2024ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
Address: No. 169, Shidai Road, Shifeng District, Zhuzhou city,Hunan Province,412001, ChinaZip code:412001Tel:+86 731 28498028Fax:+86 731 28493447Website:www.tec.crrczic.cc
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
CONTENTS
About the ReportMessage from the General ManagerAbout Times ElectricHonors & Awards
Sustainability ManagementStructureSustainability SystemDevelopmentBoard StatementStakeholder CommunicationDouble-Materiality Issue Assessment
Preface
SustainabilityManagement
Enhancing Corporate GovernanceDeepening Compliance-DrivenOperationsEnhanced Audit and Risk ManagementUpholding Business EthicsProtection of Investors' Rights andInterestsParty Building Leading Development
Supply Chain Management Sustainable Supply Chain
Technological Innovation and R&D ManagementGreen Innovation and R&DQuality ManagementCustomer Rights and Interests ProtectionData Security and Customer Privacy Management
Environmental Compliance ManagementPollutant Emission ManagementWaste TreatmentResource ManagementEnergy ManagementResponse to Climate ChangeEnvironmental Protection
Protection of Employee Rights and InterestsEmployee Communication and CareTalent Attraction and DevelopmentOccupational Health and SafetySocial ContributionSupport for Rural Revitalization
ESG Key Performance TableIndex of IndicatorsGreenhouse GasesVeri?cationOpinionReader Feedback
Appendix
Theme of 2024:
Innovation Driving High-Quality Development
Main Text19-118
Robust Governance:
Strengthening Cor-porate Foundation
Technology Innovation Leads:
Lean-Perfected Excellencein Quality
Environmentally FriendlyDriving Green Development
Responsible Procurement:
Building a SustainableSupply Chain
People OrientedEmpow-ering Inclusive Progress
The 2024 Environmental, Social, and Governance (ESG) Report of Zhuzhou CRRC Times Electric Co., Ltd. (the "Report") is disclosed by Zhuzhou CRRCTimes Electric Co., Ltd.(hereinafter referred to as "Times Electric", the "Company", or "we"). The Report aims to provide a comprehensive disclosure tostakeholders regarding the Company's principles, governance approaches, implementation measures, and achievements in ESG aspects throughoutits operations.Reporting PeriodThis is an annual report covering the period from January 1, 2024, to December 31, 2024. To enhance comparability and forward-looking insights,some textual content extends appropriately to previous and subsequent years.
Reporting ScopeThis report discloses information covering Times Electric (hereinafter referred to as "the Company") and its controlling subsidiaries, with the exceptionof equity-accounted investees. Speci?cally, Key Performance Indicators (KPIs) under environmental, social, and governance (ESG) domains primarilyencompass the Company and its controlling subsidiaries, while economic-related KPIs remain fully aligned with audited ?nancial reporting standardsas presented in the Annual Report.
Data Sources
The textual information and quantitative data disclosed in the Report are from the Company’s o?cial documents and statistical reports, and thequantitative data quoted are the ?nal statistical data. If the relevant ?nancial data is inconsistent with the Company's annual report, the annual reportshall prevail.
Report AccessThe Report is available in Simpli?ed Chinese, Traditional Chinese, and English. You can download and read the PDF version on the Company's o?cialwebsite (www.tec.crrczic.cc) to access more information about its environmental, social and corporate governance. In case of discrepancies betweenthe English and the Chinese versions, the Simpli?ed Chinese version shall prevail.
FeedbackIf you have any questions or feedback regarding the Report and its contents, please feel free to contact us through the following methods:
O?ce Address: No.169 Times Road, Shifeng District, Zhuzhou, Hunan, People’s Republic of ChinaEmail: ir@csrzic.com
Reporting PrinciplesThis report is prepared in accordance with the four fundamental reporting principles outlined in the HKEX ESG Reporting Guide: Materiality, Quantita-tive, Balance, and Consistency, as well as the "Mandatory Disclosure" and "Comply or Explain" provisions. Times Electric a?rms that the Reportcontains no false statements or misleading descriptions and is responsible for the authenticity, accuracy, and completeness of its contents.Materiality:The Company conducts annual stakeholder engagement and materiality assessments to identify signi?cant ESG issues, with afocus on disclosing and responding to highly material issues.Quantitative:The Report adopts quantitative methods to measure applicable key performance indicators and discloses the measurement
methodology, basis, and scope.Balance:The Report provides a transparent and objective account of the Company’s ESG performance, enabling stakeholders to make
informed reviews.
Consistency: Unless otherwise speci?ed, the Report maintains consistency in statistical methods with previous years to ensure comparabilityof ESG data over time. If there are changes in statistical scope, explanatory notes will be provided in the Report.
Basis of Preparation
The Report is prepared with reference to the Environmental, Social and Governance Reporting Guide (the “ESG Reporting Guide”) in Appendix C2 ofthe Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "HKEX”), the Guidelines No. 14 of Shanghai StockExchange for Self-Regulation of Listed Companies—Sustainability Report (Trial) released by the Shanghai Stock Exchange (the "SSE"), the SustainabilityReporting Standards (the "GRI Standards") issued by the Global Reporting Initiative (GRI), the United Nations Sustainable Development Goals (the"SDGs"), the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information ("IFRS S1") and the IFRS S2 Climate-relatedDisclosures ("IFRS S2") issued by the International Sustainability Standards Board (the "ISSB"), and the Key Focus Areas of MSCI ESG Ratings, etc.
Preface About the Report
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
株洲中车时代电气股份有限公司
执行董事、总经理徐绍龙
Executive Director and GeneralManager of Zhuzhou CRRC Times
Electric Co., Ltd.Xu Shaolong
Distinguished Stakeholders,As time moves forward, so does our journey. Times Electric remains steadfast in its mission of "Connect the World, Bene?tMankind" and its core values of "Righteousness and Integrity, Goodness and Success". We are deeply committed to sustainabledevelopment, continuously driving steady, green, innovative, and harmonious growth.
Looking ahead, we will continue to improve corporate governance in accordance with laws and regulations, adhere togreen development, drive industrial upgrades through innovation, and ful?ll our corporate social responsibilities. Togeth-er with our global partners, we will forge a new chapter of high-quality development.
“
Message from the General Manager
In 2024, we sharpened our focus on core businesses and promoted industrial upgrades.The Company continues to nurture new quality productive forces, leading industrial transformation through technological innovation. We havedeepened technological advancements in ?elds such as rail transportation and new energy. In green rail transportation, we supported the launch ofGuangzhou Metro Group’s green intelligent urban rail vehicle; successfully completed the on-track trial operation of China's ?rst homegrownhydrogen-powered overhead contact line maintenance vehicle, which can reduce CO? emissions by more than 75 tons annually per vehicle; ando?cially unveiled our independently developed Train Autonomous Circumambulation System (TACS), a "smart brain" that empowers the evolution ofintelligent rail transportation. In clean energy, we developed the 1+X modular centralized photovoltaic inverter, a key innovation in reducing costs andimproving e?ciency for ground-based power stations; completed the planning and development of an IGBT-based hydrogen production powerplatform, which has already been deployed in 15 projects to advance green hydrogen production; and overcame a critical industry challenge inphotovoltaic inverter fault information collection, providing robust support for the stable operation of new energy equipment.In 2024, we deepened our commitment to green development and climate action.We reinforced environmental compliance, enhanced ecological protection, and increased investment in pollution prevention and environmentalsustainability. Actively implementing the "6R1D" right-sizing packaging strategy—Right, Reduce, Return, Reuse, Recycle, Recover, and Degradable—wehave optimized packaging processes to promote resource reuse. We actively address climate change by advancing low-carbon transition, strength-ened our green and sustainable supply chain, and remained dedicated to providing global customers with environmentally friendly and highlye?cient products and solutions. Times Electric and Times Semiconductor were successively recognized as "National Green Factory” during 2021-2023,and Times Electric was rated as a "National Green Supply Chain Management Enterprise.”In 2024, we strengthened compliance operation and enhanced risk control.
We continued re?ning our ESG management framework, embedding sustainability into corporate strategy to ensure steady progress. We upheldcorporate governance under the rule of law, reinforced compliance and risk control, and deepened our commitment to integrity and ethical businesspractices. Our multi-dimensional supervision system was further strengthened to enhance corruption risk prevention. We actively engaged withshareholders, investors, and other stakeholders, striving to maximize corporate value and shareholder interests, thereby laying a solid foundation forsustainable development. We were honored with multiple accolades, including the highest rating for information disclosure from the Shanghai StockExchange and the “2024 Best Practice of the Board of Directors for Listed Companies” award from the China Association for Public Companies.In 2024, we remained committed to a people-centered, win-win approach.We re?ned employee development pathways, expanded training and career advancement opportunities, fostered a culture of innovation, andreinforced workplace health and safety, earning several Best Employer awards. We upheld responsible sourcing principles, integrating sustainabilityinto supply chain management, and hosted an annual partner exchange themed "Open and Inclusive, Win the Future with High Quality” to cultivate asustainable, cost-e?cient, and highly reliable brand-aligned supply chain. We strengthened our social contributions by supporting rural revitalizationand launching diverse charitable initiatives such as the "Dandelion" and "Light of Love" programs.
“
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Zhuzhou CRRC Times Electric Co., Ltd. (Times Electric) is a joint-stock enterprise under CRRC. Originating from its predecessor and parent company,CRRC Zhuzhou Electric Locomotive Research Institute Co., Ltd. established in 1959, the Company has been at the forefront of China's electri?edrailway equipment industry. Times Electric was o?cially founded in 2005 and successfully listed on the Hong Kong Stock Exchange on December 20,2006 (Stock Code: 3898). On September 7, 2021, the company was also listed on the Science and Technology Innovation Board (STAR Market) of theShanghai Stock Exchange (Stock Code: 688187), making it a dual-listed (“A+H” shares) enterprise in the railway transportation equipment ?eld.As a global leader in railway transportation and new energy industries, Times Electric is committed to technological innovation and high-qualitydevelopment. With the vision of becoming the world’s preferred supplier of comprehensive electrical system solutions for transportation and energy,as well as a leading model enterprise in its ?eld, the Company has established a complete industrial chain encompassing core components, devices& systems, and complete equipment & engineering solutions. Times Electric operates across nine key sectors, including rail transportation, newenergy power generation, and power electronics, with a well-established supply and service network spanning over 20 countries and regionsworldwide.Driven by a strong commitment to independent innovation, the Company has played a key role in formulating international standards and hasreceived numerous prestigious awards, including the China Patent Gold Award and the National Science and Technology Progress Award. It has alsocultivated a top-tier technical talent team led by esteemed academicians. As a core power provider for China's high-speed rail industry, Times Electrichas established a globally competitive edge in traction drive and control systems for rail transit, supporting China's Belt and Road Initiative and the“Going Global” strategy of high-end equipment.Amidst a new wave of technological advancements and industrial transformation, Times Electric unswervingly pursues green and sustainabledevelopment. The Company has deeply integrated China’s Dual Carbon (carbon peaking and carbon neutrality) goals into its business strategy,actively expanding in the new energy sector, and driving the innovation and application of green, low-carbon technologies to support global sustain-ability.Throughout its growth, Times Electric has remained dedicated to ful?lling its corporate social responsibilities, safeguarding shareholderinterests, strengthening its integrated industry-chain layout, enhancing self-su?ciency, and continuously improving resource e?ciencyand pro?tability. With innovation-driven, high-quality development, Times Electric provides safe, intelligent, green, and comfortablehigh-end equipment to the world, contributing to a more sustainable future.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
About Times Electric
Company Pro?le
2024
249.09 RMB 100 million
| 2023219.62 RMB 100 million | 2022181.26 RMB 100 million |
OperatingRevenue
Annual Economic Performance
2024
648.02 RMB 100 million
| 2023537.79 RMB 100 million | 2022488.42 RMB 100 million |
2024
13.42 %
| 202321.16 % | 202219.87 % |
2024
37.03 RMB 100 million
| 202330.41 RMB 100 million | 202225.45 RMB 100 million |
2024
10.00 RMB
| 20237.80 RMB | 20225.50 RMB |
2024
28.42 RMB 100 million
| 202321.87 RMB 100 million | 202218.58 RMB 100 million |
2024
11.41 %
| 20239.96 % | 202210.25 % |
TotalAssets
OperatingRevenueGrowthRate
Net Pro?tAttribut-able to
theShare-holders oftheParentCompany
CashDividendper 10Shares
R&DInvest-
ment
ThePropor-tion of
R&DInvest-ment toOperatingRevenue.* In December 2024, the Company acquired 100% equity interest in Hunan CRRC Commercial Vehicle E-Drive Technology Company Limited andincluded it in the scopeof the consolidated ?nancial statements. The transaction constitutes a business combination under the samecontrol; therefore, retrospective adjustments were madeto the ?nancial data of previous periods in accordance with the relevantrequirements of the Accounting Standards for Business Enterprises.
Economic Performance*
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Corporate Culture
MissionConnect the World, Bene?t
Mankind
Vision
To become a world-class enterprise
in the transportation and energy
sectors.
CRRC PhilosophyCore Values: Righteousness and Integrity, Goodness and SuccessOrganizational Climate: Harmony, Transparency, Sincerity, Inclusiveness. Work Ethos: Responsibility, E?ciency, Excellence
Corporate SpiritPracticality, Respect, Innovation,
Achievement
Twelve Key Principles
On Industry: Focus, Diversi?cation, Contribution tothe NationOn Work: Joy, Ful?llment, BalanceOn Talent: Expertise, Commitment, DedicationOn Reform: Progress, Boldness, LeadershipOn Marketing: Customer Focus, Integrity, TrustOn R&D: Openness, Self-Improvement, InnovationOn Manufacturing: Precision, Intelligence, DistinctionOn Quality: Reliability, Customer Satisfaction,Continuous ImprovementOn Safety: Prevention, Protection, ConsistencyOn Service: Engagement, E?ciency, ResponsivenessOn Risk Control: Responsibility, Security, SustainabilityOn CPC Strengthening: Cultivation, Loyalty,Deep Integration
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Milestones for 2024
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Times Electric secured a billion-yu-an contract for an urban rail intelligentoperation and maintenance system.Times Electric supported WuxiMetro in integrating 18 self-devel-oped green-intelligence technolo-gies into Line S1.The CRRC medium-voltage maindrive system for rolling mills,developed by Times Electric, wassuccessfully applied in GuochaoAluminum’s hot continuous rollingproject.
January 2024Jan
FebTimes Electric’s CRRC medium-volt-age main drive system for rollingmills was successfully commis-sioned at Wuxi Shuoyang StainlessSteel Co., Ltd.'s Phase III cold rollingproject.
February 2024
Times Electric celebrated the ?rstanniversary of the successfulapplication of its CRRC medium-volt-age main drive system for rolling millsin Hunan Valin Lianyuan Iron & SteelCo., Ltd.'s 1580mm hot rolling project.The CRRC medium-voltage maindrive system for rolling millsachieved a breakthrough in theheavy plate sector.
March 2024
Mar
Times Electric participated in theSolarEx Istanbul Fair in Turkey.Times Electric showcased its latestinnovations at the 2024 ChinaSmart Rail Transit Academic ForumG50.Times Electric contributed to thesuccessful trial operation of China’shighest-load freight train.Ningbo CRRC Times, a subsidiary ofTimes Electric, o?cially launchedindependently developed currentsensor chips and sensor products fornew energy vehicles at the 4thScience and Technology Festival ofCRRC Zhuzhou Institute.
April 2024Apr
A narrow-gauge AC drive diesellocomotive powered by TimesElectric’s core traction and controlsystem entered operation in SierraLeone, marking China’s largestexported locomotive in terms ofpower.
May 2024May
Times Semiconductor, a subsidiary ofTimes Electric, exhibited a range of powersemiconductor components, modules,and sensors at the PCIM Europe Expo.Times Electric presented its 2000Vphotovoltaic power generation systemsolutions and key technologies at theSNEC PV+ 2024 International PhotovoltaicConference & Exhibition.Times Electric participated in The SmarterE Europe 2024, showcasing its integrated“wind-solar-storage-hydrogen” solution.Times Electric played a key role inachieving a major breakthrough in fullyelectric deep-sea mining technologyTimes Electric supported the globallaunch of 7 new energy locomotives forCRRC.Times Electric supported the globallaunch of 7 new energy locomotives forCRRC.
June 2024Jun
Times Electric’s self-developedtraction network system support-ed the launch of a new series ofnew energy locomotives.Times Electric participated inASEAN Sustainable Energy Week inThailand.Times Electric’s centralized modularinverters (4400kW and 3300kWmodels) obtained SCR/SCCR weakgrid certi?cation from the ChinaElectric Power Research Institute.Times Electric contributed to thesuccessful operation of the newenergy light rail train in Jujuy,Argentina.
July 2024Jul
The unmanned mining truck projectat Shaanxi Shenyan Coal Co., Ltd.'sXiwan open-pit coal mine, undertak-en by CRRC Times Electric for CHNEnergy, successfully passed scienti?cand technological appraisal in Beijing.The company's self-developed"Tiangong" unmanned mining trucksystem was recognized as “interna-tionally leading.”Times Electric showcased itsurban railway and maintenanceinnovation solutions at the 2024Smart Rail Transit Conference.
September 2024Sept
The CRRC TGS6000 medium-volt-age drive system achieved its ?rstfully continuous rolling applica-tion, reducing the minimum ?nalproduct thickness to 1.5mm in asingle rolling process combiningrough and ?nish rolling.Times Electric completed the ?rst-everlarge track component replacementoperation on high-speed railway,successfully carrying out the No. 42turnout replacement.Times Electric’s Zero-CarbonZero-Carbon Intelligent EquipmentIndustrial Base was o?ciallyestablished in Linfen, Shanxi.
November 2024Nov
Times Electric won the bid for theworld’s largest greenhydrogen-ammonia-methanolintegration project.Times Electric supplied keycomponents for high-powerhydrogen-powered locomotives.Times Electric’s IGBT-basedhydrogen production powersupply enabled the commercialoperation of CHN Energy’sNingdong Renewable Hydrogenand Carbon Emission ReductionDemonstration Project.
August 2024Aug
Times Electric exhibited a range ofphotovoltaic and hydrogen produc-tion solutions at All Energy Australia2024, highlighting CRRC’s integratednew energy solutions.
October 2024Oct
Times Electric supported GuangzhouMetro in introducing new green-intelli-gent urban rail vehicles.Times Electric successfully developedChina’s ?rst photovoltaic inverter faultinformation collection technology.Times Electric o?cially released itsindependently developed TACSsystem, a next-generation "smartbrain" for trains.Times Electric supported CRRC CR450rolling stock prototype successfullyrolled o? the production line.
December 2024
Dec
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Honors & Awards
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
CRRC SMD (Shanghai) Ltd., a subsidiary of Times Electric, received the Superpower Award (Talent Group) for its“Deep-Sea Heavy-Duty Operation and Robotic System Project”, and the Superpower Award (Project Group) for its“Project on the Heavy-Duty Operation Robotic System for Deep-Sea Combustible Ice Exploration and Extraction” at the
2023 World Future Industries Competition.
Times Electric received the Second Prize of NationalManagement Innovation Achievements from CRRC.CRCCAwards
Two subsidiaries of Times Electric were selected in the
sixth batch of National Specialized and Innovative
"Little Giant" Enterprises.Nationalawards
IndustryAssociationAwards
Times Electric was awarded the In?uential Photovoltaic
Brand by the Hunan Renewable Energy Society.Provincial
awards
Times Electric was rated Grade A in theSino-Securities Index ESG Ratings.
Times Electric won the Second GuoxinCup – ESG Golden Bull Award (Top 50 Central SOEs)
from China Securities Journal.Times Electric received the 2024 Best ESGPractice Award for Listed Companies fromEasyBoard and VALUEONLINE.Times Electric receives the ChinaPreferred Employer of theYear 2024 by Zhaopin.com.
Times Electric was honored with the
Best Employer Brand of 2024 for
Talent Attraction by RISFOND
ESGAwards
Interna-
tionalawards
Times Electric was recognized as abenchmark "Science and Technology ReformEnterprise" by the State-owned AssetsSupervision and Administration Commissionof the State Council (SASAC), ranking 4thamong 349 participating enterprises.Times Electric was honored with the
Outstanding CorporateBrand Award in the “Chinese Central SOEs'
Initiative:
Lead with Brand” by SASAC.The CRRC National Transformer Center andNingbo CRRC Times, subsidiaries of TimesElectric, were recognized as a NationalManufacturing Champion in a Speci?c Field by
the Ministry of Industry and Information
Technology of China.
Times Electric won the First Prize in the sixth
"Empower Ten Thousand Enterprises withIntelligence" New Information Consumption
Competition in Hunan Province.
The IGBT chip manufacturing team of TimesSemiconductor, a subsidiary of Times Electric, was
honored as a National Youth Work Safety
Demonstration Post.Times Electric secured the Second Prize in the
Hunan Provincial IPv6 Technology Application
Innovation Competition.
The project “High-Voltage Large-Capacity DC
Breaking Semiconductor Devices, KeyTechnologies, and Series DC Circuit Breakers,"involving Times Electric, received the SecondPrize of the National Award for Technological
Invention in China.
Times Electric was awarded the 2024 Best Practiceof the Board of Directors for Listed Companies by
the China Association for Public Companies.
Times Electric achieved the highest rating (Grade A)for information disclosure among STAR Market-listed
companies.
Times Electric was recognized as an OutstandingCommittee Member by the China Association ofAutomobile Manufacturers (CAAM).Times Electric was honored with the FutureManufacturing Industry Star Listed Company Award atthe Second China Listed Company Industry Develop-
ment Forum.
Times Electric was recognized as the AnnualInnovative Enterprise in the 2024 YICAI Capital Market
Value List.
The "Digital Practice of Internal Control Management Based on LTC Process" by Times Electric was shortlisted asan exemplary case of the year for digital transformation of internal control by the China Academy of Information
and Communications Technology.
Times Electric was ranked among the Top 30 MostValuable STAR Market Companies in the 18thAwards of the Value of Listed Companies in China.Times Electric received the 2024 Capital OperationsGold Award from the Shanghai United Assets and
Equity Exchange.Times Electric won four Solarbe Awards: MostIn?uential Photovoltaic Inverter Enterprise, MostIn?uential Photovoltaic Energy Storage SolutionEnterprise, Leading Enterprise in HydrogenProduction Power Supply, and Outstanding PCSSupplier in China’s Energy Storage Industry.The case study "Lead Innovation, Drive the Futurewith Intelligence" by CRRC Electric Drive, asubsidiary of Times Electric, won the Win-Win
Cooperation Award from the CAAM.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key Performance Indicators
Theme of 2024:
InnovationDrivingHigh-QualityDevelopment
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Sustainability shapes the future andinnovation powers progress. With a?rm commitment to advancinggreen development, Times Electriccontinues to promote innovation insustainable technologies. At theforefront of industry advance-ments, the Company plays a keyrole in shaping industry standards,fostering high-quality and sustain-able growth.
Rooted in the transportation and energy sectors, Times Electric remains dedicated toworld-class excellence and high-quality development. Through continuous innovation anddiversi?ed yet focused strategies, the Company delivers safe, intelligent, and eco-friendlyhigh-end equipment. We are accelerating the development of new energy solutions, achievingsigni?cant breakthroughs across key areas.We push forward the product development of railtransportation equipment and emerging equipment with all its strength, makes signi?cantbreakthroughs in many key areas, contributing to the advancement of green and energy-e?-cient technologies. These innovations are driving synergy across the industry value chain,fostering a collective transition toward a sustainable future.
As of the end of 2024Times Electric had been granted3,762 patents in total
including
2,366 invention patents
1,270 utility model patents
and126 design patents
Over the yearnew patent applications were ?led
with278 granted
of which416 were invention patent applications
and206 were granted
In December 2024, the Green and Intelligent Urban Rail Vehicles for GuangzhouMetro Line 12 were o?cially rolled out at CRRC Guangzhou. Times Electricsupplied three core systems: a full-silicon carbide permanent magnet tractionsystem, a DC600V high-frequency silicon carbide auxiliary system, and a SIL 2network control system—all incorporating industry-leading energy-saving andeco-friendly technologies. The application of the silicon carbide permanentmagnet traction system has increased converter e?ciency by over 1%,achieving an estimated energy savings of over 15% compared to traditionalasynchronous traction systems. Additionally, the DC600V high-frequency siliconcarbide auxiliary system, leveraging direct current grid-connected power supplytechnology, has improved e?ciency by more than 2% compared to convention-al auxiliary systems, further enhancing energy conservation and e?ciency. Thegreen and intelligent urban rail vehicle serves as a benchmark for technologicalinnovation in the industry. The project plays a critical role in advancing theindependent innovation of rail transit products, accelerating the expansion ofthe industry and standardization of rail transit equipment, and promotingChina’s transition toward greener and smarter rail transportation.Guangzhou Metro Green and Intelligent Urban Rail Vehicle
In 2024, the inverter team at Times Electric collaborated with the Power Dispatching Control Center of China Southern Power Grid, theProvincial Power Dispatching Control Center of Yunnan Power Grid, and Huadian Yunnan Power Generation Co., Ltd. to tackle technicalchallenges. Together, we developed an advanced PV sub-array data acquisition device capable of automatically converting standard faultrecording ?les and enhancing interoperability across di?erent manufacturers and protocols. This innovation signi?cantly reduced the timerequired to retrieve fault recording data from the conventional 2–3 days to just minutes. Successfully implemented at the Shila PV PowerStation in Yunnan, the technology became the ?rst in China to transmit new energy inverter fault information to both provincial andnational power dispatching centers, greatly improving fault response e?ciency and the operational management of renewable energysystems. This milestone enables power generation companies to take full control of fault analysis for string inverters, setting a newbenchmark for remote fault diagnostics. It also marks a critical step toward centralized, panoramic remote control for PV power stations.
PV Inverter
Case: Times Electric Pioneers China’s First Fault Data Collection Technology for PV Inverters
Advancing Green Development:
Innovating Technologies forLow-Carbon Products
Case: Times Electric Powers Guangzhou Metro’s Green and Intelligent Urban Rail Vehicles
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
In April 2024, SOLAREX ISTANBUL, Turkey’s premier international solarenergy exhibition, was held at the Istanbul Expo Center. As a leader inrail transit equipment and green energy solutions, Times Electricparticipated in the event, presenting its latest advancements in integrat-ed solar-storage technology. With a focus on sustainable energy, theCompany showcased its 320kW string inverter—designed for large-scaleground-mounted solar power stations—and its 35kV cascaded energystorage system. These innovations o?er comprehensive, one-stopsolutions for solar projects across the Eurasian continent.
Times Electric at SOLAREX ISTANBUL 2024
Shaping Industry Standards:
Focusing on Key Areas for Industry Growth
Times Electric delves deep into key sectors such as rail transit. Driven by innovation and collaboration, the Company leads and participates inthe formulation of national and industry standards with a global perspective. Through its solid technical expertise and continuous innovatione?orts, Times Electric actively promotes the upgrading and transformation of rail transit technologies, leading industry progress. At the sametime, the Company collaborates extensively with upstream and downstream enterprises, research institutions, and universities to jointlyadvance the scienti?c development and re?nement of standards, ensuring their broad applicability and practicality.
CategoryQuantity
International StandardNational StandardIndustry Standard
In December 2024, the Annual Meeting of the National Technical Committee 278 on Electric Equipment and Systems for Railways ofStandardization Administration of China was successfully held in Beijing, with Times Electric representatives in attendance. As thesecretariat of the Committee (SAC/TC278), the Company is responsible for national and industry standardization in the ?eld of rail transitelectrical equipment and systems. Times Electric actively participates in the development of national standards, having contributed to thecreation of 70 standards and led the formulation of 11 among the 121 international standards released by IEC/TC9. These e?orts continu-ally fuel the high-quality, coordinated operation of regional rail transit and the advancement of rail electrical equipment.
2024 Annual Meeting of the National Technical Committee 278 on ElectricEquipment and Systems for Railways of Standardization Administration of China
Case: Times Electric Actively Contributes to Standardization Research
Case: Times Electric Participates in the 2024 China Smart Rail Transit Academic ForumG50 to Exchange Ideas for a Better FutureIn April 2024, the 2024 China Smart Rail Transit Academic Forum G50 (Spring Session) took place in Shijiazhuang, with the theme "Techno-logical Innovation for Safer, Easier, Greener, and Smarter Rail Transit." Times Electric, as one of the co-organizers, attended the event. TheCompany presented two thematic reports focusing on the energy-saving transformation of rail transit and the high-quality developmentof urban rail transit, addressing common challenges and issues faced by the industry.
2024 China Smart Rail Transit Academic Forum G50
Standards Led/Participated by Times Electric in 2024
Case: Times Electric Showcases Innovation at SOLAREX ISTANBUL 2024
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Times Electric has strengthened its sustainability governance by embedding ESGconsiderations into the Company’s daily operations. The Company has establishedclear ESG goals and developed a robust management framework and operationalsystem, providing a solid foundation for sustainable development. We maintain activecommunication with stakeholders on ESG issues, forming a signi?cant issue matrix toadvance the Company’s sustainable development initiatives.
Sustainability Management
In line with the Working Rules of the Strategy and ESG Committee of the Board of Directors and other relevant regulations, Times Electric hasestablished an internal ESG governance structure to promote standardized ESG management. In November 2024, the Company o?cially launched theESG Management Working Group, which includes the leadership team, the guidance team, and the execution team. The execution team spans acrossall departments to ensure that ESG e?orts are comprehensively implemented throughout the Company. The ESG Management Working Group, inalignment with the strategic objectives set by the Board Strategy and ESG Committee, integrates ESG management across three core areas—strategyand business, operations and processes, and governance and organization. Besides, it formulates ESG management plans, breaking them down intospeci?c performance indicators and tasks.
Sustainability Management Structure
Board of Directors
Board Strategy andESG Committee
ESG Management
Working Group
DecisionMaking Level
ManagementLevel
ExecutionLevel
Leadership TeamGuidance TeamExecution Team
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
ESG Governance Structure
Chaired by the Chairman of the Board,the Committee reports to the Board ofDirectors. It coordinates policy research,sustainable development strategyplanning, major investment and ?nancingprojects, and the evaluation andsupervision of ESG-related matters.
Board Strategy andESG Committee
The highest decision-making body for ESGmanagement, responsible for overseeingthe overall direction and strategicplanning of the Company’s ESG e?orts.
Board of Directors
Responsible for coordinating ESG e?ortsacross departments, ensuring steadyprogress in implementing ESG strategies.It also manages the ESG informationdisclosure mechanism and reportpreparation, ensuring transparency andaccuracy, while engaging with stakehold-ers and integrating their feedback intovarious operations.
Management Working Group
Times Electric is committed to building a solid foundation in corporate governance. The company focuses on key issues such as addressing climatechange, environmental compliance management, pollutant emission management, waste treatment, product quality and safety, occupational healthand safety, research and innovation, supply chain management, and risk management. By continuously optimizing its ESG system, Times Electricintegrates ESG principles into its core business operations.
Sustainability System Development
Establish Times Electric as a benchmark company in ESG management, achieving high-quality, high-performance, and sustainable development.
ESG Development Objective
ESG Goals and Prioritiesin Three Phases
Accelerate the enhancement of theESG governance structure andencourage participation from themanagement team and relevantdepartments.
Enhance the ESG managementorganization to improve ESGmanagement (structure, mechanisms,training, evaluation).
Phase I
Leverage ESG governance as a keydevelopment opportunity andintegrate it into the Company’sstrategic and governanceframeworks.
Benchmark against ESG bestpractices to establish a comprehen-sive ESG management system(strategy, performance, practices).
Phase II
Utilize ESG to identify value growthopportunities, mitigate environmen-tal, social, and governance risks, andbuild a sustainable competitive edgethrough strategic transformation andbusiness management.
Innovate ESG management practicesto continuously improve ESGmanagement (ecosystem develop-ment, performance evaluation, deepintegration).
Phase III
Phase
Goal
Priority
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Times Electric integrates sustainability principles into its corporate strategy, committing to continuously drive innovation across business, technology,and management. The Company strives to create "smart and low-carbon electrical systems," o?ering society intelligent, safe, green, and comfortablehigh-end equipment. Our goal is to become the world’s preferred supplier of comprehensive electrical system solutions for transportation andenergy.As the highest decision-making body, the Board of Directors is responsible for decisions on major ESG issues. In 2024, the Board made the followingdecisions on ESG-related matters:
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Board Statement
In March 2024, the Board approved the 2023 Corporate Social Responsibility and Environ-mental, Social, and Governance (ESG) Report of Zhuzhou CRRC Times Electric Co., Ltd.;In June 2024, independent directors and supervisors participated in discussions regarding the2024 ESG Improvement Action Plan.Times Electric places great emphasis on communication with stakeholders. In line with the characteristics of its industry and business operations, theCompany conducts a signi?cance analysis to evaluate and rank issues based on their potential signi?cant impact on the Company’s business model,operations, strategic development, ?nancial condition, business outcomes, cash ?ow, ?nancing methods, and costs in the short, medium, and longterm (i.e., ?nancial materiality). Additionally, the Company assesses whether its performance on these issues will have a signi?cant impact on theeconomy, society, and environment (i.e., impact materiality). The Company will assess, review, and con?rm these results in March 2025.In March 2025, this Report was reviewed and approved by the Board of Directors.
StakeholderConcernsCommunication & Response
Product quality and safetyR&D innovation
Social welfareIndustry collaboration
Industry conferences andforumsStandards formulationworkshops
Academic research activities
Industry Associations
Social welfareCharitable donations
Charitable Organizations
Sustainability strategyProduct quality and safety
Social welfare
Press conferencesExclusive interviews
Information disclosure
Local economic development
Volunteer activitiesCommunity involvement
Charitable donations
Media
Social welfareBiodiversity
Public & Communities
Risk managementBusiness ethics
Supply chain managementIndustry collaboration
Supplier meetingsRegular exchanges andcommunicationsSupply chain audits
Compliance training andpromotionCompany websiteRegular reportsSuppliers
Product quality and safetySupply chain managementHigh-quality serviceR&D innovation
Information security andprivacy protectionGreen productsClean technology R&D
Customer satisfactionsurveysCustomer visitsComplaint handling
Full-lifecycle productsand servicesSupply chain audits
Customers
Times Electric recognizes the critical role stakeholders play in the Company’s sustainable development. We have established regular communicationmechanisms to maintain strong relations with both internal and external stakeholders, ensuring we stay informed about their concerns and sugges-tions. These insights are actively incorporated into our sustainable development practices to enhance management e?ectiveness. Additionally, wecontinuously optimize and adjust communication channels to address stakeholders' concerns, fostering mutual trust and achieving a win-winsituation for sustainable development.
Stakeholder Communication
StakeholderConcernsCommunication & Response
Compliance operationBusiness ethicsCorporate governanceResource and energy useEmission management
Energy-saving and carbonreductionR&D innovationClimate change responseLocal economic development
Honest business practicesProactive tax paymentSupervision and inspections
Meetings and discussionsInformation disclosureGovernment & Regulators
Corporate governanceRisk managementStakeholder communicationBusiness ethics
Sustainability strategyR&D innovationIntellectual propertyprotection
Pro?t distributionInformation disclosureShareholders' meetingsRegular reports
ESG reportsPerformance brie?ngsRoutine investor meetings,conference calls, roadshows,etc.
Investors/Shareholders
Employee rights andwell-beingEmployee diversity andequality
Employee training anddevelopmentOccupational health andsafety
Employee congress and unionEmployee satisfaction surveysEmployee feedback platform
Occupational healthcheck-upsEmployee seminarsEmployee trainingEmployees
Times Electric actively identi?es key issues critical to its sustainable development. Building on past practices, we have incorporated a ?nancial perspec-tive into the material issue assessment process for the ?rst time. Through online surveys, we gather stakeholders' concerns and expectations. Basedon the characteristics of the industry and the Company’s business operations, we assess and rank issues from both an impact materiality and ?nancialmateriality perspective. This process results in a double-materiality issue matrix, which provides valuable insights for the Report’s key disclosures andfurther enhances the relevance and e?ectiveness of the Company’s ESG management.
The Company actively conducts double-materiality issue analysis and evaluation to accurately understand and respond to the issues most relevant tostakeholders. This enables more e?ective identi?cation and management of risks and opportunities. In 2024, Times Electric adopted a four-stepprocess—Issue Identi?cation, Issue Research, Issue Evaluation & Analysis, and Issue Review & Con?rmation—to assess both ?nancial and impactmateriality. The speci?c process is as follows:
Double-Materiality Issue Assessment
Materiality Identi?cation Process
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
In 2024, the Company conducted research and evaluations on 26 ESG issues based on the double-materiality principle. As a result, 13 issues wereidenti?ed as having high impact materiality, while 6 were classi?ed as ?nancially material. The resulting materiality list is as follows:
Materiality LevelEnvironmentalSocialGovernance
Double-Materiality Issue Matrix
Clean technology R&DEnergy-saving and carbon reductionClimate change response*Emission management
Product quality and safety*Occupational health and safety*R&D innovation*Employee rights and well-beingInformation security and privacyprotection
Corporate governanceBusiness ethicsRisk management*
Compliance operation
High
Resource and energy useEmployee diversity and equalityGreen productsSupply chain management*
Employee training and developmentHigh-quality serviceIntellectual property protectionIndustry collaborationLocal economic development
Stakeholder engagementSustainability strategy
Medium
BiodiversitySocial welfareLow
Issues marked with * are considered?nancially material for Times Electric in 2024.
SocialEnvironmental
Times Electric 2024 Double-Materia
Times Electric has conducted an analysis and summary of the impact areas, potential risks, opportunities, and ?nancial impacts. In accordance withthe Guidelines No. 14 of the Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report, the Report provides keydisclosures regarding the corresponding management strategies and actions in relevant sections.
Issues of Financial Materiality
Product Quality and SafetyImpact AreasPotential RisksPotential OpportunitiesPotential Financial ImpactsFurther Management
Details
Production, company operationsProduct recalls due to quality and safety issues, a?ecting customer satisfaction and company reputation.Building a product quality and safety system to enhance market competitiveness through high-qualityproducts.
Please refer to Section "Quality Management" and the ESG Key Performance Table.Risks: Reduced revenue and increased costs from product recalls; increased management costs tostrengthen product quality management systems.Opportunities: Increased revenue driven by high-quality products
Based on guidelines from the HKEX and the SSE, GRI standards,UN SDGs, and industry practices, the Company established its2024 ESG material issue list, considering business characteris-tics and industry trends.
Issue Identi?cation
nternal and external stakeholders were invited to evaluate the?nancial and impact materiality of issues through onlinesurveys.The impact materiality survey covered 11 stakeholder groups,including management, employees, suppliers, customers,investors, communities/public, government/regulators,industry associations, charitable organizations, media, andothers. The ?nancial materiality survey was targeted at internalmanagement personnel.
Issue Research
Survey data was processed and analyzed using a compre-hensive, quantitative ranking approach. Issues were rankedbased on both "impact materiality" and "?nancial materiali-ty" to develop the materiality matrix
Issue Evaluation & Analysis
CorporateGovernance
Unimoprtant ImportantFinancial Materiality
Impact MaterialityHighModerate
Clean Technology R&DEnergy-saving and carbon reductionEmission managementEmployee rights and well-beingInformation security and privacy protectionCorporate governanceBusiness ethicsCompliance operationsResource and energy useBiodiversityEmployee diversity and equalityGreen productsEmployee training anddevelopmentHigh-quality serviceIntellectual property protectionIndustry collaboration
Local economicdevelopmentSocial welfareStakeholderengagementSustainabilitystrategy
Supply chain management
Climate change responseProduct quality and safetyOccupational health and safetyR&D innovationRisk managementExternal experts provided feedback on material issues andrankings, which were then reviewed and validated by theCompany’s management.
Issue Review & Con?rmation
Times Electric 2024 Double-Materiality ESG Issue List
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Climate Change ResponseImpact AreasPotential RisksPotential Opportunities
Potential Financial Impacts
Further Management Details
Production disruptions resulting from extreme weather; failure to promptly meet customer demand forlow-carbon products and services; increased investment in emission reduction to comply with strictercarbon emission regulations.Market expansion and enhanced company reputation driven by innovations in energy-saving andcarbon-reduction technologies.
Please refer to Section "Climate Change Response" and the ESG Key Performance Table.
Risks: Increased management costs due to carbon emission restrictions; short-term ?nancial lossescaused by physical risks such as extreme weather; increased costs from energy transition and technologi-cal innovation.
Opportunities: Increased revenue from energy-saving and carbon-reduction technology applications;
reduced operational costs driven by advancements in clean energy technologies, such as solar and windpower, promoting energy transition and equipment upgrades.
Occupational Health and SafetyImpact AreasPotential RisksPotential OpportunitiesPotential Financial ImpactsFurther Management Details
Production, company operationsReduced production e?ciency and employee satisfaction due to occupational diseases or work-relat-ed injuries.Building an occupational health and safety system to e?ectively prevent occupational diseases andaccidents, enhance employee care and responsibility, and attract and retain talent.
Please refer to Section "Occupational Health and Safety" and the ESG Key Performance Table.Risks: Increased management costs to strengthen occupational health and safety management systems.Opportunities: Lower insurance payouts and employee turnover rates, attracting and retaining talentthrough enhanced occupational health and safety management systems.
Risk Management
Impact AreasPotential RisksPotential OpportunitiesPotential Financial ImpactsFurther Management Details
Company operationsOperational, reputational, and ?nancial risks resulting from inadequate systems and structures.Improving systems and structures and enhancing risk control to ensure the Company's stableoperations.
Please refer to Section "Risk Management".
Risks: Increased operational costs due to enhanced risk management e?orts, including but not limited to
audit costs; revenue loss due to reputational damage.Opportunities: Reduced litigation costs resulting from improved risk management systems.
Supply Chain ManagementImpact AreasPotential RisksPotential Opportunities
Potential Financial Impacts
Further Management Details
Company operationsSupply disruptions, demand ?uctuations, compliance risks, quality control, and technological risks.Establishing strategic partnerships with suppliers to jointly develop new products or technologies,lowering costs and enhancing market competitiveness; implementing green supply chain managementto reduce environmental impact and enhance brand image.
Please refer to Section "Responsible Procurement to Build a Sustainable Supply Chain" and the ESGKey Performance Table.
Risks: Supply disruptions a?ecting production and delivery; rapid market demand changes leading to
excess inventory or stockouts, impacting cash ?ow and operating pro?ts; regulatory compliance require-ments for cross-border procurement, resulting in higher operational costs and legal responsibilities;product quality issues from suppliers a?ecting the ?nal product quality and company reputation.
Opportunities: Cost savings through re?ned management practices.
Research and Development Innovation
Impact AreasPotential RisksPotential OpportunitiesPotential Financial ImpactsFurther Management Details
Company operationsIncreased research and development costs; reduced market share due to technological obsolescence.Enhancing market competitiveness through technological innovation.
Please refer to Sections "Technology Innovation and R&D Management", "Green Innovation and R&D"and the ESG Key Performance Table.
Risks: Increased research and development costs.Opportunities: Increased revenue from improved product competitiveness.
Company operations, strategic planning
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Times Electric adheres to party building leadership and steadfastly advances governance systemmodernization. We are dedicated to fostering diversity and independence within the board ofdirectors. With compliant operations as the foundation, we uphold business ethics, embraceintegrity and transparency, enhance information disclosure, and ensure e?ective investorcommunication. Through practical actions, we demonstrate our responsibility and commitment,striving for synergistic growth in company value and shareholder equity.
SDGs Addressed in This Chapter
Robust Governance:
StrengtheningCorporate Foundation
Key Sustainable Development Issues in This ChapterCorporate GovernanceRisk ManagementCompliance OperationsBusiness Ethics
Key Performance IndicatorsTimes Electric operates strictly in compliance with the "Company Law of the People's Republic of China" and the "Securities Law of the People's Repub-lic of China", as well as regulations of the China Securities Regulatory Commission, requirements of the Shanghai Stock Exchange and the Hong KongStock Exchange. We continuously re?ne our internal management system, establishes a comprehensive, professional, and e?ective governancestructure to ensure board independence, diversity, and professionalism, thereby stabilizing operations and enhancing corporate value.
Enhancing Corporate Governance
To further solidify the foundation of standardized governance, the Company has revised key regulations, including the "Articles of Association", "Rulesof Procedure for Shareholders' Meetings, Board Meetings, Supervisory Board Meetings", and "Working Regulations for Independent Non-ExecutiveDirectors".We strictly adhere to the decision-making and execution mechanisms of the "three meetings and one level" (shareholders' meetings, board meetings,supervisory board meetings, and management level). The shareholders' meeting serves as the Company's supreme power organ, and the board ofdirectors and supervisory board are accountable to it, exercising their respective powers and functions in accordance with the law. The board hasestablished six specialized committees: the Board Strategy and ESG Committee, the Audit Committee, the Nomination Committee, the RemunerationCommittee, the Risk Control Committee, and the Science and Technology Innovation Committee. These committees operate in a standardizedmanner and make professional decisions. In 2024, to enhance the performance of these committees, we increased discussions on science andtechnology innovation and ESG-related matters, meeting governance requirements from multiple dimensions.In 2024, we held 4 shareholders' meetings, 10 board meetings, 6 supervisory board meetings, and numerous specialized committee and independentdirector meetings in accordance with laws and regulations.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
General Meeting ofShareholders(Held 4 meetings in 2024)
Board of Directors(Held 10 meetings in2024)
Board of Supervisors(Held 6 meetings in 2024)
Board Strategy and
ESG Committee(Held 3 meetings in 2024)
Audit Committee(Held 5 meetings in2024)
Risk ControlCommittee(Held 3 meetings in2024)
Remuneration
Committee(Held 5 meetings in2024)
NominationCommittee(Held 4 meetings in2024)
Technology Innovation
Committee(Held 2 meetings in 2024)
Board Diversity and IndependenceThe Company continues to enhance the diversity and independence of its Board ofDirectors in accordance with its published Board Diversity Policy..In selecting Board members, we adhere to a set of diversity criteria, encompassing ethnicity, race, nationality, gender, age, cultural and educationalbackground, professional experience, skills, knowledge, and tenure. Our Independent Directors diligently ful?ll their responsibilities in strictaccordance with regulations, utilizing their extensive professional experience to o?er independent judgments and reasonable advice on the Group'smajor decisions. Notably, Lam Siu Fung, an Independent Non-Executive Director, brings over 25 years of accounting expertise, with profoundknowledge in auditing, accounting, and taxation in Hong Kong and Chinese Mainland. In 2024, the Company appointed an additional ExecutiveDirector and a female Independent Director, further diversifying the Board.
A total of7 Board members
4 Independent Directors,
accounting for 50 % of the Board
1 Female Director,
accounting for
14.29 % of the Board
Li DonglinChairman, Executive Director
Professor-level Senior Engineer.Major in Electric Traction andDrive Control
Li KaiguoIndependent Non-Executive Director
Researcher-level Senior Engineer, Expert in Scienceand Technology of China Machinery Industry, ExpertReceiving Special Government Allowance from theState Council
Zhong Ninghua
Independent Non-Executive DirectorMajor in Economics, Finance
Lam Siu Fung
Independent Non-Executive DirectorMajor in Accounting. Certi?ed Public Accountant inHong Kong
Feng Xiaoyun
Independent Non-Executive DirectorMajor in Electric Locomotives, Power Electronics andElectric Drives
Shang Jing
Vice Chairman, Executive DirectorMajor in Mechanical ElectronicEngineering, Power Systemsand Automation, ControlScience and Engineering
Xu Shaolong
Executive Director, General ManagerMajor in Automation, ElectricalEngineering, TransportationEngineering
Organization Structure
Management of Related Party TransactionsThe management of related party transactions of the Company strictly complies with the relevant listing rules and regulatory requirements of theShanghai Stock Exchange and the Hong Kong Stock Exchange, and follows the principles of honesty and credit, equality, voluntariness, equivalence,openness and compensation, and strictly standardizes and manages the process of forecasting, signing of agreements, approving, disclosing andcontrolling of connected transactions, and has updated and revised the “Related Party Transaction Management System” in this year to continuallyimprove the management of transaction and systems.During the year, the Board of Directors considered a total of 12 proposals on related transactions, and all related directors of the Company recusedthemselves from voting in accordance with the regulations. The Audit Committee was established under the Board of Directors, and the independentdirectors and auditors reviewed the connected transactions on a quarterly basis to strengthen the guidance and supervision of connected transac-tions. Meanwhile, the Company has completed the information disclosure with high quality to ensure the fairness, justice and equity of the connectedtransactions, to safeguard the interests of the Company and all the shareholders, and to ensure the sound development of the Company.Two proposals on connected transactions were considered at this year's shareholders' meeting, among which, the proposal on the signing of the“Framework Agreement on Financial Services for the Period from 2024 to 2027” with China Railway Finance Corporation Limited and the estimationof daily connected transactions was approved by 92.57% of the votes of the non-connected shareholders, after the Company had engaged a HongKong-based independent ?nancial adviser to provide a professional opinion on the proposal."2024-2027 Financial Services Framework Agreement"with CRRC Financial Co., Ltd. and the estimation of daily connected transactions was approved by 92.57% of the votes of the non-connectedshareholders, after the Company had engaged a Hong Kong-based independent ?nancial adviser to provide a professional opinion on the proposal.
Professional Background of Board Members
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Times Electric proactively advances corporate compliance management, and integrates compliance requirements into its fundamental systems andbusiness processes. The Company re?nes its compliance management system, regularly promotes compliance culture, and provides competencytraining for all employees, thus laying a solid foundation for stable and sustainable operations.
Deepening Compliance-Driven Operations
Compliance Management System
The Company strictly abides by laws and regulations, such as the "Company Law of the People's Republic of China", "Civil Code of the People's Repub-lic of China", and "Price Law of the People's Republic of China". During the reporting period, Times Electric newly issued several institutionaldocuments, including the "Management Measures for Compliance Review", "Management Measures for Compliance Risk Identi?cation, Assessment,and Early Warning", "Management Measures for Corrective and Preventive Actions Against Non-Compliant Behaviors", and "Management Measuresfor Compliance Reporting and Investigations". Moreover, the Company revised existing regulations like the "Compliance Management Measures" and"Management Measures for Relevant Laws and Regulations" to strengthen its compliance framework.The Company has established a clear, e?cient, and collaborative four-tier compliance management structure, consisting of the Board of Directors,the Compliance Committee, the Compliance Management O?ce, and specialized compliance management teams. These teams are divided into eightgroups according to key compliance areas, ensuring high-quality compliance operations throughout the organization.
CorporateGovernance& SecuritiesRegulationComplianceManage-ment Team
Technology&IntellectualPropertyComplianceManage-ment Team
ProductQualityComplianceManage-ment Team
Financial &TaxComplianceManage-ment Team
Labor &Employ-mentComplianceManage-ment Team
Safety &Environ-mentalComplianceManage-ment Team
Strategy,Investment& CapitalOperationsComplianceManage-ment Team
MarketTransaction& BusinessPartnerComplianceManage-ment Team
Board of Directors
Compliance Committee
Compliance Management O?ce
Specialized Compliance Management Teams
Times Electric Compliance Management Structure
Report to the Risk Control Committee of the Board of Directorson compliance management.Review the fundamental compliance management system.Oversee the setup and adjustment of the compliance manage-ment structure.
Review reports on major compliance risks.Ensure resource allocation and budget support for compliancemanagement.
Establish and improve the compliance managementsystem.Organize and execute daily compliance manage-ment and special compliance initiatives.Develop the annual compliance management workplan and reports.
Conduct compliance risk assessments and compile the risk list,the responsibility list, and the compliance process control list.Draft daily documents for the Compliance Committee andsubmit related materials.Support compliance-related initiatives led by superior depart-ments.
As the highest governing, decision-making, and supervisory body for compliance-related matters, hold ultimateresponsibility for the Company’s compliance policies, strategies, objectives, performance, and reporting.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key Performance Indicators
In pursuit of strategic business goals, Times Electric has been steadfastly advancing the audit and risk control work plan. Employing a methodologycentered on problem solving, goal attainment, and result orientation, the Company has seamlessly integrated internal audit, risk management, internalcontrol, and violation accountability management into a uni?ed operational framework. Adhering scrupulously to relevant laws and regulations, TimesElectric has established 28 institutional processes in risk and internal control management, which cover management requirements for internal audit,risk management, internal control, and violation accountability, applying uniformly across the enterprise. In 2024, the Company revised the "EconomicContract Audit Management Measures" and o?cially issued the "Implementation Measures for Accountability for Illegal Business Investments", therebyfurther strengthening the audit and risk control system.
Enhanced Audit and Risk Management
Internal Audit
The Company adheres to scienti?c and advanced audit principles, fostering comprehensive audit oversight to ensure authoritative and e?cientutilization of audit results. We strengthen audit team development, innovate audit practices and methodologies, which help to advance internalcontrol management, mitigate signi?cant risks, and enhance audit value-added functions. These e?orts safeguard the high-quality development ofdigital electrical systems and the intelligent era. Annually, we conduct special audits focusing on areas such as purchasing and sales.The Company complies with 13 internal institutional documents, including the “Measures for the Audit and Supervision of Overseas Enterprises ofZhuzhou CRRC Times Electric Co., Ltd.", "Measures for the Management of Internal Audit Information", "Internal Audit Work?ow", "Internal AuditHandling and Penalty Work?ow", and "Financial Audit Management Measures", actively driving audit initiatives. During the reporting period, auditplans were implemented for entities identi?ed with issues, prompting timely recti?cations.The Company continues to promote digital audits, with the formulation of the "Management Plan for Digital Audit Early Warning Indicators", establish-ing rules and logic for these indicators. Five key warning indicators of audit have been developed, enabling real-time monitoring and sector-speci?cdashboard and report displays in electrical digitization. This system aims to ensure that the Company's operational risks are monitored in a timely ande?ective manner.
Conducted audits on67 related entities
issuing
61 audit reports.Completed
5 planned audit projects
including economic responsibility audits of former general managers of
6 companies,such as Shanghai CRRC SMD Company and Ningbo CRRC TimesEquipment Co., Ltd.,special audits of the Railway Business Unit, Signaling Company, and Ningbo Sensing Agents and Distributors,credit limit risk audits for emerging strategic industries, and operating indicator audits for16 business units
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
In 2024, the Company de?ned a series of speci?c compliance management processes, covering fundamental principles, organizational structure,control and operational mechanisms, performance evaluation, and cultural development. By building an e?ective compliance management system, theCompany has further mitigated compliance risks and obtained the GB/T 35770 - 2022/ ISO 37301:2021 Compliance Management System Certi?cation.
Times Electric Compliance Management System Certi?cation
Compliance Culture DevelopmentThe Company attaches great importance to creating a compliance culture and integrates compliance topics into employee training programs. Each year,an annual compliance training plan is formulated in line with relevant regulations, and compliance training activities are organized to keep employeesupdated on compliance requirements and the latest developments in relevant laws and regulations.
The Company has carried out multiple compliance training sessions to reinforce compliant behavior among employees. On March 15, 2024,in accordance with the "Guidelines for Building a Powerful Country with Intellectual Property Rights (2021-2035)" and the "14th Five - YearNational Plan for Intellectual Property Protection and Application", the Company organized a specialized training session on trade secretprotection. This training aimed to help subsidiaries, departments, and functional units understand relevant trade secret laws andregulations and enhance their capabilities in managing and protecting such information.
Compliance Training for New Employees in Subsidiaries, Departments, and Functional Units
Case: Specialized Training on Protecting Trade Secrets in Management and Transactions
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Honors and Awards
The paper "Research on the High-quality Development Path of Internal Audit under theNew Situation: Taking the Practice of Rail Transit Enterprises as an Example"
won an award for outstanding papers inHunan Province's audit theoretical research.
Key Performance IndicatorsCompleted
8 unplanned audit projects due to new requirements
including the addition of
7 post-evaluation audits of investment projects requested by CRRC GroupFull coverage audits of a total of27 domestic and overseas subsidiaries
achieved audit reductions exceeding1,000 in engineering audits
Conducted anti-corruption audits with
100 % procurement project coverage
In 2024, the Company accessed data, conducted sampling, and analyzed data through digital application systems like SAP, SRM, LCS, andDigital Finance. We made full use of tools such as data pivots for in-depth data analysis, pinpointed suspicious points, collected andveri?ed information on site, and con?rmed problem areas. Subsequently, through a shared platform, audited entities uploaded audit-re-lated data. We then exchanged views via online video conferencing to carry out special audit work. This approach minimized on-sitedisruptions to audited entities, saved travel expenses and time, and signi?cantly enhanced audit work e?ciency. Through digital remoteauditing, we conducted special audits of agents for Ningbo Times Sensing, Semiconductor Company, and Hunan Signaling Company, aswell as full-coverage audits of overseas companies such as Dynex Corporation, SMD UK Ltd., Hong Kong Subsidiary, U.S. Subsidiary, greatlyimproving both the e?ciency and e?ectiveness of audit work.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
In 2024, to summarize investment experience, the Company adopted a project post-evaluation index system integrating qualitative andquantitative methods as the core. We reviewed the entire process from initiation to operation for 7 investment projects, including CRRCElectric Drive, Semiconductor, Manufacturing Center, Chongqing Times, and Australian company. This endeavor enhanced our ability toprevent and mitigate major investment risks and improved our investment management capabilities. In accordance with the audit plan,from June to November, we completed the initiation, data collection, research and interviews, problem identi?cation, item-by-item projectevaluation and scoring, report compilation, and review and con?rmation for 7 post-investment evaluation projects, and problems werefound in the areas of lagging project acceptance and pre-investment risk assessment.
Case: Establishing a Post-investment Evaluation Model, Evaluating the Entire InvestmentProject Management Process, and Promoting E?ective Investment
In 2024, in line with the uni?ed requirements of CRRC Group and CRRC Zhuzhou Institute, Times Electric carried out comprehensive auditsacross all levels, regions, and business segments in a timely manner. Through approaches such as external audits by the National AuditO?ce, special audits by superior units, and internal audits by the Company itself, all branches, subsidiaries, and key areas (such as keyoverseas projects and institutions, major investments and PPP projects, and major risk areas) were involved. We adhered to the principleof audit work serving industrial development and business needs.In the comprehensive audit special project, the Company set up 5 audit teams for domestic and overseas audits, with a total of 12 auditors.We conducted on-site comprehensive audits of 17 domestic subsidiaries and online comprehensive audits of 10 overseas companies.Additionally, we cooperated with the CRRC audit team to complete on-site audits of 2 companies. As a result, 63 audit issues wereidenti?ed, and over 70 audit suggestions were put forward. This has assisted each company in standardizing management and provideda basis and reference for the Company's management in decision-making.
The company organizes exchanges and trainings with internal and external units to propagate the concept of auditing and risk control management,cultivate the culture of risk control, and continuously improve the ability and level of auditing and risk control management, so as to truly play theimportant role of auditing and risk control on the development of the enterprise.
In 2024, the Company continued to normalize the conversion of external training on audit, risk, and internal control knowledge intointernal training. In September, we organized risk control knowledge training, sharing content on multiple topics, including asset evalua-tion methods and cases, the entire project cost management and audit practice, internal audit and risk management, and non-performingasset audit. This aimed to enhance the professional capabilities of part-time and full-time audit and risk control personnel.
Case: Normalizing the Conversion of External Training on Audit, Risk, and InternalControl Knowledge into Internal Training
Case: Exploring Digital Remote Auditing, Innovating New Audit Technologies,and Enhancing Audit E?ciency
Case: Comprehensive Audit Supervision of Domestic and Overseas Companies
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Risk Management
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
The Company strictly adheres to internal risk management-related systems, such as the "Company Risk Assessment Process", "Quarterly RiskEarly-Warning Process", "Comprehensive Risk Management Measures", " Risk Management Measures for Overseas Enterprises", "ManagementMeasures for Major Operational Risk Incidents", "Management Measures for Risk Evaluation of Major Projects", and "Legal Risk ManagementMeasures for Overseas Enterprises". We ensure the timely identi?cation, assessment, monitoring, and response to risks.The Company has optimized and completed a risk control system that covers the entire organization, the entire process, and all employees. The BoardRisk Control Committee provides comprehensive guidance and supervision over the Company's overall risk management. We summarize relevantwork through the annual risk assessment report and the work report of the Risk Control Committee. In accordance with the Company's "Regulationson Major Decisions, Major Cadres, Major Project Arrangements and Large Amounts of Funds", important special risk management projects and theresolution of major risks are promptly reported to the Company's Party Committee and General Manager's O?ce, facilitating the decision-making,review, supervision, and management of major risks and issues.
Governance
Responsible for overall risk managementof the company.
Audit and Risk ControlDepartmentProvides comprehensive guidance andsupervision over the Company's overallrisk management work, and comprehen-sively summarizes the annual riskmanagement work through the annualrisk assessment report and the workreport of the Risk Control Committee.
Board Risk Control Committee
Setting up full-time and part-time riskmanagement personnel is responsible forcarrying out the risk management of thebusiness unit and buttressing theimplementation of the company's riskmanagement requirements.
Subordinate Business Units atAll Levels of the Company
The Company strictly executes the comprehensive risk management tasks of risk identi?cation, assessment, and response in accordance with therequirements of the three-line risk management.Strategy
Risk Management Departments and Responsibilities
Business units are primarily responsible for risk identi?cation and response, and they focus on preliminary risk control.The ?rst line of risk management
Functional departments and risk management departments are mainly responsible for monitoring the risk managementand internal control work of the ?rst line of defense, which is crucial for controlling risks during the process.The second line of risk management
In line with the requirements of the Company's "14th Five-Year Plan" for risk control and the key points of annual risk management, we have promot-ed a series of risk control initiatives. Annual risk assessment, response, monitoring, and evaluation work are carried out in accordance with the"Comprehensive Risk Management Measures". In 2024, we identi?ed relevant risk incidents, such as strategic risks, market risks, ?nancial risks, andoperational risks.
Impact, Risk and Opportunity Management
FrequencyThe Company tracks the control status of majorannual risk events on a quarterly basis, conductsquarterly monitoring on major operational risk, andpromotes the full coverage and e?ective enhance-ment of risk management.
Risk assessment of major investment projects
We carry out risk assessment for major investmentprojects, identify project risks, evaluate risk levels,and propose countermeasures to ensure that therisks of major projects are under control.
Risk assessment of overseas projects
In 2024, we carried out risk investigation andresponse for overseas projects, as well as self-inspec-tion and correction of operating and managementissues, in order to improve the Company's overseasoperation and investment management, enhanceour risk resistance ability, and prevent overseasoperation risks. We also conducted overseas riskaudits for 4 companies, such as Dynex Company, topromote the compliance and management improve-ment of overseas subsidiaries.
Signi?cant risk mitigation
We promote the resolution of signi?cant risks inreceivable items from automotive electric drives,CRRC Times Semiconductor, and other companies.
In terms of risk management, the Company sets indicators and objectives covering multiple domains, including ?nance, market, operation, and legalcompliance. The objective is to optimize the capital structure, stabilize the capital chain, reduce revenue ?uctuations, strengthen the market position,safeguard the corporate reputation, and ensure legal operation, thus facilitating the Company's stable development.Indicators and Objectives
Audit and supervision departments are mainly responsible for post-event auditing, review, and supervision.The third line of risk management
Three-line Risk Management
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Times Electric remains unwavering in its commitment to the corporate core values of "Righteousness and Integrity". The principles of anti-commercialbribery, anti-corruption, and fair competition are seamlessly integrated into every facet of internal management and external collaboration. TheCompany has redoubled its e?orts to deepen the construction of a "multi-dimensional and integrated" large-scale supervision system. Throughregular compliance training and ethical promotion, employees' moral consciousness and professional ethics are enhanced, thus cultivating a positivecorporate culture. Meanwhile, the Company adheres to integrity and works in tandem with partners to maintain a sound market order and propel thehealthy development of the industry. During the reporting period, there were no occurrences of corruption, commercial bribery, or major violationsof laws and regulations related to unfair competition.
Upholding Business Ethics
Institutional DevelopmentThe Company strictly complies with national policies and regulations, such as the "Criminal Law of the People's Republic of China","Anti-Unfair Compe-tition Law of the People's Republic of China", and the State Administration for Industry and Commerce's "Interim Provisions on the Prohibition ofCommercial Bribery", as well as internal regulations like the "Measures for Prohibition of Commercial Bribery Management of Zhuzhou CRRC TimesElectric Co., Ltd", "Measures for Handling Discipline Inspection Letters and Visits and Reports", "Management Measures for Major Decisions, MajorCadres, Major Project Arrangements and Large Amounts of Funds of Zhuzhou CRRC Times Electric Co., Ltd” and “Detailed Rules for Implementationof the Responsibility of Party Conduct and Integrity Construction of Zhuzhou CRRC Times Electric Co., Ltd", to ensure the thorough implementation ofintegrity within the Company and among business partners, and ?rmly put an end to unfair competition. In 2024, the Company optimized the"Management Measures for Employment Integrity" and the "Management Measures for Party Committee Inspection Work", further strengthening theinstitutional guarantee and elevating the integrity level.During the reporting period, the company had no concluded litigation cases involving corrup-tion, bribery, extortion, or fraud.During the reporting period, the Company and its employees were not involved in any litigation cases of corruption, bribery, extortion and fraud.
Times Electric complies with the Company Law and other laws and regulations and the relevant regulations of the China Securities RegulatoryCommission (CSRC), the Shanghai Stock Exchange (SSE) , the Hong Kong Stock Exchangeand other regulatory authorities, Additionally, the Companyadheres to institutional documents such as the "Internal Control Management Measures", the "Post-Evaluation Management Measures for MajorFixed Asset Investment Projects", and the "Internal Control Application Manual". By closely aligning with industry characteristics and the actualbusiness operations, the Company conducts internal control supervision and audits, which not only promotes industry standardization but alsoenhances business value.
Internal Control
The Company has re-engineered its internal control system, which consists of "one system" (the internal control system), "two levels" (corporate andbusiness levels), "four main lines" (corporate element, logistics and information, capital and ?nance, and auxiliary support), and "N internal controlthemes" (35 themes such as production management, procurement management, and sales management).The revision of the Internal Control Application Manual has further forti?ed and re?ned the internal control framework. Moreover, the Company hasoptimized its internal control organization system, with well-de?ned responsibilities and clear-cut divisions of labor at all levels.
Centering around the control objectives of "strengthening internal control, preventing risks, and promoting compliance", the Company enhancesinternal control through means such as publicity, implementation, supervision, and reinforcement. Annual internal control supervision and evalua-tion, along with multi-dimensional self-checks and evaluations of internal control e?ectiveness, are carried out.The Company systematically identi?es key links and their corresponding control points in daily business activities, assesses the risk signi?cance ofeach control point, ensuring that risk management permeates all main business processes. We establish correlations between various responsibleentities and speci?c control activities in key business links, e?ectively implementing control responsibilities. This approach is in full accord with theCompany's operational and management needs, ensuring legal and compliant operations as well as true and fair ?nancial reporting.
Under the guidance of the Board, the Audit Committee, and the Risk Control Committee, the depart-ment undertakes internal control supervision and evaluation, focusing on crucial areas such as ?nancialmonitoring, operational monitoring, compliance monitoring, overseas business monitoring, and riskprevention and control. It ensures the timely recti?cation of internal control de?ciencies, maintaining ane?cient and stable internal control system that e?ectively curbs business risks.
These departments implement diverse control measures in line with the requirements of the internalcontrol system.
Audit and Risk Control DepartmentBusiness Functional Departments
Internal Control System
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Integrity CultureThe Company vigorously nurtures an anti-corruption atmosphere. In 2024, anti-corruption, anti-commercial bribery, and employee ethics trainingprograms were provided to the board of directors and all employees (including part-time employees and contractors), achieving 100% coverage ofbusiness ethics training.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
The Company organized annual workingconferences on party conduct, integrity, andanti-corruption. Collective integrity talks wereheld with all managers, and 557 middle-leveland above personnel were organized to signthe "Responsibility Letter for Dual Responsibili-ties of One Position". A total of 101 integritytalks at di?erent levels were organized,covering 1,978 managers and key-positionpersonnel.
Implementing the"Two Responsibilities"
All managers participated in six conferences forcadres' integrity education. Party organizationsat all levels achieved full coverage of partymembers, cadres, and key-position personnelby conveying the spirit of superior conferences,analyzing typical cases, and watching relevantdocumentaries. More than 120 newly appoint-ed leaders and key-position personnel wereorganized to visit the integrity education baseof the Hunan Provincial Party School.
Practicing the NormalizedMechanism of Cadres' Integrity Education
46 participants were organized to attendspecial training for the large-scale supervisiontalent pool. One patrol cadre was recommend-ed to participate in the inspection and annualparty building inspection of CRRC, onediscipline inspection cadre was selected toparticipate in the veri?cation of clue issues atthe Fourth Regional Review Center of CRRC,and members of the talent pool wererecommended to participate in six inspectiontours at the Zhuzhou Institute. Through"training through practice", the performancecapacity of discipline inspection cadres wasfurther improved.
Strengthening the DisciplineInspection and Patrol Team
Oversight and ManagementTimes Electric has established an internal anti-corruption management system to strengthen risk prevention and control in integrity work. Annualaudits are conducted on compliance with laws and regulations related to business ethics, ensuring that all businesses of the Company are auditedonce every three years.
Two joint supervision work meetings were organized to enhance the functional supervision role of each depart-ment. The selection and initiation of annual major supervision projects were closely monitored, and 15 keysupervision projects were organized and advanced. These projects covered fund control, procurement agency,disposal of waste and scrap materials, ?nancial management and fund control, cybersecurity, sporadicinfrastructure maintenance, o?cial vehicle use, etc. Throughout the year, six major supervision work reportswere issued to promote project implementation, and 15 various supervision work inspections and exchangeswere carried out, further expanding the operational e?ectiveness of the large-scale supervision system.
Deepening the "Multi-dimensional and Integrated" Large-scale Supervision System
Based on the "Innovation and Entrepreneurship Project" of the integrity risk prevention and control system withthe theme of "Precise Detection and Strengthening the Integrity Network", a standardized evaluation tool wasupdated according to the "Eight-Power Model" and "Risk Level Assessment Model". New evaluation tools for"Business Hospitality" and "O?cial Vehicle Use" were developed to enrich the evaluation toolkit. Two rounds ofintegrity risk prevention and control evaluations were carried out, focusing on key business areas such asmarketing, procurement, "major decisions, major cadres, major project arrangements and large amounts offunds", talent selection and appointment, business hospitality, o?cial vehicle use, and disposal of waste andscrap materials.
Solid Advancement of Integrity Risk Prevention and Control
Two rounds of regular inspection tours were independently carried out throughout the year, covering four units,namely the Manufacturing Center, Centralized Procurement Center, Railway Transportation Technology Center,and Data and Intelligent Technology Center. For the ?rst time, "inspection tours via QR code" were explored andpracticed, enabling an online evaluation questionnaire survey of all sta? in the inspected units. The daily supervi-sion of inspection tour recti?cation was strengthened through attending the party organization meetings of theinspected units, supervising democratic life meetings, and conducting comprehensive inspections. As of the endof December 2024, the party organizations inspected in 2023 had formulated 236 recti?cation measures for theissues feedback from the inspection tours. Among them, 232 recti?cation measures were completed, with arecti?cation completion rate of 98.3%, and 31 systems were improved.
High - Quality Promotion of "Full - Coverage" Inspection Tours
Annual integrity ?le declarations and veri?cation were organized for employees engaged in business activities. Atotal of 6,646 cases of party members, cadres, and key-position personnel and their relatives were screened.Focusing on key nodes such as New Year's Day and Spring Festival, May Day and Dragon Boat Festival, Mid-Au-tumn Festival and National Day, educational reminders and supervision were strengthened through notices,special meetings, overt and covert investigations. Discipline and work style requirements were reiterated toguide party members and cadres to celebrate festivals with integrity.
Focus on the "Critical Minority" and Important Nodes
In 2024, the Company organized the "Discipline Inspection Cadres Talk About Discipline" activity,conducting 14 special lectures covering 1,693 party members, cadres, and key-position personnel. Thesecretary of the Company's Discipline Commission took the lead in going deep into the grassroots tomake integrity and discipline lectures to newly hired employees and key business units such as central-ized procurement, railway transportation technology, and semiconductors. By analyzing typical cases fortargeted education, the ideological barrier of "being reluctant to corrupt" among party members, cadres,and key-position personnel was further strengthened.
Lectures on FamilyValues and Integrity
In 2024, the Company launched the third series of Integrity Culture Week activities with the theme "Integrity Electric, We Are Together". Anintegrity rap song "Integrity and Regulations" was created and promoted based on the "Two Regulations and One Opinion". A series ofactivities such as a debate competition on the theme of "Whether Strict Management or Profound Care Can Better Motivate Cadres to TakeResponsibility" were organized, enhancing employees' integrity awareness and creating a rich atmosphere of "respecting and advocatingintegrity" within the Company.
Integrity Situational Drama
Debate Competition on the Theme of Integrity
Case: Innovating Integrity Education Programs and Launching the Themed Event"Integrity Electric, We Are Together"
Case: High-Quality Implementation of the "Discipline Inspection Cadres Talk AboutDiscipline" Activity
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Integrity Management of SuppliersTimes Electric employs a variety of measures to ensure the behavioral norms in business cooperation with commercial partners. This includes signingthe "Supplier Code of Conduct " and formulating and publicly disclosing the "Measures for Prohibition of Commercial Bribery Management of ZhuzhouCRRC Times Electric Co., Ltd" applicable to all suppliers, ensuring that both parties strictly adhere to integrity requirements during cooperation.By establishing an integrity cooperation evaluation mechanism, the Company regularly reviews and evaluates suppliers' cooperation behavior.According to the "Supplier Adverse Behavior and Blacklisting Management Measures", suppliers who violate integrity regulations will trigger theblacklist management mechanism, and the Company will take strict measures. Meanwhile, the Company requires employees working with suppliersto strictly abide by laws, regulations, and internal rules, with zero tolerance for corruption, ensuring the transparency and fairness of external cooperation.The Company actively promotes its integrity requirements in daily communication with suppliers and conducts integrity and self-discipline trainingduring the on-boarding stage of new suppliers, aiming to build an honest and integrity-based cooperation atmosphere with suppliers.
Whistleblower ProtectionThe handling of discipline discipline inspection letters, visits, and reports composes a crucial part of disciplinary review and a vital foundation forful?lling the responsibilities of supervision, discipline enforcement, and accountability. The Company strictly adheres to the "Measures for HandlingDiscipline Inspection Letters and Visits and Reports" and the "Measures for Compliance Reporting and Investigation Management". A comprehensivewhistleblowing handling mechanism has been established, accepting reported cases through various channels, such as on-site visits, letters, phonecalls, online platforms, text messages, WeChat, and referrals from superiors.
Guided by the principles of fairness, transparency, and e?ciency, the Company has established a well-connected closed-loop management systemfor whistleblowing handling, including registration and archiving, drafting and approval, handling, and ?ling procedures. This system enables thetimely identi?cation, correction, and prevention of related business ethics risks. Those involved are dealt with in accordance with laws andregulations, fostering a corporate atmosphere of integrity and probity.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Anti-Unfair CompetitionThe Company recognizes the harms and consequences of unfair competition practices and has taken a series of robust measures in this regard. It iscommitted to maintaining a fair and orderly market environment and safeguarding the legitimate rights and interests of itself and other operators.Continuous e?orts are made to enhance employees' compliance awareness and legal literacy. An internal whistleblowing mechanism is establishedto encourage employees to actively monitor and report unfair competition practices. Once issues are identi?ed, internal investigations andcorrections are promptly carried out, and strict penalties are imposed on violations to form an e?ective internal restraint mechanism.
Times Electric has established an integrated and coordinated information disclosure system, along with a governance structure comprising the "ThreeMeetings" (General Meeting of Shareholders, Board of Directors, and Board of Supervisors) and investor relations management, ensuring proactiveand well-prepared responses. The Company strictly complies with laws and regulations, such as the "Company Law of the People's Republic ofChina"," Securities Law of the People's Republic of China", "Rules Governing the Listing of Stocks on the Science and Technology Innovation Board ofShanghai Stock Exchange", and "Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited". We have formulated the"Management Measures for Information Disclosure" and ful?lls information disclosure obligations in accordance with laws and regulations, ensuringthat the disclosed information is true, accurate, complete, timely, and fair. This ensures equal access to information for all shareholders andsafeguards the interests of all shareholders, especially small and medium-sized shareholders.
Protection of Investors' Rights and Interests
Investor Communication
In 2024, the Company continued to strengthen investor relations management by building an e?cient and transparent communication platform withinvestors. Adhering to the principles of "comprehensive, proactive, collaborative, precise, and e?ective", we actively engaged in e?ective communica-tion with investors. Through channels such as public announcements, investor exchange meetings, on-site investor visits, SSE e-Interaction, telephonecalls, and emails, the Company promptly, openly, and transparently communicated company information to all market participants. Additionally, theCompany's meetings of shareholders utilize the Shanghai Stock Exchange's online voting system, e?ectively expanding investor participation.
In 2024, the Company organized a total of 10 investor activities, including performance presentation sessions, roadshows, reverseroadshows, and collective investor reception days for annual, semi-annual, and quarterly reports. These activities were carried out throughvarious platforms, such as on-site events, telephone conferences, online platforms, Panoramic Network, and the SSE Roadshow Center,enabling comprehensive and multi-angle communication with di?erent types of investors.
2023 Annual Performance Press Conference (Hong Kong)
weiguijubao@csrzic.comViolationReporting
412001Postal Code
The Securities and Legal Department of Zhuzhou CRRC Times Electric Co., Ltd., No. 169 Shidai Road, Shifeng District,Zhuzhou City, Hunan Province
The Company takes multiple measures to keepthe identity of whistleblowers con?dential,including but not limited to not providingwhistleblowing materials to the accused, refrain-ing from conducting handwriting comparisonsor forensic document examinations.
Disciplinary actions will be seriously takenagainst sta? involved in handling letters, visits,or whistleblowing who violate work disciplineand con?dentiality rules, depending on theseverity of the violation and in accordance withrelevant regulations.
MailingAddress forCorrespon-dence
Case: Investor Activities to Build a Good Communication Bridge betweenthe Company and the Capital Market
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key Performance Indicators
Honors and Performance
Information DisclosureThe Company systematically conducts information disclosure work, establishing a smooth internal information reporting system, a comprehensiveregulatory mechanism, and a top-down coordinated disclosure process. From the board of directors to each subsidiary, an information disclosurecontact network has been established, integrating ?rst-level leaders and business backbones from various departments (units) and subsidiaries.Through internal promotion and training, the awareness of information disclosure obligations and insider information con?dentiality among relevantcontacts has been strengthened.The Company timely discloses annual reports, ESG reports, and other relevant documents and creates visual interpretations, such as "Understandingwith One Image" for annual reports, semi-annual reports, and quarterly reports, through various means, including WeChat o?cial accounts, makingit easier for investors to understand the Company's operating conditions. In addition, announcements are issued to showcase the Company'shighlights in corporate governance, scienti?c research progress, business expansion, social responsibility, and investor relations maintenance to thecapital market.
Times Electric issued
185 announcements and disclosure
documents on the Shanghai Stock Exchange
Issued197 traditional Chinese announcements
and 98English announcements on the Hong Kong Stock Exchange
Equal Treatment of Small and Medium-sized Investors
The Company upholds the principle of better safeguarding shareholders' rights and interests and creating greater value for them. We haveestablished a fair and transparent pro?t distribution and/or cash dividend system to ensure that all shareholders, including small and medium-sizedshareholders, receive reasonable investment returns. Since our listing on the Hong Kong Stock Exchange in 2006, we have maintained a stabledividend policy, with the total annual dividend accounting for more than 20% of the net pro?t attributable to shareholders of the year and thedividend per share increasing year by year. After the Company's listing on the SSE STAR Market in 2021, the dividend payout ratio increased to over30%. From 2006 to 2023, the Company's cumulative dividends amounted to approximately RMB 8.3 billion, accounting for 73.55% of the total fundsraised in both markets.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Company thoroughly implements the spirit of the plenarysessions of the Party and the national work conference on Party building in state-owned enterprises. We transform the political advantages ofstate-owned enterprises into advantages for scienti?c development and organizational resources into resources for scienti?c development, providingstrong ideological, political, and organizational support for the Company's reform and development.Aiming for high-quality Party building, the Company fully aligns with the "One Body, Three Transformations" project of the Zhuzhou Institute PartyCommittee and actively explores the "Flying Flag" Party building brand. By focusing on enhancing "political leadership, ideological guidance, organiza-tional execution, disciplinary safeguards, cadre e?ectiveness, and employee cohesion", the Company integrates Party building into operations,achieving the goal of "leading the Company's high-quality development with high-quality Party building." The Company's Party organizations arewell-established, with 100% coverage.
Party Building Leading Development
Times Electric's information disclosure
was ratedA forthe second consecutive year in the 2023-2024 Information
Disclosure Evaluation of Listed Companieson the Shanghai Stock Exchange.
The Company always leverages theapplication of the Party’s innovative theoriesto enlighten its workforce, steer practicalendeavors, and advance operations. Weprioritize the “First Agenda” for prompt study,the “First Topic” for in-depth discussion withinthe Party committee’s study group, andsubsequent learning by grassroots Party branches.By utilizing diverse formats like reading seminars,specialized Party lectures, themed Party days,Party lecture contests and showcases, andthemed study tours, we help our employeesworking at grassroots, front-line operations,and project sites to know more about thespirit of the 20th National Congress of theCommunist Party of China.
Strengthening the Application of the
Party’s Innovative Theories
Times Electric consistently drives thesystematic and profound integration of Partybuilding initiatives with production andoperational activities in all aspects. Weseamlessly blend the implementation ofParty building requirements for SOEs withadherence to the corporate governanceregulations in the Shanghai and Hong Kongcapital markets, and improve our modernenterprise system.
Fostering Deep Integration of PartyBuilding, Production and Operation
Our “Fluttering Flag” high-quality Partybuilding projects center on the three coreinitiatives named “Strengthening theFoundation, Consolidating Our E?orts, andTaking the Lead”, and featuring six keyfunctions - “Energy Recharge, Public OpinionLiaison, Learning Advancement, QualityEnhancement, Individual Member Achieve-ment, and Branch Problem-Solution”.Moreover, we create a Party buildingexperience-sharing platform based on themodel of “Party committee leadership +branch development”.
Promoting High-Quality Party Building
Times Electric’s Party Building Brand - “Fluttering Flag”
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Times Electric, driven by a product-centric approach, actively responds to the national “dualcarbon” strategy. The Company constantly introduces green products and advanced processes,continuously enhances product quality, and drives industry development. Meanwhile, TimesElectric optimizes its customer service mechanisms, providing customers with high-quality andreliable products and services. This commitment has established a brand image of technologicalleadership and exceptional quality.
Technology Innovation Leads:
Lean-PerfectedExcellence in Quality
Key Sustainable Development Issues in This Chapter
Product Quality & SafetyR&D InnovationInformation Security & Privacy ProtectionClean Technology OpportunitiesIntellectual Property ProtectionQuality ServicesIndustry Collaboration
SDGs Addressed in This Chapte
Times Electric is committed to promoting industry progress through product R&D and technological innovation, and devoting to building a core compet-itiveness with leading technology. Through continuous investment in R&D resources, the Company maintains a cutting-edge position in key technologi-cal ?elds, while emphasizing on the intellectual property layout and protection, and solidi?ed Times Electric’s technological advantage. The Companyactively fosters industry collaboration to nurture a healthy industry ecosystem, further consolidating its leading market position.
Times Electric has established a comprehensive, hierarchical R&D management system. This includes regulations such as the “Scienti?c ResearchProject Management Measures,” “Scienti?c Research Project Grading Management Measures,” “Major Scienti?c Research Project Assessment andReward Measures,” and “Scienti?c Research Material Management Measures.” These regulations standardize the entire process of scienti?c researchprojects, from project establishment to implementation and acceptance. Through the establishment of a classi?cation management mechanism,improvement of incentive policies, and standardization of R&D material support, the Company improves the standardization and e?ciency of scienti?cresearch work. The Technology Committee oversees the overall R&D plan, while platform departments focus on core technology and product R&D.Application departments conduct secondary development based on this foundation to provide customized product solutions. Through collaborativeinnovation in scienti?c research projects, with project managers overseeing the entire process, departments ensure e?cient progress in R&D.
Product R&DGovernance
Technical Committee
Supervision & guidanceReview & decision-making
TechnologyManagementDepartment
Policy development
QualityManagementDepartment
Quality management
PlatformDepartment
Core technologyProduct R&D
ApplicationDepartment
Secondary developmentSolution design
Project ManagerFull-process control to ensure R&D advancement
Product R&D Management Structure
In scienti?c research project management, Times Electric classi?es projects into ?ve categories based on their R&D objectives and strategic positioning:
product development, platform R&D, forward-looking technology research, specialized technology research, and comprehensive technology research.By aligning projects with their unique characteristics and goals, Times Electric ensures that each project receives appropriate attention and resources.In terms of project tiered management, Times Electric further divides scienti?c research projects into six levels based on core criteria such as economicvalue, technological value, project scale, and importance to the Company’s development strategy. This allows for a more precise assessment of projectpriorities, ensuring that resources are allocated to high-value, high-potential key projects, thereby improving R&D e?ciency and resource utilization.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
GovernanceStrategy
To e?ectively manage potential risks and impacts during the R&D innovation, Times Electric has established a systematic management mechanismthroughout the lifecycle of major scienti?c research projects to ensure smooth project progression. During the project planning stage, the technologymanagement department organizes the project team to plan the project’s collaboration mode, communication mechanism, risk identi?cation, andresponse strategies, incorporating these elements into the project plan. Upon entering the implementation and monitoring stage, the technologymanagement department tracks project progress based on the plan, controls risks at a predetermined frequency, promptly reports issues to theCompany’s technology management department, and obtains decision support. Through scienti?c evaluation and dynamic control, the Companye?ectively reduces project risks and ensures smooth project progression.
StrategyImpact, Risk, and Opportunity Management
In addition, Times Electric actively seizes potential market opportunities, aiming to lead industry development through technological breakthroughs andinnovation. In the context of rapidly changing global economics and technological advancements, the Company adjusts its strategies to respond tomarket demands and industry trends, seeking opportunities in emerging markets and technological ?elds. By focusing on R&D innovation and drivingtechnological breakthroughs in key ?elds, Times Electric achieves technological advancements, strengthens its market-leading position, and lays a solidfoundation for future development.
In 2024, Times Electric received the following awards for product R&D:
Research and Application of ElectricDrive Systems for O?-Road Mining VehiclesChina Machinery Industry Scienceand Technology Award Second Prize
Research and Application of Key Technologies forIntelligent Control Systems of Transportation EquipmentChina Machinery Industry Science andTechnology Award Third Prize
China Railway Society Railway Science
and Technology Award Grand PrizeDevelopment of the “Fuxing” Dual-SourcePower Centralized High-Plateau DMU (Internal Combustion
and Electric Power Separation)
Development and Application of ComprehensiveInspection and Monitoring Equipment for In-Service Rail Defects
China Railway Society Railway Scienceand Technology Award First PrizeIntegrated Operation and Maintenance Engineering VehicleSuitable for Ultra-Long Steep Slopes in High-Speed Railways
China Railway Society Railway Science andTechnology Award Second Prize
Research and Industrialization of Core Technologiesfor Sensors Used in New-Generation Railway Equipment
China Railway Society Railway Science andTechnology Award Second Prize
Research and Application of Key Technologies for
High-Capacity Power Battery Systems in Rail TransitChina Railway Society Railway Scienceand Technology AwardThird Prize
Zero-Distance Wireless Re-coupling System
for HXD1C LocomotivesChina Railway Society Railway Scienceand Technology Award Second Prize
Key Technology and Application of Wireless
Replacement of LKJ Onboard DataChina Railway Society Railway Science and
Technology Award Second PrizeSafety Monitoring and Control System for
Locomotive Shunting OperationsChina Railway Society Railway Scienceand Technology Award Third PrizeComprehensive Testing of Intelligent Key
Technologies for Haoji RailwayChina Railway Society Railway Science and
Technology Award Third Prize
Honors and Awards
Technological Innovation and R&DManagement
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Unit2024Indicator
RMB 100 million%People%
R&D InvestmentR&D Investment as a Percentageof Main Business RevenueNumber of R&D PersonnelProportion of R&D Personnel to Total Employees
28.42
11.41
4,025
40.21
Times Electric’s R&D Investment in Products
Indicators and GoalsIntellectual Property Protection
The Company places emphasis on intellectual property protection, having established and enforced regulations such as the “Intellectual PropertyManagement Measures,” which involves R&D, procurement, production, sales, and major economic and technological activities. In the R&D phase,intellectual property risk assessments are mandatory; during procurement, production, and sales, the focus lies on mitigating infringement risks; andin major economic and technological endeavors, intellectual property reviews are conducted.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
In 2024, the Company organized two intellectual property protection training sessionstailored for senior leaders, experts, department managers and technical managers. Thetraining emphasized risk identi?cation and prevention, analyzing infringement preventionmeasures through real-world cases to enhance employees’ capabilities of intellectual proper-ty management. It reinforced the concept of “prioritizing, respecting, owning, and leveragingintellectual property,” bolstering all employees’ awareness and contributing to the e?ectivesafeguarding and utilization of corporate innovations.
Training Programs onIntellectual Property Protection
the Company ?led a total of
504 patent applications
with
278 granted
Cumulative number of active patentsas of the end of 20243,762 valid patents
The company ?led
416 invention patent applications
with
206 granted
Cumulative number of active patentsfor inventions as of the end of 2024
2,366 valid invention patents
Intellectual Property ProtectionPromoting Industry Development
Times Electric remains steadfast in driving industry progress and has achieved remarkable standardization e?orts. In 2024, the Company hosted andparticipated in and participated inin four industry association exchanges, leveraging its technical prowess to lead the formulation of 3 internationalstandards, 22 national standards and 3 industry standards across rail transit, exemplifying its technological strength and industry in?uence. Thesestandards not only address industry gaps but also promotes the standardization of the industry and provide important support for high-qualitydevelopment, re?ecting Times Electric’s responsibility and commitment as an industry pioneer.
International Standards（IEC）International Standards（ISO/IEC）International Standards（ISO/IEC）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）
Standard NameRailway applications-Compatibility Between Rolling Stock and Train Detection SystemsRailway Applications-Batteries for Auxiliary Power Supply Systems-Part 3: Lead Acid BatteriesRailway applications-Protection Principles for AC And DC Electric Traction Power Supply SystemsRail Car-Heavy Rail CarRailway Applications-Suburban Railway and Urban Guided Transport Management and Command/ControlSystems-Part 1: System Principles and Fundamental ConceptsRailway Applications-Suburban Railway and Urban Guided Transport Management and Command/ControlSystems-Part 2: Functional Requirements Speci?cationRailway Applications-Converter Onboard Rolling Stock-Auxiliary Converters for Suburban Railwayand Urban Rail Transit VehiclesVariable-Frequency Drive Above 1kv and not Exceeding 35kv—Part 1: Technical ConditionsVariable-Frequency Drive Above 1kv and not Exceeding 35kv—Part 2: Test MethodsRailway Applications-Suburban Railway and Urban Guided Transport Management and Command/ControlSystems-Part 3: System Requirements Speci?cationsIntercity Maglev Tra?c-Fixed Installations of Medium and Low Speed Maglev-Traction Power Supply SystemRailway Applications-Energy Measurement On Board Trains-Part 1: GeneralRailway Applications-Energy Measurement On Board Trains-Part 2: Energy MeasurementRailway Applications-Energy Measurement On Board Trains-Part 3: Data ProcessingRailway Applications-Energy Measurement On Board Trains-Part 4: CommunicationRailway Applications-Energy Measurement On Board Trains-Part 5: Conformance TestRailway Applications-Energy Measurement On Board Trains-Part 6: Requirements For Purposes Other Than BillingRailway Applications-Current Collection Systems-Technical Criteria for the Interaction Between Pantographand Overhead Contact LineRailway Applications-Rolling Stock-Onboard Lithium-Ion Traction BatteriesRailway Applications-Rules for Installation of Cabling on Rolling Stock
Standard CategoryRemarks
ParticipateParticipateParticipateLeadParticipateLeadLeadParticipateParticipateLeadParticipateLeadLeadLeadParticipateLeadLeadParticipateParticipateParticipate
Key Performance Indicators
During the reporting period
Case: Intellectual Property Protection Training for Middle and Senior Management
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Standard NameRailway Applications-Converter on Board Rolling Stock-ChargerEarth-Moving Machinery-Battery Electric Non-Road Mining Dumpers-Test MethodsIndustrial Rigid Round Laminated Tubes and Rods Based on Thermosetting Resins for Electrical Purposes-Part 3:
Round Laminated Rolled TubesIndustrial Rigid Round Laminated Tubes and Rods Based on Thermosetting Resins for Electrical Purposes-Part 4:
Round Laminated Molded TubesFilm For Electrical Insulation-Part 4: Polythylene Terephthalate Film Used For Electrical InsulationRolling Stock Motors-Traction Motors-Asynchronous Traction MotorsOverhead Catenary Operation Car of Electri?ed Railway-Inspection CarOverhead Catenary Operation Car of Electri?ed Railway-Insulator Water Washing Car
Standard Category
National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）National Standards （GB）Industry Standards（TB）Industry Standards（TB）Industry Standards（TB）
Remarks
LeadParticipateParticipateParticipateParticipateParticipateLeadParticipate
The Company adheres to the green development paradigm, dedicated to promoting green innovation. By developing eco-friendly technologies,optimizing production processes, and fostering green product innovation, it actively aligns with global environmental trends, supports the low-carboneconomy and green transformation, and strives for sustainable development.
Green Innovation and R&D
The company is guided by the core philosophy of "Intelligent, Safe, Green, and Comfortable," and regards the development of clean technology as acentral strategic priority. It is dedicated to the research, development, and production of high-end equipment, driving the green transformation of thetransportation and energy industries. Through technological innovation and resource investment, breakthroughs have been made in e?cient powerconverters, new power devices, energy management, wind power generation, and photovoltaics, contributing to energy-saving and carbon-reductionobjectives. The Company’s operations span green rail transit and renewable energy power generation, with all R&D and patents categorized underclean technology.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
2024Indicators and Goals
2,366RMB 2,842 millionAccounting around 10% of the revenue in 2025clean technology-related patents*Costs of clean technology research and development*Investment targets for clean technology*
*All technological R&D and patents belong to clean technology.
Times Electric's Investment in Clean Technology Research and Development
Green Innovation ConceptGreen Innovation Achievements
Times Electric consistently allocates su?cient resources to the R&D of new products and technologies, focusing on rail transit, renewable energypower generation, and hydrogen energy to propel green innovation and sustainable development.
Successfully installed and implemented the country’s ?rst independently developed SiC device traction system on Shenzhen Metrolines, achieving an energy-saving rate exceeding 10%, o?ering bene?ts like high e?ciency, low noise, and reduced weight.Completed the online pilot operation of the country’s ?rst hydrogen-powered catenary operation vehicle, capable of reducing CO?emissions by more than 75 tons per vehicle annually, mitigating emissions exhausted in tunnels while featuring a straight-armdual-slewing operation device for full coverage of maintenance area.Developed a 1+X modular centralized PV inverter, enhancing system e?ciency, compatibility, and safety, serving as a pivotal toolfor cost reduction and e?ciency gains in ground power stations.Completed the development of o?shore 20MW full-power and 12MW doubly-fed converters, bridging the domestic gap in o?shoreconverters and reaching the leading level.Completed the planning and development of the IGBT hydrogen production power supply platform, applied in 15 market projects,matching 13 electrolyzers (ALK and PEM types), with speci?cations ranging from 200 to 2,000 Nm?/h, supporting the industry’sgrowth of green hydrogen production.
Innovation AchievementsInnovation Areas
Green Innovation AchievementsRail Transit
Rail TransitRenewable EnergyPower Generation
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key Performance Indicators
The signaling system upgrade project for Phase I and the West Extension Phase I of Changsha Metro Line 2 seamlessly transitionedbetween the old and new systems, achieving online operation of the fully autonomous signaling system at one time. This innovativetechnology signi?cantly improved operational e?ciency, achieving energy conservation, emission reduction, and optimal resourceallocation. The intelligent energy management system optimized train energy e?ciency, minimized invalid empty runs, and e?ectivelylowered energy consumption. Furthermore, the upgraded signaling system provided safer, more e?cient, and more comfortable travelexperiences for passengers, contributing to Changsha Metro’s transition towards green and intelligent sustainable development.
Fully-Autonomous Signaling System
Case: Times Electric Contributing to the Fully-Autonomous Signaling System Upgrade ofChangsha Metro Line 2
Times Electric ?rmly believes that quality management underpins a company’s survival and drives continuous innovation, development, and growth.We’ve established a comprehensive quality management system, enhancing product reliability through rigorous quality control, ongoing improve-ment, meticulous management, and systematic processes.
Quality Management
Times Electric, guided by the ethos “Quality-Driven, Customer Satisfaction,” has built a robust quality management system. The system includes 142quality management documents, covering critical processes such as demand management, project management, technology development, externalprovision, production process, and maintenance services, ensuring alignment between documents, processes, standards, and responsible individu-als. This year, through continuous system and process optimization, the Company has improved the management level of products and services,o?ering users superior solutions.
The Company obtained ISO 9000 Quality Management System certi?cation.For product quality and safety, the Company implements a hierarchical management system: the General Manager bears overall leadership responsi-bility, formulates quality and safety strategies, and oversees overall work; the Deputy General Manager in charge is responsible for speci?c leadership,implements strategic deployments, and coordinates resources to address signi?cant issues; the Quality Management Department, as the centralizedmanagement department, is responsible for the overall implementation of superior and company-level quality and safety tasks, and supervises andguides the work of the departmental units and quality management departments of subsidiaries, ensuring e?cient operation of the quality and safetymanagement system.
General Manager
Lead overall quality and safety
management
Deputy General Manager
Advance quality and safetymanagement
Quality Management DepartmentCoordinate and implement quality andsafety tasks assigned by superiordepartments and the CompanyOversee quality management atheadquarters units and subsidiaries
Product Quality Management Structure
GovernanceStrategy
Times Electric has formulated and adhered to the “Management Measures for Product Quality Issues,” continuously upgrading management anddigital construction, improving core product quality, and ensuring the stability of locomotives, CRH trains, urban rail vehicles, and new energyproducts in real-world applications. The Company has a comprehensive quality assurance system covering the entire product realization process.Through strengthening quality technology capabilities, it continues to enhance reliability screening, conducts in-depth research on the durability ofkey electrical materials and electronic boards, and introduces new testing resources to e?ectively intercept early failures of materials or products.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Meanwhile, based on system cybernetics, a trinity manufacturing process quality assurance system consisting of a power system, monitoring system,and control system has been established, enabling coordination, self-adjustment, and automatic closed-loop control among various elements. Inaddition, the Company has established clear “quality gates,” strengthening supplier production volume assessments and reviews of key milestones inthe product development to ensure that quality issues are e?ectively contained and avoided during the development stage, providing a solid guaran-tee for product quality.
Times Electric conducts quality and safety training, enhancing employees’ awareness and skills through systematic, multi-layered training, includingsystematic courses, contests, and competitions. Diversi?ed training, including systematic training, knowledge contests, and case competitions, fullytriggers employees’ enthusiasm and stimulates them to participate. Through continuous quality and safety training, the Company has not onlystrengthened employees’ awareness of safety responsibility but also signi?cantly improved operational standardization and risk response capabilitiesamong all sta?, laying a solid foundation for the Company’s safe production and high-quality development.
In September 2024, the Company organized a series of center-level and department-leveltraining sessions to enhance employees’ quality awareness and their ability to ful?ll qualityassurance responsibilities, ensuring that product quality always meets customer expecta-tions and product quality keeps rising. Those training sessions fostered a culture where allemployees participate in quality management, and thus facilitated the e?cient achievementof quality management goals.
Quality and Safety Training Sessions
To deepen the “Quality-Driven, Customer Satisfaction” philosophy and enhance qualitycompetitiveness, the Maintenance Service Center hosted the ?rst Quality Culture Festival,dedicated to creating an atmosphere where all employees focus on and jointly improvequality, making quality the conscious pursuit of every employee, laying a foundation forhigh-quality development.
Case: Maintenance Service Center’s First “Quality in Mind, Excellence in Hand”Quality Culture Festival
Quality Culture Festival Event Site
Management of Impacts, Risks, and Opportunities
The Company implements a comprehensive quality and safety management approach across product development, supply, and delivery. Duringresearch and development, proactive ?re prevention testing and research on ?re-resistant materials are conducted, and the “Converter ProductAnti-Detachment Design Guide” is compiled to enhance product safety from its inception. In the supply chain, quality and safety risk inspections areconducted on critical outsourced materials, focusing on welding defects, stressed areas, and critical interface dimensions. Suppliers are urged tosimultaneously implement risk interception measures, resulting in quality and safety risk inspections for 49 materials throughout the year. In delivery,potential risks in delivered products are identi?ed and recti?ed to ensure product quality and safety.
Quality Culture DevelopmentProduct Quality Risk Control
By conducting a comprehensive inspection of quick connectors on existing locomotives, leakage issues were promptly detected andrecti?ed by replacing faulty connectors. Additionally, the maintenance plan was optimized to re?ne maintenance requirements for quickconnectors, minimizing the potential impact of maintenance operations on sealing rings and eliminating leakage issues at the source.
Regular inspections are conducted on bubbles in the cover glass and bonding areas of CRH Train 3C. When numerous bubbles indicatinga risk of detachment are detected, the entire cover is replaced. The new cover features an optimized structural process, e?ectively prevent-ing glass detachment caused by bubbles and enhancing equipment safety and reliability.
Case: Comprehensive Inspection of CRH Train 3C Cover Glass Condition
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
The Company has established the “Nonconforming Product Management Process,” clearly outlining the criteria and implementation requirements forproduct recalls. In the event of a recall, the Company isolates and identi?es work-in-progress and inventory products, strictly managing issues accord-ing to the “Detailed Rules for Hierarchical Issue Management.” Immediate investigations into defective products are initiated, and the results arepromptly communicated to using enterprises to ensure transparency and timely response. For certi?ed products found nonconforming during nation-al or provincial supervisory inspections, the Company promptly noti?es the relevant certi?cation body to ensure compliance and accountability.
Product Quality Risk ControlProduct Quality Impact Control Mechanism
Product Quality Impact Control MechanismIndicators and Objectives
The Company has been dedicated to improving quality and safety management, re?ning the product quality control system, and assessing the qualitymanagement level of the headquarters and industries. In 2024, the Company conducted 16 quality and safety-related training sessions, involving1,775 employees and totaling 187.5 hours of training. Notably, there were no Category C accidents or red-line incidents, nor product recall events dueto nonconformity.
Case: Quality Education “Hundreds of Forums” Training Sessions
Case: HX Locomotive Quick Connector Leakage Inspection
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key Performance Indicators
Times Electric regards the protection of customer rights and interests as one of its core responsibilities. By re?ning its customer service system,optimizing service processes, and enhancing service quality, the Company is committed to providing comprehensive safety assurances and exception-al service experiences to its customers.
Customer Rights and Interests Protection
Times Electric embraces a customer service philosophy centered on “Personalized Service, Fast and E?cient”. The Company strives to deliver profes-sional and precise support through an e?cient service response mechanism and process optimization. This ensures prompt understanding ofcustomer needs and swift provision of solutions. Additionally, ongoing customer satisfaction surveys and enhanced service team capabilities enablethe Company to meet customer expectations e?ciently and conveniently, ensuring a consistently improved customer experience.
Customer Service PhilosophyProduct Complaint Management System
To enhance service e?ciency and quality, Times Electric has established the“Customer Complaint Management Process”, clarifying de?nitions and gradingstandards for customer complaints and standardizing the handling procedure.From complaint reception, veri?cation and con?rmation, response handling,customer communication and appeals, internal responsibility determination, toclosed-loop con?rmation, the Company has de?ned responsibilities andtimelines to improve timeliness and e?ectiveness.Additionally, the Company has focused on developing a customer complaintmanagement platform for both desktop and mobile devices, enabling real-timeregistration, full-process management, and retention of customer communica-tion records. This platform monitors the timely handling rate of complaints,further enhancing complaint handling e?ciency and ensuring rapid responseand proper resolution of customer concerns.
Product Complaint Management SystemCustomer Satisfaction Survey
To better understand customer needs and optimize customer service system, Times Electric expanded the scope and depth of its customer satisfac-tion survey this year. The survey was upgraded across three dimensions: participants, areas, and methods, to gather more authentic feedback.Speci?cally, the scope of participants was broadened from senior leaders to frontline employees, with the number of participants increasing to 709,an increase of 374 compared to the previous year. Survey areas were broadened to include marketing, design, service, and quality, ensuring acomprehensive understanding of customer needs. In terms of survey methods, QR codes were used for distribution by liaisons, improving surveyconvenience and response rates.These optimizations led to an external customer satisfaction score (railway transportation products and new energy products) of 93.3 points, exceed-ing the target of 87 points by 6.3 points. A total of 50 customer suggestions were collected. The Company actively promoted issue recti?cation throughtask decomposition and clear accountability, achieving closed-loop management. Suggestions with longer implementation cycles were incorporatedinto key follow-up work plans for continuous tracking and control, ensuring e?ective implementation of customer feedback and continuous improve-ment of customer satisfaction.
Times Electric prioritizes information security and privacy protection, strictly adhering to national laws and regulations such as the “Cybersecurity Lawof the People’s Republic of China”, “Data Security Law of the People’s Republic of China”, and “Personal Information Protection Law of the People’sRepublic of China”. The Company has implemented internal policies, including the “Information Security Management Measures”, “Full LifecycleSecurity Management for Information Systems", and “Data Security Classi?cation and Grading Management”, to establish a robust informationsecurity management system. This ensures data con?dentiality, availability, and integrity while preventing unauthorized disclosure or tampering. Adedicated information security organization has been established, supported by security monitoring tools such as a cybersecurity supervisionplatform.The Company also conducted targeted training sessions, including specialized cybersecurity protection training for cybersecurity professionals,cybersecurity awareness programs for new employees, network and data security training for the operations management department, and practicaltraining on cybersecurity skills for IT sta?. These e?orts aim to enhance employee awareness and capabilities in information security, ensuring theCompany can e?ectively address various cybersecurity challenges during its digital transformation.
Data Security and Customer PrivacyManagement
Times Electric conducted3 information security and privacy training sessions
100% coverage of information security training forsubordinate divisions, branches and subsidiariesDuring the reporting period, there were no veri?ed complaints regarding customer privacy violations.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Key Performance Indicators
All complaints were addressed andresolved through customer communication,achieving a
100% resolution rate
Times Electric received 3 formal customercomplaints related to product or servicequality.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Times Electric places a high priority on supply chain management, striving to drive sustainabledevelopment throughout its supply chain. The Company is dedicated to enhancing the qualityand safety management of its supply chain, adhering strictly to the principles of transparentprocurement, and integrating ESG (Environmental, Social, and Governance) principles into itssupply chain management system. By empowering suppliers, Times Electric aims to build a moreresilient and collaborative industrial ecosystem.
Responsible Procurement:
Building a SustainableSupply Chain
Key Sustainable Development Issues in This Chapter
Supply Chain Management
SDGs Addressed in This Chapter
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Times Electric is committed to creating a transparent, e?cient, and sustainable supply chain system to support the Company's diversi?ed develop-ment and long-term strategic goals. The Company improves its full lifecycle supply chain management, strengthens quality and safety oversight,promotes transparent procurement practices, and fosters capacity-building and value-sharing among suppliers through e?ective communication andcollaboration.
Supply Chain Management
Starting from the Company's operational needs, Times Electric continuously deepens supplier management by formulating and re?ning a series ofinternal supplier management policies, including the “Supplier Entry Management Process”, “Supplier Performance Evaluation Management Process”,“Annual Supplier Review Management Process”, “Supplier Classi?cation Management Process”, and “Supplier Exit Process”.Times Electric has established a hybrid centralized procurement management structure to tap into the strategic value of procurement. The Procure-ment Committee is responsible for approving procurement strategies, reviewing centralized procurement catalogs, resolving cross-departmentaldisputes, and overseeing the Centralized Procurement Center. The Centralized Procurement Center shoulders the responsibility for formulating thecentralized procurement catalog, building the category tree, establishing management systems and processes, cultivating talents, and supervisingand managing the procurement operations of subsidiaries and branches.The procurement department of the business unit adopts a dual reporting system: reporting to the Centralized Procurement Center in a dotted-linemanner, and the leaders of the Centralized Procurement Center have the right to make suggestions on the appointment, removal, and assessmentof the heads of the lower-level procurement departments. Reporting to the leaders of the business unit in a solid-line manner, and the leaders of thebusiness unit have the ?nal decision-making power on the appointment, removal, and assessment of the heads of the procurement department.
GovernanceSupply Chain Management Structure
Supply Chain Management Structure
Guided by CRRC's “5S1G” procurement and supply chain planning framework, Times Electric has developed its own procurement and supply chainstrategy aligned with its strategic development goals and actual management needs. The Company has established a comprehensive set of processesand systems, with 51 L4 processes solidi?ed through digitalization to ensure seamless alignment between processes and business execution.Additionally, a three-lines supervision system has been put in place to ensure the legality and compliance of procurement activities. Process andsystem owners regularly review, optimize, and iterate the procurement and supply chain management system to drive sustainable improvement.
Supply Chain Management StructureSupply Chain Management Principles
First line: Business units'
self-inspection
Second line: Functionaldepartments' supervision
Third line: Key process
and system review
"Three Lines of Defense” in the Procurement and Supply Chain Supervision System
Supply Chain Management PrinciplesStrategy
The vision of the sustainable supply chain of Times Electric is to focus on customer needs, establish a supply resource platform and a capabilitysharing platform that support the realization of the company's diversi?ed business strategy, and continuously obtain comprehensive competitiveadvantages in procurement. Times Electric is dedicated to building an e?cient, ?exible, and resilient supply chain system. Through full lifecyclesupplier management, transparent procurement practices, and supplier empowerment, the Company aims to achieve mutual bene?t and win-winoutcomes with its suppliers, thereby promoting the sustainable development of the supply chain and laying a solid foundation for its steady progress.By establishing a uni?ed supplier resource management platform, Times Electric achieves lifecycle management of suppliers. This includes develop-ment and certi?cation, classi?cation and relationship management, quality control, price and cost management, delivery management, performancemanagement, and exit management. The Company focuses on core strategic suppliers, establishing a cohesive management system to deepenlong-term cooperation. A uni?ed “Supplier Code of Conduct” has been formulated to build a unique supply chain culture that fosters collaboration andmutual bene?t.
StrategyFull Lifecycle Supplier Management
Supplier OnboardingTimes Electric New SupplierDevelopmet Process
Supplier Audit & Evaluation
Times Electric AgentManagement Measures
Times Electric SupplierClassi?ed ManagementProcess
Supplier Capability
Improvement Management
Process
Supplier InspectionManagement Process
Times Electric CentralizedProcurement Center SupplierRelationship ManagementProcessSupplier PerformanceEvaluation ManagementProcess
Supplier ManufacturingQuality SupervisionManagement Procoss
Packaging Supplier
Management Measures
Transportation SupplierManagement Measures
Times Electric ProcurementChannel ManagementMeasuresSupplier Supervision & Elimination
Supplier ClaimsManagement Process
Supplier Exit Process
Times Eectric SupplierMisconduct and BlacklistManagement MeasuresSupplier HandoverManagement Process
Non-Production SupplierExit Management ProcessSupplier Management Process
Procurement Management Committee
Approveprocurementstrategies
Centralized Procurement Center
Develop the centralizedprocurement catalogand establish thecategory tree
Cultivateprocurementprofessionals
Manageprocurementpolicies andprocedures
Supervise theprocurementdepartments ofbusiness units
Times Electric
Business Units
Procurement Departments ofBusiness Units
Solid line reportingDotted line reporting
Review and approvethe centralizedprocurement catalog
Times Electric SubcontractingTechnical Documentation TransferManagement Measures
Times Electric Supplier Basiclnformation, Quali?cation, andSupply Scope Management Process
Times Eectric Non-ProductionProcurement New SupplierOnboarding ProcessOversee theCentralizedProcurement CenterResolvecross-departmentaldisputes
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Supplier assessment and certi?cation are crucial for building a high-quality supply chain. During the supplier entry phase, Times Electric conductson-site assessments based on the “New Supplier Development Process”. These assessments cover basic quali?cations, delivery times, servicemanagement, cost management, procurement practices, packaging and transportation, environmental, health, and safety (EHS) management, andcorporate social responsibility. “Business Certi?cation Reports”, “Technical Certi?cation Reports”, and “Quality Certi?cation Reports” are generatedaccordingly. For newly admitted suppliers, due diligence is conducted, requiring them to complete quali?cation questionnaires and sign six majorentry agreements. External systems (e.g., Tianyancha) are used for risk identi?cation. If any disqualifying risks are identi?ed, the exit process isimmediately initiated.The Company assesses and grades suppliers' EHS management capabilities. Suppliers that fail the comprehensive assessment cannot be included inthe supplier directory. During the bidding phase, the Company clearly speci?es “environmental protection requirements” in the technical speci?ca-tions and requires suppliers to respond. During the business certi?cation phase of the “New Supplier Entry Process”, the Company audits suppliers'EHS systems. According to the process, all newly admitted manufacturers must complete on-site certi?cation (EHS certi?cation), while existingsuppliers will receive regular on-site certi?cations (EHS certi?cations) to ensure they meet its environmental and safety standards.
Times Electric regularly conducts product audits, production process audits, and management system audits of existing suppliers to ensure compli-ance with the Company’s quality and management requirements. An annual dynamic supplier relationship management mechanism is implemented,classifying suppliers into strategic, leveraged, general, and bottleneck categories based on multiple dimensions. Di?erentiated control measures areapplied to optimize supplier resource management. The SRM system is used for online performance evaluations, assessing suppliers' quality, delivery,service, cost, and integrity on an annual, semi-annual, and quarterly basis, with results published online. In terms of integrity and compliance, anyviolations identi?ed during evaluations result in immediate termination of cooperation through a one-vote veto. Based on performance evaluations,di?erentiated control strategies and incentive plans are formulated: expanding business shares and prioritizing new business for excellent suppliers;enhancing communication to promote improvement for good suppliers; implementing a cultivation and assistance plan for suppliers meetingstandards, while gradually reducing shares or eliminating those that fail to improve over two consecutive years; extending payment cycles forlower-performing suppliers and shortening them for higher-performing ones. These measures ensure positive and negative incentives.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Supplier EntrySupplier Audit and Evaluation
For new suppliers, Times Electric has developed the “CRRC Times Electric Supplier Misconduct and Blacklist Management Measures” . Suppliers on theCRRC blacklist that are included in CRRC Times Electric's supplier resource pool are immediately removed, and a blacklist database is established tocontrol new suppliers through the system, ensuring standardized management and e?ective risk prevention.For existing suppliers, the Company has formulated and published the “Supplier Misconduct and Blacklist Management Measures” and “SupplierQuality Performance and Claims Management Measures”. These clarify the criteria and processes for blacklisting suppliers due to signi?cant econom-ic losses, quality accidents, illegal operations, bribery, and other misconduct, ensuring suppliers' honest performance. Red and yellow card warningsand corresponding control measures are applied for procurement product quality issues, such as quality claims, supply suspensions, and orderreductions, e?ectively preventing procurement risks and maintaining a fair and competitive market environment. These systems jointly ensure supplychain compliance and product quality, enhancing its overall supply chain management level.
Supplier Audit and EvaluationSupplier Supervision and Elimination
Times Electric has developed a special work plan focusing on “deterrence, prevention, and self-discipline” to strengthen supplier integrity manage-ment. During the supplier entry phase, all suppliers are required to sign the “Supplier Code of Conduct”, explicitly prohibiting any form of corruptionor bribery and stipulating that suppliers must not provide improper bene?ts to employees. Additionally, the Company has compiled a “SunshineProcurement, Integrity Protection” lea?et to promote anti-corruption practices among suppliers during daily interactions, urging them to adhere toself-discipline requirements, build a strong ideological defense against corruption, and ensure the integrity and compliance of the supply chain.
Supplier Supervision and EliminationSunshine Procurement
Times Electric has established a normalized communication and feedback mechanism with suppliers and regularly conducts quality and technicalexchange activities to review and improve related issues. In 2024, the Company organized three large-scale online management training sessions forsuppliers, covering topics such as supplier integrity, quali?cation management, order delivery, invoice management, quality management require-ments, SCM ?re prevention attributes, self-discipline requirements, and SRM system and CRRC Purchase 2.0 business process operation guides.These e?orts aim to help suppliers better meet the Company's needs and improve cooperation e?ciency. Additionally, Times Electric collaborateswith suppliers to enhance their capabilities through joint training for key personnel, disposal of obsolete materials, and improvement of maintenancee?ciency, achieving quality and e?ciency improvements.
Sunshine ProcurementSupply Chain Empowerment
On May 9, 2024, Times Electric held the 2024 Annual Partner Conference under the theme “Opennessand Integration, Quality Wins the Future.” The conference invited over 240 partners from home andabroad to share insights around the concept of “co-creation, sharing, and win-win outcomes.” Byrecognizing and honoring outstanding suppliers, the Company incentivized them to improve servicelevels and product quality, jointly building a sustainable, cost-e?ective, and high-reliability brand supplychain. This event further deepened cooperation between the supply and demand sides.
The 2024 Partners Conference ofTimes Electric
Supply Chain EmpowermentManagement of Impacts, Risks, and Opportunities
Times Electric places great emphasis on supply chain risk management and has systematically established three key systems for supply chain riskidenti?cation, quality management, and safety management. These systems comprehensively prevent potential risks, ensuring the stability andsustainability of the Company's operations.To systematically identify and manage supply chain risks, Times Electric's Centralized Procurement Center has established a “Risk ResponsibilityMatrix.” This matrix clari?es the hierarchy of responsibility, assigning risk management duties from leaders to department heads and supervisors atvarious levels, ensuring comprehensive and e?ective risk control. In 2024, the Company conducted the review, revision, and release of the central riskinformation database, integrity risk, and risk responsibility matrix. This initiative covered 12 departments, 17 key positions, 47 risk points, and 32 riskevents, establishing a comprehensive risk identi?cation and management system.To ensure the e?ciency of risk control measures, Times Electric formulated a risk management plan and conducted quarterly follow-ups. Throughregular assessments and dynamic adjustments, the Company promptly identi?es potential risks and takes targeted actions to safeguard the stabilityand sustainable development of its supply chain.
Management of Impacts, Risks, and OpportunitiesSupply Chain Risk Identi?cation and Control
In 2024, Times Electric revised the “First Article Inspection Management Regulations for Purchased Parts” and the “Supplier Quality Audit Process,”further enhancing the supply chain quality risk management system to standardize audit processes and strengthen full-process control over procure-ment quality, e?ectively preventing and mitigating quality risks.In terms of cost control, the Company integrates materials and applies advanced process technologies, combined with the seven-step strategicprocurement method and the analysis of material costs, to reduce costs and improve processing e?ciency. Through project-based cost reduction andcollaborative reuse, Times Electric supports cost reduction targets across multiple industries, reducing quality cost risks from the source. In qualitymanagement, the Company promotes full-process quality involvement among all sta?, establishes a multi-tier project management system, andstrengthens quality control for bulk purchases of new energy products, so as to improve supplier process quality and prevent quality risks. Tooptimize procurement management, Times Electric enhances procurement e?ciency via a digital centralized procurement platform and optimizednon-production procurement. These e?orts contribute to procurement quality and e?ciency, risk mitigation of supply chain operation, and ?nallyadvancement of the green supply chain.Through these multi-dimensional initiatives, Times Electric improved the e?ectiveness of its supply chain quality management in all aspects, laying asolid foundation for sustainable development.
Supply Chain Risk Identi?cation and ControlSupply Chain Quality Risk Management
Case: Times Electric 2024 Annual Partner Conference
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Key Performance IndicatorsConducted quality planning and control for over20 new projects, ensuring stable material quality.
70 % or higher.
Implemented large-volume APQPcontrol for new energy products, witha selected key material APQP controlcoverage rate of
Organized suppliers to develop mass production consistency control plans and completed68 benchmarking across15 categories, 71 product codes, and 17suppliers, ensuring stable product quality.
To mitigate the impact of potential risks such as geopolitical changes, adjustments to environmental regulations, and severe weather on the supplychain, Times Electric has prepared solutions of strategic material stocking and domestic resource substitution for key materials with supply risks.Based on product market forecasts and external supply risk situations, these measures have not only reduced supply chain risks but also enhancedthe Company's sustainable development capabilities and market competitiveness.
In response to adverse factors such as geopolitical changes, tightening control policies, and international con?icts, Times Electric hasdeveloped multi-faceted contingency plans for chip materials. These include ECCN code collection, strategic material stocking, and domes-tic resource substitution. By distinguishing brands and supplementing ECCN code information, the Company has completed ECCN codecollection for 4,707 materials, signi?cantly enhancing its supply chain risk management capabilities.
Supply Chain Security Risk ManagementIndicators and Goals
Times Electric has integrated green leadership and procurement throughout the entire supply chain of green management. The Company drivesupstream enterprises to adopt green transformations, optimizes performance management systems for suppliers, strictly controls their greenstandards, and guides upstream suppliers to implement green processes and green lean manufacturing. As a result of our green e?orts, a group ofhigh-quality suppliers have become green benchmarks in the industry, with some obtaining provincial and national green factory and green productcerti?cations, forming a“green alliance” within the supply chain.Times Electric insists on green procurement throughout the entire process of purchasing raw materials, products, and services, while improvingprocurement standards and systems. By requiring suppliers to meet environmental protection, pollution prevention, energy conservation, andemission reduction standards, conducting green certi?cation, and helping them to achieve green development, the Company works with suppliers inbuilding a green supply chain. The Company assists suppliers to adopt more environmentally friendly alternative materials with no pollution or lessimpact on the environment instead of raw and auxiliary materials and packaging materials by engaging in the R&D and manufacturing processes ofsuppliers. Meanwhile, Times Electric regularly provides training and technical support to suppliers, informs environmental requirements fromcustomers and stakeholders, and helps suppliers integrate those requirements into their operations and pass them down through levels.
Sustainable Supply Chain
Times Electric has been honored with the prestigious title of “Green Supply Chain Management Enterprise” by the Ministry of Industry andInformation Technology, recognizing its exemplary green supply chain management practices. By establishing a resource-e?cient andeco-friendly system involving design, procurement, production, marketing, recycling, and logistics, the Company encourages upstream anddownstream enterprises to collaboratively enhance resource utilization, mitigate environ?mental impacts, and foster green and low-carbondevelopment throughout the entire industry chain. This accomplishment underscores Times Electric’s relentless pursuit of innovation andcommitment to green manufacturing, while also emphasizing its vital contributions to advancing industrial green development andsupporting the attainment of “dual carbon”objectives.
Case: Times Electric Crowned “Green Supply Chain Management Enterprise”
Overview of Times Electric's Suppliers
Unit2024Indicator
CompaniesCompaniesCompaniesCompanies
Total Number of Active SuppliersTotal Number of New SuppliersNumber of Active Domestic SuppliersNumber of Active Overseas Suppliers
1,337
1,223
During the reporting period, Times Electric had a total of 1,337 active suppliers.
Case: Chip Material Supply Chain Risk Response
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Environmental Compliance ManagementPollutant EmissionWaste TreatmentWater Resource ManagementEnergy ManagementBiodiversity
Key Sustainable Development Issues in This Chapter
Times Electric has embedded the vision that "lucid waters and lush mountains are invaluableassets," establishing a comprehensive environmental management system. The Companyadheres to environmental compliance management, actively promotes green production practic-es, and is committed to building a resource-e?cient and environmentally friendly enterprise,which positions it as a benchmark for green development within the industry.
Environmentally Friendly：
Driving Green Development
The SDGs addressed in this chapter
Key Performance Indicators
Times Electricanchors its sustainability strategy in rigorous environmental compliance management, maintaining strict adherence to nationalenvironmental regulations, industry standards, and a continuously enhanced governance framework. The Company proactively ful?lls its environ-mental stewardship obligations, embedding green development principles across all operational processes. Through systematic integration ofeco-conscious practices into production and management, it strives to achieve sustainable manufacturing and long-term ecological sustainability.
Environmental Compliance Management
Times Electricsteadfastly implements its EHS philosophy of"People-Centric, Continuous Improvement, Green & Environmentally Friendly, and Health& Safety,"driving the creation of a resource-e?cient and environmentally responsible enterprise. With environmental protection as a strategicpriority, the Company rigorously complies with key environmental legislation, including the Environmental Protection Law of the People's Republic ofChina, the Law of the People's Republic of China on the Prevention and Control of Water Pollution, the Law of the People's Republic of China on thePrevention and Control of Atmospheric Pollution, the Law of the People's Republic of China on the Prevention and Control of Environmental Pollutionby Solid Waste, the Law of the People’s Republic of China on the Prevention and Control of Noise Pollution, the Law of the People's Republic of Chinaon Environmental Impact Assessment, and the Environmental Protection Tax Law of the People's Republic of China. Through systematic pollutionprevention measures and full integration of compliance into all operational activities, the Company ensures that all production and operationalactivities are fully compliant with legal and regulatory requirements.Times Electrichas established aSafety, Environmental & Occupational Health Management Committeeto strengthen environmental governance.Operating under the principle of"Tiered Oversight, Functional Accountability, and Managerial Ownership,"the committee re?nes environmentalgovernance frameworks with clearly de?ned roles and responsibilities, sets measurable objectives and performance-linked accountability mecha-nisms, designates the Operations Management Department as its permanent executive body for cross-functional coordination, and ensures fullimplementation of environmental initiatives through integrated safety-ecology management systems.
Environmental Compliance ManagementEnvironmental Management System
To continuously improve environmental compliance management, Times Electrichas established and improved 32 environmental managementsystem documents, including the "Management Measures for Environmental Factors and Hazard Sources," "EHS Inspection Management Measures,"and "EHS Performance Evaluation Details." Every year, the company regularly identi?es and assesses the environmental risks and hazard sources inall products, services, activities, personnel, and equipment. Targeted risk prevention measures, management measures, and emergency measuresare formulated and improved. At the same time, the company's environmental management department organizes at least one environmentalprotection inspection per month to ensure the normal operation of wastewater treatment facilities and air pollution control facilities, ensuring compli-ance with environmental discharge standards.Meanwhile, Times Electric continuously expands the coverage of its environmental management system by commissioning third-party agenciesannually to monitor pollutants such as waste gas, wastewater, and noise. Additionally, third-party audits are conducted to review the implementationof the ISO 14001 Environmental Management System and assess alignment with environmental regulations. By 2024, all manufacturing units of theCompany have obtained ISO 14001 certi?cation. The company and its subsidiaries have cumulatively obtained 3 provincial-level green factories and2 national-level green factories. In 2024, Times Electric Manufacturing Center was awarded the title of "Zero Carbon Factory" through continuousimprovement.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Invested a total of RMB95 million in pollution control and
environmental protection initiatives
8.5 %
increase compared to the previous year
Environmental Management SystemEnvironmental Safety Culture
Times Electrichas strengthened its environmental safety defenses by prioritizing environmental safety culture development. The Companyestablished theEHS Training Management Measuresto standardize training and education within its EHS management system, regularly conductingenvironmental protection training to enhance employees' environmental awareness. Additionally, it has strengthened capacity for environmental riskassessment and prevention, improved emergency response plans for sudden environmental incidents, and organized practical emergency drillsinvolving multiple departments for key risk areas such as hazardous waste leaks and chemical spills. In 2024, the company conducted 230 emergencydrills, covering 14,000 participants, with a 100% coverage rate for emergency drills related to important environmental factors. These drills simulatereal-world scenarios, test emergency plans, and optimize response procedures, continuously enhancing risk prevention awareness and emergencyresponse capabilities to further strengthen the Company's environmental safety defenses.
In June 2024, the Company conducted emergency responsedrills for organic solvent spills during transportationtoenhance employees’ emergency response capabilitiesthrough practical training. The exercise strengthenedinterdepartmental coordination, ensuring swift incidentcontainment in real-world scenarios to minimize personnelharm and environmental impact. This initiative furtherre?nes the Company’s safety management system.
Emergency Response Drill for Organic Solvent Spills During Transportation
In October, 2024, the Company organized an emergency response drill for hazardous chemical leakage. Through a simulated real-life scenar-io, the drill encompassed various emergency response aspects such as on-site handling, rescue operations, command coordination, andprotective evacuation, comprehensively enhancing the employees' emergency response capabilities. Following the drill, the Companyconducted an evaluation of the overall e?ectiveness, which further strengthened the emergency response capacity to sudden environmentalincidents. This has laid a solid foundation for the continuous optimization of the factory's environmental management system.
Emergency Response Drill for On-site Handling of Hazardous Chemical Warehouse LeakageMaintained full compliance with environmental laws and regulations, with no penalties imposed for violations.
Case: Emergency Response Drill for Organic Solvent Spills During Transportation
Case: Emergency Response Drill for On-site Handling of Hazardous Chemical WarehouseLeakage
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key Performance Indicators
Times Electric is actively constructing a comprehensive monitoring system for pollutant emissions, optimizing pollution prevention facilities, improv-ing production processes, and enhancing the meticulous management of pollution sources. Through multiple measures, the Company is reducing theintensity of pollutant emissions, contributing to the improvement of regional environmental quality and promoting the green and low-carbondevelopment of the industry.
Pollutant Emission Management
To e?ectively prevent and control environmental pollution, the Company has formulated and rigorously enforces the Environmental ProtectionManagement Measures, which delineate preventive measures against water pollution, air pollution, noise pollution, solid waste pollution, andradioactive pollution. The Company is committed to reducing pollutant emissions at the source through various initiatives, including upgradingenvironmental protection equipment and optimizing production processes. Combined with meticulous pollutant management, Times Electricensures that all emission indicators consistently surpass national standards, striving to minimize environmental impact during production andendeavoring to achieve sustainable low-carbon development goals.
In 2024, the subsidiary Times Semiconductor completed a technical capacity enhancement project for its silicon carbide (SiC) chip produc-tion line, implementing critical upgrades to optimize waste gas management. A dedicated acid gas scrubber tower and an alkaline gasexhaust stack were installed on Line 5 with an investment of 3 million yuan made, enabling segregated collection and treatment of acidicand alkaline waste gases. In alignment with the National Pollution Prevention and Control Technology Guidance Catalog (2024, Restrictedand Obsolete Categories), the Company upgraded the organic gas treatment system on Line 5 by replacing the original photocatalyst +activated carbon adsorption process with a two-stage activated carbon adsorption system. Additionally, ?ve new combustion + waterscrubbing pretreatment units (Point-of-Use, POU) were integrated into the specialty gas treatment framework, signi?cantly enhancingemission control e?ciency.
The company achieved100 % compliance with wastewater and exhaust gas discharge standardsfor all key management units and simpli?ed management units under the pollution discharge permit system.
Pollution Prevention and ControlExhaust Gas Management
Times Electric is making continuous e?orts in the management of exhaust gas by actively setting emission reduction targets, advancing optimizationprojects for exhaust gas treatment, upgrading existing facilities, and enhancing the e?ciency of exhaust gas processing to achieve more environmen-tally friendly and e?cient emission control. In 2024, the company invested a total of 2 million RMB in the renovation of organic waste gas treatmentfacilities, signi?cantly reducing the emission concentration of organic waste gases, which are well below national discharge standards. To ensureongoing compliance with exhaust gas emission standards, the company strictly follows pollution discharge permit requirements by regularly commis-sioning third-party agencies to monitor air emissions and provide valid testing reports, further promoting green and sustainable development.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.Exhaust Gas Emission Reduction Target and Completion Status
Unit2024Indicators
m3TonsTonsTonsTonsTons
Exhaust GasSulfur Oxides (SOx)Nitrogen Oxides (NOx)Volatile Organic Compounds (VOCs)Particulate Matter (PM)Non-Methane Hydrocarbons (NMHC)
3,783,254,746
0.6699
22.2552
21.1222
4.0480
21.1222
Exhaust Gas ManagementWastewater Management
The Company strictly adheres to standardized management requirements by formulating and implementing the Wastewater Treatment SystemOperation Management Measures, which specify that the discharge of acid and alkaline wastewater complies with the indirect discharge standardsoutlined in the Discharge Standards of Water Pollutants for Electronics Industry (GB 39731-2020), while petroleum-based substances and ?uoride aresubject to direct discharge standards. The IGBT Park wastewater treatment system is equipped with online monitoring devices that transmit real-timedata to the environmental protection department via network connectivity. Additionally, the plant services department employs an internal wastewa-ter terminal monitoring system for continuous oversight, and the Company engages third-party agencies to conduct monthly monitoring to ensurefull compliance with regulatory requirements for all wastewater discharges.
Wastewater Reduction Target and Completion Status
Times Electric Major Air Pollutants Emissions
Exhaust Gas Emission Reduction
Target
Completion Status in 2024
Target Completion Status
Using 2021 as the baseline year,the cumulative reduction rate ofnon-methane total hydrocarbonemissions per million yuan ofrevenue will reach 30% by 2025.
The non-methane total hydrocar-bon emissions per million yuan ofrevenue decreased by 42.31%.
The target hasbeen exceeded.
Wastewater Reduction TargetCompletion Status in 2024Target Completion Status
The target hasbeen exceeded.Using 2021 as the baseline year,the cumulative emissionreduction rate of COD andammonia nitrogen emissions permillion yuan of revenue will reach30% by 2025.
The COD emissions per millionyuan of revenue decreased by
40.30%.
The ammonia nitrogen emissionsper million yuan of revenuedecreased by 41.86%.
Case: Exhaust Gas Treatment Improvement Project at Subsidiary Times Semiconductor
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
In 2024, the company added a new wastewater bu?er tank system to the existing wastewater treatment system, improving the stabilityof the wastewater treatment system by 30% and further reducing the environmental risks associated with production activities.
Wastewater Bu?er Tank
Case: Bu?er Tank System Improvement Project
Unit 2024Indicators
TonsTonsTonsTonsTonsTons
Total Wastewater Discharge VolumeIndustrial WastewaterDomestic SewageAmmonia Nitrogen （NH
-N）Chemical Oxygen Demand (COD)Suspended Solids
1,286,7971,260,909.1025,887.84
4.82
54.86
13.52
Times Electric Wastewater Discharge
The Company consistently prioritizes waste management as a critical component of its environmental governance initiatives. It has established ascienti?c and comprehensive waste management system to ensure proper handling of all waste categories. By adopting advanced resource recoverytechnologies, the Company continuously enhances the integrated utilization e?ciency of waste materials, contributing to green development andecological civilization advancement.
Waste Treatment
Times Electric strictly adheres to national and local environmental regulations and has formulated the Hazardous Waste Management Rulestostandardize the classi?cation, collection, storage, transportation, and disposal processes of waste materials, ensuring full compliance with environ-mental standards.Furthermore, the Company manages solid waste in accordance with the principles ofreduction, resource recovery, and harmless treatment,implementing classi?ed management and comprehensive utilization. Storage, transfer, and disposal processes are strictly regulated to eliminateimproper dumping or abandonment. The Company has issued theSpeci?cations for Hazardous Waste ManagementandSpeci?cations for GeneralIndustrial Solid Waste Management, explicitly de?ning9 major categories and 21 subcategories of hazardous waste, including waste organic solvents,waste hydro?uoric acid, waste mixed acids, and others. To advance hazardous waste resource recovery, the Company focuses on high-volume wastestreams such as waste acids and organic solvents. The company seeks resource utilization of hazardous waste and is exploring resource treatmentpaths for large quantities of waste acid and waste organic solvents. The disposal cycle for waste acid and waste organic solvents has been reduced by 5%.
Unit2024IndicatorsTonsTonston per million yuan of output value
Tonston per million yuan of output value
Tons
Total Waste DischargeTotal Hazardous Waste DischargeHazardous Waste Discharge IntensityTotal Non-hazardous Waste DischargeNon-hazardous Waste Discharge Intensity
Total Recyclable Waste Discharge
4,359.522,162.77
0.087
2,196.74
0.088
722.79
Times Electric Waste Discharge
Waste ManagementWaste Recycling
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
By recycling and reusing waste materials, the Company has signi?cantly reduced soil and water pollution caused by improper disposal or land?lling of waste,minimized air pollution from waste incineration, and protected the surrounding ecological environment. This initiative has enhanced resource utilizatione?ciency and stimulated the development of upstream and downstream industries. In practice, the Company utilizes sludge as a supplementary material forcement production, replacing part of the clay-based raw materials or fuel. This approach achieves resource recycling, combining environmental protectionwith economic bene?ts, and contributes to promoting sustainable social development.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Adhering to the principle of "conservation ?rst, protection prioritized, and natural restoration as the cornerstone," Times Electric actively implementsnational policies on resource conservation and environmental protection. The Company fully embraces water-saving practices and e?cient resourceutilization, providing robust support for advancing green development.
Resource Management
Times Electric upholds the concept of water conservation and e?cient utilization, continuously optimizing water usage processes in productionthrough measures such as upgrading recycling water systems and reusing reclaimed water, e?ectively reducing water consumption. The Companyestablishes and evaluates annual total water usage targets, with the 2024 goal set at 2.61 million cubic meters. Actual consumption reached 2.59million cubic meters, successfully exceeding the target. All water sources are derived from local municipal supplies.To address the high local wastewater treatment costs, Times Electric has actively advanced multiple water conservation initiatives. The Company hasinstalled RO concentrate reuse systems and drainage heat recovery systems, e?ectively reducing tap water usage and wastewater discharge, minimiz-ing water resource consumption. Additionally, it has implemented reuse systems for dilute ?uoride wastewater, back grinding wastewater, and QDRwastewater, further optimizing wastewater treatment and recycling. Concurrently, projects for concentrated acid waste collection/o?-site transporta-tion and PI developer waste recycling have been promoted to minimize waste liquid emissions and enable resource recovery. These measures areprojected to reduce annual costs for puri?ed water production and wastewater treatment by 16.141 million yuan, signi?cantly enhancing resourcee?ciency and economic bene?ts. In the year of 2024, subsidiary Times Semiconductor recorded a total water consumption of 1.51 million cubicmeters, with 252,000 cubic meters being reused—achieving a reuse rate of 16.69%.
Reuse System for Back Grinding Wastewater
Backgrinding wastewater bu?er tank
RC/FRP
Filtering tank
RC/FRPLFilter(SS ?ltering, etc.)
UF(SS ?ltering, etc.)
MAU water collection tank
Cooling towe
Grinding wastewater
treatment system
62,000tons/year
145,000tons/year163,000tons of wastewater discharged by process machines44,000 tons of sand-carbon backwash wastewater
207,000tons
System design water recovery rate 70 %
To address the overload operation of the back grinding wastewater treatment system and unstable e?uent quality, the Company upgrad-ed its existing system with a treatment capacity of 10 m?/h to 20 m?/h by adopting aself-cleaning ?lter + ceramic membrane technology,achieving a wastewater recovery rate of approximately80%through the ceramic membrane process. Following the retro?t, the upgradedback grinding wastewater reuse system has been commissioned, accumulating a reclaimed water volume of45,530 cubic metersandgenerating estimated economic bene?ts of approximately182,000 yuan. Additionally, the new reuse system has increased the reclaimedwater reuse ratein the IGBT park, reduced the operational loadon the grinding wastewater system, enhanced the stabilityof thewastewater treatment system; decreased sewage discharge volumeandlowered wastewater discharge fees, collectively advancing theIGBT park’sgreen and sustainable development.
Reuse System for Back Grinding Wastewater
Case: Back Grinding Wastewater Reduction and Recycling Retro?t Project
Unit2024Indicators10,000 m310,000 m3 per 10,000 yuan of output valueMunicipal Water ConsumptionWater Consumption Intensity
0.0001
Times Electric Water Consumption
Water Resource ManagementPackaging Material Recycling
Times Electric actively implements the "6R1D" strategywith a focus on moderate packaging, by implementing principles of rational design, pre-reduc-tion, reusable circulation, reuse, material recycling, energy recovery, and degradable disposal. This comprehensive approach optimizes packagingprocesses to reduce resource waste and environmental impact.In operational practice, Times Electric promotes the green transformation of packaging by adopting methods such as the use of reusable tooling,supplier packaging recycling, and supplier circular delivery.In 2024, the proportion of the manufacturing center's output value from products using recyclable packaging accounted for 0.12% of the total outputvalue, reducing wood consumption by approximately 32.25 tons. The proportion of recycled packaging for incoming materials in the manufacturingcenter was 8.51%.In 2024, the company implemented circular delivery for ?ve local suppliers in Zhuzhou, solving the problem of frequent small-batch deliveries foritems like copper bars and nameplates. This approach saved costs on dedicated drivers and logistics vehicles, reduced supplier costs by 100,000 yuanper supplier, improved the e?ciency of delivery point receipt and exception handling, and also reduced energy consumption and carbon emissionsduring the logistics process.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
L/S intermediate tankRC/FRPLMMFbackwashMMF(SS ?ltering, etc.)
ACF(TOC absorption, etc.)SC(Cation removal)WA/SA(Anion removal)
L/S equalization tankRC/FRP
L/S supply tankRC/FRPL
FRP water collection tankFRP water collection tank Precision ?lter(SS removal, etc.)
SC/SA regeneration,ACF backwash
Fluoridewastewater
219,000tons
627,000tons
Local Scrubber
408,000tons
162,000tons of ?uoride wastewater
465,000tons of wastewaterdischarged by Local Scrubber
System design water recovery rate 65 %
Reuse System for Dilute Fluoride Wastewater
Heat exchanger(Temperature adjustment)
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
To respond to the concept of green logistics, the Companylaunched bamboo-plastic recyclable packaging materials in2024. Bamboo-plastic boxes, as an environmentally friendlymaterial, replace traditional wooden boxes, o?ering not onlycost advantages but also excellent recycling performance.Currently, bamboo-plastic boxes have been put into use inseveral bases. Through recycling, packaging costs have beenreduced by 32.1%, e?ectively promoting the continuousdevelopment of the Company's green logistics and improvingresource utilization e?ciency.
Case: Recycling of Bamboo-Plastic Packaging Materials
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Bamboo-Plastic Packaging Boxes
Unit2024Indicators
TonsTonsTonsTonsTonsTons
Total Usage of Packaging Consumables
PlasticPaperMetalGlassOthers
6,832.01
65.49
87.97
185.05
6,493.5Key Indicators for Packaging Material Usage
Times Electric actively responds to the national strategies ofcarbon peaking and carbonneutrality. In compliance with the Law of the People's Republic of China on EnergyConservation,the Environmental Protection Law of the People’s Republic of China, andSupervisory and Management Measures for Energy Conservation and Ecological andEnvironmental Protection of Central State-Owned Enterprises, the Company formulatesinternal regulatory documents including theEnergy Management Manual,Energy Manage-ment Rules, andGuidelines for Energy Conservation and Eco-Environmental ProtectionManagement. Guided by the energy policy of“Maximizing Social Responsibility, NurturingTop-tier Talent, and Empowering a Green World with Sustainable Solutions”, the Companyaligns with the ISO 50001 energy management system standard to clarify departmentalresponsibilities and operational procedures. By integrating national and local energypolicies, it re?nes internal regulations and enhances energy management measures. As ofthe end of 2024, Times Electric has obtainedISO 50001 Energy Management System
Energy Management
In terms of management principles, Times Electric adheres togreen and low-carbon development, integrating energy conservation and carbonreduction into its corporate strategy to build agreen, low-carbon, and circular development system. The company has established clear energymanagement goals, aiming for comprehensive energy consumption per 10,000 yuan of output value to be less than 0.025 tons of standard coal. Thecompany has implemented waste heat recovery,reclaimed water reuse, andheat pump heating measures, promotingintegrated energysolutionscombining solar power, energy storage, charging, cooling, and heating technologies, ensuringGrade 2 or higher energy e?ciency ratingsforall major energy-consuming equipment, minimizing the use ofprimary energy sourcessuch as natural gas. By advancing these initiatives, TimesElectric actively enforces energy-saving and consumption-reduction policies, contributing to corporate sustainability and the advancement ofecologi-cal civilization.
ISO 50001 Energy Management System Certi?cation
MeasuresResultsOptimize the operation and standby processes of high-temperature equipmenttoreduce electricity consumption forkey energy-consuming systems, including coatingline curing ovens, high-temperature testing tunnel furnaces, and soldering ovens.By increasing the number of heat exchanger plates in the pure water system, the watertemperature is elevated to meet the system's operational requirements, whilereduc-ing the boiler feedwater temperatureto ensure stable and e?cient pure water supplyfor production lines.To address energy consumption from auxiliary o?ce systems such as HVAC andlighting, the Company has pilotedsmart HVAC-lighting terminal retro?tsin selectedareas. By deployingintelligent control panels integrated with occupancysensorsandremote scheduling systems, these upgrades enable precise energymanagement and high-e?ciency utilization.Phase out outdated equipment, includinglow-e?ciency third-tier air handling units(AHUs),fans, and other aging systems withover 13 years of operation, replacingthem withhigh-e?ciency, energy-saving modelsto signi?cantly enhance energyutilization e?ciency.By sealing the connection between the return air plenum and RCU ducts, andinstalling additional return air vents in heat-intensive zones linked to newly added RCUducts, the Company has optimized the heat exchange e?ciency of MAUs and RCUs.By optimizing production line scheduling, introducing mechanical assistive devices,and improving work?ow processes, the Company has enhanced energy utilizatione?ciency and reduced plant utility energy allocation costs.
An annual electricity saving ofapproximately 1.2 million kWh
An estimated energy saving of 30%
An estimated annual electricitycost saving of 100,000 yuanAn estimated annual electricitycost saving of 100,000 yuanA cumulative cost reduction of109,000 yuan over 3 months ofimplementation
EquipmentOptimization
EquipmentRetro?t
Work?owOptimization
Time Electric Energy Conservation and Consumption Reduction Measures
An estimated naturalgas saving of 19,100 m?.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key Performance Indicators
Times Electric fully recognizes the profound challenges posed by climate change and has positioned addressing climate change as a strategic priorityfor achieving sustainable development. By establishing a robust governance framework, the Company proactively identi?es and manages climate-re-lated risks and opportunities, continuously improves mitigation measures, enhances its capacity to address climate risks, and ensures climateresilience across its production and operational activities.
Response to Climate Change
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Added3 MW of rooftop photovoltaic capacity
with an annual electricity generationcapacity of approximately3 million kWh.
Purchased
20 million kWh of green
electricity throughout the year
Unit2024Indicators10,000 m3m310,000 kWh
kWhTon of Standard CoalTon of Standard Coal per 10,000 yuan of
output value
Natural Gas ConsumptionPer Capita Natural Gas ConsumptionPurchased ElectricityPer Capita Electricity ConsumptionComprehensive Energy ConsumptionComprehensive Energy Consumption per10,000 Yuan of Output Value
370.14
29,46531,35340,839
0.016
Times Electric Energy Consumption
Green Electricity Consumption Certi?cate
Times Electric has established a comprehensive governance framework to ensure e?ective implementation from strategic planning to execution inaddressing climate change. The Company has instituted a multi-tiered management system comprising the Board of Directors, Board Strategy andESG Committee, and ESG executive teams, creating a well-de?ned division of responsibilities and streamlined decision-making processes.The Board of Directors oversees the formulation of corporate-wide sustainable development strategies at the strategic decision-making level,integrating climate considerations into long-term development plans to ensure alignment between low-carbon transition and business growth. Underthe Board's guidance, the Board Strategy and ESG Committee spearheads the research and planning of climate change mitigation strategies whilemaintaining regular disclosure of climate-related practices. At the operational level, ESG executive teams implement speci?c measures encompassingenergy conservation and emission reduction, renewable energy utilization, and green manufacturing, in accordance with the deployment of the BoardStrategy and ESG Committee, to ensure the achievement of carbon reduction goals.
Review climate change manage-ment annuallyEnsure e?ective implementationof climate change managementstrategies
Board of Directors
Disclose practices and progressrelated to climate changeDevelop and oversee theCompany's climate changeresponse strategies to ensurethe achievement of ESG goals
Board Strategy andESG Committee
Formulate speci?c energy-saving,emission-reduction measuresand green operation plans toensure the integration of climatechange governance require-ments into daily operations
ESG Execution Team
GovernanceStrategy
Times Electric has developed a profound understanding of the impacts of climate change, recognizing both the necessity and urgency of climateaction, and is actively implementing national carbon peaking and carbon neutrality goals. The Company has established a systematic process foridentifying, assessing, developing measures, monitoring, and reporting environmental and climate-related risks and opportunities, providing a solidfoundation for optimizing environmental and climate risk management while capitalizing on development opportunities. Furthermore, the Companyhas integrated climate risks into its comprehensive risk management framework, o?ering a scienti?c basis for formulating and adjusting climatestrategies, as well as determining implementation plans and target.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Risk identi?cationand assessment
Regularly evaluate physical andtransition risksAnalyze the impact of climate scenar-ios on the Company’s ?nancials andoperations
Risk responsemeasuresInvest in climate-resilientinfrastructureOptimize the supply chainImprove energy e?ciencyDevelop emergency plans toaddress extreme weatherevents
Risk monitoringand reportingEstablish a risk monitoring system totrack the e?ectiveness of manage-ment measuresDisclose the progress and e?ective-ness of climate risk management inthe annual report
Climate Change Risk Management ProcessFurthermore, Times Electric has formulated a comprehensive climate change and opportunity management strategy, establishing a systematicidenti?cation process to e?ectively address climate-related risks and opportunities. In terms of physical risk analysis, the Company has adopted theRepresentative Concentration Pathway (RCP) 4.5 intermediate emission scenario and the RCP 8.5 high emission scenario as de?ned by the Intergov-ernmental Panel on Climate Change (IPCC).
Physical Risk Analysis
RCP 8.5 high emission scenario asde?ned by IPCCWithout climate policy interventions,global greenhouse gas emissions andconcentrations will continue to increase.RCP 4.5 intermediate emission scenario as de?ned by IPCC
2℃4℃By taking strong mitigation actions, it is expected that global greenhousegas emissions will be reduced to half of the current levels by 2080.
Transition Risk Analysis
IEA Stated Policies ScenarioIEA Sustainable Development Scenario
1.6℃2.6℃
Aligned with the United Nations Sustainable Development Goals(SDGs) and the Paris Agreement, this scenario assumes that by2030, countries will have access to a?ordable, reliable, and sustain-able modern energy services, signi?cantly reduce air pollution, andtake e?ective actions to address climate change.
Based on a detailed assessment of
current speci?c policies and those
announced by governments
worldwide, potential development
trajectory of the energy system in
the absence of additional policy
implementation is explored.
Time HorizonsAligned with the Company’s ESG annual goal-setting and review cycle.Aligned with the timeline of the Company’s climate change governance objectives.Aligned with the timeline for achieving the Company's value chain "Carbon Neutral" emissions target.Short-term (2025-2026)Medium-term (2027-2035)
Long-term (2036-2050)
Based on the above scenarios, we have comprehensively identi?ed the Company's potential physical and transition risks in the short-term, medium-term, and long-term.
Times Electric proactively addresses climate risks by identifying potential impacts on its operations, conducting in-depth analyses of climatechange-induced risks and opportunities, and establishing e?ective mitigation measures.
Flooding or damage to factories andwarehouses, leading to production stoppages.Heavy rainfall may disrupt raw material supplyand logistics transportation, a?ectingproduction progress.
Product productionand operations,Supply ChainShort-term,medium-term,long-termHighExtremePrecipitation
Asset loss, increasein operating costs
Sudden drought may lead to water shortagesfor production, a?ecting operational progress.Drought may disrupt the supply of water-de-pendent raw materials, threatening supplychain stability.
Product productionand operations,Supply ChainShort-term,medium-term,long-termHighSuddenDrought
Increase inoperating costsHigh temperatures may overload powersystems, reduce transmission e?ciency, anda?ect the operation of production equipment.High temperatures in the workplace increasethe risk of heatstroke for employees, a?ectingboth work e?ciency and health.
Product productionand operationsShort-term,medium-term,long-termMediumExtremeHeat
Increase inoperating costsand insurance costs
Water scarcity and rising water prices maylimit production capacity and lead toincreased operating costs, a?ectingpro?tability.
Product productionand operationsShort-term,medium-term,long-termMediumWaterScarcity
Increase inoperating costsand decrease inrevenue
Typeof Risk
Classof Risk
Anticipated
Time ofOccurrence
Potential Risk Impacts
Potentially A?ectedValue Chain Segments
PotentialFinancialImpacts
Impact, Risk and Opportunity ManagementAcute Risks
Acute RisksChronic Risks
Physical Risk List
ScenarioScenario DescriptionEstimated Temperature bythe End of the CenturyAnalysis Boundary
Scenario
Scenario Description
Estimated Temperature bythe End of the CenturyAnalysis Boundary
The analysis boundary covers Times Electric and its subsidiaries, focusing solely on the Company's ownproduction and operations.
The analysis boundary covers Times Electric and its subsidiaries, focusing solely on the Company's ownproduction and operations.
In terms of transition risk analysis, we conduct assessments based on the IEA Sustainable Development Scenario (SDS) and the IEA StatedPolicies Scenario (STEPS).
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Mitigation MeasuresType of RisksOptimize infrastructure：
Install drainage systems in critical facilities and waterlogged areas, andregularly clean stormwater pipes to ensure smooth drainage.Improve emergency managementDevelop emergency response plans for extreme precipita-
tion and business continuity plans to enhance the ability to respond to unforeseen situations.Strengthen monitoring and early warningClosely monitor weather changes, promptly receivewarning information, and quickly activate the emergency response mechanism.Optimize water resource management:Implement a scienti?c and organized water usage planand supply scheme, prioritizing the provision of water for critical production processes and essentialdomestic use.Diversify supply sources:Develop diversi?ed raw material supply channels to reduce dependence
on a single supplier.Optimize energy structure:Actively develop new energy sources, install photovoltaic solar panelsfor solar power generation, to achieve energy self-su?ciency and reduce dependence on traditionalpower grids.Ensure worker safety:Provide adequate heat prevention and cooling supplies for workers, andarrange work schedules reasonably to avoid excessive exposure to high temperatures.
Water resource recycling: Strengthen the construction of reclaimed water systems to improve therecycling rate of water resources and reduce dependence on freshwater sources.Enhance water conservation awareness:Strengthen education and publicity e?orts to encourageemployees to conserve water
Extreme Precipitation
Sudden Drought
Extreme Heat
Water Scarcity
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Physical Risk Mitigation Measures
With the continuous update and tightening of globalcarbon reduction policies, the Company may facestricter carbon emission limits and will need toincrease investments in emission reduction tocomply with new regulations.The implementation of carbon taxes or the rise incarbon pricing may increase the Company'soperational costs.
Product R&D,product productionand operationsMedium-term,long-termHighRegulatoryRisk
Increase inoperating costs
The high development costs associated withenergy transition may exert pressure on theCompany's short-term ?nancial performance.
Product R&DShort-termHighTechnicalRisk
Increase inoperating costsThe emergence of substitutes and shifts in competi-tive trends may impact the Company's existingbusiness model, necessitating timely strategicadjustments to respond to market changes.
Product productionand operationsShort-term,medium-term,long-termHighMarketRisk
Increase inoperatingcosts andinsurance costsIf the Company fails to promptly respond tocustomer demand for low-carbon products andservices, it may face the risk of losing market share.
Product production
and operations,
supply chainLong-termMediumReputationRisk
Increase inoperatingcosts, decreasein revenues
Typeof Risk
Classof Risk
Anticipated
Time ofOccurrence
PotentialRisk Impacts
PotentiallyA?ected ValueChain Segments
PotentialFinancialImpacts
Transition Risk List
Mitigation MeasuresType of RiskActively participate in the policy-making process, stay informed about policy developments, and ensurethe Company's strategy aligns with policy directions.Optimize production processes, adopt low-carbon technologies, reduce carbon emissions, andenhance energy utilization e?ciency.Explore new business models, such as extending the new energy technology industry chain, to createnew revenue streams.Optimize the energy management system, reduce operational costs, and enhance resource utilizatione?ciency.Closely monitor industry developments, conduct in-depth analysis of market trends, continuouslyoptimize product portfolios and business models, and actively expand diversi?ed business operations.Publish sustainability reports and engage in stakeholder communication to comprehensively showcasethe Company's speci?c initiatives and achievements in environmental protection and low-carbontransition, further enhancing transparency and credibility.
Regulatory Risk
Technical Risk
Market Risk
Reputation Risk
Transition Risk Mitigation Measures
Potential ImpactCountermeasuresType ofOpportunities
MarketOpportunities
The global demand for clean energy continues to rise, creatingvast market opportunities for the Company to develop newenergy technologies and products.
Establish a localized operational team, strength-en cooperation with local governments,businesses, and communities, and respondquickly to market demands.Expand into global markets, actively participate ininternational clean energy projects, and enhancebrand in?uence and market share.
TechnicalOpportunities
The rapid advancements in clean energy technologies suchas photovoltaics and wind power provide strong technicalsupport for the Company to drive energy transition andequipment upgrades.
Establish deep collaborations with researchinstitutions to jointly advance the commercializationof cutting-edge technologies, with a focus on theinnovation and development of low-carbontechnologies and environmentally friendlymaterials.Position in the clean energy technology sector,continuously enhancing core competitiveness inthe green energy market through technologicalinnovation and resource integration.
List of Transition Opportunities
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Times Electric actively responds to global climate action initiatives and has developed a systematic climate action plan based on the Science BasedTargets initiative (SBTi) framework, tailored to the Company's actual operations. The Company is progressing towards the goal of achieving carbonneutrality in operations (Scope 1 and 2) by 2035, and carbon neutrality across the entire value chain (Scope 1, 2, and 3) by 2050, in alignment with thebroader goals of CRRC Group. To ensure the achievement of these targets, the Company has formulated a detailed implementation pathway: in termsof technological innovation, it will increase investment in clean energy technology research and development and promote the low-carbon transfor-mation of production processes; in market expansion, it will focus on high-growth areas such as new energy equipment and energy-saving andenvironmental protection products; in industrial collaboration, it will work with upstream and downstream partners to build a green supply chain anddrive the low-carbon transformation of the entire industry chain. Through multi-dimensional and systematic climate actions, the Company is commit-ted to becoming a model of green and low-carbon development, contributing corporate strength to addressing climate change.The Company's carbon emission data for the year 2024 is shown in the table below. The Company has engaged Bureau Veritas Certi?cation (Beijing)Co., Ltd. to verify the Company's (excluding Hunan CNR Commercial Vehicle Power Technology Co., Ltd.) carbon emissions from its operations inFY2024, and the results of the veri?cation are set out in the “Greenhouse Gas Veri?cation Opinion”.
Times Electric is committed to building a sustainable ecological environment and actively practices the concept of green development.The Companyhas established the Greenery Management Measures to regulate greenery management and promote ecological environmental protection. Inaccordance with the Urban Landscaping Management Regulations and the Urban Landscaping Maintenance Standards, the Company enhances thequality of the natural environment and ecological space by maintaining trees, ?owers, and plants, contributing to the preservation and restoration ofbiodiversity. Additionally, the Company actively participates in green energy projects, such as the construction of photovoltaic power plants, andpromotes ecological restoration, contributing to the harmonious coexistence of the ecological environment.
Environmental Protection
Unit2024Indicators
Tons of carbon dioxide equivalentTons of carbon dioxide equivalentTons of carbon dioxide equivalentTons of carbon dioxide equivalent /10,000 RMB output value
Total GHG Emissions
Scope 1Scope 2GHG Emission Intensity
170,217.5422,838.63147,378.91
0.0683
Carbon Inventory/AccountingIn 2024, the Company's Scope 1 and Scope 2 data coverage: According to the ISO 14064:2018 standard, Times Electric conducted greenhouse gasaccounting for its wholly-owned subsidiaries, holding companies, and branches (excluding overseas entities).Scope 1 includes emissions from the combustion of fossil fuels such as natural gas, fugitive emissions from refrigerants, and emissions fromsemiconductor production processes; Scope 2 refers to emissions from purchased electricity.The heat value data for fossil fuels in Scope 1 is sourced from GB/T 2589-2020, and the emission factors are from IPCC 2006 and IPCC 2021; theelectricity emission factor for Scope 2 is sourced from the Ministry of Ecology and Environment and the National Bureau of Statistics' notice"Release of the 2022 Electricity Carbon Dioxide Emission Factors"(Announcement No. 33 of 2024).
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Times Electric always takes employees as the cornerstone of sustainable corporate development.It is committed to safeguarding employee rights and interests, establishing comprehensiverecruitment and employment policies, and developing a complete and competitive compensationand bene?ts system. It prioritizes employee health and well-being, creates a safe and comfortableworking environment, aiming to help employees realize their personal value while advancing inharmony with the company and sharing the bene?ts of corporate development.
People OrientedEmpoweringInclusive Progress
Key Sustainable Development Issues in This Chapter
Employee diversity and equalityEmployee training and developmentEmployee rights, interests and well-beingOccupational health and safetySocial welfarePromotion of local economic development
SDGs addressed in this chapter
Employee GenderStructure
1,8497,54920%80%
MaleFemale
Employee AgeStructure1,9474,349
2,53921%46%
6%
27%
41-5031-4030 and below
51 and above
Employee GeographicLocation Structure*
9,3986%
94%DomesticemployeesOverseasEmployees
Employee Education
Level Structure*
5,611
1,571
2,828
56%
16%
28%
Master's degree and aboveBachelor's degreeJunior college and specialized schools
Key performance
Key performance
Times Electric is dedicated to protecting employees’ legal rights and interests, continuously improving employment management systems, and activelyupholding principles of equality and fairness in recruitment. The company strictly prohibits any form of discrimination or harassment and strives to foster adiverse, equitable, and inclusive workplace.
Protection of Employee Rights and Interests
Strictly adhering to laws and regulations, including the Labor Law of the People’s Republic of China, the Labor Contract Law of the People’s Republicof China, the Law of the People’s Republic of China on the Protection of Minors, and the Law of the People’s Republic of China on the Protection ofWomen’s Rights and Interests, Times Electric has formulated the Labor Employment Management Measures and has updated and modi?ed policydocuments such as the Employee Attendance Management Measures, Measures for the Management of Professional Managers’ Performance ofDuties and Business Expenses, Internal Retirement Regulations, and Standby Employee Regulations, further improving the compliant employmentand the policy system for rights and interests protection of employees.We promote an inclusive and diverse work environment, ensuring equal treatment for all employees. Any form of discrimination - whether based onnationality, ethnicity, gender, religion, cultural background, or physical and mental conditions, along with the employment of child labor, forced labor,and workplace harassment are prohibited.We safeguard employees’ legal rights and interests, adhering to the principles of distribution based on work performed and equal pay for equal work.The company has formulated and implemented the Wage Payment Management Measures and the Employee Performance Management Measures,establishing a comprehensive compensation and bene?ts system. All employees can enjoy subsidies such as the ?ve social insurances and onehousing fund, union bene?ts, transportation allowances, meal subsidies, and housing subsidies. Additionally, the company implements an annualleave system in compliance with the national Regulations on Paid Annual Leave for Employees and the Implementation Measures for Paid AnnualLeave for Enterprise Employees.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
no cases of child labor employment, forced labor, or workplace harassment werereported in Times Electric.The labor contract signing rate for employees was
100 %
As of the end of the reporting period, the total number of employees* of Times Electric was 10,010, including 9,398 domestic employees and 612overseas employees. During the reporting period, the Company’s employee turnover rate was 3.80%, with male and female turnover rates at 4.16%and 2.54%, respectively.
Employee Structure Chart of Times Electric
Compliant EmploymentDiversity and Inclusion
Times Electric actively recruits outstanding talents, providing employment opportunities for individuals from di?erent regions, ethnicities, cultures,and people with disabilities. Each year, the company develops recruitment plans for veterans and individuals with disabilities in accordance with therequirements of CRRC Group and Zhuzhou Institute, and implements them through mutual matching. In 2024, a subsidiary of the company in thesemiconductor sector successfully hired a veteran, while also re-employing 6 experienced employees through its reemployment mechanism, therebypracticing the concept of diversity and inclusion and demonstrating the company’s e?orts in creating an inclusive workplace environment.The company places a high value on the career development of female employees. It actively promotes the social in?uence of women and encouragesfemale employees to collaborate, share experiences, and provides comprehensive support for their continued development.
the company hired57 new female employees
bringing the total number offemale employees to
1,849accounting for20 % of the workforce
Among the management team,women make up
9.5 %
with women in seniormanagement positionsaccounting for
7.7%
In 2024, the company employed399 ethnic minority employees.*The scope is Times Electric's consolidated reporting unit, including foreign branches.
In 2024
In 2024
*The scope is Times Electric's consolidated reporting unit, including foreign branches.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key performance
Times Electric places great emphasis on listening to employees’ voices and provides an open communication platform for them, continuouslyensuring smooth communication mechanisms. At the same time, the company fully implements employee care policies by organizing a variety ofactivities to meet the diverse needs of employees, fostering a harmonious and positive corporate culture, and supporting the mutual growth ofemployees and the company.
Employee Communication and Care
Times Electric fosters a company atmosphere that encourages open communication. The company strictly adheres to laws and regulations such asthe Trade Union Law of the People’s Republic of China, respects employees’ rights to freely associate and engage in collective bargaining, activelypromotes employee rights and interests protection through democratic management measures, and ensures communication channels are smoothand e?cient.Times Electric understands employee needs through diverse channels such as sta? congresses, employee satisfaction surveys, and in-depth visits tograssroots levels, encouraging employees to fully exercise their right to participate in, right to be informed about, right to express, and right to supervise.
Employee CommunicationDiverse Employee Communication Methods
The company strictly implements the sta? congress system and ensures the protection of employees’ democratic managementrights by law. In 2024, nearly 100 opinions were collected during the sta? congress, covering key areas such as market expansion,management improvement, deepening reforms, employee bene?ts, cost reduction and e?ciency enhancement, talent ?ow anddevelopment, and industrial development, fully re?ecting the important role of the sta? congress in promoting the company’sdevelopment.
Sta? congress
The company conscientiously ful?lls the system of factory a?airs disclosure, disclosing major matters of production and operationof the company, the integrity and self-discipline of the leading cadres, and the disposal of major assets through the channels of thesta? meeting, the Party Committee, the Decision-making Committee, as well as the documents and so on.Transparency in factory a?airs
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
The company performs democratic supervision after the public disclosure of factory a?airs, and employee representatives areorganized to review management measures related to employees’ interests. In 2024, employee representatives discusseddocuments such as the Management Measures for Two Funds Performance and collected more than 40 suggestions, which werecommunicated and coordinated with relevant departments to ensure timely feedback and resolution of issues.Democratic supervision after public disclosure of factory a?airs
Our company has signed the Collective Contract and Special Collective Contract for the Protection of the Rights and Interests ofFemale Workers and Employees with the labor union, which covers salary protection, labor protection, occupational health andsafety and protection of female employees, ensuring comprehensive protection of employee rights. When faced with majoroperational changes that a?ect the employment of employees (contract changes), the company will fully consider the placementand diversion of employees in advance, formulate special plans, investigate employee’s intentions, and solicit employees’opinions. The ?nalization and publicity of the plan follow the democratic process, and the relevant process data is recorded andarchived.
Collective consultation system
Democratic Management Measures of Times Electric
100 of the company’semployees joined the labor union,
and
100 of collective contracts were signed.
In 2024, the company’s labor union focused on the diverse needs of employees and actively carried out grassroots visits by the unionchairperson. More than 30 activities were held throughout the year, reaching the grassroots and front line to understand employees’ actualneeds, listen to their voices, and collect opinions and suggestions. Through these actions, the labor union e?ectively addressed practicalissues and resolved di?culties for employees, successfully solving their real problems, enhancing their sense of belonging and satisfaction,and building a bridge for communication between the company and employees.
Case: Labor union chairperson paid a visit to grassroots
Times Electric places high importance on employee opinions and feedback by conducting employee satisfaction surveys each year to seek a directunderstanding of employees’ feedback on the work environment and atmosphere. The results of the 2024 survey indicated that the company is an“engagement-oriented organization,” meaning the company provides a working environment conducive to fully utilizing employees’ capabilities andaccomplishing organizational tasks.
Diverse Employee Communication MethodsEmployee Satisfaction Surveys
The Chairman of the Labor Union Visits the Grassroots Level (Manufacturing and After-sales Service Sites)
In 2024
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Times Electric has established smooth communication channels to collect employee opinions and ensure that their opinions are accurately andpromptly conveyed to the relevant departments. The company has developed a Management Measures for Public Opinion Communication to createa system for submitting, processing, and providing feedback on opinions, ensuring that communication between employees and the companyremains open and enhancing employees' sense of belonging.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Online channel:Employees can access the common public conditions contact comment query page to check for
any existing replies or similar comments before formally submitting their feedback. If there are no similar opinionsfound, they can proceed to submit their feedback through the public conditions contact information platform.O?ine channels:Opinions gathered primarily from employee seminars, democratic life meetings, onlinediscussions, and other avenues are managed by the Party and Mass Work Department and relevant departments,and then input into the civil sentiment contact system in a uni?ed manner by designated personnel.Opinionsubmission
The situation is handled on a case-by-case basis, depending on the level of the opinion:
Opinions at the department level:
Opinions at the department level are reviewed by the department’s partyorganization and assigned to the responsible department for a response. The results are then summarized andsubmitted to the party organization. Where the department cannot provide a response, the opinion is submittedto the Party and Mass Work Department.Opinions at the company level:Opinions at the company level are reviewed by the Party and Mass WorkDepartment and assigned to the company’s functional department for a response. The results are submitted tothe company’s party secretary for con?rmation. Where the department cannot provide a response, the opinion isforwarded to the relevant department for unit-level processing.Opinionprocessing
Based on the level of feedback, the heads of party organizations in each department and the secretaries of compa-ny units review and con?rm the responses, and then provide feedback to the authors of the feedback, whocon?rm and evaluate the satisfaction level. Finally the information is automatically archived in the public conditioncontact information platform for closed-loop management.
Opinionfeedback
Employee Feedback and ComplaintsCare for Employees
Times Electric focuses on the physical and mental health of employees and their work happiness. It implements diversi?ed humanistic care, organizesenriching activities, and provides comprehensive care and support to help employees achieve a balance between work and life.
The company is committed to creating a regular care platform and continuously innovating diversi?ed support platforms. In 2024, the companycomprehensively implemented employee care policies through various initiatives, improving employees’ sense of belonging, happiness, and thecompany’s cohesiveness.
Care for EmployeesThoughtful Assistance and Care
Public Opinion Communication System for Submission, Processing, and Feedback
By implementing measures such as the “provision of warmth in winter, cooling in summer, and assistance in di?cult times,” togetherwith careful visits, investigations, and timely reporting, the labor union established assistance ?les for precise help, ensuring that “bothhousehold income and support conditions are clearly understood”, and expanding the scope of assistance. The as nce work covers allaspects, from daily illness visits to “Golden Autumn Education Assistance” and major illness assistance, meticulously caring for everygroup and providing a solid “shelter” for employees in need.
Targeted assistance
The labor union invites hospital experts to hold specialist lectures and provide home visits for over 3,000 employees, encouraging themto enhance their awareness of physical self-care.
Enhance physical care for employees
The company o?ers “Happy Cloud Classrooms,” providing courses on parenting education, stress management, marital relationships,etc., to enhance employees’ problem-solving skills and internal strength.A “Mood and Stress Management” survey was conducted, and family team counseling and fun activities such as “complaint sessions”were organized to help employees relieve stress and enhance their enthusiasm for work and life.
Focus on employee mental health
Employee Care Measures of Times Electric in 2024The live broadcast of the "Cloud Classroom" of Times Electric
Free Medical Consultation Activity of the Health Carnival
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key performance
Provided assistance to389 employees facing illness or ?nancial di?culties
amounting to RMB
140,000
Conducted summer and winter relief e?orts bene?ting12,000 employee instances
amounting to RMB
3.85 million
Provided holiday relief to over24,000 employees
amounting to RMB
4.67 million
Distributed care funds totaling RMB
870,000 to overseas employees and front line sta? on duty during the Spring Festival, as well as their familiesProvided heatstroke prevention materials and equipmentfor employees working in high-temperature environments,amounting to RMB
1.7 million
The total welfare fund exceededRMB10 million
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Times Electric Carried out a Series of Relief Activities
Times Electric encourages employees to balance work and personal life by organizing various engaging activities and inviting their families toparticipate, creating a workplace environment that fosters security and happiness. The labor union has established the “Happy Home Club,” and theYouth League Committee has launched the “Trend Circle,” o?ering over 100 events to promote a culture of motivation and teamwork, inspiringemployees to approach both work and life with greater enthusiasm and determination.
The company established the “Joyful Mind & Active Life” reading club to regularly host reading events for employees. By curating high-quali-ty books and encouraging knowledge-sharing, the initiative broadens employees’ perspectives, enriches their intellectual pursuits, fostersa sense of cultural cohesion, and inspires ambition among employees and cultivates a positive and uplifting corporate culture.
The Reading Sharing Session of Times Electric
Case: “Joyful Mind & Active Life” reading club
The company o?ers “8-hour+ Club” courses and, following a dual approach of inclusivity and competition, organizes various cultural andsports activities through its sports clubs and arts groups, enhancing employees’ leisure experiences. Additionally, the company hasestablished a “Talent Pool” for cultural and sports talents, allocating resources to develop brand events and “cozy living spaces,” e?ectivelyattracting more enthusiasts to actively participate.
Employee Club Activities
Case: Diverse employee activities
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key performance
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Times Electric knows well that human resources are the key to sustainable competitiveness. Upholding the core value of “putting value creators ?rst,”the company provides a platform for employees to realize their potential, advance their careers, and achieve professional success. The companyenhances its talent attraction and recruitment strategies through complete compensation and bene?t policies, diverse promotion pathways, andstructured training systems, o?ering comprehensive career development support to foster mutual growth between employees and the company.
Talent Attraction and Development
Based on its strategic positioning, business expansion, and current talent structure, Times Electric employs a scienti?c approach to forecast talentneeds. The company makes relentless e?orts to expand talent introduction through internal referrals, internal job postings, social recruitment, andcampus recruitment. Additionally, it adopts innovative hiring strategies for experienced professionals and international talents, ensuring a robusttalent pipeline to support key business developments. In 2024, Times Electric hired 1,015 new employees.
Internal referralEstablish an internalrecommendation platformand improve it regularly.
Internal recruitmentAdhere to the principle of“monthly internal recruit-ment announcements.”
Social recruitment
Meet the social recruitmentneeds of employersthrough multiple channels.
Campus recruitment
Implement the districtproject manager systemunder the uni?ed principle.
Talent Recruitment Channels at Times Electric
Hired458 master’s degree graduates
and
8 PhD graduates throughcampus recruitment
Recruited
48 master’s degree holders
with over 3 years of work experience
The company introduced summer parent-child classes, providing employees with new ways to accompany their children. The companyalso hosted the “Guarding Innocence, Moving Forward Together” event for families of employees frequently on business trips, demon-strating care for employees’ families and reinforcing the support for employees on the home front.
Case: Parent-child activities
Parent-Child Activities at Times Electric
Total number of recruitment 1,015, including
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
In 2024, Times Electric was granted the “2024 Best Employer Brand Talent Attraction Award”by Risfond Talent Technology Group and the “China Preferred Employer of the Year 2024”award from Zhaopin, fully showcasing the company’s outstanding achievements in employ-er branding and talent attraction.
Times Electric Won the Best Employer Award
Times Electric knows well that a well-structured compensation and bene?ts system can help attract and retain top talents. In compliance with nationaland regional laws and regulations, the company provides statutory bene?ts, including basic pension insurance, basic medical insurance (includingcritical illness mutual aid), work-related injury insurance, maternity insurance, unemployment insurance, and housing provident funds. Additionally,the company o?ers non-supplementary bene?ts such as corporate annuities, additional medical insurance, meal subsidies, summer and winterallowances, health allowances, medical checkups, wellness programs, mutual aid funds, and commercial insurance. In addition to enjoying weekends,statutory holidays, marriage and funeral leave, maternity leave, and other types of leave, employees are also entitled to annual paid leave inaccordance with the national Regulations on Paid Annual Leave for Employees and the Measures for the Implementation of Paid Annual Leave forEnterprise Employees.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Five insurance policies (pension, medical,work injury, maternity, unemployment)
Housing provident fundPublic holidays and statutory holidaysAnnual leave, family leave, etc.
Corporate pension
Lunch subsidyprotection supplies, healthWorkwear, uniformsPhysical examination,
health careTransportation,communication
Shuttle busesCommercial insurance
Mutual aid
National statutory bene?tsCompany-speci?c bene?tsRecognition & appreciation
Work-life balanceOrganizational cultureCareer developmentWork environment
Comprehensive remuneration
Monetary remuneration
SalaryBene?ts
Non-monetary remuneration
Work experience
Talent Remuneration and Bene?ts System of Times Electric
Guided by its core value of “putting value creators ?rst and sharing success with every employee,” Times Electric continuously re?nes its compensationmanagement system to provide multi-tiered bene?ts, and is committed to enhancing salary competitiveness for key personnel while ensuring a fairinternal income distribution relation.
The company promotes an overallcompensation concept that encompass-es bene?ts, as well as non-monetaryrewards such as honors and careerdevelopment opportunities, into itscompensation system. This approachensures employees have a comprehen-sive good understanding of the rewardsprovided by the company, helping toattract and retain talents.
Overall compensation
The company has established a compre-hensive incentive system, includingrewards for appointment of majorresearch projects, special technologicalachievements, quality improvementinitiatives, and function managementenhancement programs. Additionally,core talent stipends and young scienti?ctalent allowances are set up to motivateemployees holistically.
Multiple incentives
The company implements aposition-based performance salarysystem, establishing a compensationdistribution system where salary levelsare determined by job grades, bonusesby performance, bene?ts by hierarchi-cal levels, and allowances by job roles.Depending on the job level category,performance-based compensationaccounts for 20% to 50% of an employ-ee’s total salary, with 100% coverageacross all employees.
Tiered incentive
The remuneration system follows theprinciples of "position grade-based salarygrade, performance-based bonuses,organizational level-based bene?ts, androle-based allowances."
For all employeesThe term-based incentive model linksannual remuneration and tenureincentives to responsibilities, organiza-tional performance, and individualperformance.
For professional managers
Times Electric Tiered Employee Incentive Mechanism
In 2024, Times Semiconductor, the Company's holding subsidiary, introduced strategic investors and employee shareholding platform forthe capital increase, and 80 core and backbone employees in technology and management participated in the capital increase through theemployee shareholding platform, Zhuzhou Core Development Zero Enterprise Management Partnership (Limited Partnership), at the sametime as the price of capital increase by the 26 strategic investors, with an amount of approximately RMB 98.8 million; as at the end of thereporting period, a total of 344 persons had participated in Times Semiconductor's employee shareholding platforms “Zhuzhou CoreConnection Zero Enterprise Management Partnership (Limited Partnership)” and “Zhuzhou Core Development Zero Enterprise Manage-ment Partnership (Limited Partnership)”.
Case: Employee stock ownership incentive of Times Electric Subsidiary
Manager annual salary systemPerformance-based salary systemintroduction agreement-based
salary systemNew college graduate preferential
policySpecial allowances & rewards
Case: Times Electric won the “Best Employer” award in 2024
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Times Electric Career Development System and Pathways
Five Career Development PathwaysBusinessManagement Path
SpecializedManagement Path
Marketing &Trade
Path
Engineering &Technology Path
Master CraftsmanPath
Times Electric has established a multidimensional “bridge-like” career development system, committed to providing employees with a fair andequitable promotion path. The company has formulated management policies such as the Career Development Channel and Grade ManagementMeasures and the Hierarchy Development System, creating a dual-track promotion mechanism that integrates both managerial and professionalcareer paths. The goal is to empower employees to achieve career growth across di?erent ?elds.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Head – Decision-Making
De?ne core values and transform theminto driving forces.
Hands - Strategic Execu-tion
Develop competencies andskills to excel across multipledomains.Feet - FoundationalGrowthBuild knowledge and expertise,advancing step by step.Shoulders - ComprehensiveEvaluationTake on responsibilities, assessperformance, and cultivate aresults-driven mindset.
Career Development System and Channels of Times Electric
Dual-Channel Promotion Mechanism for Career Development at Times Electric
The company has established a well-de?ned career development system, categorizing employee career levels into 7 tiers, which are linked to bene?ts,and job positions into 9 grades based on the complexity and signi?cance of job responsibilities, which are tied to salary. To optimize talent manage-ment mechanism, the company has designed di?erentiated assessment and evaluation systems for various career development channels. Througha scienti?c evaluation mechanism, the company fully explores employee potential, ensuring an organic alignment between individual career growthand corporate development goals.
| Promotion and Incentives | Training and Development |
Adhering to the talent philosophy of “value-driven, innovation-led, maximizing potential, and optimizing talent utilization,” Times Electric has built acomprehensive employee development system. The company has formulated a series of management regulations, including the Training SystemManagement Measures, Employee Education and Training Fund Management Measures, Internal Training Course Management Measures, andInternal Trainer Management Measures, providing a solid institutional foundation for training initiatives.Each year, the company conducts a bottom-up survey to assess training needs and formulates a multi-tiered training plan based on the ?ndings,covering all levels from departments to the corporate level. The training system integrates academic resources while catering to business needs,advancing training initiatives along three key dimensions: strategic alignment, business empowerment, and talent pipeline development.
Conduct comprehensive trainingneeds survey in the whole compa-ny at the beginning of the year
Grasp the demand accurately
Develop training plan according totraining demand survey dataScienti?c planning
Internal and external instructorscarry out internal training + externaltraining +outsourced trainingMultiple forms of training
Following a classi?ed, tiered, and categorized approach, the company organizes training programs focusing on strategic alignment, business empow-erment, and talent pipeline development. It upholds an integrated approach of training, assessment, and practical application, systematically advanc-ing training programs across 8 key business domains, including R&D, marketing, ?nance, quality, manufacturing, and after-sales service. The companyfocuses on talent development and the building of its talent pool. In 2024, the company o?ered more than 100 internal training courses anddeveloped and utilized teaching resources to maximize the value of training and talent resources.Leveraging the Times College, the company has established a corporate-speci?c training system, o?ering employees comprehensive and diversetraining programs.
Employee Development Plan Process of Times Electric
Employee Training System of Times Electric
Various talent development channelshave been established based on job roles,target groups, and business lines throughlectures, development camps, trainingcourses, and forums for comprehensivetraining and empowerment.
Horizontal training system
Hierarchical system from the inductiontraining of new employees focusing oncultural integration, to the professionaltraining of daily work, to the leadershiptraining of management talents afterpromotion, to key training projects.
Vertical training systemManagementTrackLeaderManagerSupervisor
ExpertSenior SpecialistKey Contributor
Professional
Track
Skilled PractitionerBeginner
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key performance
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Cultural course optimization
Cultural integration-focused new employee training
High-level leadershipMid-level leadershipPrimary-level leadership
Culture & valuesinheritance
Leadership developmentStrategic execution
Strategy decoding &goalmanagement
Strategic Execution Training System
Business Empowerment Training System
Capability Building Training System
External training programsCustomized programs for external clientsand supply chain partnersDEB energy industry talent collaborationDCB automotive industrytalent collaborationFunctional management comprehensive capability
enhancement
Project manager cultivationMarketing talent development path designTechnical talent development path design
BusinessEmpowerment
Course center
Case centerExam centerOnline learning platform development & optimization
(Virtual) lecturer club developmentManager empowerment by internal learning
Knowledge retention &management transfer
Resource development &platform constructionCapability Building
Key training programs in 2024
Pre-tender guided marketing capability enhancement
program under the leap programPerformance management empowermentFinancial capability enhancementLeadership cultivation program for ?rst-term cadres
New employee training
Product competitiveness enhancement training andbattle program under the leap programIncremental performance management workshop
Supply chain capability enhancementThe leadership training program for technical
backbones of the New Shaou program
Quality ality lighthprogram
Key Training Programs of Times Electric in 2024
Invested RMB
15.4914 million in total for employee training
Achieved
100 % employee training coverage
Launched over
10 key talent development programs
Conducted over
2,000 internal and external training sessions
The company actively encourages employees to enhance their professional qualities, strengthen their professional expertise, and increase theircompetitiveness for personal growth. Through joint training programs with CRRC Group and some domestic universities, outstanding technicalbackbones are selected to participate, elevating their professional knowledge and skills. Employees who complete the programs can receive academiccerti?cations from partner universities, providing strong support for their career advancement. These initiatives create an optimal environment foremployee development while supplying the company with the talent necessary for innovation and high-quality growth.To comprehensively support employee skill enhancement and career progression, the company collaborates with grassroots unions and youthorganizations to organize over 22 thematic labor and skills competitions aligned with major corporate strategies, key projects and industries. Simulta-neously, the company actively promotes the establishment of model worker studios and youth task forces, empowering skilled talent growth anddriving corporate development.
International business strategy co-development
workshop(as needed)
Integration of cultural courses into various training
programs
Automotive industry strategy co-development workshop
(as needed)
Business expansion &customer empowermentIndustrial cluster talent
collaboration
Empowerment for key
positions and key
personnel
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
The company’s labor union has established a systematic talent development mechanism using the model worker studios as a platform,including skill competitions to enhance practical training, a mentor-apprentice pairing program to facilitate knowledge transfer, and a“train-and-guide” system to support employee growth. This mechanism has e?ectively strengthened the talent pipeline, yielding remark-able results: two employees won ?rst place in the Hunan Provincial Information Security and Arti?cial Intelligence Competition, threeemployees were awarded the “municipal craftsman” title, and several innovation projects received municipal innovation achievementawards, providing strong talent support for the company’s high-quality development.
Empower Employee Growth Through Collective Innovation
Times Electric upholds the national safety production principles of “safety ?rst, prevention-oriented, and comprehensive management,” optimizingthe safety and environmental protection management responsibility system. The company is committed to minimizing employee health risks, activelypromoting a culture of safety, and creating a healthy and safe working environment.
Occupational Health and Safety
Times Electric strictly complies with the Law of the People’s Republic of China on Production Safety, the Law of the People’s Republic of China on thePrevention and Treatment of Occupational Diseases, the Law of the People’s Republic of China on Emergency Responses, and other laws andregulations, and has developed a range of management policies for all employees in alignment with ISO 45001 Occupational Health and SafetyManagement System standards, including: Times Electric EHS Management Manual, Times Electric EHS Inspection Management Measures, Occupa-tional Disease Hazard Prevention and Control Responsibility System, Occupational Disease Hazard Warning and Noti?cation System. Supported bystandardized safety production regulations for the machinery manufacturing industry, the company has optimized the safety production manage-ment system to support the smooth operation of its business activities.Times Electric continuously improves its occupational health and safety governance framework. At the board level, the strategy and ESG Committeeis set up to be responsible for formulating and overseeing the company’s overall occupational health and safety strategy. At the execution level, thecompany has established the Safety Management Committee Leading Group to coordinate occupational health and safety a?airs. The leading groupmanages the Safety Management Committee Working Group and the Safety Production Standardization Professional Group, which are responsiblefor speci?c management and implementation tasks, respectively, ensuring the e?ective execution of occupational health and safety management.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Responsible for implementing various laws and regulations, optimizing the safety and environmental protection responsibility system,formulating the company’s safety and environmental protection plans and annual work plans, presiding over Safety Management Commit-tee meetings, and organizing safety and environmental protection inspections, awareness campaigns, and accident investigations.
Safety Management Committee
Leading Group
Responsible for revising and improving safety and environmental protection management regulations, organizing the identi?cation andcontrol of hazardous sources and environmental factors, developing a safety risk classi?cation and control list, organizing internal andexternal audits and management reviews of the EHS management system, conducting hazard identi?cation and recti?cation, establishingan emergency response system, and investigating and holding parties accountable for production safety accidents.
Safety Management Committee
Working Group
Responsible for organizing company-level safety production standardization inspections and self-evaluations, providing recti?cationrecommendations, participating in cross-audits, conducting training and knowledge-sharing sessions, and enhancing professionalknowledge and management capabilities of safety personnel.
Safety Production Standardization Professional Group
Basic ManagementDiscipline
Thermal ExplosionDiscipline
Electric DisciplineMechanical Discipline
Work Environment &Occupational HealthDiscipline
Safety Management Organizational Structure of Times Electric
Case: Empowering employee growth through collective innovation
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
To achieve its occupational health and safety objectives, Times Electric has formulated and implemented improvement initiatives to ensure theattainment of safety goals by optimizing management processes, strengthening safety actions, and continuously enhancing its intrinsic safetymanagement level.
Improve various safety management regulations for hazardous work;Improve risk identi?cation and control records for hazardous work; and re?ne inspection andapproval forms;Evaluate existing labor protection equipment and emergency supplies, and standardize compa-ny-wide equipment criteria;Conduct emergency drills for each type of hazardous work every six months.Hazardous work safetymanagement
Development of leansafety workstations
Establish a lean workstation management model centered on “one board, two ledgers,and three forms,” featuring scienti?c hazard identi?cation, visualized safety mapping,standardized spot check criteria, routine hazard identi?cation, and clearly de?nedmanagement protocols.
Special equipmentsafety management
Strengthen the inspection and management of safety protection devices;Improve the safety management mechanism for special equipment by implementing the“Three Implementations,” “Two Certi?cates,” “One Inspection,” and “One EmergencyResponse Plan” approach.Promote intelligent on-site system monitoring.
Development of processsafety system
Establish and improve risk identi?cation and control strategies throughout the processdevelopment cycle, and embed these strategies into speci?c processes and forms withinthe work?ow.
Enhancement of Intrinsic Safety
Times Electric has established a regular safety hazard inspection mechanism and formulated the EHS Inspection Management Measures. This year,the company updated the Safety Risk Map, mandating that the primary responsible person of each unit personally lead safety inspections, maintain-ing records and photographic documents. Additionally, special inspections were conducted for key units such as the Manufacturing Center, Testingand Inspection Center, and Semiconductor Company, identifying 14 safety hazards, all of which were recti?ed, achieving a 100% closure rate.
Enhancement of Intrinsic SafetySafety Hazard Inspection
The company implements a multi-tiered safety meeting system. The Safety Management Committee convenes quarterly to implement the safety andenvironmental protection requirements of the state and superior departments, report on progress, and plan key initiatives. For major matters,temporary meetings can be held at any time. Monthly production meetings integrate safety work according to the “Five Simultaneous” principle, whileadditional safety production work meetings are convened as needed to summarize progress and address challenges, ensuring the e?ectiveimplementation of safety and environmental protection measures.Additionally, the company has established a performance evaluation mechanism linking health and safety management to executive compensation,setting up key performance indicators such as safety, environmental protection and occupational health accidents, direct economic losses, occupa-tional diseases, and minor injuries to de?ne management standards. Where actual performance exceeds set targets, assessments shall be conductedaccording to the compensation and performance system, ensuring e?ective health and safety management and accountability.
Safety Hazard InspectionStrategy
Times Electric actively integrates high-quality development with high-level safety, implementing multiple measures to enhance intrinsic safety. Thecompany conducts in-depth safety hazard inspections, rigorously advances health and safety management for employees and suppliers, and continu-ously strengthens safety culture education and awareness. In 2024, the company invested RMB 49.36 million in safety production to ensure steadyprogress in workplace safety management.
Times Electric prioritizes enhancing its occupational health and safety management capabilities and actively promotes occupational health and safetymanagement system certi?cation. In 2024, the company obtained the latest ISO 45001 Occupational Health and Safety Management System Certi?ca-tion (UKAS + CNAS). All its manufacturing subsidiaries have also obtained ISO 45001 certi?cation.
StrategyOccupational Health and Safety System Certi?cation
Times Electric has implemented a series of key occupational health and safety (OHS) initiatives, covering areas such as improvement of safety manage-ment, improvement of stakeholder safety management improvement, optimization of occupational disease management, and advancement of safetyinspection initiatives. These measures aim to comprehensively elevate environmental, health, and safety (EHS) management standards, ensureemployee health and safety, and establish a solid foundation for the company’s long-term and stable development.
Occupational Health and Safety System Certi?cationOccupational Health and Safety Management
ISO 45001 Occupational Health and Safety Management System Certi?cation
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key performance
From July 25 to 26, 2024, the company conducted “Fire SafetyKnowledge” training at Times College for all ?re safety managementpersonnel, aiming to enhance ?re safety awareness, improve self-res-cue and mutual aid skills, and strengthen emergency response capabili-ties among employees and relevant service personnel.
“Fire Safety Knowledge” Training
Case: “Fire Safety Knowledge” training
To thoroughly implement the safety production policy of “safety ?rst, prevention-oriented, and comprehensive management,” TimesElectric launched the 2024 “Safety Production Month” campaign with the theme “Everyone Talks Safety, Everyone Knows EmergencyResponse – Ensuring Smooth Safe Escape Routes.” During the campaign, the company meticulously organized a variety of safety cultureactivities, including quiz competitions, comic submissions, and safety promotions. These activities enabled employees to learn safetyknowledge through participation and improve their emergency response skills through practice, further fostering a culture where“everyone cares about safety, and safety concerns everyone”.
Case: “Safety Production Month” Campaign of Times Electric
Quali?cation review
Ensures that all engineering contractors meet relevantregulations.
Pre-job trainingConduct comprehensive safety training and assess-ments for external construction personnel to ensurethey fully understand safety procedures.
Clear responsibility de?nitionClearly de?ne safety requirements and the respectivesafety responsibilities of both parties before contrac-tors enter the site.
Full-process supervisionImplement ongoing safety supervision throughout theconstruction process to promptly identify and rectifyany safety hazards posed by contractors.
“Safety Production Month” Campaign
To enhance employees’ awareness of health and safety, Times Electric actively conducts a series of health and safety-related publicity, training, anddrills, striving to foster a strong safety culture and establish a solid foundation for the company’s stable development.
Times Electric attaches great importance to employee safety training and promotes safety education through various forms. The company mandatesthat on the ?rst working day of each year, all departments shall organize an “Opening Safety Lesson” for on-site personnel to instill safety awarenessfrom the very beginning of the year. Additionally, the company organizes an annual “Safety Production Month” campaign, encouraging employees toactively participate in safety culture development.
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Safety TrainingOccupational Health and Safety Culture Development
Times Electric places great emphasis on the safety management of contractors and other suppliers, It has implemented and implemented theStakeholder Safety Management Guidelines of Times Electric that cover all contractors. Through a series of closed-loop management processes, thecompany e?ectively mitigates supplier-related safety risks.
Occupational Health and Safety Culture DevelopmentSupplier Safety Management
The company strictly follows the Employee Medical Examination Management Measures, organizing regular health check-ups for all employees.Special attention is given to positions with occupational disease risks, achieving a 100% occupational health examination rate for 1,200 relevantpositions. Employees identi?ed with occupational contraindications have been fully reassigned. Moreover, occupational hazard factor detection hasreached a 100% compliance rate, and the company has successfully completed occupational hazard reporting, obtaining the o?cial receipt from theNational Health Commission. Additionally, 100% of employees are covered by work-related injury insurance and workplace safety liability insurance,ensuring comprehensive protection of employee health and safety.
Supplier Safety ManagementEmployee Occupational Health Management
Conducted an overall hazard identi?cation and recti?cationincentive program, successfully addressing
3,525 safety hazards
Conducted an incentive program for safetytechnical improvement, completing168 safety technical improvement projectsConducted behavior-based safety observationactivities for department heads, with324 participant instances
Held a quarterly safety star selection program, recognizing
52 company-level safety stars
Allocated over RMB
200,000 in safety incentives
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key performance
To achieve the goal of “early suppression, minor accident containment, three-minute response, and coordinated and e?ective emergencyhandling,” the company organizes quarterly emergency skills training sessions for micro ?re station members to enhance their professionalemergency response capabilities.
Emergency Skills Training for Micro Fire Station Members
Case: Emergency skills training for micro ?re station members
Times Electric conducted occupational healthand safety training sessions, with a total of16,623 participant instances
and an accumulated training duration of133,000 hours
In 2024, Times Electric further optimized its safety emergency management policy system and conducted emergency drills across its subsidiaries tohelp employees enhance their emergency response capabilities.
On October 23, 2024, Times Electric conducted a con?ned space operationemergency drill, simulating an emergency response to a worker faintingduring a sewage valve replacement operation. The drill was well-coordinat-ed, verifying the scienti?c and practical aspects of the emergency responseplan. It e?ectively improved employees’ emergency handling skills andprovided strong support for con?ned space operation safety management.
Con?ned Space On-Site Emergency Response Drill
Case: Con?ned space on-site emergency response drill
Times Electric prioritizes employees’ occupational health and annually engages external institutions to provide occupational health education andtraining.
Safety Emergency DrillsOccupational Health
In 2024, to enhance employees’ health awareness and self-care abilities, the company organized a “Cherish Life, Care for Health” ?rst aidand health lecture. The event featured experts from the Hunan Health Education Center, covering topics such as: ?rst aid techniques(including cardiopulmonary resuscitation, AED usage, and airway obstruction removal) and prevention and treatment of common occupa-tional diseases (such as pneumoconiosis, occupational poisoning, and noise-induced hearing loss), aiming to improve employees’ healthliteracy, promote ?rst aid knowledge, ensure e?ective self-rescue and mutual aid in emergencies, and help employees better understandtheir health conditions and adopt e?ective protective measures.
Case: “Cherish Life, Care for Health” ?rst aid & health lecture
“Cherish Life, Care for Health” First Aid & Health Lecture
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Occupational HealthImpact, Risk, and Opportunity Management
Times Electric has developed a dual prevention mechanism integrating risk hierarchical control and hazard investigation & recti?cation, andestablished a comprehensive risk management process to identify and assess safety risks, conduct regular hazard investigation and governance, andensure risk control and closed-loop hazard management.For new, modi?ed, and expanded construction projects, Times Electric ensures a 100% implementation rate of the “Three Simultaneous” policy(simultaneous design, construction, and operation) to control safety risks at the source. For existing projects, we conduct comprehensive safety riskidenti?cation and scienti?c risk grading, applying organizational, institutional, technical, and emergency measures to e?ectively manage identi?edrisks and communicate safety hazards. For signi?cant safety risks within each production unit, we have developed illustrated inspection standardreference tables, specifying hazard sources and exact locations, potential consequences, inspection areas, items, and standards, responsible depart-ments and personnel. This approach ensures the completeness and accuracy of risk identi?cation and assessment.
Impact, Risk, and Opportunity ManagementRisk Identi?cation and Assessment
The company regularly conducts hazard investigations and recti?cations to enhance its hazard management system, achieving a layered defense,proactive prevention, and source control. By developing detailed inspection standard reference tables, we have clearly de?ned the risk points andinspection requirements for each production unit, ensuring the continuity and e?ectiveness of risk monitoring. The responsible departments andpersonnel conduct regular hazard investigations, promptly identifying and addressing potential risks to maintain a dynamic and timely risk manage-ment process. Through these measures, we have achieved comprehensive monitoring and e?ective control of safety risks, ensuring a safe and stableproduction environment.
Risk Identi?cation and AssessmentRisk Monitoring and Control
In 2024
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Adhering to the EHS management philosophy of “people-oriented, continuous improvement, green and environmental protection, and health&safe-ty,” Times Electric has systematically established occupational health and safety goals to create a safe, healthy, and sustainable work environment.
Overall target
Achieve zero fatalities, severe injuries due to production safety accidents and new occupational disease casesControl the annual minor injury rate of production safety accidents within 0.75‰Achieve zero safety hazards and environmental risks in relation to major production safety accidents
EHS system target
Continuously carry out ISO 45001 Occupational Health and Safety Management System and ISO 14001 Environ-mental Management System certi?cation and audit work to ensure the e?ective operation of the EHS system
Safetyproductionstandardization
target
The company headquarters is expected to obtain the Level 1 Safety Production Standardization Certi?cation for EnterprisesO?site production units are expected to obtain the Level 2 Safety Production Standardization Certi?cation for EnterprisesThe Qingdao Maintenance Branch of the After-Sales Service Center is expected to obtain the Level 3 Safety ProductionStandardization Certi?cation for Enterprises
Dual preventionmechanism target
Establish a safety risk hierarchical control and hazard investigation & recti?cation dual prevention mechanism for thecompanyEnsure that all production units establish, improve, and implement hazardous source control lists and inspectionstandard reference tables for major risksConduct regular hazard investigation and recti?cation
Safety culturedevelopment
target
The company headquarters is expected to obtain the Safety Culture Certi?cation for Model Enterprises in Hunan ProvinceNingbo Times and Baoji Times are expected to obtain the provincial-level Safety Culture Certi?cation for Model EnterprisesEach unit is expected to publish at least 1 promotional report in relation to safety production each year to promote TimesElectric’s safety culture
Occupational
healthmanagement
target
100% occupational hazard reporting rate100% implementation rate of the “Three Simultaneous”for occupational health100% integrity rate of occupational hazard controlfacilities; 100% occupational health training rate
100% participation rate in work-related injuryinsurance100% pre-job, on-the-job, and post-employmentoccupational health examination rateOver 95% compliance rate of occupational hazardfactor inspection
| Indicators and Hargets | Occupational Health and Safety Indicators | |
Safety production performance
Unit2024IndicatorCasesDaysPersonsPersonsCases per Million Hours WorkedPersons per Million Hours WorkedCases per Two Hundred Thousand
Hours Worked%
Number of work-related accidentsLost workdays due to work-related injuriesNumber of injured employees
Number of fatalitiesLost time injury frequency rate (LTIFR)
Total recordable incident rate (TRIR)Lost Time Injury Rate (LTIR)
Employee fatality rate
0.054
0.054
0.27
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.Occupational Health and Safety Targets
Safety Production Performance of Times Electric
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
Key performance
Adhering to the philosophy of “team-oriented, individual-supported, serving the enterprise, and bene?ting society,” Times Electric actively participatesin public welfare and charity activities, ful?lling its social responsibilities through diverse initiatives. In 2024, leveraging the “Youth Volunteer ServiceDay” as an opportunity, the company institutionalized volunteer service e?orts. It organized multiple study sessions on the spirit of Lei Feng andconducted a series of practical activities, including free medical consultations, public welfare tree planting, and voluntary blood donation. Theseinitiatives not only conveyed the company’s values but also enhanced employees’ sense of social responsibility, demonstrating the company’s activerole in public welfare.
Social Contribution
Free Medical Consultation and Donation activitiesCharity Material Donation Activities
2024 marks the 30th anniversary of China’s targeted assistance program for Tibet. Inalignment with the Party Committee’s directives on Tibet aid, the Youth League Committee ofTimes Electric collaborated with the Youth League Committees of Ngagzha County, Shannan,Tibet, and Zhuzhou City to launch the “Love Across Mountains and Seas – Spreading the Seedsof Volunteerism” Tibet Aid Program. Through initiatives such as the “Love Blind Box” charitysale and donation of essential supplies, the program mobilized social resources to supportAzar Complete Primary School in Ngagzha County, Shannan. Donations included a YoungPioneers’ room, industrial and cultural knowledge walls, and educational supplies. Thesee?orts not only introduced local students to the company’s culture and values but alsoeducated them on science and technology industries, fostering scienti?c literacy and innova-tion skills among the youth, and e?ectively advancing the company’s Tibet aid initiatives andbene?ting Tibetan youth.
“Love Blind Box” Tibet Aid Program
Invested RMB100,000 in public welfare activities
with a total of
350 participant instancesOrganized
20 volunteer service events
with
500 participants
contributing
485 hours
Times Electric actively responds to the national rural revitalization strategy, upholding corporate social responsibility to foster mutual prosperitybetween enterprises and society. In 2024, the company focused on comprehensively promoting rural revitalization and actively participated in theselection and deployment of village assistance teams. Through concrete actions, it contributed to the implementation of the strategy. The companyinvested RMB 150,200 in rural revitalization, supporting key areas such as rural transportation infrastructure construction and industrial developmentthrough consumption-driven assistance, thereby providing strong support for comprehensive rural revitalization.
Support for Rural Revitalization
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
In 2024, Times Electric actively responded to the national rural revitalization strategy by supporting consumption-driven assistanceinitiatives. The company procured agricultural products such as Shibadong water and fruits to promote local industrial development andincreases in farmers’ income. In 2024, Times Electric invested RMB 130,200 in consumption-driven assistance, making a positive contribu-tion to rural revitalization.
2024 marked the ?rst anniversary of the opening of the Lijiang–Shangri-La Railway. Times Electric supplied core equipment for the railway’soperational trains, including integrated main and auxiliary power converters, network control systems, on-board power distributioncabinets, information products, and passenger train three-phase inverters, ensuring the safe and e?cient operation of trains in complexenvironments.The Lijiang–Shangri-La Railway connects popular tourist destinations such as Lijiang and Shangri-La, signi?cantly boosting the local tourismeconomy. It also facilitates the transportation of regional specialty agricultural products, promoting industrial upgrades. By enhancingtransportation accessibility and logistics e?ciency, the Lijiang–Shangri-La Railway has become a key driver of regional coordinated develop-ment in northwestern Yunnan and an important pillar of rural revitalization.
Opening of the Lijiang–Shangri-La Railway
Case: "Love Across Mountains and Seas – Spreading the Seeds of Volunteerism" Tibet AIDProgram
Case: Agricultural product consumption assistance
Case: Supporting the opening of the Lijiang–Shangri-La railway and empowering thedevelopment of the northwestern Yunnan
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Appendix
MaleFemale51 and above41 - 5031 - 4030 and belowTotal number of grassroots employeesTotal number of employees at middle managementNumber of female employees in middle managementTotal number of employees in senior managementNumber of female employees in senior management
Master’s degree and aboveBachelor’s degreeJunior college and specialized schoolsDomestic employeesOverseas EmployeesProduction sta?
Sales sta?Technical sta? · R&D sta?
Financial sta?
Others
ESG Key Performance Table
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Unit202420232022Indicator
7,9946,2171,777
1,4674,3991,6087,233
1,6734,8861,435
//1,371
4,7632,822
/1,024
PersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersons
8,3626,5811,781
1,6774,3351,8217,571
1,9675,0691,326
//1,502
4,8413,180
1,375
10,010*
7,5491,849
1,9474,3492,5398,663
2,828*5,611*1,571*9,398*612*2,165*566*6,115*4,025*160*1,004*
By gender
By age
By type ofemployment
By education level
By employeediscipline category
By geographic location
Total employees
Environmental performanceSocial performance
Unit202420232022IndicatorMunicipal water purchasesWater consumption intensityPurchased electricityPer capita electricity consumptionNatural gasPer capita natural gas consumptionComprehensive energy consumptionComprehensive energy consumption of10,000 yuan output valueTotal greenhouse gas emissionsScope 1Scope 2Greenhouse gas emission intensityTotal waste gas emissionsTotal wastewater dischargeTotal recyclable wasteTotal non-hazardous wasteTotal hazardous wasteTotal packaging consumables used
10,000 cubic meters10,000 cubic meters/10,000 RMB output value
10,000 kilowatt-hourKilowatt-hour
10,000 cubic metersCubic meters
Tons of standard coalTons of standard coal / 10,000 RMB output valueTons of carbon dioxide equivalentTons of carbon dioxide equivalentTons of carbon dioxide equivalentTons of carbon dioxide equivalent / 10,000 RMB output value
Cubic metersTonsTonsTonsTonsTons
0.0001
17,16821,476
313.99
24,733
0.013
111,66813,36898,300
0.0619
2,929,455,131.95
982,100
610.43
2,743.171,220.247,588.43
0.0001
20,36424,289
293.00
28,507
0.013
131,73815,602116,136
0.0604
3,433,954,766.08
1,287,300
672.15
3,646.801,666.717,445.91
*The scope is Times Electric's consolidated reporting unit, including foreign branches.
0.0001
29,46531,353
370.14
40,839
0.016
170,217.5422,838.63147,378.91
0.0683
3,783,254,746.00
1,286,797
722.79
2,196.742,162.776,832.01
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Social performance
Appendix
Number of departed male employeesNumber of departed female employeesNumber of departed employees aged 51 and aboveNumber of departed employees aged 41-50Number of departed employees aged 31-40Number of departed employees aged below 30Number of male employees trainedNumber of female employees trainedNumber of grassroots employees trainedNumber of middle management employees trainedNumber of senior management employees trained
Total hours of training received by male employeesTotal hours of training received by female employeesTotal hours of training received by grassroots employeesTotal hours of training received by middle management employeesTotal hours of training received by senior management employees
2023Indicator2022
4.10
7,9946,2171,7777,233
303,772
236,24667,526274,85421,8507,068
9,680,000
1,015
Unit
Persons
%PersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsPersonsHoursHoursHoursHoursHoursHoursHours
%RMBCompanies
%
%Companies
3.50
8,3626,5811,7817,571
335,360
263,92071,440303,72024,0807,560
10,480,000
1,170
2024
3.80
9,3987,5491,8498,663
396,116
318,18377,933365,13722,7188,261
15,491,379
1,337
Employee turnover rateBy gender
By age
Total number of employees trained
By gender
By type of employee
By gender
Total hours of employee trainingAverage hours of employee training
By type of employee
Total number of departed employees
Percentage of employees receiving regular performance and career development appraisalsInvestment in vocational trainingTotal number of active suppliersPercentage of suppliers signing up to a supplier code of conductPercentage of suppliers signing clauses that include environmental and labor requirementsTotal number of new suppliers
Number of complaints received about products and servicesComplaints handling rateQuali?cation rate of product samplingNumber of product recallsPercentage of sold or shipped products subject to recall due to safety concernsScope of business covered by quality management system certi?cationCustomer satisfactionR&D investmentAmount of R&D investment and its proportion to main business revenue
Number of working days lost due to work injuryNumber of employees who died as a result ofwork-related deathsNumber of employees inoccupational disease risk positionsNumber of employees attending medicalcheckups for occupational diseasesNumber of employees su?eringfrom occupational diseasesNumber of employees injured at workNumber of work injury-related accidentsNumber of occupational diseasesNumber of work-related fatalitiesNumber of deaths from work-related accidentsMillion man-hours mortality rateFatality rate due to work-related accidentsLost time injury frequency rate (LTIFR)Total recordable incident rate (TRIR)Lost Time Injury Rate (LTIR)Number of people trained in safetyHours of safety trainingSafety training coverage
Indicator2022
1,2001,200
///4,69113,996111,968
/
92.50
18.58
10.25
Unit
DaysPersonsPersonsPersonsPersonsPersonsCasesPersonsCasesPersons%%Cases per million hous workedPersons per million hous workedCases per Two HundredThousand Hours Worked10,000 RMBPersonsHours%Cases%%Cases%%%100 million RMB%
2023
1,1251,125
///4,93914,256114,048
93.10
21.87
9.96
2024
1,2001,200
0.054
0.054
0.27
4,93616,623132,984
93.30
28.42
11.41
Employee health and safety
Safety accidentsand personnel
Total health and safety inputsWork safetytraining performance
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Indicator2022
/
9.09
54.55
45.45
181.26
25.45
5.5
Unit
TimesTimesTimesTimesTimesTimesTimesTimesTimesPersonsPersonsPersons
%Persons%Persons%100 million yuan (RMB)100 million yuan (RMB)Yuan (RMB)
Male directorsFemale directorsPercentage of female independent directors
Independent directorsPercentage of independent directors
Non-independent directorsPercentage of non-independent directors
RevenueNet pro?t attributable to the parent company
Cash dividends per 10 shares
2023
/
219.62
30.41
7.8
2024
14.29
57.14
42.86
249.09
37.03
By gender
By type
Economic indicator
Number of shareholders meetings heldNumber of board of directors’ meetingsNumber of supervisory board meetingsNumber of strategy and ESG committee meetingsNumber of audit committee meetingsNumber of risk control committee meetingsNumber of remuneration committee meetingsNumber of Science, Technology and innovation committee* meetingsNumber of nomination committee meetingsNumber of members of the board of directors
Index of Indicators
Governance performance
GRI Standards Indicator Index
2-1 Organizational details2-2 Entities included in the organization’s sustainability reporting2-3 Reporting period, frequency, and contact point2-6 Activities, value chain, and other business relationships2-7 Employees2-9 Governance structure and composition2-12 Role of the highest governance body in overseeing the management of impacts2-14 Role of the highest governance body in sustainability reporting2-16 Communication of critical concerns2-17 Collective knowledge of the highest governance body2-22 Statement on sustainable development strategy2-27 Compliance with laws and regulations3-1 Process to determine material topics3-2 List of material topics3-3 Management of material topics201-1 Directly generated and distributed economic value201-2 Financial impact and other risks and opportunities due to climate change203-1 Infrastructure investment and services supported205-1 Operations assessed for risks related to corruption205-2 Communication and training about anti-corruption policies and procedures205-3 Con?rmed incidents of corruption and actions taken206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
Disclosure ItemTopic StandardSection
About Times ElectricAbout This ReportAbout This ReportAbout This ReportProtection of Employee Rights and InterestsSustainability (ESG ) ManagementSustainability (ESG ) ManagementSustainability (ESG ) ManagementSustainability (ESG ) ManagementSustainability (ESG ) ManagementSustainability (ESG ) ManagementDeepening Compliance-Driven OperationsSustainability (ESG ) ManagementSustainability (ESG ) ManagementSustainability (ESG ) ManagementESG Key Performance TableResponse to Climate ChangeTheme of 2024Upholding Business EthicsUpholding Business EthicsUpholding Business EthicsUpholding Business Ethics
GRI2:
General Disclosure
GRI 3:
Material TopicsGRI 201:
EconomicPerformanceGRI 203:
IndirectEconomic ImpactsGRI 205:
Anti-CorruptionGRI 206:
Anti-Competitive Behavior
Page
P6P2P2P2P91-116P19P21-22P21-22P21-22P20P20P31-33P22-23P23-36P22-26P119-123P82-86P13-16P40-43P42P40-43P40-43
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
*The Board's Science, Technology and Innovation Committee was established on October 26, 2023
Times Electric has prepared this Report with reference to the Global Reporting Initiative (GRI) standards for the reporting period January 1, 2024 toDecember 31, 2024.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
GRI Standards Indicator IndexAppendix
306-5 Waste directed to disposal308-1 New suppliers screened using environmental criteria308-2 Negative environmental impacts in the supply chain and actions taken401-1 New employee hiring rate and employee turnover401-2 Bene?ts provided to full-time employees that are not provided totemporary or part-time employees401-3 Parental leave403-1 Occupational health and safety management system403-2 Hazard identi?cation, risk assessment, and accident investigation403-3 Occupational health services403-4 Occupational health and safety matters: worker participation,consultation, and communication403-5 Worker training on occupational health and safety403-6 Promotion of worker health403-7 Prevention and mitigation of occupational health and safety impactsdirectly linked by business relationships403-8 Workers covered by an occupational healthand safety management system403-9 Work-related injuries403-10 Work-related health issues404-1 Average hours of training per year per employee404-2 Program for upgrading employee skillsand transition assistance programs404-3 Percentage of employees receiving regular performanceand career development reviews405-1 Diversity of governance bodies and employees406-1 Incidents of discrimination and corrective actions taken408-1 Operations and suppliers at signi?cant risk for child labor409-1 Operations and suppliers at signi?cant riskof forced or compulsory labor413-1 Operations with local community engagement, impact assessments,and development programs413-2 Operations with actual or potential signi?cant negative impactson local communities
Disclosure ItemTopic StandardSection
Waste DisposalSustainable Supply ChainSustainable Supply ChainESG Key Performance TableTalent Attraction and DevelopmentTalent Attraction and DevelopmentOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyOccupational Health and SafetyESG Key Performance TableOccupational Health and SafetyESG Key Performance TableTalent Attraction and DevelopmentESG Key Performance TableProtection of Employee Rights andInterests Improving CorporateGovernanceProtection of Employee Rightsand InterestsProtection of Employee Rightsand InterestsProtection of Employee Rightsand InterestsProtection of EmployeeRights and InterestsSocial Contribution Supportfor Rural Revitalization
GRI 306: WasteGRI 308: SupplierEnvironmentalAssessmentGRI 401:
Employment
RI 403: OccupationalHealth and Safety
GRI 404: Trainingand EducationGRI 405: Diversityand Equal Opportunity
GRI 413: LocalCommunities
GRI 406:
Anti-discriminationGRI 408: Child LaborGRI 409: Forced orCompulsory Labor
207-1 Approach to tax207-2 Tax governance, control and risk management301-1 Weight or volume of materials used301-2 Recycled input materials used301-3 Reclaimed products and their packaging materials302-1 Energy consumption within the organization 302-3 Energy intensity302-4 Reduction of energy consumption302-5 Reductions in energy requirements of products and services303-1 Interactions with water as a shared resource303-2 Management of water discharge-related impacts303-3 Water withdrawal303-4 Water discharge303-5 Water consumption304-2 Signi?cant impacts of activities, products, and services on biodiversity305-1 Direct (Scope 1) GHG emissions305-2 Energy indirect (Scope 2) GHG emissions305-3 Other indirect (Scope 3) GHG emissions305-4 GHG emissions intensity305-5 Reduction of GHG emissions305-6 Emissions of ozone-depleting substances ODS305-7 Nitrogen oxides (NOx), sulfur oxides (SOx),and other signi?cant air emissions306-1 Waste generation and signi?cant waste-related impacts306-2 Management of signi?cant waste-related impacts306-3 Waste generated306-4 Waste diverted from disposal
Disclosure ItemTopic StandardSectionDeepening Compliance-Driven OperationsDeepening Compliance-Driven OperationsResource ManagementResource ManagementResource ManagementEnergy ManagementEnergy Management/Energy ManagementResource ManagementResource Management//ESG Key Performance TableEcological Environment ProtectionPerformance TableESG Key Performance Table/ESG Key Performance Table/N/AESG Key Performance TableWaste DisposalWaste DisposalWaste DisposalWaste Disposal
Page
P31-39P31-39P78-79P78-79P78-79P80-81P80-81/P80-81P77-78P77-78//P119-123P187P119-123P119-123/P119-123//P119-123P76P76P76P76
GRI 207: Tax
GRI 301: Materials
GRI 302: Energy
GRI 303:
Water and E?uents
GRI 304: Biodiversity
GRI 305: Emissions
GRI 306: Waste
Page
P76P68P68P121P102-102P101-102P108-110P114P111-113P112-114P112-114P113-114P112P112-114P116P114P119-123P104-106P119-123P91-92,P29P93-98P91P91P117-118P117-118
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
414-1 New suppliers screened using social criteria414-2 Negative social impacts in the supply chain and actions taken416-1 Assessment of the health and safety impacts of productand service categories416-2 Incidents of non-compliance concerning healthand safety impacts of products and services417-1 Requirements for product and service informationand labeling417-2 Incidents of non-compliance concerning productand service information and labeling417-3 Incidents of non-compliance concerningmarketing communications418-1 Substantiated complaints regardingcustomer privacy violations and data loss
Disclosure ItemTopic StandardSection
N/ASustainable Supply ChainQuality ManagementQuality ManagementCustomer Rights and Interests ProtectionCustomer Rights and Interests ProtectionCustomer Rights and Interests ProtectionCustomer Rights and Interests ProtectionData security and customer privacymanagement
GRI 414: SupplierSocial AssessmentGRI 416: CustomerHealth and Safety
GRI 417: Marketingand LabelingGRI 418: CustomerPrivacy
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Addressing Climate ChangePollutant emissionsWaste managementEcosystem and Biodiversity ConservationEnvironmental Compliance ManagementEnergy UtilizationWater UtilizationCircular economyRural RevitalizationSocial ContributionInnovation-driven DevelopmentTechnology EthicsSupply Chain SecurityEqual Treatment of Small and Medium-sizedEnterprisesProduct and service safety and qualityData Security and CustomerPrivacy ProtectionEmployeeDue DiligenceStakeholder CommunicationAnti-commercial Bribery and CorruptionAnti-unfair competition
Response to Climate ChangePollutant Discharge ManagementWaste DisposalEcological Environment ProtectionEnvironmental Compliance ManagementEnergy ManagementResource ManagementWaste DisposalSupport for Rural RevitalizationSocial ContributionTechnology Innovation and R&D ManagementGreen Innovation and R&DN/ASupply Chain ManagementSustainable Supply ChainUpholding Business EthicsQuality ManagementProtection of Customer Rights and InterestsData Security and Customer Privacy ManagementProtection of Employee Rights and InterestsEmployee Care and CommunicationTalent Attraction and DevelopmentOccupational Health and SafetyImproving Corporate GovernanceEnhanced Audit and Risk ManagementSustainability (ESG) ManagementProtection of Investors’ Rights and InterestsUpholding Business EthicsAnti-Unfair Competition
ChapterPageDisclosure Topics
Page
/P68P56-58P56-58P59P59P5959-60
P82-87P73-75P76P87P71-72P80-81P77-79P76P118P117P49-54/P63-68P40-43P56-58P59-60P91-116P29-30P34-39P21-22P44-45P40-43P40-43
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
SSE Sustainability Report Indicator IndexAppendix
Indicator ContentChapterPageIndicator No.Level
Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that have asigni?cant impact on the issuer;relating to air and greenhouse gas emissions, discharges intowater and land, and generation of hazardous and non-hazardouswaste.General disclosure
Emission types and related emission data.A1.1
The total amount of hazardous waste generated (in tonnes)
and, if applicable, intensity (e.g., per unit of production, per
facility)A1.3
non-hazardous waste generated (in tonnes) and, if
applicable, intensity (e.g., per unit of production, per facility)A1.4
Description of emission target(s) established and the steps
taken to achieve them.A1.5
Description of how hazardous and non-hazardous wastes
are handled, and a description of the waste reduction
target(s) set and the steps taken to achieve them.A1.6
Policies for the e?cient use of resources (including energy,
water, and other raw materials).
Note: Resources can be used for production, storage,
transportation, buildings, electronic equipment, etc.General disclosure
Direct and/or indirect energy consumption by type (e.g.
electricity, gas or oil) in total (kWh in"000s) and intensity (e.g.
per unit of production volume, per facility).A2.1
Total water consumption and intensity (e.g., per production
unit, per facility).A2.2
Description of the energy e?ciency goals established and
the steps taken to achieve them.A2.3
Pollutant Discharge ManagementWaste DisposalPollutant Discharge ManagementWaste DisposalESG Key Performance TableESG Key Performance Table
ESG Key Performance TablePollutant Discharge ManagementWaste DisposalWaste Disposal
Resource ManagementEnergy Management
ESG Key Performance Table
ESG Key Performance Table
Energy Management
A1:
Emissions
A2:
Resourceutilization
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
ESG Reporting Guide Indicator Index of theStock Exchange of Hong Kong (SEHK)A Environment
Indicator ContentChapterPageIndicator No.Level
Description of whether there is any issue in sourcingwater that is ?t for purpose, water e?ciencytarget(s) set and steps taken to achieve them.A2.4
Resource ManagementTotal packaging material used for ?nished products(in tonnes) and, if applicable, with reference to perunit produced.A2.5
ESG Key Performance Table
Policies on minimising the issuer's signi?cantimpacts on the environment and natural resources.General disclosure
Ecological Environment Protection
Environmental Compliance Management
Ecological Environment Protection
Environmental Compliance ManagementDescription of the signi?cant impacts of activities onthe environment and natural resources and theactions taken to manage them.A3.1A3:
Environmentand naturalresources
A2:
Resourceutilization
Indicator ContentChapterPageIndicator No.Level
Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that havea signi?cant impact on the issuer; relating to compensationand dismissal, recruitment and promotion, working hours,rest periods, equal opportunity, diversity,antidiscrimination, and other bene?ts and welfare.General disclosure
Protection of EmployeeRights and InterestsTalent Attraction andDevelopmentTotal workforce by gender, type of employment(e.g.full-time or part-time), age group and geographicalregion.B1.1ESG Key Performance TableEmployee turnover rate by gender, age group andgeographical region.B1.2
ESG Key Performance TableInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that havea signi?cant impact on the issuer; relating to providing a safeworking environment and protecting employees fromoccupational hazards.General disclosureOccupational Health and Safety
Number and rate of work-related fatalities occurred in eachof the past three years, including the reporting yearB2.1ESG Key Performance Table
B1:
Employment
B2: Healthand safety
A EnvironmentB Society
P73-76
P73-76P119-123
P119-123
P119-123
P73-76
P76
P77-81
P119-123
P119-123
P80-81
P77-79
P119-123
P87P71-72
P87.P71-72
P91-92P100-107
P119-123P19-123
P108-116
P119-123
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
B SocietyAppendix
Indicator ContentChapterPageIndicator No.Level
Lost days due to work injury.B2.2ESG Key Performance Table
Information on:
(a) the policies; and(b) compliance with relevant laws and regulations that havea signi?cant impact on the issuer; relating to preventingchild and forced labour.General disclosure
Protection of EmployeeRights and InterestsDescription of measures to review recruitment practices toavoid child and forced labor.B4.1
Protection of EmployeeRights and InterestsDescription of steps taken to eliminate the such actionswhen discovered.B4.2
Protection of EmployeeRights and InterestsPolicies on managing environmental and social risks of thesupply chain.General disclosure
Supply Chain ManagementSustainable Supply Chain
Number of suppliers by geographical region.B5.1ESG Key Performance Table
B2: Healthand safety
B3：
Developmentand training
B4: Laborguidelines
B5:
Supply chainmanagement
Description of practices used to identify environmental and
social risks along the supply chain, and how they are
implemented and monitored.B5.2Supply Chain Management
Indicator ContentChapterPageIndicator No.Level
Description of practices used to identify environmental andsocial risks along the supply chain, and how they areimplemented and monitored.B5.3
Sustainable Supply Chain
Description of practices used to promote environmentallypreferable products and services when selecting suppliers,and how they are implemented and monitored.B5.4Sustainable Supply ChainInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that havea signi?cant impact on the issuer; relating to health andsafety, advertising，labelling and privacy matters relating toproducts and services provided and methods of redress.General disclosure
Quality ManagementProtection of Customer Rightsand InterestsData Security and CustomerPrivacy ManagementPercentage of total products sold or shipped that aresubject to recalls for safety and health reasonsB6.1ESG Key Performance TableNumber of products and service related complaintsreceived and how they are dealt with.B6.2ESG Key Performance TableDescription of practices relating to observing and protectingintellectual property rights.B6.3
Technology Innovation andR&D ManagementDescription of quality assurance process and product recallprocedures.B6.4Quality Management
Description of consumer data protection and privacypolicies, and how they are implemented and monitored.B6.5
Protection of Customer Rightsand InterestsData Security and CustomerPrivacy ManagementInformation on: (a) the policies; and(b) compliance with relevant laws and regulations that have asigni?cant impact on the issuer; relating to bribery, extortion,fraud and money laundering.General disclosureUpholding Business Ethics
Number of concluded legal cases regarding corruptpractices brought against the issuer or its employees duringthe reporting period and the outcomes of the cases.B7.1ESG Key Performance Table
B5:
Supply chainmanagement
B6: Productliability
B7:
Anti-corruption
Description of preventive measures and whistle-blowingprocedures, and how they are implemented and monitored.B7.2Upholding Business Ethics
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
P119-123
Description of occupational health and safety measures
adopted and how they are implemented and monitored.B2.3
Occupational Healthand Safety
P108-116
Policies on improving employees' knowledge and skills for
discharging duties at work.
Note: Training refers to vocational training and may include
internal and external courses paid for by the employer.General disclosure
Talent Attraction andDevelopment
P100-107
Percentage of employees trained by gender and employee
category (e.g., senior management, middle management).B3.1ESG Key Performance TableP119-123
The average training hours completed per employee by
gender and employee category.B3.2ESG Key Performance TableP119-123
P91-92
P91-92
P91-92
P63-68
P119-123
P63-67
P68
P68
P56-60
P119-123P119-123P49-52
P65
P59-60
P40-43
P119-123
P40-43
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Indicator ContentChapterPageIndicator No.Level
Focus areas of contribution (e.g., education, environmentalconcerns, labor needs, health, culture, sports).B8.1
Social ContributionSupport for Rural Revitalization
B7: Anti-corruption
B8: Communityinvestment
Greenhouse Gases Veri?cation Opinion
GovernanceClimate-related risks and opportunitiesBusiness model and value chainStrategy and decision-makingFinancial position, ?nancial performance,and cash ?owsClimate resilienceRisk managementGreenhouse gas emissionsClimate-related transition risksClimate-related physical risksClimate-related opportunitiesCapital deploymentInternal carbon pricesRemuneration
Response to Climate Change - GovernanceResponse to Climate Change - StrategyResponse to Climate Change - StrategyResponse to Climate Change - Impact, Risk, andOpportunity ManagementResponse to Climate Change - Impact, Risk, andOpportunity ManagementResponse to Climate Change - Impact, Risk, andOpportunity ManagementResponse to Climate Change - Impact, Risk, andOpportunity ManagementResponse to Climate Change - Indicators and TargetsResponse to Climate Change - Impact, Risk, andOpportunity ManagementResponse to Climate Change - Impact, Risk, andOpportunity ManagementResponse to Climate Change - Impact, Risk, andOpportunity ManagementN/AN/AResponse to Climate Change - Governance
Indicator ContentPageChapterDimension
Governance
Strategy
Risk Management
Indicators and Targets
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
Description of anti-corruption training provided to directorsand employees.B7.3ESG Key Performance TableP119-123Policies on community involvement to understand the needsof the communities where the issuer operates and to ensurethat its activities take into consideration the interests of thecommunity.General disclosure
Social ContributionSupport for Rural Revitalization
P117-118P117-118ESG Key Performance TableResources contributed (e.g., money or time) to the focus area .B8.2P119-123
P82P82-84P82-84P84-86P84-86P84-86P84-86P87P84-86P84-86P84-86//P82
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
D. Climate-related disclosuresAppendix
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress
Reader FeedbackDear Reader:
Thank you very much for reading 2024 Environmental, Social and Governance (ESG) Report of Zhuzhou CRRC Times Electric Co., Ltd. In order toprovide you and other stakeholders with more valuable information and promote our company’s ability and level of ESG management, we sincerelywelcome your comments and suggestions on the report.
Feedback QuestionnaireWhich of the following categories of stakeholders are you?Governmen Regulators Shareholders and investors Customers Suppliers and partners Employee Community public NGO Other
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.What are your comments and suggestions on our ESG management e?orts?
ZHUZHOU CRRC TIMES ELECTRIC CO., LTD.
PrefaceSustainability Management
Robust Governance:
Strengthening Corporate Foundation2024
2024 Environmental, Social andGovernance(ESG) Report
Technology InnovationLeads: Lean-PerfectedExcellence in Quality
Responsible Procurement:
Building a SustainableSupply Chain
Environmentally FriendlyDriving Green Development
People OrientedEmpowering InclusiveProgress