Appotronics Corporation Limited 2023 Environmental, Social and Governance (ESG) Report
Appotronics Corporation Limited2023 EnvironmentalSocial and Governance (ESG) Report2024.6
About This ReportMessage from the Chairman
001-002003-006
2.0
Technological InnovationIntellectual Property RightsIndustry ContributionCultural Inheritance
019-021022-023024-026027-030
Table of Contents
Company Pro?leHigh-quality Development Philosophy2023 ESG Highlighted PerformanceMajor Honors in 2023
1.0
009-011012-012012-015016-016
About Appotronics
Anchored in TechnologyPropelled by Innovation
ESG ManagementStakeholder CommunicationAnalysis of Material TopicsESG Actions
3.0
033-034035-036037-037038-038
Practicing ESG ThroughResponsible Management
7.0
095-099100-101101-102102-104
Green ManagementGreen TechnologyGreen OperationClimate Information Disclosure
Eco-Friendly Practices forGreen Development
GRI Standard Index TableReaders’ Feedback
9.0
113-117118-118
Appendix
8.0
107-108109-111
03112-112Public Welfare Assistance for FarmersScience Popularization EducationCommunity Public Welfare
Supporting Public Welfarefor a Be?er Future
5.0
Quality ManagementResponsible MarketingCustomer ServiceResponsible Supply ChainCon?ict Minerals
055-060061-062063-064064-066066-066
Quality Safeguarding in NewManufacturing Endeavors
6.0
Employee Rights and InterestsEmployee DevelopmentCare for EmployeesOccupational Health and Safety
069-077077-082083-086087-092
Fostering People-OrientedGrowth Together
4.0
Corporate GovernanceIntegrity and ComplianceSafety Management
041-044045-048049-052
Strengthening Governancefor Sustainable Operation
About This ReportReport Pro?leThis Report is the 2023 Environmental, Social and Governance (ESG) Report issued by Appotronics Corpora-tion Limited (“Appotronics”,“the Company”,“we”,“us” or "our",stock code: 688007.SH), and also the?fth non-?nancial information report of the Company since its listing. The purpose of preparing this Reportis to re?ect on the practice and performance of the Company and its subsidiaries in ESG ?elds. Appotronicsactively ful?lls the social responsibilities that a corporate citizen should bear to pursue sustainable andhigh-quality development.Report ScopeThis report is an annual report covering the period from January 1, 2023, to December 31, 2023(“reporting period”), with some contents retroactive to previous periods as appropriate.The policies and data provided in this Report encompass the Company and its subsidiaries, with coverageconsistent with the Company’s annual report. Unless otherwise speci?ed, the currency amounts mentionedin this Report are denominated in Renminbi (RMB). The data and cases in this Report are mainly derivedfrom the Company’s statistical reports and related documents.
Basis for PreparationThis Report is prepared mainly based on the requirements of relevant opinions and guidelines, such as theCode of Corporate Governance for Listed Companies, the Guidelines of Shanghai Stock Exchange onSelf-regulatory Supervision of Companies Listed on the STAR Market No. 1 – Standardized Operation, theRules Governing the Listing of Stocks on the STAR Market of Shanghai Stock Exchange, and Guidance onSocial Responsibility Reporting (GB/T36001).The preparation of this Report also takes reference to the Sustainable Development Goals (SDGs) of theUnited Nations, the Sustainability Reporting Standards from the Global Reporting Initiative (GRI standard),the Guidelines for Compiling Corporate Social Responsibility Reports in China (CASS-ESG5.0), and the Rec-ommendations of the Task Force on Climate-related Financial Disclosures of the Task Force on Climate-re-lated Financial Disclosures (TCFD).Con?rmation ExplanationThe ?nancial data in the Report is sourced from the annual report of Appotronics, while other data is pro-vided through internal or manual compilation. The Report has been reviewed by the Company’s manage-ment and approved by the Board of Directors on April 25, 2024.Access to the ReportIn response to the national call for carbon peaking and carbon neutrality goals, the Report is only availablein electronic format. Please visit the ESG page on the of?cial website of Appotronics (www.appotron-ics.com) or visit the Shanghai Stock Exchange (www.sse.com.cn) to view and download the Report.Our email box for Appotronics’ ESG practices is csr@appotronics.cn. We look forward to your feedback and suggestions.
Message fromthe Chairman
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable Operation
About This Report
Message from the Chairman
In 2023, the ?fth consecutive year in which the Company disclosed an independent social responsibility/ESG report,we maintained strategic focus and successfully transformed, actively responding to the market’s expectations for ourhigh-quality development.Domestically, with society’s unprecedented focus on technological innovation across all sectors, the pursuit ofhigh-quality development has become the common goal of all walks of life. We ?rmly believe that the Company’stechnology innovation not only ful?lls our internal development needs but also drives sustainable development for thecountry and even the world. We have made positive contributions to the construction of a community with a sharedfuture for mankind.As one of the ?rst listed companies on the STAR Market, we have centered our efforts around technology innovation,continuously strengthening our practices in environmental protection, social responsibility, and compliance corporategovernance (ESG). In 2023, we have achieved some inspiring accomplishments, and I would like to review them witheveryone here.Firstly, at the governance level, the Company’s Board of Directors has established a Strategic and ESG Committeeresponsible for reviewing the Company’s strategic planning related to sustainable development, environmental, social,and governance issues and guiding the implementation of relevant initiatives. Meanwhile, at the management level,the Company has established a Sustainable Development Department responsible for promoting cross-departmentalcollaboration on sustainable development, disseminating internal policies and providing training relevant to sustainabledevelopment to ensure that the concept of sustainable development is deeply ingrained in employees’ awareness.Most importantly, in 2023, the Company’s automotive optics business made signi?cant progress, achieving remarkableresults despite numerous obstacles and dif?culties. Through this process, we gained a deeper understanding of theimportance of ESG, recognizing that automobile manufacturers should not only focus on the technological capabilities,product quality, and service quality of supply chain companies but also rigorously scrutinize their ESG performance.Continuously improving and enhancing our ESG performance will effectively strengthen our overall competitiveness inthe international market.To this end, we have launched a comprehensive ESG improvement program within the Company, which has beenimplemented across all departments in a multi-dimensional and targeted manner from system construction toconcrete actions. This initiative has led to some notable achievements, including successfully passing the global auto-motive supply chain SAQ review conducted by our clients.Speci?cally, our ESG performance in 2023 can be summarized as follows. In terms of technological innovation, theCompany’s R&D investments in 2023 amounted to RMB 281 million, accounting for 12.7% of our revenue, while ourR&D personnel numbered 428, making up 30.2% of the Company’s total employees. The Company has been awardedover 2,000 authorized patents worldwide, including over 1,000 authorized invention patents, and has won the “China
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Patent Excellence Award”.We have accelerated the application of technological achievements. In the automotive optics ?eld, the designatedautomobile model AITO M9, equipped with the industry’s ?rst automobile-grade projection giant screen provided byus, has been of?cially released and has sold over 70,000 units cumulatively within 3 months after its launch. Addition-ally, the household smart projection products that adopted the Company’s latest ALPD?5.0 super panchromatic lasertechnology, have made their global debut. Products of our overseas customers featuring this technology have won theCES 2024 Innovation Award.Similarly, our core technology continues to contribute to energy conservation and emission reduction. According tostatistics, the Company’s ALPD laser light source projection solution has been installed in over 29,500 units domesti-cally, with a total running time of approximately 316 million hours for light sources, saving around 568 million kWh ofelectricity. This achievement is equivalent to reducing carbon dioxide emissions by over 249 million cubic meters.Correspondingly, the Company has hired professional agencies to conduct greenhouse gas inventories of the plants,and concludes that all environmental indicators have met the standards according to the testing results from third-par-ty professional testing institutions.At the same time, we have successfully obtained the ISO50001 energy management certi?cation, and regularly reviewthe carbon dioxide emissions. By optimizing production processes, strengthening energy management, and employingother methods, we continuously and systematically achieve energy conservation, reduce consumption, and decreaseemissions.In 2023, we continued our commitment to revitalizing the countryside. Once again, through direct public welfareassistance to farmers, we purchased agricultural products from Nandan County in the Guangxi Zhuang AutonomousRegion, providing ?rst-hand support. According to statistics from the local Rural Revitalization Bureau, our purchaseswould bene?t 21 households, leading to an average income increase of over RMB 1,300 per person.We take it as our mission to popularize semiconductor laser light source technology. By utilizing our corporate exhibi-tion room, we serve a wide audience, including students, teenagers, young workers, etc. With our efforts, morepeople have experienced the convenience brought by technological innovation.We collaborate closely with our employees. As of 2023, female employees represent 36.9% of our workforce, whileethnic minority employees account for nearly 8%. We have instituted a performance-based bonus distribution systemthat effectively motivates both teams and individuals who demonstrate exceptional performance. To ensure open andeffective communication, we engage with employees through various channels, including annual staff meetings andcommunication sessions for new graduates. Additionally, we have established a comprehensive talent developmentframework, providing nearly 10,600 hours of training annually to facilitate employee growth.
LI YiChairman and CEO of AppotronicsWe hold a ?rm belief that Appotronics’ tech-nological innovation can profoundly bene?thumanity and foster a better future for all.
2023005 / 006
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
At the same time, we place utmost importance on the health and safety of our employees, treating safe production as ourhighest priority. We have conducted occupational health examinations and organized safety drills and educational trainingactivities to continuously improve employees’ health awareness and enhance their safety skills.In terms of corporate governance, we continuously improve our corporate governance capabilities. We have invited industryexperts to join our board of directors to further ensure that the decision-making process is scienti?c and professional. Wevalue the relationship with investors and strive to maintain open and smooth communication channels with investors. In 2023,we were selected in SSE STAR 100 Index, which marked that the Company’s accomplishments in technology innovation andcorporate governance were highly appreciated.Our ESG practices have been recognized with various honors such as Wind ESG Rating A, Top 100 ESG Practices Among ListedCompanies in China of Securities Times, and the 2023 ESG Innovative Practice Case Award of Snowball Annual Golden List.Looking ahead, as technology continues to advance, the emergence of new, high-quality productive forces is spearheadingsocietal development and transformation. These innovations are not only enhancing production ef?ciency but also deliveringunprecedented convenience and comfort to everyday life.We hold a ?rm belief that Appotronics’ technological innovation can profoundly bene?t humanity and foster a better futurefor all. We are dedicated to exerting every effort to ensure that the bene?ts of our technological advancements reach every-one and we continuously create value for our stakeholders. We aim to collaboratively forge a path towards a more prosperousand sustainable future.
LI YiApril 2024
1.0
2023007 / 008Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
About
Appotronics
Company Pro?le
Appotronics Corporation Limited (stock code: 688007.SH), established in 2006, is a globally leading supplier boastingoriginal technology and core patents for laser core devices. The Company is one of the ?rst companies listed on theStar Market, and also the ?rst stock in Guangdong Province on the STAR Market and the ?rst stock in the global laserdisplay industry.In 2007, Appotronics independently invented the ALPD? semiconductor laser light source technology, marking agroundbreaking development in the display ?eld that overcame signi?cant application bottlenecks in core laser displaydevices and imaging solutions. As this technology has become the mainstream approach within the industry, it has
Company Pro?le
AutomotiveOptics
CinemaScreening
HouseholdProjectionDedicatedDisplay
SmartRobotAR
AviationDisplay
New Light, New Life. On a global scale, in the realm of light, Appotronics, leveraging its original core technologyadvantages, is applying core devices to a wide range of new ?elds and markets, attracting customers, partners, inves-tors, and talent from around the world to move forward together. Currently, Appotronics’ semiconductor laser lightsource technology is applied in ?elds such as automotive, cinema , dedicated display, household appliances. With thecontinuous integration and development of optical, aviation, AR, human-computer interaction, and IoT technologies,Appotronics will be applicable to more and more scenarios. In the future, Appotronics will undoubtedly bring a betterlife experience for countless people worldwide.
Vision and Mission
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
been extensively applied in various sectors, including automotive, cinema, professional displays, and household appli-cations. Notably, due to rapid advancements of this technology in automotive optics, we have earned partnershipswith numerous internationally renowned automobile manufacturers. At the same time, by seamlessly integrating ourcore laser technology with cutting-edge developments in human-computer interaction, smart recognition, the Internetof Things, cloud platforms, big data, etc., the Company has proactively established strategic layouts in emerging ?eldssuch as augmented reality (AR), smart robotics, and aviation displays. This forward-thinking approach has led toin-depth collaborations with numerous globally recognized brands and institutions.Furthermore, the Company has taken the lead in the National Key Research and Development Programs. We havecollaborated with 12 research institutions, such as the Chinese Academy of Sciences, Beijing Institute of Technology,Sun Yat-Sen University, Zhejiang University, etc., to promote the advancement of national laser display technologyand jointly drive the development of the laser industry, so as to build a robust laser industry ecosystem.To date, in addition to being recognized as a national high-tech enterprise and a national intellectual property demon-stration enterprise, the Company has been listed in SSE STAR 100 Index. Furthermore, the Company has receivednumerous honors, including the China Patent Excellence Award, National Enterprise Standard “Forerunner”, andGolden Bull Science and Technology Innovation Award.Upholding the mission of “New Light, New Life”, Appotronics is committed to illuminating the world through laser lightsource!
2023
Development History
Mr. LI Yi, the founder of Appotronics,(currently acting as the Chairman andCEO of Appotronics), established Appo-tronics in Shenzhen.
2006
2007We invented the world’s ?rstALPD? semiconductor laserlight source technology.
2013We, cooperating with LG,launched the world’s ?rst100-inch laser TV.
2021We, through a cooperation agree-ment with Airbus, launched the?rst laser display prototype in thecivil aviation ?eld globally.
2015We installed the world’s ?rst ALPD?laser projector in Shenzhen. Thisprojector has been running stablyever since.
2023
We provided core devices to BMW concept vehicles that were ?rst equipped withinnovative four-window fusion display technology around the world at CES 2023.We launched the world’s ?rst automobile-grade color laser headlight at the ShanghaiInternational Automobile Industry Exhibition.We released the ?rst automobile-grade projection giant screen solution in theindustry, which was unveiled by AITO M9 equipped with core devices.
2014We, through a collaboration with ChinaFilm Equipment Co., Ltd., establishedCINEAPPO for independent innovation ofcinema projection technology in China.
2022
We passed the IATF international automotive regulationscerti?cation.We grew into a supplier of domestic andoverseas leading automobile manufacturers.We released the world’s ?rst AR optical module with aPPI exceeding 10,000.
2017
We, cooperating with Xiaomi,launched the world’s ?rst laserTV priced under RMB 10,000.
Appotronics is dedicated to bringing better life experiences for people and creating substantial long-term value forstakeholders through its core semiconductor laser light source technology.Currently, as high-quality development emerges as a consensus across society, new quality productive forces charac-terized by technological innovation are driving industrial progress and constantly shaping new dynamics and advantag-es for development, in order to provide strong support for achieving high-quality growth. Insisting on strengtheningthe protection of intellectual property rights, the Company has accelerated the commercialization speed of technolo-gy achievements, thereby leveraging new quality productive forces to enhance its high-quality development.
Honors in the ESG ?eld
High-quality Development Philosophy
2023 ESG Highlighted Performance
Top 100 ESG Practices Among Listed Companies in China by Securities Times
Wind ESG Rating A
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
2018We launched C5 projectors,the ?rst DCI-compliant laserdigital cinema projector inChina.
2019
Appotronics debuted onthe STAR Market, becom-ing one of the its ?rstcompanies.
2023
Key Data IndicatorsEconomic indicators:Unit: RMB
Unit: RMB/Person
2023 ESG Innovative Practice Case Award by Snowball Annual Golden List
Operating incomein 2023
2,213million
36.22%
Total numberof employees1419Person
Number of femaleemployees
Person
Social indicators:
Prop
ortion
of
female
36.93%
e
m
p
lo
y
e
e
s
to
total
em
p
lo
y
e
e
s
P
ro
p
o
r
tio
n
of
ethnic
m
in
o
ri
t
y
e
m
p
lo
y
e
e
s
to
total
em
p
lo
y
e
e
s
Environmental indicators:
Reduced carbondioxide emissions forcinema partnersHundred million cubicmeters
2.49
Compliance rate ofemission indicatorsin the productionprocess
100%Saved electricity forcinema partners
Hundred million kWh
5.68
8%
105.3%
million
Net pro?t attributableto shareholders of theparent company
Overall grosspro?t marginIncrease in cash ?owsfrom operating activities
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
employees whohave signed the
labor contract
100%
P
rop
o
rt
ion
of
R&D
p
e
rs
o
n
n
e
l
to
in
direct
em
p
lo
y
e
e
s
2091
Patents
1081
Patents
Total trainingduration
10600
Hours
Safety hazardelimination rate100%
R&D personnel
R&D investments
2.81
RMB hundred
million
Proportion ofR&D investments
12.69%
52.32%
10458
Responsibleprocurement100%
Public sciencepopularizationreception for visitors
Visitor
Cumulative autho-rized patentsworldwide
Cumulative autho-
rized inventionpatents worldwide
2023
Governance indicators:
Major Honors in 2023
01/202301/202302/202304/202304/202305/202305/202306/2023
06/2023
07/202307/202308/202309/202310/202310/202310/202311/202311/202312/202312/202312/202312/202312/2023
DateIssuing AuthorityAward Name
China Environmental United Certi?cation CenterGreen Leading EnterpriseChina Society of Motion Picture and Television EngineersImportant technology innovation projectChina B2B Display System Industry Alliance, ShenzhenB2B Display System Industry Association, and AVC Cloud
2022 Most Well-known Brand Award in
the Laser Projection Market
Shenzhen Administration for Market Regulation
Shenzhen CESI Information Technology Co., Ltd.
Shenzhen Standard Certi?cationRed Dot Design Award
Design Zentrum Nordrhein Westfalen
(client’s product)China Electronics Standardization Institute
Collection of Innovative Cases for theVisual Health of Display TerminalsNational Business Daily
2022 Outstanding Brand Case Studies ofListed Companies in ChinaShenzhen Automobile Electronics Industry Association
Award for Outstanding InnovativeProduct in Science and Technology
Gaogong Smart Automobile
Annual Innovative Benchmark Award for Automotive Laser
Projection Display System SolutionSecurities TimesTop 100 ESG Practices Among Listed Companies in ChinaChina National Intellectual Property AdministrationChina Patent Excellence Award
Guangdong Times Media Group2023 High-Quality Communication AwardChina Educational Equipment Industry AssociationEnterprise Credit Rating Certi?cate AAA
Caijing Magazine and Science and Technology
Innovation Data Research Center
2023 Leading Enterprise Award in Hard
Technology on the STAR MarketNational Business DailyBest Board of Directors among Listed Companies
Guangzhou Guangya Messe Frankfurt Co., Ltd.Guangdong Guangya Lighting Research Institute
Shenzhen Electronic Equipment Industry AssociationShenzhen Intelligent Equipment Industry Association
Excellent Engineering Award (Jinxiu Square Light Show in
Fuling District, Chongqing)Best Product Award ( Appotronics Engineering Projector
AL-GU22K)Best Engineering Award (Shanxi Zuoquan Cooling Tower
Light Show)Annual Best Collaborative Partner of Aladdin Lamp Award
TOP 10 of Aladdin Lamp Ten-Year Industry Classic
SelectionDangbeiDangbei 2023 Annual Trusted Cooperation PartnerNational Business Daily
Top 20 Companies Listed on the STAR Market withGlobal Technology Innovation Competitiveness
2023 “Red Sail Award” in Shenzhen
Advanced ManufactureTechnology Innovation Award (ALPD 5.0)China Audio and Video Industry Conference (AVF)
2023 ESG Innovation Practice Case AwardSnowball
The ?rst batch of enterprises participating in the“Thousand Enterprises in Hundred Cities” trademark
brand value enhancement actionChina National Intellectual Property Administration
Outstanding Contribution EntityShenzhen Education Equipment Industry Association
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Times
Number of meetings heldby the Board of Directors
Times
Number of meetings heldby the Board of Supervisors
Times
Number of general meet-
ings of shareholders
Times
Number of meetings heldby the Audit Committee
Times
Number of meetings heldby the Strategic and ESG
Committee
Times
Number of meetings held
by the Compensation andEvaluation Committee
Times
Number of meetingsheld by the Nomination
Committee
Person
Number of members ofthe Board of Directors
Person
Number of independent
directors
Person
Number of members ofthe Board of Supervisors
270+
Times
Number of investor commu-nication activities (road-shows, conference calls, etc.)
600+Participant
Number of participants ininvestor communication
activities
Proportion of female directors onthe Board of Directors25%Proportion of male directors on theBoard of Directors 75%
2.0
2023
Anchored in Technology
Propelled by Innovation
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Technological Innovation
ALPD?
5.0 super panchromatic laser technology is a unique super panchromatic laser technology created by Appotron-
ics. This innovative technology uses three-color laser light sources as the foundation, superimposed and fused withthree-color non-coherent and continuous spectrums. This unique combination of six light sources, maximizing theadvantages and minimizing the disadvantages of the six light sources, has overcome the technical limitations associat-ed with pure three-color laser or LED light sources. It avoids speckle and color cast problems typically associated withlight sources, while maintaining the high-quality color performance of pure lasers. This translates to superior user-eyecomfort and visual experience.In September 2023, Dangbei X5 Ultra 4K Super Panchromatic Laser Projector, a household smart projection productequipped with the Company’s ALPD
?
5.0 super panchromatic laser technology, was debuted globally. The successful
launch of this product marks the perfect commercialization of ALPD
?
5.0 super panchromatic laser technology in the
projection ?eld, which is of milestone signi?cance in the industry’s development history.At the same time, ALPD
?
5.0 has also successfully gone globally. The TriVision Ultra 4K Smart Projector, a new projec-
tion product produced by Nexight Inc. featuring ALPD
?
5.0 technology, has been honored with the “Innovation Award
for Computer Peripherals and Accessories” at CES 2024 upon its release.
Technology innovation, which can stimulate new industries, new models, and new dynamics, serves as the coreelement of developing new productive forces and the strong driving force for high-quality development.As one of the ?rst companies listed on the STAR Market, Appotronics regards technology innovation as the soul of theCompany’s development. We always place technology innovation at the core of overall development, maintaining highinvestment in research and development with a focus on the commercialization of our research and developmentresults. We also strengthen our efforts in intellectual property protection and improve industrialization level, leveragingour technological in?uence to bene?t the industry. In 2023, we invested RMB 281 million in our research and develop-ment.
In December 2023, AITO M9, the company’s ?rst designated automobile model, was of?cially launched. As a panoram-ic smart ?agship SUV, the AITO M9 featured the industry’s ?rst automobile-grade giant screen projection solutionprovided by Appotronics. With this solution, users can initiate the viewing mode with a single click. This projectiongiant screen boasts a 100% P3 color gamut and can be electrically raised and lowered for storage, providing a 32-inchgiant screen experience within the automotive when unfolded. It has also passed the Rhine Low Blue Light Eye Protec-tion Certi?cation and the Swiss SG5 Low Motion Sickness Golden Standard Certi?cation. With this projection giant
The ?rst automobile-grade projection giant screen in the industry
ALPD
?
5.0 super panchromatic laser technology
Accelerating the Commercialization Speed of AdvancedTechnology Achievements
AITO M9 featured the industry’s ?rst automobile-grade projection giant screen
Commercialization of Appotronics’ ALPD 5.0 Super Pan-
chromatic Laser Technology Products
screen, users can enjoy a clear, delicate, comfortable, and eye-protecting visual experience. When the projection giantscreen is raised for storage, it is hidden inside the B-pillar crossbeam, not occupying the interior space of the vehicle,thereby ensuring a panoramic sunroof for a clearer view.At the same time, thanks to the innovative X-shaped connection structure and unique motor locking method, theautomotive projector achieves extreme shock resistance, maintaining a stable image even when driving at highspeeds. The successful integration of the Company’s automotive giant screen projection solution into this automobilemodel has rede?ned the automotive entertainment. Whether embarking on long journeys or short trips, users caneffortlessly transform the spacious rear space into an esports room, a private meeting room, or an exclusive VIPlounge, thereby enjoying a more comfortable entertainment experience of a higher quality throughout the journey.
2023019 / 020
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
T?V eye protectionComfort certification
Switzerland SGSGolden anti-halation
certification
First automobile-grade projection giant screen in the industry
32-inch 100% P3 color gamutOne-tap film watching mode
Huawei Lingxi pointing remote control
R&D Investments and Talent Team BuildingR&D Investment functions as the source of technology innovation. The Company has always maintained great invest-ment in research and development, which has strongly supported the Company’s technological innovation to moveforward in big strides. In 2023, the Company invested RMB 281 million in research and development, accounting for
12.69% of our revenue.
The Company boasts a robust R&D team, with the core units led by prominent talents in the international semicon-ductor laser and automotive optics ?elds. We have successfully attracted numerous R&D professionals who graduatedfrom renowned universities both domestically and overseas. These experts span multiple disciplines, including optics,electronics, materials science, physics, mechanical design, and precision manufacturing. As of December 31, 2023,the Company has employed 428 R&D personnel, accounting for 52.32% of the total indirect employees. Among them,
29.44% of R&D personnel held master’s degrees or above. Our R&D team has provided a solid talent base for the
Company’s technology innovation.At the same time, the Company, with a focus on R&D talent training and incentives, has established a complete R&Dtalent echelon system. Through skill training plans, career development plans, and competitive salary and bene?ts, wehave attracted, retained, and motivated outstanding R&D personnel to drive the Company’s development continuous-ly. For more detailed information, please refer to Chapter Six “Fostering People-Oriented Growth Together” in thisReport.
R&D investments
Proportion of R&Dpersonnel to indirectemployees
Total number of personnelin the R&D system
Proportion of R&D personnelholding master’s degrees ordoctor’s degrees
The cultivation and management of high-value intellectual property rights are of great signi?cance to enhance the corecompetitiveness of enterprises. As the original inventor of ALPD semiconductor laser light source technology, theCompany, centering on our core technologies, continues to deploy intellectual property rights globally to safeguardthe Company’s R&D achievements and protect the Company’s intellectual property rights from infringement, therebyensuring the Company’s various production and operating activities are conducted effectively.In 2023, based on the intellectual property cultural concept of “respecting knowledge, advocating innovation, insistingon integrity and compliance, and ensuring fair competition”, the Company continued to optimize and improve theexisting intellectual property rights protection system. We revised systems related to patents and trademarks includingthe Patent Management Regulations and the Trademark Management Regulations, to provide more robust institutionalsupport for stimulating the Company’s innovation vitality. Focused on core technologies, we insisted on an intellectualproperty layout globally to safeguard the Company’s R&D achievements and protect the Company’s intellectual prop-erty rights from infringement, thereby ensuring that the Company’s various production and operating activities couldbe conducted effectively. At the same time, the Company advocated to respect others’ intellectual property rights.We implemented the intellectual property risk warning mechanism throughout the Company to avoid infringing exter-nal intellectual property rights and cooperated with an open attitude to promote the healthy development of the laserdisplay industry.As of the end of the reporting period, the Company has ?led a total of 2,862 patent applications globally and owneda total of 2,091 granted patents worldwide, including 1,081 invention patents.
Intellectual Property Rights
Case: Intellectual Property and Trade Secrets, an important lesson for new employees
The Company has provided training on intellectual property rights and trade secrets for all new employees,fostering innovation awareness among all employees and enhancing their awareness of respecting and protectingintellectual property rights.
Providing “Intellectual Property and Trade Secrets” training for new employees
281million
persons
29.44%52.32%
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
2023023 / 024
Industry ContributionAppotronics actively participates in technology innovation exhibitions and professional forums and conferences orga-nized by domestic and foreign authoritative institutions, and engages in the formulation of domestic and internationalstandards and application for international awards, in order to continuously promote the development of the semicon-ductor laser light source industry.
Highlighted Honors in 2023
National Intellectual Property Demonstration Enterprise
The 24th China Patent Excellence Award
The ?rst batch of enterprises participating in the “Thousand Enterprises in
Hundred Cities” trademark brand value enhancement actionCompilation of Industry White Paper
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Participation in the Compilation of Industry White PaperIn 2023, the Company participated in the compilation of the White Paper on the Development of Laser Display Tech-nology and Intellectual Property Rights and the 2023 White Paper on the High Quality Development of the LaserDisplay Industry, aiming to provide a reference for participants in the laser display industry in China for joint contribu-tion to the sustainable and healthy development of the laser display ecosystem.
Development of Industry StandardsAs a leading company in the ?eld of laser display technology, the Company not only plays an active role in the formu-lation of domestic and overseas industry standards, but also insists on synchronizing research and development withstandardization. Globally, as a member of the International Electrotechnical Commission (IEC), the Company contrib-utes to multiple cutting-edge technology ?elds such as laser display, automotive optics, smart cities, etc., fosteringseamless integration between domestic technologies and international standards. We have successfully participatedin the development of 10 international standards.In China, as a member of the National Standardization Management Committee, the Company has led the standard-ization work in the projection display industry, guiding and standardizing the industry’s sustainable and healthy devel-opment. At the same time, the Company actively participates in industry association activities, holding key positionssuch as vice president and chairman. This involvement fosters a culture of high-quality development and high stan-dards within the industry, contributing signi?cantly to its sustainable development. The Company has participated inthe formulation of 9 national standards, 27 industry standards, 3 local standards, 8 group standards, and 5 nationalenterprise standard forerunners.
Under the standardization strategy of “synchronization of R&D and standardization”, the Company actively exploresand practices standardization work modes and methods with the aim of satisfying customers and achieve sustainabledevelopment and ultimately establishing a mechanism for synchronization of R&D and standardization. Guided by thismechanism, the Company has effectively shortened product development cycles, reduced costs, and enhanced prod-uct quality, leading to increased customer satisfaction and faster commercialization of scienti?c research achieve-ments.
Participated in International and National Standard
Organizations
International
International Electrotechnical Commission/Audio, video andmultimedia systems and equipment/Terminals for audio, videoand data services and contentsInternational Electrotechnical Commission/Electronic displays/La-ser displays
IndustryAssociation
Chief Quality Of?cer of Guangdong Quality Inspection Associ-ation/Chief Quality Of?cer of Shenzhen Quality PromotionAssociationLaser TV Industry Branch of China Electronic Video IndustryAssociationShenzhen Excellent Performance Management PromotionAssociationGuangdong-Hong Kong-Macao Greater Bay Area StandardInnovation Allianceand More
Domestic
National Standardization Management Committee/NationalAudio, Video and Multimedia Systems and Equipment Stan-dardization Technical CommitteeNational Standardization Management Committee/NationalFlat Panel Display Device Standardization Technical Commit-tee/Laser Display Device Sub-Technical CommitteeNational Standardization Management Committee/NationalOptical Radiation Safety and Laser Equipment StandardizationTechnical Committee Non-Coherent Light Sub-Technical Com-mitteeGreen and Ef?cient Energy Consumption Products ProfessionalCommittee of China Energy Conservation Association (CECA)Shenzhen Standard Expert in Library
Certi?cate of National Enterprise Standard Forerunner
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Cultural Inheritance
In addition, in 2023, the Company’s laser projection solutions entered into more universities across China, such asChina University of Political Science and Law, Northeastern University, Jinan University, etc., to provide green, envi-ronmentally friendly, and eye-protecting modern teaching equipment for hundreds of university classrooms. TheALPD? semiconductor laser light source, features with low-carbon, environmentally friendly, and eye-protecting char-acteristics, not only brings a more convenient and green teaching environment for teachers and students, but alsosafeguards their visual health.Embracing the mission of promoting the integration of technology and culture, the Company endeavors to propagatetraditional culture through various ways such as large-scale cultural tourism, artistic performances, landscape lighting,and night light shows. aiming to narrate cultural stories through light and shadow technology.For instance, the “Mountain and Sea Map Shrouded in Mist @ China Pingtan General Mountain”, which was createdwith the assistance of multi-series engineering projectors, presents an ultra-wide-angle real-life scenery performancethat displays mountains and seas in the General Mountain scenic area and stone forests in the surrounding villagesthrough giant integrated multimedia projection spanning nearly 18,000 square meters. Through this performance,audiences are immersed in the distinctive cultures of Pingtan, such as the Austronesian, Maritime Silk Road Culture,and Coastal Defense Culture. Additionally, at Beijing Fahai Temple Mural Art Museum, digital media display methodssuch as projection are employed to present the mural content and the story behind the mural in a richer, three-dimen-sional form. Through this initiative, the publicity and protection of murals may transcend the limitations of space,time, and other objective conditions, allowing visitors to further immerse themselves in the beauty of mural art andculture.
Technology and Culture
Strengthening the social impact of products is conducive to achieving sustainable development and ful?lling socialresponsibilities for enterprises, Additionally, it can also increase the market competitiveness and commercial value ofproducts.Appotronics is dedicated to enhancing the positive social impact of our products. This commitment is re?ected in ourdesign strategies, which focus on reducing usage costs and incorporating advanced innovative features, while empha-sizing human-centered design principles, so as to better meet user needs and enhance usability and comfort. In addi-tion, the Company is not only committed to developing laser products but also actively disseminating technologicalknowledge to enable a broader audience to experience the technological charm of Appotronics.
Product Social Impact
Appotronics assists in creating the “Mountain and Sea MapShrouded in Mist@China Pingtan General Mountain”.
Appotronics assists in the light and shadow display at
the Beijing Fahai Temple Mural Art Museum
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Case 1: Appotronics supported aerospace knowledge popularization
During the 8th “Space Day of China” (April 24, 2023) science popularization event, Appotronics and ShenzhenXinyi Culture and Creativity Development Co., Ltd. jointly organized the Muxing Plan - “Viewing the World”Remote Sensing Satellite Science Popularization Art Exhibition. This exhibition was guided by the ShenzhenAssociation for Science and Technology, the Nanshan District Association for Science and Technology, andhosted by Shenzhen Aerospace Dongfanghong Satellite Co., Ltd. under the Fifth Academy of China AerospaceScience and Technology Corporation, and Hydrogen Reaction (Shenzhen) Science and Culture Development Co.,Ltd.The Company, together with various hosts, jointly created an innovative science popularization project - MuxingX Plan. With cross-border cooperation among art, technology, trends, culture, and other aspects, we held multi-ple online and of?ine combined activities in various forms, such as the unique science popularization mode of“Aerospace +Art”. During the two-month exhibition period, we received more than tens of thousands of on-sitevisitors. This exhibition has been covered in over 30 media outlets, with a total online view exceeding 100,000.Due to its popularity among the general public, we achieved signi?cant scienti?c knowledge popularizationeffect.
Muxing Plan - “Viewing the World” Remote Sensing Satellite Science Popularization Art Exhibition
Case 2: ALPD? laser projection inherited ?lm culture
In 2023, ALPD, as the core projection technology, provided projection support for multiple cultural events,including the 17th FIRST Youth Film Exhibition, the 5th Hainan Island International Film Festival, the 6th WestLake Documentary Festival, and other ?lm culture dissemination platforms, contributing to the inheritance of ?lmculture. In addition, the Company’s subsidiary CINEAPPO also provided technical support through its LED moviescreens for the ?lm promotion event at the Hengdian Film and TV Festival, always dedicating itself to the dissem-ination of ?lm culture.
CINEAPPO supported the 6th West Lake Documentary Festival
CINEAPPO supported the 5th Hainan Island International Film Festival
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Practicing ESG Through
Responsible Management
3.0
2023031 / 032Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
ESG ManagementBy embedding sustainable development into the core of our development strategy, the Company not only steadfastlymeets its responsibilities in sustainable development and high-quality development of the whole society, but alsotakes the concept of sustainable development as an important reference basis in the process of business deci-sion-making.To promote the effective implementation of ESG initiatives, the Company has established and continuously improvedthe ESG management communication and coordination framework. In Appotronics, the Chairman of the Boardassumes primary responsibility for ESG practices while the Strategic and ESG Committee undertakes research andmakes recommendations on the long-term development strategy, environment, social and governance (ESG) develop-ment and major investment decisions. The Sustainable Development Department is responsible for providing sustain-able development training within the Company and servicing and coordinating relevant departments in the ?eld ofsustainable development. The ESG Working Group, consisting of specialized contacts selected by various businessdepartments, functional departments and subsidiaries, is responsible for promoting the implementation of ESG prac-tices within these departments, and maintaining communication with internal and external stakeholders. The Boardof Directors regularly reviews the implementation of the Company’s ESG initiatives. This reportChinese versionwas approved by the Board of Directors on April 25, 2024.
Case: Upgrading the “Strategic Committee” to the “Strategic and ESG Committee”In 2023, in order to adapt to the Company’s strategic development needs, improve the investmentdecision-making process, strengthen the scienti?c nature of decision-making, enhance the ef?ciency and qualityof major investment decisions, improve the corporate governance structure, enhance the Company’s environ-mental, social, and governance performance, the Board of Directors of the Company specially established theStrategic and ESG Committee subordinate to the Board of Directors in accordance with the Company Law ofthe People’s Republic of China, the Articles of Association, and other relevant regulations. The Strategic and ESGCommittee, which is accountable to the Board of Directors, is mainly responsible for researching and providingrecommendations on the Company’s long-term development strategy, environmental, social, and governance(ESG) development, and major investment decisions.
Board of Directors (Re-view and Supervision)Strategic and ESGCommitteeChairman (First Person in Charge)
Various business departments, functional departments, and subsidiaries
Sustainable Development
Department
ESG Working Group
ESG Management Framework
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Stakeholder CommunicationAs deeply recognizes that stakeholders’ communication and participation in daily operations are crucial to the Compa-ny’s sustainable development, the Company has established a regular communication mechanism to ensure full listen-ing, communication, and response to the needs of stakeholders. At the same time, the Company continuouslyoptimizes communication methods and channels according to stakeholders’ feedback and suggestions to ensure quickresponses to and deep participation by stakeholders.
Key stakeholders
Employee
Topics concernedResponse methods
Employee rights and interestsEmployee developmentCare for employeesHealth and safety
Employees of trade unions, workers’representative council, employee handbook
Employee trainingTrade union activities
Online channels: company intranet,WeChat of?cial account, enterpriseWeChat, employee questionnaire survey
Government departmentsand regulatory agencies
Compliance operationGreen developmentEmployee rights and interests
Information disclosureInstitutional investigation
Shareholders and investors
Corporate governanceInformation transparencyBusiness ethicsCompliance management
Risk avoidanceValue creation
General meetings of shareholders andperformance presentation meetingsRegular reports and information disclosure
Roadshow surveyConference callSSE E-Interactive Platform, hotline andemail exclusively for investor communica-tion, public investor reception events, etc.
Suppliers and distributors
Responsible Supply Chain
Business ethicsMutual bene?tProduct quality and safety
Supplier audit and evaluationSupplier conference and distributor
communication activitiesWhistle-blower hotline and email
Quality management system
Customers and consumers
Research and development
innovationProduct quality and safety
Customer serviceResponsible marketingData security
Customer service hotlineOnline promotion: of?cial website,of?cial WeChat account, of?cial
blog, etc.Of?ine promotion: exhibitions,
stores, promotional activitiesCustomer satisfaction survey
Personal privacy protection
Partners (academic institutions,
research institutions, industryassociations, universities, etc.)
Research and development
innovationIntellectual property rightsCommunication and interaction
Industry forums, exchange meetings
Intellectual property protectionIndustry-university-research interaction
Participation in the development of
industry standards
General public
Public welfareEnvironmental protection
Science popularization
education
Carry out public welfare and assis-tance activities for farmersAdhere to green developmentScience popularization base foradolescents, and industry-universi-ty-research support to institutions
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Key stakeholdersTopics concernedResponse methods
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
In accordance with international and domestic policies and standards and the Company’s material topics in previousyears, Appotronics has identi?ed and determined 26 material topics after fully considering the key points concernedby internal and external stakeholders, peer benchmarking analysis, the Company’s industry characteristics and strate-gic direction. Moreover, Appotronics has also drawn a matrix analysis chart of material topics from two dimensions,namely, “Materiality to the impact on the environment, society, and corporate governance” and “Materiality to theimpact on stakeholder evaluation and decision-making”. This matrix analysis chart is comprehensively evaluated bythe Company’s ESG Working Group and ?nally approved by the Company’s Board of Directors.
Analysis of Material Topics
Impact on Stakeholders
Importance to the Company
Middle
High
Low
222123
Complianceoperation
Businessperformance
Innovation
CorporategovernanceIntellectualproperty rights
Protection ofshareholders’ rights
Business ethics
Risk management
Tax compliance
Responsiblesupply chain
Product qualityand safety
Customer service
Customer privacyprotection and datasecurity
Industry contribution
Responsible marketing
Three-wastesmanagement
Energy management
Addressingclimate change
Greenhouse gas emis-sion management
Green operation
Employee rightsand interests
Employeedevelopment
Employee healthand safety
Care foremployees
Social welfare
Rural revitalization
MiddleHighLow
Participation in ESG exchange and sharing activities
ESG ActionsSince its listing in 2019, Appotronics has been adhering to the integration of business value and social value andcontinuously improving the transparency of ESG information disclosure. It is the ?fth consecutive year for Appotronicsto voluntarily disclose independent ESG reports. During the reporting period, the Company’s ESG practices have beenrecognized with various honors such as Wind ESG Rating A, Top 100 ESG Practices Among Listed Companies in Chinaof Securities Times, and the 2023 ESG Innovative Practice Case Award of Snowball Annual Golden List. The Company’sstance on ESG disclosure as a long-term commitment will continuously ensure the transparency and public availabilityof ESG-related information.
At the same time, the Company actively participates in ESG exchange and sharing activities among enterprises tolearn from ESG practices of excellent companies, and further enhances the breadth and transparency of the Compa-ny’s ESG communication through media channels.
Disclosed independent social responsibility/ESG reports
Matrix Analysis Chart of Material Topics
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Material Topics
4.0
2023039 / 040Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Strengthening Governance
for Sustainable Operation
Corporate governance
Dimensions ofresponsibility
Governance of theGeneral Meeting ofShareholders, theBoard of Directors,
and the Board of
Supervisors
Indicators2023Unit
Number of meetings held by the
Board of DirectorsNumber of meetings held by the
Board of SupervisorsNumber of general meetings of shareholders
Number of meetings held by the
Audit CommitteeNumber of meetings of the Strategicand Investment CommitteeNumber of meetings held by the Compen-
sation and Evaluation CommitteeNumber of meetings held by the
Nomination Committee
TimeTimeTimeTimeTimeTimeTime
TimePerson
Number of members of the Board
of DirectorsProportion of male directors on the
Board of DirectorsProportion of female directors on
the Board of DirectorsNumber of investor communication activities
(roadshows, conference calls, etc.)
Number of participants in investor
communication activities
Number of independent directors
Person
%%Person
270+600+
Composition of theBoard of Directors
Investor relationship
Through continuous improvement of the operation mechanism of the Board of Directors to solidify the foundation ofcorporate governance, Appotronics continuously enhances the level of corporate governance to propel our businesstowards a trajectory of steady and expansive growth. The Company carries out its work in accordance with the provi-sions and requirements of the Company Law, the Securities Law, the Code of Corporate Governance for Listed Com-panies, and relevant laws, regulations, and normative documents of the China Securities Regulatory Commission andthe Shanghai Stock Exchange. The Board of Directors, which is the Company’s permanent decision-making and man-agement body, has four professional committees: the Audit Committee, the Strategic and ESG Committee, the Com-pensation and Evaluation Committee, and the Nomination Committee. At the same time, the Company has formeda corporate governance structure that the General Meetings of Shareholders, the Board of Directors, the Board ofSupervisors and the management have clearly de?ned duties to ful?ll their respective responsibilities while balancing
Operation of the Board of Directors
Site of the 2022 Annual General Meeting of Shareholders
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
About
Appotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
each other to promote scienti?c decision-making and coordinated operation. The Company has optimized the opera-tion mechanism including “the General Meetings of Shareholders, the Board of Directors, the Board of Supervisors andthe management” to promote continuous optimization of corporate governance ef?ciency.In 2023, in line with the Company’s development strategy and business needs, Mr. Ning Cunzheng, a leading Imagein the upstream laser industry, was appointed as the second non-independent director of the Company. Ms. ChenHan, a ?nancial and accounting expert, and Mr. Liang Huaquan, a consulting expert, were appointed as the secondindependent directors to provide recommendations for the Company’s operation and development. As of now, theCompany’s second session of the Board of Directors has consisted of 8 directors, including 3 independent directorsand 1 employee representative director. Members of the Board of Directors exercise their duties diligently and consci-entiously to ensure scienti?c decision-making.The Company’s second session of the Board of Supervisors has consisted of 3 supervisors, including 1 employee repre-sentative supervisor. The composition of the Board of Supervisors and the quali?cations of its members meet therequirements of laws and regulations, and all supervisors possess professional knowledge and work experience.In 2023, Appotronics convened a total of 2 general meetings of shareholders, 6 meetings of the Board of Directors, 5meetings of the Board of Supervisors, and 13 meetings of professional committees. These meetings addressed variousmatters including equity incentives, pro?t distribution, regular reports, appointment and supplementation of directors,and revisions to the Articles of Association and related governance systems. Appotronics consistently standardizes theoperation of the General Meeting of Shareholders, the Board of Directors, and the Board of Supervisors to improvethe internal governance level.
Number of general meetingsof shareholders
Number of meetings held bythe Board of Directors
Number of meetings heldby the Board of Supervisors
Number of meetings ofprofessional committees
13timestimestimestimes
General Meeting ofShareholders
Board of Supervisors
Board of Directors
AuditCommitteeNominationCommitteeCompensation andEvaluation CommitteeStrategic and ESG
Committee
Investor Relationship Management
In 2023, Appotronics continued to strengthen communication and interaction with investors to create more value forthem and establish a good capital market image. In 2023, Appotronics held a total of 270+ roadshows in various forms,including roadshows, reverse roadshows, online and of?ine strategy meetings, investor open days (excluding briefphone calls), contacting more than 600 buy-side investors.At the same time, the Company places a strong emphasis on improving its information disclosure management prac-tices. Adhering to the requirements of relevant laws, regulations, and the Information Disclosure Management System,we are committed to truthful, accurate, complete, timely, fair and active disclosure of information. This commitmentis demonstrated through the voluntary disclosure of information multiple times, including the publication of ESGreports and Letter to Shareholders. These materials may serve to guide investors in focusing on corporate responsibilityand long-term development strategies. Additionally, by disclosing key partnerships with renowned domestic and over-seas automobile manufacturers, we provide timely updates on the progress of the Company’s automotive business,assisting investors in making informed decisions. Furthermore, we recognize the importance of international transpar-ency and aim to facilitate this by releasing English versions of our regular reports, ensuring that overseas investors haveaccess to comprehensive information about the Company’s development trajectory.Moreover, as a security with medium market value and good liquidity in the STAR Market, the Company has beensuccessfully included in SSE STAR 100 Index. This recognition signi?es that the Company is acknowledged by authori-
Case: Enriching channels and methods of communication with minority shareholders
In April 2023, the Company participated in the 20th Shanghai International Automobile Industry Exhibition forthe ?rst time. The Company estimated that the exhibition, as a top public exhibition in the automotive industry,would attract many institutional investors and minority shareholders. Therefore, we arranged a dedicated IRteam to receive minority shareholders at the exhibition site, and equipped with professional guiders to leadinvestors to intuitively experience the Company’s new products and new business.
Investor On-site Research and Communication at Shanghai International Automobile Industry Exhibition
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
ties for its high innovation, growth potential, and liquidity. In 2023, the Company held a total of 3 performancepresentation meetings, answering over 900 IR hotline calls, proactively disclosing 7 research information records andregularly responding to over 160 investor inquiries on public communication platforms.
roadshows invarious forms
270+
contactingbuy-sideinvestors600+
performancepresentationmeetings
answering IRhotline calls900+
proactively disclosingresearch informationrecords
responding investorinquiries on publiccommunicationplatforms160+
time
Integrity and Compliance
Appotronics adheres to the principle of integrity operation and strengthens internal control management to continu-ously improve compliance construction and operational capabilities, maintaining a zero-tolerance attitude towardsany form of corruption, bribery, extortion, and unfair competition.
Case: Integrity Publicity for New Employees
The Company has incorporated integrity publicity into the training for new employees, mainly introducing theCompany’s integrity governance goals, integrity system construction, integrity clauses interpretation, self-decla-ration and reporting channels, etc., so as to ensure that employees have a thorough understanding of the Com-pany’s integrity policies.
Top-tiermanagement
The Company advocates a value system of integrity and honesty fromtop to bottom, resolutely combating fraudulent activities with a zero-tol-erance attitude. The Board of Directors is responsible for overall opera-tional risk supervision and management, while the internal audits areresponsible for detailed implementation of business ethics and integritygovernance to ensure the Company’s integrity and compliance operation.
Cultural Awareness
The Company has maintained enhanced construction of a transparentand honest internal and external environment. Internally, we enhanceemployees’ awareness of integrity and compliance through various formssuch as integrity quarterly publications, staff training, and integritypublicity. Externally, we assist in building a transparent and honest busi-ness ecosystem through channels such as the execution of integrityagreements, holiday greetings regarding integrity, and of?ine visits.The Company’s audit department continues to carry out integrity publici-ty activities, such as integrating clauses of “Top Prohibitions for Employ-ee Action” and disseminating relative cases relying on the Integrity Appo-tronics Quarterly, and enhancing employees’ legal and complianceawareness through the form of “interpreting the law with cases”. At thesame time, the department also conducts integrity publicity and newemployee training according to the business needs to promote the integ-rity values of Appotronics.
Partial screenshots of the Integrity Appotronics Quarterly
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
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AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Integrity publicity induction training for new employees
Maintainingindependence
The Audit Department, as reporting directly to the Audit Committee ofthe Board of Directors, is of a high degree of independence. It adoptsthe project-based approach to conduct business process audits andspecial investigations, cyclically assessing and identifying key businessprocess risks to drive closed-loop problem recti?cation, thereby achievingcontinuous optimization and improvement of business processes.In addition, through special internal control governance, we comprehen-sively review issues in the business model, operational process, and insti-tutional levels, addressing internal control de?ciencies from the rootcause, so as to enhance the effectiveness of internal controls. At thesame time, we dynamically identify internal control execution and designdefects through daily business process audits to promote continuousimprovement of the Company’s internal control.
2023047 / 048
To build the “Clean Governance System: Resisting Corruption, Unwilling to Corrupt, and Uncompromising AgainstCorruption”, Appotronics has successively issued documents such as the Anti-Corruption Management System, theCon?ict of Interest System, and the Top Prohibitions for Employee Action. At the same time, the Company publicizesreporting channels through the of?cial website, integrity agreements, holiday greeting emails, OA platform, and othermeans, to encourage all partners and employees to report corrupt behaviors. The Company arranges dedicatedpersonnel to follow up and manage reported clues, strictly maintaining con?dentiality throughout the process toprotect the legitimate rights and interests of the whistleblowers. For improper behaviors, the Company adheres to theprinciple of “reporting must be investigated, and investigation must be completed”, and may resort to judicial author-ities for serious legal accountability when necessary.
Anti-corruption
The speci?c reporting system and processing mechanism are as follows:
Whistle-blowing
hotlineWhistle-blowing
jubao.audit@appotronics.cn
Whistle-blowing
reward
For individuals who actively report and cooperate with the investigation and veri?-cation, Appotronics will reward the whistleblowers with 30% to 50% of the recov-ered amounts (up to RMB 1 million in maximum), and the whistleblowers will beexempt from punishment and given priority cooperation opportunities under thesame conditions.ProtectionMeasures
For whistle-blowing clues, the Company will assign dedicated personnel to followup and manage, and strictly maintain con?dentiality to protect the legitimate rightsand interests of the Whistleblowers.
Integrity whistle-blowing information published on the Company’s of?cial website
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
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AboutAppotronics
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Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
+86 13620926735
Safety Management
Appotronics attaches great importance to the construction of information security systems and continuous monitoringin the actual implementation process. We have formulated a complete information security system, regulations, oper-ation guidelines, and related control measures to ensure that our information security practices have regulations tofollow and we can safeguard the con?dentiality, integrity, and availability of the Company’s’ information. The systemand planning cover the strategy and control principles of information security and operation guidelines and controlstandards for the entire life cycle of information processing. It includes all information protection and security mea-sures related to employees’ work, providing speci?c and clear guidance and standards for employees to ensure thattheir behavior complies with the Company’s information security requirements. In addition to formulating completesystems, procedures, and norms, the Company has also carried out various technological explorations and practicesin the daily execution and monitoring of information security, such as multi-factor authentication, bastion host,centralized log auditing and monitoring, etc.With a complete information security system and normalized control, the Company’s con?dential information isprotected effectively with data integrity maintained, so as to prevent internal and external threats from causing harmto the organization. The reliability, sustainability and reputation of the Company’s operations have been enhancedthrough effective information security measures.
Information Security Construction
Appotronics continuously strengthens the network security construction through measures such as network isolation,internal and external ?rewalls, transmission encryption, and access authorization, ensuring information security andstable network operation. The Company provides centralized ?le storage and backup services for various core depart-ments (?nance, R&D, sales, etc.), ensuring the security of core information assets and avoiding the risk of loss ofinformation assets due to hacker attacks or loss of employee laptops. The company has installed client and serverantivirus, encryption, and security audit software to enhance data security measures for personal computers andservers.
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth Together
Strengthening Governancefor Sustainable Operation
About This Report
Information Security Prevention Technology Architecture
Information Security Technology
Data security
Data integrity protectionData storage media security
Applicationaccess control
Anti-tampering
technology
Datacon?dentiality
protectionUsername
andpassword
Digitalcerti?cate CA
Username
andpassword
Digitalcerti?cate CAUsername
andpassword
Digitalcerti?cate CA
One-timepasswordBiometric feature
Building securityServer room security
Media securityIC card
Surveillance camerasPhysical environment
monitoring
Disaster recovery centerOf?ce center
Uni?ed identity management (user, directory,password, credential management)Uni?ed authentication management (registration, authentica-tion, authorization, session, logout)
Security operations center(logs, audits, correlation analysis, results presentation)
Identity authenticationAccess control
Contentsecurity
Monitoring and
audit
Backup recovery
Data backupData recovery
Local data and log
backupRemote data and log
backupData backup of disk
displaysLink and device
redundancy
Backup andreplication ofapplications and
databases
Application
security
Systemsecurity
Networksecurity
Physicalsecurity
Applicationbuilt-in authoriza-tion management
Data security
auditWebprotectiontechnology
WebprotectiontechnologyDatabase security
protection
Application systemlog monitoringEncryptedSSL/VPNApplicationaccess control
Host maliciouscode preventionFile encryption
technology
Host intrusionprevention system
(HIPS)System securityaccess control
Host securityscanning forreinforcementSystem integrity
auditSystem security
auditSecuritydomain
Accesscontrol
listFirewall
Network
accesscontrolVPN
Uni?edthreatmanage-
ment
Trans-missionsecurity
DDOSprotec-
tionVOIPprotec-
tiontechnol-
ogy
An-ti-spamsystemAnti-Vi-
rusgatewayNetworkintrusionpreven-
tionsystem(NIPS)
Networkintrusion
detec-
tionProtocolanalysisNetworksecurityscanningNetworkbehaviormonitor-
ing
Networkequipmentmonitoring
Appotronics continues to improve and enhance digital construction. In 2023, we promoted the improvement of ware-house WMS and optimized warehouse inbound and outbound process management to enhance warehouse operationef?ciency. Through these initiatives, we have achieved real-time digital monitoring of inventories and accurate displayof material location, quantity, and status. By integrating sales demand from the supply chain with production planningand supplier delivery processes in digital form, we can enhance the alignment between sales forecasts and supplywhile effectively controlling inventory levels. This streamlined approach ultimately leads to improved order deliveryachievement rates. The Company has established a relatively complete digital system architecture and constructeddigital platforms such as ERP, customer relationship management system, research and development production cyclemanagement system, after-sales service information system, supply chain relationship management system, projectmanagement, etc. Through system integration and data interoperability, we have greatly improved internal operationsand collaboration ef?ciency with external customers.
Digital Construction
Comprehensive risk management and continuously strengthened internal control execution are the inevitable require-ments for listed companies to enhance their operational capabilities. With enhanced internal control, Appotronics,guided by risk management, helps improve the internal system construction of the supply chain by connecting syner-gistic interfaces with other departments internally and strengthening the communication and linkage with suppliers,customers, and the supply chain externally. Through comprehensive traction from upstream to downstream and frontto back end, we, with a focus on the Company’s internal control, have guided the supply chain department to stream-line key business processes such as the overall material procurement review process, outsourced material outsourcingprocess, and key material supplier designation process, etc., to comprehensively upgrade and restructure the supplychain system.In terms of ?nancial risk control, the Company adopts several proactive measures. These include the regular release ofaccounts receivable and accounts payable reports each month to identify and address risks while enhancing businessfollow-up. Additionally, inventory reports are disseminated to highlight areas requiring attention from business depart-ments, with a focus on inventory quality. The Company also issues monthly overdue work orders to prompt the supplychain to track and address them promptly. Furthermore, business division data are announced regarding inventorywarnings and in-transit product warnings to encourage frontline teams to expedite the consumption of materials near-ing expiration, thereby guiding the acceleration of business ef?ciency from a ?nancial perspective.
Risk Management
Appotronics is committed to protecting customers’ privacy. In strict accordance with relevant laws and regulations,we encrypt all customer privacy-related information and adopt secure and reliable storage methods to prevent infor-mation leakage. At the same time, we strictly train and manage internal employees to ensure that they fully under-stand the importance of customer privacy and possess relevant protection skills. The Company only allows authorizedpersonnel to access customer privacy information to ensure the security of customer privacy.
Customer Information Security
Case 1: Automotive optics product line obtained informationsecurity certi?cateAppotronics places great importance on safeguarding information security,especially in the automotive optics product line. In 2022, we established theISO27001 information security management system and obtained the certi?-cation. After a year of operation, thanks to the robust processes, we earnedthe trust and recognition of automotive optics customers. Meanwhile, wealso provided relevant information security requirements and measures tocustomers during the factory audit process. The Company’s professionalstrength and commitment in the ?eld of information security can provideusers with more reliable and secure products and services.
ISO27001 Information SecurityManagement System Certi?cation
Case 2: TISAX certi?cation project for automotive optics
To further enhance the construction of information security processes andimprove employees’ information security behavior to ensure that sensitiveinformation of the Company and customers is not leaked, Appotronicsinitiated the TISAX AL3 certi?cation project in November 2023. TISAX certi?-cation is a recognition meeting the requirements of the European Automo-bile Manufacturers Association(ACEA) and the German Association of theAutomotive Industry (VDA). By initiating the TISAX certi?cation project, weensure that the Company has met industry standards and satis?ed compli-ance requirements in terms of its information security management system,thereby enhancing the trust relationship between the Company and itspartners, customers and suppliers to maintain the Company’s competitiveadvantage.
Case 3: Continuous improvement of user privacy protection by FormovieIn strict accordance with the Personal Information Protection Law, the Company’s subsidiary Formovie has formu-lated certain regulatory mechanisms and process documents around Feng OS user privacy protection, such as theFormovie Information (Data) Management Process System and the Formovie Information Security ManagementSpeci?cation and Con?dentiality System. It has also developed a new version of the user privacy agreement toensure to lawful and compliant collection of user data. At the same time, Formovie actively conducts training onthe protection of user personal information, continuously enhancing employees’ awareness of information protec-tion to complete the 2023 user privacy compliance check under the Personal Information Protection Law.
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Quality Safeguarding in
New Manufacturing Endeavors
5.0
2023053 / 054Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Quality ManagementProduct quality is the cornerstone of market success and the key to winning customer trust.Appotronics’ quality management always adheres to the goal of high standards, high quality and high ef?ciency. TheCompany passed the ISO9001 quality management system certi?cation in the same year of establishment and intro-duced the IATF 16949 quality management system in 2021. Internally, we formulated a series of normative documentssuch as the APQP Management Regulations, the Certi?ed Product Consistency Control Regulations, and the ProcessAbnormal Handling Procedures to guide quality management reinforcement and promote the establishment of qualityculture concepts, system & process, laboratory system, and quality monitoring system, thereby achieving the wholeprocess quality management. The of?cial shipment of vehicle products in 2023 will drive the Company’s managementlevel and quality requirements to a new stage.The Company is committed to forming the Appotronics-style “zero defect” quality culture, and achieving visualizationin the whole process system including production monitoring visualization, aging smart visualization, and 5S visualiza-tion, so as to conduct quality monitoring throughout every link of production management. With strengthened qualitymanagement, the Company’s products can meet multi-line display solution needs from high-end core devices, auto-motive solutions, laser cinema projection equipment, large venue laser projectors, laser business education products,household laser intelligent projection, etc. Therefore, we are highly recognized by industry-leading users such asXiaomi, Barco, CFGC, etc. and international automotive giants. At the same time, with emphasis on product qualitytraining, the Company has achieved a 100% coverage rate of product quality training for all employees.
ISO9001 Quality Management System Certi?cation
Quality training
Case: Continuous improvement of product quality
In order to improve product quality, the Company’s PQE department has established a regular Top problemthemed cyclic promotion mechanism for continuous improvement and adopted measures such as pre-emptiveintervention prevention and early countermeasures against risks for the planned improvement of the quality ofnew products, resulting in a steady increase in the Company’s product quali?cation rate.
IndicatorsUnit202120222023
Product quali?cation rate%98.81%98.82%99.25%Number of product recallsTime000Product quality training coverage%100100100
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er Future
Quality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Strict Quality Control in DQA Laboratory
In order to provide the general public with safer and more assured products with better quality, Appotronics hasestablished a DQA laboratory, which is fully responsible for product design quality assurance and product qualitycontrol in strict accordance with standard requirements.The DQA Laboratory operates in accordance with the ISO/IEC 17025 international laboratory management system. Ithas been accredited by the China National Accreditation Service for Conformity Assessment (CNAS) to issue CNASreports that are credible to the public and recognized by the international community. The laboratory is capable oftesting the reliability, safety, electrical performance, and functionality of consumer electronic products and vehicleelectronic products. The laboratory has established a safety testing laboratory, which introduces international stan-dards (such as IEC60950-1, IEC62368-1, and a series of other standards) to apply global safety standards to productdesign.
International
International
UL Solutions is themost authoritativesafety testing andcerti?cation agencyin the United Statesand a leader in theglobal safety indus-try. It engages insafety testing andcerti?cation busi-nesses all over theworld. Products cer-ti?ed by UL havehigh credibility withgovernment agen-cies and consumergroups.
WTDPLaboratory
WTDP&CTF2
IEC 60950-1:2005IEC 60065-1:2014UL/CSA 60950-1UL/CSA 60065-1IEC 60950-1:2005IEC 62368-1:2014IEC 62368-1:2018IEC 60950-1:2005UL/CSA 60950-1UL/CSA 62368-1EN 60950-1:2006EN 62368-1:2014EN 62368-1:2018
Laboratory certi?cate
ITS, as an interna-tional authoritativetesting institutionand third-partynotary public of?ce,is one of the largestconsumer goodstesting, inspection,and certi?cationinstitutions in theworld, renownedglobally for its pro-fessionalism, accu-racy, and integrity.
SATELLITELaboratory
Level2&CTF2As above
InternationalElectrotechnicalCommission (IEC) is
one of the threemajor internationalstandard organiza-
tions.Listed on the IECof?cial website
CTF2As above
National
China NationalAccreditation Servicefor ConformityAssessmentCNAS Laboratory/
Testingstandards relatedto projectors
IntertekAppotronics -ITSStrategicCooperation
Laboratory
//
T?V S?D is one ofthe world’s leadingtesting and certi?ca-tion service providersthat stands forsafety and quality inalmost all areas ofbusiness and life.The T?V logo on aproduct is equivalentto a safety and qual-ity credit card andcan serve as a pass-port to enter theinternational market.UL, ITS, and T?V arethe top 3 authorita-tive agencies recog-nized in North Amer-ica. passport. UL,ITS, and T?V are thetop 3 authoritativeagencies in NorthAmerica in terms ofrecognition.
T?V S?DAuthorizedLaboratory
Level2&CTF2
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er Future
Quality Safeguarding in New
Manufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
International
/National
Authorized andaccreditedlaboratory name
Pro?le of theauthorized andaccredited agency
Authorization
level
Authorizationstandard
Certi?cate/Plaque
International
/National
Authorized and
accreditedlaboratory name
Pro?le of theauthorized andaccredited agency
Authorization
level
Authorizationstandard
Certi?cate/Plaque
IEC 60950-1:2005IEC 60065-1:2014UL/CSA 60950-1UL/CSA 60065-1IEC 60950-1:2005IEC 62368-1:2014IEC 62368-1:2018IEC 60950-1:2005UL/CSA 60950-1UL/CSA 62368-1EN 60950-1:2006EN 62368-1:2014EN 62368-1:2018
International
International
International
Compliance DesignAppotronics designs products in compliance with global market access requirements involving strict control of productlaser radiation, optical biological safety, electrical safety, electromagnetic compatibility, hazardous substances,energy ef?ciency, and environmental protection, to provide society with safe and reliable high-quality products.Products sold domestically have passed the national mandatory CCC certi?cation, national radio transmission equip-ment model approval certi?cation, voluntary national energy conservation and environmental protection CECP certi?-cation, environmental label certi?cation, as well as product-speci?c certi?cations, such as low blue light certi?cation,visual health certi?cation, and low ?icker-gold standard certi?cation, etc. Products sold overseas have obtained thenecessary certi?cations in accordance with the access requirements of various countries and regions, including but notlimited to CB, cULus, cETLus, cTUVus, FCC ID, IC ID, CE RED, KC, MSIP, FDA registration, etc.In the product development and design stage, production process, and packaging and transportation stage, the Com-pany strictly complies with green environmental protection requirements for management and control, such as the EURoHS 2.0 Directive on Restriction of the Use of certain Hazardous Substances in Electrical and Electronic Equipment,the EU Regulation on the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), the EU Direc-tive on Waste from Electrical and Electronic Equipment (WEEE), and the European Parliament and Council Directive94/62/EC on Packaging and Packaging Waste (EU Packaging Directive 94/62/EC) as well as other international regula-tions/directives. The Company makes environmental self-commitments and reports/registers to relevant departments.
Quality Honors
The Company has been awarded the “Category A Enterprise” by the China Quality Certi?cation Center (CQC), whichhas been valid to date. This honor signi?es that the Company’s digital quality management over the past ?ve yearshas been certi?ed by the national authority. The acquisition and maintenance of this certi?cation honor that Appo-tronics has achieved industry-leading levels in quality management, production processes, and environmental stan-dards.
Display of some authentication certi?cates
Case 1: Vehicle products guarantee high quality as they have undergone multiple testsbefore leaving the factoryThe Company’s core devices of vehicle light generators are featured in high luminous ef?cacy, wide color gamut,small size and strong stability. Our vehicle products have gained widespread recognition for their superior quality.They have successfully passed a series of rigorous tests in the automotive industry, including steady-statehumidity and heat, temperature life, thermal fatigue combined vibration, mechanical shock, dust, solar radia-tion, salt spray, VOC, and odor tests. Throughout this process, we adhere strictly to the IATF16949 system andcustomer requirements.
Case 2: Formovie maintains high quality requirements for productsThe Company’s subsidiary Formovie maintains high-quality requirements for products, implementing strictcompliance management, quality control, and supervision in every aspect covering R&D design, material supply,production manufacturing, sales, logistics distribution and after-sales service, so as to ensure product stabilityand reliability. Formovie has passed the annual review by SGS and obtained the annual update of ISO9001 qualitymanagement system certi?cate.
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Responsible MarketingResponsible marketing is one of the key factors for enterprises to achieve long-term development. Through responsiblemarketing practices, enterprises can establish mutual trust and closer cooperation with customers while creating busi-ness value.Appotronics is committed to eliminating information barriers with customers through diverse ways, and helpingcustomers advance businesses more smoothly and ef?ciently through responsible marketing. By organizing specialcommunication activities such as new product appraisal events, core partner summits, seminars, and sharing sessions,we provide personalized customer support to deliver detailed professional product information and reliable technicalsupport.
Case 2: “123” customer principles for Appotronics core household devices divisionThe Company’s core household devices business division follows the “123” customer principles. To explainspeci?cally, “One-stop” entails creating one-stop product and technical service capabilities. “Two prohibitions”involve refraining from direct con?icts with customers, emphasizing respect, and avoiding belittling or neglectingany customers. “Three advocates” promote sales personnel to proactively understand customer needs, encour-age product personnel to plan products for customers and provide professional advice, and urge employees totake initiative and ful?ll tasks thoroughly without cutting corners or shirking responsibility.In September 2023, Appotronics attended the Dangbei new product launch event as a strategic partner anddelivered a keynote speech. At this event, Appotronics was honored with the “Dangbei 2023 Annual TrustedCooperation Partner” award, re?ecting high recognition from our customers. At the same time, the Company’score household devices business division actively participated in international exhibitions to engage inface-to-face communication with overseas customers.
Dangbei 2023 Annual Trusted Cooperation PartnerCommunicating with overseas customers
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Case 1: Customized customer event for Appotronics’ professional displayIn “Appotronics Torch” series of campaigns customized by the Company’s professional display team based onthe characteristics of the large venue business line, we built a communication bridge through case sharing andinvited customers to experience the Company’s product effects comprehensively and understand the Compa-ny’s professional display team to boost their con?dence in the Company’s brand. Through case demonstrationsand guest sharing, we not only inspired and enlightened relevant practitioners but also empowered partners toachieve circle expansion and communication in different ?elds. Through “Appotronics Friends Meeting”campaigns in the business education line, we, relying on platforms such as the China Educational TechnologyAssociation/Modern Educational Technology Magazine, collaborated with other vendors to form the smart class-room solution. Under this solution, we invited experts and teachers to conduct academic discussions in order toin?uence precise customers through roadshows. Through the event held in Wuhan in March 2023, and subse-quent events in Jinan, Xi’an, and Hefei, we have visited 128 colleges and universities.
Customer Appraisal Event
Core Partner Summit
Customer ServiceFocusing on customer needs and experiences, Appotronics is committed to achieving ?awless product quality andcomplaint-free customer service.Upholding the service concept of “Service creates value while professionalism shapes the future” and the service tenetof “Attentive to customers for heartfelt services”, the Company has established a perfect after-sales service system,which is embodied by the fact that we passed the “Five-star Service Certi?cation” in GBT27922-2011 EvaluationSystem for After-sales Service of Commodity in 2019. In 2023, the Company provided services to customers on 30,554occasions, completed core agent training empowerment for ?ve major product lines, and inspected over 5,000machines cumulatively. Our rapid service response and high-quality service delivery have garnered widespread praisefrom our customers.The Company has established an after-sales service network covering mainstream e-commerce platforms, combiningonline and of?ine services, and integrating pre-sales and after-sales services. In terms of after-sales service, the Com-pany aims to improve service timeliness and customer satisfaction through informatization, specialization, and local-ization.
Responsible Supply ChainAppotronics is committed to building a responsible supply chain that ensures suppliers comply with various regulationson ethics, law, environment, health, and safety to provide high-quality, reliable, and sustainable products. We insiston mutual trust and mutual bene?t with suppliers during the cooperation process.
The Company has providedservices to a cumulativetotal customers30554Person
The Company
inspected
5000+
Five-star ServiceCerti?cation
Case 2: Formovie improves service qualityThe Company’s subsidiary Formovie has established a standardized training ledger system. It sets up dedicatedtrainers for online and of?ine sales personnel and distributors and establishes an annual training plan with trainingcourses and programs developed quarterly. In addition, it also arranges pre-job training and regular on-the-jobrefresher training for new employees. Trainees can only take up their positions after passing assessments. Addi-tionally, through timely follow-ups with employees and distributors after training, the sales department continu-ously improves Formovie’s training plan and courses to improve the professional skills and knowledge reserves ofsales personnel, thereby ensuring responsible sales of products.In December 2023, the Chongqing Administration for Market Regulation and Chongqing Consumer Rights Protec-tion Committee announced to society the list of “2023 Chongqing Assured Consumption Demonstration Entity”,in which 472 entities including Formoive (Chongqing) Innovative Technology Co., Ltd. were awarded with thetitle of “2023 Assured Consumption Demonstration Entity”.
Formovie was awarded the title of “2023 Assured Consumption Demonstration Entity” by Chongqing City.
Case 1: High ef?ciency service from CINEAPPO 400 hotlineIn 2023, the Company’s subsidiary CINEAPPO provided high-ef?ciency service to customers through its 400 andonline hotlines. The 400 hotline received over 19,000 calls, and the online customer service team served morethan 5,500 customers, handling over 30,000 messages and processing more than 20,000 recharge orders. Byprioritizing ef?cient assistance to customers in resolving issues through phone and online customer service, wewere able to prevent unnecessary costs associated with large venue technician repairs.
calls were answeredthrough the 400hotline19000+
customers were served
by online customer
service team
5500+
recharge orders were
processed in total
20000+
messages werehandled in total30000+
The Company attaches great importance to cooperation with suppliers and strategic partners. We actively implementintegrity procurement and responsible procurement by concluding Partner Integrity Agreement with suppliers, priori-tizing the purchase of environmentally friendly raw materials and actively laying out core areas and links in the indus-
Supplier Management
machines
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Case: Supplier SRM operation training
In 2023, in order to enhance business communication and information transmission with suppliers, and achieveef?cient response and standardized processes, the Company organized operational training on SRM manage-ment collaboration systems for suppliers in various business scenarios. Through this training, more suppliers wereable to join the Company’s collaborative system, resulting in reduced communication costs between both partiesand clearer and more ef?cient business processes. There were approximately 200 suppliers participating in thistraining, and this kind of training will be promoted to more suppliers in the future.
Appotronics encourages, assists, and supports suppliers in continuously improving their social and environmentalresponsibilities, including improving energy ef?ciency, reducing carbon emissions, minimizing waste generation,promoting sustainable procurement, protecting labor rights, etc., to enhance supply chain transparency. The Companycollaborates with suppliers to develop, implement, and monitor improvement plans to ensure the actual effectivenessof the improvements.The Company has established the Supplier Environmental Requirement Control Regulations to promote the improve-ment of suppliers’ environmental performance to safeguard the interests of clients and customers, thereby expandingthe Company’s environmental policy in?uence to jointly promote social environmental activities. Moreover, the Com-pany has concluded the Supplier Social Responsibility Commitment and the Warranty for Restricted Use and Controlof Environmental Pollutants with suppliers to ensure that suppliers comply with the commitments in these agreementsand are held accountable for violations with misconduct corrected. Moreover, the Company has also released theAppotronics Supplier Social Responsibility Code of Conduct with comprehensive reference to systems.In addition, the Company has established a mechanism for evaluating quali?ed suppliers, which evaluates supplierperformance based on relevant factors, and categorizes suppliers into excellent suppliers, quali?ed suppliers and
Green Transformation of the Supply Chain
Case: Release of the Appotronics Supplier Social Responsibility Code of Conduct
To further promote responsible supply chaindevelopment, in 2023, the Company detailed andreleased the Appotronics Supplier Social Respon-sibility Code of Conduct, which clearly de?nedsocial responsibility requirements for supply chainpartners in ?ve major areas: business ethics, laborrights, health and safety, environmental protec-tion, and management systems. The Companydisseminated to suppliers our requirements forand high attention to social responsibility throughvarious methods such as of?cial websiteannouncements, emails, and online exchanges.
Of?cial website announcement
Con?ict MineralsAdhering to responsible mineral sourcing, Appotronics signs a Commit-ment Letter for Not Using Con?ict Minerals with supplier partners toensure that the procurement of raw materials for all products in its supplychain does not involve minerals originating from con?ict-affected areas inaccordance with the Due Diligence Guidance for Responsible SupplyChains of Minerals from Con?ict-Affected and High-Risk Areas of theOrganization for Economic Cooperation and Development (OECD).The Company declares strict compliance with relevant regulations ofinternational organizations and industries, not accepting or using con?ictminerals, and requiring all suppliers to trace the sources and supply chainof gold (Au), tantalum (Ta), tin (Sn), tungsten (W), cobalt (Co), andmica in their products through due diligence investigations. Through thisinitiative, we can reasonably ensure that their sources comply with theDue Diligence Guidance for Responsible Supply Chains of Minerals fromCon?ict-Affected and High-Risk Areas of OECD or equivalent and recog-nized due diligence frameworks.
Commitment Letter for Not
Using Con?ict Minerals
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er Future
Quality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
trial chain to regard them as an important part of the Company’s production and operation. The Company continu-ously strengthens the management of suppliers’ corporate responsibility and standardizes procurement transactionsto boost the sustainable competitiveness of the supply chain. We work together with suppliers for common develop-ment to jointly build a responsible value chain.In 2023, Appotronics embarked on a vigorous pursuit in the automotive sector, where demands and regulations forautomotive suppliers became even more stringent than previous operations By improving management systems, intro-ducing new supplier management systems, and equipping professional personnel for various vehicle product modules,the Company has gained recognition from many domestic and overseas vehicle customers for the Appotronics supplychain management system and has commenced manufacturing and delivering vehicle products. Moving into 2024,Appotronics solidi?es its foundations and advances in the automotive domain, steadfastly establishing and enhancinga competitive supply chain.
suppliers to be improved. Speci?cally, the Company has requirements for suppliers regarding environmental risks.Suppliers with low environmental risk levels or a score of less than 65% in the “Environmental Requirements” areconsidered unquali?ed even if their total score is equal to or greater than 60.
Fostering People-Oriented
Growth Together
6.0
2023067 / 068Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Employee Rights and InterestsAs actively advocating the value concept of “people-oriented”, Appotronics respects and protects the rights andinterests of employees, and formulates comprehensive human resources management norms to safeguard the rightsand interests of employees. With great importance to employee welfare bene?ts, we provide employees with compet-itive salaries and bene?ts and high-quality training opportunities. We strive to provide a humane working environmentfor employees to ensure the improvement of their work and life quality, and continuously deepen communicationmechanisms for creating an equal, open, and fair working and development environment for employees.As of December 31, 2023, the Company has owned 1,419 employees, including 524 female employees, accounting for
36.9%; and the proportion of ethnic minority employees has accounted for approximately 8%.
At the same time, Appotronics established the trade union in 2017 to elect worker representatives and establish theWorkers’ Congress. Policies and systems related to employee welfare bene?ts, labor rights, personal safety, and physi-cal and mental health are required to be decided democratically by the Workers’ Congress. The Workers’ Congress ofthe Company has paid high attention to providing employees with more competitive salaries and bene?ts, high-qualitytraining opportunities and a humane working environment, in order to improve employees’ work and life quality asmuch as practicable. In addition, the Workers’ Congress is also an important channel for the Company to communicatewith employees and listen to their voices.
Pro
p
or
t
ion
o
f
fema
le
e
m
p
l
o
y
e
e
s
36.9%
Propo
rt
io
n
o
f
e
t
h
n
i
c
m
ino
rit
y
e
m
p
l
o
y
e
e
s
8%
Equal Employment
Appotronics utilizes various diversi?ed recruitment channels to widely recruit talents to build a dynamic team. TheCompany has integrated the concept of equality and non-discrimination into different HR stages, including employeerecruitment, onboarding, promotion and departure, and ?rmly opposes any form of employment discrimination, whichhas led to a more scienti?c and reasonable employment mechanism. The Company provides inclusive and fair develop-ment and promotion opportunities for employees of different genders, nationalities, ages, races, ethnicities, religiousbeliefs, disabilities, sexual orientations, or household conditions. In addition, the Company explicitly prohibits theemployment of child labor. During the reporting period, the Company achieved a 100% signing rate of employmentcontracts.The Company is subject to the principles of fairness and impartiality, talent-position matching, and avoidance. Interms of fairness and impartiality, the Company adheres to the principles of open recruitment, equal competition,selection of the best candidates, and internal promotion before external recruitment, avoiding discrimination againstgender, ethnicity, region, or religious beliefs. In terms of talent-position matching, the Company selects and allocatesappropriate employees based on job quali?cations. At the same time, the Company adheres to the principle of avoid-ance, prohibiting direct relatives from working in the same line of business to ensure the fairness and transparency ofwork processes.
Open recruitment, fair compe-tition, no discrimination againstgender, ethnicity, region, orreligious beliefs.
Select and allocate appropriateemployees based on job quali?-cations.
Indirect employees’ immediatefamily members may not beassigned to work in the samedepartment or under the sameline of authority where con?ictsof interest may arise. Directemployees’ immediate familymembers may not be assignedto work in the same line of busi-ness.
Recruitmentprinciples
Fairness andimpartiality
Talent-position
matching
Avoidance
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
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Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
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AppendixSupporting Public Welfare
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Fostering People-Oriented
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Strengthening Governancefor Sustainable OperationAbout This Report
Total number of
employees
Person
1419
Total number ofemployees
Person
Employee composition in 2023Gender Composition
Female employeesMale employeesTotal number offull-time employees
Total number ofpart-time employeesTotal number of employeesaged below 30 years old
Number of employees aged
above 50 years oldNumber of employeesholding junior collegediplomas and belowNumber of employeesholding bachelor’s degrees
Number of employeesholding master’s degrees
or above
Total number of employees
aged 30-50 years old
1416
1419
PersonPersonPersonPersonPersonPersonPersonPersonPersonPersonPerson
Composition ofemployment types
Age composition
Educational back-ground composition
Total number of employees
Case 1: Establishment of school-enterprise talent cooperation base with universities tospread employer image
Appotronics has established close cooperation with top domestic universities, research institutes, languageschools, and local universities and served as a student internship and practice base. It provides teachers andstudents from the Chinese University of Hong Kong (Shenzhen) and Xi’an University of Science and Technologywith opportunities for visits, exchanges, traineeships, and practice. The Company has further strengthened itsties with universities to actively promote the Company’s employer brand image, in order to provide continuoustalent support for the Company’s technological innovation, market development, and manufacturing capacityenhancement. This has been widely recognized by universities in addressing the employment of universitystudents and enhancing students’ industry practice capabilities.
Student internship base of Harbin Institute of Technology,Shenzhen: establishedOff-campus internship base of Shenzhen University:
establishedInternship base of Harbin Normal University: establishedEmployment practice base of Tsinghua University: in prog-ressStudent internship base of Southern University of Scienceand Technology: in progressOff-campus internship and training base of ShenzhenTechnology University: in progress
Launch of the student learningbases jointly built by Appotronics
and universities
Talent cooperation bases jointly established by the Com-pany and universities include:
Case 2: Talent practice bases jointly built with Shenzhen district governmentsNanshan District High-level Innovative Talent Training Base:
Appotronics has been recognized as the training base for high-level innova-tive talents in Nanshan District. Since its outstanding performance in talentcultivation and technological innovation has been recognized by the govern-ment, it has received strong promotion and resource support from thegovernment in talent recruitment and school-enterprise cooperation.
University Student Internship Base in Pingshan District,Shenzhen:
Through cooperation with the Pingshan District government, Appotronicsprovides internship opportunities for university students, helping themintegrate theoretical knowledge with practical work experience to lay a solidfoundation for their future careers.
Launch of the student practice
base with various districtgovernments in Shenzhen
2023071 / 072Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Case 3: Serving as a postdoctoral workstation to integrate research and practiceGuangdong Province Postdoctoral Workstation of Appo-tronics:
Appotronics, as a postdoctoral workstation in Guangdong Province,provides a platform for doctoral students to conduct research andpractice, thus promoting the cultivation of high-level talents and technolo-gy innovation.Appotronics Substation of Shenzhen Enterprise Postdoctor-al Workstation:
To provide researchers with an excellent research environment and practi-cal opportunities and further enhance the Company’s strength in scienti?cresearch and technological development, Appotronics has established thispostdoctoral workstation.Since its establishment, Appotronics has continuously recruited 11postdoctoral fellows, with 1 new postdoctoral fellow in 2023, and hasestablished a joint training mechanism with postdoctoral stations of Shen-zhen University, Hunan University and other universities, which has contin-uously delivered talents for the Company’s cutting-edge scienti?c researchprojects.
Safeguarding Employee Bene?tsAppotronics actively improves its compensation and bene?ts system, establishing a compensation system that is“internally fair and externally competitive”. Under the distribution principle that “distribution according to work isdominant, giving priority to ef?ciency with due consideration to fairness and sustainable development”, we provideemployees with reasonable and competitive compensation.The Company has established a performance-oriented incentive system. Through the effective implementation of theperformance management system, employee performance evaluations are conducted twice a year to assist employeesin setting performance goals. Through performance reviews and coaching, employees are helped to continuouslyimprove their work capabilities and performance. We also implement a performance-oriented bonus distributionsystem to incentivize teams and individuals with excellent performance. For core employees who demonstrateoutstanding performance and potential for development, the Company also provides stock incentive plans as rewards.In addition, the Company has established an honor recognition incentive to commend outstanding teams and individ-uals who have made signi?cant contributions.
2023073 / 074Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth Together
Strengthening Governancefor Sustainable OperationAbout This Report
In addition to the payment of the statutory “?ve social insurances and one housing fund” for employees, the Companyalso purchases commercial insurance including accident insurance, disease death insurance, and critical illness insur-ance for all employees to further safeguard their bene?ts. Furthermore, the Company has issued the Regulations onCare for Employees and Bene?ts Management and the Employee Handbook, stipulating various paid leave systems,employee welfare programs, and other measures to establish a comprehensive welfare protection mechanism. Weemphasize balancing employees’ work and life to enhance their work enthusiasm.
2023 Chairman’s Special Award
Family careBirthdaywishesGifts andbene?tsHoliday care
EntertainmentactivitiesShenzhenhouseholdregistration
TalentservicesInnovationatmosphere
TeambuildingFree shuttleserviceHousing fortalentsPhysicalexamination保
Six socialinsurance andone housing fund
Paid leave
Flexibleworking hours
Overtime mealallowance
The Company’s Annual Meeting in 2023
2023075 / 076
Purchasing commercial insurance for employees
Focusing on listening to the needs and ideas of employees, Appotronics continuously improves channels and mecha-nisms for communication and exchange. At the company level, we establish various formal and informal communica-tion methods, including annual all-staff communication meetings, communication meetings for new graduates,performance coaching and evaluation communication, etc., to encourage employees to provide any suggestions andopinions regarding the Company’s operations and business.Among them, the Company’s annual meeting, as an important annual event for all employees to participate in com-munication, gives employees the opportunity to communicate face-to-face, share each other’s experiences andideas, and enhance mutual understanding and trust. At the same time, the Company can also take this opportunity
Equal Communication and Exchange
to convey the Company’s strategic planning and future development direction to employees, enhancing employees’sense of belonging and mission.Moreover, through regular performance coaching and communication with each employee at least once per quarter,employees can better align with their positions, department, and company goals, continuously improving and enhanc-ing themselves.
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Fresh graduate communication
2023077 / 078
Talent training systems for Aurora, Sharp Light, Xuguang and Starlight
Employee DevelopmentAppotronics provides abundant learning resources and a sound training system to help employees continuously learnand grow. Through diverse empowerment tools, employees can be motivated to learn continuously, improve workef?ciency, and realize their self-worth.Growth PathwayWith focuses on employees’ personal growth and career development, Appotronics opens up promotion channels foremployees and establishes a dual-channel career development sequence, including management development chan-nels and professional development channels, to provide effective career development guidance and support foremployees to help them understand their development direction and goals. At the same time, the Company’s positionand grade system speci?es quali?cation standards for each level from low to high, including tenure, performance,skills, and other dimensions, helping employees achieve self-development to grow with the Company. The Companyhas been working hard to ensure that every employee can realize their personal value and continuously expand theircareer path.The Company has built a series of talent training systems for Aurora, Sharp Light, Xuguang and Starlight, and createdall-around training plans for fresh graduates, reserve cadres, grassroots managers and middle managers. By the endof 2023, we have offered the Starlight program in seven phases, the Xuguang program in two phases, the Sharp Light
Sharp LightProgram
Aurora Program
Starlight Program
Xuguang Program
Fresh GraduateTrainingThis program isthe source projectfor long-termtalent cultivationand the corner-stone of talentechelons.It aims to helpfresh graduatesquickly adapt tojob requirementsand achieve roletransformationaround the themeof “team integra-tion, improvementby learning, andcapability accu-mulation”.
Targeted ReserveManagement Training
This program is a
key talent cultiva-
tion program,
aiming to develop
the reserve force
in the talent ech-
elons.
It is dedicated to
helping reserve
management en-
hance their com-
prehensive abili-
ties and grow to-
wards the direc-
tion of com-
pound talents, so
as to increase the
density of team
talents.
GrassrootsManagement
Training
This program is animportant talenttraining project,aiming to culti-vate the back-bone of the talentechelons.It is dedicated tohelping grassrootsmanagementbetter understandand align withbusiness goals,manage andcoach subordi-nates, solve busi-ness problems,and lead by ex-ample to embodycorporate culture.
Middle Management
TrainingThis program isan extremely im-portant talenttraining programfor the team ech-elons, aiming tocultivate key mid-dle-level manage-ment.It is dedicated tohelping middlemanagementbetter bridge thegap, convey con-?dence in victory,and achieve orga-nizational goals.
program in three phases (including the R&D management special training camp), and the Aurora program in onephase, not only achieving good results in talent development and talent pipeline construction, but also providing guid-ance for talent development in the management channel.
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
We continuously develop and optimize course systems including core courses on middle-levelleadership, essential courses on grassroots management, and professional skills training cours-es. In addition, we also constantly develop and improve course systems such as the Xuguangcourse system, Starlight course system, general competency course system of Meta AbilityClassroom, and position-speci?c course systems based on job learning paths.
Employee TrainingAppotronics builds a distinctive training system architecture aimed at supporting organizational development, individ-ual advancement, and enhancing organizational capabilities. It revolves around the core purpose of “promoting orga-nizational performance improvement and achieving business results “to design training programs and develop learningcontent with a problem-solving approach. Through the design and implementation of a three-level training system(company level, department level, position level), we promote the construction of a learning organization and createa positive training-sharing atmosphere, to establish a training and development system for employees’ growth andcontinuous improvement of capabilities. The quality and effectiveness of the learning products designed and output
Employee Dual-pathway Growth Sequence
Professionalismgrowth pathwayP Sequence
Experiencedemployees
Newcomers
Management
growthpathwayM Sequence
The Group’sChairman and CEO
Senior manager
Middle manager
Grassroots manager
Authority expert
Expert/Senior Expert
Core staff
Coursesystem
According to statistics, the total training duration for employees in 2023 was approximately 10,600 hours, with anaverage training duration of about 14.4 hours per person (for employees of the parent company only). In addition, tohelp new employees integrate into the Company more quickly to adapt to the organization’s development and forma sense of belonging to the Company to quickly adapt to their job positions, the Company organizes monthly newemployee training camps, which cover over 300 people cumulatively in a year.The Company’s training system architecture
Supporting organization development
Fostering personal growthAccumulating organization capacityRequirementanalysis
solutionplanning
organization forimplementation
and feedback
evaluation
Training management division systemIT platform construction/training management system
Training management positioning
by the 4 major links of the training operation system that continue to operate in a closed loop have been unanimouslyrecognized by the trainees and the Company, with all training feedback scoring over 9.2 points (out of 10 points).
In 2023, the Company employed 243 teaching lecturers, with a well-operating three-levelcourse system at the company/center/department levels; over the past three years, more than80 certi?ed lecturers have become certi?ed lecturers of the Company. The Company’s inter-nal/external teaching resources library is under continuous maintenance and update. The man-agement system is continuously upgrading, with the well-coordinated division of labor amongtraining, HRBP, and department learning committees. The training system, as basically com-plete, can meet the current learning and development needs.
Lecturer
system
Three-level
coursesystem
Lecturersystem
Resourcelibraryconstruction
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
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AppendixSupporting Public Welfare
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Manufacturing Endeavors
Fostering People-Oriented
Growth Together
Strengthening Governancefor Sustainable OperationAbout This Report
Case 2: CINEAPPO grows together with employeesThe Company’s subsidiary CINEAPPO has built a culture of “continuous learning” to enhance Employees’ knowl-edge and skills. During the reporting period, we have conducted fourteen internal and external training sessions,in which over 520 people have participated with a total training duration of 655 hours, and 10 internal lecturershave delivered courses, embodying the corporate culture of “continuous learning for growing together”. Forexample, through sessions like “Laser Light Source Leasing Business Knowledge Sharing” and “Introduction toSales Business”, CINEAPPO helps employees understand and learn about its operations. Through sessions like“Fine Parts Management to Ensure Repair Ef?ciency”, CINEAPPO introduces participants to its parts manage-ment and repair ef?ciency. The training videos are uploaded to the CINEAPPO Cloud Classroom to facilitateemployees to review and revisit the materials at any time as well as store learning materials. Meanwhile, CINEAP-PO conducts examinations every quarter to reinforce trainees’ learning of key knowledge.
Photo of the on-site training for employees by CINEAPPO
2023081 / 082
Case 1: Appotronics’ 2023 starlight program (the seventh phase) talent development plan
Phase One: Role TransformationTraining goal: From fresh graduates to professionals (2 weeks of intensive training)(Building emotional bonds, cultivating professional qualities of fresh graduates, promoting cultural integration,
and establishing trust.)Phase Two: Consolidating the Foundation
Goal: From Professionals to Core Employees (1-2 years)(Dedicated to cultivating fresh graduates into core employees with a solid professional foundation throughon-the-job training and project practice. Key training actions include: mentors providing on-the-job guidance,developing training plans for trainees and communicating with trainees regularly to receive feedback for adjust-ments; departments organizing specialized training based on job positions and tasks, such as software + struc-ture + optical specialized training; the training and talent development team organize book clubs and sharingsessions to enhance trainees’ professional awareness and overall competence.)
The Starlight talent training system is Appotronics’ source project of long-term talent cultivation and the corner-stone of the talent echelon. The project, which is planned around six core goals: cultural identity, team integra-tion, self-management, professional training, mastery of professional knowledge and skills, and industry vision,aims to cultivate key talents that ?t the Appotronics culture and meet the strategic development needs of Appo-tronics.
Group photo of new employee training for Appotronics’ Seventh Phase Starlight Program in 2023
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Care for EmployeesAppotronics strives to enhance employees’ sense of belonging, stimulate their enthusiasm for work, and unleash theircreativity. In order to strengthen mutual communication and learning among employees during their leisure time andenhance mutual understanding and trust, the Company organized team-building activities such as the “Dragon BoatFestival Food Competition”, “Singles Club Movie Watching Activity”, “Hong Kong MacLehose Trail Hiking Activity”,“Mid-Autumn Festival Garden Party” in 2023; at the same time, the Company’s trade union established and operatedvarious associations and clubs such as yoga, dance, badminton, and reading, through which employees could relaxduring their leisure time and improve teamwork and work ef?ciency. The Company cares for employees in dif?cultyand has formulated the Trade Union Love Assistance Fund Management Measures. If an employee is hospitalized dueto illness, or encounters sudden accidents, natural disasters, or man-made disasters that cause dif?culties for theemployee’s family, the Company’s trade union will provide the employee with a contingency fund ranging from RMB2000 to 5000 at its discretion. Since the implementation of this initiative, the Company has helped nearly 10 employ-ees and families.
Employee birthday party
Mother’s Day Event
Mid-Autumn Garden PartyFood festival held on Dragon Boat Festival
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth Together
Strengthening Governancefor Sustainable OperationAbout This Report
Reading Club - Book Sharing Session
Outdoor Club - Hong Kong MacLehose Trail Hiking
Case: CINEAPPO’s care for employeesIn April 2023, the Beijing International Film Festival was grandly held in Huairou District, Beijing. The Company’ssubsidiary, CINEAPPO, actively participated in the 13th Beijing International Film Festival Filmmakers Fun Run.Through involvement in this event, CINEAPPO employees not only improved their physical ?tness and boostedtheir spirits but also demonstrated a healthy and positive attitude. Their participation resulted in notableachievements. CINEAPPO employees enhanced team cohesion, fostered mutual affection and strengthened?tness awareness by participating in the fun run. Moreover, they displayed the Company’s vibrant and positivespirit. CINEAPPO received a thank-you letter from the organizing committee in recognition of their contribu-tions.
In August 2023, the new product VLED cinema was installed in Beijing. CINEAPPO organized all colleagues andtheir families to experience the new product at VLED cinema, successfully hosting the Employee Family Dayevent.
CINEAPPO participated in the 13th Beijing International Film Festival Filmmakers Fun Run
Family Open Day of CINEAPPO
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Occupational Health and SafetyAppotronics Technology always prioritizes safety production. We take the construction of a safety-oriented scienti?cand technological enterprise as the main line, actively shouldering the main responsibility of the enterprise and contin-uously innovating and implementing safety management measures. We also ful?ll the statutory responsibilities ofsafety production, strengthen safety production supervision and inspection, and conduct in-depth investigations toeliminate safety hazards and ensure safe operation, so as to solidify the safety defense line to provide a solid guaran-tee for the company’s stable growth and development.
Safety productionaccidents
IndicatorsUnit2023
Particularly serious accidents
Major accidentSigni?cant accident
Ordinary accidentSafety hazard elimination rateNumber of safety emergency drills
Number of participants in safety
emergency drillsNumber of special occupationaldisease examinations
Number of deaths due towork-related reasonsEmployee safety training hoursNumber of participants in
safety training
Number of deaths fromoccupational diseases
Incident
Incident
TimePersonPerson
Person
HourPerson
Person
Incident
Incident
%100%
1050
1200
Workplace safety
Enhanced safety
protection
Construction
Safety Production
Appotronics continuously enhances itssafety management mechanisms andpromotes the construction of a compre-hensive safety production system. TheCompany has established the SafetyManagement Committee, with theSafety Management Of?ce subordinat-ed thereto. The R&D center and supplychain center are responsible for thespeci?c implementation of safety initia-tives, and they have signed the 2023safety responsibility letter, achieving a100% signing rate to reinforce the Com-pany’s safety efforts. The Company hasimplemented a dual prevention mecha-nism and established various regula-tions, including the Safety ProductionResponsibility Regulations, the FireSafety Management Regulations, theHazard Source Management Regulations, the Accident Investigation Report, the Female Employee Safety ProtectionControl Regulations, and the Labor Protection Articles Management Regulations. Furthermore, both the Company andits subsidiaries have achieved ISO45001 Occupational Health and Safety Management System Certi?cation.At the same time, to prevent safety risks and enhance emergency response capabilities, the Company comprehensive-ly investigates safety hazards and conducts regular safety inspections to eliminate accident hazards. In addition, wealso conduct post-accident investigations and analyze response and prevention measures. Furthermore, we havedeveloped emergency preliminary plans and simulated accident processes to test the feasibility of these plans, andhave conducted emergency drills to evaluate the reliability of our emergency response capabilities. In 2023, the Com-pany organized various internal safety inspections, through which we identi?ed a total of 275 safety accident hazardsand completed the recti?cation of 275 accident hazards, achieving a 100% recti?cation rate of safety accidenthazards.
ISO45001 Occupational Health and SafetyManagement System Certi?cation
Occupational Health
Attaching great importance to the physical and mental health of employees, Appotronics has established a compre-hensive employee health prevention system and formulated regulations such as the Regulations on OccupationalHealth Management and the Regulations on Identi?cation and Control of Occupational Diseases to ensure the occupa-tional health of employees. The Company organizes employees to participate in annual occupational health examina-tions regularly establishes employee health records, and has passed the international Environment, Health, and Safety(EHS) Certi?cation and the ISO45001 Certi?cation.In 2023, the Company experienced no suspected cases of occupational diseases or acute occupational diseaseincidents throughout the year. There are no signi?cant occupational disease hazards in the existing of?ce environment,and the overall risk of occupational diseases is effectively controlled.
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Safety and Health CultureThe construction of a safety culture helps to enhance employees’ safety awareness and safety literacy. Appotronicspopularizes safety knowledge and safe operating procedures to all employees through various forms of measures, suchas safety training seminars, regular safety drills, and safety culture promotion month activities, in order to improveemployees’ safety awareness and emergency response capabilities.The Company’s safety culture training covers all departments and positions. We develop tailored safety culture train-ing plans according to different job contents and risk characteristics, such as the training of “Cardiopulmonary Resus-citation (CPR)”, to ensure that employees fully grasp various safety operating procedures and maintain high vigilanceand sense of responsibility at all times. In 2023, the Company conducted 12 monthly evaluations. Safety interfacepersonnel in each department were able to organize evaluation data in accordance with the Appotronics SecurityManagement Quantitative Evaluation Measures and implement them accordingly.
Monthly safety quantitative evaluation form
Organizing employees to takeoccupational health examinations
Employees’ occupational
health check form
Warehouse safety lithium battery trainingEmergency training
Hazardous chemical safety training
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
The Company’s Fuyong factory carries out a series of work safety month activities every year to promote a safeproduction culture. In the national “Work Safety Month” in June 2023, the Company launched a safety productiontraining activity with the theme of “Being the First Responsible Person in accordance with the Safety ProductionLaw”, which was closely related to the theme of Work Safety Month. The Company’s Fuyong factory actively identi?espotential hazards in the production operation process. It has formulated different emergency preliminary plans andconducted emergency drills, such as ?re emergency drills, chemical leakage emergency drills, safety evacuation emer-gency drills, etc., to enhance employees’ ability to deal with emergencies and popularize relevant safety knowledgeduring the emergency drills.
Safety production management knowledge training
Fire emergency drill
Chemical leakage emergency drill
Emergency evacuation drill for safety
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Eco-Friendly
Practices for Green Development
7.0
2023093 / 094Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Green Management
Greenhouse Gas(GHG) ManagementAppotronics, based on the environmental concept of sustainable development and the obligation to ful?ll corporateresponsibility, will actively commit to greenhouse gas emissions inspection and control to mitigate global warmingeffects. Through green management within the Company, we have conserved energy and resources, contributing tothe sustainable development of the global ecological environment.To review the internal greenhouse gas emission data, the Company has engaged a professional organization to inde-pendently verify the Company’s greenhouse gas inventory inspection report in accordance with ISO14064-1:2018 andISO14064-3:2019 standards. As this is the Company’s ?rst greenhouse gas inspection, only Scope 1 and Scope 2 emis-sions are quanti?ed. We concentrated on the emission sources and amounts within the organizational boundary of theCompany’s Fuyong factory to inspect and report the greenhouse gas emissions.
Energy consumption in the Company’s of?ce area
Energy ManagementAppotronics strictly complies with national and local environmental protection laws and regulations, closely monitoringchanges in laws and regulations to make adjustments in a timely manner. Adhering to the principle of green produc-tion, the Company continuously optimizes production processes and adopts advanced energy-saving technologies toensure minimal environmental impact during the production process. Through these initiatives, we could promotesustainable development and environmental protection, contributing to a better future for human society. In 2023,the Company received no environmental complaints from environmental departments, relevant organizations, or com-panies, and no individual or organizational complaints, and experienced no environmental pollution incidents.
In 2023, the average annual water and electricity consumption per product at the Company’s Fuyong factoryincreased compared to the consumption in 2022, mainly due to increased investment in the vehicle project and theDQA laboratory resulting from changes in the product portfolio. In the future, as the business enters a stable period,the product portfolio is expected to be optimized through improvements in production processes.Furthermore, it is worth mentioning that in order to achieve highly ef?cient energy management, the Companycontinues to promote the construction and improvement of the energy management system and successfully passedthe ISO50001 certi?cation in 2023. Adhering to the concept of energy conservation and emission reduction to improveenergy ef?ciency, the Company incorporates energy management into daily production and management to system-atically achieve energy conservation and consumption reduction goals as scheduled.
In the future, the Company will regularly review its carbon dioxide emissions and will continue to reduce its energyconsumption and carbon dioxide emissions through green technology innovation, process optimization, enhancedenergy management, pollution emission reduction, and other measures.
Tons264.438.25%Scope 1 GHG emissions(carbon dioxide equivalent)
Tons2939.3791.75%
Scope 2 GHG emissions(carbon dioxide equivalent)
Tons3203.81100%Total GHG emissions(carbon dioxide equivalent)
CategoryUnit of measurement2023Proportion
Achievement of ISO50001 Certi?cation and Environmental
Management System Certi?cation
3661m
3252m
Of?ce, kitchen, and domesticwasteRemarks:Of?ce and domestic waste
Of?ce wastewater
3661m
501100DegreeOf?ce electricityconsumption
Of?ce water consumption
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Three Wastes ManagementCurrently, the Company’s production and operation activities have brought minor environmental impact, and thegenerated wastewater produces minimal waste gas and noise after legal treatment. Additionally, the Company com-missions quali?ed third-party environmental testing agencies to conduct annual testing on the Company’s wastewa-ter/emissions/noise to ensure that the Company’s production wastewater has not polluted the external environment.In April 2023, the Company commissioned a third-party environmental testing agency to conduct tests on the waste-water, exhaust gas, and noise generated during the Company’s production process. The reports, with numbersR22321357 and R23111240-A, proved that the wastewater, exhaust gas, and noise all met the requirements of nationaland regional laws and regulations.
Wastewater treatment
The domestic wastewater generated at the Company’s of?ce is treat-ed by the of?ce building and industrial park property managemententity and will be discharged into the municipal sewage network afterpre-treatment if the treated wastewater meets the standards. Duringthe reporting period, the third-party testing agency conducted testson the wastewater generated by the Company’s production activitiesin accordance with the Limit Values of Guangdong Provincial LocalDischarge Standard for Water Pollutants and concluded that the testresults all met the discharge standards.
Waste gas treatment
Solid Waste Treatment
The Company produces a small amount of waste gases during itsproduction and operation process, mainly including tin-containingwaste gas and non-methane total hydrocarbons. These gases aretreated through UV photolysis, activated carbon adsorption devices,air puri?cation equipment, etc. until their emission concentration hassatis?ed the environmental standards of the location where theproduction and operation entity is located, as speci?ed in Limit Valuesof Emission Standard for Air Pollutants (DB44/27-2001 Level 2 Stan-dard). The Company also commissions a third-party testing agency toconduct tests to ensure compliance with the standards before emis-sion.
1.26Tons
Total amount of hazardouswaste
9.6
TonsTotal amount of generalindustrial solid waste
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
The Company’s waste is mainly divided into three categories: recycla-ble, non-recyclable, and hazardous waste, which are collected sepa-rately and delivered to recycling companies for compliance treatment.The Company veri?es the business quali?cations of the recycling com-panies annually and signs relevant recycling contracts with them.Additionally, the Company pays monthly management fees to theproperty management entity to ensure that the waste generated bythe Company will not have any negative impact on the environment.
Classi?cation and orderly management of waste in the factory area
Noise
Other treatments
The Company has formulated the Chemical Hazard Control Procedurein accordance with relevant regulations to guide employees in manag-ing chemicals and designated dedicated areas to store chemicals.According to the on-site con?rmation results, the management, trans-fer, and recycling of chemicals all satisfy the requirements.The Company has developed the Emergency Schedule and the Emer-gency Preparedness and Response Control Procedure for emergenciesinvolving chemicals, ?res, and other incidents and arranged for safetyof?cers to conduct daily safety inspections to combine with depart-mental checks. The Company also provides ?re safety training andawareness to employees, and are prepared for ?re and otheraccidents. On-site inspection results show that the managementmeets the requirements.The Company has established the Resource Consumption ControlProcedure and related environmental goals to guide and superviseemployees in controlling resource consumption. The administrativedepartment conducts monthly statistics on the Company’s water,electricity, and of?ce paper consumption in order to remind employ-ees to conserve water and electricity and eliminate waste.
The noise generated during the Company’s production and operationprocess is minimal. In March 2023, a third-party testing agencyconducted tests on our production site according to the EmissionStandard for Industrial Enterprises Noise at Boundary (GB12348-2008)and concluded that all testing results met the emission standards.
Green Technology
Laser is currently the brightest and most color-pure arti?cial light source in the world. Laser technology offers signi?-cant environmental advantages compared to traditional display technologies. These bene?ts include superior eyeprotection, color performance, screen size capabilities, and energy ef?ciency. Appotronics leverages these advantagesby rigorously integrating environmental considerations, energy savings, and low-carbon principles throughout itsresearch and development (R&D) processes. This commitment leads to continuous improvements in product energyef?ciency and reduced energy consumption.
Appotronics’ ALPD? laser light source cinema projection solution exempli?es the Company’s environmental leadership.With over 29,500 sets installed domestically, these systems, with a total running time of approximately 316 millionhours, have collectively saved an estimated 568 million kWh of electricity and reduced carbon dioxide emissions byover 249 million cubic meters.
Calculation method speci?cation: According to statistics, compared with xenon lamps, the laser light source can save 1.8kWh of electricity per hour on average. Since 1 kWh of electricity generates approximately 0.86 kg of carbon dioxide and thevolume of 1 ton of carbon dioxide is 509 m
, the volume of carbon dioxide generated by 1 kWh of electricity is 0.44 m
.Therefore, saving 568 million kWh of electricity can reduce carbon dioxide emissions by over 249 million cubic meters.
29500setsALPD?cinema projection solutionwith installed domestically over
million hourslaser light running time ofapproximately
million kWhelectricity saved an estimated
million cubic meters
reduced carbon dioxide emissions
2023099 / 100Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Green Operation
Appotronics conveys and communicates information through comprehensive information system construction, onlineprocess approval, and digital tools such as electronic receipts invoices, and emails, to reduce the use of of?ce suppliessuch as paper, ink, and printers. Through these measures, we could decrease carbon dioxide emissions and environ-mental pollution by reducing the consumption of natural resources and the generation of waste, so as to achievesustainable development and environmental protection.
Case : Laser upgrade project in Hebei ProvinceA cinema in Heibei Province planned to upgrade its display devices. To verify the performance of the ALPD?laser light source, it selected two nearly identical screening rooms for comparison. One was upgraded to a laserlight source while the other remained with a xenon light source. The electricity consumption and brightnessstability of the two screening rooms were monitored during their two and a half months of operation, with moni-toring data as follows:
According to the recorded data, after two and a half months of operation with almost the same daily screeningschedule, the total electricity consumed at the xenon lamp hall is 1076 kWh, while that at the laser hall is 403kWh. The laser hall consumes an average of 1.1 kWh of electricity per hour while the xenon lamp hall consumesan average of 2.91 kWh of electricity per hour. It is calculated that, on average, the laser hall saved 1.81 kWh ofelectricity per hour compared to the xenon lamb hall.
Screening roomHall AHall B
Screen size (m)7.2*4.17.2*4.1Projection distance (m)1515
Number of seats9998Device informationALPD? laser light sourceXenon light sourceElectricity consumption(two and a half months of operation)
403 degrees1076 degrees
Operating hours365 hours369 hoursAverage electricity consumption per hour (kWh)1.1 degrees2.91 degrees
Risk and Opportunity Analysis
Appotronics attaches great importance to the impact of climate change on the Company’s operations. Referring tothe initiative framework of the Task Force on Climate-related Financial Disclosures (TCFD), we identify climate changerisks and opportunities, actively responding to potential impacts on business operations and taking effective measuresto address them.
Climate Information Disclosure
Case 2: Formovie uses eco-friendly packaging materialsThe Company’s subsidiary Formovie actively advocates the concept ofresource regeneration and recycling. It adopts a series of sustainablemeasures to reduce environmental impact and achieve ef?cient use ofresources. In December 2023, Formoive’s self-owned brand Xiaominglaunched the new model high-brightness projector Xiaoming V1, with thepackaging changed from traditional paper color box to environmentallyfriendly polypropylene (EPP) material. This EPP material, being non-toxic,recyclable, energy-saving, lightweight, and durable, plays a positive role inpromoting sustainable development and reducing environmental burden.
Xiaoming projector packagingadopts environmentally friendly
polypropylene (EPP) material
Case 1: CINEAPPO advocates energy conservation and environmental protection
The company’s subsidiary CINEAPPO has always adhered to the concept of energy conservation and environ-mental protection. From the perspective of green of?ce, it advocates the reuse of of?ce waste paper to avoidwaste and electricity saving by requiring CINEAPPO employees to keep the lights, projectors, and air conditioningoff when leaving the of?ce or meeting room to maximize electricity savings. In recent years, CINEAPPO hasimplemented paperless of?ce practices, with promotional materials transitioning from paper versions to mostlyelectronic versions, demonstrating its commitment to environmental protection through practical actions.
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
In daily operations, the Company also emphasizes cultivating employees’ awareness of environmental protection,encouraging them to use eco-friendly products and services in work and life. At the same time, the Company hasimplemented various green of?ce measures, such as implementing waste sorting in public areas, posting energy-savingsigns, continuing to promote water conservation, electricity-saving, paper saving, video conferencing, and electronicof?ce, reducing the generation of of?ce waste, and recycling wastes, to achieve green of?ce practices.
GovernanceLed by the Chairman as the primary person in charge, the Strategic and ESG Committee conducts research on theCompany’s climate risks and opportunities and provides recommendations to guide relevant work. The SustainableDevelopment Department, under its guidance, conducts detailed identi?cation, assessment, and management ofclimate-related risks and opportunities, actively responding to them and promoting the implementation of relevantmeasures. The overall work is supervised by the Board of Directors and the management Ultimately.Identi?cation and Response to Climate Risks
Physical risks
Acute risks(such astyphoons, heavyrain, and otherextreme weath-
er events)Chronic risks(such asprolonged hightemperatures,drought, etc.)
Climate change risksResponse measures
As the Company’s principaloperating locations are placedin coastal areas, sudden risks,such as typhoons, heavy rain,high temperatures, andlong-term risks, such as risingsea levels, may have a certainimpact on the Company’sdaily operations, like reducedemployee work ef?ciency,damage to ?xed assets suchas production equipment, orother potential economiclosses.
1) The Company has formulated the
Emergency Response Preliminary Planfor Natural Disasters and establishedcorresponding early warning andresponse mechanisms, which are con-tinuously updated and improved ac-cording to actual situations;
2) To mitigate potential damage to
?xed assets, the Company has pur-chased appropriate insurance toeffectively reduce economic losses;
3) Based on past experiences, the
Company has not been signi?cantlyaffected by climate risks in extremeweather conditions, with the mainimpact being on employee work ef?-ciency. The Company is able to pro-vide technical support for employeesworking from home to ensure normalwork pace;
4) On the production side, the Com-
pany can ensure production paceeffectively through measures such asproduction plan optimization, ef?-cient production organization, andlean production through technology ina rational manner.
Climate Opportunity Analysis
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
AppendixSupporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Goals and Action Plans
Appotronics will practice high-quality and green development and continuously promote emission reduction work.By fully leveraging technological research and development advantages, we actively carry out research and develop-ment of low-carbon technologies to continuously improve production and manufacturing processes and increase theproportion of renewable energy use, so as to effectively reduce the generation of wastewater, waste gas, and solidwaste to actively contribute to the carbon peaking and carbon neutrality goals.
Bene?ting from the low energy consumption, ener-gy-saving, and environmentally friendly characteris-tics of laser technology, the Company's technologyand products are more likely to be welcomed bythe market, hence we have the opportunity to gainfavor in emerging markets under a low-carboneconomy;
By enhancing the disclosure of low-carbon prod-ucts and zero-carbon governance, the Companyhas the opportunity to gain a positive reputationfor sustainable development, attracting attentionand investment from domestic and overseas inves-tors and investment institutions;The energy-saving advantages of the laser displayindustry are signi?cant, and with the bene?ts fromthe carbon peaking and carbon neutrality goals, wewill receive more policy support;
High quality and sustainable development havebecome industry consensus, leading to more fre-quent communication between industries, therebyjointly promoting the green upgrade of the indus-trial chain.
Transformation
risk
Policy andlegal risk
Technology
risk
Market risk
Reputationrisk
Since the national policy of carbonpeaking and carbon neutrality im-poses stricter requirements on thedisclosure of emission reductioninformation related to corporate cli-mate, companies need to investmore in emission reduction torespond to the national call.
Consumers and customers are willingto choose more low-carbon and en-vironmentally friendly products. Atthe same time, the high require-ments for emission reductionthroughout the entire industry chainmay lead to increased costs of rawmaterials and energy.Climate-related events may harmthe Company’s reputation and leadto customer loss.
Achieving emission reduction goalsposes new demands for technologi-cal upgrades, urgently requiring thedevelopment of more low-carbonand environmentally friendly technol-ogies and products.
1) The Company actively pays atten-
tion to international policies or rele-vant laws and regulations in the ?eldof carbon peaking and carbon neu-trality to reinforce learning andrespond in a timely manner, and pro-actively carries out energy conserva-tion and emission reduction practices;
2) In technical research and develop-
ment and product design, the Com-pany considers energy conservationand environmental protection as im-portant factors, paying attention tolow-carbon technologies in the indus-try and market to introduce coopera-tion in a timely manner;
3)The Company actively develops
green and low-carbon technologiesand products to meet marketdemand;
4) The Company continuously im-
proves the disclosure of environmen-tal information to enhance stakehold-ers’ con?dence in the Company.
Supporting Public
Welfare for a Be?er Future
8.0
光峰科技年度环境、社会与治理（ESG）报告2023105 / 106
Public Welfare Assistance for Farmers
Appotronics actively practices the social responsibility of an industry leader, contributing to rural revitalization throughthe public welfare assistance approach of “purchase instead of assistance”.In September 2023, Appotronics commenced our Mid-Autumn Festival Farmer Assistance Action again, enablingpeople in rural areas to feel the bene?ts of technology innovation. Through communication with the relevant of?cialsof Nandan County, Guangxi Zhuang Autonomous Region, the Company, after learning about the sales dif?culties oflocal agricultural products, successfully contacted the local agricultural cooperative liaison person to initiate a publicwelfare assistance project for farmers. Before the Mid-Autumn Festival, over a thousand agricultural products weredistributed to our employees in Shenzhen City from Nandan County, embodying the Company’s unyielding commit-ment to agricultural support. At the same time, the Company’s agricultural support activities were recognized by thelocal rural revitalization bureau. According to statistics, it is estimated that the initiative that the Company purchasedagricultural products directly bene?ted 21 families in need, with an average income increase of over RMB 1,300 perperson.
Enterprises should not only pursue commercial value but also convey values andwarmth to society as bearers of social responsibility. Appotronics is committedto contributing to rural revitalization, popular science education, and social wel-fare, fully leveraging our own strengths to contribute to society. While activelyful?lling social responsibilities and promoting the development of public welfareundertakings, the Company also focuses on providing better support and assis-tance to public welfare undertakings through technological innovation, helpingpromote technology innovation and cultivate scienti?c and technological talents.
Appotronics’ Mid-Autumn Festival Farmer Assistance Action
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Science Popularization Education
Appotronics focuses on enhancing connections and collaborations with society. In order to promote science popular-ization and talent cultivation, enhance the Company’s public welfare image and commercial value, and allow morepeople to enjoy the convenience brought by technology innovation, the Company leverages our corporate exhibitionroom as a popular science platform to actively respond to and carries out science popularization. We combine laserdisplay technology with digital art to immerse the public in the charm of technology.In 2023, the Company passed the annual assessment of the Nanshan Science Popularization Base and was selectedfor the industrial tourism cultivation resource pool of Guangdong Province. We closely cooperated with numerousorganizations, communities, and schools, such as the Nanshan District Science Popularization Alliance, TsinghuaUniversity, Shenzhen Senior High School, Nantou Primary School, Nanshan Qihang Perception Action Activity, MacaoEducation and Youth Development, and Taoyuan Sub-district Of?ce of Nanshan District, to conduct targeted sciencepopularization theme activities for teenagers, children, Guangdong-Hong Kong-Macao Greater Bay Area students,young people in new forms of employment, etc.In 2023, the Company’s exhibition room was open to the public for free, receiving a total of 10,458 visitors in 347batches, including 611 children, students, and teenager visitors in 23 batches.
Members of the Association of Senior Scientists and Technicians
visited the exhibition room and gifted inscriptionsScience popularization activities for children
Science popularization activities for children
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Case: Innovative technology inspires Gansu Students’ ?ghting spiritIn July 2023, at the invitation of the Xinghua Education Foundation, Appotronics hosted 76 sophomore studentsfrom the 2021 class of Gansu Baiyin Experimental High School. We introduced to them detailed knowledge ofthe invention, application, and development of laser semiconductor and laser light source technology, andconducted a unique science popularization course on “AR Display” for them.The course vividly depicted the vision of the AR world, with contents covering the intuitive experience of thelatest AR devices, the popularization of AR basic knowledge, and the imagination of future AR development.The interactive Q&A session at the end provided an opportunity for the children to fully open up their imagina-tions. This course laid a foundation for these students’ future professional studies in the AR ?eld.
Community Public Welfare
Appotronics maintains a good relationship with the community and actively participates in community charity activi-ties. In 2023, under the organization of trade union, the Company’s employees participated in the “Working Togetherto Guard Warmth” charity fundraising event initiated by the Nanshan District Federation of Trade Unions and theNanshan District Charity Federation, contributing our love to warm and guard those in need of help during the coldwinter.
Case: CINEAPPO cares for public welfareIn 2023, coinciding with the release of the movie “Hachi: ADog’s Tale”, the Company’s subsidiary CINEAPPO organized apublic welfare movie-watching event to advocate animalprotection, encourage more people to join the ranks of strayanimal protection, and popularize the concept of “adoptioninstead of purchase”. After the movie-watching event, CINEAP-PO donated funds to the stray animal protection organization“TA Foundation” for the protection of stray animals, etc. At thesame time, CINEAPPO participated annually in the charityevent “Everlasting Love Action - Millions of Families Linked byLove”, knitting sweaters for children in mountainous areas toconvey a sense of love.
CINEAPPO public welfare movie-watching event
CINEAPPO participates in the Everlasting
Love Action
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
AppendixSupporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appendix
GRI Standard Index TableGRI Standards
Organizational Pro?le
Strategy
Disclosure itemsChapter name
GRI StandardsDisclosure itemsChapter name
102-1 Organization name
Appotronics CorporationLimited
1.0 About Appotronics
20-22/F, High-Tech Zone UnionTower, No.63, Xuefu Road, Nan-shan District, Shenzhen, Guang-dong Province20-22/F, High-Tech Zone UnionTower, No.63, Xuefu Road, Nan-shan District, Shenzhen, Guang-dong Province
6.0 Fostering People-Oriented
Growth Together
6.0 Fostering People-Oriented
Growth Together
1.0 About Appotronics
5.0 Quality Safeguarding in
New Manufacturing Endeavors
5.0 Quality Safeguarding in
New Manufacturing Endeavors
Message from the Chairman
4.0 Strengthening Governance
for Sustainable Operation
4.0 Strengthening Governance
for Sustainable Operation
2.0 Anchored in Technology,
Propelled by Innovation
2.0 Anchored in Technology,
Propelled by Innovation
102-2 Activities, brands, products, and services102-3 Location of headquarters
102-4 Location of operations102-6 Markets served102-7 Scale of the organization102-8 Information on employees and otherworkers102-9 Supply chain102-10 Signi?cant changes to the organizationand its supply chain102-11 Precautionary principle or approach102-12 External initiatives102-13 Membership of associations102-14 Statement from senior decision-makers102-15 Key impacts, risks, and opportunities
GRI102: General
Disclosures
Reporting practices
102-49 Report changes102-48 Restatements of information102-47 List of material topics102-46 De?ning report content and topic boundaries102-45 Entities included in the consolidated?nancial statements
102-34 Nature and total number of majorconcerns102-40 List of stakeholder groups102-42 Identifying and selecting stakeholders102-43 Approach to stakeholder engagement102-44 Key topics and concerns raised
102-33 Communication of major concerns102-22 Composition of the highest governancebody and its committees
102-50 Reporting period102-51 Date of most recent report102-52 Reporting cycle102-53 Contact point for questions regardingthe report102-54 Statement on reporting in compliancewith GRI Standards102-55 GRI Content Index
Stakeholderengagement
102-18 Governance structure102-20 Executive-level responsibility foreconomic, environmental, and social topics102-21 Consulting stakeholders on economic,environmental, and social topics
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
1.0 About Appotronics
1.0 About Appotronics
1.0 About Appotronics
1.0 About Appotronics
Readers’ Feedback onthe Appendix
1.0 About Appotronics
Report Appendix
Governance
Ethics and integrity
1.0 About Appotronics
1.0 About Appotronics
102-16 Values, principles, standards, and normsof behavior
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
Supporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appendix
GRI标准披露项章节名称披露项章节名称
GRI 403: Occupational
Health and Safety
GRI404: Trainingand Education
404-3 Percentage of employees receiving regularperformance and career development reviews
404-2 Programs for upgrading employee skillsand transition assistance programs
404-1 Average hours of training per year peremployee
403-9 Work-related injuries403-10 Work-related health issues
403-7 Prevention and mitigation of occupationalhealth and safety impacts directly related tobusiness operations
403-6 Promotion of worker health403-5 Worker training on occupational healthand safety
GRI 307: Environmental
Compliance
307-1 Violation of environmental lawsand regulations
GRI 308: SupplierEnvironmentalAssessment
GRI 401: Employment
308-1 New suppliers screened underenvironmental standards308-2 Negative environmental impacts in thesupply chain and actions taken401-1 New employee hires and employeeturnover401-2 Bene?ts provided to full-time employeesthat are not provided to temporary or part-timeemployees
None
103-3 Evaluation of
the management
approach
GRI 205:
Anti-Corruption
GRI 302: Energy
GRI 303: Water andEf?uents
GRI 305: EmissionsGRI 306: Ef?uentsand Waste
205-3 Con?rmed corruption incidents andactions taken205-2 Communication and training aboutanti-corruption policies and procedures201-2 Financial implications and other risksand opportunities due to climate change201-1 Direct economic value generated anddistributed
302-1 Energy consumption within theorganization302-4 Reduction of energy consumption303-2 Management of water discharge-relatedimpacts303-3 Water withdrawal303-4 Water discharge303-5 Water consumption305-5 Reduction of GHG emissions306-2 Total amount of waste by type anddisposal method
GRI 103: Management
Approach
103-1 Explanation of the material topics andits boundary103-2 The management approach and itscomponents103-3 Evaluation of the management approach
1.0 About Appotronics
7.0 Eco-Friendly
Practices for GreenDevelopment
7.0 Eco-Friendly
Practices for GreenDevelopment
7.0 Eco-Friendly
Practices for GreenDevelopment
7.0 Eco-Friendly
Practices for GreenDevelopment
7.0 Eco-Friendly
Practices for GreenDevelopment
7.0 Eco-Friendly
Practices for GreenDevelopment
7.0 Eco-Friendly
Practices for GreenDevelopment
7.0 Eco-Friendly
Practices for GreenDevelopment
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices for
Green Development
Supporting Public Welfare
for a Be?er FutureQuality Safeguarding in New
Manufacturing Endeavors
Fostering People-Oriented
Growth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appendix
GRI StandardsDisclosure itemsChapter nameGRI StandardsDisclosure itemsChapter name
6.0 Fostering People-Ori-
ented Growth Together
6.0 Fostering People-Ori-
ented Growth Together
6.0 Fostering People-Ori-
ented Growth Together
6.0 Fostering People-Ori-
ented Growth Together
6.0 Fostering People-Ori-
ented Growth Together
6.0 Fostering People-Ori-
ented Growth Together
6.0 Fostering People-Ori-
ented Growth Together
6.0 Fostering People-Ori-
ented Growth Together
6.0 Fostering People-Ori-
ented Growth Together
6.0 Fostering People-Ori-
ented Growth Together
5.0 Quality Safeguard-
ing in New Manufactur-ing Endeavors
5.0 Quality Safeguard-
ing in New Manufactur-ing Endeavors
4.0 Strengthening
Governance forSustainable Operation
4.0 Strengthening
Governance forSustainable Operation
2.0 Anchored in
Technology, Propelledby Innovation
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
3.0 Practicing ESG Through
Responsible Management
GRI StandardsDisclosure itemsChapter name
GRI 408: Child LaborManagement plan
GRI 406: Non-dis-
crimination
Management plan
GRI 405: Diversity and
Equal Opportunity
405-1 Diversity of governance bodies andemployees
GRI 409: Forced orCompulsory Labor
Management plan
GRI 413: Local
Communities
Management plan
GRI 414: SupplierSocial Assessment
414-1 New suppliers screened under socialstandards414-2 Negative social impacts in the supplychain and actions takenGRI 416: CustomerHealth and Safety
416-1 Assessment of the health and safetyimpacts of product and service categories
GRI 417: Marketing
and Labeling
417-1 Requirements for product and serviceinformation and labeling
GRI 418: Customer
Privacy
418-1 Substantiated complaints concerning breach-es of customer privacy and losses of customerdata
GRI 419: Socioeconomic
Compliance
419-1 Non-compliance with laws and regula-tions in the social and economic area
8.0 Supporting Public
Welfare for a BetterFuture
4.0 Strengthening Gover-
nance for SustainableOperation
6.0 Fostering People-Ori-
ented Growth Together
None
None
Thank you for reading the 2023 ESG Report of Appotronics. In order to improve the activities of Appotronics in theenvironmental, social, and governance areas, and further enhance our ability on sustainable development with betterdisclosure of valuable information to stakeholders and greater ful?llment of social responsibility, we sincerely lookforward to your valuable comments and suggestions towards our work and reports.You may ?ll out the feedback form and send it to the following email: csr@appotronics.cnYour informationName:
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Your evaluation of the Company’s ful?llment of ESG responsibilities:
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Readers’ Feedback
Appotronics Corporation Limited,2023 Environmental Social and Governance (ESG) Report
Message fromthe Chairman
AboutAppotronics
Anchored in TechnologyPropelled by Innovation
Practicing ESG ThroughResponsible Management
Eco-Friendly Practices forGreen Development
Supporting Public Welfarefor a Be?er FutureQuality Safeguarding in NewManufacturing Endeavors
Fostering People-OrientedGrowth TogetherStrengthening Governancefor Sustainable OperationAbout This Report
Appendix
6.0 Fostering People-Ori-
ented Growth Together
6.0 Fostering People-Ori-
ented Growth Together
6.0 Fostering People-Ori-
ented Growth Together
5.0 Quality Safeguard-
ing in New Manufactur-ing Endeavors
5.0 Quality Safeguard-
ing in New Manufactur-ing Endeavors
5.0 Quality Safeguard-
ing in New Manufactur-ing Endeavors
5.0 Quality Safeguard-
ing in New Manufactur-ing Endeavors