Message from the CEO
/ 01 /
OPPLE Lighting Co.,Ltd
2024
Environmental, Social andGovernance (ESG) Report
2024 Environmental, Social and Governance (ESG) ReportContents
About the Report
Report Overview
This report aims to objectively and fairly present the Environmental, Social, and Governance (ESG) performance of OPPLELighting Co., Ltd. and its subsidiaries (collectively referred to as "OPPLE Lighting", "the Company", or "we") in 2024. For corporategovernance details, please refer to the "Corporate Governance" section (A Shares) in theOPPLE Lighting Co., Ltd. 2024 AnnualReport ("2024 Annual Report").
Scope & Boundaries of ReportThis Report covers the period from January 1 to December 31, 2024, with some content extending moderately beyond thisperiod. The timeframe of the report aligns with our2024 Annual Report. The disclosed information encompasses OPPLELighting's headquarters and subsidiaries. Unless otherwise stated, the scope of the report is consistent with the scope of the2024 Annual Report. All monetary values are denominated in RMB unless speci?ed.
Sources & Reliability AssuranceTextual content and case studies are derived from internal statistics, documentation, and internal communications. Partial datais sourced from the2024 Annual Report, while other ?gures originate from internal systems or manual records. The Board ofdirectors and all directors guarantee that the Report contains no false records, misleading statements or material omissions,and assume individual and joint liability for its authenticity, accuracy, and completeness.
Access & Feedback
This report is available in print and electronic formats. The electronic version can be accessed on:
Company website: https://www.opple.com.cn/Shanghai Stock Exchange (SSE) website: http://www.sse.com.cn/
Basis of Preparation
This report is primarily prepared in accordance with theGuidelines No. 14 of Shanghai Stock Exchange for Self-Regulationof Listed Companies—Sustainability Report (Trial). The Company has reported the information cited in the Global ReportingInitiative (GRI) index for the reporting period with reference to the GRI standards. It also references global frameworks, includingtheSustainability Accounting Standardsissued by the Sustainability Accounting Standards Board (SASB), and the UnitedNations Sustainable Development Goals (UN SDGs). The content is tailored to the Company's current development stage andESG context. The report has been reviewed and approved by the Board of Directors (The Board) of the Company.
We value the feedback from stakeholders, and the readers are free to contact us via:
Tel: +86-021-3855 0000 (ext. 6720)Email: Public@opple.comAddress: Building V1, MixC, No. 1799 Wuzhong Road, Minhang District, Shanghai
AppendixIndex of SSEGRI Content IndexSASB IndexGreenhouse Gas Veri?cation Statement
ContentsMessage from the CEOOPPLE Lighting: A Legend of LightCorporate PrologueESG Strategy2024 Key Performance Highlights
Steady Progress, BuildingGovernance ExcellenceOptimizing ESG GovernanceEnhancing Responsible GovernanceUpholding Business EthicsResponsible Marketing PracticesPrivacy & Security Protection
Illuminating Lives, Leading aBrighter FutureStringent Product Quality ControlEmpowering Product InnovationEnhancing Customer ExperienceDeepening Commercial Partnerships
Embracing Green, AdvancingToward a Low-Carbon FutureEnvironmental Compliance ManagementClimate Change RespondingResource Optimization & Utilization
Talent Convergence, Building aFul?lling Workplace TogetherEmployee Rights ProtectionEmpowering Employee GrowthEmployee Health & SafetyEmployee Care & Communication
Win-Win Cooperation, Building aSustainable Supply ChainSupplier Management OptimizationEnsuring Responsible Supply ChainSupplier Communication & Training
Commitment & Compassion,Ful?lling Our Social ResponsibilityGreen CitySocial Responsibility
Message from the CEO
/ 2 // 3 /
2024 Environmental, Social and Governance (ESG) Report
Message from the CEO2024 marked a year of steadfast progress in our sustainability journey. Guided by our mission to "Create Value out of Light", wehave deeply integrated ESG principles into our corporate strategy, leveraging technological innovation and responsible practices todeliver healthier, smarter, and more sustainable lighting solutions for global users.Our ESG disclosures focus on six key dimensions: Steady Governance, Illuminating Products, Green & Low Carbon, TalentDevelopment, Collaborative Partnerships, and Social Responsibility.
Building Foundations through Governance ExcellenceWe recognize that sound governance is the cornerstone of sustainable growth. In 2024, we strengthened our ESG governancestructure by establishing a three-tier management system: Board oversight, Strategy and ESG Committee coordination, and ESGTaskforce execution. This ensures seamless alignment between sustainability goals and business operations. We also prioritizedtransparent communication with internal and external stakeholders, reinforcing our commitment to ethical governance andcompliance.Illuminating Lives through Innovation
Staying true to our "Create Value out of Light" mission, we drive product innovation through cutting-edge R&D and rigorous qualitycontrol, delivering intelligent, health-centric lighting ecosystems. We invest heavily in technological advancement, safeguardintellectual property, and actively shape industry standards. By enhancing service excellence and customer experience, we arebuilding a digital, end-to-end service ecosystem. Together with partners, we pioneer smart, low-carbon solutions, advancing thelighting industry while empowering sustainable living through light.
Pioneering a Low-Carbon Future through Green InnovationAddressing climate change is a global imperative and a core responsibility for us. We actively support China's "Carbon Peakingand Carbon Neutrality" goal by reducing operational emissions through energy transition, solar infrastructure, e?ciency upgrades,and energy-saving initiatives. Our integrated low-carbon solutions —spanning energy planning, energy-saving retro?ts, and smartsystems — drive green transformation across the entire value chain. During the reporting period, our Suzhou Industrial Park earnedprovincial-level Green Factory certification, while our high-efficiency streetlights and smart lighting systems were deployed inmultiple cities, empowering urban decarbonization with intelligent solutions.
Empowering Teams through People-Centric ValuesOur employees are our asset. We foster a diverse, inclusive, and ful?lling workplace by safeguarding rights, enabling career growth,o?ering tailored training, and conducting regular satisfaction surveys. In health and safety, we achieved full ISO 45001 compliancewith zero major workplace accidents, demonstrating our unwavering dedication to employee well-being.Forging a Sustainable Future through CollaborationCollaboration lies at the heart of our success. We build resilient, transparent, and sustainable supply chains through rigoroussupplier screening, tiered management, performance evaluations, and responsible procurement practices. By promotinggreen operations and integrity management, we co-create an eco-conscious supply chain ecosystem with partners. By regularengagement and capacity-building programs, we strengthen mutual growth, driving industry-wide sustainability.Lighting Up Society through ResponsibilityWe harness our expertise to give back. In 2024, we expanded initiatives in education, health, and community support: donatedhealthy lighting systems to rural schools, conducted public awareness campaigns on household lighting environments, andorganized elderly care initiatives in community centers. These actions not only spread warmth but also embody our pledge to growtogether with society.Looking ahead, guided by our vision of "Creating the World's Top Intelligent Lighting Brand", we will deepen partnerships in greeninnovation, technological advancement, and social responsibility. Together, we strive to illuminate a brighter, more sustainablefuture, where every beam of light contributes to human well-being and planetary sustainability.
OPPLE Lighting:
A Legend of Light
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2024 Environmental, Social and Governance (ESG) Report
OPPLE Lighting: A Legend of LightCorporate PrologueFounded in 1996, OPPLE Lighting (Stock Code: 603515.SH) have adhered to our brand philosophy of "See Beyond" and the missionto "Create Value out of Light", striving to become a global leader in smart lighting solutions. As a trailblazer in China's lightingindustry, we leverage our strengths in distribution channels, technology, service, and innovation to drive intelligent upgradesacross the sector through healthy, tech-driven, and stylish designs.With nearly 6,000 employees, we operate production and o?ce bases in Shanghai (the headquarter), Zhongshan, Wujiang, andSouth China, forming a complete industrial chain spanning R&D, manufacturing, sales, and service. Our in-house R&D team holdsover 3,800 authorized patents and supports industry-leading smart production lines. The product portfolio covers light sources,luminaires, and electrical appliances, o?ering full-scenario lighting system solutions for residential, commercial, and industrialapplications.Backed by a robust sales force and a global network, we now serve over 135,000 retail outlets, with operations spanning 70+countries and regions across Asia-Paci?c, Europe, the Middle East, and beyond. We have contributed to prestigious projects suchas the World Expo Private Enterprise Pavilion, Beijing International Horticultural Exhibition Plant Pavilion, and Dubai Expo ChinaPavilion, while showcasing innovations at global events like the Frankfurt Lighting Fair. Driven by the vision of "Creating the World'sTop Intelligent Lighting Brand", we have earned international accolades including Germany's Red Dot Award, iF Design Award,and Japan's G-Mark for consecutive years. Through relentless innovation, we continue to rede?ne the value of light and lead theindustry's evolution.
Corporate Culture
Leveraging SDL Smart Spectrum and circadianlighting technologies, we simulate naturallight rhythms to regulate visual and emotionalexperiences, creating biologically aligned lightingenvironments for homes, offices, healthcarefacilities, and other settings. Our near-natural lightsolutions enhance visual comfort while supportingphysiological and mental well-being.
As a leader in lighting research, we have led orcontributed to multiple national and industrystandards. Collaborating with institutions like TongjiUniversity and Wuhan University, we developedlandmark projects such as the "Antarctic Human-Centric Wellness Cabin", delivering professional full-spectrum and precision optical solutions for globalusers. After nearly 30 years of meticulous e?orts in thelighting industry, we have established core strengthsin branding, distribution, R&D, manufacturing, talentdevelopment, and management.
With annual R&D investment exceeding RMB 300million, we pioneer innovations like intelligentalgorithms and digital twins to build a "software-defined lighting" ecosystem. This drives thetransition from single smart ?xtures to holistic smarthome lighting systems, seamlessly integratinglighting technology with smart home ecosystems.Our proprietary digital power system revolutionizesdriver-controller interfaces through advanced digitalprotocols.We fuse minimalist aesthetics with intelligentinteraction, using dynamic color temperatureadjustments and scene-based lighting effectsto craft tech-forward, artistic environments forhomes and commercial spaces. Our youth-centric, personalized designs redefine premiumliving trends. We have earned international designauthoritative awards, such as the Germany's RedDot Award, the iF Design Award, and Japan's GoodDesign Award for consecutive years.
Open CorporateCulture
Integrity & Commitment Accountability Pursuit of Excellence
Leading & Surpassing Agile Responsiveness Rapid Growth Curiosity & Open-minded Resilient to Setbacks Encourage Innovation
3 Manufacturing CentersOPPLE Lighting is headquartered in Shanghai and hasmanufacturing centers in Industrial Parks in Wujiang(Suzhou), Zhongshan, and South China/ 4 /
VietnamThailandShanghaiGlobal HeadquartersNew DelhiIndia HeadquartersDubaiMiddle EastHeadquarters
NetherlandsEuropean Headquarters
Indonesia
OPPLE Lighting has over
3,800patents
Diversi?ed Development: Operations across 70+countries and regions spanning ?ve continents,135,000+ sales outlets worldwide
Health
Expertise
SciTech
Design
See BeyondBrandConcept
Innova-
tion
Speed
Respon-sibility
Create Valueout of LightBrandMission
Creating the World's TopIntelligent Lighting BrandBrandVision
/ 6 // 7 /
DevelopmentMilestones
We have deeply integrated ESG principles into our corporate strategy, dedicating to drive sustainable business growth whileactively ful?lling corporate social responsibilities. Aligned with internal/external development trends, stakeholder expectations,and the UN 2030 Sustainable Development Goals (SDGs), we have established a comprehensive ESG framework. Moving forward,guided by our mission to "Create Value out of Light", we will continue to pioneer innovative ESG practices. These e?orts will fuelprogress toward our vision of "Creating the World's Top Intelligent Lighting Brand" while contributing to human well-being andglobal green transformation.
ESG Strategy
Traditional Lighting Era
Wujiang (Suzhou) manufacturing center was put into
operation, becoming Asia's largest lighting industrial park Launched the OPPLE brand. Opened the ?rst OPPLE-branded retail store
Zhongshan manufacturing center was established. Founders
Wang Yaohai and Ma Xiuhui, putting their dreams into
practice
LED Lighting Era
Put the ?rst LED automated production line into operation Established Wujiang (Suzhou) R&D CenterFounded European subsidiary and operations team,
o?cially entering mature lighting markets
The revenue exceeded RMB 4 billion, reaching new heights
Successfully listed on the A-share market (Stock Code: 603515).SH
Intelligent Lighting Era
O?cial lighting partner of China Pavilion at Dubai Expo
2020:Provided full-scenario smart lighting solutions, showcasingIntelligent Chinese Manufacturing to the world
Awarded national "Green Factory" certi?cation Expanded to 70+ countries, illuminating millions of homes globally
Broke ground on South China Industrial Park, building a smart manufacturinghub as a strategic node for Southeast Asia
Ranked No.1 in lighting and electrical products during Double ELevenShopping Festival for multiple consecutive years
Launched next-gen whole-home smart lighting solutions, ushering in a new eraof intelligent lighting Introduced industry-leading "Software-De?ned Lighting" SDL Smart Spectrum Technology
2024
1996
2013
2015
2016
202320222021
2020
OPPLE Lighting's Precision Intelligent Manufacturing Base commences construction
Showcases SDL Smart Spectrum Technology at Frankfurt Exhibition, building an eco-
interactive experience and ushering in a new era of smart lighting
/ 6 // 7 /
OPPLE Lighting:
A Legend of Light
2024 Environmental, Social and Governance (ESG) Report
Building Governance Excellence
Anti-Corruption Corporate Governance Information Security
Anti-Unfair Competition Information Disclosure
Advancing Toward Low-Carbon Future Water Resources Energy Usage
Raw Materials & PackagingEmissions & HazardousSubstances Management
Leading a Brighter Future Product Quality & Safety Intellectual Property Protection Product R&D InnovationBuilding a Sustainable Supply Chain
Supplier Management Optimization Ensuring Responsible Supply Chain Supplier Communication & Training
Building a Ful?lling Workplace Together Employee Development Occupational Health & Safety Labor Management
Ful?lling Our Social Responsibility
Customer ServicePhilanthropy & Community
Initiatives
20122000
/ 8 // 9 // 8 // 9 /
OPPLE Lighting:
A Legend of Light
2024 Environmental, Social and Governance (ESG) Report
2024 Key Performance Highlights
Optimizing ESGGovernance
Responded to CDP questionnaireand EcoVadis assessment
Awarded"A"
gradeby Sino-Securities Index ESG Rating
Conducted100+roadshows to maintain closestakeholder engagement
"AA"by Straight ?ush ESG Rating
Responsible GovernanceEnhancement
Covering
Tier-1 departments
33.3
%coverage of Tier-2 department
%recti?cation rate
Audit Department completed
audit projects
Including
large-scale non-productionprocurement reviews
Held
shareholder meetings
board meetings
supervisory board meetings
BuildingGovernanceExcellence
Leading a Brighter Future
AdvancingToward a Low-Carbon Future
Building aFul?llingWorkplaceTogether
Building a Sustainable Supply Chain
Ful?lling Our Social Responsibility
Responsible Marketing PracticesOrganized
after-sales service trainingsBene?ting3,100+participants
Upholding Business EthicsDelivered
anti-fraud training sessions, which cover all employees
Innovation-DrivenProduct Development
Held4,532valid patents by reporting period-endEmployed
R&D sta?Secured
new patents
trademarks
Deepening commercial cooperation
Participated in drafting
industry standards
Customer Experience Excellence
85.7
%distributor satisfaction rate
96.5
%+end-user satisfaction rate
%complaint response rate
Strict Product Quality Control
Achieved ISO 9001 Quality Management Systemcerti?cation
%of recyclable packaging materials used
Resource E?ciency
Achieved annual water conservation targets
2024 energy consumption per RMB 10,000output value
153.68
million yuan / RMB 10,000 output value
2024 energy consumption perunit of product
103.90
kgce/10,000 lighting units
2024 Solar PV generation
million kWh
Climate Change RespondingWujiang Industrial Park passed ISO 50001 Energy Management System recerti?cation
Total environmental protection investmentRMB
3.4382
million
Environmental Compliance
Management
Suzhou OPPLE Lighting Co., Ltd. certi?ed as2024 Jiangsu Provincial Green FactoryMaintained ISO 14001 EnvironmentalManagement System certi?cation
Total number of OPPLE Lighting's full-timeemployee trainings is more than
covering tens of thousands of employees.
70 %
of registered suppliers hold ISO 9001 certi?cation
Connected
million+ smart streetlights & multi-functional poles
Lighting ?xture donations for classrooms and dormitories in schools inGuizhou and Yunnan provinces bene?ted
students
%signing rate
suppliers signed Anti-Corruption Code
suppliers adoptedSustainable Procurement Charter
Total workforce5,761
Female employee ratio
37.7
%
Employee Rights Protection
Supplier Management & Optimization
Green Cities
Social Responsibility
Responsible Procurement
Employee Growth Support
Satisfaction score
4.47
Vs. 2023+0.12
Implemented
improvement initiatives
Employee Care & Communication
companies and subsidiaries certi?ed to ISO 45001Occupational Health & Safety Standard.
Employee Health & Safety
Privacy & Security Protection
No incidentsof customer privacy breaches,data leaks, or cybersecurity violations
Subsidiary Shanghai Qianlong EnergyConservation Technology Co., Ltd. obtainedISO/IEC 27001:2022 (Information Security) andISO/IEC 20000-1:2018 (IT Service Management)certi?cationsConducted cybersecurity awareness training for
3,269
employees
Message from the CEO
/ 10 // 11 /
2024 Environmental, Social and Governance (ESG) Report
Steady Progress,Building GovernanceExcellence
Response to SDGs
OPPLE Lighting recognize that a robust governance framework is the foundation forsustainable growth. Adhering to responsible business practices, we strictly complywith regulatory requirements and integrate sustainability into every aspect of ouroperations. Committed to safeguarding stakeholder interests, we actively foster aculture of integrity and transparency to drive shared progress and prosperity. Byre?ning our governance structure, strengthening responsible marketing, and ensuringdata privacy security, we deeply embed ESG principles into our business development,providing a solid foundation for long-term, stable growth.
Optimizing ESG GovernanceEnhanced Responsible GovernanceUpholding Business EthicsResponsible Marketing PracticesPrivacy & Security Protection
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social Responsibility2024 Environmental, Social and Governance (ESG) Report
Steady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
ESG GovernanceStructure
OPPLE Lighting has implemented a three-tier ESG governance framework supervised bythe Board of directors, with the Strategy & ESG Committee as the decision-making core,and ESG Working Group responsible for operational execution, ensuring coordinatedimplementation of ESG initiatives. The Board of Directors serves as the highest governingbody for ESG matters, guaranteeing corporate decisions and actions adhere to thehighest standards. Meanwhile, the Chairman of the Board concurrently chairs theStrategy & ESG Committee to provide leadership in ESG strategy development andexecution, securing e?ective formulation and implementation of ESG objectives.
To ensure e?ective implementation of ESG management strategies, we hold regular meetings of the Strategy & ESG Committee.These meetings serve to review newly formulated ESG policies, assess material issues, monitor progress toward environmentaltargets, and evaluate other critical ESG matters.
OptimizingESGGovernance
OPPLE Lighting continuously enhances our governance framework by developingan ESG management system tailored to industry trends and our operationalrealities. Through clear role delineation and active stakeholder engagement, weproactively identify ESG risks and opportunities while deepening sustainablepractices to elevate overall governance standards.
TheAchievements
of ESGGovernance
Proactively participated in EcoVadis ratings and
CDP questionnaire disclosuresAwarded grade by Sino-Securities Index ESG Rating
"A"
Awardedgrade by Straight?ush ESG Rating
"AA"
During the reporting period, OPPLE lighting maintainedclose engagement with stakeholders through diversifiedcommunication channels, conducting over 100 roadshows,3 shareholders' meetings, and 3 collective earnings briefings.We participated in the Shanghai Main Board Smart HomeAppliances Collective Earnings Presentation, facilitating in-depthexchanges with investors, analysts, and media representativeson smart transformation, green development, and high-qualitygrowth through dual online-offline platforms. In addition, theCompany implements a stable dividend policy, shares the resultsof development with shareholders, continues to reinforce trustand collaboration with shareholders, laying a solid foundationfor sustainable development.
Adhering to principles of openness and transparency, we strictlycomplied with theCompany Law of the People's Republic ofChina,Securities Law of the People's Republic of China, andthe Rules Governing the Listing of Stocks on Shanghai StockExchange, instituting ourInformation Disclosure ManagementSystemandInformation Disclosure Suspension and ExemptionManagement Systemto standardize reporting processes andenhance governance compliance.We disclosed 4 periodic reports and 62 interim announcementsduring the reporting period, and earned "Best Capital MarketCommunication Award".
StakeholderEngagement
Dedicated to fostering comprehensive engagement channels, OPPLE lighting maintainsactive dialogue with key stakeholders including government agencies, regulatorybodies, shareholders, customers, employees, and media representatives. Throughdiversified communication approaches, we promptly address stakeholder concernsand facilitate mutual development between the Company and our stakeholders.
Stakeholders Key ConcernsEngagement MethodsGovernment/Regulators
Anti-corruption
Corporate Governance
Information Disclosure
Climate ChangeResponse
Energy Usage
Regular Communicationand Report
Company Survey
Information Disclosure
Policy ImplementationInvestors/Shareholders
Business Performance
Information Disclosure
CorporateGovernance
Annual General Meetingof Shareholders
Company Research,Roadshows
Regular Reports &Earnings Brie?ngs
Investor Hotline/Email
SSE Interactive
Platform
Suppliers
Anti-unfair Competition
Supply Chain& ResponsibleProcurement
Strategic Partnerships
Regular Exchanges
Participate in Industry
ActivitiesCustomers
Compliance withBusiness Ethics
Product Quality & Safety
Customer Service
InformationSecurity
SustainableConsumption
Feedback Collection
Complaint Handling
Conduct Customer
Satisfaction Surveys
Community/Public
Philanthropy
Emissions & HazardousMaterials Management
Biodiversity
Conduct Public WelfareActivities
Social Media
Site VisitsEmployees
Labor Management
Diversity, Equality andInclusiveness
CareerDevelopment
OccupationalHealth & Safety
Hold the Congress ofWorkers and Sta?
Training Programs
Solicit Opinions
and Feedback from
Employees
Media/NGOs
Emissions andHazardous MaterialsManagement
Biodiversity
Circular Economy
Water Resources
Press Conferences
Media Interviews
Social Media
Engagement
OPPLE Lighting ESG Governance Framework
Formulate, review, and approve ESG policies, strategies, and targets Oversee and evaluate corporate ESG policies, management, performance and goal attainment
Composed of senior executives, functional department representatives, and
subsidiary personnelProvide operational support to the Strategy & ESG Committee. Its primary
responsibilities include implementing ESG initiatives and facilitating the
Committee's work
Authorized by the Board of Directors, and reporting to the Board of directors regularly
Identify sustainability risks/opportunities, conducts ESG research, analysis, and riskassessments, guides and monitors ESG policies/goals implementation
Review ESG reports for Board submission
TheBoard ofDirectors
The Strategy& ESGCommittee
The ESGWorking Group
/ 12 // 13 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social Responsibility
2024 Environmental, Social and Governance (ESG) Report
Steady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
MaterialityAnalysis
OPPLE Lighting proactively identi?es material issues related to corporate operationsto assess our environmental, social, and economic impacts, while evaluating thesignificance to stakeholders. By analyzing domestic and international regulatorypolicies and industry trends, benchmarking against global standards including theGRIStandardsissued by the Global Reporting Initiative (GRI), theSustainability AccountingStandardsissued by SASB, and referencing theGuidelines No. 14 of Shanghai StockExchange for Self-Regulation of Listed Companies—Sustainability Report (Trial), wehave identified 22 material ESG-related issues. These issues not only guide our ESGmanagement practices but also enhance our information disclosure standards.In compliance with theGuidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial), we are progressivelyimplementing dual materiality assessment. This approach evaluates issues through twodimensions: impact materiality and financial materiality. Impact materiality examinese?ects on the economy, society, and environment, while ?nancial materiality assessesinfluence on business operations and financial performance. This methodology willoptimize resource allocation, strengthen the integration of ESG strategy with corebusiness, improve disclosure transparency, build investor confidence, and ultimatelysupport long-term sustainable development.
ESG Materiality Matrix of OPPLE Lighting in 2024
CorporateGovernance
In strict compliance withthe Company Law of the People's Republic of China,SecuritiesLaw of the People's Republic of China,Code of Corporate Governance for ListedCompanies, andthe Rules Governing the Listing of Stocks on Shanghai Stock Exchange,we consistently re?ne internal governance systems. This structured approach enablesall organizational levels to fulfill their designated responsibilities collaboratively,safeguarding our stable operations.
OPPLE Lighting Governance Structure
EnhancingResponsibleGovernance
OPPLE Lighting continuously optimizes the corporate governance structurethrough a diversified Board of Directors and clearly delineated managementframework, ensuring operational transparency and effectiveness. We furtherstrengthen risk management and internal audit mechanisms to proactivelyidentify, assess, and mitigate governance risks, thereby laying a solid foundationfor sustainable long-term development.
The General Meeting of
ShareholdersThe Supervisory
CommitteeThe O?ce of theSupervisory CommitteeThe Strategy & ESG CommitteeThe Remuneration and Appraisal Committee
The Nomination CommitteeThe Audit Committee
The General ManagerThe Board of Directors
The Senior Management
The O?ce of theBoard of Directors
The General
Manager's O?ce
WaterresourcesLabor management
Emission and hazardousmaterials managementAddressing climate change
Energy useCustomer servicesResponsible supplychain and procurementProduct quality and safety
Anti-corruptionEmployeedevelopmentInformation securityPublic welfare and charity
Anti-unfair competitionSustainable consumptionInformation disclosureIntellectual property protectionDiversity, equity, and inclusion
Biodiversity
Circular economy
Corporate governanceRaw materials and packaging
Importance to OPPLE Lighting
Importance to stakeholder
Occupational health and safety
Environmental issueSocial issueGovernance issue
/ 14 // 15 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social Responsibility
2024 Environmental, Social and Governance (ESG) Report
Steady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Regarding the Supervisory Board, we fully exercise our supervisory authority incompliance with internal regulations including theArticles of AssociationandRulesof Procedure for Supervisory Committee. The Supervisory Committee oversees ourfinancial status and monitors the legality and compliance of directors and seniormanagement in performing their duties, safeguarding the legitimate rights andinterests of the Company and our shareholders. As of the end of the reporting period,our Supervisory Committee consists of three supervisors, including one employeerepresentative supervisor.
The Supervisory Committee
OPPLE Lighting fully recognizes that board diversity is essential for enhancing corporategovernance efficiency and decision-making quality. In accordance with theRules ofProcedure for Board Meetings, we have established a Board composed of memberswith diverse genders, ages, educational backgrounds and professional expertise toensure comprehensive consideration of multiple perspectives and experiences indecision-making processes. Adhering to the merit-based principle, we consider multipledimensions including candidates' industry experience, educational background,professional skills and career history when selecting directors, facilitating the exchangeand integration of different viewpoints to maximize board governance efficiency.We have three independent directors, all seasoned professionals with expertise inaccounting, management and business operations.The Board has established four specialized committees: the Strategy & ESG Committee,the Audit Committee, the Remuneration and Appraisal Committee , and NominationCommittee, each with clearly de?ned responsibilities to ensure e?ective managementand oversight. As part of the board's efforts to promote governance innovation, weupgraded the former Strategy Committee to the Strategy & ESG Committee to strengthenresearch, analysis and risk assessment of ESG-related matters, thereby enhancing ourcompetitiveness and sustainable development capabilities. Except for the Strategy& ESG Committee, all other committees are chaired by independent directors, withindependent directors constituting no less than half of the membership in the Audit, theRemuneration and Appraisal, and the Nomination Committee.During the reporting period, our board members actively participated in trainingprograms for directors, supervisors and senior executives of listed companies organizedby securities regulators and exchanges. Additionally, we provided capital marketcompliance training to board members and relevant internal departments as needed.
The Board of Directors
We strictly comply withthe Company Law of the People's Republic of Chinaandinternal regulations including theArticles of Associationand theRules of Procedureof the General Meeting of Shareholdersto properly convene and organize meetings.To ensure procedural legitimacy and transparency, we engage professional lawyersto witness proceedings, safeguarding shareholders' rights. Adhering to principles offairness and equity, we treat all shareholders equally, promptly address inquiries andproposals, and actively adopt reasonable suggestions. For related-party transactions,we rigorously implement recusal procedures to guarantee independent and impartialdecision-making.
The General Meeting of Shareholders
General Meetings of Shareholders
Meetings of the Board ofDirectors
Supervisory Committee meetings
Audit Committee meetings
Nomination Committee meetings
Remuneration and AppraisalCommittee meetings
Strategy & ESG Committee(formerly Strategy Committee)meetings
In 2024
Internal ControlManagement Mechanism
During the reporting period, we intensi?ed our focus on internal control and risk management to enhance operational stability andrisk resilience across the company. Regarding internal controls, we signi?cantly improved the e?ectiveness of risk identi?cation,recti?cation implementation, and authorization management by establishing early-warning indicators for key business processes,creating a closed-loop system for alert resolution tracking, and verifying execution approval authority designs.
Risk Management& Internal Control
OPPLE Lighting places paramount importance on risk management and internal control,having established a comprehensive system to e?ectively prevent and address variousoperational risks. We strictly comply with relevant regulations, including theBasic Normsof Internal Controland theCode of Corporate Governance for Listed Companies, andhave formulated theInternal Control and Evaluation System. This system standardizesevaluation procedures and reporting processes, enabling us to promptly identify internalcontrol deficiencies, uncover potential risks, and efficiently implement correctivemeasures, thereby continuously enhancing management e?ectiveness.We persistently optimize our internal control mechanisms to effectively mitigatepotential risks in risk management and internal control. Prior to and during businessoperations, we implement precise risk prediction and prevention measures to reinforceour ?rst line of defense against risks.
The Risk Control Departmentconducts in-depth analysisof potential risk points basedon operational proceduresprovided by businessunits, formulates targetedinternal control optimizationrecommendations, andassists in improving theinstitutional framework.
Each ?rst-tier department designates dedicated personnel or positionsresponsible for conducting daily inspections of internal control implementationwithin their respective departments, tracking and supervising the recti?cationof identi?ed control issues to ensure e?ective execution of control measures.
The Risk Control Departmentfocuses on critical domainssuch as procurement andmarketing to conduct systematicinternal control evaluationscovering both operationaland compliance indicators. Itproposes integrating internalcontrol rules into digital systemsand key business processes todrive deep convergence betweencontrol mechanisms andoperational work?ows withininformation systems.
Internal ControlRecommendations& SystemEnhancement
Internal ControlImplementation &MonitoringInternal ControlEvaluation & Digital
Integration in KeyAreas
We convened
/ 16 // 17 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social Responsibility2024 Environmental, Social and Governance (ESG) Report
Steady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Building on these e?orts, we advanced our risk management framework by completing the development and acceptance testing of acomprehensive risk control system. This system incorporates four core modules: risk database, risk assessment, risk early-warning, andrecti?cation tracking. Moving forward, we will further enhance system functionality by developing an internal control evaluation moduleto institutionalize regular self-assessments by business units and elevate our overall risk management capabilities.
We leverage our audit platform to comprehensively enhanceinternal control, compliance, and risk management whilefostering corporate culture development. The platform enablessystematic identification, measurement, analysis, and evaluationof operational risks, allowing us to implement e?ective mitigationand control measures that ensure business stability and regulatorycompliance.During the reporting period, the Audit Department successfullycompleted 95 audit projects, which included 30 comprehensivepost-project reviews of significant non-production procurementactivities. These audits encompassed 13 Tier-1 departments:
Overseas Regional Sales Center, Human Resources andAdministration Center, Supply Chain Center, Quality & ProcessIT Center, China Sales Center, Key Account Sales Center, LegalAffairs Center, E-Commerce Channel Department, CustomerService Center, Road Lighting Division, Government and EnterpriseBusiness Department, Brand Center, and Procurement Center. Theaudit coverage extended to 33.3% of Tier-2 departments, achievinga remarkable recti?cation completion rate of 97%.For specialized audits, we prioritized compliance operations andfraud prevention. We have conducted the targeted fraud auditsacross procurement, sales, and warehouse operations to reinforcecompliance and transparency throughout all business processes.
We developed self-serviceanalytical tools to establishfraud warning indicators forprocurement, sales and otherkey business processes
We implemented a risk controlsystem featuring tricolor (high/medium/low) risk alerts.Integrated with OA work?ows toautomatically notify responsibledepartments and personnel ofalerts and mandate correctiveaction feedback, forming acomplete monitoring-resolutionloop
We conducted comprehensiveaudits of approval authorityframeworks to identify and rectifydesign ?aws and implementationgaps
Early-Warning Indicatorsfor Critical Operations
Closed-Loop AlertResolution Tracking
Authorization DesignVeri?cation & Execution Review
Key Internal Control Initiatives
Internal Audit
UpholdingBusinessEthics
Anti-Bribery &Anti-Corruption
OPPLE Lighting remain steadfast in ethical business practices, resolutely opposingall forms of corruption and unfair competition. We strictly comply with lawsand regulations and are dedicated to building a fair and transparent businessenvironment that fosters sustainable development for both the Company and ourpartners.
OPPLE Lighting rigorously adhere to regulations including theInterim Provisions onProhibiting Commercial Briberyand have established comprehensive internal policiessuch asthe Regulations on the Declaration of Participation in Company-relatedBusiness Transactions by Current and Former Employees and Their Related Parties,
Fraud Management Procedures, and theCompliance Guidelines for Anti-CommercialBriberyto create transparent and equitable business practices. TheWhistleblowingInformation Management Procedureseffectively prevent misconduct by specifyingreporting channels, investigation processes, and disciplinary actions for violations,while theCompliance Guidelines for Anti-Commercial Briberyexplicitly prohibitimproper inducements to ensure operational legality.To strengthen anti-corruption awareness, we have incorporated behavioral standardsand disciplinary measures in theEmployee Handbookand require all sta? to signLetterof Commitment to Integrity. We also mandate suppliers to signIntegrity Agreement,upholding equivalent ethical standards. Suppliers violating these agreements faceimmediate termination and blacklisting.On this basis, we have established a sound multi-tiered management structure fordealing with fraud. Through clear division of responsibilities, we ensure all fraudulentactivities are addressed promptly and e?ectively, thereby strengthening the company'sculture of integrity.
/ 18 // 19 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social Responsibility2024 Environmental, Social and Governance (ESG) Report
Steady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
During the reporting period, we implemented multiple measures to combat corruption and fraud. We migrated our fraud risk mappingto an online risk control system, enabling real-time monitoring and feedback of anomalies. Among the system's 10 operationalindicators, two are speci?cally designed for fraud detection, identifying relationships between employees and external entities toensure management transparency and compliance. Additionally, we conducted extensive anti-fraud training programs to foster aculture of integrity.We extended anti-corruption requirements to our supply chain, conducting comprehensive due diligence on suppliers acrossprocurement and sales functions. This included scrutinizing raw material and IT cloud service purchases, while addressing sales-sideviolations such as fraudulent project bidding by distributors, counterfeit product sales, and employee con?icts of interest throughunauthorized investments. These e?orts signi?cantly enhanced the integrity of supply chain.
Management Structure for Handling Fraudulent Behaviors
The Ethics & Compliance Center
The HR & Administration Center
The Legal DepartmentThe Financial Department
Business Departments
The primary responsibility for anti-fraud work, conducting investigations intomisconduct including embezzlement, fund misappropriation, and bribery solicitation/acceptance, issuing fraud investigation results and disciplinary recommendationsReview and execute employee disciplinary actions while promoting corporate integrityculture developmentProvide legal counsel on fraud case resolutions and represents the company in judicialproceedingsSupport investigations by freezing relevant payments, suspending shipments, andproviding required ?nancial documentationOperate with department heads as primary anti-fraud accountable persons, whereevery employee shares responsibility for fraud prevention, control, and supervision
Anti-Fraud Training ProgramCase
In 2024, OPPLE Lighting organized 14 anti-fraud training sessions (both online and in-person) covering 100% of employees.The curriculum included corporate compliance redlines, case studies of fraud schemes promotion of our Sunshine OPPLEintegrity culture, etc. Through these initiatives, we elevated organizational awareness of ethical conduct and strengthened ourcompliance culture.
Full- Process of Whistleblowing Information Handling
Whistleblowing Channels
Whistleblowing & Whistleblower Protection
OPPLE Lighting have established a comprehensive whistleblowing mechanism, o?ering diversi?ed reporting channels for employees,clients, and partners. OurWhistleblowing Information Management Proceduresclearly de?ne the complete case-handling work?owfrom case review and investigation to follow-up and feedback.We strictly adhere to con?dentiality and non-retaliation principles, safeguarding whistleblowers' legitimate rights through rigorousinformation protection measures. All personnel involved in case handling must comply with confidentiality protocols to ensurewhistleblowers remain una?ected and investigations proceed e?ectively. The dedicated reporting email is accessible only to the headand the direct superiors of Supervision Department, guaranteeing third-party isolation. For additional information, whistleblowerscommunicate exclusively with the Supervision Department head through a single-point contact channel to further protect theconfidentiality of the information. If whistleblowers suffer retaliation, they can report directly to the Ethics & Compliance Centerthrough designated channels, triggering immediate investigation and severe disciplinary action.
Anti-UnfairCompetition
We steadfastly uphold fair competition principles. In compliance withAnti-UnfairCompetition Law of the People's Republic of China,Anti-Money Laundering Law ofthe People's Republic of China, andAnti-Monopoly Law of the People's Republic ofChina, we have established theCompliance Guidelines for Anti-Commercial Briberytoensure lawful business operations. During the reporting period, we implemented robustmeasures to investigate and rectify unfair competition practices in key regions, e?ectivelysafeguarding market fairness while protecting the legitimate rights of businessesand consumers. These actions demonstrate our zero-tolerance stance against unfaircompetition.We further reinforced compliance through specialized training programs to enhanceemployee awareness and ensure adherence to fair competition principles.
The whistleblowing channels undergo regular inspections to collectreported information. Speci?cally designated personnel authorized by thePresident have access to review the contents of these channels and maydirectly report to the PresidentUpon receiving a report, an initial assessment is conducted to determinewhether the reported matter falls within the scope of investigable issuesas defined by company policies. Matters deemed irrelevant are promptlytransferred to the appropriate department for handlingDuring audit investigations, auditors analyze materials provided or collectedfrom whistleblowers and relevant parties to identify leads and gatherevidence, thereby verifying the authenticity of reported issuesA designated information registrar communicates investigation results to thewhistleblower and records the outcomes in the whistleblowing registrationformAll reported information is archived, with periodic summarization and analysisconducted. Based on analytical ?ndings, improvement recommendations areprovided to relevant departments to enhance operational practices
President's E-Mailjubao@opple.com; fraudrisk@163.comWechat
OPPLE-ECC
3037424194
Hotline
021-38550000-6814Whistleblowers may visit the Ethics &Compliance Center o?ce at the above addressfor verbal or physical submission of materials
Mailing Address
OPPLE Lighting Audit Department, Building V2,1799 Wuzhong Road, Minhang District, Shanghai(Postal Code: 201103)
/ 20 // 21 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social Responsibility2024 Environmental, Social and Governance (ESG) Report
Steady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
To further strengthen responsible marketing practices, we have implemented diversi?ed training programs to enhance awarenessamong both employees and distribution partners. During the reporting period, OPPLE Lighting reported no incidents of penalties,sanctions or warnings related to violations of product and service labeling or information regulations.
ResponsibleMarketingPractices
Product Compliance Communication
OPPLE Lighting strictly observeLaw of the People's Republic of China on theProtection of Consumer Rights and InterestsandAdvertisement Law of thePeople's Republic of Chinato guarantee truthful and transparent marketing. OurChannel Customer Access and Evaluation Standardsregulate distributor conduct,supplemented byIntegrity Agreementto mitigate risks. Additional policies like the
Management Measures for Circulation Channel Business BehaviorsandManagementMeasures for Business Behaviors of Sales Centers in Chinaestablish detailed sales sta?evaluation and disciplinary criteria, embedding responsible marketing throughoutoperations. Through dual focus on distributor management and product & serviceoversight, we ensure full-chain compliance from partners to consumers, ful?lling ourcommitments to all stakeholders and social responsibility.
We employ multiple communication channels to ensure customers fully understand potential health and safety considerations related toproduct packaging and usage, enabling informed purchasing decisions and safe product use.Provide customers with product presentation plans, installation and usage operation guidelines, and product user manuals, and mentionrelevant information about product safety through the WeChat mini-program platformInform users of the safety regulations and warning instructions of related products through the paper manual in the packaging box or theelectronic product manual on the Opple Lighting WeChat mini-program platform, and remind users to cut o? the power supply in advancebefore installation, and make safety warning labels to prevent electric shockDisclose complete after-sales policies, product speci?cations, warranty commitments, and technical support resources including commondisassembly methods, troubleshooting guides and frequently asked questions, etc. on the o?cial website
Product Safety and Usage Guidelines
Responsible Marketing Training
Advertising Marketing and PromotionalCompliance TrainingCaseCase
In 2024, OPPLE Lighting conducted 57 specialized training sessionsfocused on responsible marketing, comprising 55 sessions fordistribution partners, one intensive workshop for internal after-sales teams and authorized service providers, and one professionalexchange for metro industry specialists. The training curriculumcomprehensively covered product knowledge, fault diagnosis, repairtechniques, service standards, engineer certification requirements,and practical installation/commissioning procedures. Theseinitiatives achieved cumulative participation exceeding 3,100 trainees,signi?cantly elevating service capabilities and compliance awarenessacross our entire network.
In July 2024, the Legal Affairs Center of OPPLE Lighting conductedspecialized training for employees in key departments and criticalpositions, including the Product Marketing Department, BrandDepartment, Customer Service Center, and China Sales Division.This dedicated training on advertising marketing and promotionalcompliance provided detailed interpretations of important clausesand speci?c regulations under theAdvertisement Law of the People'sRepublic of Chinaand theLaw of the People's Republic of China forCountering Unfair Competitionto key business units. The sessionsignificantly enhanced the awareness and understanding of thesedepartments, fostering cross-functional collaboration to ensurethe legality and compliance of corporate advertising activities. Thisinitiative e?ectively mitigates operational risks for the Company.
DistributorComplianceManagement
OPPLE Lighting implements full lifecycle management of distributors to mitigateoperational risks. We have established and enforced comprehensive standards fordistributor onboarding, performance evaluation, and o?boarding, with clearly de?nedpartnership requirements and regular assessments to enhance operational quality.Through support policies such as annual, quarterly, and monthly rebates, along withcapability-building training programs, we empower distributors to achieve businesstargets and strengthen their professional competencies.In practice, since March 2024, the Audit Department has conducted random physicalinventory checks at distributor locations, while the Sales Management and QualityOperations Department of the China Sales Center organized two comprehensiveinventory audits across all regions. These initiatives signi?cantly improved the accuracyof inventory data, enabling better business analysis and pro?tability enhancement fordistributors. Additionally, through market compliance audits and special compliancereviews, we have comprehensively enhanced distributor management standards andmarket operational e?ciency.The Audit Department conductedannual random inspectionsacross all channels, covering storeexpansions, visual merchandising,and project bidding processes. TheSales Management Departmentcollaborated with various channelsand regions to implement correctiveactions, issuing relevant policiesand guidelines. Improvementsincluded optimizing rebate policies,introducing inventory accuracyand ST authenticity assessmentcriteria, and implementing tieredmanagement systems for clientsand personnel.
The Audit Department performedtargeted sampling audits on theformulation and execution ofregional promotional campaigns,procurement veri?cation, andrebate settlement processes withinthe China Sales Division. The SalesManagement Department of ChinaSales led the subsequent correctiveactions to address identi?ed issues.
Hold the Distributor Sales Kicko? Conference to Implement Responsible MarketingCaseIn January 2024, we successfully convened a sales kickoff conference themed "Breaking Through Ten Billion, AchievingExcellence" for our retail and new business channels, bringing together over 190 distributors. The conference focused oncommunicating our 2024 strategic deployment, covering key areas including retail strategy planning, product supply chainoptimization, and omni-channel marketing promotion strategies. This collective e?ort further advanced the implementation ofresponsible marketing practices, ensuring our products and services better meet market demands.
Market Audits
Special Audits
/ 22 // 23 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social Responsibility2024 Environmental, Social and Governance (ESG) Report
Steady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Privacy Protection
OPPLE Lighting rigorously complies with privacy protection protocols such as theResponse Process for Personal Information Subject Rights, theOPPLE Lighting AppletPrivacy Policy,OPPLE Lighting User Operation Platform Agreement,OPPLE LightingUser Tier and Bene?ts, andUser Interaction Management Regulations. These policiesclearly de?ne our obligations to protect customer privacy rights and standardize thefull lifecycle management of personal information, from collection, storage, and usageto processing, transfer, provision, disclosure, and deletion, ensuring robust protectionof customer privacy.
Privacy &SecurityProtection
OPPLE Lighting consistently prioritizes information security and privacy protectionas critical components of compliant operations, strictly adhering to nationalregulations including thePersonal Information Protection Law of the People'sRepublic of China,Cybersecurity Law of the People's Republic of China, andDataSecurity Law of the People's Republic of China. We continuously optimize andupdate our policies and systems concerning network security, data protection, andpersonal information management to ensure comprehensive enhancement ande?ective execution of information governance measures, thereby safeguarding therights of both customers and employees.
Customer Privacy Protection MeasuresOPPLE Lighting prioritizes information security and customer privacy protection in all third-party collaborations. We share userdata with third parties only when legally compliant, strictly adhering to relevant regulations and obtaining explicit user consentbeforehand. To ensure third parties meet required security standards, we implement external assessments, executeData ProcessingAgreementandData Processing Security Compliance and Con?dentiality Commitment, and conduct ongoing monitoring and auditsto prevent privacy breaches. These data protection requirements extend to all suppliers and partners through signedData ProcessingAgreement and related documents, guaranteeing their strict compliance with data security management protocols.During the reporting period, we updated theOPPLE Home Privacy Policy, specifically enhancing clauses regarding sharing userpersonal information with third-party service providers. The revisions clari?ed the scope, purposes, and security measures for datasharing, signi?cantly elevating user privacy protection standards. These implemented measures have e?ectively safeguarded userdata security and compliance, with no customer privacy infringement incidents occurring during the reporting period.
We strictly de?ne the purposes ofdata processing when collectinguser information, ensuring usageand retention are con?ned to thesespeci?ed objectives without exceedingthe scope of users' informed consent.
In compliance with theResponseProcess for Personal InformationSubject Rights, we empower userswith control over their data, includingthe right to opt-in, access, correct, andrequest deletion through user-friendlymechanisms.All consumer personal information isdisplayed in masking manner acrossbusiness systems, with plaintextdisplay prohibited unless necessary.
For personal data collected throughdistributor stores, our OPPLECloud restricts access exclusivelyto authorized store personneland corresponding distributors,with employees only permitted toview marked consumer personalinformation.
We maintain rigorous data security management, strictly following internal policiesincluding theRegulations on the Categorized and Prioritized Security Management ofR&D Data, the Regulations on the Categorized and Prioritized Management of SecurityEnvironment for R&D Information, andData Security Management Standards. Duringthe reporting period, we added management systems such asInformation SecurityIncident Management Standards,Data Breach Response Procedures,InformationSecurity Conduct Management Standards, etc. ensuring comprehensive coverage of alldata security management aspects.Regarding certifications, Shanghai Qianlong Energy Conservation Technology Co.,Ltd., a subsidiary of OPPLE Lighting, obtained ISO/IEC 27001:2022 Information SecurityManagement System and ISO/IEC 20000-1:2018 IT Service Management Systemcerti?cations. Additionally, our road lighting systems achieved Level 3 CybersecurityClassi?cation Protection certi?cation, covering 25% of operational locations, furtherconsolidating our information security practices.Building on this foundation, OPPLE Lighting have established a "1+5+2+3" informationsecurity governance framework through continuous improvements to our securitymanagement system, optimized organizational structure, enhanced businessinformation security infrastructure, and implemented security review mechanisms.This comprehensive system provides enterprise-wide information security assurance,ensuring all business operations proceed within a secure and compliant environment.
Data Security
"1+5+2+3"InformationSecurityGovernanceFramework
Uni?ed SecurityStrategy Blueprint
Based onMajor WorkOrientations
PromotingImplementation
throughModules
Focusing onKey Business
Areas
/ 24 // 25 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social Responsibility2024 Environmental, Social and Governance (ESG) Report
Steady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Throughout the reporting period, we implemented multifaceted measures focusing on four critical areas, preventing externalattacks, internal data leaks, regulatory violations, and privilege misuse. By proactively identifying and addressing potential risks, wecontinuously strengthened our security defenses. Regular information security audits were conducted to validate the e?ectivenessof cybersecurity measures. For newly launched systems, we performed comprehensive security testing and deployed WebApplication Firewalls (WAF) to e?ectively mitigate potential attacks. Additionally, we conducted periodic security scans on existinginfrastructure and applications, promptly addressing identified vulnerabilities. Leveraging threat intelligence and situationalawareness capabilities, we maintained real-time monitoring of network threats to ensure comprehensive protection of system andnetwork security.
Cybersecurity Protection Measures
Core Working Principles of the "1+5+2+3" Information Security Governance Framework
Information
SecurityGovernance
Intrusion DetectionThreat Intelligence & Situational Awareness
InformationSecurityManagement
SecurityTechnicalPlatform
SecurityOperationSystem
SecuritySupervision
SystemEstablish a three-tiered securityorganizationalstructure comprisingdecision-making,management, andexecution layers, withclearly de?ned rolesand responsibilities.Set security objectivesand policies whilefostering a robustsecurity culture
Develop amanagementframework alignedwith compliancemandates andbusiness securityneeds. Formulatestandardizedprocesses, securityguidelines, andawareness trainingmechanisms
De?ne technicalstandards forinformation security,deploy tailoredsolutions basedon operationalrequirements,and providecomprehensivetechnical support
Specify securityand compliancerequirements acrossall business scenarioswhile implementingsystematicoperational protocols
Conduct regularassessments ofsecurity risks, maturitylevels, compliancestatus, andperformance metricsacross business unitsper the informationsecurity managementsystem
Perform security vulnerability assessments and weakpassword detection across all systems regularly,conducting risk evaluations and implementingcorrective actions to prevent potential attacksDevelop detailed vulnerability remediation plans,with system owners accountable for trackingprogress
Implement comprehensive security operationsincluded operational monitoring, log auditing, andaccess control managementEnsure the implementation of security baselinesto address malware eradication, internal/externalnetwork penetration attempts, and AdvancedPersistent Threats (APTs)Support daily information security operations acrossdepartments by establishing a closed-loop incidenttracking mechanism
OPPLE Lighting have established a robust emergency response mechanism, with procedures led by the Information Security andData Compliance Management Office. For particularly severe and urgent incidents, escalation to the Information Security and DataCompliance Management Committee is required to ensure rapid and e?ective handling of cybersecurity events, minimizing potentialimpact.
We are dedicated to fostering a strong cybersecurity culture among employees through comprehensive training and drills. We mandateannual information security training and certi?cation for all sta? to enhance threat response capabilities. During the reporting period,in accordance with theSpeci?cation for Assurance of Application System Continuity, we developed annual cybersecurity drill protocolsand conducted both awareness training and emergency exercises, signi?cantly improving employees' risk management competencies.The reporting period concluded with no data breaches or cybersecurity incidents at OPPLE Lighting.
Emergency Response Process
Conduct Company-Wide Security Awareness Training to Foster a Culture of Security
Organize Emergency Drills to Enhance Incident Response Capabilities
Case
Case
Utilizing our cloud learning platform, we delivered information security training to 3,269 employees during the reportingperiod. The curriculum covered 14 critical areas including data breach risks, workstation security, pirated software risks,personal privacy protection, and cross-border data transmission risks. This systematic training and assessment programhas strengthened organizational security awareness and risk prevention capabilities, reinforcing our cybersecuritydefenses.
During the reporting period, our IT security team conducted simulated OA system outage drills replicating malware attackscenarios. These exercises evaluated team preparedness, cross-functional coordination, and threat containment capabilities,with identi?ed gaps prompting immediate corrective actions to enhance overall incident response e?ectiveness.
IncidentIdenti?cation
Incident Assessment
& Classi?cation
Incident Handling
Corrective ActionImplementationPost-IncidentReview & AnalysisDocumentation &
Archiving
/ 26 // 27 /
Message from the CEO
/ 28 // 29 /
2024 Environmental, Social and Governance (ESG) Report
Illuminating Lives,Leading a BrighterFutureResponse to SDGs
Light stands as both witness to human civilization and architect of better living. Guidedby our mission to "Create Value out of Light", we harness technological innovation toenhance product excellence, deliver heartfelt services, and transform every beam intoa catalyst for elevated living.
Stringent Product Quality ControlEmpowering Product InnovationEnhancing Customer ExperienceDeepening Commercial Partnerships
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
StringentProduct QualityControl
Quality forms the cornerstone of our enterprise. We pursue perfectionthrough standards surpassing industry norms, safeguarding consumers'lifestyle with meticulous craftsmanship while setting new benchmarks forlighting experiences.
Our rigorous quality commitment has earned multiple authoritative certi?cations, validating technical leadership.
Management SystemAs a responsible enterprise, we strictly adhere to legal requirements including theProduct Quality Law of the People's Republic ofChinaand theLaw of the People's Republic of China on Protection of Consumer Rights and Interests, placing product quality and safetymanagement at the core of our operations. We continuously enhance our quality management framework by updating key documentssuch as theMain Lighting Appearance Inspection Standard, theProduct Storage Cycle Management Regulations, theTechnical ReviewEvaluation Criteria, and theMarket Defective Product Return Management Rules, while introducing new standards including theAOI(Automated Optical Inspection) Detection Point Setup Speci?cations, theNew Fire Protection Battery Matching & Delivery Requirements,and theFaro Desk Lamp Inspection Standard to strengthen end-to-end quality control capabilities.In 2024, aligned with corporate strategy, we maintained our tripartite quality assurance model encompassing "systematic management,full product lifecycle oversight, and potential failure prevention". We established detailed key quality indicators, including quality failurecosts, product pass rates, batch rejection rates, and return rates, cascaded across all functional departments to achieve zero-defect targets.The upgraded quality dashboard system now provides real-time monitoring of customer complaints, internal quality, and supplier qualityperformance, delivering precise decision-making data for management. Furthermore, we comprehensively reviewed quality managementprocesses spanning product design, manufacturing, and after-sales service, conducting critical process evaluations and revisions to ensurealignment with evolving operational requirements, thereby systematically improving the e?ectiveness of quality governance.
Product Series Full LifecyclePotential Failure Prevention
System Management
Three-in-one Quality Assurance Model
Suzhou OPPLE Lighting
received the QualityLeadership Enterprise
Certi?cation
Wellsky Series Ceiling Lightwas awarded the industry's?rst Five-Star Healthy Light
Quality Certi?cation forluminaires and light sources
Bath Heater Quality
Certi?cationBG Certi?cation for
Bath Heaters
Bath Heater Innovation
Certi?cationPremium Product Certi?cation
for Maternal & Infant Bath
Heaters
China Compulsory Certi?cation.
China Quality Certi?cation Centre.
CONFORMITE EUROPEENNE.
End-to-End Quality Management Process
Conduct rigorous designreviews and veri?cationto ensure product qualityfrom the outset
Implementcomprehensive qualitymonitoring throughoutmanufacturing toguarantee compliancewith standards
Establish customerfeedback mechanismsto drive continuousproduct improvementDesignPhase
ProductionPhase
After-SalesPhase
Quality Process Optimization & Monitoring SystemIncoming Material InspectionStrengthen inspection of raw materialsand components to ensure compliancewith quality standardsCritical Process ControlImplement focused monitoringand strict quality controls for keymanufacturing processes
Mass Production Reliability TestingExpand reliability test items for mass-produced goods to enhance productdurability and stabilityNon-conforming Product ManagementRe?ne handling procedures to ensuretimely and e?ective disposition of non-conforming product
In-Process Quality ControlOptimize monitoring methods andtechniques to improve productionprocess precisionSampling InspectionImprove sampling methods andfrequency to increase inspectionaccuracy and e?ciencyDefect ManagementAssign dedicated personnel for closed-loop system management with regular analysis of quality data monitoring metrics
During the reporting period, we have obtained ISO 9001 Quality Management System certi?cation, with our product quality beingrecognized by authoritative domestic and international certi?cation bodies, including 3C
, CQC
, CE
, GS
, ENEC
, RoHS certi?cations,as well as Green Building Evaluation Certi?cation and China Green Product Certi?cation.Additionally, demonstrating outstanding quality management capabilities, we successfully achieved CMMI Capability Maturity Level 3certi?cation and IT Service Standard Level 3 certi?cation.
CMMI Capability Maturity Level 3 Certi?cateIT Service Standard Compliance Certi?cate (Level 3)
Germany Safety.
European Norms Electrical Certi?cation.
Restriction of Hazardous Substances./ 30 // 31 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Supplier and distributor quality management serves as a critical component of our end-to-end product quality control. On the supplyside, we enforce strict quality standards for component suppliers in accordance with internal regulations such as theSupplier QualityManual, requiring valid ISO 9001 certi?cation to ensure the quality of their components meets international standard compliance. Fornon-certified suppliers, we conduct rigorous quality system audits and mandate certification attainment. Regarding distribution, weestablished clear access/offboarding criteria and partnership requirements while implementing regular performance evaluations tocontinuously elevate distributor operational standards.During the reporting period, we experienced zero major health/safety incidents or compliance violations related to products and services.
Key PointMonitoring
We are dedicated to enhancing product quality control by strictly implementingmanufacturability reviews from the initial R&D stage to ensure the quality and reliability ofnew products. By utilizing the Quality Management System (QMS) and focusing on criticalquality control points, we achieve comprehensive quality management throughout theentire production process.
Quality Control Achievements
Implementation of CCD automatic detectionequipment reduced missing parts by
%compared to 2023Automated testing coverage for remotes/Wi-Fi/Bluetooth increased from10% to
Optimization of FPC welding for fanlights decreased defect rate from
%
%
to
0.4
%
Enhanced New Product Manufacturability Review Mechanism
To ensure smooth transition from trial production to mass production, we conduct thoroughmanufacturability reviews during product introduction, covering product design, processroutes, quality control, and supply chain reliability. This approach enables proactive riskmanagement.De?ned Quality Control Priorities and Standards
Through systematic analysis of historical quality data, we have systematically establishedand prominently displayed quality control standards on production lines to strengthen on-site quality management. This ensures continuous compliance with national standards andcustomer requirements.Establishment of QMS Process Monitoring Platform
The QMS enables end-to-end online monitoring and closed-loop management of incomingmaterials, production processes, and exception handling.
TrainingEmpowerment
To continuously enhance quality management level, we have conducted a series ofspecialized training programs, including "Quality Failure Experience Database" trainingfor new employees, "IPD (Integrated Product Development)" thematic training,"Closed-Loop Problem Resolution" practical training, "APQP (Advanced ProductQuality Planning)" thematic training, etc. These initiatives comprehensively strengthenemployees' quality awareness and professional competencies."Lighting the Future, Quality First" Quality Month CampaignCaseFrom September to October 2024, we organized the "Lighting the Future, Quality First" Quality Month campaign. The programcombined online self-paced learning with o?ine team collaboration to holistically elevate employees' quality awareness andtechnical skills.Quality Knowledge Dissemination: All employees participated in general quality education and product-speci?c training,
reinforcing the principle that quality is the foundation of corporate growth Job-Skill Enhancement: Role-speci?c training ensured employees mastered relevant product quality requirementsCross-Department Collaboration: Team-based offline activities improved interdepartmental communication and
coordination, fostering a synergy in quality managementInnovation Mechanism Development: An employee suggestion platform for quality improvements was established to
encourage innovative thinking and drive continuous improvement
/ 32 // 33 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
EmpoweringProductInnovation
In the era of intelligent connectivity, the rapid evolution of lighting technology isdriving unprecedented industry transformation. Guided by our vision of "Creatingthe World's Top Intelligent Lighting Brand", we are dedicated to technologicalinnovation, building a talented R&D team, and strengthening our intellectualproperty system. Through continuous breakthroughs, we are injecting newmomentum into the intelligent transformation of the lighting industry.
Our cutting-edge R&D capabilities and innovative achievements have earned widespreadindustry recognition, including numerous prestigious awards.
Innovation-Driven
From the warm glow of incandescent bulbs to the energy-e?cient revolution of LEDs,and now into the era of smart lighting, we have consistently remained at the forefront oflighting technology innovation. In 2024, we expanded our "Softwarization, Digitalizationand Intelligentization; Application of new structure, new model, new technology, newprocess and new material" R&D strategy, evolving from "Platformisation, Integrationand Large-scale Production" to "Softwarization, Digitalization and Intelligentization",enhancing every stage from R&D to sales and service. This approach strengthens ourproduct innovation and service quality, meeting diverse market demands for green andintelligent lighting solutions.
Hard Tech Excellence Award(recognizing R&D investment,patent grants, and industry
standard leadership)TMTPost 2023 EDGE AWARDSBest Smart Home Productin the Annual FrontierTechnology ProductsMultiple honors at the 7thIoT Lighting Conference &"Light of Wisdom Trophy"
Awards
GeekPark 2023"InnoForce 50" List(honoring China's top 50innovative companies)"Outstanding Contribution to Whole-Home Smart" and "HarmonyOS ConnectExcellence Partner" at the 2024 HuaweiHarmonyOS Connect Summit
Intelligentization: Building full-scenario smart lightingsystems for urban, residential, and commercial applications,o?ering users convenient and personalized lightingexperiences.
Softwarization: Leveraging our proprietary SDL SmartSpectrum Technology, we developed an in-house opticalengine and algorithm platform to enable multi-color LEDintelligent synthesis and ultra-wide-range color temperaturecontrol, delivering natural-light illumination experiences.Digitalization: Implementing end-to-end digital integrationacross all business processes, we enhance operationale?ciency through data ?ow optimization and systematicmanagement.
"Top 50 LED Industry IP Leaders" at
the 11th China LED Innovation Awards2024 German iF Design Award
Anchored in light's essence and guided by our "Softwarization, Digitalization and Intelligentization; Application of new structure,new model, new technology, new process and new material" strategy, we drive technological breakthroughs, delve into userneeds, and continuously create value through light.
New Structure
Driving industry transformation toward high-quality development andcontinuous product value enhancement
New Model
Pioneering customized service solutions and innovative commercialapproachesNew TechnologyAdvancing digital-intelligent innovations to empower smart manufacturing
New ProcessOptimizing production techniques for high e?ciency and energy savingsDeploying eco-friendly materials to achieve dual upgrades in product qualityand sustainabilityNew Material
/ 34 // 35 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
We remain dedicated to creating premium lighting experiences and healthy luminous environments for our customers. Throughcontinuous innovation in lighting technology, we comprehensively enhance our products' core competitiveness.
Technology
Powered by AI vision, this system captures real-time user images via cameras, analyzing posture with facial/bodyrecognition algorithms. Based on a deep learning posture database, it achieves highly accurate posture assessmentand provides timely reminders for correction through voice chips. This technology e?ectively prevents health issuessuch as myopia and hunchback caused by poor sitting posture.
Posture Alert Technology
SmartA uni?ed ?re-evacuation/lighting solution lowering total costs by 25%, deployed in Shanghai Metro and BeijingInfo SciTech Innovation Park.Polaris Smart Emergency Lighting System
ProfessionalOur dynamic store lighting platform revolutionizes retail experiences by utilizing animated window displays to boost foottra?c, catering to advertising and cultural tourism needs. This innovation will expand to transportation hubs, exhibitionvenues, and other diverse scenarios. The Bath Heater Hug Warmth Technology, featuring platformization design with anadvanced air?ow system and inverter technology, delivers rapid heating at 11℃ per minute while maintaining a uniformtemperature (≤5℃ variation within 5 minutes). Integrated into our Warm Ring and Compact Heater product lines, it hasearned mother-and-baby safety certi?cation.
Commercial-residential lighting optimization for enhancing user experience
Low-Carbon
Ultra-High-E?ciency Streetlight Modules: Achieves 230lm/W, 97.5% optical e?ciency, via RTF optimization, stray-
light control, and yellow-spot elimination, slashing energy use.Compact High-E?ciency Spotlights: Integrates various industry advanced technologies with our latest Guangyaoplatform to deliver 137lm/W, reducing fixture size by 46% while boosting brightness 50%+ at equal wattage, orcutting energy use > 50% at equal brightness, providing efficient and energy-saving solutions for commerciallighting sector.
Health
Simulating natural daylight with high-CRI SDL LEDs and smart spectrum control, this innovation, featured in ourScreen and Wellsky series products, enables customizable scenarios. It creates skylight-like illumination, meetingmodern demands for wellness-centric homes.SDL Sky Light Technology
Pioneering Industry Standards, Advancing Sky Light Simulation Technology
Upgraded SDL Smart Spectrum Technology, Delivering Nature-Identical Lighting
Case
Case
We partnered with COMAC Aircraft Design & Research Institute, Aviation Electrical Equipment Research Institute, FudanUniversity, and other institutions to co-establish theT-SIEATA 000004-2024 Sky Light Environment Simulation System (Part1: Design Speci?cations). This groundbreaking standard de?nes design, manufacturing, and classi?cation requirements forsky light simulation systems for the ?rst time, laying a foundation for elevating industry-wide technical capabilities.
Responding to growing demands for health and intelligence, we further advanced our human-centric lighting solutionswith the next-generation SDL Smart Spectrum Technology. By combining precision spectral engineering with innovativealgorithms, we developed an ultra-wide-range, natural-light-mimicking spectrum system that synchronizes indoor lightingwith natural daylight rhythms. This breakthrough provides users with more authentic, comfortable, and biologicallyattuned illumination.The SDL technology now spans ceiling lights, panel lights, downlights, linear fixtures, and more, serving residential,commercial, and artistic lighting applications. From dawn to dusk, it o?ers full-day circadian lighting solutions, enablingintelligent, scenario-based light adjustments that enhance both well-being and spatial ambience.
R&D Team
OPPLE Lighting's R&D team comprises
R&D personnel account for
9.13
%members hold postgraduate degreesspecialistsof total employees
As of the end of the reporting period
Talent is the wellspring of innovation and the core driver of corporate growth. AtOPPLE Lighting, we adhere to a "people-centric" philosophy, fostering a robust trainingframework and incentive system to continuously cultivate and attract top-tier R&Dprofessionals. This commitment fuels sustained technological innovation and solidi?edour talent foundation for scienti?c advancement.We are dedicated to advancing global R&D innovation by establishing a comprehensive,cross-regional research and development network. We have built four specializedR&D laboratories in Shanghai, Zhongshan, Suzhou and Europe, complemented by 15professional testing facilities and dedicated labs for EMC and light distribution analysis.Demonstrating our strong commitment to technological advancement, we invest overRMB 300 million annually in research and development to continuously enhance ourcore competitive advantages and innovation capabilities.
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Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Training Category New Employee TrainingProduct introduction,processes, talent development,intellectual property, softwaredevelopment, embeddedsoftware, software testing, andcase sharing
Participants
Participants
Professional Track
Mechanical, electrical, thermal,control, materials, processes,marketing, ?uid dynamics, projectmanagement, standardization, andother specialized ?eldsParticipants1,093
Participants
Management Track
Team management andleadership, focusing ondeveloping managers'leadership skills and teammotivation techniques
Participants
Participants
During the reporting period, we allocated
RMB
306.0238
millionto R&Dof total operating revenue
Accounting for
4.31
%
During the reporting period
In alignment with business growth and position requirements, we systematically implement training programs for new employees,professional tracks, and management tracks in product R&D. We foster a positive learning and training environment by implementing aninternal trainer incentive and increasing investment in external training resources.
Short-term Incentives
Long-term Incentives
Year-end Bonus (for all R&D personnel)Bonus allocation is determined based on the Company's overall performance, revenue contributions from various
product lines, and individual employee performance evaluations Process incentives (for members of product development programs)A performance-driven incentive system evaluates project delivery quality and timeliness, with bonus distribution aligned
to each member's actual contribution
Stock Incentives (for key positions, key technicians, and experts) Stock-based programs align the career growth of core management and key technicians with our long-term value creation
We continuously refine our R&D innovation incentive system to stimulate the creative vitality of our research teams. We haveimplemented a multidimensional incentive policy framework encompassing both short-term and long-term rewards, strategicallyallocating resources to critical positions and exceptional talents. This precisely calibrated incentive mechanism e?ectively mobilizesemployees' innovative potential and professional enthusiasm.
As a National Intellectual Property Advantage Enterprise, we have considered IP management as a core strategic focus, developing acomprehensive, multi-dimensional training system that covers key groups including R&D, supply chain, and new employees. Throughregular specialized training programs focused on practical skills and risk prevention, we provide robust support for the protection andcommercialization of technological innovations.
IntellectualProperty
While driving product innovation, we consistently prioritize intellectual propertyprotection. We strictly comply with Chinese laws including thePatent Law of thePeople's Republic of China, theTrademark Law of the People's Republic of China, andtheCopyright Law of the People's Republic of China, while implementing internalregulations like theIntellectual Property Training Management Proceduresto strengthenIP governance. These measures effectively mitigate infringement risks, safeguard ourinnovations and brand reputation, and contribute to maintaining healthy marketcompetition.Meanwhile, we have established a robust IP management framework featuring an IPBP(Intellectual Property Business Partner) structure within our Patent Department. Thisteam of specialized IP advisors provides end-to-end legal support, from patent filingsto litigation, for all business units. In 2024, we upgraded our IP management systemto enable systematic management of patents, trademarks, copyrights, and technicalsecrets, signi?cantly enhancing management quality and operational e?ciency.We uphold IP protection through ethical operations and fair competition, fosteringsustainable industry development. Comprehensive risk monitoring and screeningmechanisms are implemented across R&D, supply chain, and product launch processesto secure technological achievements. For any patent disputes or complaints, we initiateprompt and proper resolution to advance equitable industry competition.
Risk PreventionWe strictly implement IP risk assessments during product R&D, conducting comprehensive reviews of technical solutions
and product designs for each new productIn 2024, we completed 109 risk assessments (69 technical, 40 design-related), maintaining a veto system for high-risk
solutions through immediate avoidance or abandonmentWe mandate suppliers to submit risk assessment reports for our review and include IP infringement indemni?cation clauses
in procurement contracts
Risk Identi?cationAt every critical R&D stage, from project initiation and development to prototyping and pre-launch, we conduct continuous
risk screenings. These provide timely risk alerts and mitigation recommendations to ensure product complianceFor the 2024 Frankfurt Light+Building exhibition, we performed specialized screenings on all exhibit products, generating
40+ infringement analysis reports to prevent exhibition-related risks
Risk ResolutionA dedicated team handles patent litigation responses and e-commerce platform complaints, achieving a 98%+ success
rate in platform appeals to safeguard our legal rights
Intellectual Property Risk Management
/ 38 // 39 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Internal: Every touchpoint shall be visible,
manageable, and traceable.
Patent applications?lled
valid patents
4,532
New trademarkapplications submitted
Trademarks successfullyregistered
Patents granted
Artistic copyrightsregistered
During the reporting period
As of the end of thereporting period, we hold
Through tiered empowerment and precision training, we have deeply integrated IP education into our innovation value chain. Thisapproach accelerates the commercialization of patented technologies while building technical barriers, delivering sustained competitiveadvantages for the enterprise.
Specialized Training
In-Depth Software Patent TrainingCustomized for the Software Development Platform Department, this program details software patent eligibility,disclosure documentation standards, and technical point mining methodologies.
IP FundamentalsIn 2024, OPPLE Cloud Academy launched Intellectual PropertyBasics, systematically covering patent fundamentals and legalrisk prevention.
Patent Mining & Disclosure TrainingCombining online and o?ine formats, this program enhancesinnovation awareness and patent mining capabilities for newhires, key talent, and software development teams. Tailoredsessions address software-speci?c patent requirements andtechnical characteristics.
Supplier Training:
Patent Infringement Analysis & Design-Around StrategiesandPartial Design Protection & InnovationSharingFocused on IP protection across the supply chain, these sessionsproactively address patent risks while fostering innovationcapabilities.
EnhancingCustomerExperience
Exceptional service embodies the warmth of a brand. Guided by the philosophythat "Service Creates Value", we set industry service standards through professionalexpertise and genuine care. We deliver thoughtful service experiences to every user,transforming service into a meaningful bridge that conveys our brand values.
PremiumService
Through deep customer insights, we have established a phased service enhancementmechanism, defining key objectives to continuously refine our service systems andinnovate service models. This commitment elevates customer experiences and fostersmutual growth with our clients.We have developed a 5-year customer service strategy, transitioning from "experiencemanagement" to "value creation" to achieve "service leadership in the smart lightingindustry".
Customer Service Strategy 2024-2028
Strategic GoalsExternal: We commit to makingevery customer journey enjoyable.
Capability Goals2C (Business-to-Customer): Maintain after-sales
service leadership in lighting industry2H (Business-to-Home): Achieve No.1 service
experience with full user lifecycle management2B (Business-to-Business): Align service policies
with industry leaders; manage key projects & client
lifecycles
Smart scenario service coverage > 70%,
maintenance fee rate < 0.5%, 2H solution serviceNPS > 7SService satisfaction > 95%, resource integration
with 2B deliveryDevelop the capability for user experience insight
and analysis with a multi-dimensional "point-line-
plane" approachWe enhance "Online + O?ine" integrated services, and are advancing the integration of digital and physical services by collaborating withservice teams and industry chain partners, leveraging digital tools to elevate service e?ciency and deliver convenient, high-quality after-sales experiences for consumers.
WeChat Mini ProgramSocial Media Platforms
400 Hotline
Online Customer Service
Message board of theo?cial company websiteCustomerCommunicationChannels
/ 40 // 41 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
We continuously reinvent service models through digitalization, reshaping traditional after-sales support. From online smart schedulingto on-site technician visits, remote diagnostics to real-time service tracking, we have built a fully digital, end-to-end service system thatprovides customers with seamless one-stop solutions. Additionally, we conduct whole-home smart service training, equipping everyservice specialist with expertise to deliver intelligent living solutions.
Enhancing "Nationwide Warranty" Service Quality
Smart Service Talent Development
Case
Case
We at OPPLE Lighting have continuously upgraded our nationwidewarranty service network. By 2024, we established 40 servicecenters and 672 service outlets across 240 prefecture-level citiesin China. To deliver more thoughtful service, we conducted springtraining sessions for authorized service providers, optimizingservice policies and management through experience sharing,enabling more consumers to enjoy premium in-home after-salessupport.By the end of the reporting period, our professional service teamhad visited over 127,000 households, achieving a 96.9% satisfactionrate for on-site services. We maintain strict professional standardsto ensure every user receives reliable, high-quality service.
In 2024, we intensified smart home service training to build a specialized technical team. We launched a national smartengineer certi?cation program and conducted 25 regional tripartite training sessions, covering 1,900+ frontline sta? includingsmart engineers, designers, and store consultants. The curriculum focused on practical skills like TOH smart solutions, deviceinstallation/troubleshooting, using customized equipment and real-case simulations. Post-training assessments showed 97.8%satisfaction, with signi?cantly enhanced service capabilities to deliver superior smart home experiences.
2024 Spring Training for Authorized Service Providers
Our service center implements regular satisfaction surveys via online questionnaires and callbacks to deeply understand distributorand end-user needs, driving continuous service improvement.
Thanks to our outstanding customerservice management system, wewere honored with the CCCS "BestCustomer Contact Centre & ManagersBest Practice Awards" in 2024, alongwith the China Certi?cation (CQC) Five-Star After-Sales Service Certi?cation.
Certi?cation: Best Customer
Contact Centre in China
CQC Five-Star After-SalesService Certi?cation
DistributorsEnd Users
2024 Customer Satisfaction Survey Results
Survey covered 7 channels: retail, distribution, home,bundled solutions, commercial, projects, and street lighting,achieving > 25% coverage with 85.7% overall satisfaction.Dedicated teams track each channel's results and implementimprovement measures to ensure e?ective issue resolution.
Surveys focused on installation, maintenance services,and complaint resolution, sampling 15% of total serviceorders. Results showed installation satisfaction of 97.6%,maintenance satisfaction of 96.5%, and complaint resolutionof 96.8%. All metrics undergo closed-loop management withassigned personnel driving enhancements.
/ 42 // 43 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Product Recall
We at OPPLE Lighting prioritize product quality and consumer rights above all. By establishing a robust product recall managementsystem, we ensure swift response to batch quality risks: immediately convening expert reviews to scienti?cally assess recall scope,developing action plans, and promptly issuing consumer notifications upon cross-departmental approval. Our professional andefficient actions safeguard consumer interests. Furthermore, we conduct regular training programs, including internal auditorworkshops, to enhance sta? emergency response capabilities and ensure standardized, e?ective recall execution.In September 2024, we received market feedback regarding uneven light distribution in our Floating Cloud Series decorative lights.Following our recall protocol, we immediately organized a cross-functional review to evaluate scope, solutions, and market impact.After approval and countersignature by all unit heads, we activated the product replacement mechanism while advancing technicalimprovements. This efficient process resolved 334 cases within the month and completed product optimization by September,achieving closed-loop management.
Customer Complaint ResolutionWe prioritize customer safety by continuously re?ning internal policies such as theComplaint Management Process DocumentationandtheComplaint Handling Regulations. We have systematically enhanced our safety complaint risk assessment framework and upgradedresolution protocols to optimize complaint management procedures.We have established a comprehensive service management mechanism dedicated to improving user experience. Through dedicatedspecialist management mechanism, we ensure timely follow-up and effective resolution of service issues. Our end-to-end closed-loop process transforms dissatis?ed users into loyal brand advocates through targeted improvements. During the reporting period, wesuccessfully resolved 326 service cases, reinforcing our reputation as a responsible brand.Our multi-channel complaint response system accepts feedback via phone, o?cial website, Weibo, and WeChat. Regional specialistshandle routine issues promptly, while complex cases undergo joint analysis by complaint specialists and quality/technical teams todevelop solutions. For smart control-related complaints, we implemented weekly review meetings where specialists collaborate withR&D and quality departments to analyze cases and ensure closed-loop resolution.To enhance complaint handling efficiency, we have established an intelligent complaint response system that utilizes ticket alertfunctionality for issue categorization and implements tiered response protocols based on complaint severity: urgent cases (includingsafety-related complaints and critical project issues) receive initial solutions within 4 hours, while non-urgent cases obtain ?rst responseswithin 2 days, ensuring comprehensive service response quality assurance.
Complaint response rate
%External failure cost rate
0.17
%
2024 Key Service Metrics
Target
daysAchieved
days
Resolution cycle
Target
%Achieved
%
Resolution satisfaction
We at OPPLE Lighting actively pursue multidimensional strategic partnerships to advance industry-academia-research innovation anddigital transformation. In the digital commerce sector, we collaborate with industry leaders like JD.com, Huawei, and H World Groupto develop cutting-edge solutions including supply chain energy-efficient lighting retrofits, smart factory illumination systems, andintegrated "R&D-Production-Supply-Service" solutions for hotels. These initiatives signi?cantly enhance energy e?ciency and smartcapabilities in commercial settings, not only helping partners achieve energy savings but also demonstrating our expertise in commerciallighting.In R&D innovation, we have strengthened partnerships with leading institutions like Fudan University, combining academic researchstrengths with industrial applications. Through joint efforts in frontier technology research, talent development, and innovationincubation, we accelerate the commercialization of scientific achievements and drive lighting technology advancements. Thesecollaborations continuously enhance our product innovation and market competitiveness, delivering greater value to customers.
JD Logistics Supply Chain Energy-e?cient LightingRetro?t Annual Framework Project
Huawei Wuhu Data Center Smart Lighting Solution
DeepeningCommercialPartnerships
Distributors are pivotal to realizing our vision of becoming the global smartlighting leader. We continuously strengthen our support system throughoperational empowerment and capability-building initiatives to foster mutualgrowth.
OPPLE Lighting 2024 Distributor SummitCase
On January 10, 2024, we hosted the "2024 Retail& New Channel Sales Kickoff" at Zhengzhou LeMéridien, uniting 190+ distributors under thetheme "Breaking Ten Billion, Achieving Excellence".The summit unveiled our five-year China salesstrategy, channel optimization plans, and supplychain upgrades, featuring best practice sharingand omnichannel marketing discussions. Wesigned 2024 sales commitments and honored topperformers, energizing our distribution network.
OPPLE Lighting 2024 Distributor Summit
/ 44 // 45 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
OPPLE Lighting & Smartcom Strategic PartnershipCaseIn February 2024, OPPLE Lighting formed a strategic partnership withSmartcom (a Huawei company) to create an intelligent travel managementmodel. Leveraging Huawei's digital capabilities, we collaborate on smarttravel management, digital operation workflows, and global services,developing a customized one-stop digital travel solution to boostoperational e?ciency and accelerate digital and intelligent transformation.
OPPLE Lighting and Smartcom Signing Ceremony
OPPLE Lighting & Leyard Strategic PartnershipCaseOn August 7, 2024, we joined forces with LED display leader Leyard to deependigital transformation. Combining our lighting and display technologies,we conduct a comprehensive collaboration on digital synergy, resourceintegration, channel sharing, and global expansion. This partnership mergessmart control and scenario-based innovations to advance the integration ofdigital and physical economies, driving industry-wide digital and intelligentupgrades. As an innovative leader in the lighting industry, OPPLE Lightingwill leverage this strategic partnership as an opportunity to fully utilize itsadvantages in smart lighting, scenario applications, and channel networks,accelerating its digital transformation process and continuously injectinginnovative vitality into the industry's development.
OPPLE Lighting and Leyard Signing Ceremony
OPPLE Lighting & Fudan University Global Smart Lighting Joint LabCase
On December 29, 2024, OPPLE Lighting partnered with Fudan Universityto establish a university-enterprise joint laboratory dedicated to smartlighting, deepening industry-academia-research collaboration. The lab willharness the research capabilities of Fudan's Electric Light Source Instituteand OPPLE's market-driven expertise to focus on cutting-edge technologiesin smart, low-carbon, and healthy lighting. Building on our robust R&Dand industrial experience, we will leverage its robust R&D system andindustrialization advantages to accelerate the commercialization of researchoutcomes, bringing market-leading innovations that steer the industrytoward smarter, healthier, and more sustainable development.
Signing Ceremony for Fudan University - OPPLE
Lighting "Global Smart Lighting University-Enterprise Joint Laboratory"
2024 China Lighting Science and Technology ConferenceCase
China Lighting Science and Technology Conference, held on November19, 2024, in Nanchang, Jiangxi, marked the launch of the Encyclopediaof Chinese Lighting and honored organizations for their contributions topublic education and the industry. As a standing council member of theChina Illuminating Engineering Society, we actively participated in the event.During the "Lighting Technology Innovation" forum, we shared innovativeconcepts of SDL lighting experience from the perspectives of productdesign and practical application, demonstrating our SDL lighting experienceinnovations, showcasing our expertise in light environment researchand application while contributing its intellectual insights to advancingtechnological progress in the lighting industry.
OPPLE Lighting Sharing SDL Lighting Innovation
Concepts at the Conference
In the process of lighting industry standardization and intelligent transformation, we fully leverage our technical expertise tocollaborate with industry partners and deeply participate in the formulation of multiple professional and group standards. Throughthese concerted e?orts, we drive the re?nement of lighting industry standards and promote high-quality sector-wide developmentwith our specialized capabilities.
Quality grading and "Leader" evaluation requirements for
LED vertical reading/writing lampsQuality grading and "Leader" evaluation requirements for
bathroom electric heating appliances (bath heaters) Lighting ?xtures for fresh edible agricultural products Chinese o?ine voice-controlled indoor lighting ?xturesGreen manufacturing: Implementation guidelines for green
supply chain management in manufacturing
Carbon peak and neutrality guidelines for the lighting
industrySky light environment simulation systems – Part 1: Design
speci?cations Smart commercial LED control power supplies Residential full-decoration design standardsQuality grading speci?cations for furniture and building
materials Part 7: Indoor healthy lighting ?xtures10 Industry Standards Led by OPPLE Lighting in 2024
2024 3rd Yangtze River Delta Integrated Lighting Industry Eco-Development ForumCase
Held on March 28, 2024, in Shanghai, the 3rd Yangtze RiverDelta Integrated Lighting Industry Eco-Development Forumbrought together government o?cials, economists, technicalexperts, and industry leaders to explore pathways for thetransformation and upgrading of the Yangtze River Delta andChina's lighting industry under themes like new economy,new technology, and new consumption. Recognized as the"2024 Best Collaborative Enterprise" for our contributions andinnovative practices, we will continue to play its leading rolein the industry, driving high-quality development throughinnovation.
2024 Yangtze River Delta Lighting Eco-
Development Forum
OPPLE Lighting & Canlead Technology Strategic PartnershipCase
On April 18, 2024, OPPLE Lighting entered a strategiccollaboration with Canlead Technology, an innovator inintelligent control systems, to advance scenario-based smartlighting solutions under the shared principles of smart,technology, and green energy efficiency. By integratingboth companies' technical strengths, this partnershipenables intelligent lighting control and energy consumptionmanagement, optimizing both user comfort and energyefficiency. We will leverage our expertise in productinnovation, solution design, and channel resources to jointlypropel smart lighting and energy-saving technologicaladvancements with Canlead Technology, driving the industry'sdigital transformation and sustainable development.
OPPLE Lighting and Canlead Technology
Signing Ceremony
/ 46 // 47 /
Message from the CEO
/ 48 // 49 /
2024 Environmental, Social and Governance (ESG) Report
Embracing Green,Advancing Toward aLow-Carbon FutureResponse to SDGs
Green development has become a core issue in the new era of economic and socialprogress, and an essential path for enterprises to achieve sustainable growth.As a leading enterprise in the lighting industry, we adhere to the philosophy of"Empowering Green Development through Technology", embedding sustainabilitydeeply into our corporate strategy. We have established a comprehensive lifecyclegreen management system that addresses environmental compliance, climate changemitigation, and resource optimization. By consistently promoting energy conservationand emissions reduction, we take concrete actions to fulfill our corporate socialresponsibilities and lead the industry's transition toward a greener, low-carbon future.Environmental Compliance ManagementClimate Change RespondingResource Optimization & Utilization
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Pollutant TypeEmission ConcentrationRegulatory StandardCompliance StatusNMHCs2.5mg/m?60mg/m?CompliantLow-Concentration Particulate Matter1.0mg/m?20mg/m?Compliant
EnvironmentalComplianceManagement
WastewaterManagement
Non-occurrence
Air EmissionsManagement
We strictly comply with theEnvironmental Protection Law of thePeople's Republic of Chinaand theEnvironmental Impact AssessmentLaw of the People's Republic of China, among other applicableregulations. Internally, we have implemented management systemssuch as theEnvironmental Health and Safety (EHS) ManagementMeasuresand developed targeted policies for environmental complianceand pollution control.
We strictly comply with theWater Pollution Prevention and Control Law of the People'sRepublic of Chinaand other relevant regulations. Based on our operational needs, wehave established internal policies such as theWater Pollution Management Regulationsto guide our wastewater treatment practices. On top of industrial wastewater dischargemonitoring systems, we have developed a comprehensive wastewater monitoringframework that includes real-time tracking of key pollutants such as total phosphorus(TP) and ammonia nitrogen. This allows us to effectively control the total volume ofwastewater discharged from our facilities. In 2024, we enhanced water recycling andsigni?cantly reduced the total amount of wastewater discharged.During the reporting period, our total wastewater discharge amounted to 320 tons, with awastewater discharge intensity of 0.0005 tons per RMB 10,000 of output value.In accordance with theAir Pollution Prevention and Control Law of the People's Republicof Chinaand related regulations, we have implemented theAir Pollution ManagementRegulationsto strictly control air pollutant emissions. The primary air pollutantsgenerated from our production processes include non-methane hydrocarbons (NMHCs)and particulate matter. The following table summarizes our air emissions performance in2024.
A sound environmental management structure has been established, with both the Boardof Directors and senior management regularly reviewing our environmental strategiesand performance. Environmental KPIs are linked to executive performance evaluations,reinforcing accountability and fostering a strong environmental consciousness at alllevels of management.We actively promote both internal and external environmental audits and pursue ongoingcerti?cation of our environmental management system. Monthly internal audits cover allpark-wide pollution prevention facilities, rainwater and wastewater pipelines, dischargeoutlets, and surrounding areas. In addition, we undergo quarterly inspections by localenvironmental regulatory authorities to ensure full compliance with laws and standards.In 2024, we continued to operate under the ISO 14001 Environmental ManagementSystem and successfully passed the annual certi?cation audit. Suzhou OPPLE LightingCo., Ltd. was awarded the Jiangsu Province 2024 Provincial Green Factory Certi?cation.Our annual training program includes dedicated environmental training sessions,such as hazardous waste handling, exhaust emissions management, and emergencyresponse drills. These sessions focus on identifying risks associated with solid waste,proper treatment of exhaust and wastewater, and improving employees' awareness ofenvironmental compliance and incident response capabilities.During the reporting period, we invested a total of RMB 3.4382 million in environmentalprotection. No environmental incidents, pollutant exceedances, or violations werereported.
OPPLE Lighting invested inenvironmental protection with atotal ofRMB
3.4382
million
Environmental incidents, pollutantexceedances, or violations werereported
WasteManagement
We strictly adhere to theLaw of the People's Republic of China on the Preventionand Control of Environmental Pollution by Solid Waste and other related regulations.Internally, we have established the Solid Waste Management RegulationsandHazardousWaste Management Regulations, which govern the compliant collection, classi?cation,storage, transfer, and disposal of various types of waste.
We conduct annual training sessions on hazardous waste management, covering all relevant personnel involved in handling andoperations. The training focuses on topics such as types of hazardous waste, process management requirements and preventivemeasures, temporary storage protocols, and inbound/outbound inventory control. In 2024, our hazardous waste data was as follows:
Waste Management Unit2024Total Non-Hazardous Wastetons1,420.00Non-Hazardous Waste Intensitytons / RMB 10,000 output0.0020Total Hazardous Wastetons311.91Hazardous Waste Intensitytons / RMB 10,000 output0.0004
General Waste Management
Hazardous Waste Management
We actively promote the reduction, recycling, and harmless disposal of waste. Recyclable and reusable general waste is managed ina standardized manner to prevent pollution and resource waste. Additionally, we have sought quali?ed partners to recycle and reusecertain types of waste that were previously incinerated.Hazardous waste in our operations primarily originates from R&D, manufacturing, and warehousing processes. These include ninecategories: paints, adhesives, fluxes, solder, silicone/silicone grease, conformal coatings, inks, thinners, and antioxidant-reducingpowders. We ensure the safe handling of hazardous waste through rigorous controls over usage systems, storage management, andemergency response protocols. Suppliers transporting hazardous waste are required to use containerized vehicles to reduce the risk ofspillage and contamination during transit.
Usage ManagementStorage ManagementSafety & Emergency Management
We employ automated systems forprocesses involving hazardous materials,such as automated spraying, wavesoldering, and re?ow soldering;All inbound and outbound hazardouswaste is packaged in fully sealedcontainers. Leak-prone materials arehandled using anti-leak pallets to preventspillage during handling and transport.
Chemicals are categorized and storedaccording to their properties (e.g.,acids, bases, organic, inorganic) andhazard characteristics (e.g., ?ammable,explosive, toxic, corrosive). Dedicatedchemical storage warehouses areestablished at safe distances fromproduction and residential areas;A dedicated hazardous waste warehouseis constructed to Class A standards,equipped with anti-leak ?ooringand containment pools to preventenvironmental contamination.
All storage and usage areas forhazardous chemicals are equippedwith appropriate safety equipment,including ?re extinguishers, hydrants,absorbent pads, neutralizing agents,sand, protective gloves, safety goggles,and gas masks. Regular inspections andmaintenance ensure functionality of allsafety gear;Emergency drills, covering personnelevacuation, incident response, andrescue coordination, are conductedregularly to enhance emergencypreparedness.
Achieve a recycling and comprehensive utilization rate oftotal waste generated of
Over
%
WasteManagementGoal
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Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
ClimateChangeResponding
Addressing climate change is a central pillar of our environmental managementapproach and a key driver of long-term competitiveness. To support a smoothtransition toward low-carbon operations, we have progressively strengthenedour strategies for identifying, assessing, and responding to climate risks across allareas of production and business activities. During the reporting period, we activelyanalyzed climate-related risks and opportunities while implementing a series ofenergy-saving and emission-reduction measures. By enhancing energy e?ciencyand optimizing our energy structure, we e?ectively reduced carbon emissions andimproved our overall climate resilience.
Governance
Strategy
To strengthen ESG oversight, implementation, and development while elevatinggovernance standards and sustainable competitiveness, we have established a three-tiergovernance framework comprising the Board (supervision), Strategy & ESG Committeeleadership (chaired by the Chairman), and ESG Working Groups (execution). Thisstructure ensures comprehensive ESG integration across operations, driving systematicperformance improvement and long-term value creation.By aligning our business strategy with global trends and stakeholder expectations,and referencing the United Nations 2030 Sustainable Development Goals (SDGs), wehave positioned "Driving Green Growth Together" as one of our four core strategicpillars. Guided by this strategy, we proactively engage in climate risk and opportunityidenti?cation, along with practical energy-saving and emission-reduction initiatives.
Climate Change-related Risks
Risk TypeBusiness ImpactFinancial ImpactTime HorizonResponse MeasuresTransition Risk –Policy &RegulatoryChanges
As countries worldwide tightencarbon emission regulations,businesses may face stricterenvironmental laws and energye?ciency standards, requiringadjustments to productionprocesses and product designs.
Increased R&Dinvestments to developenergy-e?cient productsor upgrade productionequipment to reducecarbon emissions,leading to short-term costincreases.
Short toMedium-term(1-5 years)
Plan for low-carbon technologies,optimize production processes,develop products that meet higherenergy e?ciency standards, andactively participate in industrystandard development.Transition Risk –Shifts in MarketPreferences
Increased consumer demand foreco-friendly products. Failure totimely introduce green productsmay lead to a loss of marketshare.
Declining sales ofproducts lackinglow-carbon andenvironmentally friendlyfeatures, and the need forhigher marketing costs torebrand and reshape thecompany's image.
Medium-term(3-7 years)
Strengthen R&D for green products,launch low-carbon and recyclablelighting products, and enhancebrand image through ESG reportsand certi?cations.Physical Risk(Acute Risk) –Extreme WeatherEvents
Extreme weather (e.g., ?oods,typhoons) may disrupt the supplychain, damage productionfacilities, or cause logisticaldelays.
Increased operationalcosts for facility repairs,supply chain stability, anddealing with productiondelays.
Short to Long-term (Can occurat any time)
Strengthen supply chain resilienceassessments, build a diversi?edsupplier network, assess climaterisks for production facilities, andimplement protective measures.Physical Risk(Chronic Risk) –Long-Term ClimatePattern Changes
Global warming may increaseenergy costs (e.g., higher airconditioning usage) or impactemployee working conditions.
Increased operationalcosts and potentialdecrease in productione?ciency.
Long-term (5-10years or more)
Optimize energy management,adopt energy-saving equipment,improve factory ventilation andcooling systems, and reducedependency on climate change.Climate Change-related OpportunitiesOpportunity TypeBusiness ImpactFinancial ImpactTime HorizonResponse MeasureGreen ProductInnovation
Develop energy-saving lighting,smart lighting systems, andother green products to meet thegrowing demand for low-carbonsolutions.
Enhance market sharethrough di?erentiatedcompetition, drivingincreased revenue.
Short toMedium-term(1-5 years)
Increase R&D investment,collaborate with researchinstitutions to develop innovativetechnologies, and launch eco-friendly, green-certi?ed products.Energy E?ciencyImprovement
Optimize production processesand adopt renewable energy toreduce energy consumption andoperational costs.
Lower energy expenses,improving pro?t margins.
Medium-term(3-7 years)
Implement energy audits, investin energy-e?cient equipment,and explore renewable energyapplications such as solar and windpower.Carbon Marketand Green Finance
Participate in carbon tradingmarkets or secure green ?nancialsupport, providing new incomeand ?nancing channels for thebusiness.
Generate additionalrevenue through carboncredit trading, or reduce?nancing costs throughgreen bonds.
Medium to Long-term (5-10 years)
Set carbon reduction targets,participate in carbon trading pilotprograms, and explore green?nance tools.
Climate Change Risk & Opportunity Identi?cation
In 2024, we prioritized the identi?cation of climate-related risks. We adopted a multidimensional approach, including data analytics,expert consultations, and scenario analysis, to regularly conduct systematic risk assessments. This helped us evaluate the potentialimpacts of climate change on business operations, supply chain stability, employee safety, and infrastructure resilience. Based on theseinsights, we formulated concrete response measures to prevent or mitigate negative outcomes and capitalize on emerging opportunitieslinked to climate trends. These e?orts lay a solid foundation for long-term sustainable growth and ensure business continuity in the faceof climate-related challenges.
/ 52 // 53 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Energy Conservation and Emission Reduction Practices
We uphold energy conservation and emission reduction as core principles, integrating them into every aspect of our production andbusiness operations. Our commitment is to continuously improve energy utilization e?ciency, actively adopt and implement low-carbontechnologies, and fully drive the development of green factories. We not only advocate for low-carbon production methods but alsoensure the practical implementation of this philosophy, achieving genuine low-carbon production.In 2024, building on internal energy management systems such as the Electricity Management Regulations and the Green FactoryManagement Manual, we introduced the Energy Saving and Consumption Reduction Management Measures. These initiatives focuson process improvements and technological advancements in production, striving to create low-carbon campuses and ensure thesustainable operation of energy usage and infrastructure in all our production sites.
OPPLE Lighting Green Factory DevelopmentCase
OPPLE Lighting Suzhou Industrial Park
We continue to make significant strides in building greenfactories, increasing investments in environmental protection.Through scientific planning and strict management, wehave implemented comprehensive controls over energy use,water resources, gas emissions, and solid waste—leading toa substantial reduction in energy consumption. The SuzhouIndustrial Park of OPPLE Lighting stands as a benchmarkfor green, harmonious, and low-carbon development,fully integrating advanced technologies, environmentalprotection principles, and intelligent management systems.The Park has adopted various energy-saving technologiesand materials, including geothermal heat pumps, centralizedheating and cooling systems, water-based cooling storage,breathable glass curtain walls, smart shading systems,rainwater harvesting systems, green roofs, and 100% LEDenergy-saving lighting. These initiatives have collectivelycontributed to a significant reduction in the Park's overallenergy consumption, successfully achieving the goal of low-carbon manufacturing.
Energy-Saving Measures in Suzhou Industrial Park
GeothermalHeat Pumps
CentralizedHeatingand CoolingSystems
BreathableGlassCurtainWalls
SmartShadingSystems
100% LEDEnergy-SavingLightingGreenRoofsRainwaterHarvestingSystemsWater-basedCooling
We have implemented multi-dimensional energy-saving and consumption-reductionprojects, continuously strengthened energy management and reduced the overallenergy consumption of our products. In 2024, we achieved the goal of reducing thecomprehensive energy consumption of OPPLE products to below 121.77 kgce/10,000units. Furthermore, we received certification from the China Quality CertificationCenter, confirming that the comprehensive energy consumption of our products is
103.90 kgce/10,000 units. Additionally, our Wujiang Industrial Park passed the annual
audit certi?cation for the ISO 50001 Energy Management System.
Energy Management System Certi?cate
In addition to our own energy-saving and low-carbon operations, we also help our clients achieve green transformation through low-carbon product solutions, reducing carbon emissions across the entire value chain. In 2024, our dual-carbon business focused oncomprehensive energy management, building a one-stop low-carbon solution around "energy planning - energy-saving transformation- smart systems". Through three levels of energy-saving technologies, equipment-level, system-level, and scene-level (such as intelligentlighting dynamic dimming, air conditioning system optimization, carbon credit development, etc.), we help our clients achieve energy-saving goals. At the same time, by utilizing the energy performance contracting model, we have built a dynamic energy lifecyclemanagement system, promoting the green transformation of energy structure. This not only reduces energy consumption costs but alsoaccelerates the carbon neutrality process, helping industries build smart low-carbon demonstration benchmarks.Currently, our dual-carbon business has successfully completed several projects, including the comprehensive energy transformationproject in Heqing Town, Pudong New Area, the energy-saving renovation project for COSCO Shipping Building lighting, and thecollaboration project with Aier Group. We are also accelerating the replication and implementation of large-scale scenarios such asWuyue Plaza and Wanda Plaza, further expanding the application of low-carbon solutions.Through these projects, we will complete thefull ecological chain cycle of "energy auditing - energy-saving transformation - carbon credit asset development". This will continue toenhance our technological advantages in comprehensive energy management and help expand our market share in the dual-carbonsector.Impact, Risk &OpportunityManagement
To enhance resilience in addressing climate change and effectively manage climate-related risks and opportunities, we have improved our climate change risk managementsystem. We continue to strengthen our risk management capabilities to better anticipate,assess, and respond to the impacts of climate change, ensuring that we are well-preparedto navigate associated challenges and seize emerging opportunities.
Energy Transition
Solar PhotovoltaicInstallation
Energy E?ciencyImprovement
Energy-Saving AwarenessCampaignsIn 2024, we began replacingtraditional vehicles withnew energy electric vehicles,continuously expanding theinstallation of charging stationswithin the campus to meet theconvenient charging needs ofemployees' electric vehicles.We have also replaced dieselbuses with electric ones fortransportation within thecampus.
Solar photovoltaic panelshave been installed at theSuzhou factory, with continuedinstallations at locations suchas Shanghai and Zhongshan.This initiative has resulted ina total power generation of 12million kWh.
In 2024, several measures weretaken to save energy and reducecarbon emissions, including thetransformation of centrifugalcompressor units and mid-waveceramic infrared heating. Theseprojects and improvements areaimed at reducing electricityconsumption.
Internal campaigns wereperiodically held to raiseawareness about energy-saving measures, especiallyduring extreme seasonaltemperature ?uctuations suchas high summer heat, winterwarming, and variable seasonaltemperatures.
OPPLE Lighting Energy Saving and Consumption Reduction Projects
Climate Change Risk Management Process
Establishing a Climate Change Risk and Opportunity Disclosure List
Analysis and Con?rmation of Climate Change Risks and Opportunities
Assessment and Management of Climate Change Risks and Opportunities
Based on the TCFD framework, we analyze climate change risks and opportunities.
Relevant departments and risk owners are responsible for developing the climate change risk and opportunity disclosure list.
Based on industry-specific analysis and benefits related to the departments concerned, we identify and confirm climate change risks andopportunities, ensuring the appropriateness of these analyses.
We also look at factors such as the scienti?c principles, models, and weather scenarios to evaluate and identify speci?c climate change risks andopportunities.
We evaluate the likelihood of climate change risks and opportunities occurring, their impacts, and the e?ectiveness of management strategies.
Combining industry practices and management priorities, we analyze the potential impacts on business and design corresponding strategies toaddress these challenges./ 54 // 55 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Indicators &Targets
Guided by the "Carbon Peaking and Carbon Neutrality" strategy, we have establisheda greenhouse gas inventory project team. Based on theISO 14064-1:2018 Standardsfor the Quantification and Reporting of Greenhouse Gas Emissions and Removals atthe Organizational level, along with other applicable laws, regulations, and relatedstandards, we have carried out carbon inventory actions for OPPLE Lighting Co., Ltd.and Suzhou OPPLE Lighting Co., Ltd. These actions cover part of the scope 3 greenhousegas emissions. We have obtained the ISO 14064-1:2018 greenhouse gas verificationstatement certificate issued by SGS, an internationally recognized testing, inspection,and certi?cation organization. During the reporting period, the carbon emission data forOPPLE Lighting is as follows:
Carbon Emission ManagementUnit2024Total Scope 1 EmissionstCO
e4,645.93Scope 1 Emissions IntensitytCO
e per RMB10,000 output0.007Total Scope 2 EmissionstCO
e42,841.61Scope 2 Emissions IntensitytCO
e per RMB 10,000 output0.060Total Scope 3 Emissions
tCO
e11,487.74Scope 3 Emissions IntensitytCO
e per RMB 10,000 output0.016
In 2024, the target for energy consumption per RMB 10,000 output was successfully achieved, with the actual energy consumptionperformance meeting the set goal of being below 155.
Scope 3 data include category 3: indirect GHG emissions from imported energy.
Statistics by energy consumption cost.
2024 Target (Energy Consumptionper RMB 10,000 Output)
2024 Energy ConsumptionPerformance
153.68
2024 Actual Output (RMB 10,000)192,669
Target Achievement
%2024 Actual Energy Consumption (RMB 10,000)
2,691
Water ResourceManagement
We comply with theWater Law of the People's Republic of Chinaand other relatedregulations. During the reporting period, we implemented theWater ConservationManagement System for Equipment Servicesand theWater Conservation ManagementResponsibilities System. Additionally, the newly introducedEnergy Saving andConsumption Reduction Management Measuresincluded requirements for waterresource management, ensuring ongoing progress in the fine-tuning and efficientmanagement of water resources.We have set monthly and annual quota targets for departments with significant waterusage. In 2024, we successfully met these targets. No fines or penalties were incurredduring the reporting period for violations of water-related regulations.Green Irrigation System Renovation: We upgraded the automaticirrigation system in the park, switching the irrigation water fromtap water to recycled rainwater;Pre-process Over?ow of Hardware Powder Coating Line: Weassessed the water consumption in the process and reducedthe overflow of cleaning water, thereby decreasing theamount of tap water required for replenishment;
Water Resource Optimization and Utilization Projects
Cooling Tower Circulation System Retro?t: We upgraded the open-loop system to a closed-loop system and optimized the motor withvariable frequency control, reducing evaporation and unnecessarylosses.To further assess the utilization of water resources in the daily production management of the supply chain, we began by addressingwater resource risks and established a comprehensive water resource risk assessment process to fully identify and evaluate thepotential impacts of water resource issues on our business operations. In 2024, we invited a third-party professional organization toconduct a water balance assessment of the Company, and they provided a corresponding water balance test report.
Clearly plan and de?ne the water usage for each unit to ensure that the water resources used by each unit are monitoredSpecify the water requirements for each unit to understand the actual water consumption situationIdentify and forecast potential water resource issues, such as water shortages or water quality problemsAnalyze the potential negative impacts these issues might bring, evaluating their e?ects on production and the environmentBased on this foundation, check the existing emergency preparedness measures to ensure they are su?cient and cane?ectively mitigate risks
Water Resources Risk Assessment Process
ResourceOptimization& Utilization
We adhere to the principle of continuous improvement and are dedicated toenhancing resource management while reducing consumption. During thereporting period, we achieved efficient resource allocation by continuouslyoptimizing water resource management, packaging material systems, andmaterial management practices, further driving sustainable production across thecompany.
Water Usage Quota Target
m? per 10,000 unitsPer Capita Water Usage Target
L per person
/ 56 // 57 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
PackagingMaterial Usage& MaterialManagement
We place great emphasis on the sustainable use of packaging materials and materials,and are dedicated to reducing the environmental impact of packaging and materialsthrough process optimization, recycling, raw material management, and other measures.Moving forward, we will continue to explore more environmentally friendly solutions,striving to minimize resource consumption and contribute to protecting global resourcesand promoting the green transformation of the industry.Regarding material usage, we advocate for paperless operations in our offices andhave invested in corresponding support for process transformation, such as replacingo?ine paper-based expense veri?cations with electronic veri?cations. In production, wemaximize material utilization through lean production and circular economy models toreduce waste generation.Hollow Hot Melt ProcessCaseWe optimized the ?xing method for ceiling light source boards, which traditionally used six caps and six screws for ?xing,resulting in excessive materials and complex assembly. During the reporting period, engineers upgraded the hot melt BOSScolumn process to directly utilize the existing structure for hollow hot melting, eliminating the use of screws and caps.This simpli?ed the assembly process and reduced material consumption, showcasing our innovative results in optimizingmaterial use and improving production e?ciency.
Lamp Disc Light Source Board Pressure-Sensitive Adhesive-Free Fixing ProcessCase
We developed a new fast-drying, high-viscosity silicone that replaces the original dual ?xation process using ordinary siliconeand pressure-sensitive adhesive. The new process not only simpli?es the assembly but also reduces the types of adhesives andequipment required, lowering technical support and maintenance costs. This improvement further demonstrates our ongoingefforts in resource optimization and process innovation, providing effective solutions for reducing energy consumption andmaterial waste.
Use of Recycled Sheet MaterialCase
We actively explore the use of recycled sheet material, ensuring product quality while collecting waste material during the sheetprocessing stage, ?ltering out impurities, re-pelletizing, and adding the reprocessed material back into the sheet production.In 2024, the Wujiang factory's sheet workshop used 168.9 tons of MS recycled material and 85.8 tons of PMMA (polymethylmethacrylate) recycled material.
In 2024, the water resource usage of OPPLE Lighting is as follows:
Water ConsumptionUnit2024AmountTon324,429IntensityTon / RMB 10,000 output0.46
EcologicalProtection &Biodiversity
We have always regarded ecological protection and biodiversity as a key foundation forsustainable development. In our daily operations, we actively practice the concept ofgreen development, aiming to reduce our impact on the natural environment. At thesame time, we encourage employees, partners, and all sectors of society to focus onbiodiversity and foster a protective atmosphere involving all social sectors.In 2024, we carried out environmental impact assessments for new projects, whichwere approved and publicly disclosed online. For existing projects, we conduct regularchecks on pollution prevention equipment, covering external pollution preventionfacilities, stormwater and sewage pipelines, discharge outlets, and surroundingconditions, and cooperate with the ecological environment supervision departmentsfor quarterly inspections.
In terms of packaging materials, we prioritize recyclable and environmentally friendlymaterials, continuously optimizing packaging design to reduce excessive packaging andresource waste. The company has set a goal to reduce the packaging inventory units(SKU) by 30%, processing preferred materials into consolidated quantities to ensurematerial uniformity and scalability, which improves production e?ciency. We use paperpallets for the turnover of injection molded semi-?nished products, which can be reusedmore than 10 times, and currently the recyclable packaging materials used account forapproximately 84% of all packaging materials used by the Company.We also focus on the rational use of plastic packaging materials, such as EPE (expandablepolyethylene), EPS (expandable polystyrene), and PE (polyethylene) bags, with theexpected proportion controlled at 30%. This ensures that while product packagingrequirements are met, the environmental impact is minimized as much as possible.
%
Currently the recyclablepackaging materials used accountfor approximately
of all packaging materials used bythe Company
/ 58 // 59 /
Message from the CEO
/ 60 // 61 /
2024 Environmental, Social and Governance (ESG) Report
Talent Convergence,
Building a Ful?llingWorkplace TogetherResponse to SDGs
A high-caliber talent team is the key to keeping an enterprise's light burning bright forthe long term. We uphold a people-centric philosophy, creating a fair and equitabledevelopment platform, safeguarding employees' legitimate rights, and fostering avibrant, innovative team. We are dedicated to supporting employees' career growthand physical & mental well-being, moving forward together to build a brighter future.
Employee Rights ProtectionEmpowering Employee GrowthEmployee Health & SafetyEmployee Care & Communication
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
ComplianceEmployment
We strictly comply with theLabor Law of the People's Republic of China, theLaborContract Law of the People's Republic of China, and theLaw of the People's Republic ofChina on the Protection of Minors, and continuously improve our talent managementsystem to ensure employees' rights are fully protected.We recruit outstanding talent through both campus and social recruitment, maintainingan open and inclusive attitude. We successfully completed the campus recruitment forthe graduates of 2025, expecting to onboard over 100 top university graduates, whileestablishing partnerships with numerous academic institutions. We successfully recruitedoutstanding bachelor's and master's graduates from diverse disciplines and regionsacross China through channels such as WeChat Official Account, online applicationplatforms, campus presentations, and career fairs to broadly reach potential talent.
We adhere to OPPLE Lighting's "Five-Dimensional" interview guidelines of "Structured, Behavioral, Professional, Humanized,and Brand-oriented", upholding principles of fairness and impartiality in recruitment. Regular certification training is conductedfor interviewers to enhance their competency, and interview quality is routinely audited. If any non-compliance or substandardperformance is identi?ed, warnings and accountability measures are implemented, and the interviewer is required to undergo re-certi?cation.To foster a transparent, fair, and equitable workplace, we adhere to a merit-based approach in recruitment, promotion, and employeemanagement. All forms of discrimination or unfair treatment based on race, gender, age, religion, or other factors are strictlyprohibited, and the use of child labor or forced labor is categorically banned. Meanwhile, the Company actively create employmentopportunities for persons with disabilities and continuously promote diversity and inclusion within our workforce. In 2024, there wereno incidents involving child labor or forced labor at OPPLE Lighting, and the female employee ratio was 37.7%.
On-campus Recruitment Seminars
OPPLE Lighting – University-Enterprise Partnership Seminar with Chongqing University of
Technology
EmployeeRightsProtection
We consistently uphold a people-centric approach and strive to enhance ourability to attract and retain talent. Through diversi?ed talent acquisition strategies,an inclusive and equitable work environment, and a competitive compensationand benefits package, we fully protect the lawful rights of our employees. Wealso listen attentively to employee voices and provide mutual support for careerdevelopment and personal growth, building a sustainable, long-term talentattraction and retention mechanism.
Number ofEmployees
Total Employees
5,761
Male
3,588
Female
2,173By Gender
Undergraduate and above
1,779
College
High school and others3,131By Level ofEducation
Compensation &Bene?ts
We strictly comply with laws and regulations such as theTrade Union Law of the People'sRepublic of China, theLabor Law of the People's Republic of China, theContract Lawof the People's Republic of China, and theLocal Regulations on Payment of Wages. Wefully safeguard employees' rights to freedom of association and strictly follow nationalregulations regarding working hours, statutory holidays, paid leave, and overtimecompensation.We are dedicated to continuously optimizing our compensation and benefits systemand improving incentive mechanisms to energize our teams. By offering competitivesalaries, comprehensive benefits, and diversified incentive programs, we fully supportemployees in their ongoing professional development and foster mutual growth betweenindividuals and the Company. In 2024, we continued conducting external compensationbenchmarking to analyze both market competitiveness and internal equity, and usedthese insights to refine our compensation structure, striving to offer fairer and moreattractive rewards.
/ 62 // 63 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
We also place strong emphasis on employee well-being. Through a comprehensive range of benefits, including both statutoryentitlements and additional perks, we aim to meet diverse needs in both work and life, enhance job satisfaction, and improve overallquality of life.
OPPLE Lighting Employee Bene?ts
Extra Bene?tsHigh-temperature allowance
Commercial insuranceOverseas travel insurance
Flexible working hours
StatutoryBene?tsBasic old-age insurance, basic medicalinsurance, unemployment insurance,work-related injury insurance,maternity insurance and housing fundStatutory holidays such as parental
leave and nursing leave
OPPLE Lighting Promotion ProcessWe encourage internal mobility to enhance diversity and ?exibility in career development. On one hand, we focus on developing keypositions and continue to promote job rotation programs as part of our structured talent cultivation strategy. During the reportingperiod, over 600 rotations were completed, and more than 400 employees were developed into talent that meets our requirements.On the other hand, we opened select positions for internal applications across the entire group, encouraging employees to activelyengage, unlock their full potential, and support optimized talent allocation within the organization.OPPLE Lighting has built a comprehensive tiered talent development system, covering employees at all levels from sales associatesto senior executives. Through the OPPLE Academy digital platform 2.0, the Company has established 6 major course systems andover 4,600 boutique courses, comprehensively enhancing employees' professional and management capabilities. Meanwhile, wecontinuously improve our management mechanism, establishing systematic standards for selection, appointment, development,retention, and supervision of the management, promoting standardized and systematic management. Additionally, through ourongoing succession planning, the Company ensures su?cient reserve talent for key positions, achieving 100% coverage in talentpipeline, providing solid talent support for sustainable development.This year, we comprehensively upgraded our employee training system with a series of enhancements. We introduced new coretraining modules and launched a new online learning platform to offer employees more accessible and well-rounded learningresources that support both professional growth and career development. Our training programs also extended to frontlineemployees and distributors nationwide, focusing on enhancing technical expertise and regional competitiveness to support businessexpansion and market development.During the reporting period, we organized more than 400 training sessions in formats such as live online classes, video modules, andin-person courses. These sessions covered production line sta?, new hires, business personnel, distributors, and executives, reachingover 10,000 participants with a coverage rate of 90%. The training content spanned company policies and processes, professionalknowledge, product information, AI-powered applications, office skills, and leadership capabilities, comprehensively improvingemployees' competencies and e?ectively boosting business e?ciency.
Training System Optimization Measures
Employee Training
EmpoweringEmployeeGrowth
We are dedicated to talent development and have built a comprehensivelearning platform to support employees' professional advancement. We aimto unlock individual potential, enhance personal value in all dimensions, andactively promote career development.
Supervisor NominationEligibility ReviewTeam Decision Promotion E?ective
Updated role divisions
and supplementedcorresponding jobdescriptions, includingrevised departmentand personnel titles
Improved and
completed the trainingprocess ?owchart,identifying keyapproval personnel
Optimized the internal
trainer grading systemat OPPLE Lighting bycategorizing trainers intojunior, intermediate, andsenior levels based oncumulative teaching hours
Established a trainer
incentive mechanismwith clearly de?nedcompensationschemes to encouragemore employees tojoin the trainer team
Employee compensation consists of base salary, overtime pay, personnel allowances, quarterly/semi-annual bonuses, year-end bonuses,and long-term incentive programs for selected high-performing key personnel. We adopt differentiated performance managementmechanisms based on job characteristics and conduct regular performance evaluations on an annual, semi-annual, and quarterly basis.Bonuses are awarded according to evaluation results, reinforcing a performance-oriented culture that motivates employees to realize theirpotential and drives the Company toward high-quality development.In addition, we have implemented an equity incentive mechanism to reward employees who have made outstanding contributionsand demonstrated exceptional performance in our development. In 2024, we launched the second phase of our equity incentive plan,granting restricted shares to over 300 high-performing individuals in middle and senior management, key positions, and core managerialroles. This initiative further strengthens employees' sense of long-term responsibility and belonging, while supporting our stable andsustainable growth.
Fixed compensation + short-term incentive + long-term incentiveSet up annual performance goal, review semiannuallyObtain corresponding bonus incentives based on annual performance assessment
Compensation structure for the senior management
The Employee Compensation Structure of OPPLE Lighting
Basic salary + overtime pay + allowance + quarterly/semi-annual bonus + year-end bonusConduct annual, semi-annual, and monthly performance evaluation based on sales position and other positionsObtain corresponding bonus incentives based on routine performance assessment
Compensation structure for the employees
/ 64 // 65 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
EmployeeDevelopment
In 2024, we provided comprehensive career development support to all employees.For non-operational sta?, we developed individualized development plans (IDPs) foreach employee, aligning them with target roles, identifying key competencies, settingactionable goals, and tracking progress. This structured approach enabled employeesto systematically build core skills aligned with their roles and accelerate their careergrowth. For frontline employees, we offered open application opportunities andestablished clear promotion pathways into frontline management roles. These e?ortsencouraged employees to pursue breakthroughs in their careers, fully unlock theirpotential, and foster mutual growth between the individual and the Company.
Leadership M1 Reserve Manager ProgramCaseIn 2024, OPPLE Lighting launched the "Leadership M1 ReserveManager Program" as part of our leadership development initiative.A total of 56 participants successfully completed the program, whichachieved an impressive average satisfaction score of 97.The program featured 13 outstanding internal and external instructorsand comprised 18 carefully designed courses. The curriculumfocused on key areas such as management skill enhancement,strategic thinking, and leadership development. A variety of trainingformats were used, including video-based certification, project-based presentations, and comprehensive assessments, enablingparticipants to bridge theory and practice and enhance their overallcompetencies in a well-rounded manner.
Future Leaders - Torch Program Growth CampCase
The Torch Program Growth Camp, part of our "Future Leaders"initiative, was designed speci?cally for second-generation distributorsuccessors. A total of 20 participants joined the program, whichwas tailored to their learning needs and aligned closely with OPPLELighting's strategic direction. The curriculum integrated both trainingand practical exercises to comprehensively enhance participants'professional capabilities.Beyond skill development, the program deeply embedded ourcorporate culture and values to help participants better understandour mission and growth trajectory. It also strengthened theconnection between external distributors and internal regional salesteams, inspiring a strong sense of responsibility and motivationamong participants to contribute to our development, injectingrenewed momentum into our long-term sustainable growth.
OccupationalHealth
We strictly comply with theWork SafetyLaw of the People's Republic of China
and theLaw of the People's Republic ofChina on the Prevention and Control ofOccupational Diseases, as well as relevantregional regulatory requirements. We haveestablished 49 internal regulations, suchas theElectric Shock Emergency ResponsePlanand theHazardous Operations SafetyManagement System, which apply tosuppliers, customers, and visitors. Thesemeasures form part of our continuousefforts to improve our occupational healthand safety management system andstrengthen institutional safeguards. Duringthe reporting period, a total of 5 companies
and subsidiaries
ISO 45001 certificationfor occupational health and safetymanagement systems. Major productionbases, including the Suzhou Wujiang andZhongshan Industrial Park, passed safetystandardization evaluations.
Occupational Health and SafetyManagement System Certi?cate
We have implemented multiple measures to minimize employee exposure tooccupational hazards. On one hand, we enhance control and protection by providingpersonal protective equipment to employees potentially exposed to harmful factorssuch as noise and dust. Warning signs and hazard monitoring results are posted inwork areas to increase awareness. On the other hand, production line layouts areoptimized to promote automation, physical isolation, or reduced human exposure torisks, addressing hazards at their source.
EmployeeHealth &Safety
We regard employee health and well-being as a cornerstone of sustainablecorporate development. We are dedicated to building a robust occupational healthmanagement system and implementing comprehensive protective measuresto foster a reliable, healthy, and caring work environment. At the same time, weactively promote health training and benefit programs to enhance employeehealth awareness and quality of life, advancing sustainability for both employeesand the Company.
During the reporting period, the companies and subsidiaries that passed ISO 45001 occupational health and safety certi?cation included OPPLELighting Co., Ltd., OPPLE Intelligent Lighting Technology Co., Ltd., Suzhou OPPLE Lighting Co., Ltd., OPPLE Lighting Appliances (Zhongshan) Co.,Ltd., and OPPLE (Zhongshan) Smart Lighting Technology Co.,Ltd./ 66 // 67 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Furthermore, we continuously enhance employees' safety awareness and emergency response capabilities. Through variousemployee care initiatives, we foster a culture where "everyone values safety", e?ectively safeguarding the health and safety of ourworkforce.
In 2024, OPPLE Lighting reported zero work-related fatalities or serious occupational injuries. No incidents or deaths resulting fromwork-related health issues occurred during the reporting period.
Specialized Training on Safety Awareness & Injury PreventionCaseIn September 2024, OPPLE Lighting organized a monthlyspecial safety training session themed "Safety Awareness &Injury Prevention" as part of our annual plan. The trainingled to corrective actions on 52 safety risk points, including6 categorized as high-risk, further improving our safetymanagement standards.
Annual EmergencyResponse Plan
New EmployeeOnboarding TrainingEmployee HealthCheckupsFirst Aid TrainingEmployee WellnessActivitiesMental HealthCounseling
Develop an annual emergency response plan covering ?re protection, chemicalmanagement, con?ned spaces, and other emergency drills. The drill planincludes practical exercises and desktop simulations. Departments also organizetargeted emergency response training and awareness campaigns to strengthenemployee preparednessEvery new hire receives onboarding training covering hazard identi?cation,
emergency response measures, and equipment recognition and operation,ensuring a smooth transition into the work environmentAnnual physical examinations are arranged for employees, with professional
medical institutions providing detailed report interpretation to help employeesbetter understand their health statusExternal organizations such as the Red Cross are regularly invited to deliver
?rst aid and emergency response training, improving employees' emergencyhandling capabilitiesTo promote physical health and enrich employees' leisure time, the Company
organize events such as badminton, basketball, table tennis competitions, andfun sports games. These initiatives enhance vitality, boost team cohesion, andhelp relieve stressProfessional psychological counselors are available, and designated consultation
areas have been established to provide emotional support and assistance. Theseservices help employees manage stress and improve overall mental well-being
The number of work-related fatalities and incidents due tooccupational health issues was
In 2024We had
We proactively communicate with employees on health and safety matters. All employees sign safety responsibility agreements,while those in positions involving occupational hazards also sign hazard disclosure forms to clearly de?ne risk awareness andrequired compliance. Production departments hold monthly safety communication meetings, deliver daily safety reminders atmorning brie?ngs, and conduct periodic BBS (Behavior-based Safety) observations to cultivate safe work habits and e?ectivelyprevent accidents.We also provide continuous occupational health and safety training. In line with our 2024 training plan, monthly safety sessionswere conducted covering topics such as ?re safety and hazardous operations. Training coverage for relevant employees reached97%. Additionally, daily morning meetings included 10-minute safety brie?ngs to strengthen site-level safety awareness amongproduction sta?.
The Company conducted monthly safety sessions covering topics such as ?re safety and hazardous operations,with a training coverage for relevant employees ofIn 2024
work-related fatalities or serious work injuries
%
/ 68 // 69 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
We conduct regular workplace safety risk identification and assessments each year, covering all aspects of production andoperational activities as well as relevant stakeholders. During the reporting period, 21 risk identification items were updated,including 2 categorized as high-risk. A total of 745 safety risk items were identi?ed, further reinforcing the foundation of our safetymanagement system.To prevent Repetitive Strain Injuries (RSI), we regularly carry out RSI risk assessments and develop corresponding improvementplans. RSIs refer to injuries of the musculoskeletal or nervous system caused by repetitive motion, prolonged vibration, excessivepressure, or maintaining a fixed posture for extended periods. In 2024, we continuously optimized several processes andequipment con?gurations, e?ectively reducing RSI risk and minimizing the occurrence of such injuries among employees.
Production Safety
In terms of production safety management, OPPLE Lighting strictly enforces acomprehensive system of safety inspections, covering all aspects of chemical usageon production sites, fire protection systems, safety devices on equipment, protectivemeasures, and employees' safe operating behaviors. We conduct monthly and quarterlysafety checks, daily pre-operation safety con?rmations, and daily ?re inspections in keyareas. In addition, targeted inspections on machinery, chemicals, and fire safety areregularly organized to ensure all safety risks are e?ectively addressed. In 2024, a total of287 potential hazards were identi?ed, with a corrective action completion rate exceeding98%. These efforts have significantly enhanced our overall safety managementcapabilities and e?ectively reduced risks in production processes.This year, we completed the optimization and upgrading of three automatic blowmolding production lines and introduced automated welding equipment. Theseupgrades have reduced hazardous exposures associated with manual welding operationsand minimized direct contact with high-risk tasks. In addition, we strengthened noisecontrol measures to further safeguard employee health and workplace safety.
Noise Control Measures
Prioritize low-noiseproduction processes
Replace noisy operationswith AI-poweredequipment where possible
Perform daily checks toensure proper use of personalprotective equipment
Increased investment in automatic
packaging machinesExpanded deployment of automatic
blow molding equipmentIntroduced automated screw installation
devices Upgraded unmanned guided vehicles
Investment in Automation Equipment
Conduct regular on-site noisemonitoring to strictly controlemployee exposure time
Isolate high-noise tasks in designatedzones located away from areas withfrequent employee activity
The Company strictly enforces the management of hazardous waste and chemicals by establishing a comprehensive regulatoryframework to ensure standardized operations throughout the entire process. Through designated personnel, transparent informationhandling, environmental safeguards, personal protection measures, and risk assessments, we have signi?cantly enhanced the safetyand compliance of hazardous materials management, minimizing potential risks to both people and the environment.
Specialized Training on Chemical and Hazardous Waste ManagementCaseIn April 2024, OPPLE Lighting organized a regular trainingsession on the management of chemicals and hazardous waste,with full participation from all relevant operational personnel.The training covered standardized management requirements,common issues and preventative measures in daily operations,key precautions during handling, and emergency responseprocedures. This ensured that all participants acquired thenecessary knowledge and skills to perform their duties safelyand e?ciently while being well-prepared to handle unexpectedsituations. No chemical-related safety incidents occurred atOPPLE Lighting during 2024.
Implement dedicated
personnel assignmentsystemAll relevant personnel
must be trained andcerti?ed before assumingtheir roles
Personnel & Training
Strict inbound and
outbound registrationfor hazardous waste andchemicalsStorage areas equipped
with monitoring systemsExplosion-proof cabinets
installed at production
sites
Storage & Registration
Engage third-party
agencies for regular
environmental testing
Conduct regular
risk assessments
and unscheduled
inspections, with
immediate recti?cation
of identi?ed hazards
Inspection & MonitoringMaterial Safety Data
Sheets (MSDS) andhazard noti?cation cardsvisibly postedMaintain proper
ventilation in work areasEmergency supplies
readily availablePersonnel handling
hazardous substances
are required to wear
protective equipment
Information & Protection
/ 70 // 71 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
The Company conducts annual employee satisfaction surveys to gather broad-based feedback on areas such as HR management,logistical support, career development, and workplace equipment. These surveys serve as a foundation for continuously enhancingthe working and living environment, with the goal of creating a more comfortable and safer space for employees.In 2024, a total of 2,444 suggestions were submitted by employees. The overall satisfaction score reached 4.47, with improvementsrecorded across all major categories compared to 2023. In response, we organized and developed 109 targeted improvementinitiatives to ensure e?ective follow-up and phased implementation.
EmployeeCare &Communication
Employee Satisfaction Score
4.47
Increased from 2023
0.12
Number of improvement plans developed
O?ine ChannelsOnline Channels
Employee ExchangesEmployee Satisfaction Surveys
Management Face-to-Face
"Heart Light Community"Regularly organizedsessions involving newhires, current employees,and relevant functionaldepartments to understandonboarding experiencesand gather suggestionsfrom long-term employees
Conducted semi-annually to collect feedback on overall job satisfaction
Direct communicationsessions betweenmanagement andemployees to listen totheir concerns, understandsuggestions, resourceneeds, and track progresson issue resolution
An always-accessible digital platform where employees can leave messages
or questions. Responsible departments are tasked with responding
promptly
"Heart Light Community " Online Platform
We also actively encourage employees to voice their opinions and maintainmultiple online and o?ine channels to listen to their feedback, continuouslyimproving the employee experience.
At each of our operational sites, we have established labor unions to support employees. We empower these unions to operateindependently by enabling autonomous decision-making and elections, maintaining separate accounts, and organizing a varietyof activities such as holiday celebrations and recognition events. Union representatives are elected based on membership size andare encouraged to review, comment on, and participate in the approval of internal company policies and documents. In addition,employees are free to join interest-based clubs, which receive funding support from the Company to enrich their leisure life andfoster a vibrant workplace culture.
Employee Representative ConferenceEmployee Recognition Ceremony
Football ClubFun Sports Games
"Smurf Training Camp" for Employees with ChildrenCase
In 2024, OPPLE Lighting continued summer "Smurf TrainingCamp", a dedicated program for the children of OPPLELighting's employees. The camp offered a wide range offun and educational skill-based courses, along with a ?nalperformance to showcase what participants had learned.This initiative not only brought joy and enrichment to thechildren's summer vacation, but also gave employeesvaluable quality time with their families, helping themstrike a better balance between work and home life.
/ 72 // 73 /
Message from the CEO
/ 74 // 75 /
2024 Environmental, Social and Governance (ESG) Report
Win-Win Cooperation,Building a SustainableSupply ChainResponse to SDGs
OPPLE Lighting places great importance on supply chain management, recognizingit as a core driver of corporate growth. Grounded in principles of fairness andtransparency, we continuously optimize our supply chain systems to build a networkthat is stable, e?cient, and resilient. Through close collaboration with suppliers, weare dedicated to establishing mutually bene?cial partnerships that drive sustainabilityacross the entire value chain, contributing to industry prosperity and innovation.
Supplier Management OptimizationEnsuring Responsible Supply ChainSupplier Communication & Training
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
During the admission phase, we conduct rigorous reviews ofpotential suppliers, assessing their registered capital, annualrevenue, product lifecycle, production capacity, and other keybusiness credentials.ISO 9001 certi?cation is a mandatory requirement for supplier
quali?cation. As of now, 2,997 suppliers in the ProcurementCenter have obtained ISO 9001 certi?cation, accounting for70% of all registered suppliers.A two-tiered list system (long and short) is used to further
screen and classify suppliers:
Long List: Suppliers who meet the basicCategory SupplierAdmission ThresholdsShort List: Suppliers selected from the long list based
on evaluations of technical capability, quality, deliveryperformance, and key commercial termsSuppliers must meet our comprehensive standards across quality,
delivery, cost, technology, service, and risk. Only those who passthe full assessment are eligible to collaborate.
Materials are categorized based on two dimensions: ?nancial
impact and sourcing di?culty, enabling targeted managementstrategies for di?erent material types.Suppliers are scored on critical dimensions such as cost
performance, quality and technical capabilities, and deliveryreliability. Based on these evaluations, suppliers are classi?edinto ?ve categories: Strategic Suppliers, Key Suppliers, GeneralSuppliers, Marginal Suppliers and Disquali?ed Suppliers.Corresponding management measures are applied to eachcategory to ensure strategic alignment and continuousimprovement.
Suppliers who receive a D-grade performance rating are
issued a recti?cation notice. They must analyze root causesof underperformance and submit corrective action plans.Performance review meetings are held to approve andmonitor the execution of these plans, and performance istracked continuously.In cases of disquali?cation or voluntary withdrawal, the
supplier must submit a formal exit request to the SourcingEngineer of the Integrated Management Team. Thetermination of cooperation must be approved by designatedmanagement and documented accordingly.
Approved suppliers are subject to ongoing management,
including routine assessments and on-site evaluations.Key suppliers are reviewed annually or as needed, withspecial attention to production capacity, quality control, andoperational management. Assessment results are used ascritical input for the following year's resource allocation andprocurement planning.To reward high performers and phase out underperformers, we
conduct performance evaluations of both production and non-production suppliers across the Company and our subsidiaries.Evaluation criteria include business performance, qualitymetrics, and delivery outcomes.
Meanwhile, OPPLE Lighting promotes healthy competition among suppliers by establishing a fair and transparent supply chainmanagement system. We implement a scientifically designed supply allocation mechanism that considers multiple factors,including product quality, delivery capability, and cost control. Based on our procurement strategy, we reasonably distributesupply quotas between primary and secondary suppliers to ensure all parties receive equitable opportunities.
Supplier Quota Allocation Mechanism
Supply share is allocatedbased on bidding results,and performance iscontinuously monitoredto ensure fairness andtransparency
Supply share is allocatedbased on performancein quality, delivery, cost,and service, encouraginghealthy competition amongsuppliersTo enhance supply chain reliability, OPPLE Lighting continues to strengthen supplier quality management. We have established the
Supplier Quality Management Speci?cation, which outlines standards, rules, and requirements for quality control, and incorporated a
Quality Assurance Agreementinto our procurement framework contracts. In addition, we adopt multiple quality oversight measures,including annual supplier audits, unannounced inspections, and corrective actions for quality issues. During the reporting period, weconducted 78 on-site audits of key suppliers, covering areas such as incoming material quality management, in-process quality control,and change management, ensuring that suppliers meet our quality standards and sustainability requirements across all stages.To improve supply chain stability and mitigate potential risks, we implemented a localization strategy for aluminum extrusion and majorhardware procurement, expanding local sourcing and broadening material categories. Meanwhile, to reduce dependency on singlesuppliers, we introduced a "de-exclusivity " strategy, encouraging the diversi?cation of material sources. In 2024, our de-exclusivity ratereached 53%, successfully achieving the annual target and signi?cantly strengthening the resilience of our supply chain.As of the end of the reporting period
SupplierManagementOptimization
OPPLE Lighting views supply chain management as a key enabler of sustainabledevelopment and is dedicated to building an e?cient, transparent, and responsiblesupply chain system. To this end, we have established a comprehensive setof supplier management policies, including theSupplier Sourcing Procedure,Supplier Development Guidelines, Comprehensive Evaluation Procedure, SupplierPerformance Evaluation Procedure, and Supplier Performance ImprovementProcess. These frameworks aim to improve management efficiency and enhancethe structure and standardization of supplier oversight, ensuring both supply chainstability and operational e?ciency.
SupplierDe-Exclusivity Rate
%
Total Number of NewSuppliers
Total Number ofPartnered Suppliers
Supplier AdmissionSupplier Tiered Management
Supplier Recti?cation and ExitSupplier Evaluation & Performance Appraisal
BiddingMaterials
RegularMaterials
As of now,
2,997
suppliers in the Procurement Center have obtained ISO 9001 certi?cation, accounting for
%of all registered suppliers
In line with our internal policies, we have implemented a robust supplier management strategy that spans all critical stages such asadmission screening, tiered management, performance evaluation, partnership termination, etc. This comprehensive approach helpsboost the overall e?ectiveness of our supply chain and ensures its long-term resilience.
/ 76 // 77 /
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
During the reporting period
EnsuringResponsibleSupply Chain
We work closely with suppliers to uphold ethical business conduct andpromote green practices, progressively increasing transparency in procurementand supply operations. Our aim is to build a supply chain that is both e?cientand environmentally responsible.
Integrity inProcurement
SustainableProcurement
OPPLE Lighting regards integrity and compliance within the supply chain as a cornerstoneof sustainable development and strive to create an open and transparent ecosystem. Toregulate supplier behavior from the source, we incorporate clear ethical clauses into ourprocurement contracts, including theSupplier Anti-Bribery Commitmentand theSocialResponsibility Commitment. These requirements ensure that every part of the supplychain adheres to ethical and compliance standards. As of the end of the reporting period,577 suppliers had signed our anti-corruption code of conduct, with a signing rate of 78%,re?ecting a shared commitment to integrity throughout the supply chain.Internally, we have established a structured integrity management mechanism.Quarterly anti-corruption training is provided to procurement personnel tocontinuously strengthen compliance awareness and professional skills. During thereporting period, we achieved full training coverage across the procurement team,which contributed to a systematic improvement in supply chain managementcapabilities. We also carried out compliance audits on procurement activities,covering key areas such as bidding document review, bidding strategy optimization,and contract clause evaluation. Furthermore, we optimized internal controls acrossprocurement processes to ensure that all procedures are both compliant and e?cient.We view the construction of a green supply chain as a critical pillar of our sustainabilitystrategy and actively promote low-carbon transitions across procurement activities.During supplier onboarding, we implemented aSustainable Procurement Regulations
that clearly requires suppliers to comply with local environmental regulations andensure that all raw materials and products meet green standards. We prioritizepartnerships with suppliers demonstrating strong environmental performance. As ofthe end of the reporting period, 534 suppliers had signed theSustainable ProcurementRegulations. Additionally, when signing procurement agreements with customers,we include aSub-supplier Safety and Environmental Agreement, which mandatesenvironmental and safety training for suppliers entering our premises and reinforcesenvironmental compliance expectations.During supplier audits, we consider environmental management system certifications,such as ISO 14001, as a key evaluation criterion. We encourage suppliers to obtain thesecertifications and conduct dynamic assessments of their environmental performance.When non-conformities are identified, we work jointly with suppliers to develop targetedimprovement plans and help elevate their environmental management standards over time.We also focus on the environmental impacts of key stages in the supply chain. Inlogistics, we collaborate with suppliers to optimize transportation solutions andenhance carbon emissions control. For hazardous raw materials, we require suppliersto comply with EU restrictions on hazardous substances, as outlined in ourOPPLELighting Supplier Quality Manual. This includes strict management of auxiliarymaterials such as soldering tin and SMT adhesive. Suppliers are required to ensurethese materials comply with REACH regulations and provide valid compliance reports,ensuring all raw materials meet environmental and low-carbon requirements.
SupplierCommunication& Training
OPPLE Lighting places high importance on ongoing communication withour suppliers and engage with them through a variety of channels, includingroutine interactions, focused discussions, ad hoc visits, and our annual supplierconference. These e?orts deepen collaboration, promote mutual development,and help achieve win-win outcomes.
"Sustainable Growth and Long-Term Excellence" Procurement Center Supplier ConferenceCase
On November 8, 2024, OPPLE Lighting held the "Sustainable Growth and Long-Term Excellence" Procurement Center SupplierConference at our Wujiang Industrial Park. The event featured a core supplier roundtable, guided tours of our productshowroom, experience-sharing sessions from suppliers, and recognition of outstanding partners. These activities enhancedorganizational alignment, built strategic trust, reinforced our mutual commitment to collaboration, and contributed to the stableand e?cient operation of the supply chain.
Meanwhile, OPPLE Lighting is dedicated to empowering suppliers by enhancing their capabilities, thereby strengthening the overallresilience and competitiveness of the supply chain. We have established a comprehensive supplier development process thatincludes identifying capability gaps, designing targeted improvement plans, and executing them across quality, cost, delivery, andother key dimensions. In addition, we provide structured training programs that o?er technical guidance and industry knowledgesharing, helping suppliers continuously upgrade their overall performance.
Supplier Quality Training Sessions
Sessions
Participants
Persons
Average Training Duration Per Person
Hours
Total number of suppliers screenedusing the environmental evaluationdimension
Total number of suppliers assessedusing the social responsibilitydimension (e.g. questionnaire)
Total number of suppliers having signedthe supplier code of conduct with ananti-corruption component)
/ 78 // 79 /
Message from the CEO
/ 80 // 81 /
2024 Environmental, Social and Governance (ESG) Report
Commitment &Compassion,
Ful?lling Our SocialResponsibility
Response to SDGs
Light brings hope, and responsibility brings warmth. OPPLE Lighting actively fulfillscorporate social responsibilities under the public welfare mission of "Caring Light toIlluminate the Future". Leveraging our professional strengths, we dedicate ourselvesto public welfare efforts, contribute to building greener cities, and bring warmth tocommunities through concrete actions, working together to create a better society.
Green CitySocial Responsibility
Embracing Green,Advancing Toward a Low-Carbon Future
Talent Convergence,Building a Ful?lling Workplace Together
Win-Win Cooperation,Building a Sustainable Supply Chain
Commitment & Compassion,Ful?lling Our Social ResponsibilitySteady Progress,Building Governance Excellence
Illuminating Lives,Leading a Brighter Future
Green and Energy-E?cient Road Lighting Retro?t Project in Nan'an District, Chongqing
Green City
OPPLE Lighting actively embraces the concept of green development and support urbanlow-carbon transitions through smart lighting solutions. Our new generation of high-efficiency streetlights delivers luminous efficacy of up to 200 lm/W, setting a benchmarkin the industry. By innovating integrated control products, we have seamlessly combinedpower drivers and single-lamp controllers, enabling each streetlight to feature intelligentconnectivity, dimming control, and automatic fault alerts, greatly enhancing the e?ciencyand convenience of digital upgrades in urban lighting infrastructure.Currently, our smart street lighting and multifunctional smart pole projects have beensuccessfully implemented in cities such as Beijing, Shanghai, Shenzhen, Chengdu, andSuzhou. The number of connected smart lighting nodes has cumulatively surpassed onemillion, injecting intelligent momentum into urban green development.
Annual electricity savings rate
%
Annual electricity cost savingsapproximately RMB
millionAnnual reduction in standard coal consumptionapproximately
1,727
tons
Annual reduction in carbon emissions
approximately
4,802
tons
Key Results:
Signi?cant improvement in road surface illumination uniformity
OPPLE "Service Star" Employee
Recognition Campaign Poster
In our daily operations, we remain dedicated to serving society, not only bydelivering high-quality services to our customers, but also by sharing warmth andcare. The Company has established the "Service Star" program to honor employeeswho demonstrate outstanding contributions in community service, expressing ourgratitude and encouraging them to continue spreading warmth with professionalismand passion.
SocialResponsibility
OPPLE Lighting brings warmth through light and actively ful?lls social responsibilitiesby continuously engaging in public welfare initiatives across areas such as communitycare, educational support, and health awareness.
Community CareCase
OPPLE Lighting cares deeply about the well-being of all members of society. By bringing light into the lives of elderly citizensand sharing the laughter of children, we deliver warmth, connection, and compassion across generations.
The road lighting retrofit project inNan'an District, Chongqing, adoptedhigh-efficiency LED lighting toachieve
%coverage of energy-saving streetlightsacross the entire district
Health Education
Educational Support
Case
Case
We place great importance on educating consumers. By sharing our professional expertise in healthy lighting, we help familiescreate scienti?cally sound and comfortable home lighting environments.
OPPLE Lighting regards educational support as a vital component of its corporate social responsibility, focusing on healthylighting environments to strengthen its impact in the education sector.In January 2024, we supported educational development and student well-being by donating 456 high-quality lighting fixturesfor classrooms and dormitories across three schools in Danzhai, Guizhou, and Binchuan, Yunnan. This initiative has enhanced thelearning environments of 40 classrooms, bene?ting 572 students with eye-friendly illumination designed to reduce visual fatigue andpromote long-term eye health. By upgrading lighting infrastructure in schools, we are helping create more sustainable educationalspaces—one light at a time.
On June 1st, 2024, International Children's Day, our employeevolunteer team joined hands with the China Europe Alumni PublicWelfare Association to organize a special intergenerational charityevent at Changqiao Nursing Home in Xuhui District. Childrendelivered joyful performances of music and dance, engaging inheartfelt interactions with the elderly residents. Volunteers alsodonated 2,000 safety power strips with overload protection toelderly individuals living alone, effectively addressing electricalsafety risks in their homes. The event not only brought warmthto the elderly during the holiday but also helped the childrenunderstand the value of love and giving. It reflected ourcommitment to caring for the elderly and our genuine dedicationto serving communities with compassion.
On March 30th, 2024, we partnered with the ShanghaiConsumer Protection Committee's Health ConsumptionOffice to host a public education event on healthy lightingfor households. The event was held at Shuxiang Quyang inHongkou District and focused on improving lighting awarenessin everyday family life. Our professional lighting designersconducted live demonstrations to compare different lightingscenarios and explained best practices in various settings. Theyalso provided hands-on guidance on selecting lighting productstailored to individual needs. Citizens who participated expressedthat the event helped them understand how to make informedchoices about home lighting and deepened their appreciationfor how a well-designed lighting environment can positivelyimpact the physical and mental well-being of the entirefamily. This initiative showcased our ongoing commitment topromoting household health through professional, science-backed lighting solutions.
/ 82 // 83 /
Appendix
/ 84 // 85 /
2024 Environmental, Social and Governance (ESG) Report
Appendix
Index ofShanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Reporting
Disclosure RequirementsCorresponding Chapter of This Report
Climate change tacklingClimate Change RespondingPollutant dischargeEnvironmental Compliance ManagementWaste disposalEnvironmental Compliance ManagementEcosystem and biodiversity protectionResource Optimization & UtilizationEnvironmental compliance managementEnvironmental Compliance ManagementEnergy usageClimate Change RespondingUsage of water resourcesResource Optimization & UtilizationCircular economyResource Optimization & UtilizationRural revitalizationSocial ResponsibilityContributions to the societySocial ResponsibilityInnovation-drivenStringent Product Quality ControlEthics of science and technologyN/ASupply chain security
Supplier Management OptimizationEnsuring Responsible Supply ChainEqual treatment to small and medium-sized enterprisesSupplier Management OptimizationSafety and quality of products and servicesEnhancing Customer ExperienceData security and customer privacy protectionResponsible Marketing PracticesEmployees
Employee Rights ProtectionEmpowering Employee GrowthEmployee Health & SafetyDue diligenceEnhancing Responsible GovernanceCommunications with stakeholdersOptimizing ESG GovernanceAnti-commercial bribery and anti-corruptionUpholding Business EthicsAnti- unfair competitionUpholding Business Ethics
GRI Content Index
Statement of use
OPPLE Lighting and its subsidiaries have reported in accordance with the GRI Standards for the period "January 1, 2024to December 31, 2024.GRI 1 usedGRI 1: Foundation 2021
Disclosures Disclosure topicsIndex of sessionsGRI 1: Foundation 2021About the ReportGRI 2: General Disclosures 2021About the ReportThe organization and its reporting practices2-1Organizational detailsAbout the Report2-2Entities included in the organization's sustainability reportingAbout the Report2-3Reporting period, frequency and contact pointAbout the Report2-4External assuranceN/AActivities and workers2-6Activities, value chains and other business relationshipsOPPLE Lighting: A Legend of LightGovernance2-9Governance structure and compositionEnhancing Responsible Governance2-10Nomination and selection of the highest governance body Enhancing Responsible Governance2-11Chair of the highest governance bodyEnhancing Responsible Governance2-12
Role of the highest governance body in overseeing the management ofimpacts
Optimizing ESG Governance2-13Delegation of responsibility for managing impactsOptimizing ESG Governance2-14Role of the highest governance body in sustainability reportingOptimizing ESG Governance2-16Communication of critical concernsOptimizing ESG Governance2-17Collective knowledge of the highest governance body Enhancing Responsible Governance2-18Evaluation of the performance of the highest governance bodyPlease refer to the2024 Annual ReportStrategy, policies and practices2-22Statement on sustainable development strategyOptimizing ESG Governance2-23Policy commitmentsESG Strategy2-24Embedding policy commitmentsOptimizing ESG Governance2-26Mechanisms for seeking advice and raising concernsOptimizing ESG Governance2-27Compliance with laws and regulationsUpholding Business Ethics2-28Membership associationsDeepening Commercial PartnershipsStakeholder engagement2-29Approach to stakeholder engagementOptimizing ESG GovernanceGRI 3: Material Topics 20213-1Process to determine material topicsOptimizing ESG Governance3-2List of material topicsOptimizing ESG Governance3-3Management of material topicsFor details, see the following table
Appendix
/ 86 // 87 /
2024 Environmental, Social and Governance (ESG) Report
Disclosures Disclosure topicsIndex of sessions
EconomyGRI 201: Economic Performance 2016
201-1Direct economic value generated and distributedPlease refer to the 2024 Annual Report201-2
Financial implications and other risks and opportunities due to climatechange
Climate Change Responding201-3De?ned bene?t plan obligations and other retirement plansPlease refer to the 2024 Annual Report201-4Financial assistance received from governmentPlease refer to the 2024 Annual Report
GRI 204: Procurement Practices 2016
204-1Proportion of spending on local suppliersSupplier Management OptimizationGRI 205: Anti-corruption 2016205-2Communication and training about anti-corruption policies and proceduresUpholding Business Ethics205-3Con?rmed incidents of corruption and actions takenUpholding Business EthicsGRI 206: Anti-competitive Behavior 2016206-1
Legal actions for anti-competitive behavior, anti-trust, and monopolypractices
Upholding Business Ethics
EnvironmentGRI 301: Materials 2016301-3Reclaimed products and their packaging materialsResource Optimization & UtilizationGRI 302: Energy 2016302-1Energy consumption within the organizationClimate Change Responding302-2Energy consumption outside of the organizationClimate Change Responding302-3Energy intensityClimate Change Responding302-4Reduction of energy consumptionClimate Change Responding302-5Reductions in energy requirements of products and servicesClimate Change RespondingGRI 303: Water and E?uents 2018303-1Interactions with water as a shared resource
Environmental Compliance Management
Resource Optimization & Utilization303-2Management of water discharge related impacts
Environmental Compliance Management
Resource Optimization & Utilization303-3Water withdrawal
Environmental Compliance Management
Resource Optimization & Utilization303-4Water discharge
Environmental Compliance Management
Resource Optimization & Utilization303-5Water consumption
Environmental Compliance Management
Resource Optimization & Utilization
Disclosures Disclosure topicsIndex of sessions
GRI 305: Emissions 2016
305-1Direct (Scope 1) GHG emissionsClimate Change Responding305-2Energy indirect (Scope 2) GHG emissionsClimate Change Responding305-3Other indirect (Scope 3) GHG emissionsClimate Change Responding305-4GHG emissions intensityClimate Change Responding305-5Reduction of GHG emissionsClimate Change Responding305-6Emissions of ozone-depleting substances (ODS)Environmental Compliance Management305-7Nitrogen oxides (NOX), sulfur oxides (SOX), and other signi?cant air emissionsEnvironmental Compliance ManagementGRI 306: Waste 2020306-1Waste generation and signi?cant waste-related impacts Environmental Compliance Management306-2Management of signi?cant waste related impactsEnvironmental Compliance Management306-3Wastes generatedEnvironmental Compliance Management306-4Wastes diverted from disposal Environmental Compliance Management306-5Waste directed to disposalEnvironmental Compliance Management
GRI 307: Environmental Compliance 2016
307-1Non-compliance with environmental laws and regulationsEnvironmental Compliance ManagementGRI 308: Supplier Environmental Assessment 2016308-1New suppliers that were screened using environmental criteriaEnsuring Responsible Supply Chain308-2Negative environmental impacts in the supply chain and actions taken Ensuring Responsible Supply Chain
SocialGRI 401: Employment 2016401-1New employee hires and employee turnover Employee Rights Protection401-2New employee hires and employee turnoverEmployee Rights Protection401-3Parental leaveEmployee Rights ProtectionGRI 403: Occupational Health and Safety 2018403-1Occupational health and safety management systemEmployee Health & Safety403-2Hazard identi?cation, risk assessment, and incident investigationEmployee Health & Safety403-3Occupational health servicesEmployee Health & Safety403-4
Worker participation, consultation, and communication on occupationalhealth and safety
Employee Health & Safety403-5Worker training on occupational health and safetyEmployee Health & Safety
Appendix
/ 88 // 89 /
2024 Environmental, Social and Governance (ESG) Report
Disclosures Disclosure topicsIndex of sessions403-6Promotion of worker healthEmployee Health & Safety403-7
Prevention and mitigation of occupational health and safety impacts directly linkedby business relationships
Employee Health & Safety403-9Work-related injuriesEmployee Health & Safety403-10Work-related ill healthEmployee Health & Safety
GRI 404: Training and Education 2016404-1Average hours of training per year per employeeEmpowering Employee Growth404-2Programs for upgrading employee skills and transition assistance programsEmpowering Employee Growth404-3
Percentage of employees receiving regular performance and careerdevelopment reviews
Empowering Employee GrowthGRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employeesEmployee Rights ProtectionGRI 414: Supplier Social Assessment 2016
414-1New suppliers that were screened using social criteria
Supplier Management Optimization
Ensuring Responsible Supply Chain414-2Negative social impacts in the supply chain and actions taken
Supplier Management Optimization
Ensuring Responsible Supply ChainGRI 416: Customer Health and Safety 2016416-1
Assessment of the health and safety impacts of product and servicecategories
Empowering Product Innovation416-2
Incidents of non-compliance concerning the health and safety impacts ofproducts and services
In 2024, there were no signi?cant breaches
involving the health and safety impacts of
products and servicesGRI 417: Marketing and Labeling 2016417-1Requirements for product and service information and labelingResponsible Marketing Practices417-2
Incidents of non-compliance concerning product and service informationand labeling
In 2024, the organization had no
signi?cant breaches involving product and
service information and labeling417-3Incidents of non-compliance concerning marketing communications
In 2024, the organization had no
signi?cant violations involving marketingGRI 418: Customer Privacy 2016418-1
Substantiated complaints concerning breaches of customer privacy and losses ofcustomer data
In 2024, the organization had no
signi?cant substantiated complaints
related to violations of customer privacy
and loss of customer data
SASB IndexSASBSectionWater ManagementCG-HP-140a.1
(1) Total water withdrawn (2) total water consumed, (thousand m), percentage
of each in regions with High or Extremely High Baseline Water Stress
Resource Optimization & UtilizationCG-HP-140a.2
Description of water management risks and discussion of strategies andpractices to mitigate those risks
Resource Optimization & UtilizationPackaging Lifecycle ManagementCG-HP-410a.1
(1) Total weight of packaging, (2) percentage made from recycled and/or
renewable materials, and (3) percentage that is recyclable, reusable, and/or compostable
Resource Optimization & UtilizationCG-HP-410a.2.
Discussion of strategies to reduce the environmental impact of packagingthroughout its lifecycle
Resource Optimization & UtilizationProduct Environmental, Health, and Safety PerformanceCG-HP-250a.1
Revenue from products that contain REACH substances of very highconcern (SVHC) and assessment of supplier REACH requirements
Sustainable Procurement
Message from the CEO
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2024 Environmental, Social and Governance (ESG) Report
Greenhouse Gas Veri?cation Statement