CONTENTS
About This ReportChairman's Statement2024 Sustainable Development Impact2024 Honors and AwardsManagement of Material MattersStakeholder EngagementSustainability-Related Governance
Climate ResponseEnergy UtilizationEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementWater Resources Utilization
Pollutant DischargeWaste DisposalCircular Economy
Rural Revitalization and SocialContributionsInnovation-driven DevelopmentSuppliers and CustomersEmployees
Risk and Compliance ManagementBusiness PracticesData OverviewGuidelines No. 17 of Shenzhen StockExchange for the Self-Regulation ofListed Companies - SustainabilityReport (Trial)SASB IndexESRS IndexISDS Index
Appendix
ENVIRONMENT
SOCIETY
GOVERNANCE
About This Report
Reporting Scope
This is the 2024 Sustainability Report ("this report") released by Xiamen Xindeco Ltd. (referred to as"Xindeco" or "We"). This report aims to present stakeholders with an overview of ESG performance andinitiatives of Xindeco in 2024.
This report is prepared in accordance with the Sustainability Disclosure Standards for Enterprise - General Requirements (Trial), jointlyformulated by the Ministry of Finance of the People’s Republic of China, the Ministry of Foreign A?airs, the National Developmentand Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the Ministryof Commerce, the People's Bank of China, the State-owned Assets Supervision and Administration Commission of the State Council(SASAC), the National Financial Regulatory Administration, and the China Securities Regulatory Commission. It also follows theGuidelines No. 17 of Shenzhen Stock Exchange for the Self-Regulation of Listed Companies - Sustainability Report (Trial) and theGuide No.3 of Shenzhen Stock Exchange for the Self-Regulation of Listed Companies - Preparation of Sustainability Report issuedby the Shenzhen Stock Exchange, the Sustainability Accounting Standards Board (SASB) Standards, the European SustainabilityReporting Standards (ESRS) released by the European Commission, and the two IFRS Sustainability Disclosure Standards(ISDS) issuedby the International Sustainability Standards Board (ISSB). Additionally, this report incorporates disclosure requirements aligned withthe United Nations Sustainable Development Goals (SDGs).
The reporting period is between January 1, 2024, and December 31, 2024, and some parts of the report are beyond theaforementioned scope. Unless otherwise speci?ed, the environmental, social, and economic data disclosed in this report include allenterprises within the scope of the consolidated statement of Xindeco.
The report will be published once a year in electronic format in both Simpli?ed Chinese and English. In the event of anyinconsistencies between the Chinese and English versions, the Chinese version shall prevail. The electronic version of the report canbe accessed and downloaded from the Shenzhen Stock Exchange website (www.szse.cn) and the cninfo website (www.cninfo.com.cn). If you have any comments or suggestions, please feel free to email wangxs@xindeco.com.cn or lipf@xindeco.com.cn. We willstrive to make improvements the report based on your feedback.
AbbreviationFull NameXindeco or WeXiamen Xindeco Co., Ltd.XindecoXiamen Xindeco Co., Ltd. and its subsidiariesXindeco Digital Intelligence TechnologyDigital Intelligence Technology Division of Xiamen Xindeco Co., Ltd.Xindeco Electronic Information TechnologyXiamen Xindeco Electronic Information Technology Co., Ltd.Xiamen Xindeco IoTXiamen Xindeco IoT Technology Co., Ltd.Xindeco OptoelectronicsXiamen Xindeco Optoelectronics Co., Ltd.Xindeco Supply ChainSupply Chain Division of Xiamen Xindeco Co., Ltd.Xindeco Non-Ferrous Metals Non-Ferrous Metals Division of Xiamen Xindeco Co., Ltd.Xindeco Ferrous MetalsFerrous Metals Division of Xiamen Xindeco Co., Ltd.Xindeco ITG Automobile GroupXiamen Xindeco ITG Automobile Group Co., Ltd.Xindeco Intelligent IoTXiamen Xindeco Intelligent IoT Technology Service Co., Ltd.Shandong Xindeco IoTShandong Xindeco IoT Applied Technology Co., Ltd.Xindeco IoT MalaysiaXindeco IoT Malaysia Sdn. Bhd.
Reference GuidelinesExplanatory Note
Report Availability and Feedback
Xindeco2024 Sustainability ReportAbout This Report
0102
0304
Chairman's Statement
Chairman's StatementXindeco2024 Sustainability Report
As time goes by, we have witnessed the transformationsshaping our era, with the global economy surging amidstprofound changes and waves of technological innovationcontinuously reshaping the future. In 2024, Xiamen Xindecoproudly celebrated forty years of growth and achievements.Looking back to our founding in 1984, we have remainedresolute in our original aspirations, adapting to the evolvingenvironment, continuously rede?ning our technological core,and forging our path through innovation and responsibility.This year, we actively responded to the national callfor the development of new quality productive forces,aligning ourselves with the wave of digital and intelligenttransformation. We o?cially established the Xindeco DigitalIntelligence Technology Division, driving industrial upgradingwith technological empowerment and building an e?cient,intelligent, and globally oriented digital platform, a foundationfor a sustainable future. We made solid progress in ourinternationalization strategy, with our RFID production lineventured overseas for the ?rst time and Xiamen Xindeco IoT'sinaugural overseas factory being established in Malaysia.Our supply chain business accelerated the transformationand upgrading by deepening the integration of supply,manufacturing, and sales chains, further extending the serviceboundaries. Our automobile dealership business continued toexpand in new energy vehicles and export markets, while alsotapping into the potential of the used car and parallel importsectors. We are deeply aware that sustainable developmentis not merely a strategic imperative, but a corporate
responsibility, a commitment to seeking breakthroughs amidchange, and continuously enhancing product value and corecompetitiveness to earn the long-term trust and support ofour customers. Looking ahead, we will continue to uphold anopen, innovative, and responsible spirit, moving forward withunwavering determination. Together with all our partners, wewill forge a future of greater sustainability, intelligence, andshared success.Low-Carbon Commitment- Pioneering Green DevelopmentAddressing climate change has become a global consensus,and green development is the inevitable path for enterprisestoward the future. In 2024, we committed to sustainabledevelopment principles, prioritizing low-carbon manufacturing,energy e?ciency, and environmental improvements toaccelerate the green and intelligent transformation of ourentire business value chain and support the achievementof our carbon peaking and net-zero targets.We continuouslyoptimized production processes to enhance resourcee?ciency, implemented energy-saving technologies insmart manufacturing and modern logistics to reduce energyconsumption and carbon emissions, and advanced the greentransformation of our supply chain by promoting sustainablewarehouse management and prioritizing the use of renewableand recyclable materials. Through technological innovation,we are committed to decarbonizing our operations andsupply chains. We are dedicated to integrating low-carbonpractices into every aspect of our business and building a more
sustainable future through responsibility and innovation.Collective Responsibility- Building a Value-SharingEcosystemThe company growth is intrinsically linked to society, andit bears the responsibility to contribute in return. In 2024,we remained steadfast in ful?lling our corporate socialresponsibilities, leveraging our industrial strength to drivesustainable societal progress and foster the integration ofeconomic and social value. We harnessed our industrial andresource advantages to support rural revitalization, enhancedthe brand value and competitiveness of the agriculturalindustry chain, and contributed to the long-term growthof local economies. We actively mobilized resources foreducational initiatives, cultivated talent for rural revitalizationand promoted the education across communities. We placedstrong emphasis on community development, conductedphilanthropic programs, and advanced initiatives in healthcare,culture, and social welfare, thereby promoting the sustainedenhancement of social well-being.We continued to re?ne our talent development framework,fostering a fair, diverse, and inclusive working environment todrive the shared growth of our employees and the company.Through concrete actions, we are earnestly ful?lling our dutiesand contributing to create lasting social value.Governance Excellence- Securing Resilient FoundationsA sound governance framework is the cornerstone for a
company's long-term, steady development. In 2024, we keptenhancing our corporate governance structure, embeddingsustainability goals deeply into our business operations andadvancing governance modernization.Through more transparent, e?cient, and standardizedmanagement practices, we ensured the company's long-term health and resilience. We strengthened the functioningof the Board of Directors, improved the strategic decision-making process, reinforced the internal control system, andoptimized risk management procedures, thereby enhancingthe compliance and risk resilience across operations. We alsofocused on improving the quality of information disclosureand strengthening engagement with investors, employees,customers, and other stakeholders, ensuring that ourdevelopment remains aligned with long-term interests. We?rmly believe that with excellent governance as the foundation,a company can maintain resilience amidst uncertainties andachieve steady, sustainable progress into the future.Amidst the constant change, only an unswerving commitmentto long-termism enables steady progress through the currentsof the times. Looking to the future, we will continue to upholdthe principles of openness, innovation, and responsibility,harnessing technology to empower industries, leading the waywith green solutions, and broadening cooperation from a globalperspective. Together with our partners, we will collaborativelycreate a greener, smarter, and more sustainable future de?nedby shared success.
R&D investment45,679.46
thousand RMB
Total asset
12,835,316.08
thousand RMB
Total environmental protection input
1,256.30
thousand RMBGHG emission intensity
58.97
tCO
e / hundred-million RMB of operating revenue
Energy intensity
14.48
Tons of coal equivalent / hundred- million RMB of operating revenue
Water use intensity
1,054.25
m? / hundred-million RMB of operating revenue
Operating revenue43,785,518.00
thousand RMB
Total tax payment249,582.10
thousand RMB
Employee compensation and bene?ts668,318.56
thousand RMB
Total consumption-based assistance input
786.99
thousand RMB
Total occupational health and safety input
3,245.92
thousand RMB
Total employees3,998
personsVolunteer service hours1,135
hours
Total employee training hours63,329
hours
2024Sustainable Development Impact
2024 Sustainable Development Impact
Economic Impact
Social Impact
Environmental Impact
0506
Xindeco2024 Sustainability Report
th
place in the Comprehensive Listof the Top 100 National Steel TradingEnterprises recognized by Ganglian
Holdings
2024Honors and AwardsXiamen Xindeco Ltd.
Xiamen Xindeco Optoelectronics Co., Ltd.
Xiamen Xindeco IoT Technology Co., Ltd.
The "2023 Top 20 Global Iron Ore
Trading Suppliers" awarded by
Ganglian Holdings
"2023-2024 China Excellent TradingEnterprise for Steel Export"recognized by Ganglian Holdings
th
place in the "2023 Top 100 ChineseLED Lighting Companies" ranked by theGrand Lighting Industry Research Institute
"2024 Top 30 Decent Enterprises forShared Development"by the FESCO,the Economic Observer, and the PositivePsychology Research Center of Schoolof Social Sciences, Tsinghua University
"2024 Best Employer"at the 19thEmployer Brand Promotion Conference
organized by CHIRC
"The 6th YunTu Awards – ExcellencePrize in Digital Empowerment andInnovation Practice"jointly presentedby the Institute of Organization andTalent Development, the CEIBS Business
Review, and YXT
"Outstanding Contribution Awardin Tin Industry for 2024"granted byGanglian Holdings
"2023 Top 100 Chinese IoT Enterprises"jointlypresented by the China Internet of Things IndustryAlliance and the Shenzhen Internet of Things Industry
Association
"Passive IoT Innovation DemonstrationEnterprises"presented by the AIoT Technology and
Industry Association
th
place in the Construction Steel Listof the Top 100 National Steel TradingEnterprises recognized by Ganglian
Holdings
"Long-term Reliable Supplier of IronOre" recognized by Ganglian Holdings
"2024 Outstanding SocialEnterprises - 2024 Human ResourcesManagement Excellence Awards"
granted by HRoot
"2024 Human Resources ManagementInnovation Enterprises"at the 19thEmployer Brand Promotion Conference
organized by CHIRC
"2024 Excellent Enterprise forESG Practice"awarded at the 19thEmployer Brand Promotion Conference
organized by CHIRC
2024 Honors and Awards
0708
Xiamen Xindeco ITG Automobile Group Co., Ltd.
th
place in the"2024 Top 100Chinese Automobile Dealer Groups"
ranked by the China Auto DealersChamber of Commerce
"Top 100 Social ResponsibilityEnterprises in China AutomobileDealership Industry"recognized bythe China Auto Dealers Chamber of
Commerce
"2024 Trustworthy Enterprisein China Automobile DealershipIndustry"recognized by the China AutoDealers Chamber of Commerce
"2024 Excellent Case of MarketingInnovation Projects of ChineseAutomobile Dealers"recognizedby the China Automobile Dealers
Association
thplace in the"2024 Top 100 ChineseAutomobile Dealer Groups in NewEnergy Vehicle Sub-List"ranked bythe China Auto Dealers Chamber of
Commerce
"2024 Regional OutstandingAutomotive Marketing Group"
recognized by Yiche.com
"Honest Automobile Dealer in Xiamenfor 2024" recognized by Xiamen Daily
Xindeco2024 Sustainability Report
Management of Material Matters
Management of Material Matters
0910
We conduct double materiality assessments in alignment with the latest domestic and international disclosure frameworks, includingthe Sustainability Disclosure Standards for Enterprise - General Requirements (Trial), jointly formulated by the Ministry of Financeof the People's Republic of China, the Ministry of Foreign A?airs, the National Development and Reform Commission, the Ministryof Industry and Information Technology, the Ministry of Ecology and Environment, the Ministry of Commerce, the People's Bankof China, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), the National FinancialRegulatory Administration, and the China Securities Regulatory Commission. We also follow the Guidelines No. 17 of ShenzhenStock Exchange for the Self-Regulation of Listed Companies - Sustainability Report (Trial) and the Guide No.3 of Shenzhen StockExchange for the Self-Regulation of Listed Companies - Preparation of Sustainability Report issued by the Shenzhen Stock Exchange,the European Sustainability Reporting Standards (ESRS) released by the European Commission, and the two IFRS SustainabilityDisclosure Standards(ISDS) issued by the International Sustainability Standards Board (ISSB), to perform assessment and identifymaterial sustainability matters that have signi?cant impacts on the company's long-term value and stakeholders.During the double materiality assessment process, we evaluated sustainability matters from two dimensions: In conducting the doublemateriality assessment, we collected evaluation opinions from 318 stakeholders through questionnaires, focusing on the impact ofsustainability matters on our ?nancial performance (?nancial materiality) and on environment and society (impact materiality). Byanalyzing both dimensions, we identi?ed 12 material matters, which are addressed in the corresponding sections of this report.
Double Materiality Assessment ProcessUnderstanding the Context and Identifying
Impact and Financial Materiality
Consolidating Impact and FinancialMateriality Outcomes
Analyzing the outcomes for sustainabilityreporting and practices
Sustainability Disclosure Standards for Enterprise - General Requirements (Trial), jointly formulated by the Ministry of Finance ofthe People's Republic of China, the Ministry of Foreign A?airs, the National Development and Reform Commission, the Ministryof Industry and Information Technology, the Ministry of Ecology and Environment, the Ministry of Commerce, the People'sBank of China, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), the NationalFinancial Regulatory Administration, and the China Securities Regulatory Commission, the Guidelines No. 17 of ShenzhenStock Exchange for the Self-Regulation of Listed Companies - Sustainability Report (Trial) and the Guide No.3 of Shenzhen StockExchange for the Self-Regulation of Listed Companies - Preparation of Sustainability Report issued by the Shenzhen StockExchange, the Sustainability Accounting Standards Board (SASB) Standards, the Reference of ESG Indicators System for ESGReports of Listed Chinese Central State-Owned Enterprises issued by the SASAC Research Center, the European SustainabilityReporting Standards (ESRS) released by the European Commission, and the two IFRS Sustainability Disclosure Standards(ISDS)issued by the International Sustainability Standards Board (ISSB).The United Nations Sustainable Development Goals (SDGs), the 29th Conference of the Parties of the UNFCCC (COP 29), the DueDiligence Guidance for Responsible Business Conduct of Organisation for Economic Co-operation and Development (OECD), etc.The National carbon peaking and carbon neutrality goals, global temperature control targets under the Paris Agreement, ScienceBased Targets initiative (SBTi), Responsible Business Alliance (RBA), Global enabling Sustainability Initiative (GeSI), trends in digitaltransformation and supply chain restructuring, green manufacturing and circular economy, automotive industry policies such astrade-in of old consumer goods and consumer subsidies,Shifting consumer preferences driving increased demand for sustainable products, diversi?ed and dynamic customer needs,greater value chain transparency, and higher certi?cation requirements for international business.
Pursuit of sustainable growth, development of new quality productive forces, and advancement of high-quality development.
SustainabilityDisclosureStandards
InternationalInitiatives
Economic andMacro-Policy
Dynamics
Market Trends
Company Strategyand Development
Needs
Double Materiality Assessment Approach
We identi?ed a list of sustainability matters relevant to our company based on ?ve factors including sustainability disclosure standards,international initiatives, global economic and macro-policy dynamics, market trends, and our company strategy and development needs,while also taking into account our business characteristics.
Step 1 ：Identifying Sustainability Matters
Sustainability Matters ListDimensionSustainability Matters
Environmental
·Climate Response·Pollutant Discharge·Waste Disposal·Ecosystem and Biodiversity Protection
·Environmental Compliance Management·Energy Utilization·Water Resources Utilization·Circular Economy
Social
·Rural Revitalization·Social Contributions·Innovation-Driven Development·Ethics of Science and Technology·Responsible Sourcing·Supply Chain Security·Equal Treatment of SMEs·Product and Service Safety andQuality
·Data Security and Customer Privacy·Contributing to Industry Development·Equal Employment·Human Rights Protection·Employee Communication·Employee Development and Training·Employee Compensation and Bene?ts·Occupational Health and Safety
Governance
·Due Diligence·Stakeholder Engagement·Risk and ComplianceManagement
·Anti-Commercial Bribery and Anti-Corruption·Anti-unfair Competition·Tax Compliance
The company identi?ed 30 potential keymatters based on ?ve factors and formed aproposed sustainability matters list.
The company evaluated the impactmateriality and ?nancial materiality of eachmatter based on two dimensions: severity ofimpact and likelihood of occurrence.
Based on the data from Step 2, thecompany developed the MaterialityMatters Matrix for 2024 and determinedthe priority of sustainability matters forthe year.
The Strategy and SustainabilityCommittee reviewed the analysis resultsand the company took targeted actionsto improve the disclosure and practicesbased on the results.
Step
Step
Step
Step
Xindeco2024 Sustainability Report
1112
Step 2-1 ：Impact Materiality AssessmentStep 2-2 ：Financial Materiality Assessment
Criteria 1: Severity of Impact
Criteria 1: Potential MagnitudeCriteria 2: Likelihood of Occurrence
Criteria 2: Likelihood of Occurrence
We assessed the "severity of impact " ofkey sustainability matters across economic,environmental, and social dimensions throughstakeholder surveys, with 318 valid questionnairesreturned. We used statistical methods such asweighted averages and variance analysis to quantifythe qualitative scores (1-5 scale) of each matter. Theoverall severity score was calculated by combiningthe weight distribution to determine the materialityof sustainability matters.
The direct and indirect, positive and negative e?ects thatthe opportunities and risks associated with each materialsustainability matter may bring to the company's ?nancialperformance during the reporting period and in futureprojections.
The likelihood of ?nancial e?ects on the company fromthe opportunities and risks associated with each materialsustainability matter in the short, medium, and long-term.
We inferred the risk probability based on thefrequency of similar events in the past and classi?edand quanti?ed the likelihood of risk occurrencebased on experience, to determine the likelihood ofoccurrence of sustainability matters.
2024 Impact Materiality Assessment Outcomes
Financial Materiality Assessement Outcomes
Sustainability
Matters
Impact Materiality: LowImpact Materiality: MediumImpact Materiality: High
?Ethics of Science
and Technology
?Circular Economy?Waste Disposal?Environmental Compliance
Management?Water Resources Utilization?Pollutant Discharge?Ecosystem and Biodiversity
Protection?Rural Revitalization?Social Contributions?Equal Treatment of SMEs?Data Security and Customer Privacy?Contributing to Industry Development?Anti-Commercial Bribery and Anti-
Corruption?Anti-unfair Competition?Tax Compliance
?Climate Response?Energy Utilization?Product and Service Safety and Quality?Responsible Sourcing?Supply Chain Security?Innovation-Driven Development?Occupational Health and Safety?Human Rights Protection?Equal Employment?Employee Communication?Employee Development and Training?Employee Compensation and Bene?ts?Risk and Compliance Management?Due Diligence?Stakeholder Engagement
Impact Materiality Assessment Outcomes
HighLowMedium
We assessed the ?nancial materiality of each matter based on two criteria: the potential magnitude and the likelihood of occurrence.
Note 1: Financial Materiality "Low" refers to potential impact in the short, medium, and long term, but the severity may not be material.Note 2: Financial Materiality "Medium" indicates an impact in the short term with futher potential impact in the medium and long term.Note 3: Financial Materiality "High" signi?es a considerable short-term impact with a strong likelihood of material impact in the medium and long term.
Financial Materiality：Low
Financial Materiality：Medium
Financial Materiality：High
?Equal Employment?Employee Compensation and Bene?ts?Employee Communication?Anti-unfair Competition?Tax Compliance?Waste Disposal?Ethics of Science and Technology?Ecosystem and Biodiversity Protection?Pollutant Discharge
?Anti-Commercial Bribery and Anti-Corruption?Water Resources Utilization?Social Contributions?Equal Treatment of SMEs?Contributing to Industry Development?Human Rights Protection?Data Security and Customer Privacy?Employee Development and Training?Stakeholder Engagement?Environmental Compliance Management?Rural Revitalization
?Climate Response?Product and Service Safety and Quality?Innovation-Driven Development?Responsible Sourcing?Risk and Compliance Management?Supply Chain Security?Circular Economy?Energy Utilization?Occupational Health and Safety?Due Diligence
Reference FactorsCosts
Considering factors such as market price of resources, trendforecasts, and the company's historical costsPro?ts
Taking into account both costs and revenues, and assessing theimpact on pro?ts
Xindeco2024 Sustainability ReportManagement of Material Matters
1314
Step 3 ：Consolidating Impact and Financial Materiality Outcomes
Water Resources UtilizationEqual EmploymentEmployee CommunicationEmployee Compensation and Bene?tsContributing to Industry DevelopmentStakeholder EngagementEqual Treatment of SMEsData Security and Customer Privacy
Pollutant Discharge
We consolidated the impact materiality and ?nancial materiality assessment outcomes of various sustainability matters in the form of amateriality matrix, identifying a total of 12 material matters.
| 2 | 4 |
Sustainability MattersProduct and Service Safety and QualityResponsible SourcingClimate ResponseSupply Chain SecurityInnovation-Driven DevelopmentOccupational Health and Safety
Risk and Compliance ManagementDue DiligenceHuman Rights ProtectionEmployee Development and TrainingEnergy UtilizationCircular EconomyHigh
Low
Medium
Impact and Financial Materiality
Impact Materiality
| 6 | ||
| 8 |
| 5 | ||
| 3 |
| 14 | ||||
| 11 | ||||
| 20 |
Financial Materiality
Xindeco Materiality Matrix
EnvironmentSocietyGovernance
Social ContributionsRural RevitalizationAnti-Commercial Bribery and Anti-CorruptionEnvironmental Compliance ManagementAnti-unfair CompetitionWaste DisposalEthics of Science and TechnologyTax Compliance
Ecosystem and Biodiversity Protection
Xindeco2024 Sustainability ReportManagement of Material Matters
Step 4 ：Reporting and Practice Guidance
The results of the company's materiality assessment of material matters were reviewed by the Strategy and Sustainability Committee. Detailedinformation regarding the management and annual performance of these matters is provided in the relevant sections of this report.
Note1:Impact Duration Description:Short-term generally refers to within one year (inclusive) after the end of the reporting period; mid-term refers to one to ?ve years (inclusive) after the end of the reporting period; long-term refers to more than ?ve years after the end of the reporting period.
Material Matter
Scope of Impact
A?ected StakeholdersRisksValueChainUp-stream
Opera-
tionsValueChainDown-streamCommuni-ties
Climate Response????
·Employees·Customers·Suppliers·Investors·Banks·Media Institutions·Government and Regulatory Authorities·Non-governmental Organizations
·The extreme weather and natural disasters caused by climate
change may result in asset losses or impairments for the company, and lead to increased costs.·Low-carbon products are more favored by consumers, andtraditional businesses may face a decline in market share and business contraction.·Short-term ?nancial costs for the company may increase dueto investments in the research and development of green and low-carbon products.
Circular Economy????
·Customers·Suppliers·Banks·Media Institutions·Government and Regulatory Authorities·Non-governmental Organizations
·If a company's production operations and products fail tomeet the increasing policy and market demands for resourcerecycling, it may impact the company's market competitiveness and that of the company's products.·Innovative investments in resource recycling and other areas may increase the company's ?nancial costs in the short term.·Policies and regulations related to energy transition arebecoming stricter in various countries and regions, andtraditional energy or high-energy-consuming equipment may be phased out, leading to asset depreciation.·Energy structure adjustments impact the stability of the supplychain, and limited supply of key resources may increase related costs.·Promoting clean energy use and optimizing the energystructure, such as investing in photovoltaic rooftops, may increase ?nancial costs for the company in the short term.
Energy Utilization??
·Customers·Suppliers
·Policies and regulations related to energy transition arebecoming stricter in various countries and regions, andtraditional energy or high-energy-consuming equipment may be phased out, leading to asset depreciation.·Energy structure adjustments impact the stability of the supplychain, and limited supply of key resources may increase related costs.·Promoting clean energy use and optimizing the energystructure, such as investing in photovoltaic rooftops, may increase ?nancial costs for the company in the short term.Product and ServiceSafety and Quality
????
·Customers·Suppliers
·If products and services fail to meet industry standards
or regulatory requirements, it may result in administrativepenalties, product recalls, lawsuits, increased repair costs, insurance fees, or even hefty ?nes or legal compensation.
· Quality or safety issues may lead to consumer complaints, media exposure, harm to brand image, and customer loss.
Innovation-DrivenDevelopment
???
·Employees·Customers·Suppliers·Investors
·R&D activities typically require signi?cant investment and long
cycles; if technological breakthroughs are not achieved orresults fall short of expectations, projects may fail, leading to wasted resources and losses on R&D investments.·If innovative products deviate from market needs and arepoorly received by consumers, commercialization may fail, preventing recovery of R&D costs.·Substantial R&D expenditures may strain the company's cash?ow and if short-term returns are not realized, it could trigger ?nancial crises or impact other business operations.·Leakage or infringement of core technologies could causethe company to lose its competitive edge and if the companyinfringes upon others' intellectual property rights, it may face legal disputes and signi?cant compensation liabilities.·Loss or insu?cient capabilities of core R&D personnel may result in project delays or lower innovation quality.
OpportunitiesImpact Duration
Corresponding SDGsLocation in the Report·Developing a green, low-carbon, and sustainable businessdevelopment model to enhance the company's responsible brand image.·Developing innovative products that meet the demands of green andlow-carbon development, and enhancing the green competitivenessof products and services in the market driven by the green low-carbon transformation.·Financial institutions and investors are more inclined towards green and low-carbon projects. Companies promoting green and low-carbon development are more likely to attract capital market interest and secure lower ?nancing costs.
Short-term,Medium-term, andLong-term
Climate ResponseCircular Economy
·Strengthening resource recycling to enhance overall operational quality, e?ciency, and reduce operational costs.
·Promoting the circular economy to expand the scale of relatedbusinesses under the support of sustainable development policies and market preferences.
Medium-term and
Long-term
Circular Economy
·Optimizing energy structure to reduce reliance on fossil fuels and mitigate risks associated with energy supply instability.
·Continuously reducing the company's carbon footprint and enhance the ability to manage risks arising from energy transition.
Medium-term and
Long-term
Climate ResponseEnergy Utilization·High quality and safety can establish a reliable brand image, buildlong-term consumer trust, and increase product repurchase rates and word-of-mouth marketing.·In a competitive market, excellent products and services become acore competitive advantage, attracting high-value customers focusedon safety and experience, facilitating entry into high-end or international markets and expanding business boundaries.·Strict quality and safety controls reduce product defects, after-salescomplaints, and recall incidents, and over time, lower hidden costs such as repair, compensation, and ?nes.
Short-term,Medium-term, and
Long-term
Product and Service Safety and
Quality
·R&D and innovation can generate entirely new business models,
breaking traditional growth bottlenecks. Early launch of innovativeproducts or solutions can quickly capture market share and establish industry leadership.·Through patents, proprietary technologies, or unique services,
companies can build strong competitive moats that are di?cult for rivals to replicate, enhancing market share and competitiveness.
·High-tech enterprises may bene?t from preferential tax policies, andquali?ed R&D investments may receive corresponding ?scal incentives or grants.·R&D e?orts in automation, digitalization, and other areas can
optimize production processes, improve e?ciency, and reduce long- term operational costs.
Medium-term and
Long-term
Innovation-Driven Development
Xindeco2024 Sustainability ReportManagement of Material Matters
Material Matter
Scope of Impact
A?ected StakeholdersRisksValueChain
Up-stream
Opera-
tionsValueChainDown-stream
Com-muni-
ties
Responsible Sourcing???
·Customers·Suppliers·Investors
·ESG regulations are tightening globally and non-compliance may result in ?nes, trade restrictions, or litigation.·If the supply chain is associated with issues such asenvironmental violations, corruption, or human rights abuses,the company could face brand reputation damage and legal liabilities.·Over-reliance on high-risk suppliers (e.g., those from con?ictregions or non-compliant with environmental standards) could lead to supply disruptions or production halts.
·In the absence of a resilient supply chain, extreme weather
events (such as ?oods or droughts) or pandemics may causesupply chain interruptions, increased procurement costs, or production shutdowns.
·Using compliant raw materials, clean energy, or low-carbon logistics may increase procurement costs in the short term.Supply Chain Security???
Human Rights Protection???
·Employees·Customers·Suppliers
·Violations of human rights or labor rights may lead to compliance risks and damage the company's brand image.·Inadequate protection of employee rights may result inhigher employee turnover, a?ecting the stability of business operations.
Employee Development
and Training
?·Employees
·Building a systematic talent development mechanism may lead to higher ?nancial and human resource costs.·Challenges in talent acquisition, increased employee turnover,or slow skill upgrades may constrain the company's sustainable growth.
Occupational Health and
Safety
???
·Employees·Customers·Suppliers
·Establishing a comprehensive occupational health and safety system may increase the company's ?nancial costs.·Occupational health and safety incidents could triggernegative public opinion, lead to ?nes and other ?nancial losses, and damage the company's reputation and image.
Due Diligence????
·Employees·Customers·Suppliers·Investors·Banks·Media Institutions·Government and Regulatory Authorities·Non-governmental Organizations
·Failure to properly identify and manage sustainability-relatednegative impacts or risks may expose the company to legal, compliance, ?nancial, reputational, and market risks.·Conducting due diligence, especially when engaging third-party professional services, may increase related corporate costs and expenses.
Risk and ComplianceManagement
????
·Employees·Customers·Suppliers·Investors·Banks·Media Institutions·Government and Regulatory Authorities
·Non-governmental Organizations
·Poor risk and compliance management may weaken the
company's overall risk response capability, leading to ?nancial, legal, compliance, and reputational risks.·Inadequate emergency management systems may impairthe company's ability to respond to risks, causing damage to business operations and brand image.
OpportunitiesImpact Duration
Corresponding SDGsLocation in the Report
·Implementing responsible supply chain management practices helpsmeet compliance requirements and shapes a responsible corporateimage. As market preferences shift, consumers are more willing to pay a premium for sustainable brands.
·Building a sustainable supply chain reduces the risk of disruptions and enhances the stability of product and service delivery.
Short-term,Medium-term,and Long-term
Responsible Sourcing
Supply Chain Security
·Strengthening human rights protection helps build a responsible corporate image.
·Promoting a culture of care and safeguarding human rights and labor rights can enhance employee satisfaction and retention.
Short-term,Medium-term, and
Long-term
Suppliers and CustomersEmployees
·Attracting a diverse and stable talent pool can support the company's steady development.·Comprehensive career development and training programs helpenhance employees' professional skills, strengthen talent pipelines,and provide continuous momentum for the company's long-term growth.
Medium-term and
Long-term
Employee Development
·A well-developed occupational health and safety system can enhanceemployees' sense of well-being and belonging, thereby boosting the company's productivity.
Short-term,Medium-term,and Long-term
Occupational Health and Safety
·Enhancing trust among stakeholders and the public, boosting the
company's reputation and brand in?uence.
Short-term,Medium-term, and
Long-term
Stakeholder Engagement
·Strengthening risk and compliance management can improve the
company's resilience and support sustainable operations.
·A comprehensive emergency management plan can help thecompany respond quickly and e?ectively to crises, minimizing business losses and protecting brand reputation.
Short-term, Me-dium-term, and
Long-term
Risk and Compliance Management
1718
Xindeco2024 Sustainability ReportManagement of Material Matters
Note1:Impact Duration Description:Short-term generally refers to within one year (inclusive) after the end of the reporting period; mid-term refers to one to ?ve years (inclusive) after the end of the reporting period; long-term refers to more than ?ve years after the end of the reporting period.
Sustainability-Related Governance
Stakeholder EngagementSustainability-Related Governance
We value the expectations and concerns of our stakeholders, maintain close communication and engagement through diversechannels, and continuously enhance our sustainability management by incorporating their suggestions and feedback.
We adhere to the concept of sustainable development and continuously improve our governance mechanisms by establishing asustainable development governance structure from the board of directors to the executive level. This strengthens the managementof sustainable development issues and ensures stable and long-term operations.StakeholdersMatters of ConcernCommunication Methods
Employees
·Equal Employment·Compliant Operations·Tax Compliance·Human Rights Protection
·Suggestion Box·Employee Training and Activities·Employee Satisfaction Survey·Employee Representative Conference and Labor Union Congress·Seminars and Daily Communication
Clients
·Equal Employment·Human Rights Protection·Consumer Protection·Risk Management
·Online Communications·On-site Visits·Exhibition Activities·Customer Satisfaction Survey and·Complaint Handling
Suppliers
·Tax Compliance·Environmental Compliance·Water Resource Conservation and·Wastewater Management·GHG Emissions
·Online Communications·On-site Visits·Exhibition Activities·Professional Platforms
Investors
·Compliant Operations·Anti-corruption·Tax Compliance·Complaint Mechanism and·Whistleblower Protection
·Information Disclosure of Listed Companies· Investor Online Group Reception Day· Investor Hotline and Email·Shenzhen Stock Exchange Interactive Platform· Shareholders' Meeting and Earnings·Conference Call & Webcast
Banks
·Compliant Operations·Risk Management·Anti-corruption·Tax Compliance
·Information Disclosure of Listed Companies·Online Communications·On-site Visits
Media Institutions
·Environmental Compliance·Responsible Marketing·Consumer Protection·GHG Emissions
·Information Disclosure of Listed Companies·Online Communications·Visitor Reception
Government and Regulatory Bodies
·Environmental Compliance·Community Investment·Compliant Operations
·Online Communications·On-site Visits·Government-Enterprise Meetings·Participation in Policy Recommendations
Non-governmental Organizations
·Human Rights Protection·Responsible Supply Chain·Consumer Protection·Community Investment
·Industry Association Exchange·Online Communications·Public Service
We comply with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, and otherrelevant laws, regulations, and regulatory requirements to establish a corporate governance structure composed of the GeneralMeeting of Shareholders, the Board of Directors, the Board of Supervisors, and the Management, forming the "Three Meetings andOne Management"system. Based on the Articles of Association, we have developed a comprehensive governance framework thatincludes detailed rules such as the Rules of Procedure for the General Meeting of Shareholders, the Rules of Procedure for the Boardof Directors, the Rules of Procedure for the Board of Supervisors, and the Rules of Procedure for the General Manager's O?ce Meeting.Clear delineation of responsibilities and e?ective checks and balances among the shareholders'meeting, the board of directors,the board of supervisors, and the management ensure standardized business operations. We also standardize the convening andholding of shareholders'meetings, and facilitate shareholder participation and voting through online voting channels, ensuring allshareholders fully exercise their rights to be informed, to participate, to vote, and to supervise on major corporate matters, therebysafeguarding their legitimate rights and interests.
Governance Structure and Mechanisms
Board of Supervisors
Shareholder's
MeetingBoard of Directors
Audit and Risk Control CommitteeRemuneration and Appraisal Committee
Nomination CommitteeBudget CommitteeStrategy and Sustainability CommitteeFunctional ManagementDepartments
Management team
Business Segments
Party Committee O?ce
CEO O?ceHR Department
Strategic InvestmentManagement Department
Financial BudgetDepartment
Finance Department
Internal Control and AuditDepartment
Digital IntelligenceTechnology
Electronics Technology
Supply Chain
Automotive DealershipRisk Management andCompliance Department
Legal department
Supervision O?ce
Securities DepartmentDigital ManagementDepartment
Safety and EnvironmentalManagement Department
1920
Xindeco2024 Sustainability Report
In 2024, we completed the renaming and functional adjustment of the professional committees under the board of directors. Thestrategy committee was renamed the strategy and sustainability committee, with its responsibilities expanded to include research,analysis, and evaluation of our sustainability, as well as issues related to environmental, social, and governance matters, andproviding corresponding recommendations. The audit committee was renamed the audit and risk control committee, with itsresponsibilities expanded to include overseeing the implementation of comprehensive risk management work by our managementteam, in addition to its original ?nancial supervision duties. We have set up the strategy and sustainability committee, the audit andrisk control committee, the nomination committee, the remuneration and appraisal committee, and the budget committee, all ofwhich diligently perform their duties in accordance with relevant laws, regulations, and internal rules. These committees conductresearch on relevant sustainability topics, jointly guide and supervise the management of sustainability issues, and provide supportfor the board of directors in making informed decisions.In 2024, we formulated documents such as the "Certi?ed Public Accountant Firm Selection System" and the "Comprehensive Risk ManagementSystem," and revised internal governance documents including the "Articles of Association," "Shareholders' Meeting Rules," "ImplementationRules for the Board of Directors' Special Committees," "General Manager's O?ce Meeting Rules," "Management of Shares Held by Directors,Supervisors, Senior Executives, and Changes in Those Shares," "Accountability System," "Independent Director Annual Report Work System,""Management of Raised Fund Utilization," "Investor Relations Management System," and "Derivative Investment Management System,"continuously improving our corporate governance structure and internal control systems. We held a total of 16 board meetings, 7 supervisoryboard meetings, 5 shareholder meetings, 9 audit and risk control committee meetings, 6 strategy and sustainability committee meetings, 2nomination committee meetings, 6 remuneration and appraisal committee meetings, and 3 budget committee meetings.
We clarify the nomination and selection procedures for directors and senior management through governance documents suchas the "Articles of Association" and "Nomination Committee Implementation Rules." The board of directors has established aNomination Committee responsible for researching the selection criteria and procedures for directors and senior management,and providing recommendations. The Nomination Committee selects and reviews candidates based on diversi?ed factors such aseducational background, professional expertise, and work experience, assessing their quali?cations for the role. After the board ofdirectors reviews and approves the candidates nominated by the Nomination Committee, directors are elected by shareholders'meetings, while senior management is appointed by the board of directors after review and approval.
The board of directors consists of 9 members with diverse professional backgrounds,including business management, economics, law, and ?nancial accounting. Theybring extensive experience in operations management, risk control and compliance,and ?nancial management. Among them, 3 are independent directors, making up
33.33% of the board. These independent directors are seasoned professionals in
?elds such as ?nancial accounting and business management. As the conveners ofthe audit and risk control committee, nomination committee, and remuneration andappraisal committee, the independent directors diligently ful?ll their duties and playan active role in the operation of each specialized committee.
The senior management teampossesses extensive experiencein operations management, riskcontrol and compliance, and?nancial management, withexpertise covering various ?eldssuch as business management,?nancial accounting, and law.
To continuously enhance our directors, supervisors, and senior management's performance capabilities, we organized ?ve trainingsessions in 2024, including interpretations of the new Company Law and ?nancial topics, hosted by the Listed Company Associationof Xiamen. Additionally, our directors, supervisors, and senior management participated in ?ve sessions of the Xiamen regional listedcompanies'training series.
Appointment of Directors and Senior Management
Diversity and Specialization
NameOccupationAge
Professional BackgroundBoard Committees
Attendance
（Boardmeetingsand Boardcommitteemeetings）IndustryExperience
OperationsManagement
RiskManagementandCompliance
FinancialAccounting
StrategyandSustainabilityCommittee
Audit andRisk ControlCommittee
Remunerationand AppraisalCommittee
BudgetCommittee
NominationCommitteeWangMingcheng(Male)
Chairman55●●●●●100%Zeng Yuan(Male)
Director43●●●●●100%Su Yi (Male)Director35●●●100%
WuXiaoqiang(Male)
Director46●●●●100%Li Yong (Male)
Director51●●●100%ZhangWenna(Female)
Director45●●●100%Liu Dajin(Male)Independent
Director
59●●●●100%ChengWenwen(Male)Independent
Director
60●●●●100%YuanXinwen(Male)IndependentDirector
62●●●100%Jiang Feng(Male)
VicePresident
49●●/Lin Weiqing
(Male)
VicePresidentand CFO
54●●/WangXiaoshun(Male)
VicePresidentand BoardSecretary
43●●●/Xie Haisu
(Male)
VicePresident
52●●/
厦门信达2024年度可持续发展报告Sustainability-Related Governance
2122
The compensation of our directors is implemented according to the standards approved bythe shareholders' meeting and the compensation of senior management is proposed by theRemuneration and Appraisal Committee of the Board of Directors based on factors such as thepositions, the responsibilities, market salary trends, etc., and is subject to annual performanceassessment and performance-based rewards based on the company's performance for that year.The proposal is then reviewed and approved by the board of directors.To establish a sound incentive and restraint mechanism aligned with our development strategy,fully motivate our directors and senior management, and e?ectively align their interests withthose of our shareholders to drive long-term value growth, we have formulated and implementedthe "2020 Restricted Stock Incentive Plan" and the "2022 Restricted Stock Incentive Plan."
To regulate related-party transactions and ensure that such transactions do not harm the legitimate rights and interests of thecompany and non-a?liated shareholders, we have developed the "Related-Party Transaction Management System" in accordancewith relevant laws, regulations, and our Articles of Association. During the review and decision-making process of related-party
To prevent con?icts of interest and ensure that directors' duties are not a?ected by such con?icts, we have clearly outlined the?duciary duties of directors in our Articles of Association. Speci?cally, without the approval of the shareholders' meeting, directorsare prohibited from using their position to seize business opportunities that rightfully belong to the company or to engage in businessactivities that are similar to those of the company, either for themselves or for others.
We actively engage in investor communication through various channels, such as investorhotlines, email, investor surveys and on-site visits, shareholder meetings and performancebrie?ngs, roadshows, and the "Interactive Easy" platform on the stock exchange, providinginvestors with diverse ways to enhance their understanding of the company. In 2024, wefocused on media monitoring and investor call handling, promptly responding to investorconcerns via the "Interactive Easy" platform. We answered over 100 investor hotline callsand addressed 128 investor inquiries on the platform. We also participated in the Xiamen-listed companies' 2023 Annual Investor Online Collective Reception Day, engaging in "one-to-many" communication with investors on topics such as 2023 operating performance,corporate governance, and development strategy.
Detailed Shareholding of Directors and Senior Management
Compensation of Directors and Senior Management
Related-Party Transaction
Con?icts of Interest
Information Disclosure Management
No.NamePositionNumber of Shares Held
1Wang MingchengChairman405,0002Zeng YuanDirector03Su YiDirector04Wu XiaoqiangDirector135,0005Li YongDirector06Zhang WennaDirector07Liu DajinIndependent Director08Cheng WenwenIndependent Director09Yuan XinwenIndependent Director010Jiang FengVice President320,00011Lin WeiqingVice President and CFO135,00012Wang Xiaoshun
Vice President and Board
Secretary
191,00013Xie HaisuVice President0
We attach great importance to investor relations management. To ensure smooth communication between the company andinvestors, we comprehensively revised the "Investor Relations Management System" in 2024, taking into account the actual situation.We have established and improved the investor relations management mechanism, clari?ed the basic principles of investor relationsmanagement, key communication content, working methods, communication channels, organizational structure and functions, aswell as information disclosure channels, in order to guide and regulate investor relations management and safeguard the basic rightsof investors.
Investor Relations Management
We adhere to relevant regulatory rules and the provisions of the "Information Disclosure A?airs Management System" to emphasizeinformation disclosure management. We ful?ll our information disclosure obligations in terms of scope, deadlines, and procedures,providing all investors with truthful, accurate, timely, and comprehensive company information to ensure that all investors haveequal and timely access to relevant content, safeguarding their right to information and other related rights.Investor Communication
As of December 31, 2024, ourdirectors and senior managementcollectively held 1,186,000 shares ofthe company, accounting for 0.18%of the total share capital.
transactions, we e?ectively implement a con?ict-of-interest voting mechanism. For related-party transactions that meet certaincriteria, an independent directors' meeting is convened to review the matters, with independent opinions provided on the proposals.This ensures the guidance and supervision of independent directors, protecting the interests of minority shareholders.
Answered over
investor hotline callsAddressed
investor inquiries on the platform
厦门信达2024年度可持续发展报告Sustainability-Related Governance
2324
We have consistently upheld and strengthened the leadership of the Party, with politicalconstruction as the core focus, and have comprehensively advanced all aspects of Partydevelopment. We fully leverage the leadership role of the Party Committee, the battleground roleof grassroots Party organizations, and the exemplary role of Party members. We continuouslyimprove the functions of Party organizations and enhance the quality of Party building work,providing important support and guarantee for the company's strategic transformation and high-quality development through high-quality Party construction.We adhere to the principle of integrating the strengthening of the Party's leadership with theimprovement of corporate governance, ensuring that the Party committee takes the lead informulating the principles and directions on key matters such as the company's strategy, businessplanning, corporate restructuring, organizational structure, and important regulatory systemdevelopment, as well as the pre-research and discussion mechanism for "Major decision-making,Major personnel appointments and dismissals, Major project investment decisions, and Large FundUtilization" issues. This approach continuously improves the corporate governance system ande?ectively enhances centralized leadership and scienti?c decision-making. In 2024, we revised the"Party Committee Meeting Rules," dynamically adjusted the "Pre-research and Discussion List of MajorOperational Management Issues," optimized the decision-making process, and improved decision-making e?ciency and quality to mitigate decision-making risks. A total of 35 Party committee meetingswere held, during which 181 "Major decision-making, Major personnel appointments and dismissals,
The Party Building
Major project investment decisions, and Large Fund Utilization"issues were studied, and 135 major operational managementissues were discussed in advance.We continuously optimize the structure of our Party organizationin line with the company's business development, strengtheningthe grassroots Party organization and building strong grassrootsfortresses. In 2024, we followed organizational restructuringand completed the election of 8 Party branches and thesupplementary election of 3 Party organizations. We organizedParty and disciplinary inspection personnel training andcomprehensively strengthened the grassroots Party cadresthrough methods such as "theoretical study + special discussions+ joint learning." We also continued to promote the developmentof the Party building brand by launching the "New Dike" StrivingPigeon Party Building brand image and pushing forward the"one branch, one brand" initiative. We newly created the "Smart
Planet" Party building brand, forming a "1+9" brand matrix withthe "Striver" brand as the core.The Party Committee continues to strengthen talent teambuilding by improving the selection and appointmentmechanism, as well as implementing measures such astalent training and exchanges to cultivate a high-quality andhigh-level talent pool. In 2024, we revised the "ManagementMeasures for the Selection and Appointment of Cadres"and the "Management Measures for the Selection andCultivation of Outstanding Young Cadres." Through top-down recommendations, organizational recommendations,and market recruitment, we selected and appointed middle-level and young cadres. We also organized exchanges anddiscussions for young cadres, as well as talent rotation andjob exchange programs, ensuring talent reserves for thecompany's high-quality development.
Held party committee meetings
in total"Major decision-making, Majorpersonnel appointmentsand dismissals, Major projectinvestment decisions, and LargeFund Utilization" issues studied
in totalMajor operational managementissues discussed in advance
in total
厦门信达2024年度可持续发展报告Sustainability-Related Governance
Party A?airs and Discipline Inspection Supervision Cadre Training
Party Discipline Study and Education
2526
ENVIRONMENT
·Continue to increase investment in the R&D of green products·Promote green production methods to reduce costs and improve e?ciency·Develop and promote net zero demonstration projects·Promote the reuse of reclaimed water and strengthen the recycling of water resources·Avoid conducting business activities in areas with important ecological functions or sensitive and fragile environments·Ensure environmental compliance and achieve pollutant discharge standards·Continuously improve the recycling rate of general waste
⊙2024 Management Targets for Environmental Matters
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
Climate ResponseFacing the growing severity of global climate change, which poses serious threatsto human well-being and the Earth's ecosystems, we remain committed to a greenand low-carbon development philosophy, and continuously introduce and developinnovative digital technologies to drive the transformation of our industrial chaintoward greener and lower-carbon practices. We actively expand into green industriessuch as green mobility services and scrap steel recycling to reduce resourceconsumption. We are steadily advancing the transition to sustainable production andlifestyles, while continuously strengthening our resilience to climate change challenges.
We actively respond to natioanl carbon peaking and carbon neutrality goals and the global temperature control targets set under the ParisAgreement. Based on our own operational realities, we have established carbon peaking and net zero targets: to peak carbon emissionsby 2030 and to reach the net zero emissions by 2060. To achieve these strategic goals, within the framework of lTG Holding's Net ZeroStrategy,we have referred to the "Corporate Net Zero Pathway - Delivering the Paris Agreement and the Sustainable Development Goals"released by the United Nations Global Compact (UNGC), and formulated ?ve key carbon reduction initiatives to drive progress toward ournet zero vision.
Climate Strategy
We incorporate green design principles into all stages of the product lifecycle, developingand designing more sustainable products to minimize greenhouse gas emissions duringthe product usage phase.
We align our operations with sustainable development principles and implementinitiatives such as eco-friendly o?ce practices and ecological conservation, whilesimultaneously fostering economic growth and collaborating to safeguard the planet.
We innovatively create open, shared, and sustainable digital platforms to provide digitalsolutions for the industry, helping upstream and downstream enterprises in the supplychain improve quality and e?ciency.
We actively engage in green industries such as green transportation services and scrap steelrecycling, promote the circular economy, and build a sustainable industrial system withcharacteristics of low-consumption, low-emission, and high-e?ciency.
We increase the use of renewable energy sources such as solar power in our operations,reduce the consumption of fossil fuels, and drive the sustainable transformation of the energystructure.
Designing Sustainable Products
Facilitating Supply Chain Decarbonization
Utilizing Renewable Energy
Developing Sustainable Industries
Executing Sustainable Actions
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
We adhere to a scienti?c and systematic approach to identifying and assessing climate-related risks and opportunities. Drawing on scenariomodels developed by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), we identify andevaluate the physical and transition risks and opportunities that our business may face in the short, medium, and long term as a result ofclimate change. Based on these assessments, we formulate corresponding risk response strategies to better manage climate-related risksand seize transition opportunities under the trend of sustainable development.
Climate-Related Risks, Opportunities,and Financial Impacts
We selected the very low GHG emissions scenario (SSP1-1.9) andthe high-growth, high-carbon emission scenario (SSP5-8.5) fromthe IPCC's Shared Socioeconomic Pathways (SSP) to identify andassess climate-related risks to our business development in theshort, medium, and long term.According to the IPCC's Sixth Assessment Report: Comparedto 1850-1900, global surface temperature averaged over 2081-2100 is very likely to be higher by 1.0℃ to 1.8℃ under the very
low GHG emissions scenario considered (SSP1-1.9), the likelyglobal mean sea level rise is 0.28-0.55 meters, and the averageannual global land precipitation is projected to increase by 0-5%.Compared to 1995-2014, the global surface temperature is verylikely to be higher by 3.3℃ to 5.7℃ by 2100 under the very highGHG emissions scenario (SSP5-8.5), the likely global mean sealevel rise is 0.63-1.01 meters, and the average annual global landprecipitation is projected to increase by 1-13%.
Physical Risks
Physical Risk Assessment
Physical Risk Management
Physical RisksImpact PeriodResponse Measures
Floods and TyphoonsDamage to urban infrastructure andimpacts on human well-being andhealth, particularly in coastal cities andresidential areas.
Short-term,Medium-term,and Long-term
·Monitor and promptly issue typhoon warninginformation, reasonably adjust productionschedules, stock necessary supplies, and ensure the stable operation of production lines.·Strengthen and protect key buildings andinventories, and relocate vulnerable inventory itemsto safe locations in a timely manner to prevent damage from strong typhoons and heavy rainfall.·Implement a graded management system for ?oodsand typhoons, classifying the severity and scopeof damage into four levels (Level I, II, III, and IV), andorganize emergency support, rescue, and recovery accordingly.·Establish and continuously improve emergencyresponse plans for typhoon and ?ood prevention,and regularly organize emergency drills foremployees to enhance emergency management capabilities.Sea Level RiseLoss of human and natural systems inlow-lying coastal areas, reduction ofcoastal ?shery resources, decreasedprecipitation, and rising temperatures.
Medium-termand Long-term
·Regularly monitor meteorological and oceanicchanges, and relocate or renovate assets that may be a?ected by sea level rise for protection.·Avoid new investments or construction in low-lying areas or regions vulnerable to sea level rise.Extreme HeatIncreased stress and mortality amongpeople due to higher temperatures andextreme heat events, higher rates of heat-related mortality and morbidity amonghumans and wildlife, and heightenedrisks to food and water security.
Short-term,Medium-term,and Long-term
·Reasonably arrange employees' working hours toavoid physical labor or outdoor operations duringperiods of extreme heat, thereby reducing the risk of heatstroke.·Install air conditioning, fans, and other coolingequipment in workplaces to provide employees with a comfortable working environment.DroughtsShortages of freshwater resources andreduced surface water supplies foragricultural irrigation and other humanuses.
Short-term,Medium-term,and Long-term
·Improve systems and measures for water resourceconservation and enhance the e?ciency of water recycling and reuse.·Regularly conduct water conservation trainingfor employees, promote the use of water-saving technologies and equipment, and reduce water waste.Extreme High ImpactExtreme Low ImpactLow ImpactMedium ImpactHigh Impact
Climate-related Risks
Current
Status
2030年2050年SSP1-1.9SSP5-8.5SSP1-1.9SSP5-8.5Floods and TyphoonsDamage to urban infrastructure andimpacts on human well-being and health,particularly in coastal cities and residentialareas.Sea Level RiseLoss of human and natural systems in low-lying coastal areas, reduction of coastal?shery resources, decreased precipitation,and rising temperatures.Extreme HeatIncreased stress and mortality amongpeople due to higher temperatures andextreme heat events, higher rates of heat-related mortality and morbidity amonghumans and wildlife, and heightened risksto food and water security.
DroughtsShortages of freshwater resources andreduced surface water supplies foragricultural irrigation and other humanuses.
Climate-related Risks
Current
Status
2030年2050年SSP1-1.9SSP5-8.5SSP1-1.9SSP5-8.5
Extreme High ImpactExtreme Low ImpactLow ImpactMedium ImpactHigh Impact
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
Transition Risk Management
Transition RisksImpact PeriodResponse Measures
Macroeconomic trends and policyadjustments in the industry
Short-term,Medium-term,and Long-term
Closely monitoring domestic and international policyadjustments and industry developments, strengtheninganalysis of foreign exchange and commodity market trends,and prudently using ?nancial derivatives to hedge againstexchange rate and price risks.Continuously enhancing the risk management system andactively preventing and mitigating potential risks. Acceleratingbusiness model transformation to align with policy directionsand industry trends, while enhancing quality and e?ciency toensure steady business growth.Regulatory pressure from GHGemission reduction policies
Short-term,Medium-term,and Long-term
Implementing ?ve carbon reduction initiatives by designingsustainable products, facilitating supply chain decarbonization,utilizing renewable energy, developing sustainable industries,and executing sustainable actions to reduce greenhouse gasemissions and drive the industry's shift toward low-carbongrowth.Requirements for clean technologyinnovation and energy transition
Short-term,Medium-term,and Long-term
Keeping pace with market trends, accurately responding topolicy directions, strengthening investment in independentR&D, and continuously innovating products while meetingcustomer and market needs. Enhancing R&D capabilities andproduct technology levels, and meeting the requirements forclean technology innovation and energy transition.Growing market demand forsustainable products and services
Short-term,Medium-term,and Long-term
Closely aligning with industry and market demand, steadilyexpanding production capacity, and developing nicheapplication markets through both organic growth and externalexpansion. Strengthening analysis of the industry value chainand business models, optimizing brand deployment, anddriving cost reduction, e?ciency improvement, businessgrowth, and enhancement of user value.
In accordance with the requirements of ISO14064-1:2018, we have conducted the GHGinventory for 2024 using the operational control approach for the entities over which thecompany has operational control.
We have set carbon peaking and net zero targets:
Climate-related Metrics and TargetsThe IEA scenarios include the Stated Policies Scenario (STEPS), the Announced Pledges Scenario (APS), as well as the SustainableDevelopment Scenario (SDS) and Net Zero Emissions by 2050 Scenario (NZE). We combine the NZE and the STEPS within the IEA scenariomodel to assess the transition risks and opportunities for our future development posed by climate policies and measures. Correspondingmeasures are formulated to achieve sustainable development under climate-related transition risks and opportunities.According to the IEA's "World Energy Outlook" (WEO): Under Net Zero Emissions by 2050 (NZE) Scenario, the global energy-relatedcarbon emissions reach net zero by 2050, limiting the rise in global temperatures to 1.5°C. Under the Stated Policies Scenario (STEPS),which considers only speci?c policies already enacted or announced by governments, annual carbon emissions from energy andindustrial processes will increase from 34 gigatonnes in 2020 to 36 gigatonnes in 2030, remaining at roughly the same level until 2050.If emissions continue along this trajectory and non-energy-related greenhouse gas emissions follow a similar trend, the temperaturewill rise by approximately 2.7℃ by 2100 (with a 50% probability). By 2050, the share of renewable energy in global electricitygeneration will be close to 55%.
Transition Risks
GHG Emissions Management
The Organizational
Boundary for GHG
Inventory
Digital IntelligenceTechnology SegmentAutomobileDealership Segment
Other InvestmentCompanies
Owned and LeasedBuildingsOwned and LeasedBuildings
Owned and LeasedBuildingsOwned and LeasedBuildingsOwned and LeasedBuildingsO?cial VehiclesO?cial Vehicles
O?cial Vehicles
O?cial VehiclesO?cial VehiclesWarehouse OperationsEquipment
OrganizationalBounry
OperationalBoundary
Xiamen Xindeco Ltd.
To peak carbon
emissions by
Reach the net zeroemissions by
实现碳中和愿景
Supply ChainSegment
ElectronicsTechnology Segment
20302060
到
2060
年前
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
Our greenhouse gas inventory scope for2024 includes Scope 1 direct emissionsand Scope 2 indirect emissions. Scope 1covers emissions from the combustionof natural gas boilers, vehicles, and othercombustion facilities, while Scope 2includes greenhouse gas emissions frompurchased electricity. The speci?c detailsof our greenhouse gas inventory scope for2024 are as follows:
Scope 1
Direct Greenhouse Gas Emissionsrefer to the greenhouse gas emissionsproduced by the organization itself,including the emissions generatedfrom burning fossil fuels and industrialprocesses. They are divided intostationary combustion emissions,mobile combustion emissions, processemissions, and fugitive emissions.
·Natural gas boiler·Gasoline business vehicles·Diesel business vehicles
Scope 2
Indirect Greenhouse Gas Emissionsrefer to the greenhouse gas emissionsgenerated from the energy consumedby the organization, such as electricityand thermal energy. This includespurchased electricity, purchasedsteam, and others.
·Electricity for production·Electricity for o?ce use
De?nition
Primary GHGEmission SourcesGHG CategoryThe OperationalBoundary for GHGInventory
2024 GHG Emissions
Scope 1: Direct Emissions（tCO
e）1,594.001,560.131,445.97Scope 2: Indirect Emissions（tCO
e）24,981.8027,170.7724,375.33Total Emissions（tCO
e）26,575.8028,730.9025,821.30Emission Intensity（tCO
e/hundred-million RMB of operatingrevenue）
28.2740.1658.97
Scope 1：Direct Emissions（tCO
e) Scope 2：Indirect Emissions（tCO
e) Emission Intensity（tCO
e/ hundred-million RMB of operating revenue）
GHG Emissions
2022
Unit：tCO
eUnit：tCO
e/hundred-million RMB of operating revenue
20232024
Seven types of greenhouse gases incuding carbon dioxide (CO
), methane (CH
), nitrous oxide(N
O), hydro?uorocarbons (HFCs), per?uorocarbons (PFCs), sulfur hexa?uoride (SF
), andnitrogen tri?uoride (NF
).
For di?erent emission sources under Scope 1 and Scope 2, we select appropriate emission factorsfor GHG emissions calculation based on the 2006 IPCC Guidelines for National Greenhouse GasInventories, the General Rules for Calculation of the Comprehensive Energy Consumption (GB/T 2589-2020), and the 2022 electricity emission factor released by the Ministry of Ecology andEnvironment.
In 2024, our GHG emissions (including GHG Scope 1 and Scope 2) amounted to 25,821.30 tCO
e,with an emission intensity of 58.97 tCO
e, per hundred million RMB of operating revenue.
GHGCategories
EmissionFactor
GHGEmissions
2022 EmissionsCategory2023 Emissions2024 Emissions
30,000.0025,000.0020,000.0015,000.0010,000.005,000.00
0.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
27,170.77
1560.13
24,375.33
1,445.97
1,594.00
24,981.80
28.27
40.16
58.97
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
In the process of product research, development, and manufacturing, we are committed tointegrating green design principles throughout all stages of the product lifecycle. We focus ondesigning and developing more sustainable products, reducing greenhouse gas emissions duringthe usage phase, and promoting carbon neutrality across the entire value chain.
We are committed to improving capabilities of building open,shared, and sustainable digital platforms, continuously promotingenterprise digitalization in the integrated supply chain, exploringthe application of new technologies such as the Internet ofThings, Internet, and robotic automation, and assisting in thegreen transformation and upgrading of the supply chain.
Our paper-based antenna RFID tag products have undergonecarbon footprint assessments by Carbon Footprint Ltd andhave been honored with the "Most In?uential InnovativeProduct Award" in the China Internet of Things (RFID) industry.These products, independently developed by our company,eliminate non-degradable PET materials in favor of FSC-certi?ed paper substrates and employ production processesthat meet green environmental standards. This approachachieves the environmental goals of being "degradable,recyclable, and reducing consumables," while also enhancingthe conductivity and stability of the tags, lowering energyconsumption, and supporting green manufacturing.Approximately 60% of the greenhouse gas emissions fromour three types of tag products originate from the rawmaterial acquisition stage, making it a critical area for carbonreduction. Given that nylon material RFID washable labelsemit about 38% more greenhouse gases than satin materialRFID washable labels, we have developed a plan to graduallyreplace nylon washable labels and are promoting the researchand development of green washable label raw materials,striving to create high-quality, green, and low-carbon products.In 2024, Xiamen Xindeco IoT invested in and commencedthe construction of the Xindeco Intelligent Technology Park
project to create a modern industrial park. The project coversapproximately 29,100 square meters, with a total constructionarea of 77,800 square meters, incorporating an RFID researchand development laboratory, green intelligent workshops,o?ce buildings, and supporting facilities. Upon completion,the Xindeco Smart Technology Park will further enhance ourmarket competitiveness.
Our ?xed LED lighting products have received the China Energy Conservation Certi?cation from the China Quality Certi?cation Center(CQC). These products o?er advantages such as energy e?ciency, extended lifespan, and environmental friendliness. Comparedto traditional lighting technologies, LEDs provide higher luminous e?cacy, enhanced durability, and stability, ensuring long-termreliable illumination for users. Additionally, LED products are free from hazardous heavy metals like mercury, do not emit dangeroussubstances during use, and have minimal environmental impact upon disposal.
In alignment with the principles of green and low-carbon development, we are committed to implementing comprehensive energy-saving and emission-reduction initiatives including designing sustainable products, facilitating supply chain decarbonization, utilizingrenewable energy, and developing sustainable industries to improve resource and energy e?ciency. Through these e?orts, we striveto enhance resource and energy e?ciency, achieve cost reduction and operational excellence, minimize greenhouse gas emissions,and ful?ll our commitment to national carbon peaking and carbon neutrality goals as well as global climate objectives.DesigningSustainableProducts
Facilitating Supply ChainDecarbonization
Xindeco Intelligent Technology Park
Intelligent Retro?t of Xiamen Municipal Road Lighting
The energy-saving and intelligent LED street lamp appliedin the ?rst phase of Xiamen's municipal road lighting,integrates advanced technologies such as self-cleaning,high heat dissipation, and intelligent light distribution.These lights are equipped with remote control and self-diagnostic functions, allowing brightness adjustmentsbased on community needs and real-time fault reporting,thereby enhancing maintenance e?ciency. The energy-saving rate of these products exceeds 50%, leading toan annual reduction of approximately 25.65 millionkilowatt-hours of electricity consumption in municipalroad lighting. This reduction is equivalent to savingabout 3,152 tons of coal equivalent and decreasinggreenhouse gas emissions by 14,408 tons, supportingXiamen's commitment to green and low-carbon urbandevelopment.
Intelligent Retro?t of Xiamen Municipal Road LightingHighlight
Paper-based Antenna RFID Tag
Fixed LED ?xtures
GHG Emission Reduction Actions
The project covers approximately
29,100
square meters
An annual reduction of approximately
25.65
million kilowatt-hours of electricityconsumption in municipal road lighting
This reduction is equivalent to saving about3,152
tons of coal equivalent
Decreasing greenhouse gas emissions by14,408
tons
With a total construction area of77,800
square meters
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
Xindeco E-sign System continues to enrich internal single-signature scene applications. Building on the electronic signature oftrade delivery notes, all inbound and outbound documents in the self-managed steel warehouse have been electronically signed,e?ectively standardizing the signature process. By promoting dual-signature scenarios upstream and downstream, the systemreduces o?ine paper circulation for customers, achieves paperless o?ce operations, saves resource consumption, and promotes low-carbon transformation and development of the business. Currently, the average monthly signature for the supply chain electronicsignature system has exceeded 5,200 copies.
The Intelligent Warehousing System aims to establish a uni?edstandard system for intelligent warehousing, strengthen upstreamand downstream collaboration, enhance industrial integrationand operational control, and, relying on data interconnectionthrough the network business order platform, optimize warehouseresources and provide personalized services. In 2024, we tookXindeco Hongda Warehouse as a pilot, comprehensively upgradedthe intelligent warehousing system, added automatic weighing andearly warning functions, compared data in real time, and handledexceptions promptly, e?ectively solving the contradictions betweenbusiness e?ciency and risk control, personnel requirements, andbusiness transformation. In addition, the system records manualintervention details, which can e?ectively reduce the risk of falserecords and forged documents. The application of the system has
Intelligent Warehousing System
BMW GREEN STAR Dealer
Intelligent Warehousing System Implemented at Xindeco Hongda Warehouse
Xindeco Tongbao Automobile activelypractices the "360-degree Circular CarbonReduction" concept. The companyimplements four key measures of creatingenergy usage reports, signing a 24/7 PowerPurchase Agreement (PPA), procuring greenelectricity and carbon o?sets, and usingdistributed renewable energy to achieverenewable energy transition.
We promote the use of renewable energy sources such as solar and wind power in ouroperations, gradually reducing the use of fossil fuels and other non-renewable energysources, and driving the transformation of our energy structure.
We seize the transformation opportunities brought by sustainability risks, actively investin sustainable industries such as green mobility services, and build a low-consumption,low-emission, and high-e?ciency sustainable industrial system to achieve high-qualitydevelopment.
UtilizingRenewable Energy
DevelopingSustainableIndustries
Xindeco E-sign System
Intelligent Warehousing System
Green Electricity
Sustainable Transport with New Energy Vehiclessaved labor costs and also achieved precise optimization of supplychain management through quantitative analysis, promoting costreduction and e?ciency improvement.
We continue to respond to nationalenvironmental protection requirementsand actively advocate for greentransportation, striving to build a greenmobility ecosystem. In 2024, we openedmultiple new energy vehicle (NEV) branddealerships, experience centers, andbody and paint centers. At the same time,several of our 4S stores introduced andbegan selling pure electric and plug-inhybrid electirc vehicles.In addition, we have cumulatively built three public charging stations for new energy vehicles, with 44 charging terminals and atotal installed power of over 2,600 kWh. In 2024, we supplied 2.407 million kWh of electricity to new energy vehicle owners.
New Energy Vehicle Dealerships
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
PAS 2060 - Carbon Neutrality Veri?cation forXindeco Tongbao Automobile's 4S Dealership
Xiamen Xindeco IoT drives its green production concept through technologicalinnovation, signi?cantly reducing energy consumption and greenhouse gas emissionsby implementing smart upgrades, process optimization, and resource-intensiveapplications, e?ectively advancing the achievement of sustainable development goals.
Our subsidiary, Xindeco Tongbao Automobile, continues to advance its green and sustainable transformation. Through a series ofinitiatives in daily operations, it actively explores greenhouse gas reduction potential and is building a "zero-carbon 4S dealership,"achieving PAS 2060 - Carbon Neutrality veri?cation.Two production steps were streamlined into a singlemolding process, reducing equipment start-stopfrequency by over 30%. Energy consumption and idlelosses were lowered, product yield improved by 15%,and approximately 500 kilograms of waste is expectedto be reduced annually, equivalent to a 0.28-tonreduction in greenhouse gas emissions.
TechnologyInnovation forGreen Production
ExecutingSustainable Actions
In 2024, several green and energy-saving projects were carried out
Fiducial mark printing on backing paper replacedtraditional composite processes, reducing equipmentstart-stop frequency by 60% and minimizing materialloss caused by size deviations. Taking the vortex004as an example, the scrap rate dropped from 0.54%to 0.05%, saving 10,000 meters of backing paper,equivalent to 0.4 tons of pulp.
The TID chip inspection process was shifted forwardto the binding stage, enabling early detection andinterception of defective chips, reducing rework andscrap rates, and lowering energy consumption duringchip replacement by approximately 1%.
Automated web guiding replaced manual operations,improving slitting precision to ±0.1mm, reducingpaper waste by 12%, and saving more than 0.3 tons ofpaper annually.
We align our operations with sustainable development principles and implementinitiatives such as eco-friendly o?ce practices and ecological conservation, whilesimultaneously fostering economic growth and collaborating to safeguard the planet.
·High-e?ciency lighting and sanitary ?xtures are used, with intelligent zoning controls to enhance energy savings.·The showroom's glass curtain walls are made of environmentallyfriendly, energy-e?cient materials to maintain indoor temperature stability, improve energy e?ciency, and reduce greenhouse gas e missions.·Drinking water for customer reception is provided through puri?cationsystems and served in glass cups, reducing the use of bottled water and PET materials.·Special EHS inspections are conducted to promote green after-sales services.
Innovating EAS Tag Prototyping Process
Optimizing TID Screening Process forState Grid Products
Applying Fiducial Mark Printing Technology onBacking Paper
Upgrading the Auto Web GuidingSystem for Miosa Slitting
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
Energy UtilizationIn 2024, our comprehensive energy consumption was 6,340.63 tons of coalequivalent. In terms of the energy consumption structure, the largest sharecame from purchased electricity, accounting for approximately 89.64%.Regarding the greenhouse gas emissions from energy consumption, theemissions from purchased electricity accounted for the highest proportion,making up 94.40% of the total greenhouse gas emissions from energyconsumption for the year.We promote the use of renewable energy, such as solar power, in ourproduction operations and are gradually driving the energy transition. In2024, we used a total of 822,388.80 kWh of photovoltaic electricity, reducinggreenhouse gas emissions by 442 tons.
Energy Type202220232024
Electricity(kWh)43,804,658.5648,491,667.6346,248,893.78Gasoline（L）313,390.51426,323.85372,817.75
Diesel（L）228,202.03220,373.50204,445.83Natural Gas（m
）/170.12/Lique?ed Petroleum Gas（t）1.44//
Total///
Energy Type
2022 Total EnergyConsumption (tons of
coal equivalent)
2023 Total EnergyConsumption (tons ofcoal equivalent)
2024 Total EnergyConsumption (tons of
coal equivalent)
2024 EnergyConsumptionShare (%)
Electricity(kWh)5,383.595,959.635,683.9989.64Gasoline（L）336.62457.92400.456.32
Diesel（L）285.96276.15256.194.04Natural Gas（m
）/0.23//Lique?ed Petroleum Gas（t）2.47///
Total6,008.646,693.93 6,340.63100
2024 Energy Consumption Structure
Energy Structure
Energy Consumption(Unit:tons of coal equivalent)
■Electricity
■Gasoline
■Diesel
89.64%
4.04%
6.32%
Used a total of822,388.80
kWhof photovoltaic electricityReducing greenhouse gas emissions by
tons
8,0007,0006,0005,0004,0003,0002,0001,000
202220232024 Electricity Gasoline Diesel Natural Gas Lique?ed Petroleum Gas
5,383.59
336.62
457.92
276.15
256.19
285.96
5,959.63
400.45
5,683.99
2.47
0.23
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
We vigorously organize and participate in various environmental-themed publicwelfare activities. By conducting environmental knowledge campaigns, tree planting,and energy conservation and emission reduction initiatives, we enhance employees'environmental awareness and encourage more members of the public to engagein environmental protection e?orts, striving to promote and practice the concept ofgreen living.
Ecosystem andBiodiversity Protection
EnvironmentalCompliance Management
We always regard the protection of ecosystems and biodiversity as a crucial aspect ofour sustainable development. We strictly abide by relevant laws and regulations suchas the "Environmental Protection Law of the People's Republic of China," the "Law ofthe People's Republic of China on the Protection of Wildlife," and the "Regulations ofthe People's Republic of China on Wild Plants Protection." In our business planning,project design, and implementation, we adhere to scienti?c assessments of the naturalenvironment and strive to minimize the impact on habitats of plants and animals duringconstruction and operations through measures such as zonal protection, ecologicalisolation, and preservation of native vegetation. For areas that may be a?ected, weactively carry out ecological compensation, vegetation restoration, and soil and waterconservation e?orts, gradually restoring or enhancing local biodiversity, aiming toachieve coordinated progress between business development and ecological balance.
We abide by the "Environmental Protection Law of the People's Republic of China," the "Atmospheric PollutionPrevention and Control Law of the People's Republic of China," the "Law of the People's Republic of China onPrevention and Control of Water Pollution," the "Law of the People's Republic of China on the Prevention andControl of Environmental Pollution by Solid Wastes," and other relevant environmental laws and regulations. Acomprehensive pollutant discharge management system has been established to strictly control emissions duringoperations and minimize their negative environmental impact. For major pollutants such as wastewater, wastegas, solid waste, and noise, our manufacturing subsidiaries have formulated pollutant discharge managementsystems, including the "Wastewater Management Policy," "Solid Waste Management Policy," and the "NoiseManagement Policy." We also set annual environmental targets to reduce emissions and mitigate environmentalpollution.75% *of our manufacturing subsidiaries have obtained ISO 14001 environmental management systemcerti?cation.
Tree-Planting Activity"All-in for Green" Environmental Initiative
*Xindeco IoT Malaysia was established in December 2024 and is currently in the process of applying for ISO 14001 Environmental Management System certi?cation.
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
Water Resources UtilizationWe strictly comply with the "Water Law of the People's Republic of China," the "Lawof the People's Republic of China on Prevention and Control of Water Pollution," andother relevant laws and regulations, and conscientiously implement national waterresource management policies. A sound water resource management system hasbeen established and continuously improved to promote the rational allocation ande?cient use of water resources. In the course of production and operation, we adhereto the principle of water conservation, optimize water use structures, promote the useof water-saving equipment and e?cient processes, and reduce water consumption perunit. We also strictly follow wastewater treatment and discharge regulations by buildinghigh-standard wastewater treatment facilities to ensure stable and compliant discharge,minimizing impact on surrounding water environments. A dynamic monitoringmechanism has been put in place, with regular inspections of water supply systemsand timely maintenance to detect and repair leaks, continuously improving water usee?ciency.We place great importance on water conservation awareness and the implementationof management responsibilities. Regular training and promotional activities are carriedout to enhance employees' awareness of water conservation, and water resourcemanagement requirements are integrated into all aspects of our business operations.Strict water-saving measures are enforced across both o?ce and production sites, witha strong focus on managing non-production water use. We actively promote reclaimedwater reuse and recycling models, leveraging digital monitoring tools to implementdynamic management and achieve re?ned control of water resources. Throughcontinuous optimization of water resource utilization, we e?ectively improve water usee?ciency and minimize our impact on the aquatic environment.
Publicity on WaterResources Protection
Routine Water DispenserLeak Check
Water Conservation Reminders
Pollutant DischargeWe strictly comply with the "Environmental Protection Law of thePeople's Republic of China," the "Law of the People's Republic ofChina on Prevention and Control of Water Pollution," the "AtmosphericPollution Prevention and Control Law of the People's Republic of China,"the "Soil Pollution Prevention and Control Law of the People's Republicof China," and the "Law of the People's Republic of China on thePrevention and Control of Noise Pollution." We regard environmentalprotection as a key aspect of high-quality development. By standardizingpollutant discharge management and practicing green operationprinciples, we strive to minimize the negative environmental impact ofour business activities and achieve sustainable growth.
Wastewater generated from our operations primarily comes from the electronics technology and automobile dealership segments,while other business segments involve only domestic water usage and discharge.
we have established the "Wastewater Management Regulations" to ensure e?ective treatment ofwastewater, aiming to achieve compliant discharge and minimize its negative environmental impact.
Wastewater Discharge Management
In theelectronicstechnologysegment
For oil-containing wastewater from air compressors, we use oil-?ltering devices to treat the dischargee?ectively. The ?ltered wastewater is then discharged into the sewer system, and the ?lter pads arereplaced quarterly to maintain performance.For other types of wastewater, it is collected and directed into the domestic sewage system, where it is ?rsttreated through septic tanks before being discharged into the municipal sewer network.Routine inspections are conducted on the domestic sewage pipelines and septic tanks to monitorparameters such as pH value, color, and clarity. If abnormalities are detected in the drainage system orseptic tanks, we take prompt corrective actions and record the ?ndings in the "Domestic Sewage SystemInspection and Maintenance Log" to ensure timely resolution.
···
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
The air emissions generated from our operations mainly come from the electronics technology and automobile dealership segments.In 2024, third-party testing con?rmed that all air emissions met regulatory standards.
Air Emissions Management
Exhaust Gas Treatment Facilities
Exhaust Gas Treatment Facilities
Wastewater generated during business operations primarily includes carwash wastewater and domestic sewage. Major pollutants include anionicsurfactants, ammonia nitrogen, total nitrogen, total phosphorus, andpetroleum substances. We have installed a three-stage sedimentationsystem to ?lter wastewater from car wash areas and workshops. This systemremoves suspended solids from the water, and the treated, compliantsupernatant is discharged. Sediment from the bottom of the tanks iscleaned regularly to maintain treatment e?ciency.
Exhaust gases generated during operations mainly include benzene, toluene, xylene, and non-methanehydrocarbons from spray booth emissions. We have implemented the following measures to reduce emissions:
In theautomobiledealershipsegment
In theautomobiledealershipsegmentIn 2024, we engaged athird-party agency toconduct wastewatertesting, and all resultscon?rmed that thedischarged water metregulatory standards.
Air emissions generated during operations primarily include non-methane hydrocarbons, tin and its compounds.To manage emissions from processes such as cleaning, potting, mixing, soldering, and baking, we haveestablished the "Air Emissions Management Regulations," ensuring e?ective treatment and compliance withemission standards. Key measures include:
In theelectronicstechnologysegment
Organic volatile gases from die baking, adhesive mixing, and other processes are collected through pipingsystems and discharged from the rooftop.Tin- and lead-containing fumes generated during soldering are captured via sealed collection pipelines andtreated through an activated carbon system before being discharged upon meeting standards.Operators are required to seal volatile chemicals with lids and use low-volatility, low-hazard materials tocontrol VOC emissions at the source and minimize environmental impact.Regular maintenance and inspection of company vehicles are conducted, with annual inspections performedas scheduled to ensure optimal operation and reduce pollution.Routine maintenance and inspections are carried out based on the operating manual for the exhausttreatment system. In the event of abnormal emissions, emergency measures are taken promptly.Additionally, third-party monitoring of air emissions is conducted annually to ensure compliance withenvironmental regulations.
Spray booths remain closed during baking and paint mixingoperations, and VOC photo-oxidation puri?cation equipment is usedto minimize exhaust emissions.Activated carbon, adsorption cotton, and other ?ltration componentsin the equipment are regularly replaced to maintain treatmentefficiency. For paint shop emissions, VOC treatment systems thatmeet regulatory standards have been installed. Airborne spray fumesare directed into XHTML VOC puri?cation units through a ventilationsystem. These units apply dry filtration technology to removepaint sludge and capture ?ne particles such as paint mist, toluene,and xylene that were not filtered out earlier, effectively reducingparticulate pollution. The remaining organic exhaust is then directedinto an activated carbon adsorption zone, where the carbon capturesand neutralizes volatile organic compounds (VOCs), completingthe processes of gas-dust adsorption, capture, and odor removal.This treatment achieves a removal e?ciency of over 80% for large-molecule VOCs. The puri?ed gas is ?nally discharged through a high-level chimney via an exhaust fan, ensuring compliance with emissionstandards and e?ectively mitigating air pollution.
·····
··
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
Waste DisposalWe strictly adhere to relevant policies and regulations for waste disposal, such as the"Environmental Protection Law of the People's Republic of China," the "Law of the People'sRepublic of China on the Prevention and Control of Environmental Pollution by SolidWastes," and the "Regulations on the Transfer of Hazardous Waste." We have establisheda comprehensive waste disposal system, formulated waste management procedures, andstrictly control the discharge of various types of waste during operations. Additionally, weimplement waste reduction measures to minimize the negative impact of waste on theenvironment.
In our operations across various business segments, the general waste generated mainly includes waste paper, waste documentbags, and discarded parts. For di?erent types of general waste, we adhere to the principles of waste reduction and reuse, aiming tominimize the negative impact on the environment.
General Waste
We adhere to the principles of "reduction, generalization, and recycling " and have established a wastematerials management team to handle packaging waste and scraps to reduce material loss and costs,further standardizing the management of waste generated during production operations. For low-valuerecyclable materials, such as used cardboard, we entrust waste buyers to handle the recycling. Forwaste generated during renovation or maintenance, the corresponding project company’s responsibledepartment is in charge of disposal. For large recyclable waste materials, such as brackets, silver paste,and other temporary waste, our team has compiled a list of waste material buyers and conducts publicbidding for sales. Additionally, we have formed a "Waste Classi?cation Management Steering Group" andhold monthly coordination meetings to mobilize, educate, supervise, and report on waste classi?catione?orts. In 2024, we held 5 waste classi?cation training sessions and 4 inspections.
In theelectronicstechnologysegment
In the supplychain sector
In theautomobiledealershipsegment
Held
waste classi?cation training sessions
And
inspections
The general waste mainly includes paper, envelopes, document bags, disposable items, food packaging,discarded furniture, plant trimmings and fallen leaves, as well as construction waste. The followingmeasures are taken for management:
Implement digital o?ce practices to reduce paper usage, such as using electronic documents ande-signatures.Reduce printing and copying needs, and for necessary printouts, use double-sided printing.Prioritize the purchase of environmentally friendly materials and recyclable products, such asbiodegradable stationery and reusable o?ce supplies.Choose products with minimal packaging to reduce packaging waste.Upgrade o?ce equipment and maintain o?ce areas to extend the lifespan and e?ciency of equipment,reducing waste caused by damage or aging.Set up di?erent types of trash bins in o?ce areas to classify and collect waste, ensuring proper disposalof various waste types.Raise employees' awareness and skills in waste classi?cation through training and promotional posters,ensuring they can accurately sort waste for disposal.
·······
···
We have established policies such as the "Management Regulations on Productional and Operational Waste"and the "Management Measures for Waste Materials (Trial)" to regulate the management of waste generatedfrom our production and operations. The general waste generated during our business operations includesvehicle maintenance waste and waste paper, which are managed through the following measures:
For household waste, a waste classi?cation room is set up to separately store kitchen waste, other waste,and recyclable waste, which are then handled or disposed of by quali?ed units.A designated storage area for general waste is set up, following the principles of classi?cation and zoningwith implementation of 5S management.Recyclable general waste is entrusted to a recycling partner for collection, while non-recyclable waste isstored in the designated storage area and periodically transferred by a third-party agency.
Waste Classi?cation Training
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
The hazardous waste generated during our operations primarily includes waste lead-acid batteries, waste thinners, and waste alcoholproduced from the electronics technology and automobile dealership segments. For hazardous waste management, we implementclassi?cation and storage in designated areas, set up identi?cation labels and informational cards, and entrust quali?ed third-partyorganizations for disposal. Additionally, we conduct hazardous waste disposal training to raise employees' environmental awarenessand prevent environmental pollution caused by improper hazardous waste management.
The hazardous waste generated during business operations mainly includes waste alcohol and wastecleaning agents. We have established internal policies such as the "Hazardous Materials ManagementSystem," "Hazardous Waste Warehouse Management System," "Management System for Hazardous WastePollution," "Environmental Emergency Plan for Hazardous Waste Accidents," and "Management of DedicatedMonitoring System for Etching Room Hazardous Chemicals" to regulate the management of hazardous wasteemissions. Additionally, we have set up a "Chemical Inspection Record Form" to monitor activities related tothe procurement, storage, usage, disposal, and emergency measures of hazardous materials.
Hazardous Waste
Hazardous Waste Storage Facility
On-Site Hazardous Waste Cleanup and Management Training
In theelectronicstechnology
segment
For chemical waste liquids:
····
Classi?ed collection and storage are required, with clear labeling of types.Leak-proof and impermeable facilities are installed in the storage area of chemical waste liquid, andappropriate ?re?ghting equipment is provided to ensure safety and environmental protection.Once a certain amount of waste liquid is collected, it is legally transferred to a quali?ed third party fordisposal.Recycle chemical containers whenever possible. Containers that cannot be recycled or reused are storedin a centralized manner and a quali?ed third party is appointed for disposal.
In theautomobiledealership
segment
We have established the "Management System for Hazardous Waste Pollution," "Responsibility System forPrevention of Hazardous Waste Pollution," and "Hazardous Waste Warehouse Management System." Thehazardous waste generated during our business operations includes waste mineral oils, waste lead-acidbatteries, waste thinners (solvents and diluents used in the spray painting industry), and waste paint sludge.
·····
Continuously improve the emergency management system and ensure the integrity of emergencyfacilities and equipment to enable prompt and e?ective handling of environmental emergencies.Use water-based paints instead of oil-based paints for spray painting materials, promoting the use ofenvironmentally friendly materials.Assign a dedicated person to manage hazardous waste, ensuring that hazardous waste is strictlyclassi?ed based on its characteristics and transported in designated containers and bags.Collaborate with certi?ed units recognized by the provincial Environmental Protection Bureau of theoperating location to recycle and treat reusable hazardous waste, aiming to reduce the amount ofhazardous waste generated.Strengthen training on the collection, classi?cation, and storage of hazardous waste during production,strictly adhering to the classi?cation requirements, enhancing on-site cleaning management, andincreasing supervision to ensure standardized management of hazardous waste storage areas.
Our main management measures for hazardous waste include:
Xindeco2024Sustainability ReportPollutant DischargeEcosystem and Biodiversity ProtectionEnvironmental Compliance ManagementClimate ResponseCircular EconomyWaste DisposalWater Resources UtilizationEnergy Utilization
Environment
Circular Economy
Developing a circular economy is a key pathway for driving green transformation and achieving the carbon peaking andcarbon neutrality goals. We actively respond to national strategies, embrace the new development paradigm, and deeplyintegrate the principles of circular economy into our corporate development strategy. Through measures such as innovatingresource utilization models, optimizing production processes, and advocating for resource recycling, we are comprehensivelyadvancing resource conservation and recycling to contribute to sustainable development.
Xindeco Supply Chain Steel Center follows a comprehensive industry chain developmentstrategy and actively explores both domestic and international markets. In 2024, our scrapsteel raw material supply reached 30,900 tons.We have formed strategic alliances with leading industry players, optimizing resources andsharing with them to jointly pursue development and empower the whole industry. This hasresulted in a new pattern of complementary advantages, shared risks, and collaborative win-win outcomes. We continue to advance our self-managed warehouse projects, providingcustomers with e?cient and integrated logistics services, accelerating the extension ofthe industry chain to the physical end. By actively integrating into the country's new "dualcirculation" development pattern, we have established an overseas o?ce in Malaysiato assist in the reuse of local steel scrap resources, providing channel support for localsustainable development, and further helping Belt and Road countries enhance the breadthand convenience of trade connectivity. Our Malaysia o?ce works closely with local steelenterprises, primarily engaging in the supply of steel scrap materials and the sale of steelbillet products, committed to promoting the green development of the steel supply chain.
Our subsidiary, Xindeco Tongbao Automobile, practices the concept of green, circular, and sustainable development, advocates aculture of sustainability, and actively engages in public welfare activities for the recycling of used items. The company is committedto promoting the concept of the circular economy to the consumer end and working with our partners to promote resource recycling.
Recycling of Steel Scrap Resources
Executing Sustainable Actions
Promote paperless o?ce and digital management, reduce theuse of paper orders, and use electronic nameplates instead ofpaper ?yers.Replace the seat covers, ?oor mats, and steering wheel coversused in maintenance reception with reusable and biodegradablematerials.Utilize green building materials, green furniture, and greenworkwear while implementing waste sorting and recycling high-pressure batteries to achieve material recovery and reuse.
Resource Conservation and Recycling
Green Furniture in Xindeco Tongbao Automobile StoreScrap steel raw material supply reached30,900
tons
···
SOCIETY
·The proportion of local employees hired annually is not less than 60% (within the province)·Continue investing in innovation and R&D, with no fewer than 30 new intellectual property rightsgranted during the year and an R&D investment of no less than 40,000 thousand RMB·No intellectual property infringement incidents during the year·Further improve supply chain risk management by strengthening supplier audits and evaluationsto e?ectively mitigate supply chain risks·No incidents of overdue payments to small and medium-sized enterprises during the year·No major liability incidents related to product or service safety and quality during the year·No information security incidents or customer information breaches during the year·No penalties received due to violations of labor laws or suspected employment discriminationduring the year·No work safety accidents occurred during the year, including catastrophic, major, or generalincidents
⊙2024 Management Targets for Social Matters
Rural Revitalization andSocial ContributionsWe uphold the core values of "Leadership, Responsibilities, Hardworkingand Partnership," and actively promote the construction of harmoniousand mutually beneficial community relationships with the regionswe operate in. Leveraging our industry and resource advantages, wecontribute to rural revitalization and enhance urban and communitywell-being through industry assistance, educational support,public welfare investments, and other initiatives, fulfilling the socialresponsibility and commitment of state-owned enterprises.
We have continued to promote the "purchase instead ofdonation"consumption-based assistance mechanism,leveraging order-based agriculture to activate local resourceendowments and drive local industrial development. Guidedby the "one village, one product"strategy, we supportedJinbing Village in developing a series of "Millennia-oldJinbing"specialty agricultural product packages. This initiativefurther strengthened the connection between production andsales, directly helping farmers increase their income whileimproving standardization and branding on the productionside. It also contributed to upgrading the local agriculturalindustry chain and injecting fresh momentum into ruralindustrial revitalization. In 2024, we purchased RMB 170,000worth of specialty agricultural products from Jinbing Village,RMB 38,000 worth of Jianning yellow peaches, and carried outpoverty alleviation purchases in Ningxia, Xinjiang, and Tibet,with a total procurement amount reaching RMB 580,000.
Since August 1999, we have established the "Hand-in-Hand" charityassistance project with the Bayi Hope Primary School in Shiren Village,Changting County, Fujian Province. By 2024, the project has been runningfor 25 years. We have combined corporate funding to support the schoolwith one-on-one assistance from employees to help students, e?ectivelyaddressing the practical needs of underprivileged students.In 2024, we organized spring and autumn educational assistance activities,raising a total of 44,000 RMB for scholarships. By the end of 2024, we hadassisted 1,386 students, igniting the ?ames of education and laying a solidfoundation for talent development in rural revitalization.
The Education Flourished Far and Wide, Nurturingthe Pillars of Future Might
Rural Revitalization
We actively respond to China's ruralrevitalization strategy by establishinga targeted assistance partnership withJinbing Village in Xiang'an District,Xiamen. We assist the village intapping into its potential for ecologicalagriculture development, revitalizingand integrating various resources,and continuously enhancing its self-sustaining capabilities. We havedispatched personnel to provideon-site support, and through ?eldresearch and in-depth discussions,we collaborate with stakeholders toexplore feasible assistance measures,helping the village's collective economyachieve stable and sustainable income.
Prosperity through Coordinated Production and Sales,Bene?ting People's Livelihoods Across Vast Fields
The company's village-based cadre, together with the work team, went to the ?elds to gain a clear understandingof the village's situation and conditions
Rural Revitalization and Consumption-based Assistance
The 2024 "Hand-in-Hand" Charity Assistance Project
Purchased specialty agriculturalproducts from Jinbing Village170,000
RMB
Raised a total of44,000
RMBfor scholarships
Had assisted1,386
students
Carried out poverty alleviation purchases in Ningxia, Xinjiang, and Tibet, with a totalprocurement amount reaching
580,000
RMB
Social Contributions
On the basis of respecting and protecting the local community's cultural traditions and ecologicalenvironment, we prioritize o?ering commercial opportunities such as product and service procurement,technical support cooperation, and more to local businesses, promoting economic developmentand improving the community's living standards. We have established an open and proactivecommunication mechanism to ensure timely understanding of community needs, receive communityfeedback, and carry out targeted public welfare activities. This helps identify and eliminate any adverseimpacts of our business activities on the community, e?ectively integrating various resources withinthe community, and building an equal, respectful, harmonious, and mutually bene?cial communityrelationship. In 2024, the proportion of local employees hired by the company was 64.28%.
We use public welfare as a bond, integrating concerns for people's livelihoods into ouractions. Through diverse initiatives such as educational support, healthcare accessibility, andenvironmental improvement, we have created a warm and inclusive community network.We continuously organize various volunteer services and public welfare activities, promotingcommunity involvement, improving the community environment, and enhancing residents'quality of life, while fostering more harmonious community relationships. In 2024, we organized 65volunteer service activities, with a total of 743 volunteer participants, amounting to 1,135 hours.
Fostering Harmony Across the World,Cultivating Unity Within Communities
Good Deeds Bring Care, Promoting CommunityWell-being in Public Service
The proportion of localemployees hired by thecompany was
64.28
%
With a total of
volunteer participantsAmounting to
1,135
hours
In 2024, we focused on market demand to expand our overseas business, using Malaysia as a strategic hub to deeply develop thelocal market, build overseas production bases, and establish a global marketing network, driving our international development.Xindeco IoT Malaysia plans to build six Muhlbauer binding production lines and two Muhlbauer composite production lines.Adhering to the principle of shared development between businesses and society, we aim to promote local economic growth whilecreating more job opportunities for local residents.
Highlight
The Grand Opening Ceremony of Xindeco IoT Malaysia
Community
Volunteer
Service
Activities
"Clean Homesand CreateCivilization"Civilized PracticeActivity
"Happy Children'sDay · Fun Carnival"Themed Event
Each of our business divisions has taken on service projects,including charity assistance, caring for minors, vehicle diagnostictesting and free second-hand car evaluations, charitable visits,youth science popularization education, sports activities, and more.At the event, we combined our core business to provide communityresidents with consultation services on vehicle annual inspections,driving license replacements, insurance renewals, vehicle trade-ins,vehicle evaluations, and more. We also gave on-site presentationson car selection and safety precautions, promoting civilized travel.
We, in collaboration with the Fujian Xiamen Xianhou Library, organized the "Braiding Dreams with Bamboo, Crafting a HeartfeltJourney for Children" themed activity. Volunteers guided children from the urban villages in learning bamboo weavingtechniques and experiencing traditional craftsmanship. This event marks the fourth consecutive year that we have partneredwith the library to enrich the extracurricular life of children in the urban villages and to pass on intangible cultural heritage.
HighlightHighlight
"Lei Feng Learning Month" Campaign
"Braiding Dreams with Bamboo, Crafting a Heartfelt Journey for Children" PublicWelfare Volunteer Activity
Innovation-drivenDevelopmentInnovation is a key driving force for promoting sustainabledevelopment and enhancing competitiveness. With the mission of"Leading globally competitive industries, Creating a better life," weinvest in research and development, closely focusing on providingservices that support the innovative development of the realeconomy and assist in its transformation and upgrading.
Technological Innovation
We adhere to the integration of research and development with practical businessoperations. By systematically improving R&D management, iterating and upgradingregular market research and specialized studies, continuously developing new productsand technologies, and organizing diverse communication and discussion forums, wesupport the company's transformation, upgrading, and cost reduction while improvinge?ciency.In 2024, to further seize development opportunities, strengthen industry researchand development management, and e?ectively enhance business decision-makingand development quality, we established a dedicated R&D leadership team. The teamoversees three working groups: The Electronics Technology Business R&D Group, theBlack Materials Business R&D Group, and the Non-ferrous Materials Business R&D Group.The R&D leadership team holds quarterly meetings, while each working group convenesbiweekly meetings. Additionally, a monthly industry news newsletter is published, anda specialized research report is completed every quarter. We also organize internaland external collaborative sharing and exchange sessions on an ad-hoc basis. We haveestablished an R&D collaboration and communication mechanism, actively organizingrelevant employees to participate in various internal and external training sessions,forums, and other activities, where they can share and discuss technical standards, R&Dexperiences, and more. We have also built strong communication channels with externalorganizations to foster exchanges and interactions within the industry. In 2024, we focusedon four major business segments, including the Internet of Things, bulk commoditysupply chains, and the upstream and downstream automotive industry, participating inapproximately 84 events and organizing around 27 activities.
We fully leverage our resources, channels, and core technological advantages, continuously invest in research and development, promoteinnovation in product technology and service models, achieve specialized business development, and drive high-quality growth.R&D and Innovation Management
In 2024, Xindeco Intelligent IoT established an R&D Technology Center. Xindeco Intelligent IoT, in collaborationwith Shandong Xindeco IoT, revised technical management standards, project management procedures, and otherregulatory systems. They adopted a function-based R&D management model, dividing functions according toprofessional ?elds with clear responsibilities. This approach ensures strict control over the entire lifecycle of R&Dprojects, including initiation, planning, execution, monitoring, and closure. It standardizes the development of R&Dactivities, enhances work e?ciency, and reduces the risks associated with R&D activities.
Xindeco Electronic Information Technology adopts the IPD (Integrated Product Development) systematic R&Dphilosophy, methods, and model. Using a project-based approach, the company establishes PDT (ProductDevelopment Team) for R&D projects, forming cross-departmental project teams to ensure that project executionaligns with development plan requirements. The company has an R&D Management Department, and itssubsidiaries, Xindeco IoT and Xindeco Optoelectronics, have corresponding technical centers or departments. Weactively encourage R&D innovation and have formulated and continuously improved the "Technology AdvancementReward Management Measures." The company has established three major categories of technology advancementawards, clearly de?ning reward methods to inspire the enthusiasm and creativity of technical sta?. This encouragesthem to actively engage in R&D innovation, enhancing the company's technological innovation capabilities. We alsofocus on promoting the industrialization and marketization of R&D innovations to improve the company's marketcompetitiveness. In 2024, Xindeco IoT established the EAS+RFID Special Project Working Group, while XindecoOptoelectronics set up an R&D Innovation Group. Both entities continue to invest in R&D in speci?c ?elds and nicheproducts, improving product competitiveness and added value.
in 2024, we established the R&D departments for the Ferrous Metals Division and the Non-ferrous Metals Division.The Ferrous Metals R&D Department regularly collaborates with relevant business departments to discuss markettrends, gather market research insights, and develop strategies to respond to market conditions.
Xindeco ITG Automobile Group focuses on industry development, emerging industrial chains, andinternationalization. It has established a dedicated R&D team to de?ne R&D topics related to the automotiveindustry.
In the digitalintelligencetechnology
segment
In theelectronicstechnology
segment
In the supplychain segment
In the
automobiledealershipsegment
In 2024, we invested a total of 45,679.46 thousand RMB in R&D, which accounted for 0.1% of our main business revenue. As of theend of the reporting period, we had a total of 79 R&D personnel, making up 1.98 % of our total workforce.
The Company Organized Training Session on "GovernanceTransformation and Corporate Development of Large-Scale Conglomerates"
Xiamen Xindeco IoT Participated in the 22nd InternationalInternet of Things Exhibition
Invested a total of45,679.5thousand RMB in R&D
which accounted for
0.1
%of our main business revenue
In 2024, we continued to focus on various business segments, producing 134 industry research reports, primarily covering macroeconomicsand policy analysis, the big IoT industry and LED industry, supply chain bulk commodity research, and the upstream and downstreamautomotive industry chain. We also maintained our commitment to R&D, with 75 new product development projects initiated and 21 newpatents granted. Additionally, we received multiple honors and awards in ?elds such as data platforms, smart applications, IoT technologyR&D, intelligent system integration, and LED packaging and lighting product development.
R&D and Innovation Achievements
We continued to increase our R&D investment in areas such as big data, IoT technology, smartwarehousing, and military-civil integration. A total of 17 new R&D projects were initiated, and we wereapproved for the "Jinan Engineering Research Center-Supply Chain Intelligent Warehousing IoT Platform."We also completed the CSMM and DCMM assessments. In 2024, the Digital Intelligence Technologysegment was granted 1 new authorized invention patent.
We possess the core capabilities for independently developing and manufacturing RFID electronic tags,readers, and the associated software and hardware, as well as providing personalized, complete systemintegration solutions. Currently, Xindeco IoT's RFID electronic tag production capacity ranks amongthe leaders in the industry and can simultaneously meet the product demands of multiple global-scalecustomers. We are a leading brand in providing overall RFID solutions for the domestic footwear andapparel retail industry. In 2024, the Electronics Technology segment continued to invest in IoT technologydevelopment, LED packaging, and lighting product R&D, with a total of 79 projects initiated and 20 newpatents granted.
We launched the self-managed smart warehouse system, a monitoring and management platformdeveloped for logistics and warehouse risk control scenarios. By integrating intelligent cameras, barriergates, weighing scales, electronic cranes, AI servers, and other technologies, we utilized IoT, big data, andAI to connect both hardware and software. This system allows for automatic data collection and visualmonitoring of vehicles, goods, and personnel, enabling real-time cargo identi?cation, location tracking,and risk alerts. This ensures the authenticity, security, and reliability of physical goods transfer datawhile optimizing costs and improving e?ciency. In 2024, the Black Metal Division focused on risk controland quantitative analysis. Using Xindeco Hongda Warehouse as a pilot project, we upgraded the smartwarehouse system, adding automatic weighing and alert functions. Real-time data comparisons allow forimmediate action in addressing anomalies, e?ectively resolving con?icts between business e?ciency, riskcontrol, personnel requirements, and business transformation. Additionally, the Xindeco Cloud Businessplatform promotes collaboration with upstream and downstream partners, forming an integrated supplychain ecosystem. By evaluating and identifying low-e?ciency business scenarios, we facilitated onlinecollaboration with partners, enhancing daily operational e?ciency for customers and self-managedwarehouses.
Our digital platform covers the entire business chain of 4S stores, including potential customermanagement, vehicle sales, after-sales service management, used car management, parts procurement,?nancial management, customer service, and marketing. This enables four key integrations: integratedgroup control, integrated business operations, integrated ?nance, tax, and business operations,and integrated online and o?ine management. The digital platform has improved overall businesscollaboration and information exchange, enhancing operational management. By applying various newdigital and intelligent technologies, we have automated and optimized multiple business functions. Atthe same time, we have actively expanded into the smart marketing ?eld through the development ofmodules such as customer service, used car management, CRM, and mini-programs. This has signi?cantlyimproved e?ciency, reduced costs, and enhanced quality, leading to better results in both cost reductionand operational e?ciency.
In the digitalintelligencetechnology
segment
In theelectronicstechnology
segment
In the supplychain segment
In theautomobiledealershipsegment
In 2024, we received the following major awards intechnological innovation:
Xiamen Xindeco Ltd.
The "IT Demand Performance Improvement" project was awarded the Award of Excellence by ISPI
The "Xindeco Supply Chain Intelligent Warehousing System" was selected as one of the "Outstanding Digitalization Cases of the Supply Chain in 2023" by the Xiamen
Modern Supply Chain Federation
Xindeco's "Big Data Intelligent Analysis Platform" was awarded the "Big Data Innovation Product" award by DIIRC
The "Smart Operation and Service Digital Platform" was selected by DIIRC as an "Outstanding Digitalization Case in the Automotive Industry."
¤¤¤
Xiamen Xindeco Optoelectronics Co., Ltd.Awarded the title of "2024 Hangjia Aurora Award – In?uential Supply Chain Enterprise of the Year in RGB Packaging (Discrete Devices)" by Mini&Micro LED IndustryResearch CenterThe "LED lighting ?xture integrating anti-counterfeiting, anti-tampering, and long-distance on-site identi?cation functions" was awarded the Excellence Award in the 11thChina LED Innovation Award by SLDAThe "Top 2727 Lens Technology Project" won the "Hangjia Aurora Award – 2024 Outstanding Product Award" as evaluated by Mini&Micro LED Industry Research CenterThe "Top 2020 DCI Product" won the "Outstanding Product Award" at ISLE 2024Awarded the title of "Xindeco LED Advanced Packaging and Application Innovation Center" by the Xiamen Science and Technology Bureau
¤¤¤¤¤
Xiamen Xindeco IoT Technology Co., Ltd.
Recognized as one of the "Top 100 IoT Enterprises in China 2023" by the China Internet of Things Industry Alliance, Shenzhen Internet of Things Industry Association, and
Ulinkmedia
Awarded the title of "Passive IoT Innovation Demonstration Enterprises" by the AIoT Technology and Industry Association
Awarded the "SSCL APAC 2024 AWARDS – Best Logistics Innovation" by the Ningbo China Institute for Supply Chain Innovation, CSCMP, and TAPA APAC
The "Tea Management System Project of a Tea Group in Xiamen, Fujian" was selected as a "2023 Benchmark Case in China's IoT Industry" by the China Internet of Things
Industry Alliance, Shenzhen Internet of Things Industry Association, and Ulinkmedia
The "Ultra-thin Single-layer Liquid- and Metal-resistant Tag" won the "2024 22nd IOTE Gold Award for Innovative Products," jointly awarded by the Shenzhen Internet of
Things Industry Association and the IOTE Organizing Committee
The "Implantable Linear Tag" was awarded the "2024 Xiamen Excellent IoT Product and Application Solution" by XIOTIA
¤¤¤¤¤¤
¤
Xiamen Xindeco ITG Automobile Group Co., Ltd.
Intellectual Property Rights Protection
Responsible Sourcing
We adhere to relevant laws and regulations, such as the "Patent Law of the People's Republicof China," the "Copyright Law of the People's Republic of China," and the "TrademarkLaw of the People's Republic of China," to protect intellectual property rights, includingpatents, copyrights, and trademarks. We have established the "Trademark and BrandName Management Measures," which clearly de?ne procedures for trademark registration,modi?cation, renewal, transfer, licensing, and protection, thereby strengthening themanagement of trademarks and brand names. In 2024, we obtained 35 copyright registrationsand 21 patents. As of the end of the reporting period, we hold a total of 131 registeredcopyrights, 235 authorized patents, and 135 registered trademarks, with no intellectualproperty infringement incidents occurring.
All of our business operations are conducted in strict compliance with applicable domestic laws and regulations, as well as recognizedinternational standards and initiatives. Based on this foundation, we extend our commitment to human rights protection throughout theentire value chain, including our business partners. We advocate for a cooperative environment that is honest, transparent, equitable, andrespectful, while fostering long-term, stable relationships. We encourage each of our business segments to incorporate environmentaland social responsibility into partner evaluation criteria, and we rigorously implement the principles of green and responsible sourcing.By strengthening the evaluation mechanisms for supplier sustainability performance, we prioritize partnerships with suppliers thatdemonstrate excellence in sustainable development. Our goal is to provide customers with high-quality, responsible, and environmentallyand socially friendly products and services.In 2024, Shandong Xindeco IoT obtained the Intellectual Property Standardization Management SystemCerti?cation and continued to strengthen the development of its intellectual property managementsystem.
We adhere to the principle of responsible sourcing and promote integrity, compliance, and sustainabilitythroughout the supply chain. We require suppliers to sign the "Integrity Commitment Letter" and the"Con?dentiality Agreement" and communicate our business ethics policies to ensure a fair and just cooperationenvironment. At the same time, we encourage suppliers to continuously improve in areas such as environmentalprotection, labor rights, and occupational health and safety, working together with upstream and downstreampartners to ful?ll shared social responsibilities.We have strengthened our supply chain management by establishing transparent communication and feedbackmechanisms for suppliers. Suppliers are encouraged to report any misconduct involving procurement or relatedpersonnel directly to our General Administration Department or the Operations Compliance Department. Weare committed to working hand-in-hand with our suppliers to enhance both the stability and compliance of thesupply chain, while jointly advancing the practice of responsible sourcing.
Xindeco Electronic Information Technology places great importance on intellectual property protection.The R&D Management Department is responsible for intellectual property management functions andhas developed the "R&D Project Management Measures" to regulate the management and con?dentialityof R&D projects. The company strictly enforces con?dentiality management throughout the R&D process.By strengthening internal centralized management and actively collaborating with external organizations,the company ensures timely intellectual property applications, registrations, and dynamic tracking,continuously improving the management of the entire R&D and intellectual property process andenhancing intellectual property protection.
In the digitalintelligencetechnology
segment
In theElectronicsTechnologysegment
Suppliers and CustomersInnovation is a key driver of sustainable development and enhanced competitiveness.In response to the national strategy of developing "new quality productive forces,"we remain committed to our mission of "leading globally competitive industries,creating a better life." By investing in R&D and innovation, we focus on serving theinnovative development of the real economy and supporting its transformationand upgrading. We actively cultivate long-term, stable, and honest partnershipswith suppliers and uphold the principles of responsible sourcing. Together with ourpartners along the industrial value chain, we are dedicated to delivering outstandingproducts and services to our customers. At the same time, we strive to minimize thenegative impact of the industrial chain on the environment and on employee healthand safety, enhance supply chain resilience and security, and advance the sustainabledevelopment of the supply chain.Obtained
copyright registrationsAs of the end of the reporting period, we hold a total of
registered copyrights
Patents
in totalAuthorized patents
in total
In digitalintelligencetechnology
segment
We have introduced the "Supplier Management Measures" and the "Supplier Evaluation and MonitoringMeasures" to standardize the procurement process. We require suppliers to sign integrity agreements,uphold business ethics, and strictly oppose all forms of corruption, bribery, and unethical businesspractices. Through this collaboration, we aim to build a sustainable supply chain management system.
We have established the "Procurement Control Procedure" to regulate the full lifecycle management of suppliers, from onboardingto o?boarding. For key material suppliers, a quali?ed sample audit must be completed before they undergo on-site audits. Prior tothe o?cial commencement of procurement, suppliers are required to submit product testing reports for the intended goods. We alsoconduct comprehensive annual evaluations on product quality, delivery stability and timeliness, end-to-end sales service capabilities,responsiveness, and overall cooperation.
In electronics
technology
segment
Xindeco IoT Supplier Routine Supervision
Product Quality Supervision
·We verify goods provided by suppliers in accordance with the "Inspection and Test Control Procedure" and regularly compile quali?cation statistics.·For suppliers whose performance rating falls below 90%, we issue verbal warnings. If a supplier's products
fail quality inspection three consecutive times, we issue a "Supplier Delivery Exception Feedback Form" and require corrective actions from the supplier.
On-time Delivery of
·We monitor and regularly assess delivery timeliness.·For suppliers who fail to deliver on time, we issue a verbal warning and impose penalties as per thecontract. If late delivery occurs three consecutive times, we issue a "Supplier Delivery Exception Feedback Form" and require the supplier to take corrective measures.
Xindeco Optoelectronics Supplier ESG Performance ManagementESG Performance Management of On-siteActivities by Service Contractors
·For temporary contractors, we issue a "Supplier On-Site Operation Notice" to inform them of environmental protection precautions and supervise their operations.·For long-term contractors, a "Supplementary Agreement" must be signed, and personnel assigned to on-site work are required to receive training before starting their duties.
ESG Performance Management of Other
Service Providers
·For service providers such as vehicle and elevator maintenance companies, we sign an
"Environmental Protection Agreement" that stipulates: during maintenance, clean cloths mustbe used to thoroughly absorb and remove oil residues from elevator cabins and vehicle surfaces tominimize the discharge of oil substances into water. Wastewater must be treated before dischargeinto sewage systems, and all hazardous waste generated during maintenance must be properly and legally disposed of.·For construction contractors, we sign an "Environmental Protection Agreement" requiringprevention and control of pollution during construction, including noise, dust, wastewater, and construction waste.·For waste recyclers and hazardous chemical transportation contractors, we collect and verify documentation to ensure legal compliance.
Supplier Evaluation and Supervision
Environmental Protection in the Supply ChainSince 2019, we have distributed the "Environmental Protection Initiative" to our partners, assessingtheir management practices related to greenhouse gas emissions, wastewater, air pollutants,noise, and hazardous waste. We collect information on existing environmental initiatives andplanned improvement measures to help our partners enhance their environmental managementperformance.
We incorporate supplier performance in areas such as service capability, product quality,environmental protection, and occupational health into our assessment standards. Evaluation isconducted through both desk review and on-site audits. Based on these assessments, we developsupplier evaluation plans and carry out quarterly and annual reviews. The list of quali?ed suppliersis updated annually, and disquali?ed suppliers are removed. For those who do not meet evaluationstandards, we initiate corrective action plans and provide support to help them meet our basicmanagement requirements and eliminate potential risks.
Quali?cation
Review
· Collect information and documentation from suppliers capable of providing manufacturing materials and outsourcing services· Review business licenses, employee pro?les, factory conditions, production and testing equipment, material sourcing, and company certi?cations, etc.· Notify suppliers who have passed the initial review to submit samples.
· Visit key suppliers to conduct on-site inspections of supplier products and quality assurance, production equipment and technology, customer support and services, environmental protection, and control of prohibited substances· Conduct sample review, and if necessary, perform quality and reliability tests
· List suppliers who pass the on-site assessment to the list of "Quali?ed Suppliers for Select"· Set a minimum three-month probationary period, followed by a review process. Suppliers must pass this review to become "Quali?ed Suppliers"
SampleReview
On-siteAuditSupplierAcereditation
New Supplier Admission Audit Process
Our independently developed "paper antenna RFID tags" strictly comply with the FSC Chain of Custody (CoC) certi?cation standards.We are committed to increasing the use and content of FSC-certi?ed materials and implementing the requirements of "FSC-STD-40-005." We strictly prohibit the procurement of raw materials from the following sources:
we operate based on the principles of fairness, transparency, integrity, and compliance. We have establishedinternal systems including the "Logistics Management Regulations for Supply Chain Business," the "CreditManagement Measures for Supply Chain Business," and the "Detailed Rules for Customer Credit EvaluationCommittee," to build a comprehensive customer credit assessment framework.We have established a dedicated Credit Evaluation Committee to conduct independent investigations. In additionto reviewing the business performance and legal risks of counterparties, we also include indicators such asenvironmental protection and workplace safety in our assessment criteria. This enables us to evaluate both actualand potential risks across the supply chain. Where necessary, we commission third-party credit investigationagencies to support the evaluation.
we have formulated the "Procurement Management Regulations" and established a Procurement ManagementLeadership Team responsible for overseeing, guiding, and supervising all procurement projects. At the projector subsidiary level, we set up dedicated procurement working groups that are responsible for reviewingprocurement documents, conducting special inspections, and handling supplier complaints.We carry out procurement activities in strict accordance with applicable regulations through methods such asopen bidding, invited bidding, competitive negotiation, inquiry, direct procurement, and other legally compliantapproaches. Our goal is to build a supply chain that is fair, transparent, and ?exible. In addition to focusing onpartner compliance, product pricing, and delivery capability, we also assess our partners’ performance insustainability-related areas such as ecological responsibility, human rights protection, and occupational healthand safety, all of which are incorporated into our supplier admission criteria.For automotive parts and other supply chain partners, we have issued the "Supplier Management Regulations"to standardize quali?cation reviews. We require partners to sign key documents including the "Commitment toSafe Construction and Compliant Operations," the "Commitment to Honest Cooperation and Fair Competition,"and the "Integrity Agreement." These measures are designed to ensure the ful?llment of responsibilities relatedto occupational health and safety, business ethics, and environmental protection.
Highlight
Green Procurement
In supply
chainbusinesssegment
Inautomobiledealershipbusinesssegment
Supply Chain Security
We remain committed to advancing high-quality development by continuously enhancing the resilience and security of our industrialand supply chains. Through the ongoing improvement of our credit evaluation system and the establishment of a robust riskassessment mechanism, we strive to minimize and eliminate both actual and potential risks, ensuring the healthy and sustainabledevelopment of our supply chain.We have established a dedicated Credit Evaluation Committee responsible for assessing the credit standing of our business partners.The committee provides critical insights to support risk assessment and decision-making processes, thereby improving the qualityand e?ciency of our risk management practices. The committee consists of a Chair and several members, with participation from theRisk Control and Compliance Department as well as ?nance personnel from various business segments. The Chair is responsible fororganizing the credit evaluation work and preparing credit assessment reports.
In accordance with our internal credit management procedures, we monitor suppliers and customers throughemail communications, on-site audits, trade fairs, and third-party channels. Regular follow-ups and ad hocinspections are conducted, with at least one full review cycle completed annually. Counterparties that fail tomeet review standards and show no improvement after remediation are subject to disquali?cation and removalfrom our approved list.
We assess logistics suppliers using basic criteria such as company type, credit standing, quali?cations,transaction history, warehouse conditions, and overall management capabilities. Additional evaluationdimensions include quality system certi?cations, customs compliance status, industry reputation, tax paymentrecords, and digital warehouse management capabilities. Periodic performance assessments are conducted,and a one-strike disquali?cation rule is applied to issues involving dishonesty, safety hazards, or other high-riskfactors.
Supplier and Customer Admission Mechanism
Ongoing Supplier and Customer Monitoring
Logistics Supplier Oversight
Forests whereownership orusage rights aredisputed
·Forests identi?ed
as non-certi?ed highconservationvalue forests·Forests subject
to illegal loggingactivities·Forests converted
from naturalforests to non-forest or non-plantation use·Forests
containinggeneticallymodi?ed trees·
The business unit initiates the evaluation process by completing the "Customer Information Form" andsubmitting supporting documents, which include third-party credit evaluation reports, business registrationinformation, ?nancial statements, and more.
On this basis, we also implement e?ective risk mitigation measures. These include encouraging business units to purchase creditinsurance and setting credit transaction limits for individual customers or related parties based on credit exposure assessments. Incases of overdue accounts, the business unit must follow the "Operational Risk Reporting and Disposal Management Measures" andrespond based on the three-tier risk classi?cation system: "Attention," "Warning," and "Response," with corresponding actions takenfor each level.
Customer Credit Evaluation and Management
Equal Treatment of SMEs
Product and Service Safety and Quality
We strictly comply with national laws, regulations, and supervisory requirements, including the "Anti-Unfair Competition Law ofthe People's Republic of China," the "Regulations on Ensuring Payments to Small and Medium-Sized Enterprises," and the "InterimRegulations on Enterprise Information Disclosure." We ful?ll our disclosure obligations in accordance with the law and strictlyadhere to contractual terms regarding payment, ensuring that all fund disbursements are compliant and stable. We are committedto fostering fair and equitable trading relationships with SMEs. We continuously work to enhance the transparency of our paymentpractices, safeguard the legitimate rights and interests of SMEs in accordance with the law, and optimize supply chain management.These e?orts contribute to the improvement of the overall business environment.In 2024, we experienced no instances of overdue payments to SMEs.
We strictly comply with national laws and regulations such as the "Product Quality Law of the People's Republic of China," the"Consumer Rights Protection Law of the People's Republic of China," and the "Advertising Law of the People's Republic of China."In all our business operations, we prioritize customer needs and are committed to delivering e?cient and professional services toensure that each customer receives timely and accurate responses.
We provide integrated services covering project planning, technologydevelopment, project implementation, and operations and maintenance.To ensure the quality and safety of procurement and construction activities,we have established a Technology and Quality Committee, which overseestwo specialized task forces: the Software Quality Execution Group andthe Engineering Quality Execution Group.During project implementation,we adopt a project responsibility system and conduct regular audits onconstruction progress. We strictly follow national regulations by preparingimplementation plans in advance and correcting deviations in real timeto ensure projects are completed on time with high quality and safetystandards. In 2024, we recorded no major liability incidents related toproduct or service safety and quality, nor were there any product recalls.We have established a multi-departmental complaint handling mechanism to ensure that customer feedback ispromptly received, reasonably addressed, and e?ectively resolved.Shandong Xindeco IoT, customer complaints are handled jointly by the General Administration Department, theOperations Compliance Department, and the System Integration Department. Upon receiving a complaint, the projectmanager from the System Integration Department is responsible for verifying the issue. If it involves product quality,the Operations Compliance Department coordinates with the supplier for resolution; if it relates to constructionquality, the System Integration Department takes charge of follow-up actions. In 2024, we received no customercomplaints and successfully achieved our annual service quality goal of 100% customer satisfaction.
In digitalintelligencetechnologysegment
ISO 9001:2015 Quality ManagementSystem Certi?cation of ShandongXindeco IoT
Prior to the credit evaluation, the business unit conducts on-site due diligence, with joint participation fromthe Risk Control and Compliance Department. A site visit report is issued, focusing on, but not limited to, thecustomer’s business history, production and operational capabilities, ?nancial risk management, and anymajor adverse factors.We adopt the 5C credit evaluation methodology, assessing ?ve dimensions—business capacity, credithistory, ?nancial standing, operating environment, and collateral/insurance—to determine an overall rating.Based on this assessment, a credit rating is assigned from AAA (highest) to C (lowest), across nine levels. Thecredit rating result also serves as the basis for credit line assessment.A "Credit Evaluation Report" is issued, presenting the customer’s operational status, ?nancial statements,and legal risk indicators. This report serves as a reference for decision-making during risk assessmentcommittee meetings.Both the business unit and the Risk Control and Compliance Department continuously monitor thecustomer’s condition. If there is any material adverse change or a request to adjust cooperation terms, wepromptly formulate response measures in accordance with relevant policies and may initiate a re-evaluationas needed.We re-evaluate customers who apply for continued credit transactions based on changes in their operations,?nancial status, and industry conditions. For customers whose most recent credit evaluation score meetsquali?cation criteria and re?ects strong performance, the re-evaluation cycle may be extended to two years.
DocumentCollection
On-SiteDueDiligence
EvaluationCriteria
Application ofResults
OngoingMonitoring
PeriodicRe-evaluation
We regularly conduct customer satisfaction surveys to gain deepinsights into customer needs and continuously improve our servicequality and product performance. We collect customer feedbackthrough structured questionnaires, covering key areas such asproduct quality, after-sales service, on-time delivery, complainthandling, and return processing. Based on the results of thesesurveys, we promptly develop and implement improvementmeasures to enhance the overall customer experience.
We uphold the philosophy of "leading a high-quality automobile lifestyle" and are committed to delivering aservice experience that exceeds expectations for every vehicle buyer. We have established a comprehensivecustomer service process that includes professional car-buying consultation, personalized vehicle con?gurationrecommendations, transparent pricing policies, e?cient ?nancial service solutions, and full-scale after-salessupport with regular maintenance plans.We set monthly performance targets for customer follow-up, and our after-sales teams conduct regulartelephone follow-ups to track service quality and proactively address customer concerns. In addition,we conduct customer satisfaction surveys to assess our performance across six key service touchpoints:
appointment booking, reception and pre-check, waiting experience, settlement and vehicle handover, servicequality, and claims and damage assessment. Based on survey results, we promptly adjust our service strategiesand processes to ensure we meet evolving customer expectations and needs.
Inelectronicstechnologybusinesssegment
In automobiledealershipbusiness segment
In 2024, Xindeco ITG Automobile Group, in partnership with PICC Property and Casualty Insurance, jointly established a New EnergyVehicle (NEV) Customer Service Center to o?er end-to-end services for NEV owners. The service center is equipped with diagnostictools and technical personnel to support damage assessment, claims processing, body and paintwork, routine maintenance,insurance renewal, test-drive group purchases, vehicle trade-ins, battery charging diagnostics, and repairs to electric powertraincomponents. The center also hosts NEV experience events and customer engagement activities. By collaborating with NEVmanufacturers and insurance companies, we aim to develop the NEV aftermarket, enhance repair and service capabilities in theXiamen area, and provide comprehensive maintenance and support services for NEV customers.
Network and InformationSecurity O?ce
Digital ManagementDepartment
Highlight
Data Security and Customer PrivacyWe strictly comply with the "Cybersecurity Law of the People's Republic of China," the "Data Security Law of the People's Republic ofChina," the "Personal Information Protection Law of the People's Republic of China," and other relevant regulations. We continuouslystrengthen our information security management system, enhance our security capabilities, and build a robust digital defenseframework to e?ectively safeguard company data and protect customer privacy.
We have established a clearly de?ned and well-structured information security management framework. Internally, we haveformulated and continuously improved policies such as the "Technical Management System for Information Security" and the"Personnel Management System for Information Security." These policies provide clear guidelines on information governance,account management, cybersecurity monitoring, data center management, incident reporting, and employee awareness andtraining. We also incorporate information security performance metrics into the performance evaluation system of relevantpersonnel, helping to standardize and strengthen security management practices while improving our overall security posture. Thesemeasures ensure the secure and stable operation of our information systems and provide strong protection for data assets. In 2024,we reported no information security incidents.
Chairman serves as the group leader, with key leaders from each segment and theleaders responsible for network security serving as members of the group.Responsible for organizing and leading the construction of company's network andinformation security, coordinating and solving major issues related to the company'snetworkand information security.
As an o?ce set up under the leading group, it isresponsible for the speci?c a?airs of theleading group.Organize quarterly network and information security meetings to review the keyachievements of the quarter, and to study and develop the work plan for the next quarter.
Responsible for the management, maintenance, and construction of the company'snetwork and information security and information systems.
Information Security Management
Information Security Management Structure
ISO 9001:2015 QualityManagement System Certi?cationof Xindeco Optoelectronics
Network and Information Security
Work Leading Group
··
··
·
In 2024, we continued to implement the working mechanism of our Cybersecurity Leadership Team, integrating the planning,deployment, and risk assessment of cybersecurity tasks into our core management priorities. We regularly held dedicatedcybersecurity meetings to clarify key goals and assign cybersecurity responsibilities. We also formulated the "2024 CybersecurityAccountability Assessment Plan for Xiamen Xindeco’s Invested Enterprises," which outlines the annual cybersecurity objectivesand key performance indicators for each subsidiary. These include de?ning the responsible departments and duties forcybersecurity information reporting, implementing cybersecurity protection measures, organizing or participating in emergencyresponse drills, carrying out cybersecurity monitoring, early warning, and reporting, and conducting cybersecurity education andtraining. We evaluate each invested enterprise through a combination of self-assessment veri?cation, on-site inspections, andcoordinated assessments conducted by functional departments. These evaluations are integrated with special audits and ongoingsupervision, forming a comprehensive performance review system. Through this approach, we have established a top-down, tieredimplementation mechanism for cybersecurity governance, where responsibility is enforced at each level. The assessment results aredirectly linked to the performance evaluations and compensation of responsible personnel and employees.
We continuously improve our information security risk management mechanism,strengthening risk control through a comprehensive approach that covers pre-incident,in-process, and post-incident phases. We identify, monitor, prevent, and respondto information security risks and incidents to minimize their occurrence and reducepotential negative impacts on our business operations.
We regularly conduct cybersecurity inspections on endpoints, servers, and networkequipment to identify potential information security vulnerabilities. Timely correctiveand preventive measures are taken to mitigate threats posed by these vulnerabilities toour network systems.In 2024, we leveraged professional security tools to carry out bi-monthly webvulnerability scans and quarterly host security scans. These e?orts enabled us to detectand ?x security vulnerabilities promptly. Over the course of the year, we successfullyremediated 27 high- and medium-risk vulnerabilities, signi?cantly reducing thelikelihood of security incidents caused by system weaknesses. We also conducted threespecialized cybersecurity inspections, focusing on key areas such as the IoT Data Centerand automotive 4S dealerships. A total of 11 risks were identi?ed and recti?ed, ensuringthat our information security measures were e?ectively implemented and enforced.We have formulated the "Emergency Response Plan for Network and InformationSystems" and established a comprehensive emergency response mechanism forinformation security incidents, along with a cross-departmental coordination system.This enables us to respond to security incidents in a timely and e?ective manner, helpingto prevent or mitigate potential damage and losses.We have developed a proactive and layered cybersecurity defense system that integrates a variety of network security devices andsoftware technologies. Coupled with optimized security operations, this enables accurate situational awareness and ensures the safeand stable operation of our systems. In 2024, we focused on enhancing key areas such as threat monitoring, email security, and majoroperational safeguards to strengthen our cybersecurity defenses:
Information SecurityRisk Management
InformationSecurity Inspections
InformationSecurity EmergencyResponse
· At the Xiang’an Industrial Park Data Center, we deployed network probes to collect and analyze real-time tra?c acrossthe park. This allowed us to accurately detect and issue early warnings for abnormal tra?c behavior, malicious activities, and cyberattacks, enabling rapid response and closed-loop risk mitigation.
·We enhanced our email security system by launching an email security gateway. This enabled comprehensive ?ltering and auditing of inbound and outbound email tra?c, signi?cantly improving our interception rate for phishing and spam emails.· We implemented a major security operations model, continuously optimizing the construction of our cybersecurity
operations center. Over the year, we analyzed 1.5 million logs related to external website attacks. We provided 24/7 securitymonitoring and defense during critical time periods and successfully delivered cybersecurity protection for several major events and holiday periods, ensuring secure and stable network operations.
· We conduct routine monitoring of networks and information systems to ensure timely threat detection and early warning.Signi?cant monitoring ?ndings or any identi?ed information security incidents are promptly reported to the Cybersecurity Leadership Team.
· Upon detection of a security incident, we immediately organize an investigation to identify the root cause, determine theseverity level, and activate the corresponding emergency response plan. Control measures are then implemented to contain the situation and eliminate risks.· After the emergency response concludes, we form an incident investigation team to conduct a thorough analysis and summary. Based on the ?ndings, we re?ne our emergency response plans and address any underlying vulnerabilities.· We regularly conduct emergency drills to test and improve the e?ectiveness of our response procedures, enhancing our overall incident response capabilities.
In 2024Successfully remediated
high- and medium-risk vulnerabilitiesConducted specialized cybersecurityinspections
times
In 2024, we organized two red team testing exercises and participated in multiplerounds of live cyberattack and defense drills. These activities helped us assess oursecurity defense capabilities, strengthen team coordination and technical skills,and further improve our ability to respond to information security incidents.
We continuously enrich our training formats and communication platforms to promotethe normalization of information security awareness across the organization. Thesee?orts aim to strengthen every employee’s sense of responsibility and participation incybersecurity, while enhancing their ability to prevent potential threats.In 2024, we organized activities in alignment with National Cybersecurity AwarenessWeek and held three specialized cybersecurity training sessions for all employees,namely "Practical Techniques and Experience Sharing in Cyber O?ense and Defense,""Strengthening the Information Security Barrier—Cybersecurity and Con?dentialityAwareness for Employees," and "Enhancing Cybersecurity Awareness and Fortifyingthe Company’s Security Foundation." The sessions were attended by more than70 participants in total, helping to spread cybersecurity knowledge and improveemployees’ awareness and risk prevention capabilities.
InformationSecurity Educationand Training
Strengthening the Information Security Firewall – Employee Training on Cybersecurity and Con?dentialityAwareness
We continue to strengthen our customer privacy protection practices and have implemented a range of measures to strictly managethe collection, use, and storage of customer information, ensuring its security. In 2024, we recorded no incidents of customer databreaches.
Customer Privacy
We safeguard customer privacy through multiple measures, including data encryption, strict identityauthentication and access control, regular data backup and recovery, encrypted communication to ensure securedata transmission, con?dentiality agreements with relevant parties, and enhanced security of our networks anddevices. These e?orts ensure that customer information is not leaked or misused.
We have issued the "Cybersecurity Management Regulations" and the "WeCom Operation Management Guidelines(Trial)" to protect customer privacy and information security. All dealerships are prohibited from copying or misusingcustomer personal information without authorization. Employees are strictly forbidden from retrieving or viewingany customer data that is unrelated to the current service being provided, ensuring strict privacy protection.Additionally, when conducting customer satisfaction surveys or follow-up calls, we pay special attention to customerfeedback regarding personal data security, allowing us to identify and resolve potential information leakage risks ina timely manner. We also conduct regular system screenings to detect any unauthorized logins, data usage, or leaks,thereby ensuring the comprehensive security and privacy of customer information.
In digitalintelligencetechnology
segment
Inautomobiledealershipbusinesssegment
Contributing to Industry Development
We are deeply engaged in our four core business segments of digital intelligence technology, electronics technology, supply chain,and automobile dealership. We actively participate in industry innovation and collaboration, and contribute to the advancement ofthe sector by sharing knowledge and technologies across platforms. Through these e?orts, we continue to deliver the strength andvalue of Xiamen Xindeco to the broader industry landscape.
Xindeco
Xiamen Import & Export Chamber of CommerceVice President
Xiamen Modern Supply Chain FederationVice PresidentXiamen Chamber of International CommerceVice PresidentXindeco ITG AutomobileGroup
China Automobile Dealers AssociationVice President
Xiamen Automobile Dealers AssociationPermanent Vice President
Xiamen Xindeco IoT
RAIN RFID Alliance
Members of the Association and Asian Working
GroupFujian Provincial Information Industry AssociationVice PresidentXiamen IoT Industry AssociationPermanent Vice President
Xiamen Intellectual Property AssociationMemberIoT Application Branch of China Information Industry Trade of AssociationDirector
Xiamen Hi-tech Development AssociationMemberXiamen Science and Technology Service AssociationMember
Xiamen XindecoOptoelectronics
China Video Industry AssociationMemberNational Lighting Appliance Standardization Technical Committee, Lighting
Fundamentals Sub-Technical Committee
Committee MemberXiamen Technology Innovation AssociationDirectorXiamen High Tech Development AssociationMemberXiamen Optoelectronic Semiconductor Industry AssociationMemberFujian Optoelectronics Industry AssociationMemberShandong Xindeco IoT
Shandong Association for Public Security Technology and ProtectionMember
Shandong Software Industry AssociationMember
Industry Engagement of the Company and Subsidiaries in 2024
From February to March 2024, we participated in the 2024 ISLE International Smart Display and Integrated System Exhibition.The event brought together more than 1,000 companies from nearly 100 countries and attracted over 200,000 visitors. During theexhibition, we showcased a variety of new products, including our full range of outdoor ?ip-chip LED displays, indoor XR series, andDCI series. Leveraging our technical strengths and innovation capabilities, we were honored with the Excellent Product Award.
Highlight
In August 2024, we participated in IOTE 2024, the 22nd International Internet of Things Exhibition held in Shenzhen. At the event, wepresented our latest products and application technologies, earning the prestigious "IOTE Gold Award" for Innovative Products.We showcased the application of RFID technology in areas such as smart retail and ?xed asset management, and jointly exhibitedthe DRAGONVERSE MR RFID system with Retech IoT, demonstrating the integration of Mixed Reality (MR) technology in RFID devices.
Highlight
In May 2024, we participated in the 7th Asia-Paci?c Smart SupplyChain and Logistics Innovation Expo (SSCL) held in Shanghai.Through on-site demonstrations and interactive sessions, weintroduced our high-end RFID electronic tag product seriesdesigned for the warehousing and logistics sectors. Thesesolutions were highlighted for their e?ectiveness in reducingmanual errors and accelerating material ?ow. At the expo,we received the "SSCL Golden Chain Award – Best LogisticsInnovation Award" for our smart logistics-related products.
Highlight
Received the"SSCL Golden Chain Award – Best Logistics
Innovation Award"for our smart logistics-related products.
In March 2024, we were invited to participate in the 18thInternational Iron Ore Market Seminar. The seminar wasco-hosted by the China Chamber of Commerce of Metals,Minerals & Chemicals Importers & Exporters and ShanghaiGanglian E-Commerce Holdings Co., Ltd. (Mysteel), withsupport from Shandong Port Group Qingdao Port Co.,Ltd. and Sinotrans Central China Co., Ltd. Centered on thetheme "Promoting Cooperation, Driving Development,"the event brought together representatives from iron oreproducers and traders, steel manufacturers, and ?nancialinstitutions to discuss the current state and futureoutlook of the ferrous metals market.At the seminar, we were named one of the "Top 20 GlobalIron Ore Suppliers" under the "Black Gold Cup" honor.This marks the eighth consecutive year we have receivedthis distinction.
Highlight
Were named one of the"Top 20 Global Iron Ore Suppliers"under the "Black Gold Cup" honor
In February 2024, the "2024 Xiamen Trusted AutomobileDealership" selection event was launched, aimed at promotingintegrity in business operations and enhancing servicestandards across the industry. Following a joint review byrepresentatives from Xiamen’s leading automotive mediaoutlets, 10 dealerships were selected for the honor. At the awardceremony, our automobile dealership business was recognizedas a "2024 Xiamen Trusted Automobile Dealership." This marksthe 18th consecutive year we have received this title.
Highlight
Recognized as a"2024 Xiamen Trusted Automobile
Dealership."
In May 2024, the "2024 China Automotive DealerConference and Top 100 Rankings Release"was held in Ningbo, Zhejiang, under the theme"Expanding New Paths, Enhancing Quality andE?ciency." During the conference, the "2024Top 100 Automotive Dealer Groups in China"list was o?cially released. We were once againincluded in the rankings, securing the 46thposition this year—up three spots from theprevious year.In addition, one of our service assurance caseswas selected as an "Outstanding MarketingInnovation Case" in the same ranking series.Thanks to our ongoing e?orts in the new energyvehicle sector, we also ranked 59th on the "2024Top 100 New Energy Automotive Dealer Groupsin China" sub-list.
Highlight
Selected as an"Outstanding Marketing Innovation Case"
"2024 Top 100 Automotive Dealer Groups in China"
Ranked
th
"2024 Top 100 New Energy Automotive Dealer
Groups in China"Ranked
th
In May 2024, we were invited to participate in the "2024 (3rd) Mysteel Overseas SteelDevelopment Conference," organized by Shanghai Ganglian E-Commerce HoldingsCo., Ltd. The event focused on topics such as overseas capacity deployment, mineralresource development, global steel demand, and international trade trends. It broughttogether representatives from domestic and international steel producers, overseasinvestment enterprises, and Chinese-funded overseas manufacturing companies todiscuss the future of China's steel industry abroad.At the conference, we were once again recognized for our business practices in thesteel supply chain and received the "Outstanding Steel Export Trading Enterprise inChina" award for the second consecutive year.
Highlight
Received the"Outstanding Steel ExportTrading Enterprise in China"
award for the secondconsecutive year
Equal Employment
We place great emphasis on the sustainable development andcultivation of talent and continuously improve our employmentmechanisms. We actively promote localized employmentand recruit outstanding professionals from society based onmerit, providing a strong talent foundation for our high-qualitydevelopment. We adhere to the principle of equal employmentthroughout the recruitment process, in strict compliance withthe "Labor Law of the People's Republic of China," the "LaborContract Law of the People's Republic of China," the "Law on theProtection of Women's Rights and Interests," the "Regulations onthe Employment of Persons with Disabilities," and other relevantlaws and regulations. We ensure that all candidates are givenequal employment opportunities based on their quali?cationsand job requirements.We have formulated the "Employee Recruitment ManagementMeasures," under which recruitment is jointly managed by theHuman Resources Department and the hiring department. Thehiring department proposes recruitment requests based on jobneeds, de?nes job responsibilities and quali?cation criteria, andparticipates in resume screening, interviews, and onboardingguidance. The Human Resources Department reviews recruitmentrequests according to company strategy and staffing plans,develops recruitment plans, publishes job postings, organizesinterviews, veri?es quali?cations, conducts background checks,
issues o?er letters, and handles onboarding procedures.To ensure that the recruitment process is standardized, fair,and transparent, we have established a layered approval andinformation reporting mechanism. Key recruitment stepsmust be reviewed by senior management. Internally referredcandidates must be reported in advance and can only be hiredupon approval.
EmployeesWe regard talent as the primary driving force for sustainable development.We continuously optimize our human resources management, respectand protect the occupational health and legal rights of all employees, andare committed to providing competitive compensation and bene?ts, aswell as comprehensive education and training systems. We strive to o?era safe, healthy, diverse, and inclusive working environment, create broaddevelopment opportunities for our employees, and work hand-in-hand toco-create and share the long-term value of sustainable development.
In 2024, under the "Talent-Driven Enterprise" strategy, werecruited talents across various functions, including businessmanagement, R&D, and risk management, through market-based approaches. Recruitment channels included campusrecruitment, overseas recruitment, and social recruitment.
Xindeco IoT Malaysia Team
In November 2024, the "2024 ChinaAutomotive Circulation Industry AnnualConference and Expo" was held inSuzhou under the theme "NavigatingChallenges, Seeking Change, Openinga New Chapter." The event gatheredindustry elites, authoritative experts,and leading enterprises to analyzeopportunities and challenges in thecurrent market environment and explorefuture development strategies. Theconference also showcased outstandingenterprises with long-standingcommitments to public welfare.At the event, we were honored with the "Together with Love and Responsibility" award by the industry association in recognitionof our long-term dedication to ful?lling social responsibilities. Our e?orts in poverty alleviation, disaster relief, environmentalprotection, and public safety awareness have yielded meaningful results and contributed to the broader public good.
Highlight
In June 2024, the "2024 China Automotive Circulation IndustryConference and Auto Export Summit," guided by the All-ChinaFederation of Industry and Commerce and hosted by the AutoDealers Chamber of Commerce, was held in Zhengzhou, Henan.Themed "New Vehicles, New Patterns, New Dealerships," theconference brought together industry leaders to exchange viewson current trends in automotive development.For our practices in the area of social responsibility, wewere honored as one of the "Top 100 Enterprises in SocialResponsibility in China's Automotive Circulation Industry 2024"and were also listed as a "2024 Trusted Commitment Enterprise inChina’s Automobile Dealership Service Industry."
Highlight
Were honored as one of the "Top 100
Enterprises in Social Responsibility
in China's Automotive Circulation
Industry 2024"
listed as a"2024 Trusted CommitmentEnterprise in China’s AutomobileDealership Service Industry."
In 2024, we were recognized with several employer brandhonors, including the "Top 100 Happy Enterprises - Top 30 forShared Development," the "2024 Outstanding Social EnterpriseAward," the "6th Yuntu Award for Excellence in Digital InnovationPractice," and the "ISPI Performance Excellence Award."We received no penalties in 2024 for violations of labor laws oremployment discrimination.
Human Rights Protection
We are committed to protecting human rights and strictly comply with all applicable laws and regulations. We respect internationallyrecognized human rights standards and guidelines, including the "International Bill of Human Rights," the "United Nations GuidingPrinciples on Business and Human Rights," the "Universal Declaration of Human Rights," and the International Labour Organization's"Declaration on Fundamental Principles and Rights at Work." We strive to provide all employees with a fair, inclusive, and harmoniousworking environment.In our business operations, we pay close attention to identifying and assessing potential human rights risks. We conduct regular internalreviews in areas such as recruitment and employment practices and daily operations to evaluate possible human rights impacts andidentify areas of potential risk. These e?orts help ensure that our business practices are fully aligned with legal requirements and ourbroader social responsibilities.
We have established internal management policies such as the "Labor and Personnel Management Regulations," which clearly outlineour requirements regarding anti-discrimination and anti-harassment. We are committed to ensuring that all employees have equalopportunities in recruitment, compensation, and promotion, and are protected from any form of discrimination based on gender, age,race, skin color, nationality, ethnicity, place of origin, or other personal characteristics. We actively promote gender equality and care forfemale employees and persons with disabilities, working to create a diverse and inclusive workplace. We strictly prohibit child labor, forcedlabor, and any form of sexual harassment. To strengthen human rights awareness across the organization, we also organize regular trainingand educational activities to ensure that employees understand and comply with our human rights protection policies, fostering a healthyand safe work environment.
Anti-Discrimination and Anti-Harassment
Care and Wellness Seminar for Female Employees in Celebration of International Women's Day
As of December 31, 2024, we had a total of 3,998 employees. The employee structure is as follows:
Employee Gender DistributionEmployee Age DistributionManagement Gender Distribution
○ De?nition of Management Levels: This includes senior management positions (such as roles up to two levels below the CEO), middle management (such as heads of
departments or business units in areas like ?nance, marketing, or operations, or project managers in a ?at organizational structure), and junior management (includingfrontline supervisors, entry-level managers, and the lowest tier of managerial roles).
■ Male ■ Female■ Male ■ Female■ 30 Below ■ 30-50 ■ 50 Above
68%
29%3%
38%
62%
69%31%
In 2024, our supply chain business segment organized a thematic training session titled "Human Resources Policy AwarenessConference," focusing on core topics such as equal employment, compensation and performance, and career development.The session aimed to provide employees with a comprehensive understanding of our human resource policies, while helpingdepartments prevent and mitigate potential human rights risks.
In 2024, we held the graduation ceremony of the fourth sessionof the Xindeco Motivation Program, along with a roundtablediscussion for outstanding young cadres. The event wasattended by company leadership, representatives of mid-levelmanagers from headquarters, alumni of previous sessions, andcurrent program participants.Launched in 2020, the Xindeco Motivation Program has beenheld for four consecutive years and has become a key initiativefor strengthening our leadership development, building astrong team of high-performing managers, and enhancingorganizational capabilities. The event focused on topics such asleadership development, talent selection, and organizationalcapacity building. During the session, past outstandingparticipants shared their career growth experiences, whilecurrent trainees re?ected on their learning journey anddiscussed ways to further improve their work performance.
In 2024, we organized the Xindeco Motivation Program "Executive Face-to-Face" dialogue session. During the meeting, companyexecutives engaged in open discussions with young cadres on topics including corporate development, talent cultivation, andbusiness management. Young representatives shared their professional insights and suggestions based on their work experiences,while company leaders provided direct responses and guidance.
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Employee Communication
We respect and protect employees’ democratic rights, including freedom of association and collective bargaining as granted by law.We closely integrate the establishment and improvement of democratic management systems with daily management practices andcorporate culture building, upholding the principle of aligning enterprise development with the protection of employee rights andinterests. We have established multi-dimensional employee communication channels and actively promote democratic consultation anddialogue. Through platforms such as employee representative congresses and trade union representative meetings, we extensively collectfeedback and suggestions from employees. On matters directly related to employees’ interests—such as compensation, performance,bene?ts, career development, and labor and personnel management—we engage in equal negotiation and have signed various collectiveagreements, including the "Collective Labor Contract," the "Collective Wage Agreement," and the "Special Protection Agreement for FemaleEmployees," to fully safeguard employee rights. We encourage employee representatives to participate in corporate governance andorganize democratic elections, decision-making, management, and supervision in accordance with the law. This ensures that employees'rights to information, participation, expression, and oversight are fully protected. In addition, we facilitate communication through variousemployee forums such as onboarding roundtables for new employees, team leader discussion sessions, "Executive Face-to-Face" meetings,and forums for outstanding young talents.In 2024, we held six employee representative congresses to discuss topics related to personnel and compensation management. Wefurther improved the transparency of trade union a?airs by implementing disclosure mechanisms. Major business decisions related tocorporate operations, personnel management, compensation, and procurement were openly communicated through the OA system,email, employee assemblies, and bulletin boards. These e?orts have signi?cantly enhanced management transparency and ensured thatemployee voices are heard and valued.
Employee DevelopmentWe remain committed to our “Talent-Driven Enterprise” strategy and focus on the full talent lifecycle—from recruitment anddevelopment to deployment and retention—by continuously improving our employee career development system. We havecomprehensively reviewed and revised relevant policies such as the "Employee Career Development Management Regulations" and the"Internal Trainer Management Guidelines" to establish a scienti?c and systematic training and development mechanism that supportsemployee growth.In terms of promotion management, we uphold a performance-oriented and results-driven approach. Based on both job requirementsand individual employee development, we implement various promotion mechanisms including ?le adjustment, grade advancement,competitive selection, and exceptional promotions. These are supported by evaluation criteria and approval processes to ensure fair andtransparent advancement, while enhancing organizational vitality and strengthening our talent pipeline.We are advancing the reform of our market-oriented talent management mechanisms. In appointing middle-level managerial personnel, wehave eliminated institutional barriers by launching open recruitment initiatives across both internal and external talent pools. To strengthen ourleadership team, we have introduced high-caliber professionals through headhunter referrals, public recruitment platforms, and our internaltalent network.
We continue to enhance our employee training and development system. In accordance with the"Training Management Guidelines," we have implemented a three-tier training structure consisting ofXindeco training programs, business segment-speci?c training, and subsidiary-level professional skillstraining. Tailored to employees’ job levels and individual development needs, these initiatives aredesigned to help employees realize their potential and enhance their professional competencies.In 2024, guided by the principle of "steady progress and business empowerment," we focused onbuilding a high-quality, application-oriented talent development system. Based on cultural alignment,organizational capacity building, and action learning, we developed the "435 Xindeco Star Series"comprehensive talent development framework. This framework covers ?ve modules: organizationalcapability enhancement, leadership development, key talent development, specialized talent programs,and overall competency building. Throughout the year, we conducted a total of 233 training sessions,delivering 63,329 hours of training and achieving 100% employee coverage.
Employee Training
Training sessions conducted
in totalTraining Delivered
63,329
hoursEmployee coverage achieved
%
Xindeco Gravitas Program
Star Spark Program + Master Class + Culture Class
Star Global Program
Xindeco Promotion Program
In 2024, we focused on developing key employees and launched the third session of the Xindeco Promotion Program to enhance theoverall quality and professional skills of our core workforce. The program followed a three-pronged structure—learning track, actiontrack, and operations track—designed to strengthen four core competencies: goal orientation, execution capability, problem-solvingability, and communication skills. It incorporated a variety of development formats including roundtable dialogues, group readingand re?ection on The 7 Habits of Highly E?ective People, and action learning. The program was honored with the "2024 6th YuntuAward for Digital Empowerment and Innovation Practice" by Yunxuetang.
The Star Talent Program targets our HR professionals, aiming to strengthen their capabilities in organizational e?ectiveness andbusiness enablement. In 2024, we launched the ?fth session of the program featuring the course "Talent Review Workshop." After thecourse, HR teams at various levels selected critical positions to carry out talent reviews, assessing both the quantity and quality ofinternal talent to better support business strategy and execution.
The Star Global Program is designed to support the selection, development, deployment, and retention of international talent,with the aim of strengthening the professional capabilities of our overseas teams and supporting the company’s globalizationstrategy. In 2024, we organized a course titled "Talent First in Global Expansion," which analyzed the di?erences in recruitmentculture and employment policies between China and Southeast Asian countries. The course also addressed key issues in talentmanagement for Chinese companies expanding abroad. Focusing on topics such as local labor compliance, cultural di?erences,and talent pro?ling, the course integrated case studies from globalizing enterprises and introduced strategies for recruitmentand human resource management. It provided participants with practical insights into talent strategies for international businessdevelopment.
The Star Excellence Program focuses on talent development in key areas such as digitalization, business operations, marketing, andR&D. In 2024, we launched the program’s ?rst course, titled "Digital Transformation Practice Sharing." The course explored thestrategic value of digital transformation and its impact on enterprise management models, operational frameworks, and businessmodels. Drawing from corporate case studies, the course also examined practical pathways and strategies for implementing digitaltransformation.
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Xindeco Promotion Program
Star Talent Program
Star Global Program
Star Excellence Program
We have long been committed to exploring industry-universitycollaboration models. Guided by the principles of resourcesharing, complementary strengths, and mutual development,we actively engage with higher education institutions to buildjoint training and internship platforms. These partnerships helpus establish a strong pipeline for talent reserves and providesolid support for the development of our talent strategy.
Industry-University Collaboration
Conducted a Visit to Xiamen University Malaysia Campus
Collaborated with the Education and Training Center of Xiamen Institute of Technology to Launch a Specialized Business English Training Program
Employee Compensation and Bene?tsOccupational Health and Safety
We have developed and continuously improved a series of compensation and bene?ts policies, including the "Compensation ManagementRegulations," "Employee Bene?ts Management Guidelines," "Performance Management Policy," "Enterprise Annuity Master Plan," and "ExpatriateEmployee Management Guidelines." These systems support a performance-driven compensation distribution mechanism, enabling us to o?ercompetitive compensation and bene?ts to our employees.
We strictly adhere to the principle of “safety ?rst, prevention foremost, and comprehensive management” in our approach to workplace safety.We fully comply with the "Work Safety Law of the People's Republic of China," the "Law of the People's Republic of China on the Preventionand Control of Occupational Diseases," and all relevant occupational health and safety laws and regulations applicable in the regions where weoperate. We continuously improve our internal occupational health and safety management systems and are fully committed to advancing theconstruction of a robust occupational health and safety management framework to safeguard the well-being of all employees. In key areas ofour operations, both Xindeco IoT and Xindeco Optoelectronics—subsidiaries under our electronics business segment—have obtained ISO 45001certi?cation. We continue to promote standardized safety management practices across our subsidiaries, further strengthening the foundation ofour work safety management and enhancing the scienti?c, standardized, and regulated approach to occupational health and safety.
We have established a comprehensive incentive system based on base salary, supplemented by performance bonuses and welfare allowances.Compensation structures are designed to meet business needs according to job responsibilities, nature of work, and value creation models. Ourposition system is categorized into three tracks: management, professional, and operational. Each track has clearly de?ned rank standards andevaluation methods, adhering to the principles of alignment, balance, progressive promotion, and dynamic adjustment. This ensures that ourcompensation management is both scienti?c and ?exible. We implement monthly, semi-annual, and annual performance evaluations covering allemployees. Evaluation criteria are tailored to the nature of each job category and consider factors such as educational background, managementexperience, professional skills, job title, and length of service. Employees are required to report on the achievement of performance indicators atthe mid-year and year-end review stages. After each evaluation cycle, direct supervisors conduct performance review meetings and complete the"Performance Communication Form" to ensure e?ective feedback and facilitate improvement.To strengthen compensation and performance management, we have implemented the "Accountability Management System for IrregularBusiness and Investment Conduct," incorporating ethical compliance requirements into our performance framework. Through regularperformance communication mechanisms, we ensure that employee compensation aligns with both company-wide performance and individualcontributions. This enables a balanced incentive and restraint system, driving continuous improvement in organizational e?ectiveness.
We ensure timely salary payments and uphold the principles of equal pay for equal work and minimum living wage standards. We strictlycomply with legal requirements to contribute to social insurance and housing provident funds and have implemented an enterprise annuitysystem. In addition, we provide group accident insurance for all employees. On the foundation of a company-wide social insurance system, weo?er a variety of caring bene?ts, such as 10 days of annual parental leave for eligible employees, statutory maternity and breastfeeding leave forfemale employees, and other supportive policies to create a warm and inclusive working environment. To further strengthen mutual aid amongemployees, we have introduced the "Xiamen Xindeco Employee Mutual Aid Center Management Guidelines" and established a dedicated "MutualAid Fund Pool." The fund is sourced from employee contributions, government and administrative subsidies, trade union support, and donationsfrom various sectors of society. It is managed by the Employee Mutual Aid Center Committee of Xiamen Xindeco and is used speci?cally to carryout employee mutual support programs and provide assistance to families facing hardship.
Performance-based Compensation
Employee Bene?ts
Metrics2024 Performance
100% signing rate of Work Safety Target Management Responsibility StatementsAchieved
100% implementation of performance-based rewards and penaltiesAchieved
100% timely closure rate of accidentsAchievedFull implementation of national and provincial work safety and ?re protection directivesAchieved
Zero extremely serious or major accidentsAchieved
Zero fatality rate for general accidentsAchievedZero incidents with direct economic losses exceeding RMB 1 millionAchievedA sound occupational health and disease prevention management system in place; no
reported occupational illness cases
Achieved
2024 Occupational Health and Safety Management Metrics
We have established a safety managementsystem based on the principles of "uni?edleadership, clearly de?ned responsibilities,tiered management, category-speci?cguidance, and full employee participation."A Work Safety Leadership Team has beenformed to coordinate our overall safetymanagement e?orts, under which adedicated o?ce has been set up and sta?edwith full-time or part-time safety o?cersresponsible for daily safety operations. Tofurther strengthen safety, environmental,and asset management, we established theSafety and Environmental ManagementDepartment in 2024. This department isresponsible for managing workplace safety,asset protection, environmental compliance,and public communication and stability.
We fully implement an all-employee responsibility system for workplace safety, with clearly de?nedsafety responsibilities extending from senior executives to front-line workers. Safety performancetargets are integrated into the annual performance evaluation systems of our business segments andsubsidiaries, as well as those of relevant management personnel. Assessment results are used as keyreferences in personnel selection, promotions, and rewards or disciplinary actions. Moreover, theperformance-based compensation of management personnel is directly linked to the achievement ofsafety and environmental targets within their areas of responsibility. In 2024, we signed a total of 409"Work Safety Target Management Responsibility Agreements" across all levels of the organization,achieving a 100% signing rate.
We uphold the safety management philosophy of "full employee participation, focused priorities, and tiered control," and have continuouslyre?ned our internal policies such as the "Safety Risk Identi?cation, Evaluation, and Tiered Control Regulations" and the "Major Safety RiskNoti?cation and Alert Guidelines." We have established a comprehensive safety risk management system to identify and strictly control potentialsafety hazards, harmful factors, and major sources of danger across our subsidiaries' production and operational activities, thereby enhancing ouroverall safety assurance capabilities.
Workplace Safety Management
Safety Risk Prevention and Control
Leader:ChairmanDoputy Loadars: Deputy Party Socrotary/DisciplinaInspection Committee Secretary/Tradelnion ChairmanExecutive Deputy General ManagerMembers: Leadersin charge of business segmentsDirector:Deputy PartySecretary/DisciplineInspectionCommittee Secretary/Trade Union (hairmmn
Deputy DirectorMembers
Work Safety
Leading
Group
O?ce
·Work Safety Management Structure
In accordance with the "Classi?cation and Code of Hazards in the Production Process" (GB/T 13861-2022) and the "Classi?cation of AccidentsInvolving Enterprise Employees" (GB6441-86), we conduct systematic and comprehensive hazard identi?cation that considers unsafe humanbehaviors, unsafe conditions of objects, adverse environmental factors, and managerial de?ciencies. This process covers production systems,equipment and facilities, working environments, and operational activities. Through methods such as system analysis, hazard investigation,delineation of hazardous areas, analysis of enabling conditions and triggering factors, and evaluation of potential hazard severity, we identify typesof hazards and assign appropriate safety risk levels. Based on this assessment, we develop targeted risk control measures.The primary responsible person at each subsidiary is tasked with organizing and leading the risk assessment and classi?cation work. We applyscienti?c methods such as the LEC Evaluation Method and the Risk Matrix Method to classify identi?ed hazards into four levels: Major Risk,Signi?cant Risk, Moderate Risk, and Low Risk—coded in red, orange, yellow, and blue respectively. A centralized safety risk database has beenestablished, and a "Major Safety Risk List" has been compiled. We have also created four-color safety risk distribution maps that clearly displayrisk levels, current control measures, responsible personnel, and control capabilities. Each risk has a corresponding ?le under the "One Risk, OneFile" system, with documentation managed according to its risk level. For all on-site identi?ed risks, we have de?ned corresponding emergencyresponse procedures and measures. In the event that an uncontrollable risk is identi?ed, we immediately halt operations in the a?ected area orshut down equipment, evacuate personnel from the danger zone, and implement corrective measures. After recti?cation, the risk is reassessed,and real-time monitoring is used to ensure continued safety.
Based on the results of safety risk assessments, we classify safety risks by both type and severity into four hierarchical levels: "Subsidiary Level,Department Level, Team Level, and Individual Position Level." We ensure that risk control responsibilities are systematically broken down andassigned to all relevant positions, including management and frontline sta?.Signed "Work Safety TargetManagement ResponsibilityAgreements"
in totalSigning rate achieved
%
Hazard Identi?cation and Risk Assessment
Tiered Safety Risk Control
· For major and signi?cant safety risks, the primary leaders of each subsidiary are required to oversee the implementation ofcontrol measures in accordance with the "Five Requirements" principle. When issues are identi?ed, they are responsible for promptly initiating corrective actions.· Work safety leaders of each subsidiary is responsible for organizing quarterly evaluations to assess the implementation and
e?ectiveness of control measures related to major risks. These evaluations focus on identifying any gaps or blind spots in riskidenti?cation and control e?orts. Based on the ?ndings, we re?ne and improve our control strategies. The Tiered Safety RiskControl O?ce is responsible for conducting day-to-day inspections in alignment with each risk's speci?c control measures, and for setting priorities for the following quarter based on quarterly and ad-hoc safety risk assessment results.
· Each subsidiary conducts quarterly reviews of identi?ed safety risks in their operations, implementing control measures across
areas including policies, management, procedures, equipment, emergency response, accountability, and performanceevaluation. In addition, each quarter, subsidiaries perform a focused inspection and analysis of key risk areas to ensure that control measures align with actual on-site conditions, enabling continuous improvement and optimization.
Furthermore, in areas identi?ed as having major risks, we implement the following measures: installing safety risk bulletin boards and distributingworkplace-speci?c safety risk noti?cation cards that specify hazards, potential accidents, preventive or emergency response measures, andreporting hotlines. For high-risk locations and job positions, we display prominent warning signs or alarm devices and equip sites with appropriateemergency equipment and evacuation routes. These measures are aimed at enhancing risk detection and early warning systems and improvingemployees’ ability to identify and respond to safety risks.
We continue to advance our safety inspection and hazard identi?cation e?orts in strict alignment withinternal policies such as the "Work Safety Management Measures" and the "Safety Hazard Investigation andRecti?cation Regulations." We place strong emphasis on the identi?cation and management of potentialhazards, assigning clear responsibility for the detection and resolution of all categories of safety risks. We alsoincorporate digital tools into our safety management practices to help prevent and reduce workplace accidents.In 2024, we focused on key risk areas including manufacturing and trade, construction sites, ?re safety,con?ned spaces, and new energy vehicles. We launched and coordinated a series of special campaigns suchas the Winter-Spring Fire Safety Recti?cation Campaign, Fire Safety Recti?cation of Polyurethane FlammableInsulation and Sandwich Materials, Con?ned Space Operations Recti?cation, Crackdowns on UnauthorizedConstruction and Illegal Hot Work, and the “100-Day Life Channel Clearance Campaign.” These initiativessigni?cantly deepened our e?orts in identifying and addressing potential hazards. Throughout the year,we identi?ed and recti?ed a total of 397 general safety hazards, including 250 general ?re safety issues, 41hazardous chemical risks, 2 con?ned space operation risks, and 104 other types of hazards, achieving a 100%recti?cation rate.
Safety Hazard Inspection
We place strong emphasis on safety inspections. In 2024, we conducted a total of 46 special safety inspections,including 20 pre-holiday inspections around Spring Festival, Qingming Festival, Dragon Boat Festival, Labor Day,and Mid-Autumn Festival; 11 comprehensive self-inspections; 6 targeted inspections for ?re hazards in facilities;3 special inspections focused on the recti?cation of major accident risks; and 6 inspections for typhoon and?ood preparedness. A total of 82 general hazards were identi?ed, including 58 ?re-related risks, 5 hazardouschemical-related risks, and 19 other types of hazards—all of which were fully recti?ed.
We organized self-inspection and recti?cationactivities and implemented multiple measuresto strengthen the foundation of safe operations.In warehouse management, we continued tooptimize and improve our emergency managementsystem and contingency response plans. We alsoincreased the frequency and intensity of safetyinspections during holidays and periods of naturaldisasters, with a focus on enhancing our overallsafety performance and ensuring stable and orderlyoperations. In 2024, two general safety hazardswere identi?ed and fully recti?ed. For o?ce safetymanagement, we worked closely with property management teams to conduct regular ?re safety checks,inspect ?re door closure status, and strictly enforce ?re prevention and anti-theft measures. Prior to holidays,we also reminded departments to secure doors and windows and disconnect power sources to ensure thesafety of o?ce premises. In terms of o?cial vehicle safety management, we continuously strengtheneddriver awareness and education. We made reasonable arrangements for long-distance and nighttime drivingtasks and strictly prohibited fatigued driving. We rigorously followed the "O?cial Vehicle Use ManagementGuidelines" and carried out regular comprehensive inspections and maintenance to ensure all vehiclesremained in optimal condition. In 2024, no safety incidents occurred involving o?cial vehicles, and all transporttasks were completed safely and reliably, providing strong logistical support for our business operations.
Xindeco ITG Automobile Group conducts both regularand ad hoc comprehensive safety inspections. Specialattention is given to safety checks around majorholidays, including New Year's Day, Spring Festival,Labor Day, the ?ood season, and the Mid-Autumnand National Day holidays. These inspections areaimed at identifying and addressing safety hazards ina timely manner, thereby preventing major accidentsand signi?cantly reducing the occurrence of generalincidents. In 2024, Xindeco ITG Automobile Groupidenti?ed a total of 106 safety hazards, all of which werefully recti?ed, achieving a 100% recti?cation rate.
In supplychain business
segment
In automobiledealershipbusiness segment
General safety hazards identi?edand recti?ed
in totalRecti?cation rate achieved
%
In electronics
technology
segment
Safety Hazard Inspection
To standardize emergency response procedures, we have developed and strictly adhere to acomprehensive set of emergency management policies, including the "Work Safety AccidentEmergency Response Plan," "Emergency Response Plan for Sudden Environmental Incidents,""Chemical Spill Emergency Response Plan," "Fire Emergency Response Plan," "Flood and TyphoonEmergency Response Plan," "Earthquake Emergency Response Plan," "Warehouse EmergencyResponse Plan," and the "Acute Occupational Hazard Emergency Rescue Plan." We also organizeregular emergency drills to enhance employees’ response capabilities in crisis situations. In 2024,we proactively conducted 34 emergency drills, with a total of 884 participants throughout the year.
We place great importance on raising employee awareness and competence in safety.Through a variety of formats such as seminars, on-site instruction, and online sharing,we provide comprehensive safety training to enhance employees’ safety knowledgeand skills, thereby laying a solid foundation for our safe production operations.In 2024, we developed an annual safety education and training plan. The trainingcovered national work safety guidelines, policies, laws, regulations, rules, andstandards; safety management and technology; occupational health; emergencymanagement; the formulation and implementation of emergency response plans; andanalysis of typical accident cases and emergency rescue e?orts. In conjunction with keynational safety awareness events such as "Work Safety Month," "Disaster Preventionand Reduction Day," and "119 Fire Awareness Day," we organized a series of activitiesincluding expert lectures, safety knowledge competitions, ?re safety training, safetyculture promotions, and emergency drills. These e?orts continuously strengthenedemployee awareness of safety responsibilities and improved their emergency responsecapabilities. Our non-ferrous and ferrous metals business divisions actively encouragedemployee participation in municipal safety management training programs. As a result,7 employees completed initial safety o?cer training and 12 employees passed safetyo?cer recerti?cation, injecting professional strength into our safety management teamand further advancing the specialization and standardization of our safety operations.In 2024, we conducted a total of 81 in-person safety training sessions with 3,710attendees, totaling approximately 5,565 hours of training. In total, 1,854 employeesparticipated in occupational health and safety training as well as emergency drills.
Emergency Management and Drills
Safety Education and Training
Safety Training
We are committed to advancing standardized and digitalized safety management, actively exploringthe application of digital technologies to enhance safety practices. Leveraging the "Yijian" platform,we launched a pilot program for a digital safety management system. This initiative aims to build asafety management platform aligned with our business operations, enabling real-time monitoring,veri?cation, and benchmarking. These digital capabilities have signi?cantly improved the overalle?ectiveness and precision of our production safety management.
Digitalizationof SafetyManagement
In 2024conducted
emergency drills
Conducted a total of
in-person safety training sessionsWith3,710
attendeesTraining delivered approximately5,565
hours in total
with a total of
participants
· For work safety accidents, we follow a four-level emergency responsestrategy, categorized as Level I, II, III, and IV from highest to lowest. Uponthe conclusion of rescue and recovery e?orts, each business unit is requiredto review and summarize the lessons learned from the emergency responseand submit an emergency response summary report with recommendations for future improvements.·We have formulated the "Acute Occupational Hazard Emergency Rescue Plan"and established a comprehensive emergency response organizationalstructure. For occupational hazards such as noise and dust, incidents areclassi?ed into three levels (Level I, II, III) based on severity. We have de?nedspeci?c response and handling procedures for each level to ensure swift ande?ective action during occupational hazard emergencies, thereby maximizing the protection of employees' health and safety.·For natural disasters such as earthquakes, typhoons, heavy rainfall, and?oods—typically driven by climate change—we classify events into four levels(Level I, II, III, IV) based on their impact and severity. We implement emergency support measures and coordinate rescue and recovery operations accordingly.
When responding to various risks and disasters, we implement a tieredresponse mechanism:
Emergency Drills
We care deeply about the balance between work and life for our employees.To promote well-being, we established a sports club and activelyencourage sta? to participate in various cultural and athletic activities suchas basketball tournaments, badminton competitions, and public speakingcontests. Our labor union provides employees with annual outdoor activityand travel passes, organizes regular health check-ups, and hosts wellnessseminars to support both physical and mental health. During the summerheat season, our union also organizes "Cooling Comfort" campaigns todeliver care packages and refreshments to frontline employees, helpingthem stay safe and healthy in high-temperature working environments.
Occupational Health Management
2024 Badminton Match
2024 Summer "Cooling Comfort" Campaign
2024 Basketball Match
GOVERNANCE
·Continuously improve the sustainable development governance framework·Establish a comprehensive risk management framework and enhance the risk control and compliance management system·No con?icts of interest incidents occurred throughout the year.·No incidents of money laundering or insider trading occurred throughout the year·No lawsuits or administrative penalties occurred due to unfair competition practices throughout the year.·100% of employees received communication on anti-corruption and bribery policies·100% of employees participated in anti-corruption training during the year·No incidents of tax violations occurred throughout the year.·Regularly disclose the sustainability report annually
⊙ 2024 Management Targets for Governance Matters
Xindeco2024Sustainability ReportRisk and Compliance ManagementBusiness PracticesGovernance
Risk and ComplianceManagement
We base our approach on development strategies and business plans,continuously improving the risk management and internal control systems.We strengthen the integration of risk control, compliance, and businessoperations, enhancing the company's risk management capabilities toe?ectively prevent risks associated with business development, ensuring thecompany's stable and sustainable growth.
Risk Control and Management SystemWe have progressively established a top-down, clearly de?nedenterprise risk management framework. Led by our Boardof Directors and General Manager’s O?ce, this frameworkis supported by three lines of defense: our headquarters’functional departments and business segments, the RiskManagement Working Group together with the Compliance& Risk Control Department, and the Internal Audit andSupervision O?ce. We closely integrate risk managementwith functional operations and business processes to ensureits e?ective implementation in our day-to-day operations.
At the same time, we further improve and enhance the risk assessment mechanisms of each business segment, strengthen riskcontrol across the segments, and reinforce the uni?ed management of enterprise-wide risk control.
Risk Management Organizational Framework
Board of Directors
General Manager'sExecutive MleetingRisk Management working Group
BusinessSegments
The departmentsresponsiblefor thecentralized management
ofvarious risks
The second line ofdefense "Coordlinatingresponsibilties"
The third line ofdefense"Independentsupervision"
Risk Controland ComplianceDepartment(Secretariat)
Internal Coutrel AuditDepartmentandSupervisory O?ce
Audit and Risk ControlCommittee
The ?rst line of defense*Implemnentingresponsi
bility"
Board of DirectorsGeneral Manager’s
Executive MeetingRisk Management WorkingGroup (Under the GeneralManager’s Executive Meeting)Risk Control and Compliance
Department (Secretariat)Functional DepartmentsBusiness SegmentsInternal Control AuditDepartment and Supervisory
O?ce (SupervisoryDepartments)
·In the supply chain segment, we have established a two-tier risk assessment meeting structure and developed the "Work Rules for Supply Chain
Segment Risk Assessment Meetings." The ?rst-tier risk assessment meeting for the supply chain segment is chaired by the company's chairman, withmembers including the company's general manager, CFO, vice general manager in charge of the Risk Control and Compliance Department, and vicegeneral manager in charge of business segments. The second-tier meetings include the Risk Assessment Meetings for the Non-ferrous Metal Divisionand the Ferrous Metal Division. These are chaired by the respective vice general manager in charge of the business segment, with members including the segment's general manager, risk control o?cer, and ?nancial o?cer.·In the electronics technology segment, digital intelligence technology segment, and automobile dealership segment, we have established riskassessment meetings. The chairman of the company serves as the chief chairperson, with members including the company's general manager, CFO,vice general manager in charge of the Risk Control and Compliance Department, general manager of the Risk Control and Compliance Department,general manager of the Finance Department, general manager of the Legal Department, general manager of the Treasury Department, as well as the segment leaders/responsible persons and ?nancial o?cers.·The risk assessment meetings follow internal work guidelines and are held regularly or irregularly based on business needs, to review business projects within the scope of approval authority.
·The company’s Internal Control Audit Department conducts an annual inspection of the compliance and execution of the projects reviewed by the risk assessment meetings, and submits a special report to the risk assessment meetings.
1.Approves the company's fundamental systems, policies, and other major matters related to enterprise-wide risk
management;
2.Establishes an Audit and Risk Control Committee to supervise and guide management in the implementation of
risk management work.
1.Organizes and implements risk management activities, including: approving risk management measures and
risk appetite, and determining key areas of focus;
2.Reviews the risk register and monitoring plans, evaluates business segment performance, and coordinates
resource allocation.
1.Coordinates enterprise-wide risk management. The group leader is a senior executive, and members are
appointed by the General Manager’s Executive Meeting;
2.Drafts systems and policies, proposes risk appetite, organizes risk assessments, and supervises and evaluates
the work of business segments.
1.Bear the primary responsibility for risk management, implement policies, and carry out daily operations;
2.Responsible for identifying, assessing, formulating response strategies, and monitoring and reviewing risks
within their respective scopes of responsibility.Implement risk management policies, cooperate in risk information collection and reporting, and acceptsupervision, inspections, and evaluations.
1.Conduct post-event supervision of risk management activities;
2.The Internal Control Audit Department conducts semi-annual inspections on key areas such as use of raised
funds, guarantees, and related-party transactions, and regularly reports to the Audit and Risk Control Committee.
Coordinates daily risk management tasks, leads the drafting and revision of policies, organizes risk identi?cation,assessment, monitoring, inspection, and evaluation, and promotes a risk management culture.
Xindeco2024Sustainability ReportRisk and Compliance ManagementBusiness PracticesGovernance
We continue to strengthen the development of risk management and internal control systems. In 2024, we developed the "Enterprise-WideRisk Management System," "Risk Management Working Group Operational Management Measures," and "Negative Client List ManagementImplementation Rules." Additionally, we revised existing system documents such as the "Futures and Derivatives Investment ManagementSystem," "Material Trade Business Classi?cation Control Requirements," "Management Measures for Responding to Emergency BusinessRisk Events," "Client Credit Evaluation Working Group Operational Rules," and "Supply Chain Business Credit Management Measures."In addition, to e?ectively implement risk management responsibilities, we have established speci?c risk management indicators, coveringareas such as compliance management, risk investigation and inspection supervision, risk control recommendations, and risk managementin each business segment. These indicators are linked to the performance of the Risk Control and Compliance Department personnel. Wehave also developed other personalized assessment criteria for di?erent positions, conducting regular comprehensive assessments. Forany violations of risk management regulations, such as failure to promptly identify, warn, respond to, report, or conceal and omit signi?cantoperational investment risks, resulting in asset losses or other adverse consequences, the company will investigate and collect evidenceaccording to the "Management System for Accountability of Violations in Business Investment." Depending on the severity of the situation,corresponding actions will be taken against the directly responsible individuals, supervisors, and leadership.To further strengthen the uni?ed management of risk control and enhance the overall risk control level of the company, in 2024, we willalign with our strategic planning and business goals. We will focus on four key objectives: reshaping risk appetite, restructuring the riskcontrol and compliance system, rebuilding a rapid response mechanism, and reengineering the compliance professional team. Thesee?orts aim to promote the development of the risk control and compliance management system. We will continuously improve andoptimize the risk management operating mechanism, addressing the weaknesses in the company's operational management.
Risk Identi?cation and AssessmentRisk Supervision and Inspection
Risk Monitoring and Reporting
We have established and improved the risk identi?cation and assessment mechanism in line with our operational managementand business realities. Our Risk Management Working Group organizes regular risk identi?cation and assessment activities withvarious functional departments and business segments to determine the key risk register. In the event of signi?cant changes in themacroeconomy, market environment, or corporate strategy that require adjustments to the key risk register, each business segmentwill conduct research and submit the proposed changes to our Risk Management Working Group, which will then adjust the key riskregister accordingly.
We establish and continuously improve our risk monitoring system based on the key risk register, dynamic risk identi?cation andassessment results, and the occurrence of major risk events. This system enables dynamic monitoring of risks to ensure the timelyand e?ective prevention and response to various risks. We strictly implement the operational risk classi?cation reporting mechanismand risk response system, strengthening the prevention of operational risks in each business segment. Based on the actual situationof each business segment, we identify key operational risk warning factors and develop the "Operational Risk Level Classi?cationIndicator Table" for each segment. The warning factors are divided into three risk levels, with clear risk quanti?cation standardsand reporting responsibilities. Each business segment strictly adheres to the requirements of the "Operational Risk Reporting andDisposal Management Measures," reporting risk issues in a timely manner according to the prescribed procedures, and formulatingand implementing response measures and solutions.
We have established a warning supervision mechanism and formed a warning supervision working group. The group is led by theleader in charge of the Risk Control and Compliance Department, with the general manager of the Risk Control and ComplianceDepartment serving as the deputy leader. The working group also includes risk control specialists and risk control personnel fromeach business segment as members. The group is responsible for supervising the implementation and progress of solutions torisk warning issues. The working group holds monthly meetings to speci?cally supervise warning issues, with the responsibledepartments reporting to the group on their response plans and progress in addressing risk points or warning issues identi?ed duringtheir daily operations.We have established an emergency response working group for unexpected risks and developed the "Emergency ManagementMeasures for Responding to Unexpected Operational Risk Events." We have set up an emergency response mechanism and clari?edthe reporting process for unexpected risks to ensure the timely and e?ective response to and handling of sudden operational riskevents, minimizing the potential signi?cant impact such events may have on the company.In addition, to strengthen the risk control awareness of personnel in the Risk Control and Compliance Department, we encourageemployees to promptly identify, report, and address potential risks. We have developed the "Risk Hazard Reporting and IncentiveScheme for Risk Control and Compliance Department Employees." This scheme rewards employees who meet certain criteria,including promptly identifying ?aws in risk control systems and processes and proposing optimization suggestions that are adopted,discovering and reporting risks during routine inspections to prevent risk events, or demonstrating exceptional performancein handling risk events and e?ectively mitigating ?nancial losses for the company. These employees will receive correspondingperformance points and rewards during the regular performance evaluations.
We continuously improve our risk investigation and supervision mechanism. By integrating risk monitoring, we strengthen the risksupervision, inspection, and early warning tracking for each business segment, while urging relevant units to implement correctiveactions in a timely manner to enhance operational risk prevention e?orts. In 2024:
In 2024
?We participated in the steel industry’s "Inventory Safety Joint Action," conducting monthly joint inventory checks of steel
warehouses with leading industry enterprises. We inspected multiple processing projects, promptly reporting and warning about identi?ed issues and urging corrective actions.?We conducted evaluations and management of logistics suppliers, self-managed warehouse operations, inbound and outbound
warehouse procedures, bonded warehouse receipt management, and compliance with the "Domestic Trade Direct Delivery Business Work Guidelines," holding specialized meetings to propose corrective measures.?We performed in-depth analysis and screening of key customers to prevent the risk of overly large exposure to a single customer.For customers whose credit transaction volume exceeds a certain threshold, we conducted debt analysis, and for customerswith excessive exposure in the non-ferrous and ferrous metal divisions and Xindeco ITG Automobile Group supply chain business, we conducted risk assessments.
?We inspected the stamp management practices in the supply chain and automotive segments, and prepared optimization reports. We organized self-assessments and cross-checks of stamp management practices across business segments.
Xindeco2024Sustainability ReportRisk and Compliance ManagementBusiness PracticesGovernance
Special Audit of the Risk Review Meeting
Risk Control and Compliance Education
Digital Risk Control and Development
We actively organize various forms and themes of risk control and compliance education, strengthen the professional developmentof the risk control team, and cultivate and enhance employees' awareness and expertise in risk management and internal control.
We continue to advance digital risk control and development, leveraging digital tools to enhance the quality and e?ciency of riskmanagement. In 2024, we further optimized the North-South system modules and approval processes, completed the developmentof the supply chain business inventory module, added new features such as warehouse supervision management, and optimizedthe "Supply Chain Business Logistics Document Platform," internal transaction contract approval processes, and internal creditevaluation approval processes to improve business approval e?ciency. Additionally, we improved the "Risk Review Meeting TrackingDashboard," designed and developed the non-ferrous ledger sorting program, which is now applied to spot system data imports, andadvanced the implementation of the new "Risk Data Dashboard" for emerging segments.
We continue to integrate internal control management into daily audit projects, continuously optimizing the internal control system.By strengthening audits of the company and its subsidiaries' operational management and business risk points, we promptly identifyde?ciencies and issues for corrective action, assisting in improving the compliance and operational level of the company and itssubsidiaries.
In 2024, the internal control audit work conducted included:
In 2024?We carried out a total of 17 internal audit projects for the company’s headquarters and each business segment, identifying 59
audit issues. We proposed 42 corrective actions with deadlines and 8 management suggestions. The completion rate for corrective actions within the deadlines reached 100%.
?We organized self-assessment activities for the e?ectiveness of internal controls in the company's headquarters functional departments and each business segment for 2023, resulting in the creation of an internal control self-assessment report.?Based on audit ?ndings, we provided corrective recommendations for internal control weaknesses and high-risk areas in the
business operations and management of various business units and functional departments, thereby promoting improvements in corporate management standards.
?We organized over 9 risk control and compliance-related
training sessions, covering topics such as risk control case
analysis, new work guidelines for risk review meetings,
data entry for tracking exposure business, exposure
statistics training, special training on letters of credit, and
ERP training for key operational processes and
management reports in supply chain operations.
?We conducted internal exams for the company's risk
control sta? to strengthen their management capabilities,
and organized exams on futures management policies for
new employees.
?We regularly held internal departmental exchange
meetings and risk control and compliance communication
sessions with various business segments, sharing cases
and experiences to enhance the professional skills and risk
management awareness of the risk control team.
Analysis of Classic Supply Chain Business Cases
Xindeco2024Sustainability ReportRisk and Compliance ManagementBusiness PracticesGovernance
公司治理
下设办公室
Business Practices
We uphold high standards of business ethics and strictly comply withrelevant laws and regulations, including the Anti-Unfair Competition Lawof the People's Republic of China, the Anti-Monopoly Law of the People'sRepublic of China, and the Interim Provisions on Banning CommercialBribery. We consistently practice integrity and compliant businessoperations, advocate for free and fair competition, and firmly opposeany form of corruption, bribery, fraud, or other improper conduct. Wecontinually enhance our daily supervision system, risk management,and internal control mechanisms, establishing robust mechanisms forclean risk prevention, integrity supervision, and complaint reporting. Bystrengthening ethical education, we integrate business ethics into ouroperations, making every effort to prevent integrity risks, continuallyimproving corporate moral standards, and maintaining an environmentof integrity, fairness, justice, and freedom in business.
Anti-Commercial Bribery and Anti-CorruptionWe are responsible for overseeing and leading the integrity construction work through our Discipline Inspection Commission (referred to asthe "Disciplinary Committee"). The Disciplinary Committee has an Inspection O?ce that focuses on three core functions: supervision andinspection, publicity and education, and discipline enforcement and accountability. We assist in ful?lling the responsibilities of supervisingthe construction of the Party's work style and integrity, improving the integrity risk prevention mechanism, enhancing the supervisorysystem that shifts focus to the front line, and strengthening our capacity for investigating and handling problem leads. Our goal is to guideemployees to adhere to laws and regulations, maintain integrity, and perform duties in accordance with the rules, ensuring that ouroperations are legal and compliant. To strengthen integrity building and anti-corruption work, we have also established a leading group forParty conduct and anti-corruption work, which is responsible for formulating annual tasks, organizing implementation, providing guidanceand supervision, as well as summarizing results and reporting to higher authorities.
We are continuously improving our integrity system by developing various policies anddocuments such as the "Disciplinary Committee Meeting Rules," "Anti-Fraud System,""Integrity Risk Prevention and Control Manual," "Integrity Risk Prevention and ControlEmbedded in Business Risk Control Work Management Measures (Trial)," "Interim Measuresfor Special Supervision and Inspection of the Implementation of the Central Eight Provisions'1+X'," "Management Measures for Leaders' Integrity Files," and "Implementation Measuresfor Regulating Integrity Talks for Leadership Personnel." These documents aim to strengthenthe guidance and regulation of integrity construction, anti-corruption, and anti-fraudwork, while also preventing integrity risks. We have explicitly outlined prohibited unethicalbehaviors in our "Anti-Fraud System," such as accepting bribes or kickbacks, embezzlingcompany property, deliberately concealing or misreporting transactions, and disclosingcompany trade secrets. Furthermore, our "Integrity Risk Prevention and Control Manual"provides detailed guidance on potential corruption and anti-competitive behavior in keyareas of business management. For example, during bidding processes, we prohibit settingrestrictive conditions that favor speci?c individuals or unfairly exclude other potential bidders.These documents serve as clear behavior guidelines for all employees and help e?ectivelysupervise and manage employee conduct.
Party Conduct andAnti-Corruption WorkLeading
Group
Administrative O?ce
·Lead: Chairman of the Board·Members: Deputy Party Secretary, Party Committee Members
·Lead: Discipline Inspection O?ce Secretary·Members: Heads of Party Committee O?ce, SupervisionO?ce, HR Dept., Budget Dept., Audit Dept., Legal Dept,
We rely on comprehensive risk management and internal control systems, focusing on key positions and areas, to continuouslyimprove the integrity risk prevention and control mechanism. This system is designed to ensure clear responsibilities, standardizedprocesses, de?ned risks, and timely warnings. We also continue to update the "Integrity Risk Prevention and Control Manual."Through early prevention of moral, ethical, institutional, and job responsibility risks, mid-term implementation of supervision andreporting mechanisms for e?ective monitoring, and post-event investigations and handling, we e?ectively prevent and detectcorruption within our business management. By embedding integrity risk control into overall business risk management, we ensurethe healthy and high-quality development of the company.We identify key integrity risk areas, such as construction projects, bidding, property transactions, and bulk trade, based on di?erentbusiness models. We also focus on critical positions related to personnel management, ?nancial control, asset management,and major decision-making. By identifying relevant integrity risk points and their risk levels, we establish appropriate preventionstandards and key measures. We continuously track, provide early warnings, and take preventive actions, organizing risk preventionand control investigations to e?ectively implement the integrity risk management mechanism. In line with our business managementpractices, we integrate annual integrity risk prevention and control measures into our overall business risk control e?orts as a keyimplementation step of the "Integrity Risk Prevention and Control Manual." Based on a comprehensive review of integrity riskpoints, we assess the integration of annual integrity risk prevention measures into business risk management. By conducting regularinspections, internal and external audits, and handling reports or issues from whistleblowers, we strengthen dynamic monitoring andmanagement of the integration of integrity risk prevention into business risk management. This ensures the normalization of integrityrisk identi?cation and resolution. In 2024, we comprehensively reviewed integrity risk points and expanded the scope of the "IntegrityRisk Prevention and Control Manual" to cover business units. We strengthened the integrity risk management for front-line businessoperations and urged subsidiary second- and third-tier investment companies to establish relevant systems for integrating integrityrisk prevention into business risk management.
Integrity Risk Prevention and Control
we actively explored andpromoted the establishmentof Integrity O?cers inenterprises outside of Xiamen.We de?ned the roles andresponsibilities of the IntegrityO?cers and outlined workrequirements. By leveragingthe "scout" and "front-line"functions of these o?cers,we strengthened integritysupervision for enterprisesoutside of Xiamen, ensuringthat supervision extends tothe front lines.
In 2024
Xindeco2024Sustainability ReportRisk and Compliance ManagementBusiness PracticesGovernance
Supplier Integrity Management
We fully leverage various forms of supervision—including intra-Party oversight, dedicated supervisory bodies, functional oversight,audit supervision, and public supervision—to continuously improve our supervisory system and ensure comprehensive oversightof integrity risk prevention e?orts. By combining regular self-assessments with periodic inspections, and dynamic supervision withintegrated evaluations, we enhance the e?ectiveness of our monitoring, enabling early detection and timely prevention of integrityrisks.
We continue to strengthen integrity management for our suppliers, striving to jointly uphold a standardized, honest, and transparentbusiness environment.In the digital intelligent technology segment, the business segment signs a Letter of Integrity Commitment and a Con?dentialityAgreement with shortlisted suppliers, while actively promoting the company’s business ethics policies to them, clearlycommunicating the integrity requirements they are expected to follow.In the automobile dealership segment, Xindeco ITG Automobile Group requires suppliers to sign an integrity responsibility agreementor include integrity responsibility clauses in contracts when conducting competitive negotiations, invited tenders, and public tenders.Suppliers are asked to proactively cooperate with the company in integrity risk prevention and control. If it is found that a supplierviolates the integrity commitment, they will be placed on the supplier's negative list."1+X" Supervision and Inspections
Routine Supervision and Inspection of "Public Electricity Used for Private Charging"
In 2024
?We formulated theImplementation Measures on Deepening the “1+X” Supeision Mechanism, promoting coordination and synergy across various forms of supervision.?We conducted 27 pre-appointment integrity interviews, 6 pre-appointment integrity assessments, and issued 52 integrity
feedback responses.?We carried out two rounds of routine “1+X” special inspections, covering 13 locations and prompting corrective action on 11
issues.
?Addressing problems such as private use of public electricity and lack of transparency in EV charging payments, we conducted
three rounds of on-site inspections for enterprises equipped with o?cial EVs and charging stations.?We developed the Embedded Supervision and “Clean Enterprise Protection” Program – Tailored Supervision Plan for Key Projects, implementing embedded supervision across major ongoing construction projects.?As part of our key governance initiatives, we launched a special campaign to address “irregular o?cial (business) receptions,” further reinforcing supervisory practices in this area.
?We carried out a special recti?cation e?ort targeting the misuse of overseas project commissions and intermediary fees for
personal gain, advancing our anti-corruption e?orts abroad and enhancing compliance in international operations.
Xindeco2024Sustainability ReportRisk and Compliance ManagementBusiness PracticesGovernance
To strengthen the awareness of responsibility among all employees and prevent various illegal, unethical, or negligent behaviors, we haveestablished relevant accountability systems and mechanisms. An accountability task force has been set up, consisting of leaders from theDiscipline Inspection Commission, Party Committee O?ce, Supervision O?ce, Legal Department, Internal Control and Audit Department,Human Resources Department, and the Trade Union, with the Secretary of the Discipline Inspection Commission serving as the leader.The Supervision O?ce is responsible for the daily operations of the task force. Any interested party can report suspected illegal, unethical,or negligent actions that have caused losses to the company, and the task force can also initiate an accountability investigation directly. Ifan investigation con?rms that a relevant individual is subject to accountability, responsibility will be pursued in accordance with relevantinternal regulations, considering the extent of asset losses and the nature of the issues. Possible measures include performance salarydeductions, recovery of incentive bene?ts, suspension, demotion, dismissal, or referral to relevant authorities.
We place great importance on the development of a clean culture and continually enrich andinnovate the forms and content of integrity education. This is to ensure widespread and e?ectivepromotion of integrity awareness, strengthen the integrity mindset among all employees, andcreate an atmosphere of integrity and righteousness within the company. In 2024, we organized 83integrity education activities and 14 warning education sessions. We also utilized platforms such asthe company’s WeChat o?cial account, internal OA, LED screens, and videos to release 88 piecesof work updates, policy interpretations, and warning cases, reaching 100% of our employees.
Accountability Investigation and Handling Procedures
Investigation
The Accountability WorkingGroup shall hold a meeting within 5 working days after receivingthe accountability report todecide whether to initiate anaccountability investigation.If the decision is to proceed,relevant departments willbe designated or a specialinvestigation team will beformed to verify the relatedmatters and prepare aninvestigation report.
·
·
Solution
The Accountability WorkingGroup will proposeaccountability handlingrecommendations, whichwill be submitted to thecompany's Party Committeefor review and decision.In accordance with theCompany Law and internalregulations, relevantaccountability procedures willbe carried out for di?erentaccountable individuals.
·
·
Report
The person responsible forreporting the accountabilitybehavior, such as theimmediate superior of theperson involved or theheads of relevant functionaldepartments, must report tothe Accountability WorkingGroup within 5 workingdays after discovering anyaccountability situation.Others may also report to theAccountability Working Group.
·
·
Integrity Accountability Mechanism
Development of Integrity Culture
Organized
integrity education activitiesConducted
warning education sessions
We focus on the central theme of "studying Party discipline" and carry out in-depth Party discipline education. We organizediscipline inspection and supervision cadres to "deliver learning to the door." The company's Discipline Inspection Commissionconducted a Party discipline education activity on the updated "Regulations on Disciplinary Action of the Communist Party ofChina" at the Eastern Platform Company, covering three platforms in Shanghai, with approximately 30 participants in the learningsessions.
We organized the "Strengthen Party Discipline Education and Build a Clean and Honest ITG" themed integrity culture monthactivities. We integrated integrity culture into tangible forms and jointly hosted a trunk culture market event with ITG Real Estate,with approximately 220 participants. We also created the "Qinglian Says: Guarding Clear Youth" integrity lecture, which won thesecond prize in the Xiamen grassroots theoretical lecture competition and the second prize in the third ITG Holding Youth SpeechContest.
We organized visits to integrity education bases for new Party members, new employees, and newly promoted young leaders.We arranged for our disciplinary inspection and supervision sta? to visit the Jinbing Village Integrity Museum to learn about itsthousand-year history, the stories of the Huang family's clean o?cials, and family culture, in order to inherit and promote theintegrity culture of the new era. We also organized a visit for the integrity o?cers and Party members in the Fuzhou region to theZuohai Qingfeng Study Center, where they participated in the "Study Party Discipline, Promote Integrity, Practice Action" themedactivity. Additionally, we arranged for integrity o?cers and Party members in the Shanghai region to visit the historical exhibitionhall of the West Shanghai Workers' School.
Highlight
Highlight
Highlight
Focus on deep coverage to strengthen the integrity defense line in di?erent regions
Innovate in educational methods to reinforce the integrity culture
Leverage red resources to deepen and solidify integrity education
Specialized Learning and Education on CorrectingIrregular Training Practices
Specialized Learning and Education onCorrecting Wasteful Spending, Public Funds forExtravagance, and Hedonism Issues
Specialized Learning on Correcting "New ImageProject" Issues
Xindeco2024Sustainability ReportRisk and Compliance ManagementBusiness PracticesGovernance
Tax Credit Evaluation and Restoration Specialized Training
Anti-Unfair Competition
Tax Compliance
We strictly adhere to the relevant laws and regulations on anti-unfair competition in both our home country and the countries orregions where we operate. We ?rmly oppose unfair competition and other actions that disrupt market order, consistently upholdingintegrity in our operations and actively maintaining a free, fair, and honest market competition environment. In 2024, we have notbeen involved in any lawsuits or administrative penalties due to unfair competition practices.
We consistently uphold the bottom line of tax compliance, strictly adhering to the "Enterprise Income Tax Law of the People's Republic ofChina" and other relevant tax regulations in both our home country and the regions where we operate. We are committed to maintainingthe legality, transparency, and stability of our tax practices, ensuring that our tax management aligns with business development andful?lling our tax obligations in accordance with the law, providing a solid foundation for the company's long-term and stable growth.We follow the "Internal Control Management Manual" and identify and manage potential tax risks in our operations according to internalcontrol processes. We focus on key risk points, implement e?ective countermeasures, and ensure compliance with tax obligations,e?ectively preventing and managing tax risks. We have established a regular communication mechanism with tax authorities in theregions where we operate, engaging in consultations and exchanges on tax policies, regulations, and practical matters to ensure legaland compliant tax practices. Through compliant tax management, we actively foster harmonious relationships with tax authorities,shareholders, partners, and society, contributing to the optimization and enhancement of the tax environment.In 2024, we signed a joint development agreement with the relevant departments of the tax authority and conducted tax compliancetraining for our ?nance and tax personnel. This initiative strengthened the interaction between the company and the tax authorities andhelped enhance the overall tax management level within the company.
we paid a total of249,582.10
thousand RMB in taxes,and no tax violationsoccurred.
In 2024
Complaint Mechanism and Whistleblower Protection
We outline our proactive attitude and stance towardscomplaints and reports from employees and otherstakeholders in the "Anti-fraud System," with clearprovisions regarding the channels for complaints, thehandling of complaints, and reporting procedures. Forany suspected violations of business ethics, we encourageemployees and other stakeholders to lodge complaints andprovide feedback through hotlines, email, letters, or othermeans, in order to collectively uphold an environmentof integrity, fairness, and impartiality in business. TheSupervision O?ce is responsible for managing the hotline,email, and postal complaints, receiving complaints andreports from employees and other stakeholders, whetheranonymously or with identi?cation, and promptly reportingthem to the management or the board of directors.In addition, we have developed the "Network Re?ection Platformfor Clue of Problem" and the "Feedback Platform for Opinions andSuggestions" as important channels for internal employees to reportissues and provide suggestions. Through e?ective integration ofsupervisory forces and information resources, we gradually achievereal-time online collection of problem clues and feedback, onlineclassi?cation and processing, and o?ine supervision and recti?cation,forming a standardized, convenient, and e?cient pattern of normalizedsupervision.At the same time, we also attach great importance to the protectionof complainants. Protection measures for complainants are clearlystipulated in the "Anti-Fraud System". We strictly implement acon?dentiality mechanism for complaints and reports, and relevantpersonnel are prohibited from disclosing any information aboutcomplainants or the content of complaints and reports to anydepartment or individual without authorization. Any form of illegaldiscrimination or retaliation against complainants is strictly prohibited.Personnel found to have leaked information about complainants orengaged in retaliatory actions against complainants will face dismissalor termination of their labor contracts. If their actions violate the law,they will be referred to judicial authorities for legal proceedings.
·Complaint Hotline:
0592-5608195
·Complaint Email:
csq@xindeco.com.cn
·Mailing Address:
Unit 1101, Block A, ITG Center, No. 4688 Xianyue Road, Huli District, Xiamen City
Complainants can lodge complaints and reports anonymously or withidenti?cation through the following channels:
Xindeco2024Sustainability Report
Appendix
Data Overview
EnvironmentMetricsUnit202220232024
Enviromental InvestmentAnnual total environmental investmentTen-thousand RMB139.67178.41125.63Environmental ManagementAnnual number of environmental emergencydrills
Times/4541Emissions and DischargeGHGScope 1 – Direct GHG emissions
tCO
e
1,594.001,560.131,445.97Scope 2 – Indirect GHG emissions from pur-chased energy
24,981.8027,170.7724,375.33Total GHG emissions (Scope 1+ Scope 2)26,575.8028,730.9025,821.30Emission intensity
tCO
e /hundred-mil-lion RMB of operatingrevenue
28.2740.1658.97Air PollutantsPM emissionsTon0.400.030.03Wastewater and RelatedTotal wastewater discharges
m
21,645.3259,312.6256,120.20Including:Discharged into surface water3,312.005,600.005,563.00 Discharged to sewage treatment plant18,333.3253,712.6250,557.20WasteHazardous WasteHazardous waste generated
Ton
660.17686.56689.49Transfer and disposal volume of hazardouswaste
660.17686.56689.49General WasteGeneral waste generation
Ton
1,960.701,165.23802.91Including: Industrial waste generated377.05821.85485.54 Domestic waste generated1,583.65343.38317.37General waste recycled243.64230.36254.35Including: Industrial waste recycled85.9567.6590.54
EnvironmentMetricsUnit202220232024Domestic waste recycledTon 157.69162.71163.81Energy ConsumptionElectricity consumption
kWh
43,804,658.5648,491,667.6346,248,893.78Including: Green electricity consumption/848,721.08823,388.80Electricity consumption density
kWh/ hundred-mil-lion RMB of operatingrevenue
46,600.4067,782.43105,626.01Natural gas consumptionm
0170.120Lique?ed petroleum gas consumptionTon1.4400Gasoline consumption
Litre
313,390.51426,323.85372,817.75Diesel consumption (mobile sources)228,102.03220,373.50204,445.83Diesel consumption (stationary sources)100.0000Water ResourcesWater withdrawal in water-stressed regions
m
/00Water withdrawal/336,713.77 517,729.88Water consumption/277,401.14461,609.68Water consumption density
m
/ hundred-millionRMB of operatingrevenue
/387.761,054.25
Xindeco2024Sustainability Report
Appendix
EmploymentMetricsUnit202220232024
Employee CompositionTotal employees
Person
4,0454,326 3,998Including:Full-time employee/4,326 3,998Part-time employee/00Non-employee workers/0 0Employee CompositionEmployee Composition by GenderMale
Person
2,5182,782 2,479Female1,5271,544 1,519Employee Composition by AgeUnder 30
Person
1,3441,387 1,151Between 30-502,5542,829 2,716Over 50147110 131Employee Composition by EducationMasters degree and above
Person
132148 147Bachelors degree1,0711,164 1,146Other degrees2,8423,014 2,705Employee Composition by FunctionProduction personnel
Person
1,1151,4771,438Sales personnel905960893Technical personnel1,1671,011 837Financial personnel351373 348Administrative personnel507505 482Female production personnel485499 573Female sales personnel328356 413Female technical personnel161132 28Female ?nancial personnel291309 294Female administrative personnel232248 211
EmploymentMetricsUnit202220232024Number of employees in STEM (Science, Tech-nology, Engineering, and Mathematics) positions
Person
/105 118Number of female in STEM (Science, Technology,Engineering, and Mathematics) positions
/16 26Proportion of female in STEM (Science, Technol-ogy, Engineering, and Mathematics) positions
%/15.2422.03Employee Composition by NationalityChina
Person
4,0414,323 3,993Others43 5Employee Composition by EthnicHan
Person
/4,189 3,853Other/137 145Employment of Local EmployeesNumber of employees locally hired within theprovince
Person3,2232,665 2,570Proportion of employees locally hired within theprovince
%79.6861.6064.28Number of female employees locally hired withinthe province
Person1,2031,006 1,006Proportion of female employees locally hiredwithin the province
%78.7865.1666.23Number of male employees locally hired withinthe province
Person2,0201,6591,564Proportion of male employees locally hiredwithin the province
%49.9438.3539.12Number of senior management locally hiredwithin the province
Person/87Proportion of senior management locally hiredwithin the province
%/100.00100.00Number of female senior management locallyhired within the province
Person/1 1Proportion of female senior management locallyhired within the province
%/100.00100.00Employment of Disabled IndividualsNumber of disabled employees hiredPerson554Propotion of disabled employees hired%0.120.120.10Management Composition by GenderManagement personnel
Person
/170172Including:Female management personnel/4954Proportion of female management personnel%/28.8231.40Senior management personnelPerson/87
Xindeco2024Sustainability Report
Appendix
Including: Female senior management person-nel
Person/11Proportion of female senior management per-sonnel
%/12.5014.29Mid-level management personnel
Person
/4944Including: Female mid-level management per-sonnel
/1715Proportion of Female mid-level managementpersonnel
%/34.6934.09Junior management personnel
Person
/113121Including: Female junior management personnel/3138Proportion of female junior management per-sonnel
%/27.4331.40Management personnel in revenue-generatingdepartments
Person
/10396Including:Female management personnel inrevenue-generating departments
/1920Proportion of female management personnel inrevenue-generating departments
%/18.4520.83Labor Contract SigningEmployees with signed labor contractsPerson4,0454,326 3,998Labor contract signing rate%100.00100.00100.00Support for Employee Career Planning and Job ChangesNumber of internal transfers or internal jobapplicants
Person/180138Proportion of internal transfers or internal jobapplicants
%/4.163.45Employee TrainingTotal annual investment in employee trainingTen-thousand RMB189.34186.37 216.07Total number of employees trainedPerson4,0454,326 3,998Average training cost per employeeTen-thousand RMB/0.040.05Number of female employees trained
Person
1,5271,544 1,519Number of male employees trained2,5182,782 2,479Proportion of female employees trained
%
100.00100.00100.00Employee training coverage rate100.00100.00100.00Total number of employee training sessionsTimes// 233Total training participantsParticipant/21,917 23,498Total employee training hours
Hour
12,135.0083,593.50 63,329Average training hours per employee3.0019.3215.84
Employee Training by TypeTotal hours of online training
Hour
/1,302.004,237.00Total hours of on-the-job coaching/2,618.002,400.00Total hours of leadership training/2,814.001,794.00Total hours of other types of training//300.00Total hours of professional skills training/69,990.0054,238.00Total hours of cultural competency training/6,870 .00360.00Average training hours per female employee/20.0016.88Average training hours per male employee/18.0015.20Average training hours per employee under 30/17.3015.90Average training hours per employee between30-50
/28.1716.10Average training hours per employee over 50/12.509.93Average training hours per junior mangementpersonnel
/15.4764.00Average training hours per mid-level mangementpersonnel
/18.5058.00Average training hours per senior mangementpersonnel
/24.00 107.70Average training hours per Chinese personnel/19.3215.86Employee PerformanceProportion of employees undergoing regularperformance and career development assess-ments
%/100.00100.00Freedom of Association and Collective Bargaining
Total number of employees in trade unionPerson/ 2,271 2,051Proportion of employees covered by collectiveagreements
Person/ 2,271 2,051Human Rights Impact AssessmentNumber of operational sites at risks of freedomof association and collective bargaining rights
Count
/00Number of operational sites at signi?cant risks ofchild labor incidents
/00Number of operationalsites at signi?cant risks of forced or compulsorylabor incidents
/00
EmploymentMetricsUnit202220232024EmploymentMetricsUnit202220232024
Note 1: Data on freedom of association and collective bargaining only includes operations located in Xiamen.
Xindeco2024Sustainability Report
Appendix
Security PracticeNumber of security personnel trained in humanrights policies or procedures
Person
/3098Number of security personnel employed by thecompany
/510Number of third-party security personnel/2588Proportion of security personnel trained inhuman rights policies or procedures
%/100.00100.00
MarketMetricsUnit202220232024
Incidents of Non-compliance A?ecting the Safety and Quality of Products and ServicesTotal number of incidents of non-compliancea?ecting the safety and quality of products andservices
Case//0Amount of damages from major liabilityaccidents a?ecting the safety and quality ofproducts and services
Ten-thousand RMB//0Incidents of Non-compliance Related to Product and Service Information and LabelingTotal number of incidents of non-compliancerelated to product and service information andlabeling
Case//0Incidents of Non-compliance Related to Marketing CommunicationsTotal number of incidents of non-compliancerelated to marketing communications
Case//0Information Security and Privacy ProtectionInformation security incident
Case
Number of incidents involving personal identityinformation breaches
//0Proportion of incidents involving personalidentity information breaches
%//0Number of customers a?ected by data breachesPerson/00Number of employees a?ected by data breachesPerson/00Incidents of customer privacy violationsCase/00Complaints Received and Complaint ResolutionTotal number of complaints
Case
/11466Total number of resolved complaints/10663Complaint resolution rate%95.2892.9895.45Customer SatisfactionNumber of participants in customer satisfactionsurveys
Person
/25,32426,171Number of highly satis?ed customers//24,864
MarketMetricsUnit202220232024
Proportion of highly satis?ed customers%//95.00Technology Research and DevelopmentTotal R&D investment amount in technologyTen-thousand RMB5,413.245481.784,567.95Ratio of R&D investment to revenue from corebusinesses
%//0.10Number of R&D personnelPerson//79Proportion of R&D personnel%//1.98Intellectual PropertyNumber of invention patents applied to the corebusinesses
Item
// 19Number of new patent applications// 41Number of new patents granted// 21Number of new copyright applications// 29Number of new copyright registrations// 35Number of new intellectual property rights//56Total number of granted patents// 235Total number of registered copyright// 131Total number of registered trademarks//135SuppliersRegional DistributionTotal number of suppliers
Count
3,0554,2475,176Number of suppliers in the province where thecompany is located
4598771,174Number of suppliers in Mainland China2,5843,7924,690Number of suppliers in other regions/455486Number of tier-1 suppliers/1,6581,741Number of tier-2 suppliers/2,4842,315Number of key suppliers/4740Supplier AuditNumber of new suppliers admitted in the year
Count
789855369Number of new suppliers selected via socialperformance metrics
/1458Number of new suppliers selected via environ-mental performance metrics
//7
Xindeco2024Sustainability Report
Appendix
Total number of suppliers evaluated throughdesk research
Count
/30145Total number of suppliers audited on-site/3530Number of suppliers audited in the year//50Number of key suppliers audited in the year/389Number of suppliers assessed with signi?cantactual/potential negative impacts
//2Number of suppliers terminated due tosigni?cant actual/potential negative impacts
//1Number of suppliers completing improvementsafter evaluation
/20Number of potential suppliers excluded in 2024due to non-compliance with social responsibility
//4Supplier ESG TrainingTotal number of suppliers participating in thesupplier capacity-building program
Count
//4Total number of key suppliers participating inthe supplier capacity-building program
//4Number of suppliers participating in ESG training//4Total number of suppliers' ESG trainingparticipants
Participant//18Total duration of suppliers' ESG trainingHour//27Procurement PacticesProportion of company expenditure on suppliersin the province where it operates
%/8.9815.69Supplier Human Rights Impact AssessmentNumber of suppliers at risks of freedom ofassociation and collective bargaining rights
Count
//0Number of suppliers at signi?cant risks of childlabor incidents
//0Number of suppliers at signi?cant risks of forcedor compulsory labor incidents
//0
MarketMetricsUnit202220232024
Occupational Health and SafetyMetricsUnit202220232024
Work Safety InputTotal annual input in occupational health andwork safety
Ten-thousand RMB
/ 307.54 324.59Total annual investment in production safetyliability insurance
//0.6Investment amount in workers' compensationinsurance
/ 99.54 124.93
Occupational Health and SafetyMetricsUnit202220232024
Coverage rate of workers' compensation insur-ance
%/ 100.00 100.00Safety TrainingTotal participants in occupational health andsafety training
Particpant2,228 3,563 3,710Total occupational health and safety traininghours
Hour4,036.00 5,344.50 5,565.00Total number of people receiving safety trainingPerson1,489 1,237 1,559Proportion of people receiving safety training%36.8128.5938.99Total number of female receiving safety trainingPerson566 446 577Proportion of female receiving safety training%38.0136.0537.01Number of safety emergency drillsTimes29 44 34Number of attendees for safety emergency drillsParticipant/ 923 884Number of o?ine safety training sessionsSession64 84 81Number of online safety training coursesCourse44 15 15Work Safety AccidentExtra-major accident
Case
Major accident000Serious accident000General accident000Number of work stoppagesTimes000Duration of work stoppagesDay000Occupational Health and Safety PerformanceOccupational injuries
Person
Occupational fatalities000Occupational fatality rate%000Total duration of occupational injury lossesHour000Total number of occupational injury incidentsCase000Total Recordable Injury Frequency Rate (TRIFR) -Employees
/
Lost Time Injury Frequency Rate (LTIFR) - Em-ployees
Total number of contractor occupational injuryincidents
Case000
Xindeco2024Sustainability Report
Appendix
Total duration of occupational injury losses forcontractors
Hour000Total Recordable Injury Frequency Rate (TRIFR) -Contractors
/
Lost Time Injury Frequency Rate (LTIFR) - Con-tractors
Occupational Health and SafetyMetricsUnit202220232024
CommunityMetricsUnit202220232024
Volunteer ServiceNumber of volunteer service eventsTimes/11065Total number of volunteersPerson/434325Total number of volunteer service participantsParticipant1,694518743Total volunteer service hours
Hour
4,553.00921.001,135.00Average volunteer hours per employee//3.49Number of environmental public welfare activi-ties
Times/51Indigenous RightsNumber of incidents infringing indigenous rightsin operational locations
Case/00National Strategy ResponseIndustrial transformation
Ten-thousand RMB
/680.53882.23Total trade volume with Belt and Road Countries //49,226Rural RevitalizationInvestment in rural revitalizationTen-thousand RMB/42.9398.70Number of people bene?ting from rural revital-ization
Person//3,053Local CommunityNumber of ongoing operational sites
Count
//2Total number of operational sites//48
GovernanceMetricsUnit202220232024
Business EthicsAnti-corruption Advocacy and TrainingProportion of board members, supervisors, andsenior management briefed on anti-corruptionpolicies and procedures
%
/100.00100.00Proportion of employees briefed on anti-corrup-tion policies and procedures
/100.00100.00Proportion of board members, supervisors, andsenior management received anti-corruptiontraining
/100.00100.00Proportion of employees received anti-corrup-tion training
/100.00100.00Business Ethics ViolationsCon?ict of interest incidents
Case
/00Money laundering or insider trading incidents//0Lawsuits or administrative penalties resultingfrom unfair competition incidents
/00
Xindeco2024Sustainability Report
Appendix
Guidelines No. 17 of Shenzhen StockExchange for the Self-Regulation of Listed Companies -Sustainability Report (Trial)
SASB Index
TopicClauseLocation
Chapter III Environmental DisclosureClimate ResponseArticle 21-28Climate ResponsePollutant DischargeArticle 30Pollutant Discharge
Waste DisposalArticle 31Waste DisposalEcosystem and Biodiversity ProtectionArticle 32Ecosystem and Biodiversity ProtectionEnvironmental Compliance ManagementArticle 33Environmental Compliance Management
Energy UtilizationArticle 35Energy UtilizationWater Resource UtilizationArticle 36Water Resource UtilizationCircular EconomyArticle 37Circular Economy
Chapter IV Social Disclosure
Rural RevitalizationArticle 39Rural RevitalizationSocial ContributionsArticle 40Social ContributionsInnovationArticle 42Innovation-driven DevelopmentEthics of Science and TechnologyArticle 43Not ApplicableSupply Chain SecurityArticle 45
Responsible SourcingSupply Chain SecurityEqual Treatment of SMEsArticle 46Equal Treatment of SMEsProduct and Service Safety and QualityArticle 47Product and Service Safety and Quality
Data Security and Customer PrivacyArticle 48Data Security and Customer Privacy
EmployeesArticle 50EmployeesChapter V Disclosure of Corporate Sustainability-Related Governance InformationDue DiligenceArticle 52
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial ImpactsResponsible SourcingSupply Chain SecurityStakeholder EngagementArticle 53Stakeholder EngagementAnti-Commercial Bribery and Anti-
Corruption
Article 55
Anti-Commercial Bribery and Anti-
CorruptionFair CompetitionArticle 56Anti-Unfair Competition
SASB TopicsAccounting MetricsLocation
Energy Management inRetail & Distribution
CG-MR-130a.1：
(1) Total energy consumed
(2) Percentage grid electricity
(3) Percentage renewable energy
Energy UtilizationData Overview
Data Security
CG-MR-230a.1：
Discussion of management approach to identifying andaddressing data security risks
Data Security and Customer PrivacyCG-MR-230a.2：
(1) Number of data security breaches
(2) Percentage involving customers’personally identi?able
information (PII)
(3) Number of customers a?ected
Data Security and Customer Privacy
Data Overview
Fair Labor Practices
CG-MR-310a.1：
(1) Average hourly wage
(2) Percentage of in-store employees earning minimum wage,
by region
Not ApplicableCG-MR-310a.2：
Employee turnover rate for in-store employees
(1) Voluntary
(2) Involuntary
Not ApplicableAmount of legal and regulatory ?nes and settlementsassociated with labor law violations
Not available in this report
Workforce Diversity &Inclusion
CG-MR-330a.1：
Percentage of gender and racial/ethnic group representationfor
(1) Management
(2) All other employees
Data OverviewCG-MR-330a.2：
Amount of legal and regulatory ?nes and settlementsassociated with employment discrimination
Not Applicable
Product sourcing,Packaging, andMarketing
CG-MR-410a.1：
Revenue from products third-party certi?ed to environmentaland/or social sustainability standards
Not available in this reportCG-MR-410a.2：
Description of processes to assess and manage risks and/orhazards associated with chemicals in products
GHG Emission Reduction ActionsResponsible SourcingCG-MR-410a.3：
Description of strategies to reduce the environmental impactof packaging
Waste DisposalCG-MR-000.A：
(1) Number of retail locations
(2) Number of distribution centers
Not available in this reportCG-MR-000.B：
(1) Retail space
(2) Distribution centers
Not available in this report
Xindeco2024Sustainability Report
Appendix
European sustainability reporting standards (ESRS)Location/omissionESRS 2 General Disclosures
BP-1
General basis for the preparation of sustainabilitystatements
About This ReportBP-2Disclosures in relation to speci?c circumstancesNot ApplicableGOV-1
The role of the administrative, management andsupervisory bodies
Governance Structure and MechanismsGovernance Structure and MechanismsGOV-2
Information provided to and sustainability mattersaddressed by the undertaking’s administrative,management and supervisory bodies
Governance Structure and Mechanisms
Risk and Compliance ManagementGOV-3
Integration of sustainability-related performance inincentive schemes
Governance Structure and MechanismsOccupational Health and SafetyGOV-4Statement on due diligence
Management of Material MattersClimate-Related Risks, Opportunities, and Financial
ImpactsResponsible SourcingSupply Chain SecurityGOV-5
Risk management and internal controls oversustainability reporting
Risk and Compliance ManagementClimate-Related Risks, Opportunities, and Financial
ImpactsSBM-1Strategy, business model and value chain
Climate StrategyResponsible SourcingSupply Chain SecuritySBM-2Interests and views of stakeholdersStakeholder EngagementSBM-3
Material impacts, risks and opportunities and theirinteraction with strategy and business model
Management of Material MattersRisk and Compliance ManagementClimate-Related Risks, Opportunities, and Financial
ImpactsIRO-1
Description of the processes to identify and assessmaterial impacts, risks and opportunities
Management of Material MattersRisk and Compliance ManagementIRO-2
Disclosure requirements in ESRS covered by theundertaking’s sustainability statement
About This Report
Management of Material Matters
IndexESRS E1 Climate ChangeE1-1Transition plan for climate change mitigationClimate StrategyE1-2
Policies related to climate change mitigation andadaptation
Climate StrategyE1-3
Actions and resources in relation to climate changepolicies
Climate Response
Circular EconomyE1-4
Targets related to climate change mitigation andadaptation
Climate-related Metrics and TargetsE1-5Energy consumption and mix
Energy UtilizationData OverviewE1-6Gross Scopes 1, 2, 3 and Total GHG emissions
GHG Emissions ManagementData OverviewE1-7
GHG removals and GHG mitigation projects ?nancedthrough carbon credits
Not ApplicableE1-8Internal carbon pricingNot Applicable
European sustainability reporting standards (ESRS)Location/omissionE1-9
Anticipated ?nancial e?ects from material physicaland transition risks and potential climate-relatedopportunities
Climate-Related Risks, Opportunities, and Financial
ImpactsManagement of Material MattESRS E2 PollutionE2-1Policies related to pollution
Wastewater Discharge ManagementAir Emissions ManagementWaste DisposalE2-2Actions and resources related to pollution
Wastewater Discharge ManagementAir Emissions ManagementWaste DisposalE2-3Targets related to pollutionEnvironmentalE2-4Pollution of air, water and soil
Wastewater Discharge Management
Air Emissions Management
Waste DisposalE2-5
Substances of concern and substances of very highconcern
Wastewater Discharge ManagementAir Emissions Management
Waste DisposalCircular EconomyE2-6
Anticipated ?nancial e?ects from pollution-relatedimpacts, risks and opportunities
Not ApplicableESRS E3 Water and Marine ResourcesE3-1Policies related to water and marine resourcesWater Resources UtilizationE3-2
Actions and resources related to water and marineresources
Water Resources UtilizationE3-3Targets related to water and marine resourcesEnvironmentalE3-4Water consumptionData OverviewE3-5
Anticipated ?nancial e?ects from water and marineresources-related impacts, risks and opportunities
Not ApplicableESRS E4 Biodiversity and EcosystemsE4-1
Transition plan and consideration of biodiversity andecosystems in strategy and business model
Not ApplicableE4-2Policies related to biodiversity and ecosystemsEcosystem and Biodiversity ProtectionE4-3
Actions and resources related to biodiversity andecosystems
Ecosystem and Biodiversity ProtectionE4-4Targets related to biodiversity and ecosystemsEnvironmentalE4-5
Impact metrics related to biodiversity and ecosystemschange
Not ApplicableE4-6
Anticipated ?nancial e?ects from biodiversity andecosystem-related risks and opportunities
Not Applicable
ESRS E5 Resource Use and Circular EconomyE5-1
Circular Economy Policies related to resource use andcircular economy
Circular Economy
ESRS Index
Xindeco2024Sustainability Report
Appendix
E5-2
Circular Economy Actions and resources related toresource use and circular economy
Circular EconomyE5-3
Circular Economy Targets related to resource use andcircular economy
EnvironmentalE5-4Resource in?owsCircular EconomyE5-5Resource out?owsCircular EconomyE5-6
Circular Economy Anticipated ?nancial e?ects fromresource use and circular economy-related impacts,risks and opportunities
Not Applicable
ESRS S1 Own Workforce
S1-1Policies related to own workforceEmployeesS1-2
Processes for engaging with own workforce andworkers’ representatives about impacts
Employee
CommunicationS1-3
Processes to remediate negative impacts and channelsfor own workforce to raise concerns
Employee
CommunicationS1-4
Taking action on material impacts on own workforce,and approaches to managing material risks and pursuingmaterial opportunities related to own workforce, ande?ectiveness of those actions
EmployeesS1-5
Targets related to managing material negative impacts,advancing positive impacts, and managing material risksand opportunities
EmployeesS1-6Characteristics of the undertaking’s employees
Equal EmploymentData OverviewS1-7
Characteristics of non-employees in the undertaking’sown workforce
Data OverviewS1-8Collective bargaining coverage and social dialogue
Employee Communication
Data OverviewS1-9Diversity metrics
Equal Employment
Data OverviewS1-10Adequate WagesEmployee Compensation and Bene?tsS1-11Social protectionEmployee Compensation and Bene?tsS1-12Persons with disabilitiesData OverviewS1-13Training and skills development metrics
Employee Training
Data OverviewS1-14Health and safety metrics
Occupational Health and Safety
Data OverviewS1-15Work-life balance metricsEmployee Compensation and Bene?tsS1-16Remuneration metrics (pay gap and total remuneration)Not available in this reportS1-17Incidents, complaints and severe human rights impacts Data OverviewESRS S2 Workers in the Value ChainS2-1Policies related to value chain workersResponsible Sourcing
S2-2
Processes for engaging with value chain workers aboutimpacts
Responsible SourcingS2-3
Processes to remediate negative impacts and channelsfor value chain workers to raise concerns
Responsible SourcingS2-4
Taking action on material impacts on value chainworkers, and approaches to managing material risks andpursuing material opportunities related to value chainworkers, and e?ectiveness of those action
Responsible SourcingS2-5
Targets related to managing material negative impacts,advancing positive impacts, and managing material risksand opportunities
Suppliers and CustomersESRS S3 A?ected CommunitiesS3-1Policies related to a?ected communitiesSocial ContributionsS3-2
Processes for engaging with a?ected communities aboutimpacts
Social ContributionsS3-3
Processes to remediate negative impacts and channelsfor a?ected communities to raise concerns
Social ContributionsS3-4
Taking action on material impacts on a?ectedcommunities, and approaches to managing materialrisks and pursuing material opportunities related toa?ected communities, and e?ectiveness of those actions
Rural Revitalization
Social ContributionsS3-5
Targets related to managing material negative impacts,advancing positive impacts, and managing material risksand opportunities
SocialESRS S4 Consumers and End-usersS4-1Policies related to consumers and end-users
Product and Service Safety and QualityData Security and Customer PrivacyS4-2
Processes for engaging with consumers and end-usersabout impacts
Product and Service Safety and QualityData Security and Customer PrivacyS4-3
Processes to remediate negative impacts and channelsfor consumers and end-users to raise concerns
Product and Service Safety and QualityData Security and Customer PrivacyS4-4
Taking action on material impacts on consumers andend-users, and approaches to managing materialrisks and pursuing material opportunities related toconsumers and end-users, and e?ectiveness of thoseactions
Product and Service Safety and QualityData Security and Customer PrivacyS4-5
Targets related to managing material negative impacts,advancing positive impacts, and managing material risksand opportunities
Product and Service Safety and QualityESRS G1 Business ConductG1-1Business conduct policies and corporate cultureBusiness PracticesG1-2Management of relationships with suppliers
Responsible SourcingSupply Chain SecurityEqual Treatment of SMEsG1-3Prevention and detection of corruption and bribery
Anti-Commercial Bribery and Anti-CorruptionComplaint Mechanism and Whistleblower ProtectionG1-4Incidents of corruption or bribery
Anti-Commercial Bribery and Anti-Corruption
Data OverviewG1-5Political in?uence and lobbying activitiesNot ApplicableG1-6Payment practicesEqual Treatment of SMEs
European sustainability reporting standards (ESRS)Location/omissionEuropean sustainability reporting standards (ESRS)Location/omission
Xindeco2024Sustainability Report
Appendix
Core ElementsDisclosure RecommendationsDisclosure Placement
Governance
a) The governance body(s) (which can include aboard, committee or
equivalent body charged with governance) or individual(s) responsible foroversight of sustainability-related risks and opportunities.
Governance Structure and Mechanisms
Risk and Compliance Managementb) Management’s role in the governance processes, controls and
procedures used to monitor, manage and oversee sustainability-relatedrisks and opportunities.
Governance Structure and Mechanisms
Risk and Compliance Management
Strategy
a) The sustainability-related risks and opportunities that could reasonably
be expected to a?ect the entity’s prospects within the time horizons—short, medium or long term.
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial Impactsb) The current and anticipated e?ects of sustainability-related risks andopportunities on the entity’s business model and value chain, andwhere in the entity’s business model and value chain sustainability-related risks and opportunities are concentrated
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial Impactsc) How the entity has responded to, and plans to respond to, sustainability-related risks and opportunities in its strategy and decision-making, andthe progress against plans the entity has disclosed in previous reportingperiods, including quantitative and qualitative information, and trade-o?s between sustainability-related risks and opportunities that the entityconsidered.
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial Impactsd) The quantitative and qualitative e?ects of sustainability-related risks and
opportunities on the entity’s ?nancial position, ?nancial performanceand cash ?ows for the reporting period, and the sustainability-relatedrisks and opportunities identi?ed for which there is a signi?cant risk ofa material adjustment within the next annual reporting period to thecarrying amounts of assets and liabilities reported in the related ?nancialstatements, and how the entity expects its ?nancial position, ?nancialperformance and cash ?ows to change over the short, medium andlong term, given its strategy to manage sustainability-related risks andopportunities.
Management of Material Matters
e) The resilience of the entity’s strategy and its business model to thosesustainability-related risks
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial Impacts
Risk Management
a) The processes and related policies the entity uses to identify, assess,prioritize and monitor sustainability-related risks, including informationabout: the inputs and parameters the entity uses，whether and how theentity uses scenario analysis to inform its identi?cation of sustainability-related risks, whether and how the entity prioritizes sustainability-relatedrisks, how the entity assesses the nature, likelihood and magnitude of thee?ects of those risks.
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial ImpactsRisk and Compliance Managementb) The processes the entity uses to identify, assess, prioritize and monitorsustainability-related opportunities, including: whether and how theentity uses scenario analysis to inform its identi?cation of sustainability-related opportunities.
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial Impactsc) The extent to which, and how, the processes the entity uses toidentify, assess, prioritize and monitor sustainability-related risks andopportunities are integrated into and inform the entity’s overall riskmanagement process.
Climate-Related Risks, Opportunities, and
Financial ImpactsRisk and Compliance Management
Metrics and Targets
a) Metrics required by an applicable IFRS Sustainability Disclosure Standard.
EnvironmentalSocialGovernanceb) Metrics the entity uses to measure and monitor sustainability-related risksor opportunities and its performance in relation to that sustainability-related risk or opportunity.
EnvironmentalSocialGovernancec) Any targets the entity has set it is required to meet by law or regulation.
EnvironmentalSocialGovernance
Core ElementsDisclosure RecommendationsDisclosure Placement
Governance
a) The governance body(s) (which can include a board, committee or
equivalent body charged with governance) or individual(s) responsible foroversight of climate-related risks and opportunities.
Governance Structure and MechanismsRisk and Compliance Managementb) Management’s role in the governance processes, controls andprocedures used to monitor, manage and oversee climate-related risksand opportunities
Governance Structure and MechanismsRisk and Compliance Management
Strategy
a)The climate-related risks and opportunities that could reasonably beexpected to a?ect the entity’s prospects within time horizons—short,medium or long term, whether the entity considers the risk to be a climate-related physical risk or climate-related transition risk
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial Impactsb)The current and anticipated e?ects of climate-related risks andopportunities on the entity’s business model and value chain, and wherein the entity’s business model and value chain climate-related risks andopportunities are concentrated
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial Impactsc)Information about how the entity has responded to, and plans to respondto, climate-related risks and opportunities in its strategy and decision-making, including how the entity sets targets, how the entity is resourcingand quantitative and qualitative information about the disclosed progressof plans.
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial Impactsd)The quantitative and qualitative e?ects of those climate-related risks andopportunities on the entity’s ?nancial position, ?nancial performanceand cash ?ows for the reporting period, the climate-related risks andopportunities identi?ed in paragraph 16(a) for which there is a signi?cantrisk of a material adjustment within the next annual reporting period to thecarrying amounts of assets and liabilities reported in the related ?nancialstatements, and how the entity expects its ?nancial position, ?nancialperformance and cash ?ows to change over the short, medium and longterm, given its strategy to manage climate-related risks and opportunities.
Management of Material Matterse)The entity’s assessment of its climate resilience, including the entity’sassessment for its strategy and business model, the signi?cant areas ofuncertainty considered in the entity’s assessment of its climate resilienceand the entity’s capacity to adjust or adapt its strategy and businessmodel to climate change over the short, medium and long term. The entityshall use climate-related scenario analysis to assess its climate resilienceand disclose how and when the climate-related scenario analysis wascarried out, including information about the inputs the entity used, the keyassumptions the entity made in the analysis and the reporting period inwhich the climate-related scenario analysis was carried out.
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial Impacts
Risk Management
a) The processes and related policies the entity uses to identify, assess,prioritize and monitor climate-related risks, including informationabout: the inputs and parameters the entity uses, whether and how theentity uses climate-related scenario analysis to inform its identi?cationof climate-related risks, whether and how the entity prioritizes climate-related risks, how the entity assesses the nature, likelihood andmagnitude of the e?ects of those risks
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial ImpactsRisk and Compliance Managementb) The processes the entity uses to identify, assess, prioritize and monitorclimate-related opportunities, including information about whetherand how the entity uses climate-related scenario analysis to inform itsidenti?cation of climate-related opportunities.
Management of Material MattersClimate-Related Risks, Opportunities, and
Financial Impactsc) The extent to which, and how, the processes for identifying, assessing,
prioritizing and monitoring climate-related risks and opportunities areintegrated into and inform the entity’s overall risk management process.
Climate-Related Risks, Opportunities, and
Financial ImpactsRisk and Compliance Management
Metrics and Targets
a) The cross-industry metric categories of greenhouse gas emissions,
internal carbon prices, the percentage of executive managementremuneration recognized in the current period that is linked to climate-related considerations, capital deployment towards climate-related risksand opportunities, the amount and percentage of assets or businessactivities vulnerable to climate-related risks and opportunities.
GHG Emissions Managementb) Industry-based metrics that are associated with one or more particular
business models, activities or other common features that characterizeparticipation in an industry.
GHG Emissions Managementc) The quantitative and qualitative climate-related targets the entity has set
or it is required to meet by law or regulation, progress towards reachingthe target, information about its performance, and each greenhouse gasemissions target.
Environmental
SocialGovernance
ISDS Index
IFRS S1
IFRS S2