Contents
01 03 08
OpeningLongcheerin 2023ESG Strategy and MechanismAn Honest and Trustworthy Issuer
About the Report 01 About Longcheer 03 ESG Strategic Models and Sustainable
Development Goals (SDGs)Message from the Chairman
2023 Performance and Progress Highligh
ESG Governance System
Materiality Analysis
External Recognition and Awards 07
02 Company Development Milestones
A Protector of Customers'Benefits
OS
Promoting Development based on Innovation 23
Puing Quali Fir and Demonrating Our Value 26
Building Satisfactory Customer Relationship 29
A Practitioner of Green DevelopmentA Transmier of Public Welre Value
Impving Corporate Governance
Advocating Responsible Business Practices
Ensuring Information Security
EndingCombating Climate Change Actively
Creating Green OperationsInnovating Green Products
Building a Satisfied Global amPromoting Responsible ProcurementManagement
ESG Key Performance Indicator
GRI Standards Index
39 Reader Feedback 70
Becoming an Excellent Corporate Citizen 59
Enhancing Environmental Protection 40
Awareness
About the Report
Reporting Basis and Principles
The sustainability report is issued by Shanghai Longcheer Technology Co., Ltd. Adhering to the principle of"Materiality, Quanti?cation, Balance, and Consistency", the report discloses the philosophies, major progress,achievements, and future plans of Shanghai Longcheer Technology Co., Ltd and its subsidiaries in terms ofenvironmental, social, and governance performance, with a time span from January 1, 2023, to December 31,2023. For any inconsistency, it will be explained in the speci?c content.This report is published in Chinese and the English version is a translation of the Chinese version. In case of anydiscrepancy between the English version and the Chinese version, the Chinese version shall prevail.
This report is formulated by identifying important stakeholders, analyzing and rating key issues related tosustainable development, making decisions on the report scope, as well as collecting, summarizing, organizing,and reviewing relevant data and materials in the preparation process.This report is prepared in accordance with the following standards and requirements.? Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report(Trial).
? Global Reporting Initiative (GRI) Standards of the Global Sustainability Standards Board (GSSB).? United Nations Sustainable Development Goals (SDGs) and the Ten Principles of the Global Compact.? ISO 26000: Guidance on Social Responsibility.
Scope and BoundariesUnless otherwise speci?ed, the policies, statements, and materials in this report cover the actual business scope ofShanghai Longcheer Technology Co., Ltd and its subsidiaries, which is the same as that of the annual report issued byShanghai Longcheer Technology Co., Ltd.Unless otherwise speci?ed, CNY is the currency unit used in this report.De?nition of TermsFor the convenience of expression and reading, "Longcheer Technology", " Longcheer ", "this company", "the company",and "we" in this report refer to Shanghai Longcheer Technology Co., Ltd and its subsidiaries.Data Source and Reliability StatementAll data used in the report comes from Shanghai Longcheer Technology Co., Ltd and its subsidiaries. The Board ofDirectors of the company is responsible for the truthfulness, accuracy, and integrity of this report.Con?rmation and ApprovalThis report has been approved by the Board of Directors for release.
Access to This ReportYou can access the electronic version of this report through the following website: www.longcheer.com.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Message from the Chairman
Dear shareholders, partners, and friends,The past year has been a remarkable journey for Longcheer, with both challenges and opportunities. Amidst the sluggish global economic recovery, we have not merelymaintained steady growth but also achieved notable progress in fostering sustainable development and circular economy initiatives.Environmental protection is our solemn duty.
Throughout the past year, we have relentlesslyoptimized our product designs, striving to minimizeresource consumption and waste generation. Byintegrating more renewable materials and enhancingproduct recyclability, we have diligently worked tomitigate our environmental footprint. Furthermore, weactively utilize clean energy sources such as distributedphotovoltaics to reduce GHG emissions, thereby layinga robust foundation for our journey towards carbonneutrality.
In social responsibility, Longcheer consistentlyadheres to the concept of harmonious coexistence.We are committed to fostering a safe and healthy workenvironment for our employees and empowering theirpersonal and professional growth through diverseand inclusive policies. Additionally, we actively engagein community outreach and leverage educationaland technological support programs to elevate livingstandards and foster self-sufficiency within localcommunities.
Corporate governance stands as the cornerstone
of a sustainable enterprise. We adhere to the highstandards of corporate governance practices, ensuringtransparency and a sense of responsibility. Ourmanagement team and Board members recognizethat robust governance not only fortifies investorconfidence but also elevates the overall value of ourcompany.
We recognize that ESG assessment is a dynamic and ongoing endeavor, rather than a one-time inspection. Therefore, we have employed a comprehensive approach, integratingdual substantive assessments and both internal and external assessments. This ensures that our practices are continually re?ned, aligning with the highest industry standards.Looking forward, Longcheer remains ?rm in our pursuit of innovation and sustainable development. We keep on exploring new business models and technologies to propel thecircular economy forward. We are convinced that through relentless dedication and innovation, we can generate enduring value for our shareholders and realize positive socialtransformations.Lastly, I extend my greatest gratitude to all our shareholders, customers, partners, and employees who have steadfastly supported Longcheer. It is your unwavering trust andsupport that have fueled our progress on the sustainable development journey. Together, we will embrace an even greener and more sustainable future.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Longcheer was founded in 2002 and is a technology company engaged in the research, development, design, and manufacturing of smart products. With over two decades of industryexperience, the company has grown to become a global leader in providing smart products and services. Its o?erings span smartphones, tablets, AI PCs, AIoT devices, and automotive electronics,among others. Longcheer serves multiple countries and regions, o?ering specialized integrated services to top-tier consumer electronics brands and leading technology companies worldwide.Headquartered in Shanghai, Longcheer operates five R&D centers located in Shanghai, Shenzhen, Huizhou, Nanchang, and Hefei. The company also has manufacturing facilities inHuizhou, Nanchang, Vietnam, and India, ensuring global product delivery capabilities. Additionally, it has branches in the United States, South Korea, Japan, Hong Kong, and Singapore.Looking ahead, Longcheer will continue to focus on the smart products sector, dedicating itself to technological and product innovation while enhancing its e?ciency and competitiveness. Thecompany aims to accelerate its digital transformation, develop a comprehensive range of products, lead in autonomous design and intelligent manufacturing, and become a globally leadingsmart products technology enterprise. It is committed to consistently delivering high-quality services to leading global clients and creating greater value for society.
Longcheer in 2023About Longcheer
HongKong,ChinaBranchO?ce
HefeiR&D Center
ShenzhenR&D Center
ShanghaiHeadquarters
andR&D Center
NanchangMFG Base & R&D Center
HuizhouMFG Base &R&D Center
India
MFG Base
Vietnam
MFG Base
USA Branch
o?ce
South Korea
BranchO?ceJapanBranchO?ce
SingaporeBranchO?ce
Global headquarter :
Shanghai, Shenzhen, Huizhou,Nanchang and HefeiR&D centersHuizhou, Nanchang, Vietnam and IndiaManufacturing bases
USA, South Korea, Japan, Hong Kong, China, SingaporeBranches
Shanghai
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Business Data
605.32
Net profit attributable to shareholders oflisted companies
million RMB
418.30
2023 Annual tax payment
million RMB
19,838.90
Total assets
million RMB27,185.062023 Annual revenue
million RMB
Our VisionOur Core Values
Be A Leading Smart Products Service ProviderCustomer CentricInspiring Dedication
Long-term Driven
Our Mission
Create Values Through Technology
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Company Development Milestones
2002
2010
2022
2023
2017
2020
2011
2018
2024
Establishment of the Group
Began transformation of Android smartphone business
Formation of automotiveelectronics business team
Construction of Shanghaiheadquarters buildingstarted
Mass production of multi-category AIoT products
Nanchang Science and Technology Park startedproduction, realizing annual shipments of morethan 100 million unitsAuthorized as the only mainland ODM ofGoogle Wear OS
Listed on the main board of the Shanghai StockExchange in 2024 (stock code: 603341)
2021
Longcheer Hefei R&D Center and Sales CenterProject O?cially LandedHuizhou Industrial Park put into production andfully transformed to ODM
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
2023 Performance and Progress Highlights
? Longcheer'sR&D investment in 2023 reachedRMB1,687.7615
million
accounting for
6.21%
of the operating income.? As of December 31, a total of
patents weregranted worldwide.
? The one-time pass rate of external quality systemaudits reached
100%
.? The annual pass rate of social responsibility auditsby customers reached
100%
.
? The number of employees worldwide reached
11,506
, a
5% YoY increase.? The total training time for the entire staffreached290,194
hours throughout theyear.
? The annual violation rate of the CSR red line by
suppliers was
.? Achieve
100%
avoidance of conflict mineralsuse.? The annual donated funds for public welfareprograms reached RMB
536,600.
? The company's independent directors
accounted for
33.33%
.
? The annual coverage rate of the training on
business ethics reached
100%.
? The number of major information security
breaches of the year was
0.
? ISO27001-certified operation areas reached
80%.
? The company's total GHG emissions (scope 1 and
scope 2) were equivalent to
82,192.86t CO
e.
? The company realized100%quali?cation rateof pollutant discharge.? The comprehensive utilization rate of the company'sgeneral industrial solid wastes reached
90%.? The company conducted
special environmentalprotection training sessions, with a training passrate of100%.
A Protector ofCustomers'Bene?ts
An Honest andTrustworthy Issuer
A Transmitter ofPublic Welfare
Value
A Practitioner of
GreenDevelopment
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
External Recognition and Awards
"Outstanding Achievement Award of theYear 2023" of Hongmei Road SubdistrictO?ce of the People's Government of Xuhui
District, Shanghai
February 2023 - Hongmei Road Subdistrict
O?ce of Xuhui District
2023 Top 500 Enterprises of China'sManufacturing Industry (Ranked 373
rd)
September 2023 - China Enterprise
Confederation, and China Enterprise
Directors Association
Samsung Outstanding Contribution Awardfor S&OP Delivery of the Year 2023
December 2023 - Samsung Group
Excellent Entrepreneur of Minhang Districtof the Year 2023 (Awarded to Mr. DuJunhong, Chairman of Longcheer)February 2024 - The People's Government of
Minhang District, Shanghai
2023 Top 100 Enterprises of Shanghai's
Software and IT Service Industry
November 2023 - Shanghai MunicipalCommission of Economy and Informatization
Lenovo Outstanding Serviceability Award
of the Year 2023May 2023 - Lenovo Group
2023 Top 100 Enterprises with the ICTCompetitiveness (Ranked 48
th
)
September 2023 - China InformationTechnology Industry Federation
Vivo Best Delivery Award of
the Year 2023December 2023 - Vivo Mobile
Communications Co., Ltd.
Special Contribution Award of the Year
2023 of Shanghai Service FederationMarch 2024-Shanghai Service Federation"Zhangjiang Star" Growing Enterprise of
the Year 2023January 2024 - Shanghai Promotion O?cefor the Construction of the Science and
Technology Innovation Center
2023 Shanghai Top 100 PrivateManufacturing Enterprises (Ranked 6
th
）2023 Shanghai Top 100 EmergingIndustry Enterprises (Ranked 14
th
)2023 Shanghai Top 100 Private
Enterprises (Ranked 22
nd
)September 2023 - Shanghai EnterpriseConfederation, Shanghai Entrepreneur
Association, and Jiefang Daily Press
2023 Shanghai Top 100 Manufacturing
Enterprises (Ranked 17
th
)2023 Shanghai Top 100 Enterprises
(Ranked 60
th
)
September 2023 - Shanghai EnterpriseConfederation, Shanghai Entrepreneur
Association, Jiefang Daily Press,and Shanghai Federation of Industrial
Economics
Honor Core Partner Gold Award of
the Year 2023
January 2024 - HONOROPPO Best Project Quality Award of
the Year 2023November 2023 - OPPO
Xiaomi Excellent Quality Award of
the Year 2023
March 2024 - Xiaomi Group
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
ESG Strategy and MechanismESG Strategic Models and Sustainable Development Goals (SDGs)Upholding the mission of "Create Values Through Technology", Longcheer adheres to "Long-term Driven" and has establishedthe ESG strategic framework from three layers:
? Adhering to the "Customer Centric" principle, Longcheer takes innovation as the driving force to provide customerswith leading solutions and takes quality as the safeguard to ensure product stability and reliability. Longcheergrows together with customers through quick responses and high-standard audit reviews.Core layer:
? Longcheer contributes to the development of 13 United Nations SDGs by making efforts in ESG in asystematic, scienti?c and standardized manner, making its contributions as an enterprise.
Impact layer:
? Governance: Longcheer has established a series of transparent operational processes and decision-making
standards through a rigorously defined governance system and business ethics system, ensuring integritymanagement.? Social: Longcheer builds a globally satisfied team and promotes responsible purchasing management and theful?llment of the mission of "Create Values Through Technology" as a good corporate citizen, sharing scienti?c andtechnological achievements.? Environmental: Longcheer strives to combat climate change and promotes environmental sustainability through
green products and green operations to create a beautiful landscape.
Intermediate layer:
CustomerandInnovationSo
ci
al
:
Sharing
Environmental:
Sustaina
bi
lity
Governance:
Integrity
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
ESG Governance SystemMateriality AnalysisIn 2022, Longcheer established its ESG Committee to implement the value of "Long-term Driven", to build sustainabledevelopment competitiveness, to reduce operational risks, and to improve the satisfaction of stakeholders. The ESGCommittee is responsible for the overall ESG strategy, resource guarantee and strategic planning of Longcheer, andis responsible for de?ning the ESG management plan and baseline with market development foresight. The ESGCommittee meets from time to time to discuss and make decisions on the company's sustainability topics. The ESGCommittee is supervised and directed by the company's Board of Directors.
In order to fully understand the focus of stakeholders and to respond to the actual demands of stakeholders in theprocess of operation and development, Longcheer took into full account in?uence factors in many aspects and carriedout materiality evaluations, to continuously increase ESG management e?ciency.
In 2023, the company set up the list of topics for the year 2023 following the materiality identi?cation procedures andinvited its management and employees, governmental agencies and regulators, investors, customers, suppliers, mediaand social organizations to prioritize the topics through questionnaires. During the process, the company received 1,018valid questionnaires, ?nally identi?ed 26 ESG topics that have a signi?cant impact on Longcheer and stakeholders, andprioritized them based on the impact degree.The ESG Committee comprises senior executives from various departments including Quality, Human Resources,Manufacturing, Procurement, and Operations, with the General Manager serving as the chairperson. To ensure thee?cient functioning of the ESG Committee, an ESG Committee Executive Group has also been established, responsiblefor the execution, coordination, and follow-up of ESG's daily tasks.
ESG Committee
Audit Team
HR Executive
Team
ManufacturingExecutive Team
OutsourcingExecutive Team
Supply ChainExecutive Team
Legal A?airs
Team
Strategy andMarketing Team
Business Ethics
Team
Management
Executive
Identi?cation
Survey
Sequencing
According to the corporate strategy, industry development, demands of stakeholders,international standards, and outstanding cases in the industry, Longcheer identi?edand determined the list of material topics for the year, which covers environmental,social and governance.Longcheer designed a survey questionnaire focusing on topics in the list, invitedstakeholders to evaluate the importance of such topics, and described its expectationsfor ESG e?orts through open-ended questions.Based on the analysis of survey results, the corporate strategy and external expertopinions, Longcheer de?ned the importance ranking of topics and formed the Matrix ofMaterial Topics, which was used as a basis for its ESG management and planning andinformation disclosure priorities.
Materiality Evaluation Process
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Environmental topics
Social topics
Governance topics
Combating climate change
Technology R&D and innovation
ESG governance framework
Net-zero target and pathway
Intellectual property protection
Business ethics
Energy managementEmissions management
Product quality
Internal control and riskmanagement
Product safety and environmentalProtection of customers' rights andinterestsGuarantee of employees' legalrights and interestsEmployee health and safety
Waste management
Employee complaint and communication
Anti-corruption and anti-bribery
Water resources and water risk management
Employee training and capacity building
Information security and privacy protection
Promotion of R&D and design of green products
Employee bene?ts and assistanceResponsible purchasing and supplier CSRmanagementSupplier empowerment and growth supportCon?ict minerals managementPublic charity
Importance to Longcheer
Importance to stakeholders
Matrix of Importance Analysis on ESG Topics of Longcheer for the Year 2023
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Stakeholders Communication and EngagementLongcheer attaches importance to stakeholders' concerns and needs, maintains comprehensive and sincere communication with stakeholders in many ways, and responds to their concerns.
? Investors
? Exchanges, securities supervisioncommittees and other regulators? Potential investors? ESG rating agencies
? Operators? Brand clients
? All employees? All suppliers of the company? Targeted aid-receiving regions
? Universities and researchinstitutions
? Media? NGO? Industry associations? The company's businesses andfundamentals
? Long-term development planningand ?nancial performance, and ESGperformance
? Corporate governance and risk
control
? Communication and interaction
among investors
? Legal and compliant operation? ESG-focused risk management? Stable and healthy investmentreturns
? Excellent product performance? Information security and privacyprotection? Green product standard? Timely and e?cient customerservices? Overall ESG performance
? Compensation and welfare? Abundant capacity building? Open and transparent development
channels
? Stable enterprise development? Workplace health and safety
? Fair and transparent selection
procedures
? Stable ?nancial performance and
payment policy
? Long-term and stable partnership? Fair, just, open and transparent
procurement environment
? Contributing to the sustainable
development of communities
? Sharing enterprise development
achievements
? Good cooperative relations? Sharing corporate experience and
practice timely
? Transparent information
communication and sharing
? Common development of the
industry
? Regular information disclosure? General meetings of shareholders? Investor survey? Telephone and email for communication
? Regular information disclosure? Industry conferences? ESG rating
? Pre-sales communication? After-sales service? Routine communication (e.g., customer
visits)
? High-quality exhibitions? Third-party training? Client audit
? Online communication platforms? Employee complaint hotlines? Employee sharing service center? Employee joint mediation center? Public HR service email
? Supplier training? On-site audit and communication? Regular visits
? Public welfare activities
? Regular communication andfeedback
? Project cooperation? O?cial website, o?cial accountsand other open channels
ShareholdersCapital marketCustomersEmployeesSuppliersCommunities
Social organizations (e.g., media,NGOs and industry associations)Composition of
Stakeholders
Communicationand ParticipationModes
Concerns ofStakeholders
Representatives
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Our Progress:
The company held one general meeting of shareholders, three meetings of the Board ofDirectors and three meetings of the Board of Supervisors throughout the year.The signing rate of theLongcheer Code of Business Conduct for Employees, Integrity
andSelf-discipline Commitment LetterandSupplier Corporate Social ResponsibilityAgreement was up to 100%.Longcheer obtained the ISO 27001 certification, covering core divisions such asLongcheer, Longcheer Electronics (Huizhou) Co., Ltd. and Nanchang LongcheerTechnology Co., Ltd.
Our Target:
A 100% coverage rate of training on information safety awareness throughout the year,and a 100% confidentiality agreement signing rate.No major information security incidents throughout the year.
Improving Corporate GovernanceBuilding a Compliance Governance Framework
Longcheer, in strict accordance with the provisions of theCompany Law, theSecurities Law, the Articles of Association
and other laws and regulations, as well as the requirements of normative documents, constantly improves thecorporate governance structure and further standardizes business operations, enhancing governance capability.
In 2023, the Board of Directors held three meetings, and all directors attended those meetings on time. TheBoard of Directors operated according to law, and the directors performed their due duties and obligations ingood faith, without any violation of laws or regulations.During the year, the Board of Directors convened and organized one general meeting of shareholders,including one annual general meeting of shareholders. According to the Company Lawand the requirementsof theArticles of Association, the company's Board of Directors earnestly implemented the resolutionsadopted at the general meeting of shareholders with the resolutions and authorizations of the Board ofShareholders.The Board of Directors has four special committees, including the Strategic Development Committee, AuditCommittee, Remuneration and Appraisal Committee and Nomination Committee. During the reporting period,the Strategic Development Committee convened for two meetings, deliberating and adopting two resolutions;the Audit Committee convened for two meetings, deliberating and adopting 15 resolutions; the Remunerationand Appraisal Committee convened for one meeting, deliberating and adopting one resolution; and theNomination Committee convened for one meeting, deliberating and adopting adopted one resolution.In 2023, the Board of Supervisors held three meetings, and all supervisors attended those meetings on time.
The Board of Shareholders, Board of Directors, Board of Supervisors and management operate in a standardizedmanner, and the convening, holding, voting procedures and decision-making authorities of all previous meetingscomply with the provisions of the China Securities Regulatory Commission and the Shanghai Stock Exchange. Theresolutions of the Board of Shareholders, Board of Directors and Board of Supervisors are legal, valid, and e?ectivelyimplemented.General meetings of shareholders
Board of Supervisors
Board of DirectorsBoard of Directors Office
Strategic Development Committee
Audit CommitteeNomination CommitteeRemuneration and Appraisal Committee
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Ensuring the Professional Performance of Members
Protecting the Rights and Interests of All Shareholders
For the election and appointment of the Board of Directors, Board of Supervisors and independent directors, Longcheer elects the members from the perspective ofoccupation, educational background, professional title, detailed work experience and part-time jobs, to ensure that their professional competence can guarantee theire?cient performance of duties.The candidates of independent directors shall have basic knowledge of the operation of a listed company, be familiar with relevant laws, administrative regulations,departmental regulations and other normative documents, and have at least ?ve years of work experience in the law, economy, ?nance and management or otheraspects necessary to perform the duties of an independent director, with independent director qualification certificates obtained in accordance with relevantregulations.
Longcheer establishes a corporate governance structure that ensures all shareholders fully exercise their rights and enjoy equal status, and minority shareholders enjoyequal status. According to theArticles of Association, the company shall give prior written notice before convening a general meeting of shareholders, and inform allregistered shareholders of the matters to be deliberated at the meeting, and the time and place thereof. A shareholder (including a shareholder's proxy) may exercisehis/her voting rights according to the number of voting shares he/she represents. The company shall provide convenience for shareholders to participate in a generalmeeting of shareholders and fully re?ect the opinions of minority shareholders.The company formulated aCode of Conduct for Directors, SupervisorsandSenior Executives, which explicitly states that the company's directors, supervisors andsenior executives shall be honest, exercise their powers for the bene?t of the company and all shareholders faithfully and diligently, and avoid con?icts of interest withthe company and all shareholders; in case of any con?ict of interest, they shall place the interests of the company and all shareholders above their own interests andshall not harm the legitimate rights and interests of investors, especially the medium and small investors.
Composition of the Board of DirectorsUnit2023Number of directors
Person
Number of male directors9Number of female directors0Number of directors with risk management expertise (including accounting and legalknowledge)
Number of independent directors3
In 2023, the company's directors, supervisors and seniorexecutives diligently and conscientiously fulfilled the rightsand obligations conferred by theCompany Lawand theArticlesof Association, ensuring the safe, stable and sustainabledevelopment of the company. Independent directors performedtheir duties independently and impartially, fully understood theoperation of the company, and urged the company and the Boardof Directors to operate in a standardized manner, effectivelysafeguarding the legitimate interests of investors.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Advocating Responsible Business Practices
Ensuring the Compliant Operation of Enterprises
Business ethics reflects society's higher expectations of enterprises, including integrity, transparency and fairness.Especially in the context of the rapidly changing economic environment, increasing external uncertainties andincreasing public expectations of enterprises, restricting corporate operations through responsible business is essentialto the long-term success of enterprises and the overall well-being of society.
Longcheer established a risk management and control system consisting of three lines of defense, including BusinessManagement and Process Owner, Internal Control Department/Process Management Department, and Audit andSupervision Department.
Business management and processowner
Internal Control Department/Process Management Department
Audit and Supervision Department
To solve 95% of problems, ensureprocess compliance, and implementprocess accountability.
To promote and empower themethodology for integratedmanagement of high risks acrossall processes and ?elds.
To conduct an independentassessment and cold deterrenceof risk and control results throughaudit investigations.
Improving Internal Audit and Internal Control Management
To strengthen compliant operations and e?ectively control relevant risks, the company sets up an independent InternalControl Department and Audit and Supervision Department, as well as an Operational Management Department undereach operating department. The Audit and Supervision Department operates independently and reports directly to theChairman.The company divides internal audits into ?nancial audits, internal control audits, responsibility audits, special audits,and other audits authorized by the Audit Committee. The Audit Department may carry out audits through site audits,submission audits, pre-audits, post-audits, follow-up audits, self-service audits and joint audits, and review the relevantdocuments throughout the process without approval restrictions. The Audit Department may conduct special audits forproblems found in audits to achieve closed-loop management. At the end of each year, the Audit Department formulatesthe audit program for the next year according to the internal control and audit deployment and submits it to the Chairman(Audit Committee) for approval before implementation. O?-plan audit projects shall be submitted to the Chairman (AuditCommittee) for approval and then implemented by the Audit Department.In 2023, the company made great progress in internal audit and internal control, successively issued theInternal AuditSystem, Supervision System, Business Red-line Management Regulations, Internal Control Risk Identi?cation Process,Internal Control Evaluation Process, Internal Control Manual,and updated 16 implementation rules and group risk maps,continuously promoting risk identi?cation in IFS, HR and MSM processes.First Line of Defense: Business
Second Line of Defense:
Internal Control and Process
Third Line of Defense: Audit
and SupervisionRisk control subject:Risk control subject:
Risk control subject:
Functions and duties:Functions and duties:
Functions and duties:
To establish a solid barrier for the healthy operation of the company. In 2024, the company will complete the internalcontrol evaluation of all business modules, and integrate the annual audit plan into the internal control evaluation, tofurther improve work e?ciency and expand resource sharing.
70%As of December 31, the companyhad recerti?ed
In 2023, the companycompletedaudit projects
and updated
process systemsthrough this process process systems
added
of identi?ed problems
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Building a Transparent Operation EnvironmentLongcheer has been committed to creating a transparent operation environment and building a clean and honestbusiness ecosystem. Longcheer has become a member of the Trust and Integrity Enterprise Alliance since 2022,guaranteeing the enterprise's high-quality development.
Building a Corruption-free Business Ecosystem
Honesty and integrity are the core of Longcheer's business ethics. The company formulated theLongcheer Codeof Business Conduct for Employees, Business Red-line Management Regulations, Guidelines on Accountability forBusiness Breaches, Guidelines on Accountability for Economic Transactions,Gift Management System, Con?dentialityManagement SystemandWhistleblowing Management Systemto regulate and constrain illegal acts such as corruptionand bribery.In 2023, the company carried out publicity, training, reporting accountability and case warning through LongcheerGuardian, email and other channels, development of a clean governance culture, making the belief in compliancedeeply rooted among employees, and required all employees to sign and comply with theLongcheer Code of BusinessConduct for EmployeesandIntegrity and Self-discipline Commitment Letter.
Improving the Professional Skills of AuditorsTo ensure continuous optimization and improvement of the capacities of internal auditors, the company organizedthe Gaodun Training - Risk-oriented Internal Audit Practicein 2023, invited excellent business consultants to conductinternal training, and conducted internal reviews on relevant cases after finishing the training, ensuring internalauditors learn what they have learned.
the company carried outinternal training sessionsauditors participating in
the training
with a total of
100%
with a trainingcoverage rate of
a training duration of
hours
The company actively organized employees to participate in external training, and 2 auditors participated in externalon-site training onRisk-oriented Internal Audit Practicesand online courses given by excellent consultants in 2023,with a training duration of 16 hours throughout the year.
Whistleblowing and Informer ProtectionLongcheer encourages internal and external stakeholders to report employees' violations in a true and effectivemanner, to participate in supervision, and to create an honest and transparent business environment. The company'sAudit and Supervision Department is the functional department that receives reports. After the company receives therelevant report, the Audit and Supervision Department will designate an investigator to get in touch and communicatewith the informer within twenty-four hours and to ?le the case if the violations are con?rmed to be true. After ?ling thecase, investigators will start the investigation and evidence collection within three working days based on the reportedclues.To ensure a just and fair investigation, Longcheer tries its best not to designate employees who have interestrelationships or con?icts of interest with the parties under investigation to participate in the investigation and evidencecollection.
For suppliers and other external partners,the company promoted the signing of theSupplier Corporate Social ResponsibilityAgreement, and the signing rate was 100%in 2023.
100%
In 2023, the signing rate of theSupplier Corporate SocialResponsibility Agreement wasIn 2023,
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
On the other hand, we require that the informer shall be practical and realistic and bear responsibility for theauthenticity of the reported violations or suspected violations and that the informer shall not fabricate facts to conductmalicious reporting, and shall cooperate with investigators to ?nd out the facts.In 2023, the company received 33 reports and ?nally achieved a 100% veri?cation closure rate.Reporting method: An informer may report to the Audit and Supervision Department by o?cial documents, letters,faxes, interviews, phone calls, e-mails or other means by himself/herself or by others entrusted by him/her.Email for integrity supervision: audit@Longcheer.com.On the other hand, Longcheer places the interests of whistleblowers at the forefront, implementing multiplemeasures to safeguard their rights and ensure they do not su?er retaliation.For any informer who does not want to disclose his/her real name, the company can make up a name instead ofthe real name and identity of the informer to contact the Audit and Supervision Department, and to understand theinvestigation and processing results of the clues and rewards.The process of complaints adopts the avoidance system. Where the investigator accepting the report has an interestin the complaint or the person being reported, he shall withdraw.All personnel who are involved and participate in the handling of complaints are obliged to strictly keep secretsand not disclose information about the informer and investigations. Except for the immediate leader of theinvestigators, no one shall inquire about the relevant information.
Fair Competition and Anti-monopolyLongcheer strictly adheres to theAnti-Unfair Competition Law of the People's Republic of China, the internationalAnti-trust Law, the EUCompetition LawandAnti-Monopoly Law, and other relevant laws and regulations to ensure that itsbusiness operations are legal and compliant. We ?rmly eliminate unfair competition and monopolistic practices andactively maintain market order and a fair competitive environment. We are committed to upholding the principles offair competition in all business activities, not engaging in any monopolistic or unfair competitive practices, and activelyencouraging, supporting, and protecting all organizations and individuals in supervising such behaviors.To deepen employees' understanding of fair competition and anti-monopoly, the company disseminates relevantknowledge through various forms such as new employee orientation training and ongoing education for currentemployees, ensuring that each employee can comprehend and uphold the company's commitment to compliance. In2023, the company had no legal disputes involving monopolistic and unfair competitive practices.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Ensuring Tax Transparency and ComplianceTax compliance is essential to maintain legal order, ensure tax fairness, enhance corporate credibility, manage risks, improve transparency,and safeguard the long-term stable development of enterprises.Longcheer has an excellent performance in tax compliance and corporate credit management and has been rated as a Class A taxpayerin tax credit rating for many consecutive years, demonstrating the company's excellent performances in tax compliance and qualitydeclaration, as well as its high standards for ?nancial management, tax transparency and social responsibility.Strengthening Tax Compliance
Optimizing and Improving Professional Abilities
Longcheer established a permanent tax function, which covers the management of tax operations, tax planning, related transactions,tax compliance and tax risks, and is responsible for declaring and auditing the Group's taxes, improving the accuracy of declarations,conducting tax-related statistics regularly, ensuring timely provision of data required for information disclosure, and developing andimplementing the Group's transfer pricing policy. This tax function is also responsible for carrying out policy study and training andstudying changes in international tax policies, to ensure global compliance of business operations.In terms of the construction of institutional systems, processes and mechanisms, Longcheer formed over 20 management processes anddocuments, fully covering the declaration of various taxes and business planning management. For overseas tax management of newlyestablished subsidiaries in Vietnam, Singapore and Japan, the company formulated theOverseas Tax Management System of LongcheerGroup, which explicitly stipulates the duties of tax posts in overseas subsidiaries and tax management posts in Headquarters, ensuringthat overseas subsidiaries can operate in an e?cient and compliant manner under the management of Group Headquarters.In terms of tax risk management, the company carried out the tax soundness inspection of core subsidiaries and formed the relevant taxsoundness inspection reports in 2023.
To continuously improve employees' tax compliance awareness and its tax management, Longcheerprovided high-quality tax courses through the "Institute of Finance and Economics" platform,with topics covering the changes and analysis of the latest tax legislations and policies, tax riskmanagement, compliance requirements, tax planning strategies and international tax issues.Longcheer organized case studies, special lectures and practical operations and drills to enableparticipants to have a comprehensive grasp of the current tax environment, improving their abilitiesto solve complex tax problems in actual business.
5600
the "Institute of Finance and Economics"platform provided
and employees'attendance reached tax-related coursesperson-times
In 2023,
The company's annual tax payment in 2023 was RMB
418.30
million
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Ensuring Information SecurityAs the cornerstone of building trust and order in the digital world, information security not only relates to theprotection of personal privacy but also to the guarantee of corporate reputation and compliance. Strong informationsecurity measures are essential to protect against advanced persistent threats and protect businesses from disruption.So far, Longcheer has obtained ISO 27001 certification, and the certified entities include Longcheer, LongcheerElectronics (Huizhou) Co., Ltd. and Nanchang Longcheer Technology Co., Ltd.Improving the Information Security Management MechanismStrengthening the Information Security Management Structure
As the highest decision-making body of Longcheer's information security system, the Information SecurityManagement Committee coordinates and leads the company's information security management, includingformulating overall strategies, policies and development plans for information security, making decisions oninformation security organization, institution setting and important personal scheduling, deliberating and approvingannual targets, strategies and work plans, examining and approving the relevant investment, budget and systemdocuments, processing major information security incidents and supervising related matters, and supporting andpromoting the implementation of information security.The company's General Manager serves as the convener of the Information Security Management Committee andimplements relevant decisions through the information security management working group, ensuring the e?ectiveoperation of the system. In 2023, the company's Information Security Management Committee held 8 joint meetingson information security and adopted many important resolutions, including the annual "Information Security Month"event, information security audit program for DHI customers in Nanchang, strategy for approval and blocking ofphishing emails, management of department information security o?cers , etc.
Improving the Information Security SystemSo far, Longcheer has developed nearly thirty systems, including management measures, work specifications,procedures and mechanisms, emergency plans, and management regulations and safety requirements for high-risk links, building a relatively perfect information security barrier. Longcheer reviews and optimizes these systemsbased on changes in the internal and external environment and relevant policy updates at regular intervals, ensuringcontinuous improvement of information security management performance.
In 2023, of the company's operational sites achieved ISO 27001 certi?cation.
80%
General Manager
Information Security O?cer
HR systemProcess and
IT system
Purchasing
system
Marketing
system
Qualitysystem
Operating
system
Business departments
(all BUs and R&Dplatform department)Manufacturing
system
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Strengthening the Information Security Guarantee CapabilityEnhancing the Risk Response Capability
In the context of information security risks caused by the wide application of new techniques and products, Longcheerbuilt a perfect response mechanism, e?ectively controlling such risks.
Information Security Management Mechanism Process
The company maintains the effectiveness of security protection through ongoing monitoring and regular riskassessment and monitors network and system activities using automated tools and techniques, timely identifying andresponding to abnormal behaviors or security threats.
Longcheer conducts regular security training and education activities, ensuring that each employeeunderstands and can implement the company's security policies and procedures. Such activities involvetraining on how to identify and handle potential security threats, such as phishing emails and socialengineering attacks.
Longcheer deploys and maintains advanced technical tools and systems, such as ?rewalls, data encryptiontechniques and multi-factor authentication systems, to protect the company's network and data security.These technical safeguards can e?ectively prevent unauthorized access and data leakage.Longcheer implements a strict access control mechanism, including conducting user authentication, verifyinguser permissions, and adopting the Least Privilege Rule, thus reducing internal risks and threats.
Longcheer develops and maintains a comprehensive emergency response plan, including incidentidentification, response, investigation and recovery, as well as responsibility assignment of the relatedpersonnel.
Raising security awareness
Technical safeguards
Access control and management
Emergency response plans
Conduct comprehensive risk assessments at regular intervals to identify potential securitythreats and vulnerabilities. This process includes technical audits, compliance checks, andbusiness continuity planning to ensure that all potential risks are properly managed.Ensure all operations comply with the applicable laws, regulations and industrial standards.This involves not only data collection and processing but also includes reporting and dataprotection to avoid legal risks and potential ?nes.
Provide employees with necessary security training and certi?cation procedures to ensure thatthey have the capabilities to process daily security issues. Training contents include the latestsecurity trends, technologies and strategies.
Carry out internal and external security audits at regular intervals to evaluate the e?ectivenessof existing security measures, and adjust and optimize security strategies based on the auditresults. Audits can help detect vulnerabilities and strengthen security controls.
Keep all security systems and software up to date and conduct regular updates and maintenanceto prevent new threats and vulnerabilities. This includes regular inspection and replacement ofhardware devices.
Risk Assessment Mechanism
Compliance Checks
Employee Training and Certi?cation
Security Audit Process
Technological Updating and Maintenance
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Strengthening Daily Risk Prevention
To ensure the implementation of information security management, the company regularly evaluated the informationsecurity management capabilities of its partners. For key component suppliers, the company conducted regular auditsand evaluated their information security management performance in terms of bonus items (e.g., having ISO 27001certi?cates and relevant capacities and experience) and reduction items (e.g., occurrence of leaks, failure to rectify asscheduled).The company established an information security reporting system open to all employees and external partners whocan report and give feedback on information security issues in an anonymous form, and the reporting channels includedirect communication, feedback on Feishu and o?ine feedback (scan a QR code) of department information securitycontact persons. They can provide information via email (IS@Longcheer.com).
Enhancing the Information Security Awareness of All Employees
Longcheer formulated theInformation Security Guidelines for Longcheer's Employees, helping employees have acomprehensive understanding of the main content and typical cases of information security and enhancing theirsecurity awareness. These guidelines elaborate the company's information security management policies andprinciples and provide the speci?cations for 19 speci?c scenarios in combination with the daily working scenarios ofemployees, such as computer use and email sending, to form a uni?ed and e?ective standard for information security.
The company provided di?erentiated special training on information security, ensuring that all employees receive thetraining on information security:
The company organized information security exchanges with benchmarking enterprises in the industry to broadenthe horizons of information security managers through studies and discussions, ensuring the company's relatedmanagement level is in line with the external level. In 2023, the company organized over 50 exchange and learningactivities.The company attaches great importance to information security supervision and e?ectively protects the interests ofcustomers and the company. In 2023, the company encountered no information security incidents, and both the FPY ofaudits on customers' information security and "yellow zones" and the completion rate of periodic prototype reviewsexceeded 95%, fully achieving the targets of the information security management system.
For new employees
Project personnel who need access to customer areas
For in-service sta?
Information security is an important module of the induction training system, and employees can take apost only after receiving training and passing the examination. So far, all new employees have received thistraining. The company ensured that all new employees sign the con?dentiality agreement and achievedthe target of a 100% signing rate in 2023.
Must receive special training on project information security, with a 100% coverage rate; personnel in keypositions signed a special con?dentiality agreement, with a signing rate of 100% in 2023.
The company organized training on information security from time to time and required employeesto participate in training and pass the examination. In 2023, the company organized and developed 15courses, such as social training on project information security, information security and IT systems, andinformation security training for new employees, and employees' training attendance reached 6,000 times.The company issued more than 4,000 promotional cards and released more than 30 information security-related tweets.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Our Progress:
Longcheer's R&D team had 3,295 members, including 2,357 members with bachelor'sdegrees or above, accounting for 71.53%.As of December 31, 2023, Longcheer had applied for 1,257 patents and owned 687 grantedpatents and 426 software copyrights.The company had no product recalls due to product quality problems.
Our Target:
No less than 95% of an FPY of audits on customers' information security and "yellow zones".
Longcheer, Shanghai Longcheer Intelligence Technology Co., Ltd, Longcheer Electronics(Huizhou) Co., Ltd. and Nanchang Longcheer Technology Co., Ltd. obtained the QC080000hazardous substance management system certification.The company's FFR comprehensive compliance rate is met with the target value.
Promoting Development based on InnovationInnovation is the core competitiveness of Longcheer. We promote the sustainable development of enterprises throughcontinuous technological innovation and management innovation, meeting the changing needs of customers.Building a First-class Innovation Mechanism
Innovation Management and Innovation Ability
To maintain the vitality of innovation and encourage employees to be creative, Longcheer builds a complete innovationmechanism and closely cooperates with scienti?c research institutions and universities to jointly promote technologicalprogress and continuously produce high-quality innovation results, providing more value to customers.In combination with industrial characteristics and customer demands, the company establishes five R&D centers inShanghai, Shenzhen, Huizhou, Nanchang and Hefei, and builds an R&D system and technological innovation mechanismcovering phones, tablets, intelligent wear, AI PC，automotive electronics, AR/VR, smart home and other intelligenthardware products, driving the sustainable development of the company.
The company focuses on the development of leading technologies, constantlyincreases investment in technology R&D resources, and builds technical innovationplatforms. Adhering to independent innovation and intellectual property building,the company actively promotes the development of industry-leading technologies,tackles challenges in industry technologies, and formulates and issues theTechnicalInnovation Management ProcessandInnovation Incentive System.In 2023,Longcheer's R&D investment reached RMB 1,687.76 million, an 11.93% YoY increase.
Longcheer promotes the construction of R&D systems to improve its innovation ability and improves R&D systemsand management processes improve the efficiency of R&D. In 2023, the company completed the construction,implementation and promotion of six modules of IPD, including the process value chain optimization, heavyweightteam, service adaptation, CCB process, standardized operation management and process case mechanism, andsynchronously initiated the process iteration.In 2023, Longcheer set up the 2111 Laboratory, focusing on cutting-edge technology research in key technology ?eldssuch as ergonomics, acoustics, optics, heat dissipation and simulation, and providing technical reserves for productiteration and new category development. The company established the Software Service Business Department and TestCenter Platform Department to build core competitiveness in software development and integration testing, to provideone-stop development and testing services, and to meet the personalized demands of customers, consolidating thecompany's leading position in the industry.In terms of R&D team building, the company introduced more professionals in such key business areas as automotiveelectronics, phones, tablets and intelligent wear in 2023, improving the R&D team's professional ability. As of December31, 2023, Longcheer's R&D team had 3,295 members, including 2,357 members with bachelor's degrees or above,accounting for 71.53%.
1,687.76In 2023, Longcheer's R&Dinvestment reached RMB
million
In terms of innovation incentives, the company formulated an innovation incentive system for R&D personnel andcontinuously optimized it based on the Innovation Incentive Standards. In 2023, the company reviewed the technologicalinnovation results on a quarterly basis, declared 325 technological innovation results, and awarded 232 prizes throughoutthe year, e?ectively stimulating the innovation vitality of R&D personnel.
71.53%
accounting for
3,295Longcheer's R&D team hadmembers
2,357includingmembers with bachelor'sdegrees or above
As of December 31, 2023,
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Intellectual Property and Patent Portfolio PlanningStrengthening Industry-university-research CooperationLongcheer fully realizes that intellectual property and patent portfolio planning is an important strategy to protect innovationachievements and improve market competitiveness. For this purpose, the company establishes a complete intellectualproperty management system and obtains the GB/T 2940-2013 enterprise intellectual property management systemcertification. The company implements risk control of technical secret disclosure and conducts strict intellectual propertyexaminations on suppliers to eliminate high-risk suppliers, avoiding potential infringement risks.The company conducts training on patent information security for R&D personnel at regular intervals to enhance the awarenessof the protection of technical secrets and establishes standardized patent application processes to prevent risks of technicaldisclosure through self-inspections on information security and information security investigations of patent application cases.The company explicitly stipulates the requirements for intellectual property protection in thePurchase Agreementto ensurethat the products or services provided by the supplier do not infringe on the intellectual property rights of others and that thesupplier signs aCon?dentiality Agreementto clarify the ownership of intellectual property rights and safeguard the rights andinterests of the technology disclosing party.The company actively manages intellectual property risks in the course of R&D, requires the R&D personnel to regularly retrieveand analyze the relevant patent literature, evaluates infringement risks, and develops strategies accordingly, such as designaround or application for proprietary intellectual property rights. The company uses copyrighted software in its daily work,implements unified registration, management and monitoring to ensure legal use of all the software, regularly checks thesoftware on the o?ce equipment, and timely deletes illegal or unauthorized software.When new employees come on board, the company provides them with intellectual property training to improve their abilitiesto understand and protect intellectual property rights, preventing disputes over the ownership of the patent for innovation andunconscious disclosures of technological secrets or other intellectual property information.
We know deeply that industry-university-research cooperation is an important way to drive innovation. Longcheer hasestablished long-term cooperative relationships with many well-known universities and industry-leading technologyplatforms to conduct technology R&D and talent cultivation, sharing resources and complementing each other's advantages.
In the future, Longcheer will continue to promote technical research and innovation, to build the core technologicalcompetitiveness of hardware and software of the intelligent terminal industry, and to plan more high-value patent portfolios.
1,257
Longcheer had applied forpatents
and ownedgranted patents
andsoftware copyrights
As of December 31, 2023,
Hefei University of Technology, Anhui University, Shenzhen University, Shanghai University, NanjingUniversity of Science and Technology, Nanjing University of Aeronautics and Astronautics, JiangsuUniversity, East China Jiaotong University, Wuhan University of Science and Technology and TaiyuanUniversity of Technology.
Qualcomm, MediaTek (MTK) and Uinsoc.
Cooperative universities:
Cooperative platforms:
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Longcheer's Automotive Electronic Software R&D Team: Balancing Quality andE?ciency, Leading the New Trend in TechnologyLongcheer's automotive electronic software R&D team is committed to developing high-quality intelligentcockpit domain products, including domain controllers, central control screens, armrest screens, vehiclemounts, and in-vehicle wireless charging devices. We use innovative technology to lead industry trends,providing consumers with convenient and safe intelligent cockpit solutions that enhance the cockpit'sintelligence and continuously enrich the driving and riding experience for users.
Innovating Products and Leading the DemandsLongcheer adheres to an innovation-driven development philosophy, continuously innovating its products. On onehand, it is committed to accurately meeting the diverse demands of the existing market. On the other hand, it also lookstowards the future, actively exploring emerging markets, and striving to open up new market spaces, thereby providingcustomers with a richer variety of choices and endless possibilities for development.Longcheer focuses on building product and technology platforms, achieving products that meet di?erent applicationscenarios through various combinations of technologies and functional components. In terms of hardware end productsand core technology research and development, especially in emerging product categories, the company promotesproduct and technology innovation by adopting advanced technology and innovative product pre-research. Meanwhile,the company has carried out a number of industrialization application projects in its business areas, including anautomated testing platform, consumer and industrial-grade AR glasses, and the application of AR HUD technology, whichnot only enhance the products competitiveness, but also help the company to explore new market opportunities.Longcheer's AI PC R&D team focuses on the development of AI laptops, with products including laptops and mini-PCs. Based on the Qualcomm ARM platform, the team has successfully launched the Copilot + PC with AI intelligencecapabilities, providing users with an innovative laptop solution. This product not only breaks through Qualcomm'sguided design in terms of design, achieving industry-leading ultra-thin and lightweight portability, but also improvesenergy efficiency by about 50% compared to traditional laptops. Its powerful NPU computing power makes it apersonalized intelligent assistant for users. In addition, the mini-PC launched on the Qualcomm platform, with its lowerpower consumption and intelligent features, provides users with a better product choice.
? Intelligent Cockpit Domain Controller: Speci?cally designed for the integration of complex automotive electronicssystems, it achieves e?cient data processing and intelligent vehicle management, ensuring system stability andreliability.? Central Control Screen: O?ering a variety of size and resolution options, compatible with diverse interfaces, it meets
the needs of various vehicle models. Manufactured with professional design and production, it complies withautomotive standards.
? Armrest Screen: Designed based on ergonomics, integrating multiple functions, it provides a comfortable and
convenient driving experience.? In-Vehicle Wireless Charger: The successfully developed WPC platform wireless charging product supports rapidadaptation to various power levels and Qi protocols, ensuring charging e?ciency and stability, suitable for a widerange of charging environments.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Putting Quality First and Demonstrating Our ValueWe stick to a high-standard quality management system, keeping improve the performance and reliability of our productsand create greater value for customers through continual quality improvement. So far, Longcheer has obtained ISO 9001certi?cation, and the certi?ed entities include Longcheer, Longcheer Electronics (Huizhou) Co., Ltd., Nanchang LongcheerTechnology Co., Ltd. and Longcheer Meiko Electronics Vietnam Co., Ltd. In 2023, Longcheer experienced no major productand service safety or quality incidents.Product Quality ManagementLongcheer has a strict quality management organization system and a quality control process for product qualitymanagement. The company has strict quality standards and testing procedures in every step from the inspection of rawmaterials to the delivery of ?nished products, ensuring the stability and consistency of product quality.Quality Management System
Supply Chain Quality Management Model
Longcheer has perfect quality management procedures and models, covering product design, production, inspection,etc.Longcheer follows the IPD process and implements a comprehensive quality management model, realizing the qualitymanagement in the full product life cycle from R&D design to delivery to customers. The company assesses risks of newmaterials and new technologies through the Project Risk Assessment Control Form (NUDD) in the design stage, andveri?es the improvement in the trial production stage. The company organizes the R&D team to sum up the experiencefrom historical projects in the project design stage, formingSummary of Lesson Learnwhich helps avoid and solveprevious problems in new projects, ensuring that the company reaches the requirements of terminal quality objectives.Through continual quality management and risk assessment, the company has gained the recognition of customersand good feedback from the market.
Longcheer pays attention to all processes of the supply chain and has clear work arrangements at all stages of theproduct supply cycle.
The company collects and sorts out the basic project information and project plan, trial production allocation,project communication map, model selection list, risk identi?cation, requirements for quality managementactivities, and project requirements in the trial production stage, forms a report for project members, andfollows up the closed loop of project requirements.
The company monitors the suppliers according to the control requirements of the quality plan, andreviews critical materials by stages. For general materials and high-risk materials, the companyimplements the strict review process, and requires risk control measures from suppliers, which is trackedby the supplier quality management (SQM) team. The company forms closed-loop management, ensuringthat the problems are solved in time.
Longcheer sets up the Supplier Quality Management Department and standardizes supplier behaviorby formulating supplier's QR code and managing supplier's quality boundary, ensuring the quality andtraceability of raw materials. The company regularly updates and transmits the quality agreement, and takescorresponding measures for suppliers violating the agreement. The company disposes of nonconformingmaterials based on the exception handling rules to ensure the product quality, including rework and return.
In the stage of project planning
In the stage of raw material procurement
In the development and veri?cation stage
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Strengthening Lean Production
Product Safety Management System
Creating a Culture of Quality
In the practice of integrating lean production and intelligent manufacturing, Longcheer introduced high-efficiencyproduction equipment and management information systems, and realizes the automation and intelligence of itsproduction process, e?ectively improving its production e?ciency and product quality.The company had breakthroughs in key business indicators such as UPPH, per capita points, and SMT OEE. Thecontinual improvement working group greatly promoted the benefits of the improvement proposal, with thecumulative improvement bene?ts of RMB 43.91 million throughout the year, exceeding the target of RMB 35 million.Through the three-tier training and certi?cation system of lean empowerment working group, the company trained agroup of lean talents, providing solid talent support for intelligent manufacturing.The company actively ensured the ?ne quality management and improvement through digital transformation, realizedIT management in intelligent manufacturing and advanced manufacturing, and introduced personnel quali?cations.The company applied E-flag and MES system to bind cases, and realized IT-based training and qualificationmanagement of front-line operators, avoiding quality problems caused by unqualified personnel during onlineoperation and gaining written praise and recognition from customers.
Our product safety management system covers risk assessment, safety test and accident response, ensuring that wecan ?nd out and process product safety problems in time. The company achieves online product tracking in the wholeprocess through the MES system, and accurately records every step from the scanning and entry of raw materials tothe online binding of critical materials in the production process. The system also strictly controls defective productsduring rework and repair, ensuring the transparency and e?ectiveness of corrective actions.Longcheer strictly follows theControl Procedures for Substandard Products, covers the comprehensive tracing andrapid isolation of nonconforming products, classify and dispose of nonconforming products through clear processingprocesses. The company implements the malfunction control mechanism, and takes special management measuresfor products that do not meet the electrostatic requirements, ensuring no impact on the overall product quality. Thecompany manages the HSF (Hazardous Substance Free) nonconforming products by speci?c procedures, meeting therequirements of environmental regulations.Based on the quality culture concept of "quality ?rst, success by quality", Longcheer advocates all sta? to cultivatequality consciousness, and creates a cultural atmosphere in which everyone values quality and participates in qualitymanagement, with the goal of "building a quality operation team - setting objectives - engaging in special projects- realizing continual improvement". In 2023, the company comprehensively promoted the construction of qualityculture from quality awareness, quality capability, special improvement, assessment and incentive, ensuring that thequality concept covered all levels of the company. To continually improve the product quality of the company and theprofessional ability of team members, the company strengthened cooperation with external professional institutions,and invited external institutions to provide training on 6sigma and ISO 14064 for Longcheer quality personnel.
Ensuring Product Safety
Product safety is an important commitment of Longcheer to customers. Longcheer has a perfect product safetymanagement system, and strictly abides by safety standards from design, production to sales, ensuring the safety ofproducts.
In 2023, Longcheer had
no
quality-related product recall incidents.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Product Design Safety
Control of Hazardous Substances in Products
In the stage of product design, Longcheer fully considers the product safety, and reduces the safety hazards of products through reasonable design and material selection.
Longcheer strictly follows environmental laws and regulations, controls and manages hazardous substances in products, ensuring that products meet environmentalprotection requirements and protecting the health of customers and the environment. The company has a perfect and standard control system for hazardous substancesin products, and formulates internal policy documents such as Longcheer Control Standard for HSFandLongcheer Restriction List for ToxicandHazardous Substances,strictly supervising the environmental performance of products throughout their life cycle. In 2023, Longcheer, Shanghai Longcheer Intelligence Technology Co., Ltd.,Longcheer Electronics (Huizhou) Co., Ltd. and Nanchang Longcheer Technology Co., Ltd. obtained the QC080000 hazardous substance management system certi?cation.In the stage of product development, the company designs according to customers' environmental standards, and selects quali?ed suppliers and raw materials. In theproduction process, the company evaluates environmental risks, ensuring that hazardous substances are not introduced into the production process. The company has aperfect product environmental testing mechanism and a list of toxic and hazardous substances, controlling and testing toxic and hazardous substances in materials andproducts and ensuring that products meet all environmental protection indicators before marketing.
The design team of Longcheer pays special attention to the safety of wearable devices for children, and strictly selects non-toxic and hypoallergenic materials, ensuringthat the products meet the safety standards of the North American market, such as CPSIA (Consumer Product Safety Improvement Act of 2008). All new products pass strictenvironmental protection certi?cation before being marketed, such as EPEAT (Electronic Product Environmental Assessment tool) and RoHS (Restriction of HazardousSubstances), which shows the ?rm commitment of Longcheer to environmental protection during industrial design.
We consider product safety from the design. For example, battery safety protection includes battery overheat protection and explosionprotection in the drop test.We introduce the fool-proofing design into the equipment fixture design to avoid harm to the operating staff. We also control theappearance of products to avoid harm to consumers due to burrs.
Early R&D stage
Production stage
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Building Satisfactory Customer Relationship
E?ciently Meeting Customer NeedsWe understand and meet customer needs rapidly and accurately through an efficient customer need responsemechanism. We can provide timely and professional solutions to product customization and service support.Customer Audit and Enabling
Customer Demand Response Mechanism
Longcheer attaches importance to customer audit and feedback.We constantly optimize our products and services through customeraudit, and provide enabling services for customers to help themimprove their competitiveness.
In active response to customers, Longcheer formulatesProduct Quality Improvement Procedures, Handling Proceduresfor Production Quality ExceptionsandClosed-loop Handling Procedures for Customer Problems, and establishes acomplete customer demand response mechanism, ensuring that the company can quickly collect, analyze and respondto customer needs.The company processes customers' problems in time according to the principle of "2485", that is, the ?rst responseis within 2 hours. There should be emergency measures for normal production, and the secondary response shouldbe within 24 hours. The company should make countermeasures and give the third response within 48 hours. Theimplementation of countermeasures, the veri?cation of e?ectiveness and standardization of countermeasures and thefourth response should be within 5 days. Based on this principle, Longcheer, being "Customer Centric", continuallyoptimizes the feedback of response results, ensuring that every service is accurate and rapid, and creating more valuefor customers.In 2023, the company's FFRcomprehensive compliance ratemet the target value.
In February 2023, Longcheer encountered after-sales signal issues in the overseas market, which to some extenta?ected the satisfaction of local customers. After urgent consultation, the company immediately dispatched theafter-sales Field Application Engineer (FAE) to support the local and internal work. Before departure, FAE startedthe third-party resources, prepared a variety of plans, and communicated smoothly with relevant local personnelafter arrival, ensuring the progress of the work, internally supporting FAE work around the clock, and e?ectivelysolving local problems.
Focusing on Customer Feedback and Timely Supporting FAE Work
Annual Customer Audit DataUnit2023Annual customer audits received by the companyNos.21Classi?cation by the audit type Social responsibility auditNos.1 Other auditsNos.20Pass rate of customer audit%100Annual external quality system auditsNos.8Pass rate of annual external quality system auditsNos.8One-time pass rate of external quality system audits%100
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Ensuring Customer Information SecurityThe ?rst principle of Longcheer is to ensure the safety of customer and project information in routine operation.The company formulates theManagement Speci?cation for Information Security of Con?dential Projectsand theManagement Speci?cation for Information Security of Highly Con?dential Projects, de?ning the functional responsibilities andrequirements of information security management speci?cation in the whole process according to the di?erences in information security requirements of di?erent projects, and ensuring the e?ective protection of information security with speci?creward and punishment mechanisms. For highly con?dential projects, the company issues formal documents to clarify the principles of information security management, management organization structure, and related response mechanisms.The information security management cycle covers information security assessment, project approval, import, operation, and decryption, and involves personnel management, information management, protection scheme design, environmentalmanagement, physical management, supplier (critical device) management, de?nition of information security violation level, information security violation behavior, information security punishment system, management cycle and constructionstandards, creating a solid barrier for customer information security.In 2023, the company experienced no incidents of customer information security or privacy disclosure, proving the e?ectiveness of the system.
Building Satisfactory Customer RelationshipLongcheer builds customer relationship by establishing and running the VOC management process, and representativesfrom all ?elds of PDT team obtain the VOC of customers. Through hierarchical management and the rapid and e?ectiveupgrade mechanism, the company solves customers' pain points in a timely and e?ective manner and improves customersatisfaction.Longcheer is committed to ensuring the e?ciency and accuracy of after-sales services through ?ne process management.The company formulates a series of specifications to realize the total management of after-sales technical data fromcustomer demand assessment, data production, release to maintenance.The company particularly emphasizes the close cooperation with customers and demand response in the after-salescustomer service system. Through multi-dimensional internal cooperation, the company can quickly respond tocustomers' after-sales demand, improve customer satisfaction and build a stable long-term cooperative relationship.
Focus on making maintenancemanuals and instruction videosand provide technical trainingservices.
Provide customized software, hardware,structure and packaging solutions, as wellas related technical materials and toolsaccording to the speci?c requirements ofcustomers.
Be responsible for collecting andcoordinating customer needs andensuring the timely developmentand release of after-sales technicaldata.
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OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Our Progress:
The comprehensive utilization rate of the company's general industrial solid waste reached90%.The company realized 100% qualification rate of pollutant discharge, without illegaldischarge of pollutants.The company's GHG emission intensity at the operational level (Scope 1 + Scope 2) was 3.02 tCO
e/ RMB 1 million operating revenues.
Our Target:
The company's water consumption per 10,000 products remains stable, with an annualfluctuation not exceeding ±5%.
The company's recycling rate for general solid waste is stable at 90% (±3%).With 2023 as the baseline year, the company commits to reducing its GHG emissionintensity by at least 3% annually.
Combating Climate Change ActivelyThe climate change is a common challenge around the world. As a leading enterprise in the industry, Longcheer is always committed to continual contributions to global climate governance, and regards actively combating climatechange as its inherent requirement for realizing sustainable development and the responsibility for promoting the construction of human community with a shared future.Building an Organizational Structure of Climate GovernanceAnalysis of Climate Risks and OpportunitiesAccording to the framework proposal in the International Financial Reporting Standards for Sustainability DisclosureNo. 2 - Climate Related Disclosures (IFRS S2), Longcheer identi?es the risks and opportunities of climate change relatedto its own operation, actively formulates and improves climate risk prevention strategies, helping global climatechange governance and comprehensively promoting the company's sustainable development.Longcheer manages related matters of climate change by establishing the ESG governance structure and managementprocedures. We have the process and mechanism of climate-related risk management at the senior management level,de?ning the responsibilities of the management in assessing and managing climate risks, and strengthening climatechange management.The ESG Committee not only regularly reports ESG-related matters to the management of the company, but also isresponsible for implementing the daily management and implementation of climate-related risks and opportunities. Itactively promotes cross-departmental collaboration, guides various departments in identifying climate change-relatedrisks, and formulates and implements proactive and e?ective response measures.Longcheer continues to pay close attention to the impact of climate change on the company's business operations andsystematically organizes and identi?es climate change risks related to the company. To e?ectively address these risks,we have taken a series of targeted measures aimed at enhancing the company's adaptability and resilience to climatechange.
According to the definition of financial risks caused by the climate change, the company divides environmentalrisks into transition risks related to low-carbon economy and physical risks related to the impact of climate change.Longcheer identi?es and analyzes possible important risks and opportunities with reference to IFRS S2 and accordingto its business and industry attributes. With reference to the milestones of "carbon peaking in 2030 and carbonneutrality in 2060" planned by the government of China, the company classi?es the impact duration of climate risksand opportunities into short, medium and long term: 0-5 years for short term, 5-15 years for medium term and 15-30years for long term.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Risk AnalysisOpportunity AnalysisRisk CategoryDe?nition
ImpactDuration
Measures
Physicalrisks
Acute
Sudden extreme weather incidents (rainstorm, typhoon, flood,cold wave, high temperature, etc.), may cause the interruption ofproduct delivery, production, and operation process, leading todelay in product delivery, and reduction of revenue.
Long term
? Check the suppliers' supply locations and routes as well as the correspondingweather forecasts of product delivery approaches and routes, give early warningof extreme weather, and reasonably plan the supplier orders and customerdelivery time.? Timely notify all departments and supervise them in making emergencypreparations according to the meteorological forecasts issued by theMeteorological Observatory.? Check our production and operation sites, summarize historical records of ?oodoutbreaks in these places, and assess the risk of rainstorm and ?ood.Sudden extreme weather incidents (rainstorm, typhoon, flood,cold wave, high temperature, etc.), may threaten the healthof employees, damage the company's physical assets such asbuildings, equipment, and inventory, and increase operating costs.
Long term
? Formulate emergency plans for extreme weather incidents according to actualoperation conditions, and organize personnel for emergency drills regularly.? Regularly maintain infrastructure to improve the risk response capability offacilities.The resource shortage arising from climate change may cause theinterruption of energy supply, thus a?ecting the normal productionand business continuity of the company.
Medium
and longterm
? Continue to pay attention to the energy structure in the operating areas,reduce reliance on a single source by developing and utilizing diverseenergy sources, and implement backup energy supply systems to ensureuninterrupted production and business continuity in the face of potentialsupply disruptions.? Actively promote electricity saving measures, attach importance to thedevelopment and application of energy saving and emission reductiontechnologies, improve energy e?ciency and reduce operating costs.Chronic
Climate anomalies such as global warming and sea level rise willchallenge the long-term stable corporate operation.
Long term
? Continuously monitor the changing trend of chronic risks, plan a reasonable
layout in the stage of site selection and new construction, and consider theimpact of chronic climate risks.
Transitionrisks
Compliance
Emerging carbon emission control laws, regulations, policiesand standards are becoming stricter, which may increase thecompliance cost of the company.
Medium
and short
term
? Pay close attention to climate change, policies and regulations related to
carbon peaking and carbon neutrality, consolidate the internal compliancesystem, and formulate climate response strategies.Regulators have higher requirements for the accuracy of carbonemission data disclosed by enterprises, and non-compliantdisclosure may lead to cost increase.
Medium
and shortterm
? Establish a scienti?c GHG veri?cation mechanism, implement carbon footprintveri?cation and accounting, and improve the quality of data disclosure.
Technology
Low carbon performance of the company's products lags behinddue to its failure to identify and apply green and low-carbontechnologies in time, which may lower product prices or lose someorders, resulting in a decline in revenue.
Medium
term
? Promote green and low-carbon design, introduce green recycling manufacturing
technology and use recycled materials.
? Strengthen green R&D capability and actively carry out industry cooperation.Market
Customers pay more attention to the carbon footprint of ourproducts. If we cannot meet the market requirements for low-carbon products, there may be a decrease in our market sharethus reducing the revenue.
Mediumterm
? Actively develop green and low-carbon products and services to meet customer
needs.
Opportunity
Category
ImpactDuration
Opportunity Description
Energymanagement
Medium andshort term
? The use of renewable energy can help the company
transform its energy structure and reduce operatingcosts.? Introducing new energy-saving technologies
and energy-efficient equipment can improve thecompany's energy efficiency and help the companyachieve green, e?cient and low-carbon development.
Climate
changeadaptability
Long term
? The experience in addressing sudden and prolonged
climate impacts can equip the company withstrong ability to respond to natural disasters andweather changes, guarantee the stability of businessoperations, and obtain customer recognition andlong-term cooperation.
Products and
services
Medium and
long term
? Developing and launching green design and energy-
efficient products and services help the companygain more market shares and customers' favor, andbring more income growth.
? Promoting low-carbon and green practice, makingactive response to the demands of stakeholders,and improving ESG rating performance can help thecompany gain more investment opportunities in thecapital market.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Distributionof Scope 3emissions
Strengthening GHG Veri?cation
Scienti?c and perfect GHG emission veri?cation is the ?rst task of actively combating climate change, andthe company regards the result as the basis for near-zero emission.Longcheer has set up a governance structure for GHG verification in the manufacturing base, and themanagement of the base serves as the veri?cation structure managers. The veri?cation team leader andthe inspection team leader implement and manage the GHG veri?cation in the year.In 2023, Longcheer systematically veri?ed GHG emission sources in the organization boundary accordingto the scope, categories and calculation methods inGHG ProtocolandIPCC Guidelines for National
GHGInventory, as well as the operation control method.In 2023, the company's total GHG emissions at the operational level (Scope 1 + Scope 2) were 82,192.86 tCO
e.
Purchased goods and services 79.36%Capital goods 0.02%
Business trip 0.02%Employee commuting 0.02%Upstream leased assets 0.02%Use of sold products 16.28%Disposition of sold products 0.95%
Upstream transportation and distribution 3.13%Wastes from operation 0.01%Relevant fuel and energy activities 0.20%
annually
Notes:
Scope 1 emissions are direct GHG emissions from sources owned or controlled by the company, Scope 2 emissions are indirect GHGemissions from purchased electricity consumed by the company, etc., and Scope 3 emissions are GHG emissions indirectly caused by thecompany's activities, but not generated by sources owned or controlled by the company.In 2024, the company, based on the GHG verification result in2023, will plan net zero emission, clarify the net zero emissiontargets and paths at the level of company operation and valuechain, set scienti?c carbon targets, and contribute to the globalzero carbon process with practical actions.
GHG Emissions DataUnit2023
Scope 1 emissionst CO
e2,132.17Scope 2 emissionst CO
e80,060.69Total GHG emissions(scope 1 and scope 2)
t CO
e82,192.86GHG emission intensityt CO
e/RMB 1 million operating revenues3.02
3%
With 2023 as the baseline year, starting from2024, the company will reduce its GHG emissionintensity by at least
Additionally, the company conducted a systematic accounting of Scope 3 GHG emissions. The emission sources identi?ed and veri?ed in Scope3 include: purchased goods and services, capital goods, relevant fuel and energy activities, upstream transportation and delivery, wastes fromoperation, business trips, employee commuting, upstream leased assets, use of sold products, and disposition of sold products.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Creating Green Operations
Adhering to the business philosophy of green development, Longcheer continuously pays attention to its environmentalimpact, actively produces green products, promotes low-carbon operation, and gradually facilitates the greentransformation of itself and the industry, thus making contributions to building a beautiful China.Based on the environmental management policy of "observing laws and regulations, preventing pollution, savingresources and continually improving", the company has established a perfect environmental management system,various rules and regulations, ensuring the standardization of management processes, e?ective identi?cation and controlof environmental safety risks. The company is committed to minimizing the impact of production and business activitieson the environment, and has obtained ISO 14001 environmental management system certification. We constantlyenhances environmental management capabilities, improves resource utilization efficiency and reduces pollutantemissions. All the operation sites of Longcheer are located in non-nature reserves, which does not cause significantimpact on the ecosystem during the operation.In 2023, the company had no environmental incidents.Strengthening Energy ManagementLean energy management is an important part for Longcheer to achieve the net zero goal. According to national energypolicies and energy management standards, the company formulated theEnergy Management System Manuals, includingControl Procedures for Energy Management Scheme, Control Procedures for Energy Monitoring and
MeasurementAnalysis, Management Procedures for Energy Review, etc. In combination with the actual situation of production andenergy consumption, the company continuously optimizes its energy use, and improves energy efficiency, ensuringthe realization of energy consumption targets. In addition, the company continually strengthens the construction andcerti?cation of energy management systems, and Longcheer Electronics (Huizhou) Co., Ltd. has successfully obtainedISO 50001 energy management system certification, reflecting our continual efforts and achievements in energymanagement.
Energy Saving and Emission ReductionIn the production process, we give priority to clean technology, keep upgrading equipment, and actively exploreenergy-saving technologies to improve energy e?ciency and reduce operating costs. In 2023, Longcheer implementeda series of energy saving and carbon reducing measures.
Key Energy-saving and Carbon-reducing Actions of Longcheer Manufacturing Bases
? Transformed workshop chillers technically and connected the existing chilledwater system to the grid to reduce the energy consumption of chillers, decreasingthe annual emission by 703 t CO
e.? Recycled the waste heat from air compressors to heat domestic water, reducingthe energy consumption of air energy heat pumps and decreasing the emissionby 1,761.9 t CO
e per year.
? Used a light meter to measure on the spot and adjust the number of illuminationlamps according to the brightness standard, and combined the independent controlof illumination in production and non-production areas to ensure that the lighting iso? when there is no production, which not only meets the production demand butalso e?ectively saves energy, achieving an annual electricity consumption saving of207,924 kWh and an annual emission reduction of 109.31 t CO
e.
? Recycled the waste heat from air compressors to heat domestic water, reducing
the energy consumption of air energy heat pumps, saving electricity consumptionby 1,111,680 kWh and reducing emissions by 584.4 t CO
e per year.
Longcheer Electronics(Huizhou) Co., Ltd.
Nanchang LongcheerTechnology Co., Ltd.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
To assist the company in achieving the emission reduction target, LongcheerElectronics (Huizhou) Co., Ltd. will gradually construct renewable energy projectssuch as chilled water storage system, solar energy system and distributed PVpower generation system.
We lay 1.16 MWp PV power generation panels in the 14,000m
vacant space on the roof of No. 2 Building of LongcheerElectronics (Huizhou) Co., Ltd. We estimate the annual powergeneration of the project to be 1.2 million kWh, and can achievethe reduction of GHG emissions by 765.48 t CO
e.
We install solar heat collection panels in the 1,184 m
space onthe roof of dormitory of Longcheer Electronics (Huizhou) Co.,Ltd. for the daily use in dormitory. We estimate that the projectwill save 5.87 million kWh of electricity consumption andrealize the reduction of GHG emissions by 3,744.47 t CO
e.
Distributed PVpower generation
Solar energy
system
106,283
In 2023, the company recycledpallets throughout the year.
Green LogisticsThe company actively promotes the establishment of a green and e?cient logistics system. While ensuring the quality of logistics delivery, thecompany signi?cantly improves the transportation e?ciency, and e?ectively reduces energy consumption and carbon emissions during logisticstransportation through the strategies of multimodal shipping, optimization of transportation modes and paths, integrated utilization of logisticsresources, and digital operation, achieving a win-win situation of economic and social bene?ts.
By delivering bulky materials directly to the plant and delivering KD port materials directly to the freight forwarder, wereduced the intermediate links e?ectively, thus signi?cantly reducing the transportation mileage. We adopted the stackingtransportation mode if the whole machine less than 1.2 m is shipped, improving the vehicle loading rate and reducing thetransportation trips by 10%.
Since 2023, we have used vehicles meeting National V emission standards for transportation, and adopted100% electric forklifts in warehouses, completely eliminating fuel forklifts.
We reduced the use of disposable packaging by using reusable, easilyrecyclable and degradable packaging materials. We recycled pallets, cornerprotectors, and other packaging materials. In 2023, the company recycled106,283 pallets throughout the year.
Reducetransportationmileage and
trips
Promote greenpackaging
Use low-carbontransportvehicles
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Optimizing Resources UtilizationWater Resources ManagementThe company manages water resources in strict accordance withWater Law of the People's Republic of China, Law of thePeople’s Republic of China on Soil
and Water Conservation, Measures for the Implementation of Water Permit System,andManagement Regulations on Urban Water Conservation. Our water comes from municipal sources, without direct orindirect signi?cant impact on water resources as a result of changes in water taking, consumption, discharge, or storage.The company attaches importance to the protection and conservation of water resources, and reduces the consumptionof fresh water and waste water discharge by water saving and waste water recycling. We regularly comprehensivelyinspect and maintain the water supply system to avoid a waste of water resources and reduce the load to water resourcesdue to production and business activities.
Longcheer Electronics (Huizhou) Co., Ltd. Ranked as a Water-saving Enterprise inHuizhouIn September 2023, Longcheer Electronics (Huizhou) Co., Ltd. was certi?ed as a water-saving enterprise in Huizhouin the year. During establishing a water-saving enterprise, Longcheer Electronics (Huizhou) Co., Ltd. made a feasibleimplementation plan by conducting vigorous propaganda, creating an atmosphere, improving the water-savingmanagement system, and actively promoting water-saving instruments, which achieved remarkable results.Longcheer Electronics (Huizhou) Co., Ltd. improved water management of the plant from four aspects, such asbuilding a water saving group, establishing an energy management platform, testing water balance, publicizingand inspecting water saving.
Chemicals ManagementThe company has formulated theChemicals Safety Management Systemto control hierarchically the product materials,components, ?nished products and chemicals involved in the production process, ensuring that the management processis legal and compliant, and reducing the risk of work safety. The company controls hazardous substances in the wholeprocess by formulatingLongcheer Control Standard for HSFandLongcheer Restriction List for Toxic
and
HazardousSubstances, minimizing hazardous chemicals and reducing environmental pollution and negative impacts throughout theproduct life cycle.Longcheer strictly controls hazardous chemicals from all aspects and in the whole process, and has perfect systems andmeasures from import, procurement, transportation, transshipment, use to waste recycling. The company has formulatedtheEmergency Response Plan for Environmental Emergencies, as well as ?led and registered with relevant governmentdepartments, and regularly conducts drills on the leakage of hazardous chemicals, ensuring timely blocking of pollution,reducing the occurrence of pollution, and guaranteeing the legal and compliant handling of pollutants.To ensure the safety and health of employees, as well as the professionalism of management, all chemicals managementpersonnel of the company shall receive uni?ed training, pass the examination, and work with certi?cates. The companyposts safety warning signs, occupational hazards notification and Material Safety Data Sheet (MSDS) in eye-catchingpositions of all chemicals-related posts to remind employees of safety risks, and provides all workers exposed tochemicals with comprehensive personal protective equipment.In 2023, the company has built a smart ?re protection platform, remotely monitoring the temperature and humidity in thechemical transshipment warehouse with micro sensors. The platform feeds back the abnormal alarm to the ?re controlcenter in real time, e?ectively improving the safety of chemicals warehouse management.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
100%In 2023, the company realized
quali?cation rate of pollutant discharge
Improving Waste ManagementPollutant ManagementLongcheer strictly abides by national and local environmental laws, regulations, and standards, and has formulatedRegulations on Managementof Waste Water, Waste Gas and Solid Waste, Control Procedures for Rainwater Pollution Discharge,andNoise Management Regulationsto
strictlycontrol the waste water, exhaust gas, solid waste and noise generated and discharged by the company. In addition to the usual managementmeasures, the company has also formulated theEmergency Response Plan for Environmental Emergenciesand corresponding managementprocedures, identifying and evaluating environmental factors, as well as formulating emergency response plans for possible environmentalincidents.The waste water generated by the company mainly includes sporadic industrial waste water, domestic waste water and canteen waste water.Quali?ed waste water processors recycle and dispose of sporadic waste water from the production process. Waste water from restrooms and tearooms, after sedimentation in septic tanks, as well as oily and particulate-containing wastewater from the cafeteria, after treatment in grease andgrit separators, is discharged into the municipal sewer system. It is then treated at the sewage treatment plant to meet discharge standards.The exhaust gas coming from industrial exhaust gas in the production process (such as organic exhaust gas from re?ow furnace, welding, gluedispensing, and alcohol wiping), and canteen fume are discharged through exhaust pipes after treatment. The company actively prevents andcontrols waste gas pollution. Through giving priority to low-emission process facilities and green materials, setting up waste gas collectiondevices, and installing puri?cation facilities, the company controls exhaust gas pollution from the source, production process, and end, e?ectivelypreventing and reducing air pollution.The primary sources of noise in the company are the operational sounds of air compressors, nitrogen generators, and air conditioning units. Thecompany achieves sound insulation by environmentally friendly and low-noise equipment, rational layout, a?orestation, etc., and reduces noisethrough optimizing the process, reducing noise posts, and using silencers for power auxiliary equipment, ensuring that the noise reaches thestandard.To ensure that waste water, exhaust gas, and noise at the plant meet the dischargestandards, the company regularly entrusts third-party professional testinginstitutions to monitor pollution sources. In 2023, the company realized 100%quali?cation rate of pollutant discharge, without illegal discharge of pollutants.
Waste ManagementFollowing the pollution control principles of solid waste reduction, harmlessness and recycling,the company continuously strengthens the management of solid wastes, formulatesRegulationson Management of Waste Water, Waste Gas and Solid WasteandWaste Management Procedures,
and disposes of solid wastes in a stand manner. We strictly classify and collect recyclable wastes,hazardous wastes, non-recyclable wastes, and canteen kitchen wastes, ensuring 100% compliantdisposal of di?erent types of wastes.The company comprehensively utilizes general industrial solid wastes from the production process,and the comprehensive utilization rate reached 90% in 2023. The company collects hazardouswastes, stores them at a fixed point, and then hands them over an entity with hazardous wastetreatment quali?cation registered with the Environmental Protection Bureau for treatment.
90%100%In 2023, the comprehensive utilizationrate of the company's general industrialsolid waste wasThe company's compliantdisposal rate for differenttypes of wastes was
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Innovating Green Products
Based on the full product life cycle, Longcheer continues to pursue more environmentally friendly product and packagingmaterials, more durable products, and fewer wastes, e?ciently utilizing and recycling all resources.In the process of product design and R&D, the company pays attention to the selection and innovative design ofenvironmentally friendly materials, and gives priority to sustainable materials such as recyclable, non-toxic, bio-basedand renewable materials. Through modular design and lightweight design, the company extends the service life ofproducts, and reduces wastes and the consumption of natural resources, promoting the development of low-carboneconomy.
We gave priority to recyclable materials which have excellent performance and can be recycled after the end of theproduct life cycle, such as aluminum alloy, stainless steel and post-consumer recycled materials (PCR).Recyclable materials
We strictly screened non-toxic and low-toxic materials to ensure that the products are harmless to both the environmentand users' health during production and use.
Non-toxic materials
We explored and applied bio-based materials like corn-based plastics and bio-based ceramics/leather to reducedependence on fossil materials and the carbon footprint of products.Bio-based materials
The company applies green clean technology, pays attention to the safety, environmental protection and energye?ciency in the process of product production and use, and constantly improves the green and low-carbon performanceof the full product life cycle.
The company effectively reduced energy consumption and carbon emissions inproduct use and manufacturing processes by adopting low-temperature sprayingand fast curing technologies that have low energy consumption and improving theenergy e?ciency of electronic products.
The company e?ectively reduced environmental pollution in the hardwareproduction process by adopting in-mold decoration technology and replacingconventional die-cast aluminum with stamped aluminum for mobile phonehousings.
The company applied environmentally friendly paint in product surface treatmentand coating, significantly reducing the emission of volatile organic compounds(VOCs), and ensuring the durability and beautiful appearance of products.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Enhancing Environmental Protection AwarenessIn recent years, Longcheer has been conveying the concept of environmental protection to its employees by holdingenvironmental protection training and publicity and education activities, promoting green office, and strengtheningexchanges on environmental protection, in order to jointly protect the green homeland.Prioritizing the prevention, prediction, and pre-control of environmental incidents, we popularize knowledge among allemployees regarding the prevention of environmental emergencies, enhancing their environmental protection awarenessand skills. We organize activities to identify potential environmental risks associated with hazardous waste and chemicalsand diligently take corresponding control measures to reduce environmental risks.We provide training in basic environmental protection knowledge during new employee orientation, and we conductspecial environmental protection knowledge training for workshop employees every year to deepen their environmentalawareness. In 2023, Longcheer conducted 15 special environmental protection training sessions, with a training pass rateof 100%.Longcheer strives to create a green and low-carbon o?ce environment, takes various technological and managementmeasures to reduce energy and natural resource consumption in daily office work, actively advocates environmentalprotection culture, and develops employees' green and low-carbon working and living habits.
In 2023, the company conductedspecial environmental protection training sessions
100%
with a training pass rate of
Advocating greencommuting andlow-carbon travel
The company advocates low-carbon travel and encourages employees to givepriority to public transportation, and use trains instead of planes wheneverpossible, especially for train journeys within four hours. The company alsopromotes energy saving and emission reduction for company vehicles,with newly purchased ones all being new energy models, and encouragesemployees to carpool for travel.
The company promotes double-sided printing and reduces color printing toreduce paper consumption, advances the paperless o?ce by implementingtravel applications and expense reimbursement online, facilitates the reuseof packaging cartons to reduce waste, and encourages employees to usepersonal cups to reduce the use of disposable paper cups.
The company encourages employees to save water and electricity and avoidunnecessary resource consumption by posting reminders and implementingelectricity and water-saving measures, such as stipulating the period for usinglights and adjusting hot water supply based on the ambient temperature.
The fresh air system, ambient temperature, etc. of the company's workplacein Shanghai Weijing Center can be automatically adjusted and remotelycontrolled through intelligent control systems, optimizing energy use withouta?ecting normal o?ce work.
Saving water and
electricity andreducing energy
waste
Reducing paperconsumption andpromoting recycling
Improving energye?ciency in smarto?ce space
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Our Progress:
The company successfully passed certi?cation of the ISO 45001 system.The total training attendance of employees in operation positions reached 45,354 times, 100% ofemployees in key positions worked with qualification certificates, and 95% of employees inprofessional and technical positions received training.All quali?ed suppliers of the company signed the corporate social responsibility agreements, and 100%completion of CSR audits for supplier annual review program.The company donated funds of RMB 536,600 to public welfare programs in 2023.
Our Target:
Pass certification of the ISO 45001 system.100% completion of CSR audits for supplier annual review program.
Building a Satis?ed Global TeamLongcheer actively creates an equal, inclusive, harmonious, and win-win working atmosphere that enables everyemployee to maximize their potential, and it grows together with the employees.
Protecting Employees' Rights and Bene?ts
The company has a sound human resources management system and processes in place to effectively protect itsemployees' legitimate rights and interests.
Building a Fair WorkplaceThe company strictly abides by theLabor Law, Labor Contract Law, and other laws and regulations of the countriesand regions where it operates, as well as the human rights and labor requirements stipulated inThe Ten Principlesof the UN Global Compact, theUniversal Declaration of Human Rights, and the International Labour Organization'sDeclaration on Fundamental Principles and Rights at Work, ensuring equal work and development opportunities for allemployees and creating a healthy, safe, and e?cient working environment.The company formulated theLongcheer Code of Business Conduct for Employees. It implements the principles ofgender equality, equality of opportunity, and employee diversity and prohibits any discrimination or differentialtreatment based on race, skin color, religion, gender, age, nationality, genetics, disability, etc. in recruitment andemployment, promotion, remuneration and performance, and daily work as well as any sexual harassment wordsor acts and inappropriate comments, jokes, and behaviors. In case of related incidents, the company shall handlethem seriously according to the related rules and regulations, as well as the management provisions of rewards andpunishments in manufacturing bases. In 2023, the company had no discrimination or sexual harassment incidents.Employees can lodge appeals against discrimination and harassment through the whistleblowing phone number,email, personnel service public email, employee joint mediation center, and 24-hour care hotline, in which case thecompany shall arrange for dedicated personnel to process such appeals and ensure that employees' personal privacyis not breached.
The company prohibits the use of child labor and any form of forced labor, with related requirements communicatedto its suppliers. The company sets flexible working hours according to theGroup Attendance Management System
to meet business and employee needs. The company follows the state'sProvisions on Prohibition of Child Labor
and has internalProvisions on Prohibition of Child Labor and Management of Juvenile Workersin place, based onwhich it conducts related daily management and imposes related requirements. In case of recruitment of child laborby mistake, the company shall immediately stop their work, arrange for dedicated personnel to escort them to theirguardians after con?rming their health, strictly investigate the causes, and seriously deal with responsible personsaccording to laws and regulations. In 2023, Longcheer did not ?nd incidents of forced labor or recruitment and use ofchild labor.Placing a high priority on the protection of female employees' rights and interests, the company adheres to theequality of opportunity for men and women in recruitment, training, and career development. The company hasinternalProvisions on Managing Female Employees during Three Periodsto protect the legitimate rights and interestsof female employees during their pregnancy, con?nement, and nursing periods. The company continues to launchemployee care activities and women's health lectures, provides female employees with legal and compliant maternitybene?ts, and actively promotes their personal development and physical and mental health.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Fair Recruitment of EmployeesThe company avoids employment discrimination risks and ensures the equality of opportunity for job seekers throughcontrol of multiple links in the recruitment process:
Longcheer pledges not to charge candidates any additional fees during the recruitment process. All recruitment-related expenses are budgeted uniformly by the Human Resources System and are covered by the company.
Providing training for all recruiters before recruitment, which covers the definition,identification, and prevention of discriminatory behavior, as well as a presentation andexplanation of related laws and regulations.
Assessing applicants' adaptability and competence from their abilities, knowledge, andexperience in the interview process, with interview questions related to the jobs, andavoiding meaningless discussions on personal characteristics; providing timely feedback onrecruitment results and respecting applicants' willingness in the job allocation process.
Clearly providing the company pro?le and job requirements and expectations in recruitmentadvertisements and materials and avoiding discriminatory language and images anddiscrimination against speci?c groups in such advertisements and materials.
Publicly committing to the principles of openness, transparency, and merit-based recruitmentand strictly protecting the personal privacy information of job seekers in the recruitmentprocess to ensure the equality of opportunity for them.
In terms of talent demand management, the company assesses its position and talent demands every year according tomarket research, business planning, and calculation and analysis results and dynamically adjusts positions and talentsaccording to its actual operations. In terms of recruitment of manufacturing employees, the planning departmentdevelops manpower requirement plans for the next months or every quarter based on business needs, and therecruitment department develops manpower guarantee plans based on manpower requirements and reasonablyallocates resources to meet the requirements of needing departments. In 2023, Longcheer officially stepped into themarket of automotive electronics. The company built a core talent framework for the automotive business, definedtalent portrait and selection mechanisms, and successfully introduced a group of experts and key employees with richexperience and professional capabilities through online recruitment, headhunter recommendations, and internal jobtransfers and promotions, providing a solid talent guarantee for team building and business development. In 2023,Longcheer built an end-to-end organization of nearly 200 people in the area of car cockpit products, with nearly 60 peopleintroduced from the automotive industry.In 2023,
4,247the company recruited atotal ofregular employees
and
the company recruited
3,055including
20%
accounting forof the total recruited
R&D people
employees with disabilities
ethnic minority employees
1,192
male employeesandfemale employees
andnon-Chinese (Mainland China)employees
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Employee Health and SafetyLongcheer attaches importance to the protection of employee health and safety, andcontinues to build and improve the occupational health and safety system to ensure asafe and healthy working environment for employees. Longcheer successfully passedthe certi?cation of the ISO 45001 system in 2023, marking an important step forward inemployee health and safety management and showing its alignment with internationalstandards.To ensure the health and safety of employees, the company established a Work SafetyCommittee and set up a dedicated work safety management team to comprehensivelycoordinate work safety management. All employees of the company from top tobottom signed the work safety responsibility statements to take on work safetyresponsibilities.The company established or improved safety and health management regulations,including theWork Safety Responsibility System, theWork Safety Education andTraining System, theSafety Risk Graded Control System, theOccupational DiseasePrevention and Management System, theEmergency Management System, andthe Environmental and Occupational Health and Safety Management Manual, andcontinuously standardized safety management through the improvement of systemdesign.The company lays emphasis on the development of a safety culture and regularlylaunches activities for all employees, such as ?re drills, ?re?ghting skills competitions,safety knowledge competitions, safety quizzes with prizes, and first aid training, toenhance their safety awareness and emergency response capabilities. The companyorganized 11 emergency drills in 2023, covering chemical spills, falls from heights, foodpoisoning, and ?re emergencies. Based on the themes of National Work Safety Monthand Fire Awareness Month, the company launches corresponding safety educationactivities every June and November. Furthermore, the company actively implements
three-level safety education and special training for employees to comprehensivelyimprove their safety and health awareness. In 2023, Longcheer conducted a totalof 663 safety training sessions, with a total attendance of 35,741 person-times anda 100% participation rate in new employee three-level safety education, fire safety,occupational health, and work safety training.The company attaches great importance to health and safety risk assessment andmanagement, with third-party professional institutions engaged every year to testhazard factors of occupational diseases and the Workplace Hazard Factor Test Reportformed and publicized. The company formulates and implements correspondingcontrol measures against the identified hazard factors of occupational diseases,to ensure continuous improvement and closed-loop management. The companyfurnishes necessary labor protection articles for operators in positions exposed tooccupational hazards and supervises the correct wearing thereof. The companyhas warning signs and occupational hazard notification cards posted in areaswith potential occupational hazards, to remind employees of occupational safetyprotection. The company also regularly arranges pre-job, on-the-job, and post-jobphysical examinations of occupational diseases to ensure employees' occupationalhealth.In 2023, the company completed the evaluation of simultaneous design,construction and operation in cooperation with Jiangxi Ganchang Evaluation TestingConsulting Co., Ltd., covering occupational health pre-evaluation, occupationalhealth protection facilities design, and occupational disease hazard control effectevaluation reports, further improving the professionalism and effectiveness ofthe evaluation. The company also implemented comprehensive potential riskidentification in the past year, with 81 occupational health problems identified andrectified, which effectively prevented and controlled occupational disease risks.
In 2023, Longcheer conducted a total of
safety training sessions
35,741 with a total attendance of
person-times
100%
and a
participation rate in new employee three-level safetyeducation, ?re safety, occupational health, and worksafety training.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
In terms of work safety protectionIn terms of remedies for accidents at workWe take strict protective measures against potential risks such as harmful gases, harmful liquids, mechanical injuries, and noise. We select sites forlarge communal facilities (such as air compression nitrogen generators and central air conditioning units) as far away from living quarters as possible,and use noise reduction facilities to reduce equipment vibration. We set up independent isolation systems, install soundproof cotton in rooms toreduce noise, and require employees to wear noise-reducing earmu?s and earplugs during work. Additionally, the company mitigates the impactof harmful gases and liquids by installing fume and dust puri?ers and providing personal protective equipment. We also set up safety doors, safetylight grids, and other protective measures, while conducting routine equipment inspections to prevent mechanical injuries. At the same time, byimplementing stringent hazardous chemicals management procedures and con?guring safety devices, the company ensures the safety of employeesin various work environments.
We are committed to rapid responses and immediate remedies to ensure timely treatmentfor injured employees. In case of an accident at work, the company shall establish an accidentinvestigation team and strictly follow the accident investigation and handling processes toascertain the cause, formulate preventive measures, and prepare an eight disciplines (8D)recti?cation report.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Employee Training and DevelopmentLongcheer has established a sound training system andcareer ladder so that employees access broader space forprofessional development.Employee TrainingLongcheer adheres to "Long-term Driven" approach in theplanning and development of key talents, achieving mutualgrowth with employees. The company has prepared theOnboarding Guideandthe O?cer Learning and DevelopmentGuideto de?ne the learning requirements for correspondinggroups and prepared theTraining Management Processtostandardize and guide learning and development activities.At the beginning of every November, based on the annualstrategic objectives and the talent development plan,related departments of the company research the annualtraining needs of the Officer Management Department, theOrganization and Talent Development Department, variousprofessional academies, and secondary organizations,and interview senior management for training needs, toidentify skill gaps in various areas and plan targeted trainingprograms.The learning and development system of Longcheer coversnew employee orientation training, management capabilitytraining, professional capability training, project managementcapability training, and operation training.
The company furnishes new employees with training in induction guidance, company processes and systems, cultural values, company strategy layout, product and businessintroduction, and position requirements and assigns a mentor to every new employee to help them ?t into the company and become competent for their positions. The companyprovides production line workers (even if they are not company employees) with the same position skills training and assessment as regular employees to ensure their skill level andwork quality. The company launches the annual "Little Sun" program for new employees recruited from campus, with a two-year path designed for their rapid growth, and enablesthem to quickly grow into key employees in their departments through theoretical knowledge learning, production line training, mentor guidance, and project experience.
New employee orientation training
Two-year Concentrated Growth Path for Little Suns
General capabilities: Newemployees complete learningand pass the assessment ofprofessional quality coursesbefore onboarding.Cultural awareness: Newemployees ?t into Longcheerand build team awareness inadvance by participating incultural activities launchedin community operations.
Production line training: Newemployees are assigned to variousdepartments to participate inone-month position training onthe production line to familiarizethemselves with the businessoperation processes of thedepartments.Cultural training: Includeson-site learning of generalcourses, topic discussions,and other program content.
Mentorship: New employees are helped to quickly ?t intothe company and familiarize themselves with their workand business through one-on-one mentor guidance thatlasts for four to ?ve months.Professional knowledge: New employees completelearning and pass professional knowledge assessmentwithin one week of returning to their positions.Centralized lecturing: New employees in positions inthe same ?eld are fostered centrally in both professionalknowledge and general knowledge.
Project experience: New employees deepen their professionalskills.Centralized lecturing: New employees receive training inprofessional skills in the same ?eld based on the concentrated bestresources of the company.Technical workshops: New employees participate in cross-systemtechnical workshops organized by professional academies, to sharetechnologies and solve problems through co-creation.Results acceptance: The growth of Little Suns (new employees) inyear 1, year 1.5, and year 2 is reviewed.
Pre-onboarding ?t-in2 months beforeonboarding
Start
Onboarding
ReturnProduction line
1 week afteronboarding
1.5-6 months
12-24 months
0-1.5 months
7-12 months
Cultural training
Production line
training
Acceleratedgrowth
Assessment and
regularization
Acceleratedgrowth
Academies
Academies +departments
Departments
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
The o?cer learning programs include training for the reserve cadre echelon, new manager orientation,and empowerment training for current cadres. The training content covered the interpretation of thecompany's management policies, discussion of management case studies, and leadership learning, foro?cers to pass on the company's cultural values, undertake its development strategy, and lead the teamto achieve business goals.As of December 31, 2023, all newly hired or newly promoted middle and grassroots managementcadres who have been in their positions for more than half a year have completed the systematictraining of the New Manager Training Camp. This training assists new managers in clarifying their roleperception, understanding the company's management philosophy and cadre standards, and masteringmanagement methods and tools. The company arranges dedicated training for front-line managers (mainlyproduction line team leaders and shift leaders) at manufacturing bases, covering promotion training andempowerment training. So far, the company has conducted eight promotion training sessions for reserveteam leaders, with 229 quali?ed, and conducted ?ve promotion training sessions for reserve shift leaders,with 67 quali?ed.
The company lays great stress on the improvement of project management capabilities of employees at alllevels. The company regularly launches project management practice classes and requires managers andkey employees in the R&D ?eld to learn professional knowledge of project management and conduct projectreviews and discussions so that they can better lead their teams and manage projects. The company alsoencourages employees to study and obtain various quali?cation certi?cates for project management.
Based on business needs, the company provides special empowerment training for technical and professionalemployees in R&D, engineering, quality, and production positions. The company has set up 11 professionalacademies and developed a series of learning resources related to job quali?cations to support the professionalcompetence improvement of employees in various fields. The company promotes the transfer and sharingof professional knowledge through the established knowledge base and community. The company regularlyinvites external experts to give courses and lectures on cutting-edge technologies to help professionalsbroaden their horizons.
The company provides operation training for production line operators, technicians, and shift leaders,covering information security requirements, job speci?cations, quality awareness, and site managementskills. After new employees join a department, the Integrated Management Section provides them withtheoretical and practical training in job skills, and they can obtain the corresponding job operationquali?cations after passing the assessment. After such quali?cations expire, they shall participate in thetraining and pass the assessment again. Manufacturing bases audit the job qualifications of productionline employees every month by randomly selecting employees in some key positions, covering their workpermits and mastery of job operation speci?cations. Employees who fail the audit shall participate in thecorresponding job training and assessment again until they regain job quali?cations.
Management capability training
Professional and technical empowerment training
Project management training
Operation training
45,354
In 2023, the total training attendance ofemployees in operation positions reached
person-times95%of employees in professional and technicalpositions received training
In 2023, the professional academiesreleased a total of
courses
100%
of employees in key positionsworked with quali?cation certi?cates
85%of shift leaders took up their positions afterpassing training
35,756
person-timeswith a total attendance of
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Employee Skills CompetitionIn order to create an atmosphere of skill learning for front-line employees and discover and motivate talentswith excellent skills, the company's Manufacturing Department 1 and Department 2 launched an employeeskills competition in the production workshops in 2023, through which, the essential points of operation for keypositions were learned extensively and a wave of learning was set o? among employees.
The company has established theInternal Trainer Management Processto standardize the selection, training, andutilization of internal trainers, achieving the extraction and inheritance of the company's excellent experience. As ofDecember 31, 2023, the company has trained and certi?ed more than 300 internal trainers.
The company has established the online learning platform "Longcheer e-Learning", which o?ers nearly 2,000 coursesto meet employees' diverse needs for video, audio, and courseware learning, examinations, and tests. The platformlivestreams an average of five courses per working day to enhance the interactivity and effectiveness of learning.Furthermore, the company carefully selects management cases and business cases extracted and edited by excellentmanagers and business experts and disseminates them to all employees via the learning platform to promoteknowledge sharing and experience learning.
The company holds certification training for internal trainers every year to foster an internal lecturerteam that can extract and share experience. The company holds one session of internal trainer trainingevery year, with a certification cycle of two months. The internal trainer training covers the learningof courses such as experience extraction, course development, standard presentation, and wonderfulinterpretation. Participants can become the company's internal trainers after giving trial lectures ondeveloped courses and passing certi?cation.
Internal trainer training
Training Capability Enhancement
Training Channel Construction
2,000
The company's online learning platform "Longcheer e-Learning" o?ers nearly
courses
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Employee Career DevelopmentThe company distinguishes the business attributes of di?erent positions by "family, category, and subcategory", establishes a conversion channel between management and professional/technical positions through the rank system andquali?cation management, and forms employee development and career plans for di?erent positions.
Every year, we review job ranks, match the right people to the right jobs, adjust positions and wages, andpromote and demote a group of people.
For employees in operation positions, Longcheer has a comprehensive training empowerment system and a soundpromotion channel in place to support front-line employees' career development.
CraftsmenMechanicsSalespersons/TechniciansOperators
Employee Development
Front-line employees
Professional/technical
channel
Management channel
Senior o?cersField development experts
Middle o?cersExperts
Front-line o?cersKey employees
IIIIII
IIII
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Job Rank System Transformation Project in 2023From February 2023 to February 2024, in cooperation with the external consulting company Korn Ferry, theOrganization and Talent Development Department of Longcheer led a job rank system transformation project atthe Shanghai Headquarters and in related regions. The company and the external consulting company assessedthe value of management positions and defined organization and position requirements; they optimized theposition classification, clarified position attributes, and improved the "family" and "categories", to prepare forthe capability building of professional committees; they established standards for person-job matching andde?ned the responsibility ful?llment, contribution output, and competency performance of employees at di?erentdevelopment stages. The company completed job matching for all employees and formed a person-job matchingmanagement mechanism.
Running Water ProgramIn order to meet business needs and improve organizational vitality and con?guration e?ciency, the companylaunched the Running Water program for employees in April 2023. The program provides all full-time contractednon-officer employees of Longcheer and its subsidiaries with internal job transfer opportunities throughinternal recruitment and job fairs, retaining employees through more horizontal development opportunitiesand stimulating their individual vitality. The program has facilitated the mobility of dozens of employees acrossdepartments since its launch, e?ectively establishing a job transfer channel for employees.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Employee Remuneration and IncentivesIn terms of employee remuneration, Longcheer implements the core value of "Inspiring Dedication", adheresto the concept of paying employees based on the value of responsibility and contribution, and pays employeesbased on their job responsibilities, their performance contributions and their ability to continue to makeperformance contributions. According to the change of the employee's job responsibilities and grade changes,reasonable returns are given based on the current contribution and output, in order to stimulate the employeeto make greater performance contributions through continuous e?orts.In terms of employee performance, Longcheer implements the core value of "Inspiring Dedication", hasorganizational performance and individual performance management systems and processes in place, andevaluates employees' job performance based on organizational and job requirements and employees' jobresponsibility ful?llment, contribution output, and competency performance. In 2023, the company conductedtwo performance appraisals (H1 and annual) of o?cers and professional and technical employees, e?ectivelyappraising the actual job performance of more than 4,000 o?ce employees.
Individual Performance Appraisal Process in 2023
In 2023, the company conductedperformance appraisals of o?cers and professional and technical employees
4,000+e?ectively appraising the actual job performance of
o?ce employees
Goal setting
All employees set individual Personal Business Commitment (PBC) goals that aresubject to review and con?rmation by their direct or matrix superiors.
Self-appraisal andappraisal
Employees conducted self-appraisal based on the actual completion and then wereappraised by their direct or matrix superiors. Employees' individual performance levelswere determined following a comprehensive performance appraisal.
Feedback andcommunication
Direct or matrix superiors communicated performance appraisal results to employees,affirmed achievements, pointed out deficiencies, and defined next steps andrequirements.
Performance process
management
Managers advanced the performance process by coaching subordinates' work andrectifying their progress deviations.
Performance resultpublicity
Department heads publicized the list of employees with excellent performance andthe reasons for the appraisal results within the departments.
Performance appeal
processing
The Organization and Talent Development Department accepted employees' appealsregarding individual performance results, communicated with their direct or matrixsuperiors and the Administrative Team (AT), and processed the performance appeals.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
The new honor system de?nes the Gold Medal Team, Gold Medal Individual, and Gold Medal Craftsman as the highesthonors from the company. The winning team and individuals will receive certi?cates of honor from members of thecompany's Executive Team at the company's annual meeting, and the winning employees' families will be invited tothe award ceremony. We increase the sense of ceremony for awarding honors and enhance the sense of honor of theprize-winners, making it as a benchmark and demonstration for all employees.
The company establishes immediate cultural incentives, the short-term and long-term incentive systems to enhancethe driving force for its own development:
Based on the need of inventive, managers can apply for gift vouchers/cardsas immediate cultural incentives from the department head to commend andmotivate employees with signi?cant performance in their daily work.
The company offers diversified short-term incentives for different positions,including annual performance bonus, project bonus, sales implementationbonus, monthly performance bonus, and quarterly performance bonus, to timelymotivate outstanding employees.The company has implemented an equity incentive plan through the employeestock ownership platform, to motivate employees to grow and develop withthe company. The plan is suitable for middle and senior managers and someoutstanding key employees. As of December 31, 2023, 259 employees had held
10.51% of shares through such platform.
ImmediateculturalincentivesCompany-level awards
System-levelawards
Special awards
Short-termincentives
Medium- andlong-termincentives
Gold Medal TeamGold Medal Individual
Silver Medal TeamSilver Medal IndividualImmediate cultural incentives
Excellent teams and individuals in various
professional ?elds
10.51%
representing a
As of December 31, 2023, the number ofindividuals holding shares through theemployee stock ownership platform was
In order to build a high-performance culture and drive employees to create excellent performance in their work,Longcheer released theHonor Management Guide, established an honor system, and launched Company-levelhonorary award selection in 2023.
share of the company's total shares
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Employee Communication and CareLongcheer attaches great importance to employees' personal rights and interests and physical and mental care.Through diverse and efficient communication channels and caring welfare guarantees, we enhance transparentcommunication and timely exchange of information, striving to ensure and improve the employee experience while onthe job.Employee CommunicationLongcheer pays attention to the voices of our employees and provides them with a multi-channel communicationplatform. We regularly hold various activities, including the employee birthday party, president meeting, seniormanagement information sharing session, and meeting of democratic life. We also set up an employee sharing servicecenter and IT/?nance/administration/HR online service desks to ensure that we can e?ectively hear and resolve thevoices, needs, and suggestions of employees at all levels. Through a series of information release platforms, such asLongcheer Forum, Longcheer Faner, Longcheer Recruitment, and Service Desk, Longcheer timely shares the latestnews of the company, achieving timely communication and sharing of information and keeping employees informedof our dynamics.Employees can ?le complaints, reports, inquiries, and feedback through the telephone, letter, mailbox, personnelservice public mailbox, HR service desk, and other channels, in case of any unfair treatment in respect of attendance,performance, quali?cation and matching, etc.If employees are found to have issues related to ethics, core values,or the code of conduct, these concerns can be reported to the ethics management office through telephone,email, interview, letter, etc. The company will handle the reports and issues or modi?cation of opinions fairly andimpartially, and strictly keep con?dential the relevant information of the personnel concerned.
The company and manufacturing bases conducts employee satisfaction surveys at di?erent frequencies based on businessoperations and daily feedback from employees. By doing so, we listen to employees' voices from dimensions of corporateculture, team management, remuneration and bene?ts, environmental logistics and employee communication, and timelyidentify problems and make improvements accordingly. Employees may choose to submit survey feedback anonymously,to protect their personal privacy. Longcheer Electronics (Huizhou) Co., Ltd. conducts the employee satisfaction surveyevery quarter, and Nanchang Longcheer Technology Co., Ltd. conducts the said satisfaction survey every six months or ayear.To strengthen the participation of production line employees in management, the company organizes employeesatisfaction survey, monthly symposiums, non-operational probation periods, on-the-job interviews, and other activities,through which the company identi?es and resolves employees' di?culties timely.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Employee Bene?tsLongcheer is committed to providing good welfare bene?ts for employees. According to the annual budget, the company provides all bene?ts for all regularemployees, and provides some bene?ts such as birthday bene?ts and induction gift packages for regular employees, as well as interns, outsourced employees,etc. The company organizes a variety of activities which cover all regular and non-regular personnel.
The company provides appropriate benefits for employees in accordance with relevant national laws and regulations. Suchbene?ts include, on the one hand, basic pension insurance, basic medical insurance, unemployment insurance, work-related injuryinsurance and maternity insurance, and housing provident fund. On the other hand, such bene?ts include statutory holidays, suchas marriage leave, funeral leave, maternity leave, sick leave, annual leave, parental leave, and breastfeeding leave.
The company offers a range of benefits, including pre-employment physical examination, annual physical examination,supplementary medical insurance, accident insurance, and overseas travel insurance (for business trips or dispatch). We providesupplementary commercial medical insurance for office workers, and offer employer liability insurance for factory workers andinterns. We also carry out health lectures, TCM diagnosis and treatment and other activities, and care for employees' physical andmental health.
On each ?oor of the company's o?ce, we set up a tea room and self-service vending machines, which provide co?ee, tea bags,healthy tea cakes of all kinds, drinks, snacks, etc. for employees and visitors to use freely, ensuring the purchase of various goodsand materials and leisure needs. Each manufacturing base has special employee dormitories, and sets up supermarkets, canteens,barber shops, etc. to provide daily necessities, as well as basketball courts, badminton courts, billiard rooms, and table tennisrooms for leisure and sports.
Based on the actual needs of employees in their daily work, the company gives them welfare allowances in cash, includingtransportation allowance, meal allowance, travelling allowance, and o?-site dispatch allowance. We also o?er talent apartmentbene?ts to quali?ed employees.
Such benefits include welfare gifts on traditional holidays, birthday gift vouchers, departmental activity funds, and otheremployee bene?ts, as well as bene?ts for excellent technicians, excellent pacesetters, and other excellent employees.
Statutorybene?ts
Allowancesand bene?ts
Welfare and
bene?ts
Health and
securitybene?ts
Life-work
balance
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Care for EmployeesThe company mainly holds ?ve categories of employee care activities, including birthday parties, holiday care activities, health season series of activities, association activities, and Qile Cinema.Birthday parties ：To deepen the emotional connection between the company and employees and enhance theirsense of belonging, we hold monthly themed birthday parties every month to reinforce the ritual sense duringimportant moments and make them feel the care of the company. The birthday parties cover a variety of themes,such as the Little New Year, Mid-Autumn Festival, Halloween, etc.
Holiday care activities ：Longcheer values every special day, on which we create unforgettable experiences
and beautiful memories for our employees. By integrating cultural activities and festivals, we ?nd more funand freshness in work life, stimulating vitality and delivering happiness and positive energy.
Little New Year themed birthday party in January
(Shanghai)
Shenzhen Happy Valley birthday tour in March
(Huizhou)
Engineer's Day-RingtossThanksgiving Day-record ofgratitude videoChristmas Day-Candy
distribution
Women's Day yoga training
course (Shanghai)
Mid-Autumn Festival activity
(Nanchang)World Reading
Day poster
Children's Day drawing
competition entries
Mid-Autumn Festival themed birthday party in
September (Shenzhen)
Birthday party in January (Nanchang)
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Association activities & health season series of activities ：To enrich employees' leisure life, we have established interest and hobby associations,including football, basketball, tennis, badminton, table tennis, long-distance running, yoga, dance and photography associations, in ?ve locations. Wealso provided funds for such associations and encourage employees to carry out a variety of association activities. We launched the health season seriesof activities and encourage employees to keep exercising, so that they can meet their work and life with a positive and healthy attitude and a strong bodyevery day.
Qile Cinema ：We opened Qile Cinema and collect classic ?lms,and regularly organize employees to watch ?lms, so that they learnsomething in fun and relieve their work pressure.
The company has set up a special care fund. Employees of Longcheer, andtheir spouses and children can apply to the company for ?nancial aid fromthe care fund to alleviate their family difficulties, in case of any financialdifficulties due to major illnesses, accidents, etc. Since its establishment,Longcheer Care Fund has helped three employee families get throughdi?culties. We always believe that every employee is the greatest wealth ofLongcheer. We hope that we can protect the health and happiness of everyLongcheer employee, while pursuing long-term development.
Spring running in January(Nanchang)
Table tennis game by the association in
October (Shanghai)
Basketball game by the association in August
(Huizhou)
Qile Cinema (Huizhou)
Longcheer basketball game in August
(Shanghai)
Half Marathon in April
(Shanghai)
Badminton game by theassociation in August (Shanghai)Urban 21KM Running in July
(Huizhou)
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Promoting Responsible Procurement Management
Longcheer always assumes its social responsibility, ful?lls the core values of "Long-term Driven", and commits itself tothe sustainable development of the supply chain.
Supplier Responsibility Management Standards
Longcheer has established a complete supply chain social responsibility guarantee system, requiring suppliersto comply with relevant laws and regulations, as well as Longcheer's social responsibility requirements. We havedeveloped theSupplier Corporate Social Responsibility Agreementinternally, which regulates suppliers' performancein various social responsibilities, such as business ethics, environmental protection, and labor rights. Suppliers shalldevelop and e?ectively operate with reference to standards such as ISO 14001, ISO 45001, SA8000, RBA, and ISO 26000and relevant regulations, and shall sign relevant agreements such as theSupplier Corporate Social ResponsibilityAgreement, when signing the procurement agreement. In the supplier performance appraisal, CSR is a red line item forsupplier performance appraisal of Longcheer. Once triggered, the performance appraisal will be marked as D, and newprojects will be prohibited. When suppliers or their sub-suppliers do not comply with CSR management requirements,the relevant suppliers must take corrective actions as required by Longcheer.
1. Prohibit the use of any form of child labor.
2. Use and e?ectively protect underage workers or student workers in accordance with the law, and prohibit underage
workers from working in dangerous or harmful positions.
3. Prohibit personnel in positions with occupational hazards from avoiding physical examinations for occupational
hazards.
4. Prohibit prison labor and forced labor, prohibit the use of prisons as suppliers or subcontractors, prohibit the
restrictions of personal freedom, and prohibit the withholding of identity documents.
5. Prohibit violence, verbal abuse, physical punishment, or sexual harassment, and prohibit unlawful body search or
body search on opposite-sex person.
6. Prohibit the payment of employees' wages below the local minimum wage standard. Prohibit major ?re or explosion
accidents.
7. Prohibit any working conditions that seriously endanger life or health, and prohibit fatal accidents at the working site.
8. Prohibit the illegal discharge of toxic and harmful pollutants, including wastewater, exhaust gas or waste residue
posted on the IPE website by the local environmental protection bureau.
9. Prohibit any media crisis and serious mass incidents, including abnormal deaths (suicide, homicide, jumping o? a
building, sudden death, etc.), collective labor disputes or strikes, group ?ghts, mass poisoning, or other mass death andcasualty incidents.
10. Prohibit any collective infection incidents caused by improper internal management and protection of infectious
disease epidemic, or prohibit any significant impact on employee health and safety or the normal operation of thecompany due to the lack of preparation of protective materials in advance (such as masks, gloves, protective clothing,and disinfectant).
11. Prohibit corruption and dishonesty incidents. Ensure to follow the principles of "do not get related, o?er bribes, pass
things o? as good quality, cut corners, practice fraud, or commit commercial fraud, and do keep promises", namely the"Six Don'ts and One Do".
12. Prohibit non-compliant smelting plant for con?ict minerals (tantalum, tin, tungsten, gold). Prohibit the incorporation
of non-compliant clauses into contracts (dispatch contract, tripartite agreement, etc.), a?ecting the legitimate rightsand interests of workers.
Longcheer Procurement CSR Audit Red Line Requirements
In 2023, no CSR red line violation by suppliers occurred. All quali?ed suppliers of the company signed the corporatesocial responsibility agreements, and the company completed all CSR audits stipulated in its annual supplier auditplan.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Supplier Compliance ManagementLongcheer has established a complete supplier compliance management system. We have built our full-lifecycle supplier management system SRM(Supplier Relationship Management), consisting of supplier introduction, on-site audits, contract and agreement management, performance appraisalmanagement, and supplier elimination. By doing so, we perform strict compliance management for suppliers, reducing risks and developing a moree?cient supply chain. In 2023, Longcheer had a total of 3,499 suppliers on hand. Among the suppliers that accounted for the top 90% of procurementspending, there were 135 direct suppliers.
To standardize the quarterly performance evaluation system for suppliers, and to re?ect the performance status and level of suppliers in the quarterin a comprehensive, systematic, and objective manner, Longcheer performs performance management on suppliers. We regularly carry out the baseassessment of suppliers in respect of quality, cost, delivery, and service. We urge suppliers that fail the appraisal to make recti?cation, and give priorityto suppliers with excellent appraisal results in new project cooperation.
For new suppliers, Longcheer has established theNew Supplier Quali?cation Certi?cation Process.The company requires that new suppliersmust pass ISO 9001 and ISO 14001 system certification, comply with industry or national standards, and ensure that their deliverables meetquality and environmental requirements. Longcheer requires new suppliers to complete the ATP capability analysis table evaluation, includingCSR audit. The Supplier Quality Management Department of Longcheer will conduct on-site certi?cation and scoring of each supplier audit, afterthe supplier self-assessment is completed.
For quali?ed suppliers that have been introduced, the company conducts performance appraisal of those satisfying the conditions quarterly,and applies the appraisal results to business projects and cooperation.
Signing thePurchase Agreement,Supplier Quality Assurance Agreement,Confidentiality Agreement, Toxic andHazardous Substance RestrictionAgreement, etc.
Agreement signing
Submitting qualification informationsuch as the business license, andsystem certification materials such asISO 9001 and ISO 14001.
Threshold investigation
Completing theSupplier Audit Form
and conduct self-assessment from thedimensions of R&D, quality management,hazardous substance management,procurement management, CSRmanagement, etc.
Supplier self-assessment
Accepting supplier information, andconduct on-site certi?cation and auditscoring.
Audit scoring
Con?ict Minerals ManagementLongcheer undertakes that the company will not support or use con?ict minerals ormineral raw materials from unknown sources, such as tin, tantalum, tungsten, gold,and cobalt. We will support the actions against con?ict minerals by the ResponsibleBusiness Alliance (RBA) and the Global e-Sustainability Initiative (GeSI).To ensure that the purchased raw materials contain no con?ict minerals, the SupplierQuality Management Department of the company is responsible for due diligenceon the sources of conflict minerals from suppliers, and the Purchase ExecutionDepartment purchases materials from resources that can meet the requirements ofnot containing con?ict minerals.Longcheer requires suppliers to actively cooperate with due diligence on conflictminerals, to ensure that raw materials such as 3TG metals, mica, and cobalt are fromcompliant sources. Suppliers are required to truthfully ?ll in the CMRT, MRT, and CRTforms, and sign a statement in compliance with the company's con?ict mineral policy.The company has a special department responsible for reviewing the forms submittedby suppliers, to determine that the source of raw materials meets the company'scon?ict mineral policy. The company arranges suppliers to conduct CMRT, CRT, andMRT surveys every year. If some suppliers fail to provide survey forms, we requirethem to provide a statement that they meet the requirements of our con?ict mineralpolicy. Once we identify raw materials that violate the company's conflict mineralpolicy, the company will notify the Resource Development Department or PurchaseExecution Department to activate backup resources and conduct investigations onabnormal 3TG source, to ensure that all purchased products comply with the con?ictmineral policy.
In 2023, the number of suppliers subject to con?ict mineral audits was
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Becoming an Excellent Corporate CitizenLongcheer is committed to building our image as a responsible enterprise, focuses on education and communitydevelopment, and contributes to society in respect of charity.
Education Aid
Community Care
Longcheer is always concerned about training and developing all kinds of talents. To this end, we have establishedLongcheer Scholarship and Faculty Fellowship, supporting universities in training modern management talents,rewarding outstanding students, and encouraging more teachers to adhere to academic integrity and code of ethics.
Longcheer advocates a corporate public welfare culture, encourages employees to actively participate in public welfareactivities, and contributes to community building.In February 2023, the company donated a batch of computers to Caojiang Middle School in Guangdong Province and wasreceived the silk banner of "Improving Education by Donating Computers" as an award.
In June 2023, Longcheer donated RMB
500,000
to Shanghai Wenlai International School to establish the"Wenlai High School Career Education Base" and sponsored theconstruction of a modern stadium.
By creating the "Rainbow Public Welfare" brand series of activities, Hongmei Road Subdistrict in Xuhui District,Shanghai launched eight major public welfare volunteer projects. These projects focused on special groups in thecommunity, including the old, weak, sick and disabled. Through targeted social work and services, such as socialassistance, elderly care service, volunteer service, ecological governance, such projects provided more social andprofessional services related to the people's livelihood in the park. As a company in this jurisdiction, Longcheeractively responded to and participated in the partner assistance activity by sending warmth to special groups.In September 2023, the company visited and sent warmth to the people living on minimum subsistence allowances inGumei Community, Xuhui District.
In 2023, the number ofemployee volunteerswas
536,600
annual donations topublic welfare projectsamounted to RMB
the total investment in annual povertyalleviation and rural revitalizationprojects was RMB82,187,8001,838
and the annual povertyalleviation and ruralrevitalization projectsbene?tedindividuals
Love and Assistance Activity in Hongmei Road Subdistrict, Xuhui District, Shanghai
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
ESG Key Performance Indicator
ESG IndicatorUnit2023
Environmental PerformanceGHG EmissionScope 1: Direct GHG emissionst CO
e2,132.17Scope 2: Energy indirect GHG emissionst CO
e80,060.69Total GHG emissions (scope 1 and scope 2)t CO
e82,192.86GHG emission intensity
t CO
e/RMB 1 millionoperating revenues
3.02
The percentage of identified and verified emission sources for Scope 3(Other indirect GHG emissions caused by company activities) ：
Purchased goods and services%79.36 Capital goods%0.02 Relevant fuel and energy activities%0.20 Upstream transportation and distribution %3.13 Wastes from operation%0.01 Business trip%0.02 Employee commuting%0.02 Upstream leased assets%0.02 Use of sold products%16.28 Disposition of sold products%0.95Energy ConsumptionConsumption of electricity purchasedkWh133,972,637.30
Solar power generation
kWh1,368,200.00Gasoline consumption
L55,110.84.00Diesel consumption
L3,055.31Natural gas
10,000 m
0.27
Total power consumption
kWh1,118,035.10Water Resources ManagementWater intake
tonne1,099,679.00Including, municipal water supply
tonne1,118,035.10Total water consumption
tonne1,118,035.10Including, production water consumption
domestic water consumptiontonne581,503.00 total recycled watertonne71,871.00Waste water discharge concentration
CODT/A129.52 Ammonia nitrogenT/A19.47
ESG IndicatorUnit2023
1、6、10
Data statistics included Longcheer Electronics (Huizhou) Co., Ltd.and Nanchang Longcheer Technology Co., Ltd.
Data statistics included Longcheer Electronics (Huizhou) Co., Ltd., Nanchang Longcheer Technology Co., Ltd., Shanghai R&D Center and Shenzhen R&D Center.
Data statistics included Longcheer Electronics (Huizhou) Co., Ltd., Nanchang Longcheer Technology Co., Ltd., and Shanghai R&D Center.
Data of Nanchang Longcheer Technology Co., Ltd. only.
5、7-8
Data statistics included Longcheer Electronics (Huizhou) Co., Ltd., Nanchang Longcheer Technology Co., Ltd., Shanghai R&D Center, Hefei R&D Center andShenzhen R&D Center.
Data of Longcheer Electronics (Huizhou) Co., Ltd. only.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Percentage of female employees%30.09Number of ethnic minority employeesPerson843By age group ≤30Person5,357 31-40 Person4,985 41-50Person1,120 ＞50Person44By degree DoctoratePerson4 Master's degreePerson317 Bachelor's degreePerson3,025 Junior college degree and belowPerson8,160By position Production personnelPerson7,559 Sales personnelPerson74 R&D and technical personnelPerson3,295 Financial personnelPerson106 Administrative personnelPerson472By geographical region China (including Hong Kong, Macao, and Taiwan)Person11,488
Waste DataAnnual total amount of general wastes
tonne2,855.03Including production wastestonne2,738.03 Domestic wastestonne117.00Annual total amount of hazardous wastes
tonne36.442Exhaust gas emission
tonne0.048Volatile organic compounds (VOCs)
tonne0.071Product Packaging Material DataConsumption of purchased packaging materialstonne 62,195.22Including plastic packaging materialstonne 7,093.05Paper packaging materialstonne 55,102.16Annual investment in environmental protection入
RMB 10,000271.12Annual environmental protection investment as a proportion of operatingrevenue
%0.01
Social Performance
Employee Pro?leGlobal total of direct employeesPerson11,506By gender Male employeesPerson8,044 Female employeesPerson3,462 Percentage of male employees%69.91
ESG IndicatorUnit2023ESG IndicatorUnit2023
11-14Data statistics included Longcheer Electronics (Huizhou) Co., Ltd.and Nanchang Longcheer Technology Co., Ltd.
Data statistics included Longcheer Electronics (Huizhou) Co., Ltd., Nanchang Longcheer Technology Co., Ltd. and Longcheer Meiko Electronics Vietnam Co., Ltd.
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
By age group ≤30Person4,125 31-40 Person1,469 41-50Person183 ＞50Person12By gender Number of male employeesPerson3,969 Number of female employeesPerson1,820Employee turnover rate in the year%12.90By geographical region China (including Hong Kong, Macao, and Taiwan)%12.89 Outside China%0.01By age group ≤30%9.19 31-40 %3.27 41-50%0.41 ＞50%0.03By gender Male employees%8.85 Female employees%4.06Work Safety ManagementNumber of global employees' work-related injuries in the yearNos.11
Outside ChinaPerson18By position Number of women in senior managementPerson4 Number of men in senior managementPerson39 Number of women in executive managementPerson116 Number of men in executive managementPerson437Number of new employeesPerson4,247By geographical region China (including Hong Kong, Macao, and Taiwan)Person4,235 Outside ChinaPerson12By age group ≤30Person 2,707 31-40 Person1,357 41-50Person178 ＞50Person5By gender Number of male employeesPerson3,055 Number of female employeesPerson1,192Employee turnover in the yearPerson5,789By geographical region China (including Hong Kong, Macao, and Taiwan)Person5,786 Outside ChinaPerson3
ESG IndicatorUnit2023ESG IndicatorUnit2023
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Number of people subject to recordable work-related injuriesPerson11Percentage of people subject to recordable work-related injuries%100Safety drillsNos.24Number of safety training sessionsNos.663Number of employees participating in safety trainingPerson-time35,741Coverage of safety training among employees%100Employee Training and DevelopmentTotal attendance of trainingPerson11,506By gender Attendance of male employeesPerson-time48,264 Attendance of female employeesPerson-time20,772 Percentage of attendance of male employees%100 Percentage of attendance of female employees%100By employee category Production personnelPerson7,559 Sales personnelPerson74 R&D and technical personnelPerson3,295 Financial personnelPerson106 Administrative personnelPerson472Total training hours for all employeesHour290,194.00By gender Total training hours for male employeesHour202,879.00
ESG IndicatorUnit2023
Total training hours for female employeesHour87,315.00By employee category Production personnelHour181,416.00 Sales personnelHour814.00 R&D and technical personnelHour105,440.00 Financial personnelHour636.00 Administrative personnelHour1,888.00Total training hours for all employeesHour25.22By gender Average training hours per male employeeHour25.22 Average training hours per female employeeHour25.22By employee category Production personnelHour24.00 Sales personnelHour11.00 R&D and technical personnelHour32.00 Financial personnelHour6.00 Administrative personnelHour4.00Training attendance of new employeesPerson-time4,247Number of training sessions for new employeesSession12Training duration for new employeesHour576.00Employee RemunerationTotal remuneration of the company's General ManagerRMB 10,000243.28
ESG IndicatorUnit2023
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Number of employees holding sharesPerson259Supplier ManagementNumber of material suppliersSupplier1,010By geographical region AsiaSupplier1,003 EuropeSupplier1 North AmericaSupplier5 South AmericaSupplier1Number of equipment suppliersSupplier220By geographical region AsiaSupplier210 EuropeSupplier1 North AmericaSupplier1 South AmericaSupplier0Number of CSR audits for new suppliersSupplier76Number of CSR audits for existing suppliersSupplier88Number of suppliers participating in CSR trainingSupplier361Annual violation rate of the CSR red line by suppliers%0Number of participants in supplier safety trainingPerson422Coverage of safety training among suppliers%100Number of suppliers subject to con?ict mineral auditsSupplier164Public Charity
ESG IndicatorUnit2023
Number of public welfare programsProgram3Number of employee volunteersPerson263Number of public welfare activities organized and carried outSession 1Annual donated funds for public welfare programsRMB 10,00053.66The total investment in annual poverty alleviation and rural revitalizationprojects
RMB 10,0008,218.78Number of people benefited by the annual poverty alleviation and ruralrevitalization projects
Person1,838Innovation and R&DTotal number of global patents that have been applied forPcs.1,256Cumulative number of patents granted globallyPcs.687Number of e?ective patents per million in revenuePcs.0.025Total number of software copyrightsPcs.426Number of software copyrights per million in revenuePcs.0.016Total annual investment in R&DRMB 10,000168,776.15Annual R&D investment as a proportion of operating revenue%6.21Products and ServicesNumber of annual product recalls due to product quality problemsPcs.0Annual customer audits received by the companyNos.21Classi?cation by the audit type Social responsibility auditNos.1 Other auditsNos.20Pass rate of customer audit%100
ESG IndicatorUnit2023
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
Annual external quality system auditsNos.8Annual external quality system audits passedNos.8One-time pass rate of external quality system audits%100
Governance PerformanceComposition of the Board of DirectorsNumber of directorsPerson9Number of male directorsPerson9Number of female directorsPerson0Number of directors with risk management expertise (includingaccounting and legal knowledge)
Person1Number of independent directorsPerson3Percentage of independent directors%33.33Anti-corruption and Anti-briberyNumber of corruption lawsuits initiated and concluded against the companyPcs.0Number of corruption lawsuits initiated and concluded against theemployees
Pcs.1Number of reports generated by anti-corruption reporting proceduresPcs.33Number of anti-bribery due diligence and monitoring on business partners(including intermediaries)
Nos.1Total number of anti-corruption and anti-bribery training for directors/o?cers
Nos.0The period during which the company completes audits of all operationalentities
Month3Annual business ethics training coverage%100Fair Competition and Anti-monopoly
Number of lawsuits involving monopolistic and unfair competition practicesPcs.0Information SecurityPercentage of operation areas with a certified information securitymanagement system (e.g., ISO 27001)
%80Annual major information security breach incidentsPcs.0
ESG IndicatorUnit2023ESG IndicatorUnit2023
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
GRI Standards Index
Statement of use
Longcheer has reported the information cited in this GRI content index for the periodJanuary 1, 2023 through December 31, 2023 with reference to the GRI Standards.GRI usedGRI 1: Foundation 2021GRI Standard Indicator Contents
Sustainable Development
Goals
LocationGRI 2: General Disclosures 20212-1Organizational detailsAbout the Report2-2
Entities included in the organization' s sustainabilityreporting
About the Report2-3Reporting period, frequency and contact pointAbout the Report2-4Restatements of information -2-5External assurance-2-6Activities, value chain and other business relationshipsAbout Longcheer2-7EmployeesSDG-8、SDG-10
Protecting Employees' Rights
and Bene?ts2-8Workers who are not employees SDG-8
Protecting Employees' Rights
and Bene?ts2-9Governance structure and compositionSDG-5、SDG-16
Improving Corporate
Governance2-10Nomination and selection of the highest governance bodySDG-5、SDG-16
Improving Corporate
Governance2-11Chair of the highest governance body SDG-16-2-12
Role of the highest governance body in overseeing themanagement of impacts
SDG-16-2-13Delegation of responsibility for managing impacts
Improving CorporateGovernance
2-14
Role of the highest governance body in sustainabilityreporting
About the Report, ESGGovernance System2-15Con?icts of interestSDG-16
Stakeholders Communicationand Engagement, Improving
Corporate Governance2-16Communication of critical concernsSDG-16 ESG Governance System2-17Collective knowledge of the highest governance body-2-18
Evaluation of the performance of the highest governancebody
-2-19Remuneration policies
Employee Training andDevelopment2-20Process to determine remuneration
Employee Training and
Development2-21Annual total compensation ratio-2-22Statement on sustainable development strategy
ESG Strategic Models andSustainable Development
Goals (SDGs)2-23Policy commitmentsSDG-16
Con?ict Minerals
Management2-24Embedding policy commitments
Con?ict Minerals
Management2-25Processes to remediate negative impacts-2-26Mechanisms for seeking advice and raising concernsSDG-16
Stakeholders Communication
and Engagement
GRI Standard Indicator Contents
Sustainable Development
Goals
Location
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
2-27Compliance with laws and regulations-2-28Membership associations-2-29Approach to stakeholder engagement
Stakeholders Communicationand Engagement2-30Collective bargaining agreementsSDG-8-GRI 3: Material Topics 2021
3-1Process to determine material topicsMateriality Analysis3-2List of material topicsMateriality Analysis3-3Management of material topicsMateriality AnalysisGRI 201: Economic Performance 2016
201-1Direct economic value generated and distributedSDG-8、SDG-9About Longcheer201-2
Financial implications and other risks and opportunities dueto climate change
SDG-13
Analysis of Climate Risks andOpportunities201-3De?ned bene?t plan obligations and other retirement plans
Employee Communicationand Care201-4Financial assistance received from government-GRI 202: Market Presence 2016202-1
Ratios of standard entry level wage by gender compared tolocal minimum wage
SDG-1、SDG-5、SDG-8-202-2
Proportion of senior management hired from the localcommunity
SDG-8-GRI 203: Indirect Economic Impacts 2016
203-1Infrastructure investments and services supportedSDG-5、SDG-9、SDG-11-203-2Signi?cant indirect economic impactsSDG-1、SDG-3、SDG-8-GRI 204: Procurement Practices 2016
204-1Proportion of spending on local suppliersSDG-8-
GRI 205: Anti-corruption 2016
205-1Operations assessed for risks related to corruptionSDG-16-205-2
Communication and training about anti-corruption policiesand procedures
SDG-16
Building a TransparentOperation Environment205-3Con?rmed incidents of corruption and actions takenSDG-16-
GRI 206: Anti-competitive Behavior 2016206-1
Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices
SDG-16
Building a TransparentOperation Environment
GRI 207: Tax 2019
207-1Approach to taxSDG-1、SDG-10、SDG-17
Ensuring Tax Transparency
and Compliance207-2Tax governance, control, and risk managementSDG-1、SDG-10、SDG-17
Ensuring Tax Transparency
and Compliance207-3
Stakeholder engagement and management of concernsrelated to tax
SDG-1、SDG-10、SDG-17
Ensuring Tax Transparency
and Compliance207-4Country-by-country reportingSDG-1、SDG-10、SDG-17-GRI 301: Materials 2016301-1Materials used by weight or volumeSDG-8、SDG-12Innovating Green Products301-2Recycled input materials usedSDG-8、SDG-12Innovating Green Products301-3Reclaimed products and their packaging materialsSDG-8、SDG-12Innovating Green ProductsGRI 302: Energy 2016302-1Energy consumption within the organization
SDG-7、SDG-8、SDG-12、SDG-
Strengthening Energy
Management302-2Energy consumption outside of the organization
SDG-7、SDG-8、SDG-12、SDG-
Strengthening Energy
Management302-3Energy intensity
SDG-7、SDG-8、SDG-12、SDG-
Strengthening Energy
Management302-4Reduction of energy consumption
SDG-7、SDG-8、SDG-12、SDG-
Strengthening Energy
Management302-5Reductions in energy requirements of products and services
SDG-7、SDG-8、SDG-12、SDG-
Strengthening Energy
Management
GRI 303: Water and E?uents 2018
GRI Standard Indicator Contents
Sustainable Development
Goals
LocationGRI Standard Indicator Contents
Sustainable Development
Goals
Location
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
303-1Interactions with water as a shared resourceSDG-6、SDG-12
Optimizing ResourcesUtilization303-2Management of water discharge-related impactsSDG-6
Optimizing Resources
Utilization303-3Water withdrawalSDG-6
Optimizing Resources
Utilization303-4Water dischargeSDG-6
Optimizing Resources
Utilization303-5Water consumptionSDG-6
Optimizing Resources
UtilizationGRI 304: Biodiversity 2016304-1
Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outsideprotected areas
SDG-6、SDG-14、SDG-15-304-2
Signi?cant impacts of activities, products and services onbiodiversity
SDG-6、SDG-14、SDG-15-304-3Habitats protected or restoredSDG-6、SDG-14、SDG-15-304-4
IUCN Red List species and national conservation list specieswith habitats in areas a?ected by operations
SDG-6、SDG-14、SDG-15-GRI 305: Emissions 2016
305-1Direct (Scope 1) GHG emissions
SDG-3、SDG-12、SDG-13、SDG-
14、SDG-15
Strengthening GHG
Veri?cation305-2Energy indirect (Scope 2) GHG emissions
SDG-3、SDG-12、SDG-13、SDG-
14、SDG-15
Strengthening GHG
Veri?cation305-3Other indirect (Scope 3) GHG emissions
SDG-3、SDG-12、SDG-13、SDG-
14、SDG-15
Strengthening GHG
Veri?cation305-4GHG emissions intensitySDG-13、SDG-14、SDG-15
Strengthening GHG
Veri?cation305-5Reduction of GHG emissionsSDG-13、SDG-14、SDG-15
Strengthening Energy
Management305-6Emissions of ozone-depleting substances (ODS)SDG-3、SDG-12-305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and othersigni?cant air emissions
SDG-3、SDG-12、SDG-14、SDG-
-
GRI 306: Waste 2020
306-1Waste generation and signi?cant waste-related impacts
SDG-3、SDG-6、SDG-11、SDG-
-
306-2Management of signi?cant waste-related impacts
SDG-3、SDG-6、SDG-8、SDG-
11、SDG-12
Improving WasteManagement306-3Waste generated
SDG-3、SDG-6、SDG-11、SDG-
12、SDG-15
Improving Waste
Management306-4Waste diverted from disposalSDG-3、SDG-11、SDG-12
Improving Waste
Management306-5Waste directed to disposal
SDG-3、SDG-6、SDG-11、SDG-
12、SDG-15
Improving Waste
Management
GRI 308: Supplier Environmental Assessment 2016
308-1
New suppliers that were screened using environmentalcriteria
Supplier ResponsibilityManagement Standards308-2
Negative environmental impacts in the supply chain andactions taken
Supplier Compliance
Management
GRI 401: Employment 2016
401-1New employee hires and employee turnoverSDG-5、SDG-8、SDG-10-401-2
Bene?ts provided to full-time employees that are notprovided to temporary or part-time employees
SDG-3、SDG-5、SDG-8
Employee Communication
and Care401-3Parental leaveSDG-5、SDG-8
Employee Communication
and Care
GRI 402: Labor/Management Relations 2016
402-1Minimum notice periods regarding operational changesSDG-8-
GRI 403: Occupational Health and Safety 2018403-1Occupational health and safety management systemSDG-8
Protecting Employees' Rights
and Bene?ts403-2
Hazard identi?cation, risk assessment, and incidentinvestigation
SDG-8
Protecting Employees' Rights
and Bene?ts403-3Occupational health servicesSDG-8
Protecting Employees' Rights
and Bene?ts403-4
Worker participation, consultation, and communication onoccupational health and safety
SDG-8、SDG-16
Protecting Employees' Rights
and Bene?ts403-5Worker training on occupational health and safetySDG-8
Protecting Employees' Rights
and Bene?ts403-6Promotion of worker healthSDG-3
Protecting Employees' Rights
and Bene?ts
GRI Standard Indicator Contents
Sustainable Development
Goals
LocationGRI Standard Indicator Contents
Sustainable Development
Goals
Location
OpeningLongcheer in 2023ESG Strategy and MechanismAn Honest and Trustworthy IssuerA Protector of Customers' Bene?tsA Practitioner of Green DevelopmentA Transmitter of Public Welfare ValueEnding
403-7
Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationships
SDG-8
Protecting Employees' Rightsand Bene?ts403-8
Workers covered by an occupational health and safetymanagement system
SDG-8
Protecting Employees' Rightsand Bene?ts403-9Work-related injuriesSDG-3、SDG-8、SDG-16
Protecting Employees' Rights
and Bene?ts403-10Work-related ill healthSDG-3、SDG-8、SDG-16
Protecting Employees' Rights
and Bene?ts
GRI 404: Training and Education 2016404-1Average hours of training per year per employeeSDG-4、SDG-5、SDG-8、SDG-10
Employee Training and
Development404-2
Programs for upgrading employee skills and transitionassistance programs
SDG-8
Employee Training and
Development404-3
Percentage of employees receiving regular performance andcareer development reviews
SDG-5、SDG-8、SDG-10-GRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employeesSDG-5、SDG-8
Protecting Employees' Rights
and Bene?ts405-2Ratio of basic salary and remuneration of women to menSDG-5、SDG-8、SDG-10-
GRI 406: Non-discrimination 2016
406-1Incidents of discrimination and corrective actions takenSDG-5、SDG-8
Protecting Employees' Rights
and Bene?ts
GRI 407: Freedom of Association and Collective Bargaining 2016
407-1
Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk
SDG-8-GRI 408: Child Labor 2016
408-1
Operations and suppliers at signi?cant risk for incidents ofchild labor
SDG-5、SDG-8、SDG-16
Protecting Employees' Rights
and Bene?ts
GRI 409: Forced or Compulsory Labor 2016
409-1
Operations and suppliers at signi?cant risk for incidents offorced or compulsory labor
SDG-5、SDG-8
Protecting Employees' Rights
and Bene?ts
GRI 410: Security Practices 2016
410-1
Security personnel trained in human rights policies orprocedures
SDG-16-
GRI 411: Rights of Indigenous Peoples 2016
411-1Incidents of violations involving rights of indigenous peoplesSDG-2-
GRI 413: Local Communities 2016413-1
Operations with local community engagement, impactassessments, and development programs
-413-2
Operations with signi?cant actual and potential negativeimpacts on local communities
SDG-1、SDG-2-GRI 414: Supplier Social Assessment 2016414-1New suppliers that were screened using social criteriaSDG-5、SDG-8、SDG-16
Supplier ResponsibilityManagement Standards414-2Negative social impacts in the supply chain and actions takenSDG-5、SDG-8、SDG-16
Supplier Compliance
Management
GRI 415: Public Policy 2016
415-1Political contributionsSDG-16-
GRI 416: Customer Health and Safety 2016
416-1
Assessment of the health and safety impacts of product andservice categories
Ensuring Product Safety416-2
Incidents of non-compliance concerning the health andsafety impacts of products and services
SDG-16-
GRI 417: Marketing and Labeling 2016
417-1
Requirements for product and service information andlabeling
SDG-12
Building a First-class
Innovation Mechanism417-2
Incidents of non-compliance concerning product andservice information and labeling
SDG-16-417-3
Incidents of non-compliance concerning marketingcommunications
SDG-16-
GRI 418: Customer Privacy 2016
418-1
Substantiated complaints concerning breaches of customerprivacy and losses of customer data
SDG-16
Ensuring CustomerInformation Security
GRI Standard Indicator Contents
Sustainable Development
Goals
LocationGRI Standard Indicator Contents
Sustainable Development
Goals
Location
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