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
Innovative R&D systemInnovative R&D initiativesInnovation achievementsIntelligent development anddigital upgrade
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
The following glossary of terms is included for the reader’s convenience.
INFORMATION SOURCESThe qualitative and quantitative information in this Report is sourced from ATW’s publicinformation, internal documents and relevant statistical data.
REPORTING PERIODThe Report covers a period from 1 January 2023 to 31 December 2023.However, certain statements may be beyond the aforesaid period to ensurethe comparability of the Report.
SCOPE OF REPORTThis Report centers on Autowell. Unless otherwise speci_ed, the scope of thisReport is consistent with the scope of the Company’s annual report.
REPORT RELEASE
This Report is the first Environmental, Social and Governance (ESG) reportreleased by Wuxi Autowell Technology Co., Ltd.
PRINCIPLES FOR PREPARATION
This Report is prepared pursuant to the PRules Governing the Listing ofStocks on the STAR Market of the Shanghai Stock ExchangeQ, PGuidelinesNo. ? of the STAR Market of Shanghai Stock Exchange for Self-regulation ofListed Companies Standardized OperationQ, PGuidelines on CorporateSocial Responsibility Reporting for Chinese Enterprises (CASS-CSR ?.–)Q is-sued by the Research Center for Corporate Social Responsibility of ChineseAcademy of Social Sciences, GRI Standards (?–??), and the United Nations’Sustainable Development Goals (SDGs).
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
Wuxi Autowell Technology Co., Ltd. was founded in 2010 andrecognized as a national high-tech enterprise for the _rst time in 2015.It has been awarded as a Jiangsu Small Giant Enterprise of Science andTechnology, a Potential Unicorn Enterprise in South Jiangsu NationalInnovation Demonstration Zone, Wuxi Quasi-Unicorn Enterprise,among others. ATW is a renowned intelligent equipment manufacturerin the sectors of photovoltaics, lithium batteries and semiconductors.ATW has several subsidiaries, including ATW Intelligent, SCEC, ATWXuRi, ATW Coshin, and Leddo. Its expanding PV product portfolio nowserves the four major sectors of PV industry chain: Rod, Wafer, Cell andModule. The competitive ‘agship products MBB Cell Soldering Stringerand Wafer Inspection System are well recognized by the leadingenterprises in the PV industry and have gained a large market share.Following the development trends of new energy vehicles, energystorage and consumer electronics markets, the Company hasindependently developed Lithium-ion Battery Module, PACKProduction Line, and Lithium-ion Battery Appearance InspectionMachine, winning repeat orders from well-known enterprises inthe industry. In addition, we have received bulk orders for the self-developed product Wire Bonder that’s officially launched onto themarket in 2021.In the future, Autowell will be committed to providing customers withall-round and intelligent solutions for the industry chain, creatinggreater values for customers, and making greater contributions to theindustry.
Wherever there is a factory, thereis ATW’s intelligent manufacturingsystem.
Vision
Mission
Values
Build Smart Factory With NewTechnologies Drive Global IntelligentManufacturing.
Competitive Innovation & LeadingTechnology;Superior Quality;EfficientServices;Valuable Trust.
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
Covering four major sectors of the PV industry chain
Module & Pack & Container Automatic Assembly Line
Covering four major sectors of the packaging & testing in the semiconductor industry
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 solid governance structure constitutes a vital pillar for efficient operations. In 2023, starting from the preparation of ESG report, ATW set up an ESGworking group and uni_ed the understanding of EGS philosophy between employees and the Company through diversi_ed means, including publicity ofESG concepts, identi_cation of material ESG topics, gathering of ESG information, and interviews with experts.
? 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
ATW values the opinions of all stakeholders and accurately identi_es stakeholders among shareholders, investors, employees, customers, suppliers, partners, government and regulatoryagencies, media, and communities. The Company has established an effective communication mechanism to communicate with stakeholders on a regular basis through variouschannels, including websites, media platforms, meetings, reports, and activities, in a bid to fully understand and respond to the concerns of stakeholders.
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
To better identify the material ESG topics related to the Company’s operations, we conducted surveys, identi_cation, evaluation and screening of material topics, and collected opinionsfrom internal and external stakeholders through questionnaires. In addition, we constructed the matrix of material topics for analysis based on the Pthe degree of importance to theCompany’s sustainable developmentQ and Pdegree of importance recognized by stakeholdersQ, so as to evaluate the ranking of topics.
Identify the sustainability-related material topicsin the Company’s industry and establish a library ofsuch topics with reference to the relevant evaluationfactors of ESG ratings in the capital market, such asMSCI, S&P DJSI, CDP, Morningstar, Wind, and Sino-Se-curities Index, in combination with GRI standards,UN SDGs, SASB Standards, and other internationalstandards and goals related to sustainability man-agement, as well as the material topics identi_ed bycompanies in the same industry.
PROCESS TO IDENTIFY MATERIAL TOPICS
Conduct stakeholder interviews to collect feedbackand suggestions from various stakeholders on theCompany’s sustainability practices and strategies forfuture sustainability.Prepare an online survey questionnaire for theevaluation of material ESG topics and invite variousstakeholders to rate the importance of the corre-sponding ESG topics.
Based on the results of the above questionnaireand the Company’s development situation, evalu-ate the topics from perspectives of Pimportance tostakeholdersQ and Pimportance to ATW’s devel-opmentQ, rate and rank the topics by the degree ofimportance, and produce a matrix.
IDENTIFICATION OF MATERIAL TOPICS
Identifytopics toform a libraryof topics
Stakeholdercommunicationand survey
Evaluationof materialtopics
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
Importance to stakeholders
High
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
Important | Highly 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
General
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
Importance to ATW development
1110
Message from ATW Notes on the ReportAbout ATWResponsible Management
INDEPENDENT R&DATW INNOVATIONUpholding the philosophy of innovation-driven development,ATW has pursued self-development and contributed to nationaldevelopment based on sci-tech innovation. To this end, theCompany has proactively brought in advanced technologiesand high-caliber talents at home and abroad, deeply engagedin collaboration with universities and research institutes valuedthe protection of intellectual property rights, and constantlystrengthened its R&D strength and innovation capabilities.Building on the continuously improving R&D system, wehave further upgraded our product advantages, continuouslyexpanded R&D areas, enhanced technological applications inproducts, and created greater value for customers.
Innovative R&D systemInnovative R&D InitiativesInnovation achievementsIntelligent development and digital upgrade
SDGs
Sustainableconsumption andproduction
Industry,innovation andinfrastructure
R&D investmentR&D investment
Innovation achievements
Intelligent development
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
Intelligent development delivers the _rst-pass yield above
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
In the practice of innovation projects, we have established an innovation managementmechanism featuring Pone focus and five transformationsQ based on product lines andpillared by IT.
Productplanning
Customization
Independent
R&D
Productoptimization
Projectmanagement
TechnologyR&D
R&D model
Platformdevelopment
Sales contract
Corporate strategy
Technologicaldevelopment
Product R&D
One-Focus and Five-Transformations
ManagementMechanismOriented toward technological innovation and customer demand, the Companyhas continued to increase investment in scienti_c research to ensure its sustainedcompetitiveness. We established the three-pronged approach for productdevelopment, ensuring Pthe sales of one generation of product to be followedby the R&D and reserve for the next generation of productQ. By comprehensivelyevaluating the three key areas of sales, products and R&D, we hold regular meetingsto gain an in-depth understanding of the main trends in the market and futuredevelopment trends of emerging technologies. Based on customer needs, we haveconstantly adjusted and optimized product routes to ensure that products arealways aligned with the market so as to achieve sustainable development.
Sales GenerationR&D GenerationReserve Generation
One-Focus and Five-Transformations Management Mechanism
Project Approval andManagement Process;Project Reward System;Performance Appraisal System;Reward System for Rational
Suggestions
Innovative R&D system
Innovative R&D model
InnovativeR&Dconcepts
Innovationmanagement
mechanism
Innovationsystemguarantee
Focus on independent innovation
Adhering to high-end product positioning;Ecological quality management;Integrating upstream and downstream qualitymanagement, comprehensive corporatemanagement;Panoramic information platform (sap);Strategic operation and management
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
Three major R&D management bodiesThe Company has set up the Project Management Committee, Standardization Management Committee, andExperimental Center Management Committee to coordinate and make decisions on major technological andmanagement innovation projects.Twelve technological innovation labs
ATW has vigorously explored to grow into a global supplier of core intelligent equipment for the emerging industries andtransformation of traditional industries based on the needs and technical characteristics of the three major industriesof PV, semiconductors, and lithium batteries, in combination with the application of comprehensive technical meansin mechanics, electrics, electronics, optics, machine vision, robotics, and computer. We have established 12 majorlaboratories centering on PV, semiconductors, and lithium batteries, fully equipped with advanced testing equipment,including non-destructive dicing saw, nanosecond infrared lasers, Beckhoff systems, area-array cameras, high-temperature heating test platforms, small automatic solar module laminators, and battery internal resistance tester, in abid to safeguard technological innovation.
LaserProcessingTechnologyLabGT Lab
PV SiliconWaferTechnologyLab
PV CellTechnologyLab
PV ModuleTechnologyLab
R&D Innovation Center (12 major laboratories)
Semiconductor
TechnologyLab
LithiumBatteryTechnology
LabMachine VisionTechnology Lab
MAT Lab
AI Lab
CAE LabSolar Cell Lab
Innovative R&D system
Three major innovative industrializationpractice bases
With the focus on the R&D of PV, lithium batteries, andsemiconductor equipment and the industrialization ofkey processes, and with a view to attracting externalresources for coordinated development, the Companyhas successively established the Jiangsu ProvincialEngineering Technology Research Center, the JiangsuProvincial Enterprise Technology Center, and the JiangsuProvincial Postdoctoral Innovation Practice Base, in a bidto jointly promote the Company to develop new productsand technologies that align with market demands and theCompany’s development strategy to ensure the Company’scompetitive edge in the industry.
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
Technical reserves
ATW’s innovative thinking has been embedded into the products throughout the lifecycle. Building on years of continuous R&D investment and technology accumulation, the Companyhas developed an innovative technology reserve system, comprising four core supporting technologies (4M technology) and eight core application technologies. These technologieshave been applied to multiple core products of the Company’s main business, forming the Company’s core product system at the PV silicon wafer end, cell end, and module end.
Innovative technology reserves and products under development
Breaking the monopoly of foreign technologies: semiconductor wire bonding technologyIn 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
Products under development
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
To promote sustained product innovation, the Company has continued to optimize its talenttraining system and cultivate talents with innovative thinking and professional skills. Weinsist on building a highly educated and high-caliber R&D team. As of the end of 2023, theCompany has a total of 875 R&D personnel, up by 23.41% year on year, including 170 witha postgraduate degree or above. They have injected continuous power for the Company’sscienti_c research and innovation and facilitated the Company’s sustainable development.
Cultivation of innovative talents
No. of R&D personnel year-on-year growth
No. of R&D personnel with a postgraduate degree or above
The Company has established a mature innovation incentive system to stimulatethe enthusiasm of sci-tech personnel, unlock their potential for scientific research,facilitate the commercialization of sci-tech achievements, and improve the Company’soverall technical capacity, management capacity and market competitiveness.
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
Industry-university-research collaboration
ATW Coshin signed a contract with TaixinMicroelectronics to jointly supportintelligent manufacturing
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 achievementsThe Company has stayed current on the technological development in the PV industry chain, lithium battery industry chain, and semiconductor industry chain, while paying close attentionto new processes and new technologies in the downstream application industries.Committed to innovation-driven sustainable development, ATW attaches great importance to IPR protection in accordance with relevant laws and regulations such as the Patent Law ofthe People’s Republic of China. The Company received the national IPR management system certi_cation for the _rst time in 2016, and it has remained valid ever since. We now have 11professional intellectual property engineers, 9 of whom are certi_ed patent agents and 5 of whom have passed Jiangsu Province Intellectual Property Engineer Training Program.The Company has clari_ed its IPR policies and goals, established an IPR database, and provided systematic management and _nancial support to ensure e^ective legal protection of scienti_cresearch results. In addition, a patent planning & decision-making mechanism and an early warning & emergency response mechanism have been established to further implement IPRprotection.To create a favorable environment for technological innovation, ATW has introduced the PIPR Reward SystemQ to reward duty-related inventions, motivate employees to actively engage intechnological innovation, and promote continuous progress in technological innovation.
IPR Protection
New addition
TotalTotalOthersOthersSoftwarecopyright
SoftwarecopyrightDesignpatent
DesignpatentInventionpatent
InventionpatentUtilitypatent
Utilitypatent
Filed patents Filed patentsLicensed patents Licensed patents
257271
26313024
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
As an industry leader in technological innovation, ATW has made remarkable achievements in the industrialization of innovation achievements. It has successfully transformed a number ofscienti_c research results into competitive products in the market, which helped the industry reduce costs and increase eaciency and promoted technological upgrade. Its R&D team alsoundertook the PJiangsu Province Sci-Tech Achievements Commercialization ProjectQ and the PJiangsu Province High-end Equipment R&D Forging-ahead ProjectQ, and participated intwo sci-tech R&D projects, including the PNational Science and Technology Planning ProjectQ.
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
Photovoltaic MBB Cell Soldering Stringer completelyreplaced imported equipment of the kind
SCEC low-oxygen monocrystal growth furnace SC-1600-LO2
The wafer inspection system usher in the era of ultra-high-speed wafer inspection
LEM equipment raises eaciency signi_cantly by up to 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
During the reporting period, ATW actively advanced the overall strategic goals (visualization, digitization, and intelligence) of Psmart manufacturingQ factories with the help of digitaland intelligent technologies. Based on interactive innovation of digitalization, technologies, processes, and organization, we have upgraded process techniques and optimized workprocesses. Meanwhile, we have brought together the new forces for manufacturing upgrades and integrated the most cutting-edge technologies into smart manufacturing solutions, witha view to delivering more eacient production line and creating greater value for our customers, contributing to industry eaciency improvements, and jointly building a low-carbon, greenand sustainable future.
In response to the warehousing pressure and decentralized management amid growing business, we have integrated some of the leased factory resources and applied the WMS system forreal-time material collection, shelving, sorting, and other functions to ensure accurate and timely out-put and in-put of the warehouse, which increased the logistics eaciency.
Intelligent logistics center
Achievementsin promoting
intelligentlogistics center
INTELLIGENT DEVELOPMENT AND DIGITAL UPGRADE
Integrate resources for centralized allocation to improveeaciency and reduce fault tolerance.
Uni_ed allocation, eacient distribution plus GPS positioning.
Eliminate quality hazards caused by storage environmentand manage storage of materials in the _rst-in, _rst-outprinciple.
Integrate factory sites and ensure standard and tidy surroundingenvironment.
Optimize management
Logistics and transportation
Improve quality
Improve 5S management
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
We piloted the phased implementation of intelligence (mechanizedautomaticIT-basedintelligent development) at XuRi. During the phase of automation,we made progress in 18 automation projects in 2023, including 9 sets of self-developed equipment and 9 sets of imported equipment, in a bid to improvepersonnel eaciency and optimize work processes.As of the end of 2023, a total of 9 projects had been implemented, including 5sets of self-developed equipment and 4 sets of imported equipment, with 2 itemsawaiting acceptance in the near future.Thanks to the intelligence, the first-pass yield of products exceeded97.55%. (Note: overall pass rate). In the future, the Company will continueto promote the implementation of intelligent supply to elevate overalleaciency.
XuRi’s double-speed chain has been initially put into use
Process intelligence
Digital upgradeDuring the reporting period, the Company opened a new chapter in digital transformationand upgrade. With SAP at the core, the Company simultaneously launched and optimizedfive IT systems, namely OA, SRM & MCS, WMS, HRM, and E-learning systems, to achieveseamless transmission of master data and business data.In addition, to provide strong data support for operational management and decision-making, the Company integrated the above-mentioned IT system data through the BIsystem and generated data analysis reports (including trend charts, ring comparisoncharts, etc.), enabling relevant personnel to view the data results more intuitively andimprove the eaciency of data analysis. Meanwhile, the Company has introduced the PSAPOperation Health CheckQ and other regulations on data quality management, in a bid tomonitor the data situation in a timely manner.
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
GOVERNANCECommitted to compliant operation with integrity, ATWhas continued to improve the corporate governancestructure, optimize internal management, perfect therisk management and control mechanisms, maximizeshareholder interests and corporate value, and creategreat economic and social bene_ts.
SDGs
Governance structureOperation of the three meetingsProtection of shareholders’rights and interestsInternal control and risk managementAnti-corruption and anti-briberyParty building
Peace, justiceand stronginstitutions
%
%
448,184,300
35.69
Shareholders’meetings in 2023Meetings of Board of DirectorsMeetings of Supervisory BoardPass rate of reviewed matters
Annual number of investors receivedCredit rating
The amount of cash distribution in 2023 is CNY
Percentage in annual net pro_t
Operation of the three meetings
Protection of investors’rightsand interests
Information disclosureReturn to shareholders
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
During the reporting period, the Company has constantlyimproved the corporate governance system and structure instrict accordance with the Company Law, Securities Law, Codeof Corporate Governance of Listed Companies, Rules Governingthe Listing of Stocks on the STAR Market of the Shanghai StockExchange, and other regulatory documents on the governanceof listed companies issued by the China Securities RegulatoryCommission.
The Company has convened shareholders’
meetings in strictaccordance with the Articles of Association, Rules of Procedure forthe General Meeting of Shareholders, and other relevant laws andregulations. Both on-site and online voting was implemented toensure that all shareholders, especially small and medium-sizedshareholders, can fully exercise their voting rights. The Company’scontrolling shareholders and actual controllers earnestlyperformed their duty of good faith, with no case of harming therights and interests of the Company and other shareholders.During the reporting period, the Company held 5 general meetingsof shareholders and reviewed a total of 22 proposals.
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
The Company has convened the meetings of Board of Directors in line with the requirements of the Articles of Association, Rules of Procedure for the Meetings of Board of Directors, andother relevant laws and regulations. The Company’s directors have actively attended the meetings of Board of Directors and special committees and shareholders’
meetings to masterrelevant laws and regulations, understand their rights, obligations and responsibilities as directors, and safeguard the legitimate rights and interests of all shareholders. Meanwhile, theAudit Committee, Strategy and ESG Committee, Nomination Committee, and Remuneration and Appraisal Committee under the Board of Directors have ful_lled their responsibilities inline with the requirements of the Working Rules for the Audit Committee, the Working Rules for the Strategy and ESG Committee, the Working Rules for the Nomination Committee, andthe Working Rules for the Remuneration and Appraisal Committee. During the reporting period, the Company convened a total of 23 meetings of Board of Directors that reviewed 82proposals. The Board of Directors comprises 9 directors, including 3 independent directors and 2 female directors.
The Board of Supervisors, comprising 3 supervisors, earnestly performs its duties in accordance with the Articles of Association, Rules of Procedure for the Board of Supervisors, andother relevant laws and regulations. The Board of Supervisors supervises the Company’s _nance, major asset restructuring, related transactions, and compliant performance of dutiesby the directors and executives, in a bid to safeguard the legitimate rights and interests of the Company and shareholders.The Company convened 22 meetings of the Board of Supervisors in 2023 that reviewed 71 proposals.
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
In the principles of compliance, equality, initiative, and honesty and integrity as stipulated in the PGuidelinesfor the Investor Relations Management of Listed CompaniesQ, we have formulated the PInvestor RelationsManagement SystemQ to strengthen the Company’s communication with investors and potential investors,e^ectively protect the legitimate rights and interests of investors, especially the broad public, and establish along-term, stable and harmonious relationship between the Company and investors.During the reporting period, we have actively communicated with investors on statutory information fordisclosure, corporate development strategy, operation and management information, and corporate culturedevelopment. Meanwhile, we took the initiative to make public more of the Company’s environmental, socialand governance information, so that the investors could know more about Autowell from multiple perspectivesand dimensions.
In strict compliance with the Company Law, the Securities Law, theMeasures for the Administration of Information Disclosure by ListedCompanies, Rules Governing the Listing of Stocks on the STAR Marketof the Shanghai Stock Exchange, Articles of Association, and otherrelevant regulations, Autowell has formulated internal control systems,such as the PManagement System for Information DisclosureQ and thePManagement System for Suspension and Exemption of InformationDisclosureQ, stressing the quality and standardized procedures forinformation disclosure to ensure the truthful, accurate, complete, timelyand fair disclosure of major information. Meanwhile, we aim to ensurethat all shareholders have fair access to information, all stakeholderscould promptly understand the Company’s operation and progress ofmajor events, and the legitimate rights and interests of investors areprotected.Company websiteTelephone and emailconsultationSSE Info E-platformShareholders’meetingPerformance brie_ngs, analysts’meetings,on-site visits, road showsMedia interviews, press conferences
Investor relations management
O?ine communication
2023
Onlinecommunication
None
Information disclosure management
174236
ANo. of investorsreceived
E-platforminteractions
No. of performancebrie?ngs
No. of Disclosure Notice
Disclosure Rating
Penalties relating to information disclosureNo. of phone calls
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
While focusing on our own development, we attach great importance to shareholder returns. Since the Company’s IPO, we have formulated a cash dividend plan in strict accordancewith the Company’s Articles of Association, enabling shareholders to bene_t from the CompanyOs development and promoting the rational development of capital market.
202120222023
202120222023
Share of cash distributions in the yearly pro_ts over
the past three years
Amount of cash distribution over the last three years
Sustained shareholder returns
In the principle of Pintegrity and honestyQ, the Company has formulated the PRules on the Meetings of Convertible Corporate Bond HoldersQ and highly values the protectionof creditors’legitimate rights and interests. In 2023, apart from raising funds from commercial banks, the Company publicly issued convertible corporate bonds worthy of CNY 114million to unspeci_ed entities, in a bid to further improve the corporate R&D capabilities, enrich product lines, optimize product portfolio, upgrade capital structure, enhance riskresistance, and enhance operational stability and sustainability.As of 31 December 2023, the investments in relevant projects are making progress as planned. According to the CSCI Pengyuan Credit Rating Report, the Company was rated at AA- forstrictly observing _nancial credit policies and disciplines and promptly ful_lling responsibilities and obligations of a debtor.
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 MANAGEMENTAutowell regards internal control and risk management as an important part of the Company’s sustainable development. During the reporting period, we have further improved the Company’sproduction and operation compliance systems, formulated the PInternal Audit SystemQ and other system documents, and standardized the compliance management process.
In accordance with the requirements of relevant laws and regulations, Autowell has put in place a sound internal control system and the essential internal supervision mechanisms at thecorporate level and for all processes. We have actively carried out risk control, authorization and approval control, the control of incompatible duty separation, and _nancial budget control, aswell as regular self-evaluation of internal control.During the reporting period, the Company’s internal control mechanisms functioned e^ectively, with no major or material defects in _nancial or non-_nancial internal control, providingrational guarantee for the compliance of corporate operations, asset safety, as well as the true and complete disclosure of _nancial reports and related information.
Risk management goals Protect corporate assets Improve decision-making capacity Promote business continuity Ensure compliance with laws and regulations Building on a comprehensiverisk management organiza-tional system, the Companyhas clari_ed the positioningand responsibilities of eachfunctional department, theBoard Secretary’s Office,the Risk Control and AuditDepartment, and otherdepartments in the riskmanagement system to safe-guard the Pthree lines ofdefenseQ for risk manage-ment.
As the first line of defense for risk management, each functionaldepartment should start from combing through their respective businessprocesses, evaluate business risks under the guidance of the RiskManagement Department, and rank the risks by the degree of importance.As the second line of defense for risk management, the Board Secretary’sOffice follows the established risk response strategies and managementmeasures to conduct inspections and reviews of the risk managementsituation and response capabilities, evaluate the effectiveness of riskmanagement of major responsible departments, provide professionalguidance, and follow up on the progress of recti_cations.As the third line of defense for risk management, the Risk Control and Audit Departmentsupervises, evaluates and issues reports on the risk management in line with relevantregulations and the e^ectiveness of the risk management by functional departments, withreference to the economic responsibility audits, internal control audits or special audits.
Risk warning measuresTo scientifically and accurately identify, evaluateand predict the Company’s major compliance risks,we conduct in-depth review and evaluation ofcompliance risks in various business sections, closelytrack the updates of domestic and overseas legal andcompliance policies, and form a major risk databaseand early warning indicators. We have conducteddemonstrations on quantitative indicators,qualitative indicators, and early warning thresholdsfor risks in market, finance, strategy, operations,legal and other modules. We have strengthenedcompliance governance in key areas, done a good jobin early warning and response to compliance risks,and speci_ed responsibilities of various departmentsfor risks management.
Three lines of defense
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
The Company has consistently abided by national laws, regulations and rules on combating corruption and upholding integrity, standardized the business operations and employees’conducts, reinforced integrity-related risk prevention and control, and carried out anti-corruption activities regularly, thereby creating a favorable environment for corporatedevelopment.
The Company upholds business ethics, strictlyobserves laws and regulations, including the PLawfor Countering Unfair CompetitionQ and the PInterimProvisions on the Prohibition of CommercialBriberyQ, and adopts a zero-tolerance policy againstcommercial bribery in all forms.In 2023, the Company successively unveiled thePAnti-Fraud and Reporting Management SystemQ,PConflicts of Interest Management SystemQ,PRegulations on Reporting and Handing Over theGifts and Cash GiftsQ, and PAutowell Red Linesfor Business IntegrityQ, laying the institutionalfoundation for combating corruption and upholdingintegrity.
Autowell advocates honesty, trustworthiness, integrity, and self-discipline amongemployees, while making e^orts to develop a culture of integrity and a clean and uprightcorporate environment.
The Company regularly carries out publicity activities, training sessions, and warningeducation among all employees to combat corruption, in addition to a variety of integrityeducation activities.
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.
We encouraged our employees and related external parties to report the fraud or relevantcases of employees via the above reporting channels. We have set up reporting channels,including email, corporate website, official WeChat account, and mailing. Meanwhile,we have prioritized the confidentiality of reporting information, combined with relevantsystems to specify measures to protect the whistleblowers and strictly forbid retaliation.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
Autowell is committed to strengthening the Party’s leadership in promoting and improving corporate governance. The Company’s Party branches have given full play to their central and leadingrole in political a^airs towards the goal of Pstandardizing Party building and enhancing the capabilities of Party organizationQ. Meanwhile, we have earnestly complied with the superior body’srequirements on Party building, stepped up innovation, further promoted the scienti_c, standardized and institutionalized development of the Party branches, thereby giving better play to thecritical role of Party organizations and the vanguard and exemplary role of Party members.
The corporate Party branch was established in 2016 and elevated to a Partycommittee in 2017. We have been committed to cultivating high-caliber talentsfrom among employees to be Party members and promoting them into leaders,while passing on the Party-building ideas to all sta^.The Party committee currently comprises 4 Party branches (the 1st branch mainlyconsists of R&D personnel, the 2nd branch of engineering service personnel,the 3rd branch of functional personnel, and the 4th branch of manufacturingpersonnel) and 8 Party groups, with a total of 139 Party members.
Party members have played a pioneering and exemplary role, inspired positivity,and contributed to an enterprising working environment in their posts acrossvarious departments. During the reporting period, we have convened 6 Partymember meetings, 13 Party branch committee meetings, and 12 Party groupmeetings.
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
Party members
①Party group
②Party group
③ Party group
④Party GroupParty GroupParty GroupParty GroupParty Group
⑤⑥⑦⑧
Integration of Party building with corporate business
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
In 2023, under the leadership of the Company’s Party Committee, all Party branches have thoroughly studied and implemented the Xi Jinping Thought on Socialism with Chinese Characteristics fora New Era and the guiding spirit of the 20th CPC National Congress, in combination with in-depth themed education. Meanwhile, we have made solid progress in the activities of PYear of Capacityand Conduct ImprovementQ and PStandardized Party Branch BuildingQ and carried out innovative activities like Pbrand creationQ and Ppaired Party buildingQ, in a bid to strengthen the senseof responsibility and further enhance the critical role of Party branches and the vanguard and exemplary role of Party members.
We’ve made solid progress in themededucation, incorporating PXi Jinping:The Governance of China IVQ, PSelectedReadings from the Works of Xi JinpingQ,and General Secretary Xi Jinping’s im-portant speeches into the study plan forthe branch Party committees. Based onthe system of Pholding Party branchgeneral meetings, meetings of Partybranch committees, Party group meet-ings, and Party lecturesQ, coupled withthe themed Party Day activities, we con-ducted two sessions of group studies, ??sessions of self-study, and five themedParty lectures. The Company distributed books suchas PSelected Readings from the Worksof Xi JinpingQ and PAnswers to ?––Questions about the Report of the ?–thCPC National CongressQ to all Partymembers and strengthened the assess-ment mechanism for Party membersand cadres’daily study. By now ?· partymembers and cadres have passed theassessment.
By integrating the themedParty day activities withthe Company’s corebusiness, Party-buildingbrand creation, and Partymember education, theCompany carried out ??themed Party Day activ-ities in an in-depth andpractical manner.
The Company is committed toParty building and ideologicaleducation for cadres and em-ployees through the officialWeChat account. Dedicatedpersonnel has been assignedto review and publish articleson the website, along withprompt information disclosureand updates. In addition, wehave built a Party-buildingactivity room, revolutionaryworkshops, and Party-buildingpublicity bulletin to create agreat atmosphere for Partybuilding.
To carry forward the traditionof revolution and learn thegreat spirit of persistence andrevolution from our ances-tors, we visited the revolu-tionary bases, including WuxiLearning Base of Yan’an Spirit,Maoshan Memorial Hall ofNew Fourth Army, JiangyinMemorial Hall of Dujiang Bat-tle, and Martyrs Memorial Hallin ?–?·. Such visits have e^ec-tively strengthened our idealsand beliefs to better performduties, fulfill promises, andtake on responsibilities atwork.
In the principles of joint Party-building, jointpursuit for excellence and common progress ofthe alliances, the Company’s Party committeehas signed Party-building alliance responsibilityletters with relevant enterprises and institutions.Through daily work exchanges in Party building,we have developed a new Party-building patternfeaturing Pjoint construction and management,sharing of resources, and common develop-mentQ.During the reporting period, the Company andthe alliance units successively held large-scalehiking activities to promote environmental pro-tection themed on PRemain true to our originalaspiration and follow the Party leadershipQ, ananti-corruption education activity themed onintegrity, and the activity to enhance the sense ofnational security themed on PFollow the histori-cal footprints to experience the stormy journeyQ.
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 integrityWe have always attached great importance to prevention of violations of Party conduct and government integrity, while striving to create a clean and upright working environment. TheCompany conducted warning education through typical real-life cases of combating corruption and upholding integrity to enhance the persuasiveness and effectiveness of legal anddiscipline education.
We organized lectures and heldface-to-face talks on integrity,organized sta^ to watch videoson anti-corruption for threetimes, and kept abreast of thework and life conditions of mid-dle managers and executives,so as to ensure unwaveringawareness of integrity.
We strictly uphold the principleof democratic centralism. All thethree categories of major issuesand the issues involving largefunds are subject to collective dis-cussion for decision making. Thebranch Party committee held fourmeetings to discuss major issues.
All Party members signed a let-ter of commitment to integrityto further strengthen the pre-vention and control of integri-ty-related risks.
We develop intra-Party democracyand strengthen intra-Party supervi-sion for Party members to better un-derstand and engage in intra-Partya^airs.
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 FAITHGREATERPROSPERITYEmployees are fundamental for an enterprise’s development.Upholding the people philosophy of PActing in GoodFaith for Shared Prosperity,Q Autowell opens its arm tothe world’s bright minds and empowers them to fully tapinto their potential and realize their aspirations. We haverelatively complete human resources management systemsfor employee rights and interests, employee development,employee care, and workplace safety. We make continuedefforts to attract and train talents, improve employeebenefits, protect employee rights and interests, promoteemployee development, and enhance team building, so thatemployees can grow with the Company.
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 rateEmployment
Bene_ts
Promotion
Training
Health
%
%%
%%
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
Autowell strictly complies with the Labor Law of the PeopleOs Republic of China, the Labor Contract Law of the People’s Republic of China, the Law of the People’s Republic of China on theProtection of Rights and Interests of Women, and other pertinent laws and regulations. We uphold equality in the workplace, resolutely avoid child and forced labor, and oppose any form ofdiscrimination. The Company constantly improves internal systems and regulations, provides an equal and open platform for the development of employees regardless of their gender, age,nationality, and ethnic group, and strives to build a shared home where our people work together to realize their ambitions.
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 INTERESTSAutowell adheres to the compensation management concept that values people and emphasizes performance. We work to develop fair, transparent, and rational compensation andbene_ts systems where employees are paid based on their performance and contributions, and better bene_ts are o^ered to attract and retain talent and enhance team cohesionand our core competitiveness.We seek to build a competitive compensation system where a compensation framework is built on the value of posts and skill levels through post classi_cation and post valueevaluation methodology, and variable compensation is determined based on employee performance. In addition, we implement dynamic compensation management, for example,giving raises for promotions and skill improvement.During the reporting period, the Company continuously improved various bene_ts management systems, standards and, processes to make best use of bene_ts.
Compensation system
Bene?ts system
Insurance
Flexible working
Holiday entitlementShuttle serviceSubsidies
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
人
The Company recognizes the contributions of employees and gives incentives to outstanding employees in di^erent positions such as sales, R&D, and operations through equityincentives and cash incentives.
We actively implement domestic management and safeguard employees’right to know, participate, express, and su-pervise. In order to better regulate internal communication management, provide smooth communication channels foremployees, and e^ectively convey and implement the Company’s corporate culture and strategic objectives, we updat-ed and released the Employee Handbook (?–?·) in accordance with pertinent laws and regulations, established diversecommunication channels between management and employees, gathered opinions from employees on the Company’soperations and major matters concerning employee interests, held democratic consultations, and took measures to pro-tect employee rights and interests, inspire their enthusiasm and creativity, and strengthen science-based management.
Suggestion box in oace area
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
The Company o^ers an enabling environment for employee development and organizes various training programs such as training on specialized skills, management skills, employee health,and children’s education according to the characteristics and needs of di^erent posts. The Company implements a dual-sequence career development scheme to facilitate personalizeddevelopment of employees.In order to encourage employees to upskill themselves, the Company o^ers reimbursements to employees if they are granted post-related vocational quali_cations certi_cates, such as theChartered Institute of Procurement and Supply (CIPS) certi_cation and the Project Management Professional (PMP) credential. Guidance is also provided to help employees develop careerdevelopment plans.
PROMOTING EMPLOYEE DEVELOPMENT
Autowell has a personalized training system and provides targeted training programs according to the needs of di^erent employees. The Company’s online learning platform o^ers a wealth ofresources to help employees broaden their horizon.
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
Training expendituresper employee
Average training hoursfor new employees
Average training hours formiddle-level managers
Proportion of middle-levelmanagers who received training
Average training hours forsenior executives
Proportion of senior executiveswho received training
Average training hours forfemale employees
Proportion of female employeeswho received training
Proportion of new employeeswho received training
Average training hoursfor R&D personnel
Proportion of R&D personnelwho received training
Training hours peremployee
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
Employees in the management sequence take on moreresponsibility to get a promotion and become a higher-level manager.
Autowell o^ers multi-dimensional talent development paths, endogenous career development paths, and customized skills matrices. The Company devises a career development plan foreach employee and a promotion system for each employee to meet the common development needs of employees and the company.
Growth path
Growth pathEmployees sharpen their skills and accumulate experienceat speci_ed posts to grow into a specialist in a particularfield. For the purpose of growing with employees, theCompany fully exploits various resources and conditionsto provide training and development opportunities foremployees help them exert their potential completely.
Promotion
Sta^ Member
Junior Engineer
Middle-levelEngineer
Senior Eng(teer
Senior Sta^Engineer
Principal Engineer
Supervisor
Manager
Director
Management
P1-----P6Manager 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.
Specialist
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
Dual-sequence career development scheme
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
Autowell cares for employees and emphasizes work-life balance. A variety of employee activities such as birthday parties, holiday perks, team building activities, and psychological consultingare carried out to increase employees’sense of belonging and identity with the Company.
Team building activities are designed to foster ahealthy, harmonious, pleasant, and positive workenvironment and further strengthen interdepartmentalcommunication, solidarity, and cooperation, enhanceteam cohesion, and increase the work enthusiasm andefficiency of staff. The Company organized a sportscarnival in June 2023.
Team building activities
Sports carnival
In order to enrich the life ofemployees and improve theirsense of happiness, the Compa-ny sets up interest groups andconducts internal and externalcompetitions, mountaineering,race walks, and sports meet-ings on a regular basis. Colorfulactivities are also carried outto celebrate the Internation-al Women’s Day, the WorldReading Day, the Dragon BoatFestival, the Qixi Festival, theTeachers’Day, the Mid-AutumnFestival, and other festivals.
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
We strive to build a healthy and safe work environmentfor employees. Following the management policy ofPhaving prevention as the main concern and com-bining prevention with remedying,Q we improved theoccupational health and safety (OHS) management sys-tems, implemented the system of responsibility for theprevention and control of occupational hazards, andtook various measures such as occupational health riskassessment, risk management and control, personalprotection, publicity, and training to ensure occupa-tional health and safety for employees.
Invite experts in occupational disease prevention and control to provide training on health manage-ment for employees and increase their awareness of occupational health.
Invite third-party organizations to conduct occupational health and safety assessments on a regularbasis to ensure production safety. Carry out technical transformations for special types of work or post involving occupational haz-ards so as to minimize the risk. Ensure that the purchased personal protective gears, equipment, and facilities comply with ap-plicable regulations, and are maintained and updated on a regular basis. Continuously improve operations involving toxic and hazardous substances, dust, and noise toreduce exposures to occupational diseases.
Occupational health andsafety
Precautionary measures for occupational diseases
Carry out pre-job health checkups, regular on-the-job health checkups, health checkups whenleaving the post, as well as ad-hoc health checkups, and establish occupational health surveillancerecords. Periodically evaluate and update the occupational hazards, check the processes and productionequipment on a regular basis, promptly identify and evaluate the occupational hazards, and ensurethat employees have no occupational health restrictions or occupational diseases.
Education andtraining onoccupationaldiseases
Internal healthpractices
Periodic ex-ternal assess-ments
Reducing ex-posures in the
workplace
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
We pay high attention to employees’mental health. In ?–?·, online and obine training programs on mental health were held to help employees learn to see from a psychological perspec-tive and e^ectively protect their mental health.
This course, which started on June ?, ?–?·, primarily targeted super-visors, managers, and executives who felt stressed. A total of ü peoplevoluntarily signed up for the course.
Emotion and Stress Management
Workplace Emotion and Stress Management
This course, which started on December ?, ?–?·, primarily targetedfrontline team leaders and R&D personnel who felt under pressure. Atotal of ?? attended the course.
Emphasis on mental health
Protection of employee privacyPrivacy protection is fundamental to mutual trust between a company and its employees. In accordance with pertinent lawsand regulations, Autowell has laid down stringent employee privacy protection systems, including the nondisclosure agree-ment, information protection system, and the data security management system.In terms of HR management, the Company ensures that employees’personal information and privacy are strictly managedaccording to laws and regulations. With regard to IT system construction, the Company adopts strict information securitymeasures to guarantee the security and con_dentiality of private information of the Company and employees. The Companyalso provides training on employee privacy protection for the entire sta^ to increase their awareness of privacy protectionand con_dentiality and capacity for privacy protection.Additionally, the Company establishes health records for employees working at posts that involve hazardous factors of occu-pational diseases, including their work experience, previous diseases, health check reports, and post-related information. Ev-ery employee has their exclusive medical record which is managed by dedicated personnel and may not be accessed by anyunauthorized persons.
Number of trainees
Number of trainees
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 QUALITYAt Autowell, product quality and production safety areconsidered the Pballast stoneQ of corporate development.In pursuing high-quality development, the Company takessolid measures to manage production safety, strictly controlproduct quality and project quality, strengthen customer servicemechanisms, and maintain its brand value with excellent productquality.
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
Production safety
Product quality
Customer service
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
Through the Job Description, the System of Responsibility for Production Safety,and other systems, the Company speci_es the safety production responsibilities andwork norms of the general manager, department heads, team leaders, and frontlinepersonnel. A top-down management model extending to the departmental levelis formed, where trade unions and safety supervisors oversee safety productionmanagement, and 11 functional departments such as the Human ResourcesDepartment, the General Management Department, and the Product ManagementDepartment implement safety production management and strictly perform safetyproduction responsibilities.
Organizational structure of the Production Safety Committee
Trade unions
PRODUCTION SAFETY MANAGEMENT
Organizations responsible for productionsafety
Responsible Parties
Human ResourcesDepartmentGeneral ManagementDepartmentProduct ManagementDepartmentR&D centersManufacturing centersEngineering ServicesDepartmentSales DepartmentFinance DepartmentStrategic ProcurementDepartmentProcess and InformationDepartmentQuality AssuranceDepartment
The Company places great emphasis on emergency management of accidents in production. Inorder to improve the ability to deal with risks and prevent accidents, ensure the safety and healthof employees as well as people living in surrounding areas, and minimize the property losses,environmental damage, and social impact caused by production accidents and environmentalemergencies, the Company has developed the System of Responsibility for Production Safety, theRegulations on Emergency Handling, and the Internal Reporting System for Important Informationbased on its realities. A crisis response taskforce comprising the management, the GeneralManagement Department, manufacturing centers, and the Finance Department is responsible forpromptly handling major events related to safety, environmental protection, and product qualitythat may undermine the Company’s image and reputation.
According to China’s Law on Work Safety and production safety standards,the Company has formulated a series of production safety managementsystems, developed a system of safety standards, the classified riskmanagement system, and the risk identification and prevention system,and put up warning signs and posters on safety knowledge at workshopsand factories. Safety emergency drills are carried out on a regular basis toimprove production personnel’s ability to respond to emergencies. In 2023,the Company organized two emergency drills, which were attended bymore than 500 employees.
Emergency handling
Production safety education
Safetyemergency
drill
Safety supervisors
Safety emergencydrills
Total participants
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
EHS trainingProduction safety training
Logistics operation safety training
Performance by the numbersThree-level safety training systemEmergency reliefForklift operationManufacturing and logistics site safety
management (monthly)
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
Autowell strictly complies with the Law on Product Quality and other laws andregulations, adheres to the quality management concept that PQuality is critical to theCompany, just as the water that bears the boat is the same that swallows it up.Q Allemployees follow the PThree NosQ principle of quality management. The Companyimplements the plan-do-check-act (PDCA) model for quality assurance, has establisheda full-process quality management mechanism from supply chain management toaftersales service, and sees to it that quality responsibility in each process is ful_lled.
We advanced the construction and improvement of quality management systemsand established and passed the ISO9001 quality management system certification;continued to efficiently apply information technology to business and productionactivities, established the informatization and industrialization integration managementsystem in accordance with the GB/T23001-2017 Integration of informatization andindustrialization management systems Requirements and GB/T23006-2022 Integrationof informatization and industrialization management systems Requirements forenhanced capability grading, and received the Integration of Informatization andIndustrialization Management System Certi_cate in July 2021.
A sound quality responsibility system and a three-level quality commitment mechanismare in place.
General Manager ofthe Company: Personwho takes primaryresponsibility for quality
Department manager:
Person who takesmain responsibility forquality
Second-linemanagement andfrontline employeesPersons directlyresponsible for qualityThe Company embeds quality management in the whole process from customerrequirements analysis, R&D, process, procurement, and manufacturing to the endof the product lifecyle. It has a complete set of quality assurance systems to fulfillresponsibility for product quality and guarantee product quality:
SupplierManagementProcess QualityControlTraceabilityManagement
ProcurementManagementDelivery QualityControlAftersalesService%l%l%l%l%l%l
MaterialsInspectionNonconformingProduct ManagementImprovement onCustomer Feedback
ISO9001 quality management system
certi?cateIntegration of Informatization andIndustrialization Management System
Certi?cate
PRODUCT QUALITY MANAGEMENT
Improving quality management systems
Three-level quality commitment mechanism
Level 1
Level 2
Level 3PThree NosQ principleof quality management
Nononconformingraw materials
No defectiveproducts
No deliveryof defectiveproducts
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
GB/T 19001-2016 quality management system certi_cate
Autowell integrates quality control into thewhole process of production and exercisesstrict control over supply quality, processquality, delivery quality, and aftersales ser-vice quality so as to prevent product qualityissues.
In order to ensure the effectivenessof quality management systems, theCompany audits every process and linkrelated to product quality and whenproblems are identified, takes rectifyingand preventive measures immediately toput things right and ensure that the sameproblems don’t happen again.
Autowell always conforms to relevant standards for quality manage-ment systems. The Company and its subsidiaries (Autowell IntelligentEquipment, SCEC, ATW XuRi, and ATW Coshin) have passed the GB/T?ü––?-?–?? quality management system certi_cation.Our products meet international standards including those in Europeand the U.S., are certi_ed by international testing and certi_cation pro-viders agencies like T?V S?D and Intertek, and hold the European Con-formity (CE) and Eurasian Conformity (EAC) certi_cates. Additionally, ourproducts have been granted access to the North American market.
Product certi_cate
Multi-level quality audit mechanism
Level 1: Process monitoring
Level 2: Internal auditLevel 3: Certi_cation and licensing
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
During the reporting period, the Company carried out quality im-provement campaigns in response to potential risks in the use ofrelated equipment. For example, it launched a campaign to reducethe attrition of cell soldering stringers and a campaign aimed atstandardizing assembly quality in the weld region of semi-conductorbonders. It set up special project teams, used professional measur-ing devices, and applied problem analysis tools (MSA, ?W, brain-storming) to develop solutions and rectify potential risks. Based onthe actual use of customers, improvement measures were takenpromptly, forming a closed loop of quality improvement.
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.
In ?–?·, more than ?,?–– opinions were collected throughthe Company’s OA system in an e^ort to improve productquality and operational eaciency, helping reduce costsby RMB??.?? million.
Since ?–??, the Company has held manufac-turing and logistics skills competitions fortwo consecutive years to call for the pursuitof superior workmanship and further improveproduct quality.
Quality improvement campaignsCollecting opinionsVocational skill competitions
End-to-End quality control
Quality commitmentmechanism
Opinions collectedin 2023
Reduced costs5,700+RMB25.62 million
Implementing the ChiefQuality Oacer system
Setting up designatedpost for quality control
Quality managementcampaigns
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
High-quality customer service is key for companies to stand out in market competition, attract more customers, and prevent customer churn.
Responsible marketing managementIn order to meet compliance requirements in marketing campaigns, the Companystrictly complies with national and local laws and regulations, maintains honestyin operations, abides by industry norms, and consciously maintains the industrialoperation order. We uphold moral norms centered on honesty, and have developedthe bidding management system, the supplier management system, and integrityagreement to ensure compliance and e^ectiveness in the process of marketing.The Company has a legal affairs department and hires legal counsels to provideprofessional legal advice on its operations and help prevent marketing risks.Brand crisis responseThe company has put in place a brand crisis response mechanism and process inorder to deal with any brand crisis promptly and appropriately.
Autowell has stayed alert to brand crises, and no brand crisis hasoccurred since its inception.
IMPROVING CUSTOMER SERVICE
We follow the 5s principle for brand crisis response, that is, shoulder the matter,sincerity, speed, system, and standard.
Principle:
STANDARD
Shoulder the
matter
SINCERITY
SPEEDSYSTEM
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 andinterestsUpholding the service concept of Phumbleness, carefulness, and professionalism,Qthe Company takes multiple measures such as day-to-day maintenance, key pointanalysis, and timely review to improve individual service items. Additionally, theCompany organizes internal and external training for speci_c product lines, weeklymeetings, sales case and experience sharing sessions, and the like to improve theprofessional competence and all-round ability of teams.We attach great importance to the management of customer information security, continuously hone our ability to maintain information con_dentiality and data security, strengthenthe full-process management of customer information, and take solid measures to prevent disclosure of customer information. In 2023, the Company introduced the ISO 27001 systemmanagement methodology, oacially started the construction of an information security system, and established or improved the con_dentiality system, access control system, networkmanagement system, and management regulations on the prevention of viruses and malware. A series of measures were taken to prevent leakage of customer information such as strictlycontrolling customer information access rights, customer _le encryption protection, and anti-virus software deployment.We pay particular attention to information security training and drills. During the reporting period, more than 3,000 employees participated in relevant training and examinations, greatlyincreasing their awareness of information security and sharpening their skills to protect information security.We sincerely respond to customer concerns and make continued efforts to improve the aftersales service system and enhance customer satisfaction and experience throughout theprocess before, during, and after sale.
Aftersales service system
Customer information security
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
Customer complaint response mechanismIn order to better regulate the onsite customer service and problem feedback and handling processes and ensure that problems in each process are identified, reported, andaddressed as early as possible in a closed loop, Autowell has developed the Improvement on Customer Feedback, Aftersales Service Process, and other systems to promptly deal withproblems in onsite service, use, and other processes and further improve customer satisfaction.
Nonconforming product handling mechanism
According to the Company’s regulations on nonconforming product management, if any defectsare found in products delivered to customers, a taskforce will be established immediately, onsiteinspections will be carried out to evaluate and analyze the situation, and then, practical solutionswill be developed promptly to ensure that the problems are e^ectively solved.
During the reporting period, no incident violating the Company’squality commitments occurred during and after the productdelivery process.
In 2023, our customer satisfaction reached 95.4% according to our survey on key customers.
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
We continued to popularize product and service knowledge among customers, provide onsite or remote technical support for them, and hold training for their teams, so as to fullyempower customers.
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 TOSOCIETYCONSTANTDEDICATIONWhile pursuing our own high-quality development, we takeconcrete actions to fulfill our social responsibility and giveback to society. We actively engage in public interest activitiesand support the development of education, spreading positivevibes in society. In particular, we constantly put energy andfund into youth care and education as part of our e^orts to giveback to society. We encourage employees to volunteer and getinvolved in public interest activities, bringing more love intosociety.
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
Tax payment according to law
Donations
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
102.52506.82360.65202320222021In 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
Commemorative badge
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 donationsThe Company pays speci_ed types of taxes at the set tax rates withinthe time limit, contributing to national and local fiscal revenue andpromoting fairness and justice in taxation.
Autowell works closely with the community to train and advancetalent. The Company provides job opportunities for local people, whichhelps increase local employment, promote the development of thelocal economy, and enhance the sense of belonging of our employees,enabling them to witness the great changes in their community. Onthe Company’s part, this also serves the purpose of growing with thecommunity and employees.
Tax status in the past three years
RMB100 million
6.61
2.61
1.76
The company is actively involved in public interest activities, cares for theneeds of vulnerable groups, and works hard to help build a better world. Inthe past three years, we have donated a total of RMB9,699,900 to supporteducation development, public emergency response, and people in need.We work with loving people from all sectors of society to promote thedevelopment of social undertakings.
202320222021
Total amount of donationsRMB9,699,900
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 ACTIVITIESAs a responsible company, we encourage employees to volunteer and contribute to society.
“Walk side by side”
To commemorate the White Cane Safety Day, Autowell volunteers participated ina charity walk event with people who are blind or visually impaired, helping themexperience the beauty of the world.
Contribution toSocietyConstant DedicationSolid FoundationCharacteristicgovernanceIndependent R&DATW Innovation
Good FaithGreater Prosperity
Priority to SafetyFocus on Quality
Close CooperationWin-win Outcomes
Green DevelopmentLow-carbonPractices
Appendices
CLOSECOOPERATIONWIN-WINOUTCOMESTo deliver high-quality products and services to ourcustomers, we must ensure that the products providedby our suppliers have stable quality. To this end, wecontinuously strengthen centralized management of thesupply chain system, promote businesses along the supplychain to do their due diligence, so as build a safe, green,high-quality, and responsible supply chain.
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)
Sustainable supply chain
Industrial development
%
%
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
Autowell insists on responsible procurement and implements the strategies of transparent procurement and local purchasing, and embeds the concept of sustainability into the wholeprocess of procurement. The Company has developed relevant systems on procurement, such as Supplier Management and Relationships and Supplier Development and Approval. Supplier development and selectionIn order to ensure the safety of raw materials and improve product quality, Autowell has established the principles of supplier development and laid down regulations on suppliers’basic qualifications, capital status, operating qualifications, scale of production, and technical strength. The Company signs the Non-Disclosure Agreement, Supplier QualityAgreement, and Supplier Integrity Agreement with all suppliers, and makes clear the requirements on supplier conduct and supplier selection. In addition, inspections must be carriedout on new suppliers to ensure that they meet procurement requirements.
Supplier management
Supplierdevelopment
principles
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
Classi_ed supplier management
According to the amount of procurement, the Company divides suppliers into three types, and implements classi_ed supplier management in terms of quality, costs, evaluation, etc.
De?nitionManagement strategy
Suppliers from whichthe amount of pro-curement accountsfor no more than ?–%of the total procure-ment and is greaterthan RMB· million inthe evaluation peri-od.
Maintain supplierrelationships, empha-size quality and costs,implement centralizedpurchasing, carry outjoint R&D activities,and lower costs. All suppliers aresubject to perfor-mance evaluation.
Suppliers from whichthe amount of pro-curement accountsfor no more than ??%of the total procure-ment and is greaterthan RMB? million inthe evaluation peri-od.
Emphasize quality,guarantee inventorysafety, implement cen-tralized purchasing, en-sure sufficient supply,and lower costs. Suppliers with anMRB NPL ratio of above–.?% during the perfor-mance evaluation peri-od shall be evaluated,while other suppliersnot.
Suppliers fromwhich the amountof procurement ac-counts for no morethan ?% of the totalprocurement in theevaluation period.
Suppliers from which theamount of procurement ac-counts for no more than ?% ofthe total procurement in theevaluation period. Emphasize costs, reduce thenumber of suppliers, imple-ment centralized purchasing,and reduce procurement man-agement costs. Suppliers with an MRB NPLratio of above –.?% during theperformance evaluation periodshall be evaluated, while othersuppliers not.
Type 1Type 1Type 2Type 2Type 3Type 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
Compared with standard parts suppliers, Autowell focuses on the information security management ability of machining equipment suppliers, and conducts an information securitymanagement review on them every half year.Supervisor: Supplier Quality Engineer (SQE)Supervising the improvement process:
Hold discussions and draw up continuousimprovement plans, which can be implemented
after being con_rmed by SQE.
Step1 Step2 Step3
SQE keeps records or visits the supplier toverify whether the improvements meet speci_c
requirements.
According to the improvement status, updatethe List of Quali_ed Suppliers so as to build aharmonious supply chain ecosystem.
Supplier supervisionIn order to ensure that the procurement capacity meets the needs of its sustainable development, the Company conducts semi-annual performance evaluation on suppliers based on the PeriodicSupplier Performance Evaluation Form (Standard Parts/Processed Parts), classi_es suppliers into four levels (A, B, C, and D) according to the grading rules (B is the qualifying criterion), and adjuststhe cooperation models according to the evaluation results.
Standardparts suppliersupervision
LevelLevel 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<50Score
Cooperationmodel
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 communicationWhile improving our own management ability, the Companyregularly communicates with suppliers of main and auxiliary ma-terials through onsite meetings. The topics mainly cover analysisof actual use of products, analysis of subsequent use of products,promotion and e^ectiveness of new products, and overall prod-uct stability.During the reporting period, in order the Company held the an-nual supplier conference themed PA Better ?–? and a Winning?–??Q to help suppliers get a deeper understanding of our strat-egies and development plans. A total of ü· suppliers participatedin the conference, and the amount of procurement from theparticipating suppliers accounted for ??% of the Company’s totalpurchases in the year.
The company insists on green procurement and ensures that the materials used, including packaging (such as materials, components, and equipment) meet the requirements of nationalenvironmental policies. The Company gives priority to suppliers with the ISO9001 quality management system certi_cation, the ISO140001 environmental management system certi_cation,and the ISO45001 occupational health and safety management system certi_cation, and pays constant attention to supplier performance in labor relations, employee rights protection,environmental health, emergency response, and other aspects of sustainable development.The Company takes forward-looking and flexible measures to ensure supply chain stability and efficiency and avoid supply chain disruptions. Meanwhile, amid the trend of domesticalternatives, the Company actively looks for high-quality domestic suppliers under the premise of ensuring quality and costs.
Develop inventory plans for bottle-neck materials and materials with along delivery period based on annualsales forecasts.
Implement multiple sourcing andreserve for suppliers of core materialsand few structures.
Regularly assess supplier capacity, ad-just purchasing strategies, and ensuresupplies are delivered on time.
Attention to supplier ESG performance
Supply chain stability
Number of new standard parts suppliersduring the reporting period
Management empowermentIn order to improve our supplier management and quality control capabilities tomeet the needs for sophisticated and key materials in our rapid development,we took _eld trips to industry-leading suppliers, learned about advanced experi-ence and summarized ? practical improvement measures, and provided themto other suppliers so they could choose to use according to their own reality. Topromote the improvement measures in batches, we selected ? key suppliers, su-pervised their implementation of the selected measures, conducted onsite evalu-ations on the implementation e^ects, and kept track of the implementation.This management empowerment event greatly improved the overall manage-ment ability and pass rate of suppliers. In particular, the pass rate of materialsrose by ?.·% over ?–??, meeting the set target.
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
Autowell is an active player in the industry. We participate in variousexhibitions, carry out project cooperation with other enterprises, and playa role in national key R&D programs. Exchanges and collaboration withindustry peers can spur innovation vitality, enabling us to work together toboost the whole industry.Autowell’s vision is PWherever there is a factory there is ATW’s intelligent manufacturing system.Q Going forward, Autowell will uphold its long-term mission PBuild Smart Factory with NewTechnologies, Drive Global Intelligent Manufacturing.Q Autowell is a practitioner and a pioneer in the wave of intelligent manufacturing in the global new energy market. During the reportingperiod, we participated in a variety of exhibitions held in Indonesia, Türkiye, Germany, the United States, and India, continuously strengthened international exchanges and cooperation,improved our layout along the entire industry chain, and put energy into creating greater value for customers and accelerating the growth of the global new energy market.
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
In June 2023, Intersolar Europe, the world’s leading exhibitionfor the solar industry was held in Trade Fair Center MesseMünchen, Germany, bringing together a cohort of well-knownsolar photovoltaic enterprises from around the world. At thisexhibition, Autowell presented its latest intelligent photovoltaic+ energy storage manufacturing solutions, drawing attentionfrom large audiences at home and abroad.
In April 2023, the annual International SolarEX Istanbul Fair tookplace, which is the largest and most influential solar energyand energy storage event in Türkiye and even the Middle East.As a reputed intelligent photovoltaic equipment manufacturer,Autowell came under the spotlight by showcasing a range ofintelligent photovoltaic devices and solutions. The delegationalso interacted with professionals from around the world andshared experience and views with one another to promotetechnological advances in the industry.
Autowell attends Intersolar Europe held in Munich, GermanyAutowell attends the International SolarEX Istanbul Fair in Türkiye
Involvement in industry eventsAt the International Photovoltaic Power Generation andSmart Energy Conference & Exhibition (SNEC 2023) inMay 2023, Autowell showed o^ its integrated solutions ofphotovoltaic intelligent manufacturing and had in-depthdiscussions and exchanges with visitors on productsand technologies, innovation and R&D, industrialdevelopment, and other topics.
In August 2023, the 2nd China International Energy StorageExpo hosted by China Leader Energy Storage Alliance (EESA)was held in Suzhou International Expo Center. Autowellpresented its ESS Cell Module/PACK Automatic AssemblyLine in the _eld of energy storage.
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
Characteristic
governanceIndependent R&D
ATW Innovation
Good FaithGreater Prosperity
Priority to SafetyFocus on Quality
Contribution to
SocietyConstant Dedication
Green Development
Low-carbon
Practices
Appendices
GREENDEVELOPMENTLOW-CARBONPRACTICESIn response to the call for global climate action, Autowell holdssteadfast to the path of green development, persists in ful_llingthe responsibilities and obligations for eco-environmentalprotection, actively carries out environmental management,keeps improving its environmental management capabilities,and coordinates the efforts to reduce carbon emissions,cut pollution, go green, and achieve growth. It makes greatefforts to promote a green and low-carbon lifestyle and wayof production and achieve concerted progress of economicgrowth and eco-environmental protection.
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.
Investment in environmental protection
GHG emissions reduction
Energy conservation management
Pollutant management
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
To ensure the effective operation of its environmental and safety management system and continuously improveits environmental management system, the Company sets up the post of environmental and safety specialist to beresponsible for environmental protection and production safety during production and business operations.
In strict compliance with lawsand regulations such as theEnvironmental ProtectionLaw of the Peoples Republicof China, EnvironmentalImpact Assessment Law,the Water Law, and theLaw on the Prevention andControl of EnvironmentalPollution by Solid Wastes,the Company continuouslyimproves the construction ofenvironmental managementsystems based on actualneeds of businesses and day-to-day operations. It obtainedthe ISO14000 certification inApril 2023.
ENVIRONMENT MANAGEMENT
Environmental managementsystem
Autowell environmental and safety management system
In order to better regulate emergency response to environmental emergencies,the Company has developed the Contingency Plan for EnvironmentalEmergencies, conducted a systematic analysis of environmental risks andpotential environmental emergencies, devised targeted environmental riskprevention and control measures, established an internal early warning system,and put in place emergency response resources. In addition, the Companyorganizes emergency response training and drills every year, prepares drillreports, and takes other measures to strengthen its emergency response ability.
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
The Company attaches great importance to environmental safety and protection, incorporatesthe concept of green development in its daily operations, continuously strengthens pollutantmanagement and the rational use of resources and energy, regularly organizes third-party agenciesto carry out testing at factories involving occupational-disease-inductive factors, and takes e^ectivemeasures to support the realization of the country’s Pcarbon peaking and carbon neutrality goals.QIn 2023, Autowell participated in and passed the voluntary cleaner production audit, passed the greenfactory certification audit, and was certified as a green factory in Jiangsu Province. The Companyfurther improved its green production technology to reduce the consumption of energy and materialsduring production and lower the generation and emission of pollutants, thus achieving botheconomic and environmental bene_ts. With its rapid development, the Company is constantly lookingfor better solutions for cleaner production and promoting green production and green lifestyles.The Company introduces the concept of ecological design (Reduce, Recycle, Reuse) to product design.In accordance with the requirements in GB/T 24256, it develops ecological designs for products takinginto account resource conservation and comprehensive use in the selection of raw materials, productenergy efficiency design, reduction or substitution of hazardous substances, cleaner productionprocess and technology, packaging and transportation, recourse recycling, hazardless treatment, andother aspects.
POLLUTANT MANAGEMENT
Cleaner production
2 Durability2 Maintainability2 Remanufacturability2 Reliability2 Reusability
The main types of waste gas generated at the Company are oil mistin machining workshops and oil smokes in the kitchen. Waste gastreatment devices are installed at the waste gas outlet to meetthe emission standards, and the discharged waste gas is tested bytesting agencies on a regular basis.No industrial wastewater is generated during production. Thereis only domestic sewage, which is pretreated by septic tanks 4meters deep at the factory and then discharged to the municipalpipe networks and centrally treated by Wuxi Xincheng WaterTreatment Plant.In order to minimize environmental impact, solid waste iscollected in a classified way and centrally handled before it istransferred to quali_ed departments for proper treatment.The company entrusts quali_ed agencies to handle the hazardouscutting ‘uid generated during production.
2 Modular 2 Intelligent
2 Disassembly ofparts with negativeenvironmental impact2 Recyclability
Discharge of three wastes
Autowell greendesign concept
Two strengths
Five featuresSustainability
Waste gas
Waste water
Solid waste
We pay high attention to the impact of noise during production on the neighboringenvironment and employees. The Company is located in an industrial park, with noresidential buildings and living quarters around it. We take multiple measures such asprotective equipment, work environment testing, and occupational health check tominimize the occupational health hazards of noise on employees.During the reporting period, the Company met the Type 3standard set forth in the GB 12348-2008 Emission standard forindustrial enterprises noise at boundary.
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
Following the energy policy of Pcompliance with laws and regulations,energy saving and lower consumption, science-based development,and continuous improvement,Q Autowell continued to improve theenergy management system, promote the application of the onlineenergy consumption monitoring system and on the basis of analysisand use of energy consumption big data, advance refined energymanagement, adopt new energy management methods, and fully tapinto the energy saving potential, thus ensuring the effectiveness ofenergy management and use.
ENERGY RESOURCE MANAGEMENT
Energy management system
ISO 50001:2018 energymanagement system certi?cation
Energy monitoring and management system
The energy resources used during production and operations mainly include municipal water, purchased electricity, fuel, and natural gas.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
2023
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?ceThe Company advocates green and low-carbon practices among employees in their daily life and at work, and has launched the green oace campaign. We encourage every employee to saveresources, avoid waste, help build a paperless oace, and reduce carbon footprint.
Set air conditioners at proper tem-perature according to the season,avoid using air conditioners whileleaving doors and windows open,and advocate using air conditionersone hour less.
Turn off air conditioners, lights,computers, printers, and otherequipment after work to reduce en-ergy consumption and avid waste.
Choose energy-saving lamps for out-door and indoor lighting, use naturallight as much as possible, reduce thenumber of lamps when there is suffi-cient lighting, and adjust the durationof lighting accord to the season.
Advocate paperless oace. Per capita paperconsumption: In ?–??, per capita paperconsumption at the Company was ??–.??pieces, and the _gure declined to ??.·ü in?–?·, down ?.??% year on year.
01020304
The Company pays high attention to promoting energy conservation and environmental protection. During the reporting period, we promptly shared and promoted the latest laws,regulations, and policies related to energy conservation and carbon emission reduction through training, putting up posters, and other methods. We organized employees to participatein environmental protection activities and promote new energy-saving products and technologies that with lower carbon emissions, increasing employees’awareness of energyconservation and environmental protection.
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
Upholding the green concept, we lead the electronics industry to actively perform social responsibility. In 2023, the Company set up a carbon veri_cation working group to managecarbon emissions according to the ISO 14064 standard. In May 2023, the Company released its 2022 greenhouse gas veri_cation report, setting an example for China’s special-purposeequipment manufacturing industry in carbon inventory and carbon intensity measurement.
In order to ensure the e^ectiveness of GHG emission veri_cation, accounting, and other work, the Company has established a carbon emission management architecture headed by theGeneral manager, where representatives of the management and the General Management Department take charge of the implementation, and other functional departments act as theimplementing departments. Steps are taken to build a well-regulated carbon emission management system, engage the entire sta^, and keep the Company on the course of clean, low-carbon, and high-quality development.
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
Other functional departmentsSpeci?c implementationManagementrepresentatives
General ManagementDepartmentCoordinationGeneral ManagerLeader
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 2023During the reporting period, we carried out verification of GHG emission sources within the boundaries according to law, so as to do a better job in GHG emission reduction andaccurately grasp and manage the situation of GHG emissions. According to the results, major GHG emission sources include purchased electricity, natural gas, gasoline, diesel oil, andsome refrigeration units. Among them, indirect emission (i.e., Scope 2) is the most important source of greenhouse gas emissions of the Company, which is mainly generated fromelectricity used during operations.
* 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
2023
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
Use of clean energy
In response to the country’s call for clean energy, the Companypushed forward the construction of solar photovoltaic powergeneration projects in the production base, providing clean energyinto for our green and low-carbon development. As of the end ofthe reporting period, the rooftop solar photovoltaic power stationin our Phase I plant on Xinhua Road covered an area of 17,000square meters, with an installed capacity of 1,599.4 kWp and anestimated annual generating capacity of 1,764.06 MWh. This canreduce carbon dioxide emissions by about 1,006 tons a year.The solar photovoltaic power generation system not only optimizesthe energy mix of the Company but is also conducive to insulationand sun shielding of buildings. Especially in the scotching summer,it can effectively reduce the indoor temperature and lessen theburden of air conditioners, further improving the energy eaciencyand environmental bene_ts.
Energy conservation and carbon reduction management Energy-saving technology transformationThe Company continued to lower energy consumption by strengthening energy conservation management during manufacturing, optimizing the productionprocess, and reducing unit kinetic energy consumption of products. We further promoted the application of the online energy consumption monitoringsystem and on the basis of analysis and use of energy consumption big data, advanced re_ned energy management, adopted new energy managementmethods, and fully tapped into the energy saving potential, thus ensuring the e^ectiveness of energy management and use.
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.
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