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Report of Appotronics
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2021 Environmental Social and Governance (ESG) Report of Appotronics April , 2022
| 2021 Environmental Social and Governance (ESG) Report of Appotronics April , 2022 | |
| 2021 Environmental Social and Governance (ESG) Report of Appotronics April , 2022 | |
Content
Work Together to PromoteTalent DevelopmentSafeguard rights and interestsof employeesSupport employee developmentPay attention to employee careOccupational health and safety
Focus on Long-term OperationRegarding GovernanceStrengthen corporate governanceOptimize business managementAdhere to law and compliance
Lead a Better Life with Soulof Science and TechnologyCommitted to technologicalinnovationStrengthen quality managementEnsure product safetyProtect intellectual property
ESG ManagementPerfect ESG organizationsIdentify ESG topicsImprove ESG capabilitiesConduct ESG communication
Responsibility Topic: InnovatingSafety Management to Escortthe Growth of Appotronics
Improve security mechanismPrevent security riskEnhance emergency capabilitiesCultivate security culture
Approaching AppotronicsCompany pro?leCore valuesDevelopment historyKey performanceHonor review
Appendix
GRI standards tableFeedback
Work Together to Builda Friendly Community withthe Charm of Laser
Engage in charity and publicwelfare deeplyContribute to rural revitalizationPrevent and control the covid-19epidemic actively
Join Hands to Seek Win-winCommon DevelopmentCooperation and mutual bene?tBuild a chain of responsibilityImprove industry developmentDeepen international layout
Green Light Projection toClear Water and Blue SkyPay attention to environmentalprotection managementDevelop environmental-friendlyproductsPractice green operationAdvocate green of?ce
Improve CustomerExperience to Solidifythe Foundation of Service
Strengthen customer servicePerfect after-sales managementRespond to requests ef?cientlyProtect customer information
About this Report
Chairman Statement
0201
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
About the ReportThis report is the 2021 Environmental, Social and Governance (ESG) Report issued by AppotronicsCorporation Limited (hereinafter referred to as “Appotronics”, stock code: 688007.SH)，and also the third non-?nancial information report of the Company since its listing.On the principles of being objective, standard, transparent, and comprehensive, thisReport discloses Appotronics’ practices and performances in operation, environment, society,and other responsibility ?elds in 2021, and is released together with the annual reportmeanwhile.
Report scopeReporting scope: This report mainly discloses information of Appotronics Corporation Lim-
ited and covers all of its subsidiaries.Reporting period: This Report mainly covers the period from January 1, 2021 to December
31, 2021, while some contents are retroactive to previous years as appro-
priate in order to enhance the comparability and completeness of this
report.Report release cycle: This report is an annual report.Principles for preparation
This report is prepared in accordance with the GRI-Standards issued by the Global Report-ing Initiative (GRI) and the Chinese CSR Report Preparation Guide (CASS-CSR4.0) issued bythe Chinese Academy of Social Sciences, with reference to the Environmental, Social andGovernance Reporting Guide issued by Hong Kong Stock Exchange as the guiding princi-ples for information disclosure.
Data descriptionThe ?nancial data in the report are sourced from the annual report of Appotronics, whileother data are derived from the Company’s internal or manual collation. The currencytypes and amounts involved in this report are presented in RMB unless as otherwise speci-?ed. Appotronics guarantees that this Report is free from any false disclosure, misleadingstatements, or material omissions.
Report release formThe report is released in Chinese with printed and PDF electronic formats both. Welcome tovisit www.appotronics.com, Appotronics’ of?cial website, or www.sse.com.cn, the of?cialwebsite of Shanghai Stock Exchange website, to view and download this report.
Contact information
Address: 20-22/F, High-Tech Zone Union Tower, No.63, Xuefu Road,
Nanshan District, Shenzhen, Guangdong ProvinceWebsite: www.appotronics.comTel: +86 0755 - 3295 0000Email: csr@appotronics.cn
Appotronics
0403
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
Chairman Statement
The world has been changing over time, butthree aspects remain unchanged. I. The Sustain-able Development Goals (SDGs) of the UnitedNations have been released for seven years, butthe global goals for eradicating poverty and en-suring health keep unchanged. II. The year of2021 is the opening year of the National 14thFive-Year Plan and the second year of achievingthe “carbon peaking and carbon neutralitygoals”. In this year, from “poverty alleviation” to“rural revitalization”, and from the proposal ofgoals to the implementation of more and morepolicies, the enthusiasm of all parties towardssocial progress and green development keepsunchanged. III. The year of 2021 is also the thirdanniversary of the opening of the STAR Market. In this year, with continuous improvementof different systems, the belief of science and technology enterprises in raising the gover-nance level still keeps unchanged.Therefore, we deeply aware that a company, if excellent and capable of long-term devel-opment, is required to contribute business value on the one hand, and should activelyassume its responsibilities as a corporate citizen to make contributions to the global sus-tainable development on the other.Appotronics has always been on the way to practice the ESG philosophy. As a leader in thenew display industry, we committed to creating better life experience for millions of con-sumers and building a bigger and stronger laser display industry together with industrypartners by using disruptive technological innovation at the same time of bringing eco-nomic bene?ts to ourselves. Meanwhile, as adhering to people-oriented, we activelycreate a space of career development for employees “daring to dream and ?ght for” on
0605
LI YiChairman and CEO of Appotronics
the basis of fully protecting the legitimate rights and interests of employees, so that moreoutstanding talents can stand out and fully display their talents. In addition, as a corpo-rate citizen, Appotronics is actively practicing the concept of sustainable development,with the purpose to grow and share success with all stakeholders, and make the world abetter place through our efforts.Appotronics is one of the ?rst STAR Market listed companies to proactively disclose, andalso the ?rst company in the laser display industry to disclose, a CSR report, which is rep-resented by Appotronics’ publication of a separate social responsibility report for two con-secutive years since its listing on the STAR market in 2019. In 2021, we consciously upgrad-ed our work policy to the ESG philosophy. If CSR refers to a company’s self-expression ofsocial responsibility, ESG can be deemed as a company’s self-assessment and self-exam-ination in strict accordance with the United Nations Sustainable Development Goals andGRI standards.In 2021, we have made great efforts in environment, society and governance with typicalachievements as below:
First, as a positive response to environmental protection and climate issues, Appotronics ac-tively promotes more environment-friendly and energy-ef?cient advanced technologies toachieve harmonious coexistence with the environment. We are using the industry-leadingenvironment-friendly laser display technology to help cinemas, exhibition halls, art galleries,classrooms and other places to save energy and reduce emissions. As of December 31, 2021,the cumulative operating time of Appotronics’ ALPD laser projection solution has reached188 million hours, saving a total of 338 million KWh power consumption and reducing 148million cubic meters of carbon dioxide emissions arising from power generation, whichestablishes an industry model for energy conservation and emission reduction to achieve“carbon neutrality”; in addition, through innovative production technology, the averagewater consumption and the average electricity consumption per product decreased by
33.33% and 28.61% on a year-on-year basis respectively, and all discharge indicators such as
waste gas and waste water have achieved the 100% compliance rate.
Secondly, as a commitment to jointly build a harmonious society, Appotronics is willing toful?ll its social responsibilities and closely connect enterprise development with harmoni-ous society. We actively create high-quality jobs with focuses on the career developmentand physical and mental health of employees, stably pay taxes and levies, and coordinate-ly develop with the upstream and downstream industries; we also make modest contribu-tions to rural revitalization and talent development by delivering large-screen laser equip-ment to Qianxi City, Guizhou Province; in terms of patent protection, as of the end of 2021,we have had 2,419 patents ?led or granted cumulatively all over the world, of which 1,434patents are granted, and won the Gold Award of Guangdong Patent Award for four con-secutive years; we have reached cooperation with Airbus and some well-known automo-bile companies, so as to expand application scenarios and tap the potential for the laserdisplay industry;Furthermore, with great importance to corporate governance as always, Appotronics con-tinues to improve our internal control, risk management and compliance managementsystems. In the ESG sector, we integrate the sustainable development strategy into ourdaily operation and management activities. With high degree of responsibility by themanagement, coordinated participation by all departments, and continuous optimizationand upgrading, Appotronics has won a lot of honors, such as the Golden Bull Science andTechnology Innovation Award, the Best Board of Directors of Listed Company, the MostValuable Company for Investment Relationship, and the Most Favored Listed Companiesby Private Capitals, etc.Finally, 2022, the initial year for Appotronics to embark on the “next ?fteen-year journey”,we will continue to practice the ESG philosophy, deepen product innovation, improveincentive mechanism, and strive to create new cooperation model with adhering to themission of “New Light, New Life”. Meanwhile, we will actively respond to the expectationsand concerns of internal and external stakeholders of the Company, and promote a sus-tainable and high-quality common development among the enterprise, the society andthe environment.
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
The world has been changing over time, butthree aspects remain unchanged. I. The Sustain-able Development Goals (SDGs) of the UnitedNations have been released for seven years, butthe global goals for eradicating poverty and en-suring health keep unchanged. II. The year of2021 is the opening year of the National 14thFive-Year Plan and the second year of achievingthe “carbon peaking and carbon neutralitygoals”. In this year, from “poverty alleviation” to“rural revitalization”, and from the proposal ofgoals to the implementation of more and morepolicies, the enthusiasm of all parties towardssocial progress and green development keepsunchanged. III. The year of 2021 is also the thirdanniversary of the opening of the STAR Market. In this year, with continuous improvementof different systems, the belief of science and technology enterprises in raising the gover-nance level still keeps unchanged.Therefore, we deeply aware that a company, if excellent and capable of long-term devel-opment, is required to contribute business value on the one hand, and should activelyassume its responsibilities as a corporate citizen to make contributions to the global sus-tainable development on the other.Appotronics has always been on the way to practice the ESG philosophy. As a leader in thenew display industry, we committed to creating better life experience for millions of con-sumers and building a bigger and stronger laser display industry together with industrypartners by using disruptive technological innovation at the same time of bringing eco-nomic bene?ts to ourselves. Meanwhile, as adhering to people-oriented, we activelycreate a space of career development for employees “daring to dream and ?ght for” on
Li,YiApril 2022
the basis of fully protecting the legitimate rights and interests of employees, so that moreoutstanding talents can stand out and fully display their talents. In addition, as a corpo-rate citizen, Appotronics is actively practicing the concept of sustainable development,with the purpose to grow and share success with all stakeholders, and make the world abetter place through our efforts.Appotronics is one of the ?rst STAR Market listed companies to proactively disclose, andalso the ?rst company in the laser display industry to disclose, a CSR report, which is rep-resented by Appotronics’ publication of a separate social responsibility report for two con-secutive years since its listing on the STAR market in 2019. In 2021, we consciously upgrad-ed our work policy to the ESG philosophy. If CSR refers to a company’s self-expression ofsocial responsibility, ESG can be deemed as a company’s self-assessment and self-exam-ination in strict accordance with the United Nations Sustainable Development Goals andGRI standards.In 2021, we have made great efforts in environment, society and governance with typicalachievements as below:
First, as a positive response to environmental protection and climate issues, Appotronics ac-tively promotes more environment-friendly and energy-ef?cient advanced technologies toachieve harmonious coexistence with the environment. We are using the industry-leadingenvironment-friendly laser display technology to help cinemas, exhibition halls, art galleries,classrooms and other places to save energy and reduce emissions. As of December 31, 2021,the cumulative operating time of Appotronics’ ALPD laser projection solution has reached188 million hours, saving a total of 338 million KWh power consumption and reducing 148million cubic meters of carbon dioxide emissions arising from power generation, whichestablishes an industry model for energy conservation and emission reduction to achieve“carbon neutrality”; in addition, through innovative production technology, the averagewater consumption and the average electricity consumption per product decreased by
33.33% and 28.61% on a year-on-year basis respectively, and all discharge indicators such as
waste gas and waste water have achieved the 100% compliance rate.
Secondly, as a commitment to jointly build a harmonious society, Appotronics is willing toful?ll its social responsibilities and closely connect enterprise development with harmoni-ous society. We actively create high-quality jobs with focuses on the career developmentand physical and mental health of employees, stably pay taxes and levies, and coordinate-ly develop with the upstream and downstream industries; we also make modest contribu-tions to rural revitalization and talent development by delivering large-screen laser equip-ment to Qianxi City, Guizhou Province; in terms of patent protection, as of the end of 2021,we have had 2,419 patents ?led or granted cumulatively all over the world, of which 1,434patents are granted, and won the Gold Award of Guangdong Patent Award for four con-secutive years; we have reached cooperation with Airbus and some well-known automo-bile companies, so as to expand application scenarios and tap the potential for the laserdisplay industry;Furthermore, with great importance to corporate governance as always, Appotronics con-tinues to improve our internal control, risk management and compliance managementsystems. In the ESG sector, we integrate the sustainable development strategy into ourdaily operation and management activities. With high degree of responsibility by themanagement, coordinated participation by all departments, and continuous optimizationand upgrading, Appotronics has won a lot of honors, such as the Golden Bull Science andTechnology Innovation Award, the Best Board of Directors of Listed Company, the MostValuable Company for Investment Relationship, and the Most Favored Listed Companiesby Private Capitals, etc.Finally, 2022, the initial year for Appotronics to embark on the “next ?fteen-year journey”,we will continue to practice the ESG philosophy, deepen product innovation, improveincentive mechanism, and strive to create new cooperation model with adhering to themission of “New Light, New Life”. Meanwhile, we will actively respond to the expectationsand concerns of internal and external stakeholders of the Company, and promote a sus-tainable and high-quality common development among the enterprise, the society andthe environment.
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
0807
ApproachingAppotronics
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
1009
Approaching Appotronics
Founded in 2006, Appotronics is a leading technology company in the laser display ?eldwith in-house R&D, patented core technology, and critical components manufacturing ca-pability. It ?rstly invented the ALPD? laser display technology worldwide in 2007 and hasrealized technology industrialization on a global scale.Adhering to the track of light and focusing on the display industry, Appotronics, as led byALPD?
laser display technology and architecture, is mainly engaged in R&D, productionand sale of core laser display devices and complete laser display equipment coveringhousehold display, cinema projection, business education, engineering and other applica-tion scenarios, and ?rstly enters into innovative ?elds such as aviation, vehicle display, AR,as to create values for users continuously and bring them a beautiful visual experience.
Company pro?le
1211
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
As listed in the STAR Market of the Shanghai Stock Exchange in 2019, (stock code:
688007.SH), Appotronics is one of the ?rst SSE STAR Market listed companies, andremains the ?rst SSE STAR Market listed company in Guangdong Province, and the ?rstA-share listed company from the laser display ?eld. Appotronics has headquarter andR&D center in Shenzhen. It is a true leader in the laser display ?eld formed by the globalR&D leaders from specialized areas such as optics, electronics, materials, physics, me-chanical engineering, and precision manufacturing.
VisionTo become the pioneer in the display industry through disruptivetechnical innovations and differential mode covering the entirevalue chain
Core values Respect customers Guided by performance Live up to our words Criticism and self-criticism
MissionNew Light，New Life
Core value
In 2006, Mr. LI Yi, the founder of Appotronics (chairman and CEO of Appotronics), estab-lished Appotronics in ShenzhenIn 2007, it successfully developed the world’s ?rst ALPD
? laser display technologyIn 2013, it cooperated with LG to launch the world’s ?rst laser TVIn 2014, Appotronics cooperated with CFGC and Barco to explore application scenarios forlaser display.In 2015, the world’s ?rst ALPD
?laser projector settled in Shenzhen, which is still runningstably at presentIn 2017, Appotronics released China’s ?rst laser digital cinema projector C5 satisfying therequirements of the DCI standard
Development history
Economic performance
Key performance
RMB
2.498
billionOperatingincome
28.19%
Year-on-yearincrease in
operatingincome
33.91%
Overall grosspro?t
RMB
million
Net pro?t attributable
to the parent compa-
ny after deduction ofnon-recurring pro?t
or loss
208.46%
Year-on-year increasein net pro?t attribut-able to the parentcompany after deduc-tion of non-recurring
pro?t or loss
In 2018, Appotronics cooperated with Xiaomi to launch the world's ?rst laser TV pricedless than RMB 10,000In 2019, Appotronics listed as one of the ?rst SSE STAR Market listed companiesIn 2021, Appotronics reached cooperation with Airbus to explore new application scenari-os of laser display through innovative businessThe installed base of domestic laser ?lm projection equipment exceeded 25,000 equip-ment
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Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
Winning time
DecemberChina Securities Journal
Golden Bull Science andTechnology InnovationAward
December
Best Board of Directorsof Listed Companythe “11th Reputation Listof China Listed Compa-nies in 2021” by NationalBusiness Daily
December
The Most Valuable Com-pany for Investment Re-lationship in 2021The Most Favored ListedCompanies by PrivateCapitals in 2021
The First Award List ofListed Companies withValuable InvestmentRelationships
December
Best Shareholder Rela-tions AwardBest Capital Market Com-munication AwardBest Leader AwardRoadshow ChinaExcellent IR
December
Shenzhen AdvancedManufacturing BravebullAwardShenzhen ElectronicEquipment Industry As-sociationShenzhen IntelligentEquipment Industry As-sociation
November
2021 High-quality Devel-opment Leader (LI Yi)Shenzhen EnterpriseHigh Quality Develop-ment Promotion Asso-ciation
Award issuerAward nameHonor reviewSocial performance
1,565
personsNumber ofemployees
12,000hours Totalemployee training
hours
25.5
million sharesGranted restricted
stock200+
Grantees
RMB
millionR&D investment
15.78%
Y
ear
-on
-year
increase
in
R&D
investment
29.14%
P
rop
o
r
tion
of
R&D
p
e
r
s
onnel
Environmental performance
million cubic metersReduced carbondioxide emissions onassistance withcinema partners
million KwhElectricity powersaved on assis-tance with cinemapartners
100%
Compliance rate ofeach emission indica-tor in the production
process
*Shenzhen Bao’an Plant*Shenzhen Bao’an Plant
2,419
Patents ?led orgranted cumula-tive all over the
world
33.33%
Decreased waterconsumption per
product
28.61%
Decreased electricity
consumption per
product
1615
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
Winning timeAward issuerAward name
November
Silver Award and theBest Popularity Award ofthe 6th Enterprise Learn-ing Design Competitionof CSTD in 2021Chinese Society forTalent Development(CSTD)
August
The Gold Award of the8th Guangdong PatentAwardGuangdong Provin-cial Administrationfor Market Regula-tion
July
June
2021 STAR Market HardTechnology Leading En-terprise AwardCaijing.com.cn andSMDC
Top 50 Valuable Compa-ny in the STAR MarketShanghai Station ofChina Media Group
May
The 2nd List of Top 100Brand Enterprises inShenzhenShenzhen Quality CityPromotion Association
April
The First Prize of Prod-uct InnovationBeijing Lighting Soci-ety
October
Science and TechnologyInnovation AwardChina Video IndustryAssociation
September
2021 Guangdong-HongKong-Macao Greater BayArea Emerging Enter-prisesEconomic Observer
Winning timeAward issuerAward name
March
2021 Red Dot DesignAwardRed Dot Design Award
January
2020 Shenzhen MayorAward (LI Yi)Shenzhen MunicipalGovernment
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Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
Responsibility Topic:
Innovating Safety Manage-ment to Escort the Growthof Appotronics
2019
Prevent security risk
Insisting on problem-oriented, we investigate safety hazards comprehensively around thespecial recti?cation action of safety production, monitoring safety hazards monthly andrectifying them timely, so that the overall safety situation can be controllable and theCompany’s achievement in safety risk prevention and control is remarkable throughoutthe year. In 2021, recti?cation rate of the Company’s safety hazards is 100%, with no acci-dent of minor injury or below and no ?re hazard accident occurring.
Enhance emergency capabilities
In 2021, Appotronics actively organized ?re drills with focuses on personnel evacuationand escape, explanation and practical operation of ?re-?ghting equipment, elevatorrescue, training of ?rst aid knowledge, etc., simulating real ?re scenes and learningescape techniques as to use ?re-?ghting equipment skillfully and response to emergen-cies promptly. At the same time, we organized employees to participate in the ?rst-aidpublic welfare training held by Shenzhen Red Cross Society, with a purpose to enhanceemployees’ accidental injury ?rst-aid ability, and constantly improve the Company’soverall response preparedness towards safety production emergencies.
Responsibility Topic:
Innovating Safety Management toEscort the Growth of Appotronics
Work safety is of paramount importance. In 2021, focusing on building a science and tech-nology innovation enterprise oriented by production safety, Appotronics fully implement-ed the main responsibility of an enterprise by continuously innovating and implementingsafety management, ful?lling the statutory responsibility for safety production, strength-ening due diligence in safety production, and doing well in safety hazards investigationand safeguard measures for safe operation, so as to effectively build a security defenseline to promote the Company’s steady growth and development.Improve safety mechanism
We continue to improve thesafety management mechanismand promote the safety produc-tion system construction. We setup a safety management com-mittee with a safety manage-ment committee of?ce, andarrange the Company’s R&Dcenter and supply chain centerto be responsible for the speci?cimplementation. We promote the Company’s headquarters platform and R&D assess-ment department to sign the safety responsibility letter with the signing rate reaching100%. At the same time, we have completed the safety hazards investigation and remedi-ation and the preparation of emergency plans for production safety accidents, and ob-tained the “Safety Production Standardization” Certi?cate issued by the Safety Produc-tion Association of Nanshan District, Shenzhen in April 2021, which promoted the Compa-ny’s safety production standardization.
Issued with the Work Safety Standardization Certi?cate
Organize and carry out annual ?re drills
The work in this chapter supports the followingSustainable Development Goals of the United Nations:
2221
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
Organize to participatein public ?rst aid training
Cultivate security culture
In 2021, with great attentions to playing the leading role of safety culture, we organized aseries of safety activities by taking “Safety Production Month” as the opportunity, such asproduction safety knowledge training, safety essay campaigns and joint inspections, so asto help employees master safety knowledge and skills continuously to provide solid guar-antee for safe production.Organize employees to participate inthe training of the Law of the People’sRepublic of China on Work Safety
Organize safety essay campaignsthe Law of the People’s Republicof China on Work Safety
Conduct security checks on the constructionsite of the headquarter building
Conduct security checks on the supply chain
2423
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
ESG Management
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
2625
Perfect ESG organizationsIn order to promote the effective implementation of the Company’s ESG work, Appotron-ics has gradually established and improved an ESG management communication and co-ordination mechanism integrating all departments.Chairman of Appotronics, as the ?rst responsible person, is responsible for deliberatingand approving the Company’s ESG strategies and targets; while different functional de-partments, business departments and subsidiaries are responsible for formulating corre-sponding work targets and plans, implementing the Company’s strategies, and main-taining communication with internal and external stakeholders. Therefore, it forms a workpromotion method of implementing the ESG strategies and targets step by step undercoordinated supervision after they are deliberated and approved.Identify ESG topics
In order to further enhance the relevance and responsiveness of the report, and ensurethat the identi?cation and determination of ESG topics are carried out so scienti?callyand ef?ciently that can cover concerns and basic demands of the Company’s internaland external stakeholders, Appotronics continues to promote the management of ESGkey topics. At the early stage of report preparation, we screen out ESG topics that are ofhigh concern to stakeholders and close to Appotronics’ performance of responsibilities tobe the key contents disclosed by the report by, among others, studying the developmentbackground of the industry in which the Company is located at home and abroad, analyz-ing the Company’s work priorities throughout the year, benchmarking with excellentreports in the same industry, and conducting surveys on substantive topics.
ESG Management
1.Integrity and compliance
2.Economic value creation
3.Corporate governance pefection
4.Protections of rights and interests of shareholders
5.Enhancement of risk management and control
6.Prevention of corruption and bribery
7.Strengthening of tax payment according to law
Corporate Governance
8. Product quality improvement
9. Safe use of products
10. Product R&D innovation
11. Intellectual property protection
12. Product compliance promotion
13. After-sales service improvement
14. Privacy protection and data security
Product service
15. Supply chain management improvement
16. Promotion of fair competition
17. Enhancement of strategic cooperation
18. Promotion of industry development
Partner
Step one: topic identi?cationAppotronics has formed a database totaled 37 ESG key topics in accordance with domes-tic and foreign ESG standard guidelines, ESG development trends, national policy require-ments, benchmarking of peer companies, and stakeholder surveys at the combinationwith the Company’s development plans.
2827
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
Step two: topic analysis
28. Protection of rights and interests of employees
29. Promotion channel improvement
30. Employee ability cultivation
31. Occupational health and safety
32. Work-life balance
33. Caring for employees
Staff management
34. Contribution to targeted poverty alleviation
35. Charity and public welfare development
36. Harmonious community development
37. Support for Covid-19 epidemic prevention and control
Social feedback
19. Production waste management
20. Water resource utilization
21. Wastewater management
22. Product green design
23. Product recycling
24. Packaging material management
25. Climate change response
26. Biodiversity protection
27. Advocating of green of?ce
Environmental protection
Improve ESG capabilities
Appotronics is concerned with the improvement of all employees’ ESG awareness and capa-bilities, focusing on combining ESG training with various types of business training andsafety training in our daily work, and promoting to integrate ESG management with businesswork deeply, so as to penetrate the ESG philosophy and ESG goals into our daily businesswork in a better way.Conduct ESG communication
1.Communication with stakeholders
Appotronics attaches importance to communicating with internal and external stake-holders, and constantly enriches the methods of communication with stakeholders.Through different mechanisms and methods such as shareholder meetings, of?cial web-site, satisfaction surveys, public welfare activities and media communication, we havebuilt a diversi?ed internal and external communication platform to disseminate our cor-porate philosophy and ESG work dynamics, so as to promote stakeholders’ understandingand support to the Company.
Appotronics conducts stakeholder surveys related to 37 key ESG topics through onlinequestionnaires, requiring internal and external stakeholders, such as shareholders, suppli-ers, customers, executives, employees, media, and research institutions, to provide feed-back on the importance of different topics to Appotronics. In accordance with thesesurvey results, Appotronics establishes a two-dimensional matrix integrated with “stake-holder concerns” and “importance to Appotronics’ ESG”, through which key ESG topics ofAppotronics are identi?ed.We will disclose the ESG report based on the importance of the identi?ed key ESG topics,ensuring that we disclose focused information in line with stakeholders’ expectations inthe report at the same time of guaranteeing the content completeness and enhancingthe materiality of the report.
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2.Response to stakeholders
Appotronics identi?es the Company’s stakeholders, expectations and responses throughcustomer questionnaires regarding the Company’s products, management question-naires and interviews, and interviews with investors, relevant government departmentsand the media.
Shareholdersand Investors
Stakeholder
Expectationsand demands
Communicationchannels and methods
GovernmentandRegulatoryAgencies
Employees
Case: Appotronics was invited to participate in the SouthernInternational Forum of Finance and Economics 2021On December 3, 2021, the “Southern International Forum of Finance and Eco-nomics 2021” was jointly held by the Guangdong-Hong Kong-Macao GreaterBay Area Headquarter of China Media Group and Southern Finance OmnimediaCorp in Guangzhou City, where Nobel economists, major global stock exchang-es, securities regulators, internationally renowned brokerage agencies, and rep-resentatives and guests of high-quality development listed companies wereinvited to take in-depth discussion on annual themes of capital, technologyand industry cycle. Mr. TANG Shi, Vice President of Appotronics, was invited todeliver a speech in this forum to share his thoughts on the popularity of ESGphilosophy and the new strategy of high quality development of listed compa-nies in the context of the dual-carbon era. Mr. TANG represented that, as a hardand core technology company, Appotronics was most concerned about how tobring more social value by using technology, hence Appotronics attached greatimportance to ful?lling social responsibility from the beginning of listing andraising social responsibility work to the level of the board of directors. Chairmanof board of directors, as the ?rst responsible person, led Appotronics to carryout relevant work from a strategic height.
Operation risk preven-tion
Compliance operation
Protection of employeerights and interests
Payment of taxes ac-cording to law
Employee training anddevelopmentOccupational healthand safety
Workers’ congressEmployee trainingSatisfaction surveyEmployee reports andcomplaintsWork-life balance
Promotion of economicdevelopment
Regulatory assessmentActive payment of taxesSpecial meeting
Corporate annual reportsand announcements
Of?cial website and inves-tor relations websiteSpecial meetingRoadshowAsset preservation andappreciationActive exploration ofmarketsSteady return on invest-ment
Client/Consumer
2021 EnvironmentalSocial and Governance (ESG) Report
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Product quality im-provement
Of?cial website, of?cialWeChatSatisfaction surveySymposiumReports and complaintsHigh-quality custom-er serviceClear communicationchannels
Appotronics
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Supplier
Stakeholder
Expectationsand demands
Communicationchannels and methods
Communityand public
Environment
Environmental manage-ment
Community public wel-fare undertakingsProviding employmentopportunity
Energy resource savingEmission and pollutionreduction
Improvement of resourceusage ef?ciencyCarrying out energy savingand emission reductionGreen Of?ce
Active participation incharitable donationsParticipation in socialwelfare activitiesProviding jobs
Supplier ConferenceReports and complaintsSupplier trainingFair and equitable pro-curementHonesty and integrity
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Focus on Long-termOperation RegardingGovernance
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1.Improve governance capabilities
Appotronics has established a diversi?ed governance structure to fully mobilize theresources of all parties for coordination and continuously raise the level of corporate gov-ernance. The Board of Directors works strictly in accordance with the requirements of theArticles of Association, the Rules of Procedure of the Board of Directors, the WorkingSystem for Independent Directors and relevant laws and regulations. The Board of Direc-tors is a permanent decision-making and management department of the Company,with four special committees established under it, namely, the Strategy Committee, theCompensation and Performance Assessment Committee, the Nomination Committee andthe Audit Committee. In order to enhance the objectivity and scienti?city of the decisionsof the Board of Directors, the Company has appointed independent directors to partici-pate in decision-making and supervision processes. Independent directors perform theirduties independently, actively safeguard the interests of the Company and shareholdersas a whole, and express independent opinions on important and material matters.
2.Strengthen information disclosure
Appotronics is committed to establishing good investor relations, disclosing corporateinformation in a true, accurate, complete and timely manner, and establishing a soundmechanism for the protection of shareholders’ rights and interests. In 2021, we disclosed atotal of 209 announcement documents related to various types of company information,and actively provided suggestions and communication services with regulatory agencies.In 2021, we organized 2 performance brie?ng sessions, 4 online live broadcasts/Q&A activ-ities, and more than 150 surveys and reverse roadshows, answered more than 480 calls,more than 70 questions on the SSE e-interactive platform, and held 3 public online inves-tor reception day activities actively, so as to effectively responded to the expectations andsuggestions of small and medium investors.
Strengthen corporate governanceIn strict accordance with the requirements of the Company Law of the People's Republicof China, the Securities Law of the People’s Republic of China, the Rules Governing theListing of Stocks on the STAR Market of the Shanghai Stock Exchange and other relevantlaws, regulations and regulatory documents, Appotronics continues to improve the struc-ture of corporate governance and raise the level of corporate governance.
Focus on Long-term OperationRegarding Governance
Shareholders' meeting
Board of Directors
Board of Supervisors
The work in this chapter supports the followingSustainable Development Goals of the United Nations:
StrategyCommittee
Compensationand PerformanceAssessmentCommittee
AuditCommitteeNominationCommittee
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Optimize business management
Based on the development and reform opportunities of the technology industry, Appo-tronics continues to consolidate its leading position in the market by active responding tochanges in the market and environment, increasing its efforts to innovation and transfor-mation to strengthen its core business market position and accelerate its businessgrowth, and raising its operational management and control level continuously.
1.Steady performance growth
In 2021, with active response to the impacts of the Covid-19 epidemic and policies, Appo-tronics strived to raise the management level, continued to improve the industrial layout andoptimize the business structure, and promote innovative development actively, hence theresults of operation grew steadily throughout the year. In 2021, Appotronics’ operatingincome amounted to RMB 2.498 billion, up 28.19% on a year-on-year basis; net pro?t attribut-able to the parent company after deduction of non-recurring pro?t or loss amounted to RMB124 million, up 208.46% on a year-on-year basis; and overall gross margin was 33.91%, withan increase of 5.39%.
3.Risk internal control management
Appotronics always manages risk prevention and control throughout the whole processof enterprise operation. In 2021, the Company conducted end-to-end audits on processesof procurement business, infrastructure business, production business, and Formovie’soutsourced business with focuses on process standardization and operation ef?ciencyand effectiveness, assessing and revealing problems of key business process risks andpromoting closed-loop improvement of risk problems, so as to raise the Company’sinternal control maturity level continuously.
Disclosed a total of 209 announcement documents re-lated to various types of company information
Organized2 performancebrie?ng sessions
4 online live broadcasts/Q&Aactivities
More than150 surveys and
reverse roadshowsAnswered more than
480 calls
More than70 ques-
tions on the SSE e-in-teractive platform
Held 3 public online investorreception day activities actively
Investors came to Appotronics to participatein the management exchange meeting
Interim 2021 Financial Results Conference
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2.Continuous business development
In 2021, Appotronics actively adapted to changes in the environment, market and policies,and innovate systems and mechanisms with increased investments in innovation, so as topromote continuous development of Appotronics’ businesses.
FormovieIn 2021, the private label business of Formovie, a subsidiary controlled by Appotronics,increased by over 50% on a year-on-year basis, accounting for nearly 50% of Formovie’soperating income in total for the ?rst time. Meanwhile, its gross margins increased sig-ni?cantly with the ranking in the household smart projection market climbed rapidly. Ac-cording to the IDC report, Formovie ranked third in terms of sales in the overall house-hold projection market in 2021. In the second half year of 2021, Formovie released anumber of new household laser micro-projection products to fully opened a new laserprojection era, and launched the ?rst panchromatic laser TV T1 by cooperating with theglobally well-known high-end audio brand Bowers & Wilkins. With the purpose of activelyexpanding its of?ine channels, Formovie opened its ?rst of?ine experience store inChongqing in May 2021 and several experience stores during the year, so as to make acloser product experience available.
R1X1
P1T1
R1 Nano
The private label business increased on a year-on-year basis
50%Over
50%NearlyFormovie’s operating income in total
Business of household core devicesThe Company’s core household device business has achieved a rapid growth andcovered all domestic head projection brands by providing laser microprojection core de-vices or laser TV light generator and complete projectors to partners such as Dangbei,Anker, Zebao and Xgimi. With continuous expansion of the upstream and downstreamfriend cycle of the ecological chain, the Company drives the overall development of theindustry ecology and promotes the benign expansion of the industry through core devic-es and technical advantages.
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Business of innovative core devicesWith its technical advantages in laser display, the Company actively explores new applica-tion scenarios to create new performance growth points. In 2021, the Company ?rstly de-ployed innovative businesses such as vehicle display, aviation display, cloud display andAR.For aviation display, the Company has concluded a strategic cooperation agreement withAirbus; for vehicle display, the Company has taken intelligent cockpit as the main cover-age scenario to apply laser display in HUD, vehicle window projection, vehicle canopy byvirtue of features such as small size, high brightness, low energy consumption and lowheat dissipation.
Vehicledisplay
Aviationdisplay
AR
Business educationRelying on continuous contributions by the private label business, the Company’smarket share and gross margin in business education have increased effectively. Accord-ing to AVC’s China Laser Projector Market Research Report in 2021, the Company ranked?rst in terms of shipments and second in terms of sales in the education laser projectionmarket. During the reporting period, the Company has made a breakthrough in overseascommercial education business market with products entering into markets of Turkey,UK and France.
Business of laser large venue projectors
The T series products launched by the Company in 2021 are the smallest and lightest33,000 lumen laser engineering projectors with best color and lowest noise in the marketin terms of domestic self-developed DLP solutions. The Company’s revenue in largevenue projector business has doubled year-on-year. According to AVC’s China Laser Pro-jector Market Research Report in 2021, the Company ranked second in terms of sales andthird in terms of shipments in the large venue laser projector market.
Business of cinema projectionWith the phased improvement of the domestic epidemic situation in 2021, the Companyhas achieved an operating income amounting to RMB 360 million in cinema projectorservice business by creating high-brightness halls, helping theaters to differentiate theiroperations and providing content audio-visual ecological solutions, up about 110% on ayear-on-year basis. With nearly 5,000 sets of laser ?lm light sources installed nationwide,the Company continues retain its absolute market leadership.
RMB
millionOperatingincome
Nearly
5,000
new onlineinstallationsnationwideUp about
110%
on a year-on-year
basis
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Appotronics’ reporting method for integrity problems
Whistleblowinghotline:
Whistleblowingemail:
Whistleblowingrewards:
Protectionmeasures:
136 2092 6735
jubao.audit@appotronics.cn
Appotronics will assign special personnel to follow up andmanage the reporting clues, and keep these clues strictlycon?dential to protect the legitimate rights and interests ofwhistleblowers.
For those who take the initiative to report and actively co-operate with investigation and evidence collection and veri-?cation, Appotronics will reward the whistleblowers basedon 30%-50% of the recovered amount (up to RMB 1 million inmaximum), and promises they are exempted from punish-ment and given cooperation opportunities in priority underthe same conditions.
2.Create integrity culture
With continuous promotion to integrity culture construction, Appotronics adheres to pre-paring for worst-case scenarios and strengthening red line awareness. On the basis ofstrictly abiding by relevant laws and regulations, we have formulated the Anti-CorruptionManagement System of Appotronics, the High-voltage lines for Codes of Appotronics’Employees and other internal business ethics rules and regulations covering all employ-ees, as to regulate the Company’s business activities and employees’ business conducts.At the same time, with focuses on partners’ business ethics performance, Appotronicscontinues to strengthen supplier management and integrity construction, execute theIntegrity Cooperation Agreement with all external suppliers and other partners, superviseand manage suppliers’ integrity performance in daily work, and take the initiative to con-duct rights protection measures against defaulting suppliers to safeguard the legitimaterights and interests of the Company.
1.Promote corporate governance according to law
In accordance with the requirements of governing the enterprise according to law underthe new situation, Appotronics promotes the rule of law from various aspects to continu-ously improve the legal awareness of all employees, as to ensure that the Company’srelated work is in compliance with laws and regulations. In 2021, the Company organizeddiversi?ed training on the rule of law, such as special training on trade secret protection,contract management training for sales business, and training of business educationsales team, in order to continuously enhance employees’ awareness of observing lawsand regulations.
Adhere to law and complianceEnsuring compliance with laws and regulations is an inevitable requirement for listedcompanies to achieve a sound and sustainable development. Appotronics strictly abidesby national laws and regulations to promote the integrity culture construction continu-ously, so as to spare efforts to build a compliant and integrity corporate image.
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Lead a Better Lifewith Soul of Scienceand Technology
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Committed to technological innovation
Technological innovation is the soul of the Company’s development. By adhering to thecore position of scienti?c and technological innovation in the overall development of theenterprise, we have promoted innovation and transformation of achievements, deployingthe innovation chain around the industrial chain and laying out the industrial chainaround the innovation chain, so as to accelerate the industrial technology breakthroughsto form a new driving force for development. We also strive to drive comprehensive inno-vation with scienti?c and technological innovation to achieve high-quality development.
1.R&D team building
Appotronics has strong R&D strength. Led by the internationally leading talent in thelaser display ?eld, our core R&D team have attracted a number of R&D staffs graduatedfrom well-known domestic and foreign universities covering optical, electronics, materi-als, physics, mechanical designing, and ?ne manufacturing, etc. In 2021, Appotronics’ R&Dpersonnel reached 456 persons, accounting for 29.14% of the total number of employees,of which 28.73% of them owned master’s or doctor’s degree, providing a solid talentbase for Appotronics’ technological innovation.
3.Leading technology progress
With focuses on national strategic development needs, we devote ourselves to promotethe development of laser display technology by taking the lead in undertaking major na-tional scienti?c research projects, participating in science and technology innovationachievements exhibitions, attending professional forums, related conferences and otherrelated activities held by domestic and foreign authorities, and taking the initiative toprepare national topics, domestic and international standards.From the viewpoint of technology leadership, ALPD technology invented by Appotronicshas become the mainstream technology in the ?eld of laser display, and as the underly-ing key architecture technology, has been cited more than 600 times by industry giantssuch as Philips of the Netherlands, Osram of Germany, Epson of Japan, and NEC etc.
R&D personnel
reached
persons
Lead a Better Life with Soulof Science and Technology
28.73%
Acou
nting
for
owned
master’s
or
doc
tor
’s
degre
e
29.14%
A
ccoun
ting
for
the
t
o
t
al
number
of
employees
2.Independent innovation enhancement
As a leading enterprise in the laser display industry, Appotronics attaches great impor-tance to independent technological innovation and strives to make breakthroughs in cut-ting-edge technologies. The laser digital cinema projector C5 independently developedby the Company, has of?cially passed the Hollywood DCI certi?cation and entered intomass production stage, which is an unprecedented achievement in China’s digitalcinema projection key equipment ?eld, not only breaking the monopoly of foreign enter-prises on movie projectors, but also injecting strong momentum into the domestic laserdisplay industry.The work in this chapter supports the followingSustainable Development Goals of the United Nations:
Appotronics participatesin the 2021World Conferenceon Display Industry
Appotronics takes the lead in undertakingthe “RGB Laser Display Machine ProductModel Line” supported by the National KeyR&D Program of China
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Strengthen quality management
Appotronics attaches great importance to quality management, and always adheres tothe goal of high standards, high quality and high ef?ciency. The Company passed theISO9001 quality management system certi?cation in 2006, and began to introduce theIATF 16949 quality management system in 2021. With great attentions to advance in quali-ty culture philosophy progress, system & process construction, laboratory system con-struction, and quality monitoring system construction, we have achieved the whole-pro-cess quality management, formed the Appotronics-style “zero defect” quality culture, andachieved visualization in the whole process system including production monitoring visu-alization, aging time visualization, and 5S visualization, so as to conduct quality monitor-ing throughout every link of production management.With strengthened quality management, the Company’s products can meet multi-linedisplay solution needs from high-end core devices, household laser intelligent projection,laser cinema projection equipment, large venue laser projectors, laser business educationproducts, laser TV and others, hence we are highly recognized by industry leading userssuch as Xiaomi, Barco, and CFGC, etc.
Ensure product safetyIn order to provide the public with safer and more assured products with better quality,Appotronics has established a DQA laboratory with a safety testing laboratory in strict ac-cordance with relevant international standards, which is fully responsible for productdesign quality assurance and safety assurance. The design quality and safety testing as-surance capabilities of the DQA laboratory have been recognized by various world author-itative certi?cation and testing organizations such as CNAS, UL, TUV, ITS, etc., demon-strating positive actions and effective practices made by Appotronics in building a safer,more reliable world under sustainable development. At the same time, Appotronicsattaches great importance to the safe use of products by customers, and actively popu-larize product function and risk knowledge to domestic and foreign customers by carry-ing out knowledge lectures, special education and training, and other activities, so as toeliminate safety risks and raise product service levels.
ISO9001 quality management systemcerti?cation
Production monitoring visualization
UL License
CNAS laboratory accreditationIEC laboratory-APPOTRONICSTUV License
ITS Certi?cation
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Protect intellectual propertyWith great importance to intellectual property protection,Appotronics spares noeffort to ensure that intellectual property management is in place. In compliance withthe requirements of laws and regulations such as the Trademark Law of the People's Re-public of China, the Patent Law of the People's Republic of China, and the Anti-UnfairCompetition Law of the People's Republic of China, we have established a legal centerconsisting of an intellectual property department and a legal department and formulat-ed the Patent Management Regulations, the Patent Application Review Measures andthe Trademark Management Regulations, through which the intellectual property man-agement system has been gradually established and improved to create high-value pat-ents and widen the patent moat. At the same time, with adherence to openness and co-operation attitudesthe Company steadily promotes patent rights protection and safe-guard legitimate rights and interests to ensure intellectual property rights are notinfringed.In 2021both the number of patent applications and the number of issued patentshave increased compared with the previous year. As of December 31,2021, Appotronicsholds 1434 issued patents, ?led 774 domestic/overseas patent applications of which 641are patent applications for invention and 211 PCT patent applications, resulting in a totalof 2,419 patent applications plus issued patents around the world.
1,434
issued Patentsaround the world
2,419
patent applications plus issuedpatents around the world
PCT patent applications
domestic / overseas patent applications(641 patent applications for invention)
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Improve Customer Ex-perience to Solidify theFoundation of Service
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Strengthen customer service
1.Improve customer experience
With great importance to the actual needs of customers, we have successively launcheddiversi?ed display solutions such as home theatre system, theater projection, large venuelaser projectors, business education large screens, which are widely used in home, theater,command and dispatch, exhibition display, virtual simulation, outdoor lighting, stage per-formance, education and other ?elds, achieving a full scene coverage of laser display.At the same time, under the principle of “maximizing the interests of customers”, wehave established a satisfaction system to explore the improvement and R&D direction ofproducts and services, thereby enhancing our competitive advantages in sales services,supply chain management and product prices. In 2021, the Company’s customer satisfac-tion reached 90 scores, effectively guaranteeing excellent customer service experience.
Insisting on satisfying the needs of customers, Appotronics is committed to providinghigh-quality products in all scenarios. We actively expand product marketing strategieswith focuses on product compliance marketing, so as to provide customers with betterservice experience.
2.Expand marketing channels
With adherence to the multi-channel development strategy, Appotronics strives to shortenthe distance between product brands and users by actively developing online and of?inesales channels at home and abroad, and building a matrix of diversi?ed social platformsto attract customers, so that more people can be impressed by our products, have channelsto purchase our products, and enjoy good product experience. In 2021, Formovie opened
Improve Customer Experience toSolidify the Foundation of Service
Formovie’sof?ine directstores
Overseasof?ine experi-ence hall
The work in this chapter supports the followingSustainable Development Goals of the United Nations:
its ?rst of?ine experience store in Chongqing and several experience stores in Australia,Thailand, Singapore and other places, making a closer product experience available.
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After-sale service policyfor laser service product
Appotronics has formulated different systemssuch as the After-sale Service Policy and theAfter-sale Service Manual of Appotronics, clearlydescribing customers’ requirements on productquality, quantity, transportation method, returnand exchange standards and processing meth-ods into the after-sale service policies, so as tosafeguard customers’ needs of maintenance andgoods return and exchange.
After-sale servicepolicy for large-scale
equipment
According to the spare projector requirement inthe After-Sales Service Policy, for after-sales ser-vices that cannot be completed on site, Appo-tronics will provide spare projectors to custom-ers for guaranteeing the normal operation of thecustomers’ projects. For customer complaints,Appotronics will arrange professional technicalsupport team together with R&D representativesto make rapid responses and consult dif?cultcases, in order to ensure ef?cient handling ofcustomer complaints.
Perfect After-sales ManagementAppotronics adheres its service philosophy of customer focus for a long time. We are eager toprovide customers with a differentiated service experience by listening to their opinions andunderstanding their needs, so as to promote customer growth.
3.Responsible publicity
Focusing on the authenticity and compliance of the Company’s products and services, westrengthen comprehensive product training for publicity channel personnel, introduce prod-uct parameters and services in a true and objective manner, and specify in the contract thatafter-sales and similar terms are restricted and protected by laws and regulations, in order toensure that the product and service information provided to the market and society is com-pliant, truthful and transparent.Hold of?ine product trainingsessions for channel sales staff
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Protect customer informationAppotronics continues to establish and improve the information security system, compre-hensively improving its capabilities on information con?dentiality and data security, and oninformation leakage monitoring.In strict accordance with the Personal Information Protection Law of the People’s Republicof China, Formovie, a subsidiary of Appotronics, has formulated different regulatory systemsand process documents around FengOS user privacy protection such as Information (Data)Management Process System of Formovie, and Information Security Management Code andCon?dentiality System of Formovie, and a new version of user privacy agreement to ensurethat the user data is collected legally and compliantly. At the same time, Formovie activelycarries out training on user personal information protection to continuously improve theawareness of information protection among employees.
Process for dealing with customers’ complaints
UndertakeDemand
Q&A
InterimContainmentActions
Root Cause
AnalysisCorrective
Actions8DReportsCustomerApproval
Respond to requests ef?ciently
We connect customer needs in real time through multiple channels, so that customers canmonitor every detail of our service in real time through the customer service digital platform,thus ensuring a closed-loop process for satisfying service needs. We ?nd problems, learnfrom experience, and improve our services in every communication with customers, whichhelps us understand customer awareness and clarify the real needs of customers throughoutthe service process, and then provide a higher quality customer experience.
After-sale laser large-screen visual signage
Qualify service
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Social and Governance (ESG) ReportSocial and Governance (ESG) ReportSocial and Governance (ESG) Report
Work Together toPromote TalentDevelopment
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1.Adhere to equal employment
We strictly abide by the Labor Law of the People’s Republic of China, the Contract Lawof the People’s Republic of China and other laws and regulations, eliminate the employ-ment of child labor and other forced labor, and combat harassment and abuse. Withgreat attention to the employment of persons with disabilities, we actively create jobs topromote the employment of persons with disabilities, and strive to build a diverse andinclusive talent team. With adherence to equal employment, we treat employees fairlyregardless of different nationalities, races, religions, genders and ages, and create adiverse, inclusive, fair and reasonable work environment for employees. We insist onequal pay for equal work and execute employment contracts with employees in accor-dance with the law.In 2021, despite complicated impact from the COVID-19 epidemic, we actively respondedto the national deployment of “stabilizing employment”. The total number of our em-ployees reached 1,565, up nearly 34% over the number of the previous year, with femaleemployees accounting for 38% of the total, an increase of 3% over the previous year.
Total number of employees
1,565
Male62%
Female
38%
By
g
e
n
de
r
By
ag
e
30 years old
and below38%
51 years oldand over2%
31-50 years old
60%
Financial personnel
Management and administration personnel
R&D personnel
Salesperson
Production personnel
By professional composition
Master’s degree and above
Undergraduate
Junior college and below
By education
Safeguard rights and interests of employees
Appotronics actively advocates and always follows the value concept of “people-oriented”,on the basis of which we formulate comprehensive human resources management speci-?cations focused on the protection of employees’ rights and interests, continues to im-prove the employee management system to deepen the communication mechanism,and is willing to provide every employee with human work environment.
Work Together to PromoteTalent DevelopmentThe work in this chapter supports the followingSustainable Development Goals of the United Nations:
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Support employee development
Appotronics places talent development at a strategic height. We evaluate and select tal-ents by using scienti?c method, cultivate talents in all aspects and at multiple levels, fullytap the potential of employees, improve the professional ability and leadership of employ-ees at all levels, and build career development channels for employees, so as to promotethe continuous growth of employees.
1.Talent development channel
With focuses on employees’ personal growth and career development, we have formulat-ed the Employee Promotion Management Regulations, and established multiple careerdevelopment channels such as management channels, technical channels, professionalchannels, and marketing channels, which have provided effective guidance for the devel-opment of employees. At the same time, the Company has established a position ranksystem that divides positions into ten levels from lowest to highest, with quali?cationstandards including tenure, performance, skills and others stipulated for each level. Withour efforts, every employee may achieve self-development goals at the same time of cre-ating values.
4.Optimize incentive mechanism
With great importance to the common growth with employees and the long-term devel-opment of the Company, we have established a long-term incentive mechanism. In 2021,we granted 25.5 million restricted shares to more than 200 incentive recipients mainlyconsisting of core technical personnel, senior management, members of board of direc-tors and those who have direct in?uence on the Company’s operating performance andfuture development through two restricted share incentive plans, with the purpose tostimulate the enthusiasm, creativity and initiative of employees and help Appotronics’ op-eration continue to improve.
FamilyCareBirthdayPresentEmployeeBene?tsFestive
Gifts
Recreational
ActivitiesHelp Handling
HouseholdRegistration
TalentServicesInnovationAtmosphere
TeamBuildingFreeShuttle BusPreferentialSupport onTalent ResidenceFree PhysicalExamination
保
保保
Insurance andHousing Fund
PaidLeave
FlextimeOvertime Meal
Allowance
2.Improve communication
We attach great importance to the demands and opinions of employees, and continue toimprove the channels and mechanisms for communication. At the company level, we es-tablish a series of formal and informal communication methods such as trade union em-ployee representative conference, quarterly employee communication conference, demo-cratic life meeting, new employee colloquium, performance counseling and evaluationcommunication, so as to actively encourage our employees to participate in corporatemanagement, and safeguard employees’ rights to information and participation.
3.Safeguard salary and bene?ts
We are committed to establishing a sound compensation and welfare system, and pro-vide reasonable and competitive compensation in the industry by combining guaranteedincome and incentives in accordance with the basic idea of “adapting to the market envi-ronment, re?ecting the value of talents, and playing an incentive role”. In addition to thebasic salary, we also provide employees with incentive bonuses (pro?t sharing bonus,patent bonus, sales bonus, etc.) and performance bonuses (for outstanding workers, quar-terly/annual honorary awards, etc.). At the same time, in addition to the statutory “?vesocial insurances and one housing fund”, Appotronics also purchases commercial insur-ance for all employees, including accident insurance, death due to illness, and majorillness. Besides, Appotronics has formulated and issued the Employee Care and WelfareManagement Regulations to implement various paid leave systems and built a compre-hensive welfare guarantee mechanism, so as to maintain employees’ enthusiasm forwork.
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2.Improve employees’ abilities
We have established a systematic and complete training system, striving to build trainingoperation system, training support system and training management system with a fullcoverage from the Company’s executives to new employees, and committed to support-ing the Company’s business development and employees’ ability improvement, and ac-cumulating the Company’s organizational capacity. In 2021, the Company organized atotal of 574 of?ine training activities, with about 5,500 participants trained and 12,000training hours spent in total.
Training system structure of Appotronics
Knowledge Expansion:
“Three-level Curriculum System” of AppotronicsThe Company has comprehensively implemented the “three-level curriculumsystem” which integrates curriculums at the company level, department leveland position level to provide a learning and exchange platform for employeesthrough multi-level and multi-perspective training, so as to cultivated all-roundtalents required by our business, thus achieving a win-win result of corporatedevelopment and personal development.
Company-level curriculum systemWith reference to the Company’s development goals and competitive strategies, itis determined that the company-level curriculum system should focus on keyand core talent cultivation with cultural quality courses of general studies supple-mented. Examples of company-level curriculum include: Star Light/SharpLight/Polar Light curriculum system, newcomer training camp (social recruit-ment) curriculum system, TTT curriculum system, Appotronics lecture curricu-lum system, and various empowerment special training camps (general educa-tion quality & cultural courses).Department-level curriculum systemDepartment-level curriculum is determined by the Company after a training analy-sis in accordance with the development trends of technology and managementcombining with the Company’s development goals and competitive strategies.
Position-level curriculum systemThe training curriculum system is determined according to the position competen-cy should focus on the knowledge and skills that should be mastered by employeesin various positions at all levels with the personal growth courses for employeesintegrated. Any employee who lacks knowledge and skills in response to job trans-fer, job promotion, and performance appraisal is required to receive position skilltraining curriculums based on his position quali?cations and personal abilities.
Three-levelcurriculumsystem
Trainersystem
Resource
dataconstruction
Demand analysis program planningorganization and implementation evaluation and feedback
Training management separation systemIT platform construction/Training management system
Training management position
Organization development supportPersonal improvement supportOrganizational capacity accumulation
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Appotronics Star LightTalent Training
Appotronics Special TrainingCamp for R&D ManagementCapability
Appotronics NewcomerTraining Camp
1.Support for employees in dif?culty
We have formulated the Management Measures for the Trade Union’s Love SupportFund, according to which employees who are hospitalized due to illness or supper fromsudden accidental injuries, natural and man-made disasters resulting in dif?culties totheir families will be given relief funds amounting to RMB 2,000 to 5,000 by the tradeunion as appropriate. Since the promulgation of the measures, we have helped nearly 10employees and their families in total.
2.Balance work and life
In order to balance employees’ work and life, we have organized a number of leisure andentertainment activities to enrich employees’ daily life and enhance their sense of be-longings and happiness. In 2021, when the regional epidemic situation improves, were-adjusted and started association club activities such as bands, dance, yoga, badmin-ton, etc., and organized more than 10 large-scale company-level welfare activities tocreate a warm working atmosphere.
Family Day
Pay attention to employee careWith adherence to employee-oriented, Appotronics cares for the work and life of every em-ployee, pays attention to solving the problems that employees care about, and improves theworking environment for employees. We actively carry out entertainment and leisure ac-tivities according to the employees’ needs, and provide irregular condolences to employ-ees in ?nancial dif?culties, so that employees can truly feel the warmth of “home”.
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CINEAPPO organizes employees toparticipate in the marathon
Staff Band :Optical Waveguide
Organize Women’s Day activities
Participate in Shenzhen enterprisebasketball competition
Occupational health and safetyWith great attentions to the physical and mental health of our employees, we have estab-lished a comprehensive employee health prevention system. We regularly organize em-ployees to participate in annual occupational health examinations every year, establishemployee health ?les, and pass the international standards of environment, health andsafety (EHS) and OHSAS18000 certi?cation, so as to safeguard employees’ occupationalhealth in maximum, guide employees to work and live happily, and promote a goodatmosphere of harmony and progress within the Company. In 2021, there was zero occu-pational disease deaths and work-related fatalities.
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| 08 | |
Join hands to SeekWin-win CommonDevelopment
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Cooperation and mutual bene?t
As an industry leader in the laser display industry, Appotronics actively carries outcross-border cooperation to build a wide range of cooperation platforms, and strives tocooperate sincerely with important cities, key enterprises, scienti?c research institutions,and ?nancial institutions for mutual bene?ts and common development, so as to supportfor the sustainable development of economy and society.
1.Cooperation with cities
We actively promote strategic cooperation with important cities in China by virtue of theadvantages of our own products in order to serve the society, energize and invigorateeconomic development of cities, and help create characteristic business cards. In 2021,Appotronics cooperated with Chongqing, Chengdu, Hangzhou, Xining and other cities tojointly explore more excellent light and shadow effects, as to display the charm of Appo-tronics’ core technology.
2.Cooperation with enterprises
Giving full play to respective professional advantages, we have explored a more ef?cient,pragmatic and innovative cooperation model with relevant industry leading enterprises,and jointly developed rich application scenarios of laser display, thus continuously en-hancing our competitiveness in the industry.In 2021, we reached a strategic cooperation with Airbus, and demonstrated laser productprototypes that can be applied in the ?eld of civil aviation display in Zhuhai Airshow forthe ?rst time; we cooperated with Shenzhen Wenheyou in the laser display large screensolution to commence a brand new attempt of combining the upgrade of large consumerbrands with technological elements; and we reached a strategic cooperation with Green-joy, a famous golf simulator service provider, in the ?eld of indoor golf solutions.
Join hands to Seek Win-winCommon Development
Support the 2021 ChongqingLighting Art Season
Support the 15th FIRST Youth Film Festival
Demonstration of laser product prototypesin Zhuhai Airshow
Cooperate with Wenheyou to createa better lifestyle
Reach strategic cooperation with Airbus
The work in this chapter supports the followingSustainable Development Goals of the United Nations:
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3.Cooperation with universities
We work with cooperative universities and research institutes to further promote theintegration of production, education, research and application, so as to promote the im-plementation of cooperation projects, and strive to achieve more cooperation results. In2021, the Company, as the title sponsor, funded the Photoelectric Design Competition ofShenzhen University in order to support college students to explore and research photo-electric science.
Improve industry developmentAppotronics is working together with partners to promote the healthy growth of theindustry by actively promoting the industry standard leadership and construction, carry-ing out various channels of industry expansion and communication, assuming the role ofexpert in the ?eld of laser display, proactively facilitating the establishment of soundindustry standards for laser display, and providing suggestions and recommendations forthe development of the industry.In 2021, we participated in the formulation of the ?rst domestic group standard of Techni-cal Requirement for Elderly-oriented Design of Smart TV to promote smart TVs to meetthe needs of the elderly in the operation and playback service stages in a better way; wewere invited to participate in the third discussion meeting organized by China VideoIndustry Association for the formulation of the group standard of LED Smart ProjectorTechnical Speci?cation, where we gave professional opinions and suggestions around thecore technical problems of LED smart projection.At the same time, Appotronics actively promotes \advanced standardization work modelin the industry and is committed to fostering more enterprises to jointly promote thetransformation of scienti?c and technological achievements. In 2021, we have been shar-
Support the Photoelectric Design Competition of Shenzhen University
Build a chain of responsibilityAppotronics attaches great importance to cooperation with suppliers and strategic part-ners. We actively implement clean and responsible procurement, choose to purchase en-vironmentally friendly raw materials, actively deploy core areas and links of the industrialchain and deem them as an important component of the Company’s production and op-eration. By strengthening the management of suppliers’ corporate responsibility andstandardizing procurement transactions, we have improved sustainable competitiveness ofthe supply chain. We are working together with our suppliers to develop and build a respon-sible value chain. In 2021, the Company’s responsible procurement proportion was 100%.
Hold a core partner conference
Organize core partners to visit the productionlines of light generator and complete projector
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Deepen international layoutRelying on the world’s leading laser display technology, Appotronics actively implementsthe “Belt and Road” initiative to promotes China's ?lm projection technology with inde-pendent intellectual property rights in the international market, and is committed to pro-viding “global high-end cinema solutions”, so as to boost regional economicdevelopment and make contributions to the promotion of regional innovation and devel-opment.Meanwhile, we have made a breakthrough in overseas business educational markets andenter into oversea markets such as Turkey, UK, and France. In terms of household productbusiness, we have cooperated with overseas sale channels to ensure that we can provideof?ine venues for users to experience Formovie’s products. For example, Formovie’sof?ine experience halls have been available in Australia, Thailand and Singapore.
Formovie participated in LED ProjectorStandard Formulation Seminar
Share Shenzhen standard certi?cationexperience with regulatory authorities
ing our experience in the standard rules of new technology and scienti?c innovation withShanghai Municipal Bureau of Market Supervision, Shenzhen Municipal Bureau of Super-vision, Shenzhen Standard Certi?cation Union, ZTE, Sangfor and other regulators andpeer companies, as to provide related enterprises with guidance for the transformation ofscienti?c and technological achievements and the formulation of standards.
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Green LightProjection to ClearWater and Blue Sky
Pay attention to environmentalprotection managementIn strict compliance with requirements in the Environmental Protection Law of the Peo-ple’s Republic of China and other laws and regulations, Approtronics strengthens envi-ronmental management in multiple dimensions, such as organization, supervision andassessment, statistical accounting of indicators, education and training, hidden dangerinvestigation and control, and accident emergency response plans, as to minimize theimpact of our operations on the environment. In 2021, we have no environmental viola-tions, with the total emissions of waste gas and wastewater not exceeding the standards,and all discharge indicators achieving the 100% compliance rate.
Develop environmental-friendly products
Appotronics attaches great importance to developing green products, and continues toprovide users with energy-saving, green and environmentally friendly products in strictaccordance with relevant international and domestic standards. The Company’sproducts have passed the national mandatory CCC certi?cation, the national CECP certi-?cation, the overseas CB/UL/ETL/TUV certi?cation for product safety, the overseas FC-C/CE-EMC license for electromagnetic compatibility and the US FDA license, thus guaran-teeing the products’ compliance and high quality.
Green Light Projection toClear Water and Blue Sky
Case:Support energy saving and emission reduction throughAppotronics’ ALPD Laser Projection SolutionAppotronics has always attached great importance to the research and devel-opment of environmental-friendly products, and is committed to providingcustomers with product solutions with environmental bene?ts. As of December31, 2021, more than 25,000 sets of CINEAPPO ALPD
?laser projection solutionshave been installed in total. Through continuous R&D and upgrading of projec-tion light sources, Appotronics has brought its cinema partners a “win-win”solution with economic and environmental bene?ts both. According to incom-plete statistics, ALPD
?laser projection solutions ran 188 million hours in total,saving a total of 338 million kWh power consumption, and reducing about 148million cubic meters of carbon dioxide emissions arising from power genera-tion, which established an industry model for energy conservation and emis-sion reduction to achieve the “carbon neutrality” goals.
Saving a total of338 million kWh power consumption
Reducing about148 millioncubic meters of carbon dioxide emissions arising from power generation
More than25,000 sets of CINEAPPOALPD? laser projection solutions have been installed in total
ALPD? laser projection solutions ran188 million hours in total
The work in this chapter supports the followingSustainable Development Goals of the United Nations:
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Formovie “trade-in” project
2.Resource recycling
Appotronics attaches importance to improving the ef?ciency of resource use and ensuresthe resources are used ef?ciently, so as to reduce the effect of production and operationto environment. In 2021, Formovie launched the “trade-in” function through its mini pro-gram, which may help improve the overall energy ef?ciency of home appliances, reduceenvironmental pollution, and use recyclable steel, non-ferrous metals, plastics and rubberin waste home appliances fully and effectively, thus promoting the development of recy-cling economy. This measure was conducive to improving the ef?ciency of energyresources utilization, reducing environmental pollution, and promoting energy conserva-tion, emission reduction and recycling economy development.
Practice green operation
1.Energy saving and consumption reduction in production
Under the national trend of “carbon dioxide emission peaking” and “carbon neutrality”,laser display, as an environmental-friendly technology, has attracted great attentions. Fo-cused on innovative production technology, the Company has achieved low-carbon andenvironmental-friendly production by improving production ef?ciency and process. In2021, for the Company’s Shenzhen Bao’an Plant, the average water consumption andthe average electricity consumption per product decreased by 33.33% and 28.61% on ayear-on-year basis respectively, and the working hours for manufacturing a product de-creased by 18%.
Appotronics attaches great importance to the implementation of green operation philos-ophy, and strictly implements various measures for energy conservation and consump-tion reduction to continuously improves the ef?ciency of resource utilization, so as to becommitted to creating a green and low-carbon future with active respond to climatechange.
the average water consumption per productdecreased by
33.33% on a year-on-year
the average electricity consumption per productdecreased by
28.61% on a year-on-year
The working hours for manufacturinga product decreased by18%
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Publicity and guidance on energy saving and recycling in of?ce areas
3.Deal with climate changes
With adherence to the green and low-carbon development path, Appotronics actively ac-cepts the extensive and profound economic and social systemic transformation related tocarbon peaking and carbon neutralization, in order to reduce resource and energy con-sumption and carbon emissions during the construction and operation process. We buildthe Headquarter Building of Appotronics in accordance with the Green ConstructionSystem, promote the application of energy-saving equipment and materials continuouslyto improves energy-saving standards in the construction ?eld, and strive to provide morehigh-quality energy-saving green building products, so as to contribute to mitigate andrespond to global climate change.Advocate green of?ce
A journey of a thousand miles begins with a single step. We practice the green andlow-carbon philosophy, vigorously advocate the corporate culture of diligence, thrift,green and low-carbon, and strive to create a corporate atmosphere of energy saving andconsumption reduction. We also guide our employees to integrate the concept of envi-ronmental protection into their daily work, calling on employees to save energy, water,electricity, paper and to take low-carbon travel, hence every employee is aware of thegreen development philosophy.In 2021, the Company established an online work platform system, through which we co-operated with I-Yin Technology to conduct electronic printing sheet for contract seal, sothat we eliminated the printing link and saved paper costs effectively. Meanwhile,through the SaaS cloud service operation model in the Company’s ERP/CRM system, weachieved an 11% reduction in overall energy saving and emission reduction for the internaldata center in terms of server energy consumption, storage service energy consumption,air conditioning energy and emission, and network energy consumption.
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2021 Environmental2021 Environmental2021 EnvironmentalSocial and Governance (ESG) ReportSocial and Governance (ESG) ReportSocial and Governance (ESG) Report
Social and Governance (ESG) ReportSocial and Governance (ESG) ReportSocial and Governance (ESG) Report
Work Together to Builda Friendly Communitywith the Charm of Laser
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Engage in charity and public welfare deeply
With adherence to engage in social welfare deeply, Appotronics continues to promote thepopularization of scienti?c knowledge, pay attention to social disadvantaged groups, andactively conveys love and warmth to the society, striving to realize the integration of cor-porate business value and social value to gives back to the society with practical actions.
1.Popularize scienti?c knowledge
Sticking to the path of focusing on “technological innovation”, we are committed to cre-ating a better life for the people through technological innovation and progress. In 2021,the Company continued to support Shenzhen government for the urban strategic con-struction of a “child-friendly city”, receiving 5 batches of 97 visits from the Children’s PublicWelfare Visit Project of the Children’s Science Alliance in Nanshan District, Shenzhen.
2.Care for special groups
We vigorously promote the traditional virtues of the Chinese nation, actively advocate allemployees to offer care, help and condolence to the elderly, the disabled, the left-behindchildren and other special groups, so as to convey the public welfare concepts and ac-tions of Appotronics.
Support the Children’s Public Welfare Visit Project of the Children’s Science Alliance
Work Together to Build a FriendlyCommunity with the Charm of LaserThe work in this chapter supports the followingSustainable Development Goals of the United Nations:
Case: CINEAPPO developed the “Constant Love Action” publicwelfare activityFrom October to November 2021, CINEAPPO launched the internal public wel-fare activity named as “Constant Love Action - One Million Families with Love”with the main purpose of “?nding loving parents to knit sweaters for children withdisabilities”, advocating employees and their families to knit sweaters suitable forchildren aged 10-15, as to convey the love of Appotronics to children in need.
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Prevent and control the Covid-19epidemic actively
In order to protect the health and safety of all employees and help local governmentsprevent and control the Covid-19 epidemic, Appotronics continues to play the leading roleof the epidemic prevention and control project team headed by the CEO, and promotethe epidemic regulation team, the information and statistics team, the environmentaldisinfection and epidemic prevention materials team, and the telecommuting supportteam to carry out their own duties, so as ensure the Company’s epidemic preventionworks orderly. As of July 2021, the Company has basically completed the vaccination of allemployees, which effectively guarantees the Company’s resumption of work and produc-tion and safeguards employees’ health.
Contribute to rural revitalizationIn response to the national policy of “developing culture in rural areas”, Appotronics hasdeveloped two types of laser light cinema projection equipment to support ?lm projec-tion in rural areas, as they can be used for mobile ?lm projection or ?xed location projec-tion in vast countryside, so as to realize rural cultural revitalization by using advancedlaser display technology. At the same time, the Company actively supports and guidesyoung people to start their own businesses and create employment appropriately byvirtue of its own industry resources and advantages, and makes contributions to the es-tablishment of adolescent creative space which acts as a local service site for the youngin Qianxi City, Guizhou Province, as to help revitalize rural talents.
Appotronics made contributions to the establishment of adolescent creative space in QianxiCity, Guizhou Province
Organize company employees to vaccinate centrally
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The report is mainly prepared in accordance with the GRI-Standards issued by the GlobalReporting Initiative (GRI), and all information disclosed in this report is the information of2021 unless as otherwise speci?ed.
Index
1.General standards
GRI 102 General Disclosures
1. Organizational pro?le
102-1 Name of the organization
Disclosure itemsunder GRI Standard indicators
Index
Appendix
Appotronics Corporation Limited102-2 Activities, brands, products,and services
P11~12
P40
P66
P66-P73
P79~80
102-3 Location of headquarters
20-22/F, High-Tech Zone Union Tower,
No.63, Xuefu Road, Nanshan District,
Shenzhen, Guangdong Province102-4 Location of operations102-5 Ownership and legal form
20-22/F, High-Tech Zone Union Tower,
No.63, Xuefu Road, Nanshan District,
Shenzhen, Guangdong Province
The company is a group company
limited by shares listed on the
Shanghai Stock Exchange.
No major changes
102-6 Markets served102-7 Scale of the organization
102-9 Supply chain102-8 Information on employeesand other workers102-10 Signi?cant changes to the or-ganization and its supply chain
102-11 Precautionary principle orapproachDisclosure itemsunder GRI Standard indicators
Index
102-13 Membership of associations102-14 Statement from senior deci-sion-makers102-15 Key impacts, risks and op-portunities102-16 Values, principles, standardsand norms of behavior
102-12 External initiatives
102-44 Key topics and concerns raised
102-40 List of stakeholder groups
102-18 Governance structure102-19 Delegating authority102-20 Executive-level responsibilityfor economic, environmental, andsocial topics102-21 Consulting stakeholderson economic, environmental, andsocial topics102-22 Composition of the highestgovernance body and its commit-tees
102-45 Entities included in the consol-idated ?nancial statements
2. Strategy
3. Ethics and integrity
5. Stakeholder engagement
6. Reporting practices
4. Governance
See the Appotronics’s2021 Annual Report
102-42 Identifying and selectingstakeholders102-43 Approach to stakeholderengagement
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P27-P30P32-P33P80-P81P5-P7P37-P38
P13P27P27P27P27
P32-33P32-33P30-33P27-P30P3-P4
2.Economy
P89
GRI 201 Economic Performance
201-1 Direct economic value generatedand distributed
201-3 De?ned bene?t plan obligationsand other retirement plans
201-2 Financial implications and otherrisks and opportunities due to climatechange
See the Appotronics’s 2021Annual Report
102-46 De?ning report contentand topic boundariesDisclosure itemsunder GRI Standard indicators
Index
Disclosure itemsunder GRI Standard indicators
Index
102-48 Restatements of information
102-53 Contact point for questionsregarding the report102-54 Claims of reporting in accordancewith the GRI Standards
The last year’s social responsibilityreport was released on April 24,2021.
No external assurance has beencarried out for this report
102-47 List of material topics102-49 Report changes102-50 Reporting period102-51 Date of most recent report102-52 Reporting cycle
102-55 GRI content index102-56 External assurance103-1 Explanation of the materialtopic and its boundary103-2 The management approachand its components103-3 Evaluation of the managementapproach
3.Environment
GRI 301 MaterialsGRI 302 Energy
GRI 303 Water and Ef?uents
Disclosure itemsunder GRI Standard indicators
IndexGRI 103 Management Approach
Disclosure itemsunder GRI Standard indicators
Index
100%202-2 Proportion of senior managementhired from the local community
205-1 Operations assessed for risksrelated to corruption205-2 Communication and training aboutanti-corruption policies and procedures
302-1 Energy consumption within theorganization302-2 Energy consumption outside ofthe organization
303-1 Interactions with water as a sharedresource303-2 Management of water dis-charge-related impacts
204-1 Proportion of spending on localsuppliers
GRI 202 Market PresenceGRI 203 Indirect Economic ImpactsNot applicableGRI 204 Procurement PracticesGRI 205 Anti-Corruption
GRI 206 Anti-competitive Behavior
See the Appotronics’s 2021
Annual Report
See the Appotronics’s 2021
Annual Report
NA
P45-P46201-2 Financial implications and otherrisks and opportunities due to climatechange
Not applicable
Not yet announced.
P89-P90
P85-P86
P15
P15302-3 Energy intensity302-4 Reduction of energy consumption
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NA
NA
P3-P4, P27-P30P27-P30P3-P4P3-P4P3-P4P3-P4P3-P4P3-P4P97-P104
P27-P30P27-P33P27-P33
Disclosure itemsunder GRI Standard indicators
Index
305-6 Emissions of ozone-depletingsubstances (ODS)
303-3 Water withdrawal
305-1 Direct GHG emissions
303-5 Water consumption
305-7 Nitrogen oxides (NOX), sulfuroxides (SOX), and other signi?cantair emissions
303-4 Water discharge
The Company has not dischargedwater and ef?uents directly in allplaces where its of?ces located.NAGRI 304 Biodiversity
P85-P86
P88
P79
GRI 306 Ef?uents and Waste
GRI 307 Environmental Compliance
305-2 Indirect GHG emissions305-3 Other indirect GHG emissions305-4 GHG emissions intensity
The Company has not made any reg-ulations on this matter.
Disclosure itemsunder GRI Standard indicators
Index
403-5 Worker training on occupationalhealth and safety
404-1 Average hours of training per yearper employee
402-1 Minimum notice period regardingoperational changes401-3 Parental leave
403-3 Workers with high incidence orhigh risk of diseases related to their oc-cupation
404-2 Programs for upgrading employ-ee skills and transition assistance pro-grams404-3 Percentage of employees receiv-ing regular performance and career de-velopment reviews
All employees have received perfor-mance reviews on a quarterly basisand career development reviewsregularly.For the composition of governancebody members, please refer to theAppotronics’s 2021 Annual Report.
401-2 Bene?ts provided to full-timeemployees that are not provided totemporary or part-time employees
403-2 Types of injury and rates of injury,occupational diseases, lost days, andabsenteeism and others
405-1 Diversity of governance bodiesand employees
GRI 404 Training and Education
GRI 405 Diversity and Equal Opportunity
GRI 406 Non-discrimination
GRI 403 Occupational Health and SafetyGRI 402 Labor/Management Relations
403-6 Promotion of worker health403-9 Work-related injuries
The company has no complaints re-garding incidents of discrimination.406-1 Incidents of discrimination andcorrective actions taken
P67
P73P73P73P73P73P68-P71P68-P71
P67-P68
305-5 Reduction of GHG emissions
GRI 305 Emissions
GRI 308 Supplier EnvironmentalAssessment
There is no violation of environmentallaws and regulations.306-2 Total amount of waste bytype and disposal method
308-2 Negative environmental impactsin the supply chain and actions taken
4.Society
Disclosure itemsunder GRI Standard indicators
Index
GRI 401 Employment
401-1 New employee hires and employeeturnover
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NA
P87
NANANANAP15NA
P65-P66
The Company prohibits employingchild labor.The Company prohibits and doesnot support any form of forced orcompulsory labor.
The Company respects and protectsdifferent rights and interests of em-ployees, and actively promotes em-ployee bene?ts in strict accordancewith relevant laws and regulations.
Disclosure itemsunder GRI Standard indicators
Index
408-1 Operations and suppliers at sig-ni?cant risk for incidents of child labor
414-2 Negative social impacts in thesupply chain and actions taken
416-1 Assessment of the health andsafety impacts of product and servicecategories
409-1 Operations and suppliers at sig-ni?cant risk for incidents of forced orcompulsory labor
The Company’s business has no actualor potential negative impact on thecommunity in which it operates.413-2 Operations with signi?cant actualand potential negative impacts on localcommunities
417-1 Requirements for product andservice information and labeling
GRI 414 Supplier Social Assessment
GRI 416 Customer Health and Safety
417-2 Incidents of non-compliance con-cerning product and service informa-tion and labeling
The Company has no violations re-garding this matter.
GRI 417 Marketing and Labeling
GRI 418 Client Privacy
GRI 409 Forced or Compulsory Labor
GRI 410 Security Practices
GRI 408 Child Labor
GRI 407 Freedom of Association andCollective Bargaining
The Company has been encounteredwith no breaches of customer priva-cy and losses of customer data.The company has not violated anylaws and regulations in the socialand economic area.
Disclosure itemsunder GRI Standard indicators
Index
NA
GRI 411 Rights of Indigenous Peoples NA
NA
GRI 412 Human Rights AssessmentGRI 413 Local Communities
NA
GRI 415 Public Policy
418-1 Substantiated complaints con-cerning breaches of customer privacyand losses of customer data419-1 Non-compliance with laws andregulations in the social and economicareaGRI 419 Socioeconomic Compliance
104103
Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report
P79-P80
P52
P61-P62
Your information
Multiple-choice questions(please tick √ in the corresponding position)
1.Your overall assessment of the 2021 ESG Report of Appotronics is:
□ Good □ Fair □ To be improved □ Unknown
2.What do you think of Appotronics’ performance on customer service?
□ Good □ Fair □ To be improved □ Unknown
3.What do you think of Appotronics’ performance on technological innovation?
□ Good □ Fair □ To be improved □ Unknown
4.What do you think of Appotronics’ performance on industry development?
□ Good □ Fair □ To be improved □ Unknown
5.What do you think of Appotronics’ performance on workforce building?
□ Good □ Fair □ To be improved □ Unknown
6.What do you think of Appotronics’ performance on public welfare?
□ Good □ Fair □ To be improved □ Unknown
7.What do you think of Appotronics’ performance on environmental protection?
□ Good □ Fair □ To be improved □ Unknown
8.Do you have any other comments on Appotronics’ ESG work?
FeedbackThank you very much for taking time out of your busy schedule to read the 2021 ESGReport of Appotronics. In order to improve the activities of Appotronics in the environ-mental, social and governance areas, and further enhance the Company’s ability on sus-tainable development with closer communication with all walks of life, we sincerely lookforward to your valuable comments and suggestions towards our work and reports
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Appotronics
2021 EnvironmentalSocial and Governance (ESG) Report
2021 EnvironmentalSocial and Governance (ESG) Report