesPatent reward system

Solidify and protect technical

achievements

R & D personnelScienti?c research project

reward system

Motivate innovation of R&Dprojects and technologies

R & D personnelTalent promotion system

Management andprofessional skillsimprovement

R & D personnelReward system for organized

implementation of sci-techachievements

Encourage the transformation

of sci-tech achievements

R & D personnel

%

23.41

IndependentR&D ATWInnovation

Solid Foundation

Characteristic

governance

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

Industry-university-research collaboration

ATW Coshin signed a contract with TaixinMicroelectronics to jointly supportintelligent manufacturing

In an e?ort to further deepen industry-university-researchcollaboration, the Company has cooperated with ShanghaiJiao Tong University in sci-tech R&D, further integratingindependent innovation with industry-university-researchcollaboration. By means of industry-university integrationand university-enterprise collaboration, we have given fullplay to the complementary advantages of resources, jointlyexplored new models of cooperation, and strived to createa new trend of industry-university-research collaboration,thereby further elevating the Company’s technologicalinnovation.

On 30 November 2023, ATW Coshinreceived an order from Hangzhou TaixinMicroelectronics Co., Ltd. for more thanten IGBT aluminum wire bonders. The twosides will take advantage of this order tocooperate closely to overcome industrialdi?culties and make key contributions to thelocalized manufacturing of equipment in thesemiconductor packaging sector.

ATW and Wuxi Insti-tute of Technologyjointly establishedthe Wuxi ATW Intelli-gent ManufacturingInstitute to trainengineering andtechnical personnelfor ATW.

Innovative technical cooperation

1918

IndependentR&D ATWInnovation

Solid Foundation

Characteristic

governance

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

Cumulative No

2,219

1,3611,213

1,605

Innovation achievementsThe Company has stayed current on the technological development in the PV industry chain, lithium battery industry chain, and semiconductor industry chain, while paying close attentionto new processes and new technologies in the downstream application industries.Committed to innovation-driven sustainable development, ATW attaches great importance to IPR protection in accordance with relevant laws and regulations such as the Patent Law ofthe People’s Republic of China. The Company received the national IPR management system certi_cation for the _rst time in 2016, and it has remained valid ever since. We now have 11professional intellectual property engineers, 9 of whom are certi_ed patent agents and 5 of whom have passed Jiangsu Province Intellectual Property Engineer Training Program.The Company has clari_ed its IPR policies and goals, established an IPR database, and provided systematic management and _nancial support to ensure e^ective legal protection of scienti_cresearch results. In addition, a patent planning & decision-making mechanism and an early warning & emergency response mechanism have been established to further implement IPRprotection.To create a favorable environment for technological innovation, ATW has introduced the PIPR Reward SystemQ to reward duty-related inventions, motivate employees to actively engage intechnological innovation, and promote continuous progress in technological innovation.

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Practices

Appendices

As an industry leader in technological innovation, ATW has made remarkable achievements in the industrialization of innovation achievements. It has successfully transformed a number ofscienti_c research results into competitive products in the market, which helped the industry reduce costs and increase eaciency and promoted technological upgrade. Its R&D team alsoundertook the PJiangsu Province Sci-Tech Achievements Commercialization ProjectQ and the PJiangsu Province High-end Equipment R&D Forging-ahead ProjectQ, and participated intwo sci-tech R&D projects, including the PNational Science and Technology Planning ProjectQ.

The Company’s ?agship product “Photovoltaic MBB Cell Soldering Stringer” has accounted for over60% of the global market share for three consecutive years, with a commanding lead in the world. Ithas completely replaced imported equipment of the kind in China. The product has been certified asthe “National Single Champion Product in the Manufacturing Sector” and the “First Set of MajorEquipment in Jiangsu Province” and entered the Jiangsu Province New Technology and New ProductPromotion Catalog. In recent years, it has won the “First Prize of Jiangsu Science and TechnologyProgress in the Machinery Industry”, “Award for Contribution to Development of Private Sci-TechEnterprise”, “Second Prize of Wuxi Science and Technology Progress Award”, and “Wuxi PhoenixAward for Outstanding Software Products”.

In the ?eld of PV cells, gate line metallization is criticalto cell conversion efficiency. ATW’s laser enhancedmetallization (LEM) equipment can signi?cantly reducethe contact resistance between the gate line and thesilicon substrate, and increase the open voltage andshort-circuit current, thereby significantly improvingthe photoelectric conversion efficiency and fill factorof the battery to elevate the cell efficiency. After oneyear of repeated testing and optimization, the ATWtechnical team has con?rmed that the e?ciency can beraised by up to 0.3% or more, which greatly improvedthe power generation e?ciency of TOPCon modules.The cost-e?ectiveness of PV power generation and thereturns on investment of power stations will be furtherimproved.

As the size of the furnace and monocrystal becomes larger, it takes longer to stabilizethe temperature of the silicon liquid, resulting in relatively poor stability of the oxygencontent in monocrystal. Based on the market development needs, SCEC has focused onthis technical di?culty to develop, verify, and test multiple technologies, came up witha solution for reducing the oxygen content of monocrystal silicon wafers, and launchedthe low-oxygen monocrystal growth furnace: SC-1600-LO2. The R&D team masteredthe correlation between the probability of concentric defects and the oxygen content inmonocrystal, employed the low-oxygen ingot technology, and optimized the softwareand hardware design of the monocrystal growth furnace, thereby signi?cantly reducingthe proportion of concentric defects. Compared with the oxygen content of mainstreamsilicon wafers, under the same conditions, the low-oxygen monocrystal growth furnacecan reduce the oxygen content by more than 24% and improve the cell e?ciency by 0.1%based on the test wire veri?cation data.

As the PV wafers get larger and thinner, there are higher requirements for soldering stringer andwafer inspection system. The Company has developed ultra-high-speed soldering stringer and waferinspection system that meet the needs of larger and thinner wafer production. The production capacityof the wafer inspection system has reached 13,500 pieces per hour, which is 60% faster than theprevious generation of equipment in the industry. It is not only used for discharging large and ultra-thinwafer, but also features higher-precision detection capabilities. Since its launch, it has gained marketrecognition and received bulk orders from customers.

Industrialization of innovation achievements

Photovoltaic MBB Cell Soldering Stringer completelyreplaced imported equipment of the kind

SCEC low-oxygen monocrystal growth furnace SC-1600-LO2

The wafer inspection system usher in the era of ultra-high-speed wafer inspection

LEM equipment raises eaciency signi_cantly by up to 0.3%

Market share of over

Oxygen content reduced by more thanImproved cell e?ciency by

Raise e?ciency by up to

The production capacity of waferinspection system has reached

faster than previous generation ofequipment in the industry

%

%%

%

pieces per hour,

%

0.1

0.3

13,500

2120

IndependentR&D ATWInnovation

Solid FoundationCharacteristicgovernance

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

During the reporting period, ATW actively advanced the overall strategic goals (visualization, digitization, and intelligence) of Psmart manufacturingQ factories with the help of digitaland intelligent technologies. Based on interactive innovation of digitalization, technologies, processes, and organization, we have upgraded process techniques and optimized workprocesses. Meanwhile, we have brought together the new forces for manufacturing upgrades and integrated the most cutting-edge technologies into smart manufacturing solutions, witha view to delivering more eacient production line and creating greater value for our customers, contributing to industry eaciency improvements, and jointly building a low-carbon, greenand sustainable future.

In response to the warehousing pressure and decentralized management amid growing business, we have integrated some of the leased factory resources and applied the WMS system forreal-time material collection, shelving, sorting, and other functions to ensure accurate and timely out-put and in-put of the warehouse, which increased the logistics eaciency.

Intelligent logistics center

Achievementsin promoting

intelligentlogistics center

INTELLIGENT DEVELOPMENT AND DIGITAL UPGRADE

Integrate resources for centralized allocation to improveeaciency and reduce fault tolerance.

Uni_ed allocation, eacient distribution plus GPS positioning.

Eliminate quality hazards caused by storage environmentand manage storage of materials in the _rst-in, _rst-outprinciple.

Integrate factory sites and ensure standard and tidy surroundingenvironment.

Optimize management

Logistics and transportation

Improve quality

Improve 5S management

IndependentR&D ATWInnovation

Solid Foundation

Characteristic

governance

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

We piloted the phased implementation of intelligence (mechanizedautomaticIT-basedintelligent development) at XuRi. During the phase of automation,we made progress in 18 automation projects in 2023, including 9 sets of self-developed equipment and 9 sets of imported equipment, in a bid to improvepersonnel eaciency and optimize work processes.As of the end of 2023, a total of 9 projects had been implemented, including 5sets of self-developed equipment and 4 sets of imported equipment, with 2 itemsawaiting acceptance in the near future.Thanks to the intelligence, the first-pass yield of products exceeded97.55%. (Note: overall pass rate). In the future, the Company will continueto promote the implementation of intelligent supply to elevate overalleaciency.

XuRi’s double-speed chain has been initially put into use

Process intelligence

Digital upgradeDuring the reporting period, the Company opened a new chapter in digital transformationand upgrade. With SAP at the core, the Company simultaneously launched and optimizedfive IT systems, namely OA, SRM & MCS, WMS, HRM, and E-learning systems, to achieveseamless transmission of master data and business data.In addition, to provide strong data support for operational management and decision-making, the Company integrated the above-mentioned IT system data through the BIsystem and generated data analysis reports (including trend charts, ring comparisoncharts, etc.), enabling relevant personnel to view the data results more intuitively andimprove the eaciency of data analysis. Meanwhile, the Company has introduced the PSAPOperation Health CheckQ and other regulations on data quality management, in a bid tomonitor the data situation in a timely manner.

2322

IndependentR&D ATWInnovation

Solid FoundationCharacteristicgovernance

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green DevelopmentLow-carbonPractices

Appendices

SOLID FOUNDATIONCHARACTERISTIC

GOVERNANCECommitted to compliant operation with integrity, ATWhas continued to improve the corporate governancestructure, optimize internal management, perfect therisk management and control mechanisms, maximizeshareholder interests and corporate value, and creategreat economic and social bene_ts.

SDGs

Governance structureOperation of the three meetingsProtection of shareholders’rights and interestsInternal control and risk managementAnti-corruption and anti-briberyParty building

Peace, justiceand stronginstitutions

%

%

448,184,300

35.69

Shareholders’meetings in 2023Meetings of Board of DirectorsMeetings of Supervisory BoardPass rate of reviewed matters

Annual number of investors receivedCredit rating

The amount of cash distribution in 2023 is CNY

Percentage in annual net pro_t

Operation of the three meetings

Protection of investors’rightsand interests

Information disclosureReturn to shareholders

A

Our achievements

Solid Foundation

Characteristicgovernance

Good FaithGreater ProsperityIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

Governance structureOperation of the three meetingsProtection of shareholders’rights and interestsInternal control and risk managementAnti-corruption and anti-briberyParty building

ORGANIZATION

Shareholders’meeting

Board of DirectorsSecretary of theBoard of Directors

Supervisory Board

Strategy and ESG

CommitteeRemuneration andAppraisal CommitteeNomination CommitteeAudit Committee

CFOGeneral Manager

ATW Supply ChainXuRi TechnologySCECCoshin TechnologyLeddo TechnologyWuxi ZhiyuanATW JiexinPolar PVR&D CenterStrategic Procurement DeptSales CenterManufacturing CenterQuality DeptProcess Information DeptEngineering service centerGeneral Management DeptHR DeptFinance CenterRisk Control & Audit DeptATW OpticalSecurities Investment DeptATW Intelligent

During the reporting period, the Company has constantlyimproved the corporate governance system and structure instrict accordance with the Company Law, Securities Law, Codeof Corporate Governance of Listed Companies, Rules Governingthe Listing of Stocks on the STAR Market of the Shanghai StockExchange, and other regulatory documents on the governanceof listed companies issued by the China Securities RegulatoryCommission.

The Company has convened shareholders’

meetings in strictaccordance with the Articles of Association, Rules of Procedure forthe General Meeting of Shareholders, and other relevant laws andregulations. Both on-site and online voting was implemented toensure that all shareholders, especially small and medium-sizedshareholders, can fully exercise their voting rights. The Company’scontrolling shareholders and actual controllers earnestlyperformed their duty of good faith, with no case of harming therights and interests of the Company and other shareholders.During the reporting period, the Company held 5 general meetingsof shareholders and reviewed a total of 22 proposals.

Shareholders and shareholders’meetings

OPERATION OF THE THREEMEETINGS

Shareholders’meetingsReviewed proposals

Solid FoundationCharacteristicgovernance

Good FaithGreater ProsperityIndependent R&DATW Innovation

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green DevelopmentLow-carbon

Practices

Appendices

The Company has convened the meetings of Board of Directors in line with the requirements of the Articles of Association, Rules of Procedure for the Meetings of Board of Directors, andother relevant laws and regulations. The Company’s directors have actively attended the meetings of Board of Directors and special committees and shareholders’

meetings to masterrelevant laws and regulations, understand their rights, obligations and responsibilities as directors, and safeguard the legitimate rights and interests of all shareholders. Meanwhile, theAudit Committee, Strategy and ESG Committee, Nomination Committee, and Remuneration and Appraisal Committee under the Board of Directors have ful_lled their responsibilities inline with the requirements of the Working Rules for the Audit Committee, the Working Rules for the Strategy and ESG Committee, the Working Rules for the Nomination Committee, andthe Working Rules for the Remuneration and Appraisal Committee. During the reporting period, the Company convened a total of 23 meetings of Board of Directors that reviewed 82proposals. The Board of Directors comprises 9 directors, including 3 independent directors and 2 female directors.

The Board of Supervisors, comprising 3 supervisors, earnestly performs its duties in accordance with the Articles of Association, Rules of Procedure for the Board of Supervisors, andother relevant laws and regulations. The Board of Supervisors supervises the Company’s _nance, major asset restructuring, related transactions, and compliant performance of dutiesby the directors and executives, in a bid to safeguard the legitimate rights and interests of the Company and shareholders.The Company convened 22 meetings of the Board of Supervisors in 2023 that reviewed 71 proposals.

Directors and Board of Directors

Supervisors and Supervisory Board

82932

Meetings of Board of Directors

No. of supervisors

Reviewed proposalsNo. of directorsNo. of independent directorsNo. of female directors

Meetings of the Supervisory BoardNo. of reviewed proposals

Solid FoundationCharacteristic

governance

Good FaithGreater ProsperityIndependent R&DATW Innovation

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green DevelopmentLow-carbonPractices

Appendices

PROTECTION OF SHAREHOLDERS’RIGHTSAND INTERESTS

In the principles of compliance, equality, initiative, and honesty and integrity as stipulated in the PGuidelinesfor the Investor Relations Management of Listed CompaniesQ, we have formulated the PInvestor RelationsManagement SystemQ to strengthen the Company’s communication with investors and potential investors,e^ectively protect the legitimate rights and interests of investors, especially the broad public, and establish along-term, stable and harmonious relationship between the Company and investors.During the reporting period, we have actively communicated with investors on statutory information fordisclosure, corporate development strategy, operation and management information, and corporate culturedevelopment. Meanwhile, we took the initiative to make public more of the Company’s environmental, socialand governance information, so that the investors could know more about Autowell from multiple perspectivesand dimensions.

In strict compliance with the Company Law, the Securities Law, theMeasures for the Administration of Information Disclosure by ListedCompanies, Rules Governing the Listing of Stocks on the STAR Marketof the Shanghai Stock Exchange, Articles of Association, and otherrelevant regulations, Autowell has formulated internal control systems,such as the PManagement System for Information DisclosureQ and thePManagement System for Suspension and Exemption of InformationDisclosureQ, stressing the quality and standardized procedures forinformation disclosure to ensure the truthful, accurate, complete, timelyand fair disclosure of major information. Meanwhile, we aim to ensurethat all shareholders have fair access to information, all stakeholderscould promptly understand the Company’s operation and progress ofmajor events, and the legitimate rights and interests of investors areprotected.Company websiteTelephone and emailconsultationSSE Info E-platformShareholders’meetingPerformance brie_ngs, analysts’meetings,on-site visits, road showsMedia interviews, press conferences

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from investorsOver

2023

Solid FoundationCharacteristicgovernance

Good FaithGreater ProsperityIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

While focusing on our own development, we attach great importance to shareholder returns. Since the Company’s IPO, we have formulated a cash dividend plan in strict accordancewith the Company’s Articles of Association, enabling shareholders to bene_t from the CompanyOs development and promoting the rational development of capital market.

202120222023

202120222023

Share of cash distributions in the yearly pro_ts over

the past three years

Amount of cash distribution over the last three years

Sustained shareholder returns

In the principle of Pintegrity and honestyQ, the Company has formulated the PRules on the Meetings of Convertible Corporate Bond HoldersQ and highly values the protectionof creditors’legitimate rights and interests. In 2023, apart from raising funds from commercial banks, the Company publicly issued convertible corporate bonds worthy of CNY 114million to unspeci_ed entities, in a bid to further improve the corporate R&D capabilities, enrich product lines, optimize product portfolio, upgrade capital structure, enhance riskresistance, and enhance operational stability and sustainability.As of 31 December 2023, the investments in relevant projects are making progress as planned. According to the CSCI Pengyuan Credit Rating Report, the Company was rated at AA- forstrictly observing _nancial credit policies and disciplines and promptly ful_lling responsibilities and obligations of a debtor.

Protection of creditors’interests

35.69%

42.58%

34.51%

CNY157,872,000CNY245,942,100CNY 448,184,300

Solid FoundationCharacteristicgovernance

Good FaithGreater ProsperityIndependent R&DATW Innovation

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

INTERNAL CONTROL AND RISK MANAGEMENTAutowell regards internal control and risk management as an important part of the Company’s sustainable development. During the reporting period, we have further improved the Company’sproduction and operation compliance systems, formulated the PInternal Audit SystemQ and other system documents, and standardized the compliance management process.

In accordance with the requirements of relevant laws and regulations, Autowell has put in place a sound internal control system and the essential internal supervision mechanisms at thecorporate level and for all processes. We have actively carried out risk control, authorization and approval control, the control of incompatible duty separation, and _nancial budget control, aswell as regular self-evaluation of internal control.During the reporting period, the Company’s internal control mechanisms functioned e^ectively, with no major or material defects in _nancial or non-_nancial internal control, providingrational guarantee for the compliance of corporate operations, asset safety, as well as the true and complete disclosure of _nancial reports and related information.

Risk management goals Protect corporate assets             Improve decision-making capacity             Promote business continuity              Ensure compliance with laws and regulations         Building on a comprehensiverisk management organiza-tional system, the Companyhas clari_ed the positioningand responsibilities of eachfunctional department, theBoard Secretary’s Office,the Risk Control and AuditDepartment, and otherdepartments in the riskmanagement system to safe-guard the Pthree lines ofdefenseQ for risk manage-ment.

As the first line of defense for risk management, each functionaldepartment should start from combing through their respective businessprocesses, evaluate business risks under the guidance of the RiskManagement Department, and rank the risks by the degree of importance.As the second line of defense for risk management, the Board Secretary’sOffice follows the established risk response strategies and managementmeasures to conduct inspections and reviews of the risk managementsituation and response capabilities, evaluate the effectiveness of riskmanagement of major responsible departments, provide professionalguidance, and follow up on the progress of recti_cations.As the third line of defense for risk management, the Risk Control and Audit Departmentsupervises, evaluates and issues reports on the risk management in line with relevantregulations and the e^ectiveness of the risk management by functional departments, withreference to the economic responsibility audits, internal control audits or special audits.

       Risk warning measuresTo scientifically and accurately identify, evaluateand predict the Company’s major compliance risks,we conduct in-depth review and evaluation ofcompliance risks in various business sections, closelytrack the updates of domestic and overseas legal andcompliance policies, and form a major risk databaseand early warning indicators. We have conducteddemonstrations on quantitative indicators,qualitative indicators, and early warning thresholdsfor risks in market, finance, strategy, operations,legal and other modules. We have strengthenedcompliance governance in key areas, done a good jobin early warning and response to compliance risks,and speci_ed responsibilities of various departmentsfor risks management.

Three lines of defense

Internal control system

Risk management system

Functional departments

Securities Investment Department

Risk Control and Audit Department

First line of defenseSecond line of defenseThird line of defense

Solid FoundationCharacteristic

governance

Good FaithGreater ProsperityIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

The Company has consistently abided by national laws, regulations and rules on combating corruption and upholding integrity, standardized the business operations and employees’conducts, reinforced integrity-related risk prevention and control, and carried out anti-corruption activities regularly, thereby creating a favorable environment for corporatedevelopment.

The Company upholds business ethics, strictlyobserves laws and regulations, including the PLawfor Countering Unfair CompetitionQ and the PInterimProvisions on the Prohibition of CommercialBriberyQ, and adopts a zero-tolerance policy againstcommercial bribery in all forms.In 2023, the Company successively unveiled thePAnti-Fraud and Reporting Management SystemQ,PConflicts of Interest Management SystemQ,PRegulations on Reporting and Handing Over theGifts and Cash GiftsQ, and PAutowell Red Linesfor Business IntegrityQ, laying the institutionalfoundation for combating corruption and upholdingintegrity.

Autowell advocates honesty, trustworthiness, integrity, and self-discipline amongemployees, while making e^orts to develop a culture of integrity and a clean and uprightcorporate environment.

The Company regularly carries out publicity activities, training sessions, and warningeducation among all employees to combat corruption, in addition to a variety of integrityeducation activities.

The Company organized employees to study “Conflicts of Interest Management System”,engaging over 500 employees.The Company held two training sessions on the “Anti-Fraud and Reporting Management System”,“Regulations on Reporting and Handing Over the Gifts and Cash Gifts”, and “Autowell Red Linesfor Business Integrity”, engaging more than 50 employees.The Company provided themed lectures on prevention of duty-related crime risks amongemployees, attended by more than 80 employees.

Integrity system building

Develop the culture of combating corruptionand upholding integrity

Anti-corruption and integrity training

ANTI-CORRUPTION AND ANTI-BRIBERY

On 15 June 2023, the “Integrity in Autowell” o?cial WeChat account was created. The numberof subscribers has exceeded 1,000. We posted 20 articles through the account, covering holidayreminders on integrity, interpretation of the Company’s systems, articles on the prevention ofcorporate duty-related crimes, publicity of Integrity Publicity Month, and knowledge contests, ina bid to facilitate the sound and steady development of the Company.During the Integrity Publicity Month in December 2023, the Company organized three themedactivities in the forms of essay writing, knowledge contest, and lectures.

We encouraged our employees and related external parties to report the fraud or relevantcases of employees via the above reporting channels. We have set up reporting channels,including email, corporate website, official WeChat account, and mailing. Meanwhile,we have prioritized the confidentiality of reporting information, combined with relevantsystems to specify measures to protect the whistleblowers and strictly forbid retaliation.Reporting to Discipline Inspection Department:

Reporting to the chairman:

Corporate website: https://www.wxautowell.com/about/messageWeChat official account: Integrity in Autowell (WeChat ID:

lianjieATW)Mailing address: Discipline Inspection Department, Wuxi AutowellTechnology Co., Ltd., No. 3 Xinhua Road, Xinwu District, Wuxi City,Jiangsu Province

Email: jubao@wxautowell.com

E?ective reporting channels

Solid FoundationCharacteristicgovernance

Good FaithGreater ProsperityIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

PARTY BUILDING

Autowell is committed to strengthening the Party’s leadership in promoting and improving corporate governance. The Company’s Party branches have given full play to their central and leadingrole in political a^airs towards the goal of Pstandardizing Party building and enhancing the capabilities of Party organizationQ. Meanwhile, we have earnestly complied with the superior body’srequirements on Party building, stepped up innovation, further promoted the scienti_c, standardized and institutionalized development of the Party branches, thereby giving better play to thecritical role of Party organizations and the vanguard and exemplary role of Party members.

The corporate Party branch was established in 2016 and elevated to a Partycommittee in 2017. We have been committed to cultivating high-caliber talentsfrom among employees to be Party members and promoting them into leaders,while passing on the Party-building ideas to all sta^.The Party committee currently comprises 4 Party branches (the 1st branch mainlyconsists of R&D personnel, the 2nd branch of engineering service personnel,the 3rd branch of functional personnel, and the 4th branch of manufacturingpersonnel) and 8 Party groups, with a total of 139 Party members.

Party members have played a pioneering and exemplary role, inspired positivity,and contributed to an enterprising working environment in their posts acrossvarious departments. During the reporting period, we have convened 6 Partymember meetings, 13 Party branch committee meetings, and 12 Party groupmeetings.

st Party branch3

st Party branch4

st Party branch

Institutional building

To create a Party-building atmosphere in the patriotic workshop, Autowell set up the FourthParty Branch—Manufacturing Department. As such, we build the Party branch on the frontline of production to give full play to the pioneering and exemplary role of front-line Partymembers, boost the productivity of the Manufacturing Department, and stimulate the sci-techinnovation with the cohesive power of Party building, thereby safeguarding the Company’shigh-quality development. .

Secretary: 1

DeputySecretary: 1

Disciplineinspectioncommittee: 1member

PublicityCommittee: 2members

OrganizationCommittee: 2

members

Engineeringservice personnel

Functionalpersonnel

Manufacturingpersonnel

Party membermeetings

Party branches

Party branchcommitteemeetings

Party groups

Party groupmeetings

Party members

①Party group

②Party group

③ Party group

④Party GroupParty GroupParty GroupParty GroupParty Group

⑤⑥⑦⑧

Integration of Party building with corporate business

CPC Party Committee

st Party branchR&D personnel

Solid FoundationCharacteristicgovernance

Good FaithGreater ProsperityIndependent R&DATW Innovation

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

In 2023, under the leadership of the Company’s Party Committee, all Party branches have thoroughly studied and implemented the Xi Jinping Thought on Socialism with Chinese Characteristics fora New Era and the guiding spirit of the 20th CPC National Congress, in combination with in-depth themed education. Meanwhile, we have made solid progress in the activities of PYear of Capacityand Conduct ImprovementQ and PStandardized Party Branch BuildingQ and carried out innovative activities like Pbrand creationQ and Ppaired Party buildingQ, in a bid to strengthen the senseof responsibility and further enhance the critical role of Party branches and the vanguard and exemplary role of Party members.

We’ve made solid progress in themededucation, incorporating PXi Jinping:The Governance of China IVQ, PSelectedReadings from the Works of Xi JinpingQ,and General Secretary Xi Jinping’s im-portant speeches into the study plan forthe branch Party committees. Based onthe system of Pholding Party branchgeneral meetings, meetings of Partybranch committees, Party group meet-ings, and Party lecturesQ, coupled withthe themed Party Day activities, we con-ducted two sessions of group studies, ??sessions of self-study, and five themedParty lectures.  The Company distributed books suchas PSelected Readings from the Worksof Xi JinpingQ and PAnswers to ?––Questions about the Report of the ?–thCPC National CongressQ to all Partymembers and strengthened the assess-ment mechanism for Party membersand cadres’daily study. By now ?· partymembers and cadres have passed theassessment.

By integrating the themedParty day activities withthe Company’s corebusiness, Party-buildingbrand creation, and Partymember education, theCompany carried out ??themed Party Day activ-ities in an in-depth andpractical manner.

The Company is committed toParty building and ideologicaleducation for cadres and em-ployees through the officialWeChat account. Dedicatedpersonnel has been assignedto review and publish articleson the website, along withprompt information disclosureand updates. In addition, wehave built a Party-buildingactivity room, revolutionaryworkshops, and Party-buildingpublicity bulletin to create agreat atmosphere for Partybuilding. 

To carry forward the traditionof revolution and learn thegreat spirit of persistence andrevolution from our ances-tors, we visited the revolu-tionary bases, including WuxiLearning Base of Yan’an Spirit,Maoshan Memorial Hall ofNew Fourth Army, JiangyinMemorial Hall of Dujiang Bat-tle, and Martyrs Memorial Hallin ?–?·. Such visits have e^ec-tively strengthened our idealsand beliefs to better performduties, fulfill promises, andtake on responsibilities atwork.

In the principles of joint Party-building, jointpursuit for excellence and common progress ofthe alliances, the Company’s Party committeehas signed Party-building alliance responsibilityletters with relevant enterprises and institutions.Through daily work exchanges in Party building,we have developed a new Party-building patternfeaturing Pjoint construction and management,sharing of resources, and common develop-mentQ.During the reporting period, the Company andthe alliance units successively held large-scalehiking activities to promote environmental pro-tection themed on PRemain true to our originalaspiration and follow the Party leadershipQ, ananti-corruption education activity themed onintegrity, and the activity to enhance the sense ofnational security themed on PFollow the histori-cal footprints to experience the stormy journeyQ.

Party building activities

Themed education programs

Themed Party Dayactivities

Awareness educationfor Party members

Visits to revolutionarybases

Party-building alliance activities

Solid FoundationCharacteristic

governance

Good FaithGreater ProsperityIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

Improve Party conduct and corporate integrityWe have always attached great importance to prevention of violations of Party conduct and government integrity, while striving to create a clean and upright working environment. TheCompany conducted warning education through typical real-life cases of combating corruption and upholding integrity to enhance the persuasiveness and effectiveness of legal anddiscipline education.

We organized lectures and heldface-to-face talks on integrity,organized sta^ to watch videoson anti-corruption for threetimes, and kept abreast of thework and life conditions of mid-dle managers and executives,so as to ensure unwaveringawareness of integrity.

We strictly uphold the principleof democratic centralism. All thethree categories of major issuesand the issues involving largefunds are subject to collective dis-cussion for decision making. Thebranch Party committee held fourmeetings to discuss major issues.

All Party members signed a let-ter of commitment to integrityto further strengthen the pre-vention and control of integri-ty-related risks.

We develop intra-Party democracyand strengthen intra-Party supervi-sion for Party members to better un-derstand and engage in intra-Partya^airs.

Address root

causes

Strengthenoversight over andrestraint on power

Carry out in-depth integritycampaigns

Improvetransparency inParty a?airs

Solid FoundationCharacteristicgovernance

Good FaithGreater ProsperityIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

GOOD FAITHGREATERPROSPERITYEmployees are fundamental for an enterprise’s development.Upholding the people philosophy of PActing in GoodFaith for Shared Prosperity,Q Autowell opens its arm tothe world’s bright minds and empowers them to fully tapinto their potential and realize their aspirations. We haverelatively complete human resources management systemsfor employee rights and interests, employee development,employee care, and workplace safety. We make continuedefforts to attract and train talents, improve employeebenefits, protect employee rights and interests, promoteemployee development, and enhance team building, so thatemployees can grow with the Company.

Employment equity and diversityProtection of employee rights and interestsPromoting employee developmentCare for employee well-beingProtection of employee health and privacy

SDGsGood healthand well-being

Qualityeducation

Gender equalityDecent work

and economicgrowth

Total headcount as of the end of the reporting period

Number of employees o?eredrestricted stock units

Number of employees who got apromotion in 2023

Employee training expendituresCoverage of physical checkups foremployees

Promoted to managementPromoted to team leader

Total training hoursIncidence of occupational disease

Promoted to higher technology role

Percentage in totalnumber of employees

(as of December 31, 2023)

Coverage of additional commercial insurance foremployee and one child

Number of new hires in 2023Labor contract signing rateEmployment

Bene_ts

Promotion

Training

Health

%

%%

%%

4,8322,000

1,283

RMB13,269,000

73155

55,000

4,83226.55

Performance by the Numbers

Good FaithGreater ProsperitySolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

3736

In line with the principles of fairness, impartiality, and openness, we established a sound recruitmentsystem and constantly improved internal documents on the recruitment of experienced hires, campusrecruitment, and internal recruitment. We have diverse recruitment channels such as online recruitment,campus recruitment, onsite recruitment, headhunting, school-enterprise cooperation, internalrecommendation, and social media recruiting so as to bring in multidisciplinary talent meeting the needsof our business development.

Performance in diversity

Gender

ProfessionalsOther

Age

Education

Number of femaleemployees

Production personnelSalespersonsFinancial personnelEngineering personnelR&D personnelManagement personnel

roportion of femalemanagers

≤ 30PhDdegree

Master’sdegree

Collegedegree

Juniorcollegedegree

UnderjuniorcollegeNumber of maleemployees

Number ofethnic minorityemployees

Numberof foreignemployees

31–40> 40

1,956

1,477

2,657

1,470

2,275

1,816

4,271

19.37%

Recruitment

Number of recentstudent hires

During thereportingperiod:

Number of newexperienced hires1302,000

EMPLOYMENT EQUITY AND DIVERSITY

Autowell strictly complies with the Labor Law of the PeopleOs Republic of China, the Labor Contract Law of the People’s Republic of China, the Law of the People’s Republic of China on theProtection of Rights and Interests of Women, and other pertinent laws and regulations. We uphold equality in the workplace, resolutely avoid child and forced labor, and oppose any form ofdiscrimination. The Company constantly improves internal systems and regulations, provides an equal and open platform for the development of employees regardless of their gender, age,nationality, and ethnic group, and strives to build a shared home where our people work together to realize their ambitions.

Good FaithGreater ProsperitySolid FoundationCharacteristic

governanceIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

PROTECTION OF EMPLOYEE RIGHTS AND INTERESTSAutowell adheres to the compensation management concept that values people and emphasizes performance. We work to develop fair, transparent, and rational compensation andbene_ts systems where employees are paid based on their performance and contributions, and better bene_ts are o^ered to attract and retain talent and enhance team cohesionand our core competitiveness.We seek to build a competitive compensation system where a compensation framework is built on the value of posts and skill levels through post classi_cation and post valueevaluation methodology, and variable compensation is determined based on employee performance. In addition, we implement dynamic compensation management, for example,giving raises for promotions and skill improvement.During the reporting period, the Company continuously improved various bene_ts management systems, standards and, processes to make best use of bene_ts.

Compensation system

Bene?ts system

Insurance

Flexible working

Holiday entitlementShuttle serviceSubsidies

The Company pays ?ve social insurance premiums (pension, medical insurance, unemployment insurance, maternity insurance, work injury insurance) and the housingprovident fund for employees who have signed o?cial labor contracts. On top of that, the Company provides additional commercial insurance for the employee and onechild of theirs.The Company implements a flexible working system. Particular departments allow flexible work arrangements, while other departments work on an eight-hourschedule. Arrangements for the weekends and public holidays conform to applicable laws and regulations.

In addition to statutory holidays and leaves, the Company o?ers additional paid annual leave and paid sick leave to eligible employees. It also provides parental

leave, only-child care leave, incentive leave, and overseas family member employment leave and sees to it that employees are entitled to rest breaks and leaves.In order to help employees commute to and from work conveniently, the Company o?ers a wide range of shuttle bus routes plus travel allowances.Airtime stipend, ravel allowance, and other subsidies are available.

To grow together and share fruits of development with employees, the Company pays high attention to the education of employees’children so employeesand their family can prosper. In the autumn of 2023, through school-enterprise cooperation, the Company introduced the high-quality educational resourcesand teachers of Jinqiao Education Group in Wuxi to carry out activities aimed at promoting the well-rounded development of employees’children.Education bene?ts for employees’children

Good FaithGreater Prosperity

Solid FoundationCharacteristic

governanceIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

3938

The Company recognizes the contributions of employees and gives incentives to outstanding employees in di^erent positions such as sales, R&D, and operations through equityincentives and cash incentives.

We actively implement domestic management and safeguard employees’right to know, participate, express, and su-pervise. In order to better regulate internal communication management, provide smooth communication channels foremployees, and e^ectively convey and implement the Company’s corporate culture and strategic objectives, we updat-ed and released the Employee Handbook (?–?·) in accordance with pertinent laws and regulations, established diversecommunication channels between management and employees, gathered opinions from employees on the Company’soperations and major matters concerning employee interests, held democratic consultations, and took measures to pro-tect employee rights and interests, inspire their enthusiasm and creativity, and strengthen science-based management.

Suggestion box in oace area

In order to further improve its long-term incentive mechanism, attract and retain high-caliber talent, and inspire the enthusiasm and creativity of core personnel,Autowell launched a restricted stock unit scheme for 2023 during the reporting period.Scope of the incentive scheme: The Company planned to award restricted stock units (RSUs) to 1,283 employees for 2023, accounting for 26.55% of the totalemployees (4,832 as of December 31, 2023).Total RSUs awarded: The Company planned to award 756,214 RSUs to select employees, accounting for about 0.49% of the total amount of the share capital(15,4827,300) at the time when the scheme was announced.

Employee incentives

Democratic rights

Equity incentives to boost employee enthusiasm

Number of recipients of RSUsTotal RSUs awarded

26.554,8321,283756,214

Percentage in total number ofemployees

As of December 31, 2023

%

Good FaithGreater ProsperitySolid Foundation

CharacteristicgovernanceIndependent R&DATW Innovation

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

The Company o^ers an enabling environment for employee development and organizes various training programs such as training on specialized skills, management skills, employee health,and children’s education according to the characteristics and needs of di^erent posts. The Company implements a dual-sequence career development scheme to facilitate personalizeddevelopment of employees.In order to encourage employees to upskill themselves, the Company o^ers reimbursements to employees if they are granted post-related vocational quali_cations certi_cates, such as theChartered Institute of Procurement and Supply (CIPS) certi_cation and the Project Management Professional (PMP) credential. Guidance is also provided to help employees develop careerdevelopment plans.

PROMOTING EMPLOYEE DEVELOPMENT

Autowell has a personalized training system and provides targeted training programs according to the needs of di^erent employees. The Company’s online learning platform o^ers a wealth ofresources to help employees broaden their horizon.

Provide induction training, occupational safety training, corporate culture training, and skills training on a regular basis to help new comers ?t in as soon aspossible, learn about corporate culture, get familiar with the Company’s operation and management models and various rules and regulations, and improvetheir professional qualities, thus laying a solid foundation for doing their jobs.

Organize a series of courses on manager role transition, how to discover and use the right people, strategy decoding, target management and plan execution,coaching leadership, high-quality decision-making, team canvas, and other topics for supervisor- and manager-level personnel, so as to upskill managers atdi?erent levels and serve the Company’s business development.The HiPo Program for High-Potential Talent aims to select and cultivate high-caliber talent with a great potential, so as to build a talent pool and provide humanresources support for the sustainable development of the Company.The annual skill improvement camp for frontline team leaders is held both online and offline and involves the processes of learning, examination, andevaluation. It offers special courses such as frontline production management, refined management, and quality management to improve the onsitemanagement ability of frontline team leaders.

The “Qingsong Program” for recent graduates aims to help them get a comprehensive understanding of the Company, improve their professional qualities,and ensure smooth transition from campus to corporate life.Carry out special upskilling programs regularly according to business needs; organize open lecturers or seminars based on business scenarios; and provideabundant learning resources on the online learning platform for employees to learn by themselves.

New experienced

hiresRecent graduate

hiresCurrentemployeesManagementpersonnelTalent poolFrontline team

leaders

Employee training

Target traineesTraining content

Good FaithGreater ProsperitySolid FoundationCharacteristic

governanceIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

4140

Books can take us to the places where our feet can’t and present us what our eyes can’t see.Reading a book is like having a dialog with an intelligent person and dealing with a master. OnJuly 25, 2023, Manager Yang Houzhong, head teacher of Class 01 of the HiPo Program, chaired ashared reading session, where colleagues from the class were gathered to share what they felt afterreading the popular bookThe 7 Habits of Highly E?ective People.

HiPo Program: The 7 Habits of Highly E?ective People sharing reading session

Training by the numbers

Training expendituresper employee

Average training hoursfor new employees

Average training hours formiddle-level managers

Proportion of middle-levelmanagers who received training

Average training hours forsenior executives

Proportion of senior executiveswho received training

Average training hours forfemale employees

Proportion of female employeeswho received training

Proportion of new employeeswho received training

Average training hoursfor R&D personnel

Proportion of R&D personnelwho received training

Training hours peremployee

RMB3,000

5310

807090

hours

hours

hourshourshours

hours%

%%%

%

Good FaithGreater ProsperitySolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green DevelopmentLow-carbonPractices

Appendices

Employees in the management sequence take on moreresponsibility to get a promotion and become a higher-level manager.

Autowell o^ers multi-dimensional talent development paths, endogenous career development paths, and customized skills matrices. The Company devises a career development plan foreach employee and a promotion system for each employee to meet the common development needs of employees and the company.

Growth path

Growth pathEmployees sharpen their skills and accumulate experienceat speci_ed posts to grow into a specialist in a particularfield. For the purpose of growing with employees, theCompany fully exploits various resources and conditionsto provide training and development opportunities foremployees help them exert their potential completely.

Promotion

Sta^ Member

Junior Engineer

Middle-levelEngineer

Senior Eng(teer

Senior Sta^Engineer

Principal Engineer

Supervisor

Manager

Director

Management

P1-----P6Manager in an organization: Perform planning, organizing,leadership, control, and other functions to coordinate and leadteam members towards meeting the set targets.

Specialists: Specialists are the pivot of corporate development.They have an impressive educational background, rich professionalknowledge and experience, and a great capacity to learn.

Specialist

P19Scientist

P18

P17Chief Expert

M10Deputy General ManagerM9Senior DirectorM8Director

M11General Manager

M7Vice Director

P16M6Senior Manager

P12

P15M5Manager

P11Senior Sta? Engineer/Specialist

P14

ExpertM4Deputy General Manager

P10

P13M3Senior supervisor

P9M2Supervisor

P8Senior Engineer/SpecialistMAssociate Manager

P7

Dual-sequence career development scheme

Management

Specialist

Good FaithGreater ProsperitySolid FoundationCharacteristic

governanceIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

4342

CARE FOR EMPLOYEE WELL-BEING

Autowell cares for employees and emphasizes work-life balance. A variety of employee activities such as birthday parties, holiday perks, team building activities, and psychological consultingare carried out to increase employees’sense of belonging and identity with the Company.

Team building activities are designed to foster ahealthy, harmonious, pleasant, and positive workenvironment and further strengthen interdepartmentalcommunication, solidarity, and cooperation, enhanceteam cohesion, and increase the work enthusiasm andefficiency of staff. The Company organized a sportscarnival in June 2023.

Team building activities

Sports carnival

In order to enrich the life ofemployees and improve theirsense of happiness, the Compa-ny sets up interest groups andconducts internal and externalcompetitions, mountaineering,race walks, and sports meet-ings on a regular basis. Colorfulactivities are also carried outto celebrate the Internation-al Women’s Day, the WorldReading Day, the Dragon BoatFestival, the Qixi Festival, theTeachers’Day, the Mid-AutumnFestival, and other festivals.

Interest activities

Celebrations on theInternational Women’s Day

Sports meetingsInterest activities

Autowell sta? participate in adistrict-level sports meeting

Basketball competitionTable tennis competition

Badminton competitionCalligraphy club

Hiking

Flower arrangement

Baking

Good FaithGreater ProsperitySolid FoundationCharacteristic

governanceIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

Autowell OHS management system accreditation

PROTECTION OF EMPLOYEE HEALTH AND PRIVACY

We strive to build a healthy and safe work environmentfor employees. Following the management policy ofPhaving prevention as the main concern and com-bining prevention with remedying,Q we improved theoccupational health and safety (OHS) management sys-tems, implemented the system of responsibility for theprevention and control of occupational hazards, andtook various measures such as occupational health riskassessment, risk management and control, personalprotection, publicity, and training to ensure occupa-tional health and safety for employees.

Invite experts in occupational disease prevention and control to provide training on health manage-ment for employees and increase their awareness of occupational health.

Invite third-party organizations to conduct occupational health and safety assessments on a regularbasis to ensure production safety. Carry out technical transformations for special types of work or post involving occupational haz-ards so as to minimize the risk. Ensure that the purchased personal protective gears, equipment, and facilities comply with ap-plicable regulations, and are maintained and updated on a regular basis. Continuously improve operations involving toxic and hazardous substances, dust, and noise toreduce exposures to occupational diseases.

Occupational health andsafety

Precautionary measures for occupational diseases

 Carry out pre-job health checkups, regular on-the-job health checkups, health checkups whenleaving the post, as well as ad-hoc health checkups, and establish occupational health surveillancerecords. Periodically evaluate and update the occupational hazards, check the processes and productionequipment on a regular basis, promptly identify and evaluate the occupational hazards, and ensurethat employees have no occupational health restrictions or occupational diseases.

Education andtraining onoccupationaldiseases

Internal healthpractices

Periodic ex-ternal assess-ments

Reducing ex-posures in the

workplace

Good FaithGreater ProsperitySolid FoundationCharacteristic

governanceIndependent R&D

ATW Innovation

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

4544

We pay high attention to employees’mental health. In ?–?·, online and obine training programs on mental health were held to help employees learn to see from a psychological perspec-tive and e^ectively protect their mental health.

This course, which started on June ?, ?–?·, primarily targeted super-visors, managers, and executives who felt stressed. A total of ü peoplevoluntarily signed up for the course.

Emotion and Stress Management

Workplace Emotion and Stress Management

This course, which started on December ?, ?–?·, primarily targetedfrontline team leaders and R&D personnel who felt under pressure. Atotal of ?? attended the course.

Emphasis on mental health

Protection of employee privacyPrivacy protection is fundamental to mutual trust between a company and its employees. In accordance with pertinent lawsand regulations, Autowell has laid down stringent employee privacy protection systems, including the nondisclosure agree-ment, information protection system, and the data security management system.In terms of HR management, the Company ensures that employees’personal information and privacy are strictly managedaccording to laws and regulations. With regard to IT system construction, the Company adopts strict information securitymeasures to guarantee the security and con_dentiality of private information of the Company and employees. The Companyalso provides training on employee privacy protection for the entire sta^ to increase their awareness of privacy protectionand con_dentiality and capacity for privacy protection.Additionally, the Company establishes health records for employees working at posts that involve hazardous factors of occu-pational diseases, including their work experience, previous diseases, health check reports, and post-related information. Ev-ery employee has their exclusive medical record which is managed by dedicated personnel and may not be accessed by anyunauthorized persons.

Number of trainees

Number of trainees

Good FaithGreater ProsperitySolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green DevelopmentLow-carbonPractices

Appendices

PRIORITY TOSAFETYFOCUS ON QUALITYAt Autowell, product quality and production safety areconsidered the Pballast stoneQ of corporate development.In pursuing high-quality development, the Company takessolid measures to manage production safety, strictly controlproduct quality and project quality, strengthen customer servicemechanisms, and maintain its brand value with excellent productquality.

Production safety managementProduct quality managementImproving customer services

SDGsResponsibleconsumptionand production

Partnerships forthe Goals

Sessions of production safety training

Product pass rate

Daily production capacityReworking rate

Customer satisfaction

Our customer-oriented workshop boasted a continuous production capacity of over 35,000 pieces per day,ranking ?rst among production bases worldwide, and the reworking rate stood within 1.2%.

Testimonials, banners, and trophies received from customers

Items included in production safety training

Number of customers who received training

Items recti?ed

Total participants

Production safety

Product quality

Customer service

participants

%

%

%

78241

60+

45+

97.55

35,000+Less than1.2

95.4

Performance by the Numbers

Priority to SafetyFocus on QualitySolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

Through the Job Description, the System of Responsibility for Production Safety,and other systems, the Company speci_es the safety production responsibilities andwork norms of the general manager, department heads, team leaders, and frontlinepersonnel. A top-down management model extending to the departmental levelis formed, where trade unions and safety supervisors oversee safety productionmanagement, and 11 functional departments such as the Human ResourcesDepartment, the General Management Department, and the Product ManagementDepartment implement safety production management and strictly perform safetyproduction responsibilities.

Organizational structure of the Production Safety Committee

Trade unions

PRODUCTION SAFETY MANAGEMENT

Organizations responsible for productionsafety

Responsible Parties

Human ResourcesDepartmentGeneral ManagementDepartmentProduct ManagementDepartmentR&D centersManufacturing centersEngineering ServicesDepartmentSales DepartmentFinance DepartmentStrategic ProcurementDepartmentProcess and InformationDepartmentQuality AssuranceDepartment

The Company places great emphasis on emergency management of accidents in production. Inorder to improve the ability to deal with risks and prevent accidents, ensure the safety and healthof employees as well as people living in surrounding areas, and minimize the property losses,environmental damage, and social impact caused by production accidents and environmentalemergencies, the Company has developed the System of Responsibility for Production Safety, theRegulations on Emergency Handling, and the Internal Reporting System for Important Informationbased on its realities. A crisis response taskforce comprising the management, the GeneralManagement Department, manufacturing centers, and the Finance Department is responsible forpromptly handling major events related to safety, environmental protection, and product qualitythat may undermine the Company’s image and reputation.

According to China’s Law on Work Safety and production safety standards,the Company has formulated a series of production safety managementsystems, developed a system of safety standards, the classified riskmanagement system, and the risk identification and prevention system,and put up warning signs and posters on safety knowledge at workshopsand factories. Safety emergency drills are carried out on a regular basis toimprove production personnel’s ability to respond to emergencies. In 2023,the Company organized two emergency drills, which were attended bymore than 500 employees.

Emergency handling

Production safety education

Safetyemergency

drill

Safety supervisors

Safety emergencydrills

Total participants

500+

Priority to SafetyFocus on QualitySolid Foundation

Characteristic

governanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

EHS trainingProduction safety training

Logistics operation safety training

Performance by the numbersThree-level safety training systemEmergency reliefForklift operationManufacturing and logistics site safety

management (monthly)

Sessions of training for new hiresSessions of ad-hoc training for employeesSessions of training for manufacturing and logistics

departments

Hours of training for new hires

Sessions of training for forklift operators

Hours of training for forklift operatorsHours of ad-hoc training for employeesHours of training for manufacturing and logistics

departments6913518

13818532 hours hours hours hours

Priority to SafetyFocus on QualitySolid FoundationCharacteristic

governanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green DevelopmentLow-carbonPractices

Appendices

Autowell strictly complies with the Law on Product Quality and other laws andregulations, adheres to the quality management concept that PQuality is critical to theCompany, just as the water that bears the boat is the same that swallows it up.Q Allemployees follow the PThree NosQ principle of quality management. The Companyimplements the plan-do-check-act (PDCA) model for quality assurance, has establisheda full-process quality management mechanism from supply chain management toaftersales service, and sees to it that quality responsibility in each process is ful_lled.

We advanced the construction and improvement of quality management systemsand established and passed the ISO9001 quality management system certification;continued to efficiently apply information technology to business and productionactivities, established the informatization and industrialization integration managementsystem in accordance with the GB/T23001-2017 Integration of informatization andindustrialization management systems  Requirements and GB/T23006-2022 Integrationof informatization and industrialization management systems  Requirements forenhanced capability grading, and received the Integration of Informatization andIndustrialization Management System Certi_cate in July 2021.

A sound quality responsibility system and a three-level quality commitment mechanismare in place.

General Manager ofthe Company: Personwho takes primaryresponsibility for quality

Department manager:

Person who takesmain responsibility forquality

Second-linemanagement andfrontline employeesPersons directlyresponsible for qualityThe Company embeds quality management in the whole process from customerrequirements analysis, R&D, process, procurement, and manufacturing to the endof the product lifecyle. It has a complete set of quality assurance systems to fulfillresponsibility for product quality and guarantee product quality:

SupplierManagementProcess QualityControlTraceabilityManagement

ProcurementManagementDelivery QualityControlAftersalesService%l%l%l%l%l%l

MaterialsInspectionNonconformingProduct ManagementImprovement onCustomer Feedback

ISO9001 quality management system

certi?cateIntegration of Informatization andIndustrialization Management System

Certi?cate

PRODUCT QUALITY MANAGEMENT

Improving quality management systems

Three-level quality commitment mechanism

Level 1

Level 2

Level 3PThree NosQ principleof quality management

Nononconformingraw materials

No defectiveproducts

No deliveryof defectiveproducts

Priority to SafetyFocus on Quality

Solid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

GB/T 19001-2016 quality management system certi_cate

Autowell integrates quality control into thewhole process of production and exercisesstrict control over supply quality, processquality, delivery quality, and aftersales ser-vice quality so as to prevent product qualityissues.

In order to ensure the effectivenessof quality management systems, theCompany audits every process and linkrelated to product quality and whenproblems are identified, takes rectifyingand preventive measures immediately toput things right and ensure that the sameproblems don’t happen again.

Autowell always conforms to relevant standards for quality manage-ment systems. The Company and its subsidiaries (Autowell IntelligentEquipment, SCEC, ATW XuRi, and ATW Coshin) have passed the GB/T?ü––?-?–?? quality management system certi_cation.Our products meet international standards including those in Europeand the U.S., are certi_ed by international testing and certi_cation pro-viders agencies like T?V S?D and Intertek, and hold the European Con-formity (CE) and Eurasian Conformity (EAC) certi_cates. Additionally, ourproducts have been granted access to the North American market.

Product certi_cate

Multi-level quality audit mechanism

Level 1: Process monitoring

Level 2: Internal auditLevel 3: Certi_cation and licensing

Priority to SafetyFocus on QualitySolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

Quality management measures

During the reporting period, the Company carried out quality im-provement campaigns in response to potential risks in the use ofrelated equipment. For example, it launched a campaign to reducethe attrition of cell soldering stringers and a campaign aimed atstandardizing assembly quality in the weld region of semi-conductorbonders. It set up special project teams, used professional measur-ing devices, and applied problem analysis tools (MSA, ?W, brain-storming) to develop solutions and rectify potential risks. Based onthe actual use of customers, improvement measures were takenpromptly, forming a closed loop of quality improvement.

The Company hasestablished the ChiefQuality Officer system,giving the Chief QualityOfficer the power toveto matters that mayaffect product qualityand safety in the pro-cess of product realiza-tion.

In order to ensureproduct quality andsafety, the Companyhas an important postcalled “process in-spector” to overseekey processes that mayconcern product qual-ity and safety in theprocess of production.

In order to further improve quality manage-ment, the Company forms an “end-to-end”business process oriented towards businessperformance, analyzes the value chain oneach end, straightens out its managementprocess, business process, and support pro-cess, and gradually refines the institutionalframework, the hierarchy of business author-ity, and the implementation of the systemsolidification process. Moreover, it achieveschain quality across the entire value chain bya management system integrating processand quality system

The Company signstechnical agreementswith customers basedon the characteristicsof our products, whichcontain correspondingprovisions and commit-ments regarding the keytechnical performancemetrics, aftersales serviceand training, and qualityassurance.

The Company strength-ened its ability of processassurance and zero de-fect management, andcontinuously improvedproduct quality by orga-nizing quality improve-ment activities and col-lecting opinions, amongother e?orts.

In ?–?·, more than ?,?–– opinions were collected throughthe Company’s OA system in an e^ort to improve productquality and operational eaciency, helping reduce costsby RMB??.?? million.

Since ?–??, the Company has held manufac-turing and logistics skills competitions fortwo consecutive years to call for the pursuitof superior workmanship and further improveproduct quality.

Quality improvement campaignsCollecting opinionsVocational skill competitions

End-to-End quality control

Quality commitmentmechanism

Opinions collectedin 2023

Reduced costs5,700+RMB25.62 million

Implementing the ChiefQuality Oacer system

Setting up designatedpost for quality control

Quality managementcampaigns

Priority to SafetyFocus on QualitySolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

Reputational risk management

5s principle

High-quality customer service is key for companies to stand out in market competition, attract more customers, and prevent customer churn.

Responsible marketing managementIn order to meet compliance requirements in marketing campaigns, the Companystrictly complies with national and local laws and regulations, maintains honestyin operations, abides by industry norms, and consciously maintains the industrialoperation order. We uphold moral norms centered on honesty, and have developedthe bidding management system, the supplier management system, and integrityagreement to ensure compliance and e^ectiveness in the process of marketing.The Company has a legal affairs department and hires legal counsels to provideprofessional legal advice on its operations and help prevent marketing risks.Brand crisis responseThe company has put in place a brand crisis response mechanism and process inorder to deal with any brand crisis promptly and appropriately.

Autowell has stayed alert to brand crises, and no brand crisis hasoccurred since its inception.

IMPROVING CUSTOMER SERVICE

We follow the 5s principle for brand crisis response, that is, shoulder the matter,sincerity, speed, system, and standard.

Principle:

STANDARD

Shoulder the

matter

SINCERITY

SPEEDSYSTEM

Priority to SafetyFocus on Quality

Solid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green DevelopmentLow-carbonPractices

Appendices

Presales

◆ A special team is responsible for providing presales training and introducing the service process to customers.◆ Set up a project team and develop the project plan and objectives based on the project status.

Sales

◆ The project manager coordinates and dispatches personnel on the site, makes plans, and communicate on project progress and problems.◆ The project supervisor provides support throughout the process to facilitate the attainment of targets and goals.◆ Set commissioning standards and ensure that the standards are met through training, random inspections, tour of inspection, and other methods. Standardizingequipment commissioning helps locate operational issues quickly and improve the operational stability.◆ Keep track of the use of equipment by the customer in real time and update onsite project progress, core issues, resource requirements, and other information every weekthrough engineering, sales, and customer WeChat groups; improve customer experience, make use of third-party communication channels, and promptly rectify any deviationduring use; follow up with the customer from time to time (home visit, WeChat, telephone, online meeting, etc.) to stay up to date with the production status and actual needsof the customer.Aftersales

◆ Provide remote support within 24 hours.◆ For domestic urgent requirements, arrive at the scene within 24 hours, and for overseas urgent requirements, within 72 hours.◆ Pay follow-up visits on a regular basis to learn about the equipment running status, customer needs, and maintain customer relationships.◆ Publish posts on how to solve common issues through WeChat o?cial account to provide technical information support.

Protection of customer rights andinterestsUpholding the service concept of Phumbleness, carefulness, and professionalism,Qthe Company takes multiple measures such as day-to-day maintenance, key pointanalysis, and timely review to improve individual service items. Additionally, theCompany organizes internal and external training for speci_c product lines, weeklymeetings, sales case and experience sharing sessions, and the like to improve theprofessional competence and all-round ability of teams.We attach great importance to the management of customer information security, continuously hone our ability to maintain information con_dentiality and data security, strengthenthe full-process management of customer information, and take solid measures to prevent disclosure of customer information. In 2023, the Company introduced the ISO 27001 systemmanagement methodology, oacially started the construction of an information security system, and established or improved the con_dentiality system, access control system, networkmanagement system, and management regulations on the prevention of viruses and malware. A series of measures were taken to prevent leakage of customer information such as strictlycontrolling customer information access rights, customer _le encryption protection, and anti-virus software deployment.We pay particular attention to information security training and drills. During the reporting period, more than 3,000 employees participated in relevant training and examinations, greatlyincreasing their awareness of information security and sharpening their skills to protect information security.We sincerely respond to customer concerns and make continued efforts to improve the aftersales service system and enhance customer satisfaction and experience throughout theprocess before, during, and after sale.

Aftersales service system

Customer information security

Annual sales review meeting in 2023

Sales sharing session

Priority to SafetyFocus on QualitySolid FoundationCharacteristic

governanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

Customer complaint response mechanismIn order to better regulate the onsite customer service and problem feedback and handling processes and ensure that problems in each process are identified, reported, andaddressed as early as possible in a closed loop, Autowell has developed the Improvement on Customer Feedback, Aftersales Service Process, and other systems to promptly deal withproblems in onsite service, use, and other processes and further improve customer satisfaction.

Nonconforming product handling mechanism

According to the Company’s regulations on nonconforming product management, if any defectsare found in products delivered to customers, a taskforce will be established immediately, onsiteinspections will be carried out to evaluate and analyze the situation, and then, practical solutionswill be developed promptly to ensure that the problems are e^ectively solved.

During the reporting period, no incident violating the Company’squality commitments occurred during and after the productdelivery process.

In 2023, our customer satisfaction reached 95.4% according to our survey on key customers.

The project manager responds to thecomplaint immediately, identi?es the

level of severity, and escalates to a

higher level.

Step1Step2Step3

Step4Step5Step6Step7

Maintain e?ective communicationbetween the customer, theonsite team, and the back o?ce(engineering, sales, R&D).

The aftersales teamcommunicates with the person incharge on the customer side.

Determine the solutions andsend them to the customer on

the same day.Push forward the progress until

the issue is solved.Follow up with the customerand re?ect on ourselves.In response to the customercomplaint, the Company draws upimprovement and optimization plansat an opportune time and implements

them e?ectively.

Customer complaintresponse process

Priority to SafetyFocus on Quality

Solid Foundation

Characteristic

governanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

We continued to popularize product and service knowledge among customers, provide onsite or remote technical support for them, and hold training for their teams, so as to fullyempower customers.

In order to help customers better understand and use our products, we helda two-month Autowell Training Camp in 2023. The participating customersincluded Tongwei Group, JA Solar, LONGi, JinKo Solar, Chint, HY Solar, DASSolar, and DMEGC. During the training, the Company re?ned the training systemand content based on customer suggestions and did our best to meet theirimprovement plans and needs.

Some trainees from Tongwei Group hold their

training certi?cates

Trainees from JA Solar holdtheir training certi?cates

Training content: Knowledge about 050E/F/EH/FH/K, 027X, Automatic Bussing Machine, andother models, as well as their operation, installation, commissioning, and troubleshootingNumber of customers who received training: 550 participants from 60+ enterprises.Number of training certi?cates and outstanding trainee certi?cates: 550.

Empowering customers

Number of customers whoreceived training:

TotalNumber of training certi?cates andoutstanding trainee certi?cates:

participants60+550550

Customer training – Autowell Training Camp

Performance of customer training

Priority to SafetyFocus on QualitySolid FoundationCharacteristic

governanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

CONTRIBUTION TOSOCIETYCONSTANTDEDICATIONWhile pursuing our own high-quality development, we takeconcrete actions to fulfill our social responsibility and giveback to society. We actively engage in public interest activitiesand support the development of education, spreading positivevibes in society. In particular, we constantly put energy andfund into youth care and education as part of our e^orts to giveback to society. We encourage employees to volunteer and getinvolved in public interest activities, bringing more love intosociety.

Tax payment according to lawContribution to community developmentPublic interest activities and donationsVolunteer activities

SDGsNo povertyZero hunger

Good healthand well-being

Qualityeducation

Reducinginequality

Total amount of tax paid in 2023

Total donations made to support education development, public emergencyresponse, and people in need in the past three years

Donation to Wuxi Educational Development Foundation

Tax payment according to law

Donations

RMB 661 million

RMB 1 millionRMB9,699,900

Performance by the Numbers

Contribution toSocietyConstant Dedication

Solid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Close CooperationWin-win Outcomes

Green DevelopmentLow-carbonPractices

Appendices

102.52506.82360.65202320222021In April 2023, the Company donated RMB 1 million to Wuxi Educational Development Founda-tion in a bid to support the high-quality development of education.

Donation certi?cate

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HiPo Program: The 7 Habits of Highly E?ective People sharing reading session

RMB10,000RMB10,000RMB10,000

Tax payment according to law

COMMUNITY BUILDING ANDDEVELOPMENT

Public interest activities and donationsThe Company pays speci_ed types of taxes at the set tax rates withinthe time limit, contributing to national and local fiscal revenue andpromoting fairness and justice in taxation.

Autowell works closely with the community to train and advancetalent. The Company provides job opportunities for local people, whichhelps increase local employment, promote the development of thelocal economy, and enhance the sense of belonging of our employees,enabling them to witness the great changes in their community. Onthe Company’s part, this also serves the purpose of growing with thecommunity and employees.

Tax status in the past three years

RMB100 million

6.61

2.61

1.76

The company is actively involved in public interest activities, cares for theneeds of vulnerable groups, and works hard to help build a better world. Inthe past three years, we have donated a total of RMB9,699,900 to supporteducation development, public emergency response, and people in need.We work with loving people from all sectors of society to promote thedevelopment of social undertakings.

202320222021

Total amount of donationsRMB9,699,900

Contribution toSocietyConstant DedicationSolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Appendices

VOLUNTEER ACTIVITIESAs a responsible company, we encourage employees to volunteer and contribute to society.

“Walk side by side”

To commemorate the White Cane Safety Day, Autowell volunteers participated ina charity walk event with people who are blind or visually impaired, helping themexperience the beauty of the world.

Contribution toSocietyConstant DedicationSolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Close CooperationWin-win Outcomes

Green DevelopmentLow-carbonPractices

Appendices

CLOSECOOPERATIONWIN-WINOUTCOMESTo deliver high-quality products and services to ourcustomers, we must ensure that the products providedby our suppliers have stable quality. To this end, wecontinuously strengthen centralized management of thesupply chain system, promote businesses along the supplychain to do their due diligence, so as build a safe, green,high-quality, and responsible supply chain.

Sustainable supply chainSupport for industrial development

Responsibleconsumptionand production

Sustainablecities andcommunities

Partnershipsfor the Goals

Proportion of local purchasing (within JiangsuProvince)

Growth in pass rate of materials compared with 2022

Number of new standard parts suppliers

Number of domestic exhibitions we participated inNumber of overseas exhibitions we participated inNumber of professional forums we sponsored (speech)

Sustainable supply chain

Industrial development

%

%

582.34236

Performance by the Numbers

Close CooperationWin-win OutcomesSolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Green DevelopmentLow-carbonPractices

Appendices

6362

SUSTAINABLE SUPPLY CHAIN

Autowell insists on responsible procurement and implements the strategies of transparent procurement and local purchasing, and embeds the concept of sustainability into the wholeprocess of procurement. The Company has developed relevant systems on procurement, such as Supplier Management and Relationships and Supplier Development and Approval. Supplier development and selectionIn order to ensure the safety of raw materials and improve product quality, Autowell has established the principles of supplier development and laid down regulations on suppliers’basic qualifications, capital status, operating qualifications, scale of production, and technical strength. The Company signs the Non-Disclosure Agreement, Supplier QualityAgreement, and Supplier Integrity Agreement with all suppliers, and makes clear the requirements on supplier conduct and supplier selection. In addition, inspections must be carriedout on new suppliers to ensure that they meet procurement requirements.

Supplier management

Supplierdevelopment

principles

Types ofpotentialsuppliers

A supplier used by a competitor can become oursupplier in principle, but that must be clari?ed.

Any supplier recommended or operated by for-mer employees shall not be selected in princi-ple.The qualifications of a potential supplier whichacts as an agent must be veri?ed with the autho-rizing organization before it’s selected as a sup-plier.

Any business that was formed less than oneyear shall not be selected in principle.In principle, the company purchases partsand components for our equipment directlyfrom manufacturers.

Types ofbusinessesnot eligible

Close CooperationWin-win OutcomesSolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Green Development

Low-carbon

Practices

Appendices

      Classi_ed supplier management

According to the amount of procurement, the Company divides suppliers into three types, and implements classi_ed supplier management in terms of quality, costs, evaluation, etc.

De?nitionManagement strategy

Suppliers from whichthe amount of pro-curement accountsfor no more than ?–%of the total procure-ment and is greaterthan RMB· million inthe evaluation peri-od.

 Maintain supplierrelationships, empha-size quality and costs,implement centralizedpurchasing, carry outjoint R&D activities,and lower costs. All suppliers aresubject to perfor-mance evaluation.

Suppliers from whichthe amount of pro-curement accountsfor no more than ??%of the total procure-ment and is greaterthan RMB? million inthe evaluation peri-od.

 Emphasize quality,guarantee inventorysafety, implement cen-tralized purchasing, en-sure sufficient supply,and lower costs. Suppliers with anMRB NPL ratio of above–.?% during the perfor-mance evaluation peri-od shall be evaluated,while other suppliersnot.

Suppliers fromwhich the amountof procurement ac-counts for no morethan ?% of the totalprocurement in theevaluation period.

Suppliers from which theamount of procurement ac-counts for no more than ?% ofthe total procurement in theevaluation period. Emphasize costs, reduce thenumber of suppliers, imple-ment centralized purchasing,and reduce procurement man-agement costs. Suppliers with an MRB NPLratio of above –.?% during theperformance evaluation periodshall be evaluated, while othersuppliers not.

Type 1Type 1Type 2Type 2Type 3Type 3

Close CooperationWin-win OutcomesSolid FoundationCharacteristic

governanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Green Development

Low-carbon

Practices

Appendices

6564

Compared with standard parts suppliers, Autowell focuses on the information security management ability of machining equipment suppliers, and conducts an information securitymanagement review on them every half year.Supervisor: Supplier Quality Engineer (SQE)Supervising the improvement process:

Hold discussions and draw up continuousimprovement plans, which can be implemented

after being con_rmed by SQE.

Step1 Step2 Step3

SQE keeps records or visits the supplier toverify whether the improvements meet speci_c

requirements.

According to the improvement status, updatethe List of Quali_ed Suppliers so as to build aharmonious supply chain ecosystem.

        Supplier supervisionIn order to ensure that the procurement capacity meets the needs of its sustainable development, the Company conducts semi-annual performance evaluation on suppliers based on the PeriodicSupplier Performance Evaluation Form (Standard Parts/Processed Parts), classi_es suppliers into four levels (A, B, C, and D) according to the grading rules (B is the qualifying criterion), and adjuststhe cooperation models according to the evaluation results.

Standardparts suppliersupervision

LevelLevel ALevel B

Level C

Level D

A≥80

Give priority to thesupplier in new productdevelopment

Lower the level ofpriority in new productdevelopment

(1) Suspend new product development;

(2) Ask the supplier to make improvements

and discuss with the supplier on thesubsequent product quality managementplan and improvement plan. If the supplierfails to move to Level C, it will be dismissed asa quali?ed supplier.

(1) Suspend new product development;

(2) Ask the supplier to make improvements

and discuss with the supplier on thesubsequent product quality managementplan and improvement plan.

65≤B<8050≤B<65D<50Score

Cooperationmodel

Close CooperationWin-win OutcomesSolid Foundation

Characteristic

governanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Green Development

Low-carbon

Practices

Appendices

Regular communicationWhile improving our own management ability, the Companyregularly communicates with suppliers of main and auxiliary ma-terials through onsite meetings. The topics mainly cover analysisof actual use of products, analysis of subsequent use of products,promotion and e^ectiveness of new products, and overall prod-uct stability.During the reporting period, in order the Company held the an-nual supplier conference themed PA Better ?–? and a Winning?–??Q to help suppliers get a deeper understanding of our strat-egies and development plans. A total of ü· suppliers participatedin the conference, and the amount of procurement from theparticipating suppliers accounted for ??% of the Company’s  totalpurchases in the year.

The company insists on green procurement and ensures that the materials used, including packaging (such as materials, components, and equipment) meet the requirements of nationalenvironmental policies. The Company gives priority to suppliers with the ISO9001 quality management system certi_cation, the ISO140001 environmental management system certi_cation,and the ISO45001 occupational health and safety management system certi_cation, and pays constant attention to supplier performance in labor relations, employee rights protection,environmental health, emergency response, and other aspects of sustainable development.The Company takes forward-looking and flexible measures to ensure supply chain stability and efficiency and avoid supply chain disruptions. Meanwhile, amid the trend of domesticalternatives, the Company actively looks for high-quality domestic suppliers under the premise of ensuring quality and costs.

Develop inventory plans for bottle-neck materials and materials with along delivery period based on annualsales forecasts.

Implement multiple sourcing andreserve for suppliers of core materialsand few structures.

Regularly assess supplier capacity, ad-just purchasing strategies, and ensuresupplies are delivered on time.

Attention to supplier ESG performance

Supply chain stability

Number of new standard parts suppliersduring the reporting period

Management empowermentIn order to improve our supplier management and quality control capabilities tomeet the needs for sophisticated and key materials in our rapid development,we took _eld trips to industry-leading suppliers, learned about advanced experi-ence and summarized ? practical improvement measures, and provided themto other suppliers so they could choose to use according to their own reality. Topromote the improvement measures in batches, we selected ? key suppliers, su-pervised their implementation of the selected measures, conducted onsite evalu-ations on the implementation e^ects, and kept track of the implementation.This management empowerment event greatly improved the overall manage-ment ability and pass rate of suppliers. In particular, the pass rate of materialsrose by ?.·% over ?–??, meeting the set target.

Empowering suppliers

Autowell 2023 SupplierConferenceSuppliers present at our supplierconference

Number of key suppliers

Growth in passrate over 2022Percentage in total purchases

9314

2.34

%

%

Close CooperationWin-win OutcomesSolid FoundationCharacteristic

governanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Green Development

Low-carbon

Practices

Appendices

6766

Autowell is an active player in the industry. We participate in variousexhibitions, carry out project cooperation with other enterprises, and playa role in national key R&D programs. Exchanges and collaboration withindustry peers can spur innovation vitality, enabling us to work together toboost the whole industry.Autowell’s vision is PWherever there is a factory there is ATW’s intelligent manufacturing system.Q Going forward, Autowell will uphold its long-term mission  PBuild Smart Factory with NewTechnologies, Drive Global Intelligent Manufacturing.Q Autowell is a practitioner and a pioneer in the wave of intelligent manufacturing in the global new energy market. During the reportingperiod, we participated in a variety of exhibitions held in Indonesia, Türkiye, Germany, the United States, and India, continuously strengthened international exchanges and cooperation,improved our layout along the entire industry chain, and put energy into creating greater value for customers and accelerating the growth of the global new energy market.

SUPPORT FOR INDUSTRIAL DEVELOPMEN

International exchanges

Number of overseasexhibitions we participated in

Number of professional forumswe sponsored (speech)Number of domestic exhibitions weparticipated in during the reportingperiod

In June 2023, Intersolar Europe, the world’s leading exhibitionfor the solar industry was held in Trade Fair Center MesseMünchen, Germany, bringing together a cohort of well-knownsolar photovoltaic enterprises from around the world. At thisexhibition, Autowell presented its latest intelligent photovoltaic+ energy storage manufacturing solutions, drawing attentionfrom large audiences at home and abroad.

In April 2023, the annual International SolarEX Istanbul Fair tookplace, which is the largest and most influential solar energyand energy storage event in Türkiye and even the Middle East.As a reputed intelligent photovoltaic equipment manufacturer,Autowell came under the spotlight by showcasing a range ofintelligent photovoltaic devices and solutions. The delegationalso interacted with professionals from around the world andshared experience and views with one another to promotetechnological advances in the industry.

Autowell attends Intersolar Europe held in Munich, GermanyAutowell attends the International SolarEX Istanbul Fair in Türkiye

Involvement in industry eventsAt the International Photovoltaic Power Generation andSmart Energy Conference & Exhibition (SNEC 2023) inMay 2023, Autowell showed o^ its integrated solutions ofphotovoltaic intelligent manufacturing and had in-depthdiscussions and exchanges with visitors on productsand technologies, innovation and R&D, industrialdevelopment, and other topics.

In August 2023, the 2nd China International Energy StorageExpo hosted by China Leader Energy Storage Alliance (EESA)was held in Suzhou International Expo Center. Autowellpresented its ESS Cell Module/PACK Automatic AssemblyLine in the _eld of energy storage.

Autowell shows o? intelligent photovoltaic manufacturing technology at SNEC 2023Autowell attends the second EESA China International Energy Storage Expo

Close CooperationWin-win Outcomes

Solid Foundation

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ATW Innovation

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Green Development

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Practices

Appendices

GREENDEVELOPMENTLOW-CARBONPRACTICESIn response to the call for global climate action, Autowell holdssteadfast to the path of green development, persists in ful_llingthe responsibilities and obligations for eco-environmentalprotection, actively carries out environmental management,keeps improving its environmental management capabilities,and coordinates the efforts to reduce carbon emissions,cut pollution, go green, and achieve growth. It makes greatefforts to promote a green and low-carbon lifestyle and wayof production and achieve concerted progress of economicgrowth and eco-environmental protection.

Environment managementPollutant managementEnergy resource managementGreen operationsCarbon emission management

SDGsGood healthand well-being

Sustainablecities andcommunities

Climate actionClean waterand sanitation

Investment in environmental protection

? GHG emission intensity

Investment in energy-saving technologytransformation

Comprehensive energy consumption perRMB10,000 of output value

? Passed the green factory certi?cation audit and was certi?ed as a green factory in Jiangsu Province.? The Company meets the Type 3 standard set forth in the GB 12348-2008 Emission standard forindustrial enterprises noise at boundary.? Wafer Inspection System (018F) received the carbon footprint certi?cation.

Investment in environmental protection

GHG emissions reduction

Energy conservation management

Pollutant management

tCO

/RMB10,000 of revenue

tons of stand coal equivalentRMB73,600

0.012

RMB345,4000.0015

Performance by the Numbers

GreenDevelopmentLow-carbonPracticesSolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Appendices

To ensure the effective operation of its environmental and safety management system and continuously improveits environmental management system, the Company sets up the post of environmental and safety specialist to beresponsible for environmental protection and production safety during production and business operations.

In strict compliance with lawsand regulations such as theEnvironmental ProtectionLaw of the Peoples Republicof China, EnvironmentalImpact Assessment Law,the Water Law, and theLaw on the Prevention andControl of EnvironmentalPollution by Solid Wastes,the Company continuouslyimproves the construction ofenvironmental managementsystems based on actualneeds of businesses and day-to-day operations. It obtainedthe ISO14000 certification inApril 2023.

ENVIRONMENT MANAGEMENT

Environmental managementsystem

Autowell environmental and safety management system

In order to better regulate emergency response to environmental emergencies,the Company has developed the Contingency Plan for EnvironmentalEmergencies, conducted a systematic analysis of environmental risks andpotential environmental emergencies, devised targeted environmental riskprevention and control measures, established an internal early warning system,and put in place emergency response resources. In addition, the Companyorganizes emergency response training and drills every year, prepares drillreports, and takes other measures to strengthen its emergency response ability.

Environmental emergency management

The Company carried out an alcoholleakage emergency drill in February2023, which enhanced employees’safety awareness and tested theresponse and cooperation capabilitiesof staff at relevant departments duringemergencies.

Production safety inspection systemSafety management system for special-

purpose equipment and personnel

Management system for accidents

involving heavy casualties

OHS education system

Safety and health management systemfor construction projectsManagement system on occupational

disease preventionManagement system on laborprotection articlesSafety organization and personnelappointment and management system

Change management systemManagement system on theimplementation of rules and regulations

Onsite leadership systemEmergency relief management system

Fire safety management systemManagement system on the operationof environmental protection equipment

Dangerous operations approval systemFire safety management systemManagement system on tra?c safety

at factoryDust and virus control equipmentmanagement system“Five-Point” production safetymanagement systemGroup and post target performance

management system“Three Violations” management

systemWarning marks and safety

management systemConstruction and maintenance safety

management systemDocument and ?le

management systemManagement system onthe withdrawal and use ofproduction safety funds

Stakeholder safety management

systemHazardous chemicals management

systemProtective equipment management

systemManagement system for places with

?ammable or explosive articlesProduction safety responsibility

management systemManagement system on theimplementation of laws, regulations,

standards, and normsPerformance evaluation management

systemEquipment and facility inspection andmaintenance management system

Source of dangermanagement systemOperating safety management system

Classi?ed safety riskmanagement system

Rewards and punishments system

concerning safetySystem on the protection of female

workers and minorsProduction safety target management

systemEquipment operation card

management systemManagement system on chemicalproperty risk assessment and control

Equipment and facilitysafety management system

Hazardous chemicalsmanagement systemWork-related injury insurance

management systemProduction safety meeting system

Temporary wiring approval system

Alcohol leakage emergency drill

GreenDevelopmentLow-carbonPractices

Solid Foundation

Characteristic

governanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Appendices

The Company attaches great importance to environmental safety and protection, incorporatesthe concept of green development in its daily operations, continuously strengthens pollutantmanagement and the rational use of resources and energy, regularly organizes third-party agenciesto carry out testing at factories involving occupational-disease-inductive factors, and takes e^ectivemeasures to support the realization of the country’s Pcarbon peaking and carbon neutrality goals.QIn 2023, Autowell participated in and passed the voluntary cleaner production audit, passed the greenfactory certification audit, and was certified as a green factory in Jiangsu Province. The Companyfurther improved its green production technology to reduce the consumption of energy and materialsduring production and lower the generation and emission of pollutants, thus achieving botheconomic and environmental bene_ts. With its rapid development, the Company is constantly lookingfor better solutions for cleaner production and promoting green production and green lifestyles.The Company introduces the concept of ecological design (Reduce, Recycle, Reuse) to product design.In accordance with the requirements in GB/T 24256, it develops ecological designs for products takinginto account resource conservation and comprehensive use in the selection of raw materials, productenergy efficiency design, reduction or substitution of hazardous substances, cleaner productionprocess and technology, packaging and transportation, recourse recycling, hazardless treatment, andother aspects.

POLLUTANT MANAGEMENT

Cleaner production

2 Durability2 Maintainability2 Remanufacturability2 Reliability2 Reusability

The main types of waste gas generated at the Company are oil mistin machining workshops and oil smokes in the kitchen. Waste gastreatment devices are installed at the waste gas outlet to meetthe emission standards, and the discharged waste gas is tested bytesting agencies on a regular basis.No industrial wastewater is generated during production. Thereis only domestic sewage, which is pretreated by septic tanks 4meters deep at the factory and then discharged to the municipalpipe networks and centrally treated by Wuxi Xincheng WaterTreatment Plant.In order to minimize environmental impact, solid waste iscollected in a classified way and centrally handled before it istransferred to quali_ed departments for proper treatment.The company entrusts quali_ed agencies to handle the hazardouscutting ‘uid generated during production.

2 Modular    2 Intelligent

2 Disassembly ofparts with negativeenvironmental impact2  Recyclability

Discharge of three wastes

Autowell greendesign concept

Two strengths

Five featuresSustainability

Waste gas

Waste water

Solid waste

We pay high attention to the impact of noise during production on the neighboringenvironment and employees. The Company is located in an industrial park, with noresidential buildings and living quarters around it. We take multiple measures such asprotective equipment, work environment testing, and occupational health check tominimize the occupational health hazards of noise on employees.During the reporting period, the Company met the Type 3standard set forth in the GB 12348-2008 Emission standard forindustrial enterprises noise at boundary.

Noise management

Autowell passes green factory certi?cation audit and is certi?ed as a green factory in

Jiangsu Province

GreenDevelopmentLow-carbonPractices

Solid Foundation

Characteristic

governanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Appendices

Following the energy policy of Pcompliance with laws and regulations,energy saving and lower consumption, science-based development,and continuous improvement,Q Autowell continued to improve theenergy management system, promote the application of the onlineenergy consumption monitoring system and on the basis of analysisand use of energy consumption big data, advance refined energymanagement, adopt new energy management methods, and fully tapinto the energy saving potential, thus ensuring the effectiveness ofenergy management and use.

ENERGY RESOURCE MANAGEMENT

Energy management system

ISO 50001:2018 energymanagement system certi?cation

Energy monitoring and management system

The energy resources used during production and operations mainly include municipal water, purchased electricity, fuel, and natural gas.Energy resource use

ElectricityFuel

KwhKNm? tons

tonstons of stand coal equivalent

tons of stand coal equivalent

Natural gas

Total energy consumptionMunicipal water

Note: The direct energy mainly includes fuel and natural gas, and the indirect energy is purchased electricity. Comprehensive energy consumption is calculated based on the conversionfactors in the GB/T2589-2020 General rules for calculation of the comprehensive energy consumption.

Comprehensive energy consumption perRMB10,000 of output value

5,894,500

46.26

975.72

132.83

72,6970.0015

2023

GreenDevelopmentLow-carbonPractices

Solid Foundation

Characteristic

governanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Appendices

GREEN OPERATIONS

Green o?ceThe Company advocates green and low-carbon practices among employees in their daily life and at work, and has launched the green oace campaign. We encourage every employee to saveresources, avoid waste, help build a paperless oace, and reduce carbon footprint.

Set air conditioners at proper tem-perature according to the season,avoid using air conditioners whileleaving doors and windows open,and advocate using air conditionersone hour less.

Turn off air conditioners, lights,computers, printers, and otherequipment after work to reduce en-ergy consumption and avid waste.

Choose energy-saving lamps for out-door and indoor lighting, use naturallight as much as possible, reduce thenumber of lamps when there is suffi-cient lighting, and adjust the durationof lighting accord to the season.

Advocate paperless oace. Per capita paperconsumption: In ?–??, per capita paperconsumption at the Company was ??–.??pieces, and the _gure declined to ??.·ü in?–?·, down ?.??% year on year.

01020304

The Company pays high attention to promoting energy conservation and environmental protection. During the reporting period, we promptly shared and promoted the latest laws,regulations, and policies related to energy conservation and carbon emission reduction through training, putting up posters, and other methods. We organized employees to participatein environmental protection activities and promote new energy-saving products and technologies that with lower carbon emissions, increasing employees’awareness of energyconservation and environmental protection.

Publicity and training on environmental protection

In July 2023, to celebrate the National Energy-Saving Publicity Week, the Company produced and put up banners and posters advocating energy conservation andfurther strengthened work in this regard. Solid measures were taken to reduce the consumption of water, electricity, and other energy sources, advocate civilized,economical, green, and low-carbon consumption and lifestyles, and foster a good atmosphere for energy conservation among all employees.

2023 National Energy-Saving Publicity Week

GreenDevelopmentLow-carbonPracticesSolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Appendices

Upholding the green concept, we lead the electronics industry to actively perform social responsibility. In 2023, the Company set up a carbon veri_cation working group to managecarbon emissions according to the ISO 14064 standard. In May 2023, the Company released its 2022 greenhouse gas veri_cation report, setting an example for China’s special-purposeequipment manufacturing industry in carbon inventory and carbon intensity measurement.

In order to ensure the e^ectiveness of GHG emission veri_cation, accounting, and other work, the Company has established a carbon emission management architecture headed by theGeneral manager, where representatives of the management and the General Management Department take charge of the implementation, and other functional departments act as theimplementing departments. Steps are taken to build a well-regulated carbon emission management system, engage the entire sta^, and keep the Company on the course of clean, low-carbon, and high-quality development.

Determine the general direction of work on environmental protection.Review environmental management documents on a regular basis.......

Organize and lead the identi?cation ofGHG sources.Coordinate the development,implementation, and archiving ofenvironmental management systemsand GHG management files accordingto the IS014064 standard.......

Identify GHG emission sources at the department.Implement emission reduction projects and GHG emission control during production and in life.Provide data on the department’s GHG inventory and a list of GHG-related equipment.......

Be responsible for the identi?cation, summary, andevaluation of GHG emission sources; guide the followingwork:

GHG reviews by relevant departments.GHG emission data collection and aggregation, emissioncalculation report preparation and management.The preparation, review, revision, and distribution of GHGmanagement documents......

Working group on greenhouse gas veri?cation

CARBON EMISSION MANAGEMENT

Other functional departmentsSpeci?c implementationManagementrepresentatives

General ManagementDepartmentCoordinationGeneral ManagerLeader

GreenDevelopmentLow-carbonPractices

Solid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Appendices

Greenhouse gas emissions in 2023During the reporting period, we carried out verification of GHG emission sources within the boundaries according to law, so as to do a better job in GHG emission reduction andaccurately grasp and manage the situation of GHG emissions. According to the results, major GHG emission sources include purchased electricity, natural gas, gasoline, diesel oil, andsome refrigeration units. Among them, indirect emission (i.e., Scope 2) is the most important source of greenhouse gas emissions of the Company, which is mainly generated fromelectricity used during operations.

* Direct GHG emissions (Scope 1) and indirect emissions (Scope 2) are calculated according to 2006 IPCC Guidelines for National Greenhouse Gas Inventories and the GB/T2589-2020General rules for calculation of the comprehensive energy consumption, where power grid emission factors are calculated according to the Notice on Strengthening the Management ofGreenhouse Gas Emission Reporting of Enterprises in Power Generation Industry 2023–2025.

During the reporting period, we established the product lifecycle assessment (LCA) management system, introduced the product carbon footprint accountingmethod, analyzed the carbon footprint of Wafer Inspection System (018F), calculated GHG emissions in its lifecycle, and developed an LCA carbon footprintreport. The equipment obtained the green footprint evaluation certi?cate from the China Quality Certi?cation Center (CQC) in June 2023.According to the report, the system boundaries in the lifecycle of Wafer Inspection System include ?ve stages: raw materials, manufacturing, distribution, use,and waste disposal/recycling. Among them, functional units in the raw materials stage have the highest carbon emissions at 7,484.29 kg CO2e, accounting forover 90% of the total. In response, we identi?ed and evaluated the impact factors and developed improvement measures to go greener.

Wafer Inspection System holds carbon footprint certi?cation

Scope 1Scope 2

Scopes 1 and 2*GHG emissions intensity

583.53

7,708.460.012

7,124.93

2023

tCO

/RMB10,000 of revenue

tCO

e

tCO

e

tCO

e

GreenDevelopmentLow-carbonPracticesSolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Appendices

        Use of clean energy

In response to the country’s call for clean energy, the Companypushed forward the construction of solar photovoltaic powergeneration projects in the production base, providing clean energyinto for our green and low-carbon development. As of the end ofthe reporting period, the rooftop solar photovoltaic power stationin our Phase I plant on Xinhua Road covered an area of 17,000square meters, with an installed capacity of 1,599.4 kWp and anestimated annual generating capacity of 1,764.06 MWh. This canreduce carbon dioxide emissions by about 1,006 tons a year.The solar photovoltaic power generation system not only optimizesthe energy mix of the Company but is also conducive to insulationand sun shielding of buildings. Especially in the scotching summer,it can effectively reduce the indoor temperature and lessen theburden of air conditioners, further improving the energy eaciencyand environmental bene_ts.

Energy conservation and carbon reduction management        Energy-saving technology transformationThe Company continued to lower energy consumption by strengthening energy conservation management during manufacturing, optimizing the productionprocess, and reducing unit kinetic energy consumption of products. We further promoted the application of the online energy consumption monitoringsystem and on the basis of analysis and use of energy consumption big data, advanced re_ned energy management, adopted new energy managementmethods, and fully tapped into the energy saving potential, thus ensuring the e^ectiveness of energy management and use.

Total investment inenergy-saving technologytransformation

RMB 345,400

Energy-saving and efficient airpressurizers are used to improveenergy efficiency. The frequencyconversion technology for energysaving is applied to adjust the loadspeed and improve the powerefficiency of centrifuges, centrifugalpumps, and other equipment.

During the reporting period,the Company optimizedthe air conditioning system,which turned out effectivein saving energy. Electricityof 500,000 kWh was saved ayear.

The Company optimized the production process of automatedequipment to reduce energy consumption. The original methodof using compressed air to achieve automatic operations isreplaced with a vacuum regulation system to reduce energyconsumption. As to the production process of Automatic SolarModule, the previous method of oil heating is changed toelectromagnetic heating, reducing energy consumption by 50%.Energy-saving air pressurizer

Using more clean energy toimprove the energy mix

Optimizing the production process to reduceunit kinetic energy consumption of productsUsing energy-saving equipmentto improve energy e?ciency

Revamping the air conditioning systemto reduce energy consumption

In order to further optimize the energy mix,all street lamps at the factory were replacedwith solar-powered lamps, and a total of 51such lamps were installed. A number of smartcharging piles were installed at the factory tofacilitate charging on a staggered schedule andencourage employees to use electric vehicles,reducing the consumption of fossil fuels.

Reduction in powerconsumption

Area of rooftop solar PVpower station in XinhuaRoad Phase I plantInstalled capacityEstimated annual powergenerating capacity

Reduction in carbondioxide emissions

(Note: GHG accounting is carried out according to the Guidelines on the Methodsof Accounting and Reporting on Greenhouse Gas Emissions of Enterprises in OtherIndustry Segments (for Trial Implementation) issued by China’s National Developmentand Reform Commission, where the emission factors for power generation arecalculated based on the power grid carbon emission factors in the Notice onStrengthening the Management of Greenhouse Gas Emission Reporting of Enterprisesin Power Generation Industry 2023–2025 released by the Ministry of Ecology andEnvironment and the research report China Regional Power Grids Carbon DioxideEmission Factors (2023).

Kwh

sq.m

tons

KWP

MWh

50,0000

17,000

1,764.061,006

1,599.4

GreenDevelopmentLow-carbonPracticesSolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Appendices

AppendicesSolid FoundationCharacteristicgovernanceIndependent R&D

ATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution toSocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

TermsDescriptionPackaging & Testing sectors

Packaging & Testing sectors in the semiconductor industry is the ?nal process of integrated circuit manufacturing. They refer to the process in which the tested wafers are processed

into independent integrated circuit according to the product model and functional requirementsPV Cell Soldering StringerIt is a type of soldering equipment used to solder electronic components, circuit boards, cells, or other small metal parts.

Laser DicingIt refers to the process in which high energy laser beams are used to irradiate on the surface of the workpiece so the irradiated area is melted and vaporized for the purpose of dicingAnnealing FurnaceIt is a type of heat treatment device used to improve the physical and chemical properties of materialsMulti-axis Linkage

It refers to simultaneous processing on multiple coordinate axes (including rectilinear coordinates and rotational coordinates) on the same machine tool, and coordinated motion

under the control of a computer numerical control (CNC) systemMonocrystal Growth FurnaceIt is a device used for growing single crystals to manufacture monocrystal materialsPACK Automatic Assembly LineIt is an automatic assembly line where multiple batteries of cells are connected to form a battery pack with larger current capacityLaser Enhanced MetallizationIt refers to the process in which high energy laser beams are used to heat metal powder

Scope 1 EmissionsScope 1 emissions are direct greenhouse emissions that occur from sources that are controlled or owned by an organizationScope 2 EmissionsScope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling.Semiconductor PackagingIt refers to the process in which the tested wafers are processed into independent integrated circuits according to the product model and functional requirementsWire BondingIt is a semiconductor packaging technique used to connect the integrated circuits to the electrical appliancesIGBTInsulated Gate Bipolar TransistorTOPConThin Oxide Passivated ContactISO9001 quality management systemsA complete set of international standards developed by the ISO/Technical Committee

T?V

Technischer überwachungs-Verein (T?V) is a leading technical monitoring association based in Germany, which functions similar to the bureau of quality and technical supervision in

ChinaETLThe ETL Mark is Intertek’s most prominent certi?cation in North AmericaCE Certi?cateEuropean Conformity (CE) is a safety certi?cation mark that is regarded as a licensing or manufacturers to enter the European marketEAC Certi?cate

The Eurasian Conformity (EAC) certi?cate (or declaration of conformity) is a document used to prove that the exported goods meet the requirements of the Technical Regulations of

Customs Union (TRCU)MSAMeasurement System Analysis (MSA) refers to the process in which the method of statistical analysis is used to evaluate and improve the process of measuring systems5W5W stands for What, Why, Where, Who, and When. It is a fundamental framework for problem solving and decision makingMRB

A Material Review Board (MRB) is a group of people who review nonconforming material that has been referred to this board when all inspection workstations are unable to determine

whether it is nonconformingSQESupplier Quality EngineerISO14000A series of environmental management standards developed by the International Organization for Standardization (ISO)ISO45001The occupational health and safety management system is used to help organizations around the world protect the health and safety of their sta?ISO14064A series of international standards that provides the world’s best models for GHG information and data management, reporting, and validationLCALifecycle Assessment

Appendix 1. De?nitions

AppendicesSolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Topics StandardsDisclosure ItemsPages

Organization and its reporting practicesG2-1Organizational pro?leAbout ATWG2-2Entities included in organizational sustainability reportingNotes on the ReportG2-3Reporting period, reporting frequency, and contactsNotes on the ReportG2-4Information restatementNotes on the Report

Activities and workersG2-6Activities, value chains, and other business relationsAbout ATWG2-7Sta? MemberEmployment equity and diversity

GovernanceG2-9Governance structure and compositionOrganizationG2-12Supervisory role of the highest governing bodies in impact managementOperation of the three meetingsG2-15Con?ict of interestInformation disclosure managementG2-17Common knowledge of the highest governing bodiesEmployee training

Strategies, policies, and practicesG2-23Policy commitmentInternal control system; employment equity and diversityG2-24Integration policy commitmentEmployment equity and diversityG2-25Procedures to remedy negative impactsSmooth reporting channels; protection of customer rights and interestsG2-26Mechanisms for seeking advice and raising concernsSmooth reporting channels; protection of customer rights and interestsG2-27Compliance with laws and regulationsInformation disclosure managementG2-28Membership quali?cations of societiesSupport for industrial developmentG2-29Participation methods for stakeholdersCommunication of stakeholders

Substantive topicsG3-1Process of identifying substantive topicsIdenti?cation of material topicsG3-2List of substantive topicsIdenti?cation of material topics

Economic performanceG201-1Direct economic value generated and distributedPerformance summary; tax payment according to lawG201-3De?ned bene?t plan obligations and other retirement plansBene?ts system

Indirect economic impactsG203-1Infrastructure investments and services supportedContribution to community developmentG203-2Signi?cant indirect economic impactsInnovation achievements

Procurement practicesG204-1Proportion of expenditure on procurement from local suppliersSustainable supply chain

Anti-corruptionG205-2Communication and training of anti-corruption policies and proceduresAnti-corruption and anti-bribery; smooth reporting channels

Appendix 2. GRI Index

Appendices

Solid FoundationCharacteristicgovernanceIndependent R&DATW Innovation

Good FaithGreater Prosperity

Priority to SafetyFocus on Quality

Contribution to

SocietyConstant Dedication

Close CooperationWin-win Outcomes

Green Development

Low-carbon

Practices

Topics StandardsDisclosure ItemsPages

TaxationG207-3Stakeholder involvement and management of tax-related issuesStakeholder identi?cationG207-4Country reportPerformance summary

EnergyG302-2Energy consumption outside the organizationEnergy resource use

Water and e?uentsG303-1Interaction between organizations and water as a common resourceDischarge of three wastesG303-2Management of drainage related impactsDischarge of three wastes

EmissionG305-1Direct (Scope 1) GHG emissionsGreenhouse gas emissions in 2023G305-2Energy indirect (Scope 2) GHG emissionsGreenhouse gas emissions in 2023G305-4GHG emissions intensityGreenhouse gas emissions in 2023G305-5Reduction of GHG emissionsGreenhouse gas emissions in 2023

WasteG306-1Waste generation and signi?cant waste-related impactsDischarge of three wastesG306-2Management of waste related signi?cant impactsCleaner production

Environment assessment of suppliersG308-1New suppliers screened using the environmental assessment dimensionAttention to supplier ESG performance

EmploymentG401-1New employee hiring rate and employee turnover rateEmployment equity and diversityG401-2

Bene?ts provided to full-time employees that are not provided to temporary

or part-time employees

Bene?ts systemOccupational health and safetyG403-1Occupation health and safety management systemOccupational health and safetyG403-2Hazard identi?cation, risk assessment, and accident investigationOccupational health and safetyG403-3Occupational health serviceOccupational health and safety; employee privacy protectionG403-6Promoting worker healthOccupational health and safetyG403-7

Prevention and mitigation of occupational health and safety impacts directly

related to business relationships

Occupational health and safety; care for mental healthTraining and educationG404-1Average annual training hours per employeeEmployee trainingG404-2Employee skills upgrading programs and transition assistance programsEmployee training

Diversity and equal opportunityG405-1Diversity of governance bodies and employeesEmployment equity and diversity

Public policyG415-1Political contributionPublic interest activities and donations

Wuxi Autowell Technology Co. , Ltd.

688516


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