MONTAGE TECHNOLOGYSTOCK CODE：688008.SH
2022 Environmental,
Social and Governance (ESG) Report
Content
Innovation OrientationQuality ManagementClean TechnologyIntellectual PropertyUser Experience
Talent AttractionTalent DevelopmentHealth and SafetyEmployee Care
Climate ChangeMitigation
Environmental FootprintReduction
Social Welfare and Charity
InnovationEmpowermentand QualityService
Supply ChainManagement andIndustryCooperation
EmploymentManagement andHarmoniousWorkplace
GreenDevelopmentand SocialContribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Governance StructureRisk ManagementBusiness EthicsInformation DisclosureInformation SecurityESG Governance
Supply ChainManagement
Responsible MineralsSourcing
Industrial Synergy
About This ReportLetter from our ChairmanAbout Montage Technology
Appendix I: Key Performance IndicatorsAppendix II: GRI Content Index
CorporateGovernance
About This Report
Montage Technology Co., Ltd., together with its subsidiaries (hereinafter "the Company", "we" or "MontageTechnology") is here to release the first environmental, social and governance report (hereinafter the"Report" or "ESG Report"), which aims to expound the Company's management measures and work resultsin respect of environmental, social and governance (hereinafter "ESG"), and objectively disclose theCompany's management and achievements in sustainable development to respond to the concerns ofstakeholders and the public.
Overview
Scope and Boundary of the ReportThis report involves the information and data from January 1, 2022 to December 31, 2022 (hereinafter “thereporting period" or "this year"), with some of them traced back to and before 2021, or extended to 2023.This report covers the relevant information and data of Montage Technology and its subsidiaries. Fordetails of the Company's business, please refer to the 2022 Annual Report.
Basis of PreparationThis report is prepared with reference to the (hereinafter "GRIStandards") released by Global Sustainability Standards Board (GSSB), and the United Nations’ SustainableDevelopment Goals (SDGs).
GRI Sustainability Reporting Standards
Acknowledgement and ApprovalThis Report has been confirmed by the management and approved by the board of directors on April 27,2023.
Report Access and ContactThis report is published in electronic format and is available on the Shanghai Stock Exchange website(http://www.sse.com.cn) and the Company's website (https://www.montage-tech.com/). If you have anycomments or suggestions on the Company's environmental, social and governance disclosures andperformance, please contact us in the following ways:
Email：ir@montage-tech.comTel：021-5467 9039
Source and Reliability AssuranceThe information and data disclosed in the Report derive from the statistical reports and formal documentsof the Company, which have been reviewed by relevant departments. The Company confirms that there isno misstatement or misleading representation contained in the Report and takes responsibility for thetruthfulness, accuracy and completeness of the contents of the Report. Unless otherwise stated, all themonetary amounts in the Report are denominated in CNY.
The contents of the Report have been determined in accordance with a systematic procedure. Therelevant procedures include: forming working groups, identifying key stakeholders, conductinginterviews with the stakeholders, identifying and prioritizing material ESG-related issues, establishing aKPI assessment system, deciding the scope of ESG Report, collecting relevant materials and data,determining the framework, preparing and designing report, reviewing by department leaders andsenior management group, etc.
Report Preparation Process
*This is translated from the Chinese version of the ESG Report. If there is any conflict between the Chineseand English versions, the Chinese version shall prevail.
GRI Sustainability Reporting Standards
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
0202
Facing the complex and severe external environment in the past year, MontageTechnology has always adhered to the corporate culture of "accelerating withfocus and innovation" and the corporation mission "to make data transfermore efficient and data computing more secure", and has been deeplyengaged in the two fields of interconnect chips and data-processing chips.With continuous product innovation, business expansion, and substantialgrowth in business performance, Montage Technology has evolved from achampion in a niche market to a world-leading data-processing andinterconnect IC design company.In the field of interconnect chips, our product selection is expanding andincreasingly competitive. On the one hand, we continue to consolidate ourposition as a global industry leader in our areas of expertise and take the leadin developing international standards for DDR5 memory interfaces, and wasthe first to release several new-generation products of DDR5 memory interfacechips. On the other hand, Montage Technology leads the way in cutting-edgetechnology of Compute Express Link? (CXL?) and released the world's first CXLMemory eXpander Controller (MXC) in May 2022. What makes us especiallyproud is that MXC was released at the most difficult time, when the epidemicwas raging in Shanghai and the project team was stationed at the Companyfor two months and overcame many challenges. The product was lateradopted by Samsung Electronics and SK hynix for the development of CXLmemory products. In addition, in the past year, we have also releasedengineering samples of DDR5 CKD and PCIe 5.0/CXL 2.0 Retimer, which isregarded as a significant milestone of the Company. The interconnect chipproduct line achieved a revenue of CNY 2,734 million in 2022, setting a newrecord.In the field of data-processing chips, we have made important progress in thelayout of two strategic products: Jintide? CPU and AI chip. At present, theCompany has released the 4th Gen Jintide? CPU. In 2022, the sales revenue ofthe related product line reached CNY 940 million, maintaining a steady growth.Our first-generation AI chip adopted the "near-memory computing"architecture, which is the most complex product developed so far. The R&Dteam grasped the opportunity, completed the tape-out and successfully lit itup.
Montage Technology's achievements rely on the joint efforts of all employees.In the past three years, the Company's headcount has grown steadily, nearlydoubling from 334 at the end of 2019 to 641 at the end of 2022. Meanwhile, weare pleased to see that the senior staff are gaining more experience, while thenew employees are also growing rapidly. In addition, many of the younggraduate employees have become key members of our team.With such an excellent workforce as the foundation, we will be able to achievean "acceleration" in business performance naturally as long as we identify theproper strategic course, insist on "focus", and embrace "innovation". Inaddition, the Company adheres to the development strategy of independentinnovation. In the past five years, the Company has developed rapidly andachieved substantial growth in business performance. The operating revenueand net profit have both reached a new record high. Among them, theoperating revenue increased from CNY 1.2 billion in 2017 to CNY 3.7 billion in2022. Especially in the last three years, the operating revenue of the Companywas respectively CNY 1.8 billion, CNY 2.6 billion and CNY 3.7 billion, showing astrong momentum of annual growth. In addition, the net profit of 2022 wasCNY 1.3 billion, 3.7 times that of 2017.The Company upholds the spirit of excellence in ingenuity, regards innovationas the driving force, and is committed to providing customers with high-performance and low-power chip solutions, in order to better suit thecustomers' demands and support the Company's extraordinary growth.Meanwhile, the Company is committed to the interests of the stakeholders, andtakes adherence to business ethics and compliance with laws and regulationsas the basic guidelines for business operations. The Company establishes acompliant and harmonious operating environment, and constantly strengthensbusiness risk management to ensure the healthy and sustainable developmentof the Company's business.Our employees are strategic resources to realize enterprise innovation anddevelopment. We give full play to Montage's strengths, establish a soundtalent management system, and adhere to the promotion of talentglobalization. The Company has built a three-dimensional training system formanagement and employees at all levels and strives to provide professional
training courses and career development opportunities to enhance thecompetitiveness of employees.In terms of the environment, the Company keeps up with the nationaldevelopment strategy and helps achieve thedual carbon goals. Based onthe concept of green development, we control emissions in the process ofoffice operation, reduce the impact on the environment, and promote greenand low-carbon sustainable development. As an IC design enterprise, theCompany reduces the energy consumption of the industry through R&Dinnovation, contributing to the goal of a "Green Earth". To achieve theCompany's coordinated and sustainable development with society andenvironment, we exercise our social responsibility by giving back to societyand organizing various voluntaryactivities, such as establishing acharitable foundation, engaging in awide range of charity services likeeducation, blood donation, andfighting against epidemics.Looking ahead to 2023, the digitaleconomy will boom. As an IC designenterprise that provides hardwaresupport for the digital economyinfrastructure, the Company will focuson the field of data-processing andinterconnect chips, and provide high-performance, high-security, andhigh-reliability products for the digitalinfrastructure through continuousR&D innovation. Montage Technologywill be dedicated to the contributionof the high-quality development ofthe global digital economy!
""
Letter fromOur Chairman
Adheringto the spirit ofcraftsmanship and driving extraordinarygrowth with constant innovation
Dr. Howard YangChairman of the Board/CEO ofMontage Technology
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Founded in 2004, Montage Technology is a leading data-processing and interconnect IC designcompany dedicated to providing high-performance and low-power IC solutions for cloud computingand artificial intelligence markets, and has two primary product lines—interconnect chips and Jintide?server platform. The Company was listed in July 2019 among the first batch of companies on SSE STARMarket (Stock code: 688008.SH). Heaquartered in Shanghai, the Company has branches in Kunshan,Beijing, Xi'an, Macau, the USA and South Korea.
About Montage Technology
Headquartered In
Shanghai
China
Branches InChina
Overseas
Kunshan Beijing Xi'an Macau
US Korea
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
May 2004Founded
Jan 2006
Jun 2008
Milestones of MontageTechnology
Achieved massproduction of its firstchipJun 2006
Received its firstgranted inventionpatent
DDR2 Advanced MemoryBuffer (AMB) chips werecertified
Aug 2011DDR3 Register Buffer andMemory Buffer chips werecertifiedSince its cumulative profitturned positive in 2011,Montage Technology hasbeen profitable for 12consecutive years
Oct 2013
DDR4 Registering ClockDriver (RCD) and DataBuffer chips werecertified
Oct 2014
Won GSA Award forBest Financially ManagedSemiconductor Company
Jan 2016Collaborated withTsinghua University andIntel on development ofa new general-purposeprocessor
May 2019
Achieved mass production of1st Gen Jintide? CPUJul 2019
Listed as one of the first batchof companies on the SSE STARMarket
Sep 2020
Achieved mass productionof its PCIe 4.0 Retimers
2021Recognized as Single Champion Model Enterprise in ManufacturingIndustry and National Technological Innovation DemonstrationEnterprise
Sep 2021The cumulative shipped quantity of Jintide? CPU exceeded 100,000 pcsOct 2021Achieved the mass production and shipment of Gen1 DDR5 memoryinterface chips and module supporting chips
May 2022
Released the world's first CXL? Memory eXpander Controller (MXC)Pioneered trial production of Gen2 DDR5 RCDSep 2022
Released the world's first engineering sample of Gen1 DDR5 ClockDriver (CKD)Oct 20223rd Gen Jintide? Server has passed the compatibility certification ofVMware
Dec 2022Released the world's first engineering sample of Gen3 DDR5 RCD
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Business Field
The Company has been deeply engaged in the two fields of interconnect chips and data-processing chips. It is committed to providinghigh-performance and low-power chip solutions for cloud computing and artificial intelligence.
Memoryinterfacerelated
RCD/DBSPD/PMIC/TS
CKD
PCIe RetimerMXC
“Fast”ChipsInterconnect Chips
PCIerelated
Jintide?
CPU
Focusing on high‐speed interconnect and high-performance data-processing related technologies
“Big”ChipsData Processing
CXLrelated
AIChips
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Product Catalogue
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Interconnect Chips Product LineMajor Products
Montage Technology’s Jintide? CPU is an x86processor family with Pre-check (PrC) or DynamicSecurity Check (DSC) functions for use on Jintide? orother general server platforms.The Company has already mass-produced 3rd Gen Jintide? CPU andhas released a new 4th Gen Jintide? CPU. By continuously deepeningits expertise in Jintide? CPU, the Company enables surging computingpower for cloud computing, enterprise applications, artificialintelligence and high-performance computing.
Jintide? CPU
Hybrid Security DIMMs are DIMM devices builtwith Montage proprietary Mont-ICMT?(Inspection & Control on Memory Traffic)technology to provide a more secure andreliable memory solution for server platforms.To meet different application needs, the Company has launched twoseries of products: Hybrid Security DIMM (HSDIMM?) and HybridSecurity DIMM-Lite (HSDIMM?-Lite).
Hybrid Security DIMMJintide? Server Platform Product Line
The Company is currently developing an AI chip, whichadopts a near-memory computing architecture and isdesigned to solve the bottlenecks of AI computing such aslimited CPU bandwidth, performance, and GPU memorycapacity in inference applications with high data throughput,therefore providing customers with a low-latency and high-efficiency AI computing solution.
AI Chips
As an ultra-speed Retimer chipmeeting the PCIe high speeddata transmission protocol, thePCIe Retimer mainly solves theproblems such as misalignedtiming, large loss and poorintegrity when data is transmitted at high speed orover long distances in a data center.The Company has successfully mass produced PCIe
5.0/CXL 2.0 Retimer, providing stable and reliable
high-bandwidth and low-latency interconnectsolutions.
PCIe Retimer
Montage Technology delivered the industry's firstengineering sample of Gen1 DDR5 CKD, which supportsdata rates up to 6,400MT/s and low-powermanagement modes for next-generation desktop andlaptop memory, in order to provide memory vendorswith comprehensive and superior memory interfacesolutions.
CKD
MXC
Montage Technology delivered the world’s firstCompute Express Link? (CXL?) Memory eXpanderController (MXC), which enables significant expansionof memory capacity and bandwidth to meet thegrowing demand for high-performance computing,artificial intelligence and other data-intensiveapplications.
Memory InterfaceAs the core logic devices ofserver memory modules,memory interface chipsareare mainly used to increasethe speed and stability ofmemory data access. TheCompany has successfully launched DDR2–DDR5memory interface chips.Montage Technology started producing Gen2DDR5 RCDs in May 2022 and delivered the world’sfirst Gen1 DDR5 Clock Driver (CKD) engineeringsample.
The DDR5 memory modulerequires three supportingchips, namely Serial PresenceDetect (SPD) EEPROW withHub, Temperature Sensor (TS)and Power Management IC(PMIC).The Company has successfully developed theDDR5 memory module supporting chips workingwith partners and achieved the mass productionand shipment.
Memory Module Supporting Chips
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
As a leader in industry innovation, the Company has great technical advantages and industry status, and is actively engaged in the establishment and development of industry-related standards andsystems through international industry standard organizations to jointly promote the healthy and stable development of the industry.Industry Status
Market PositionIndustry Standards Industry AssociationsMember of the Board of Directors
chairman
of Joint Electron DeviceEngineering Council (JEDEC) Solid State TechnologyAssociation, a global organization in developing openstandards for the microelectronics industryActively serves asof three JEDEC committeesand sub-committees, and has a strong voice in productstandard developing in relevant nichesDr. Howard Yang, Chairman and CEO of the Company, isthe first recipient of the JEDEC Distinguished ExecutiveLeadership Award and promoted as IEEE Life Fellow bythe Institute of Electrical and Electronics Engineers (IEEE)
One of the world's three major companies providing DDR4memory interface chips
providing completesolutions for DDR5 memory interfaces and module supportingchipsThe Company's DDR4 and DDR5 memory interfaces havesuccessfully entered the international mainstream memory,server, and cloud computing markets, occupyingOne of the world's three companies that mass-produce PCle 4.0Retimers
in the world to mass produce PCIe 5.0/CXL
2.0 Retimer
in the world to release CXL Memory eXpanderController (MXC)
One of the world's two major companies
significantmarket shares worldwide
The second companyThe first companyThe world's first company to deliver DDR5 CKD engineeringsamples
Leads the development of international standards for
DDR5 Gen1, Gen2 and Gen3 memory interface chips, Gen1MDB memory interface chip, and other productsActively participates in the standard formulation of theGen1 DDR5 CKD chips and DDR5 memory modulesupporting chipsMontage-invented "1+9" distributed buffer memorysubsystem framework was adopted by JEDEC as aninternational standard for DDR4 products, and evolvedinto the "1+10" framework in DDR5 generation, whichcontinues to be an international standard for LRDIMMs andas the basic architecture further derivates an internationalstandard for MRDIMMs
One ofDDR5 memoryinterface chip vendorsthe world's Top 2
The world's 2nd
company to massproduce PCIe 5.0/CXL2.0
Retimer
Member of theBoard of Directors
of JEDEC
The world's 1st
company to deliverCXL Memory eXpander
Controller
The world's 1st
company to deliver CKD
engineering sample
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Corporate Culture
R
accelerating with focus & innovation
Corporate Vision
To become an innovativeinternational IC design companyfocusing on data-processingand interconnect chips
Corporate Mission
To make data transfer moreefficient and data computingmore secure
Corporate Culture
Accelerating with focus andinnovationAdhering to the spirit ofcraftsmanshipDriving extraordinary growthwith constant innovation
Verses by Su Zhe, a poet of Song Dynasty
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Milestones in 2022
OctDec
May
Nov
AugSep
Released the world's first CXLMemory eXpander Controller(MXC)
Pioneered trial production ofGen2 DDR5 Registering ClockDriver (RCD)
Partnered with SamsungElectronics to deliver CXL?memory products
Received two important honorsat World SemiconductorConference
Released the world's firstengineering sample of Gen1DDR5 Clock Driver (CKD)
3rdGen Jintide? CPUs passedVMware compatibilitycertification
Dr. Howard Yang delivered aspeech at the World InternetConference
Dr. Howard Yang waspromoted as IEEE Life Fellow
Won two awards on MicronSupplier Day 2022
Released the world's firstengineering sample of Gen3DDR5 RCD
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Financial Performance
Net profit1,299millionwith a year-on-year increase of
56.71%
8.29
12.99
20212022
Unit: 100 Million CNYNet profitIn 2022, dedicated in the fields of data-processing andinterconnect chips, Montage Technology steadily carriedout various works around its strategic objectives andbusiness plan, and achieved satisfactory results in productR&D and business development, resulting in significantgrowth in operating achievements. In 2022, the Company'soperating revenue, net profit, and sales revenue of theinterconnect chips product line hit a new record again.
Operating revenue
25.62
36.72
20212022
Operating revenue3,672million
43.33%
with a year-on-year increase of
Unit: 100 Million CNY
8.45
9.37
20212022
Unit: 100 Million CNY
17.17
27.35
20212022
Unit: 100 Million CNY
10.80%
937million
Total sales revenueof Jintide? serverplatformTotal sales revenueof interconnect chips2,735million
59.30%
with a year-on-year increase of
with a year-on-year increase of
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
2022 ESG Highlights
EconomicPerformance
RevenueCNY 3,672 millionincreased by 43.33%YOY
Net profit
CNY1,299 million
GovernancePerformance?36% of Directors, Supervisors,
and Senior Executives were females?100% attendance of Directors,
Supervisors, and Senior Executives atthe General Meeting, Board of Directors Meeting and Supervisory Board Meeting100% of new employees
participated in cyber security training
?
Innovation
? A total of 468 R&D staff, accounting for 73% of the total workforce
CNY 563 million was invested in R&D,accounting for 15% of the operating revenue
Four products made their world
debut, among which CXL MXC is a pioneer in the industry
?
?
EmployeeCare
? labor contract signing rate andcommercial insurance coverage rate
employee training coveragerate
femaleemployees
117 employees wonpatent awards
100%
? 100%? 94% equity incentive comprehensive coverage rate? 29%?
? 6 volunteer activities were organised
Donated goods and cash worth more than CNY 0.6 million?
increased by 56.71%YOY
? The Gen2 DDR5 memory interfaceproducts consumed 5%-10% less power than the Gen1 products
For the same amount of computingtasks, the power consumption of the4th Gen Jintide? CPU was nearly 9% lower than 3rd Gen
Annual GHG emission per employee was 3.11 tCOe
?
the?
ProductQuality
? Customer satisfaction was higher than 90%
0 quality accidents100% suppliers responsible
minerals sourcing audit coverage rate??
GreenTechnology
CommunityEngagement
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Honours
Institute of Electrical andElectronics EngineersChairman of the Board waspromoted as IEEE Life FellowNational Intellectual PropertyAdvantage EnterpriseChina National IntellectualProperty Administration
The 23rd China Patent
Excellence AwardChina National IntellectualProperty Administration
Outstanding Performance AwardOutstanding Quality Award
Micron Technology
Second Prize of the Fourth ShanghaiIntellectual Property Innovation AwardShanghai Municipal People's
Government
2022 First Annual ExcellentSecurity and Trustworthy Solution
Z-TCIA
2022 China Chip Award of Annual SignificantInnovation and Breakthrough ProductChina Center for InformationIndustry Development
2021-2022 China High-Speed Interconnect
Chip Technology Leader AwardWorld Semiconductor Congressand Nanjing InternationalSemiconductor Expo
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Corporate
GovernanceMontage Technology adheres to the responsibilities to all partiesand operates on the principles of honesty and integrity. Thesustainable development of the Company can be achieved bycontinuously improving the governance structure, strengtheninginternal control and risk management, safeguarding business ethicsand enhancing information disclosure and information security.Business Ethics and ComplianceEconomic PerformanceInformation Disclosure and TransparencyStakeholder Communication and CollaborationRisk ManagementESG GovernanceNetwork Security and Data Privacy
Shareholders and General Meetings
Governance StructureMontage Technology is in strict compliance with the requirements of the
, the , the
, and other relevant laws and regulations. The Company has improved the corporategovernance system, with clear responsibilities and standardized operations among the decision-makingbodies, supervisory bodies and management.The Company has established a corporate governance structure consisting of a Shareholders' Meeting, aBoard of Directors, and a Board of Supervisors. Under the Board of Directors, the Company has establishedthe Audit Committee, the Remuneration and Appraisal Committee and the Nomination Committee. TheCompany has established a relatively sound corporate governance system to ensure sound operation.
Company Law of the People'sRepublic of ChinaSecurities Law of the People's Republic of ChinaCode of Corporate Governancefor Listed Companies
To safeguard the legitimate rights and interests of the shareholders of the Company, especially the smalland medium-sized shareholders, Montage Technology convened the general meeting in accordance withthe , the ,the and other laws and regulationsand the relevant provisions of the Articles of Association of the Company to ensure that shareholders canparticipate in the shareholders' meeting in time to vote and exercise their relevant rights.During the reporting period, Montage Technology held 3 general meetings, including 1 annual generalmeeting and 2 extraordinary general meetings, convened by the Board of Directors. The three generalmeetings were all held on-site and online and a total of 10 motions were audited. Meanwhile, at theannual shareholders' meeting, the Company presented the 2021 business performance and industrydevelopment report to investors, and communicated with shareholders about their concerns.
Company Law of the People's Republic of ChinaSecurities Law of the People's Republic of ChinaRules Governing the Listing of Stocks on the Shanghai Stock Exchange
nd
The 2 session of the Board of Directors of Montage Technology consists of 9 members, and the boardincludes 4 independent directors, accounting for more than 44%, to give full play to the role in safeguardingthe interests of shareholders, especially the small and medium-sized investors and the Company. The boardincludes one female director. The board members' specialties cover various fields such as industry,investment, finance and law, facilitate the board's effort to guarantee the Company's decision-making levelwith a more comprehensive and integrated perspective and concept.
Board Age
Diversity22%
11%
11%
56%
40 and below40-5050-6060 and aboveIndependent DirectorsNon-independent Directors
Proportion ofIndependentDirectors
44%56%
Shareholders' Meeting
Board of SupervisorsBoard of Directors
Audit CommitteeRemuneration and Appraisal
Committee
General Manager (Operation Team)
Nomination CommitteeBoard of Directors Office
Directors and the Board of Directors
Republic of China
Company Law of the People'sSecurities Law of the People's Republic of ChinaCode of Corporate Governancefor Listed Companies
Company Law of the People's Republic of ChinaSecurities Law of the People's Republic of ChinaRules Governing the Listing of Stocks on the Shanghai Stock Exchange
CorporateGovernance
Innovation Empowermentand Quality Service
Supply Chain Management andIndustry Cooperation
Employment Management and
Harmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
The Board of Directors has three committees, including the Audit Committee, the Remuneration andAppraisal Committee, and the Nomination Committee. The members are all directors and most of them areindependent directors. Each committee, in accordance with the provisions of the
, gives full play to the professional advantages in accordance with duties and authority, andmakes professional opinions and recommendations in financial accounting business operation and riskmanagement, so as to provide strong support for the scientific decision-making of the Board of Directors.
Articles of Incorporation
and the Bylaws
Montage Technology strictly abides by the and other lawsand regulations. The Board of Supervisors was established to independently exercise the power ofsupervision in accordance with the law, and it shall protect the rights and interests of shareholders and theCompany and supervise the daily operation activities. During the reporting period, the Company's 2ndBoard of Supervisors was composed of three supervisors, with 67% being female. The members of theSupervisory Board include two representatives of non-employees and one representative of employees,ensuring that the Board of Supervisors has the ability to communicate extensively with shareholders andemployees, and can safeguard the rights and interests of all shareholders.
Company Law of the People's Republic of ChinaSupervisors and Board of Supervisors
Gender-Diversified in Directors, Supervisors, and Senior ExecutivesMontage Technology is committed to building an inclusive work environment with equal opportunity whilemaintaining the professionalism and diversity of directors, supervisors, and senior executives. During thereporting period, females accounted for 36% of the Company's directors, supervisors and senior executives,67% of the Board of Supervisors, and 50% of senior managers.
20-3030-40
50-60Above 6040-50MaleFemaleDoctorMasterBachelor
35.7%
35.7%
28.6%
6%
64%
57.1%
14.3%
14.3%
14.3%
ChairmanHoward Yang
Stephen Tai
Yi ShiRongXin LiBrent Young
ZhiYao YinChangJiang Lv
JingDong Liu
Bo Yu
MaleMaleFemale
MaleMaleMaleMaleMaleMale
√√√
√√√
Position
Audit Committee
Remuneration andAppraisal Committee
NominationCommitteeNameGender
Types of Committees
√
√√
100%
During the reporting period
100%3
supervisory meetingsattendance rate
of supervisors100%6During the reporting periodEmployeeDirectorsNon-EmployeeDirectors
Independent
Directors
PositionNameGenderXiaoYan XiaXiaoHong CaiZhouJie Fang
FemaleMaleFemale
Chairman of the Board
of Supervisors
Supervisor Employee representative
High Education
Distribution ofDirectors,
Supervisors,and SeniorExecutives
Genders inDirectors,Supervisors andSenior Executives
EducationalBackgroundin Directors,Supervisors, andSenior Executives
42.9%
21.4%
14.3%
14.3%
7.1%
Ages in Directors,Supervisors,and SeniorExecutives
IndustryLegal
InvestmentFinance andaccounting
attendance of directorsboard meetings
remuneration and appraisalcommittee meetings
attendance of remuneration andappraisal committee members
audit committee
meetings
nomination committee
meeting
100%
100%
attendance of auditcommittee members
attendance of nominationcommittee members
Articles of Incorporationand the Bylaws
Company Law of the People's Republic of China
CorporateGovernance
Innovation Empowermentand Quality Service
Supply Chain Management andIndustry Cooperation
Employment Management and
Harmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Risk Management
Montage Technology attaches great importance to risk management and internal control, andhas formulated policies, like the , to address variousidentified potential risks related to operations covering the internal control, operation, finance,legal and marketing fields. The Company strengthens its internal control system, clarifiesinternal control processes, operations, supervision and evaluation, improves internal controlself-assessment management norms and work mechanisms to reduce various risks andensure compliant operation of the enterprise. The Company adopts a three-level riskmanagement architecture to clarify the scope of responsibilities at each level, striving tobalance flexibility, moderation, and efficiency while guarding against risks.
Internal Control Management Manual
R&D RiskTalent Loss Risk
Supplier RiskTechnology
Leaks Risk
Quality Risk
IP Risk
……
Board ofDirectorsAudit Committee
Department of Internal Audit
Structure of Montage Technology Internal Audit and Risk Management System
Reviewing and evaluating the reliability, effectiveness and integrity of the Company’s internal monitoring
mechanisms
Reviewing and assessing the appropriateness of the Company’s organizational structures, systems and
procedures
Reviewing and evaluating the security and integrity of assets
Understanding and evaluating the possibility of significant risks to the Company, and helping the Company to
improve risk management, etc.
Level 1: As the highest responsible party for internal control and risk management, the board of directorsprovides overall management of the risk management and internal control system, plays an upper-level role andoversees the implementation of the results of the comprehensive risk management system and internal controlsystem.Level 2: The Audit Committee is responsible for supervising the internal risk management and supervisionmechanisms and is responsible to the Board of Directors.Level 3: The Department of Internal Audit performs the responsibilities of internal control and risk control, actuallyimplements various internal control systems within the Company, monitors the progress of internal control andrisk control, and assists the Board of Directors and the Audit Committee to fulfill their responsibilities includingInternal Audit Procedure
Development ofannual plan for
internal audit
Pre-auditinvestigationof the auditee
Implementationof the audit
Follow-upaudit on theimplementation
of rectification
measures
Submission tothe Company'saudit committeeor the board of
directors for
review
Compilation ofinternal auditreport based onaudit opinions or
decisionsCompilation ofaudit files basedon relevant
materials
Main Risks
Reporting line
Structure of Montage Technology Internal Audit and Risk Management System
Consumer Concentration
Risk
Internal Control Management Manual
CorporateGovernance
Innovation Empowerment
and Quality Service
Supply Chain Management andIndustry Cooperation
Employment Management andHarmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
2022 Internal Control Assessment Report
Based on the identification of significant deficiency of internal control over financial reporting, there wereno significant deficiencies in the internal control over financial reporting as at the base date of the InternalControl Assessment Report. The board believes that the Company has maintained effective internal controlover financial reporting in all major aspects in accordance with the requirements of the internal controlstandard system and related regulations.Based on the identification of significant deficiencies in the internal control over non-financial reporting,there were no significant deficiencies in the internal control over non-financial reporting as at the base dateof the Internal Control Assessment Report.From the base date to the issue date of the Internal Control Assessment Report, there were no significantchanges that may impact the assessment of the effectiveness of the internal control.
During the reporting period, Montage Technology conducted one internal control self-assessment andthree special audits. After the internal control self-assessment and inspection and supervision, therewere no major internal control deficiencies within the Company. For the general internal control defectsfound, the Company adopted a "discover and rectify immediately" strategy and instructed relevantdepartments to formulate rectification plans to rectify the issues in a timely manner. As of the end of thereporting period, all identified issues have been corrected, with a completion rate of 100%.The board of directors issued the 2022 Internal Control Assessment Report, and Ernst & Young Hua Mingissued the Internal Control Audit Report for the Company.
CorporateGovernance
Innovation Empowermentand Quality Service
Supply Chain Management andIndustry Cooperation
Employment Management andHarmonious Workplace
Green Development andSocial Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Business Ethics
Montage Technology strictly abides by laws and regulationssuch as the
and other accepted business ethics. TheCompany has set business ethics regulations, such as
, to clarify the system ofresponsibilities demonstrating the Board of Directors isresponsible for supervising the management in establishing ananti-fraud culture environment. The Audit Committee, as thebody responsible for the relevant issues, is responsible forguiding the General Manager's Office to establish a soundinternal anti-fraud mechanism, identify sensitive positions andcarry out audit checks accordingly.In terms of internal management initiatives, Montage Technology requires relevant employees, fromdepartments with high potential fraud risks, to sign an . The Company strictly investigatesinternal corruption, bribery, fraud, money laundering, improper trading and other business ethics incidents.In terms of industry cooperation, the Company also attaches great importance to business ethics protectionin the supply chain. In addition to the relevant supplier background investigations, the Company hasincorporated anti-bribery clauses such as the into standard contract templates andrequired anti-bribery clauses to be signed in relevant business cooperation. During the reporting period, nobusiness ethics incidents occurred in the Company.
Law of the People's Republic of China againstUnfair Competition, Interim Provisions on Prohibition ofCommercial Bribery
Anti-corruption Management Policy
Anti-Fraud PledgeAnti-Bribery Statement
In response to any potential business ethics incidents, Montage Technology has established a convenientand efficient complaint and reporting channel in accordance with the relevant provisions of the
. Employees at all levels of the Company or external social parties can report businessethic issues to the General Manager's Office in real name or anonymously through reporting hotlines,emails, letters, and other means. The relevant reported information will be reported to the Company'sgeneral manager within 10 working days, and the investigation results or handling results will be notifiedto the reporter (only for real-name reporting). If it is hard to notify the reporter beforethe deadline, the reason will also be explained to the reporter.
Anti-FraudManagement Policy
within three months
Business Ethics Reporting Mechanism
Business Ethics Management
Business Ethics TrainingIn order to better promote the concept of business ethics, Montage Technology actively carries out all kindsof anti-corruption training and education in the form of system publicity and specialized training. This willhelp further strengthen employees’ awareness of integrity, enhance their sensitivity to fraud problems, andhelp them find and identify daily fraud incidents.
Employee Business Ethics TrainingIn 2022, the Company's legal department organizedsix training sessions for employees on potentialinsider trading, fraud, and other business ethicsissues, providing detailed information on theCompany's relevant policies and helping employeesidentify red-line events in their daily work throughexamples. At the same time, corresponding onlinetests were conducted after the training to furtherconsolidate the training effect.
The Company promises to strictly protect the whistleblowers' information, prohibit illegal discrimination orretaliation against the whistleblowers, and take serious action against those who violate the rules byleaking the whistleblowers' information or retaliating against them. The Company has established strictregulations for the confidentiality requirements of accepting, recording, transferring, verifying, discovering,prosecuting, and filing whistleblower information. At the same time, the Company will record reportinginformation to facilitate timely tracking of related information processing progress and improve theCompany's anti-fraud management level.Law of the People's Republic of China againstUnfair Competition, Interim Provisions on Prohibition ofCommercial Bribery
Anti-Fraud PledgeAnti-Bribery Statement
Anti-FraudManagement Policy
Anti-corruption Management Policy
CorporateGovernance
Innovation Empowermentand Quality Service
Supply Chain Management andIndustry Cooperation
Employment Management andHarmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Information Disclosure
The Company attaches great importance to the management of information disclosure and specifies thatthe chairman of the board is the principal responsible person for information disclosure. The Company hasformulated policies, for instance, to standardise and refine the requirements related to information disclosure.Montage Technology adheres to the principles of "truthful, accurate, complete, timely, fair, concise andclear, easy to understand" for information disclosure. The Company has designated the disclosure channelof website and press, including the Shanghai Stock Exchange (www.sse.com.cn), Shanghai Securities Newsand Securities Times, to ensure stakeholders have fair access to information about the Company. At thesame time, we carry out effective communication with shareholders and institutional investors throughperformance briefing, the Shanghai Stock Exchange interactive platform, the investor relations column onthe Company's official website, investor email box, investor hotline, investor on-site visit and other forms.We value maintaining investor relations, improve the transparency of the Company's information andprotect the legitimate rights and interests of all shareholders, especially the small- and medium-sizedshareholders.In accordance with the relevant requirements of the , theCompany took measures to keep the number of insiders to a minimum and registered the insiders that haveaccess to the unreleased insider information during the reporting, transmission, preparation, review,disclosure, and other processes.
Information Disclosure Policy, Business Management Policy onPostponement of and Exemption from Information Disclosure and Insider Registration and ManagementPolicy
Insider Registration and Management Policy
Information Disclosure Procedure
The secretary of the board conducts compliance checksand writes announcements
The internal responsible people review and submit theinformation
Relevant review procedures
Disclosure
During the reporting periodThe Company has
disclosed
interim announcements
regular reports
held
result presentations
hosted
investment institutions
a total of
times
disclosed a total of
investor relations activity
record forms
responded to a total of
SSE interactive questions
Information Disclosure Policy, Business Management Policy on
Postponement of and Exemption from Information Disclosure and Insider Registration and ManagementPolicy
Insider Registration and Management Policy
CorporateGovernance
Innovation Empowermentand Quality Service
Supply Chain Management andIndustry Cooperation
Employment Management andHarmonious Workplace
Green Development andSocial Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Information Security
Montage Technology strictly abides by relevant laws and regulations such as the
and has formulated a series of system documents such as, ,, ,
. The IT department is responsible for the Company's informationsecurity management.The Company has taken a series of measures in the identification and prevention of informationsecurity risks to ensure that resources, technology, management, and other factors related toinformation security are under control. It would help to protect IT assets from unauthorized accessor attacks and minimize IT-related risks.
CybersecurityLaw of the People's Republic of ChinaNetwork Division ManagementTerminal Equipment Network Access ControlHigh Security DataAccess PolicyDocument Access Control Policyand Emergency Plans for Power Outages and FireAlarms in Various Data Centers
According to the definition of security levels of information system assets, data access rulesand VLAN network segments with different security levels are designed and planned, andmutual access is prohibited by default between different network segmentsFirewall is used to restrict users' access to high-security level network resourcesOnly certain terminals are allowed to access the systems that store sensitive information, anddata transfer is strictly restricted
Implement internal network isolation
Enhance permission management
Deploy network security devicesVarious network security devices are used to prevent leakage of important design dataand network intrusionThe heterogeneous firewall architecture is used to minimize external ports. The Companydeploys encryption, firewall authentication, and dual-factor VPN authentication isnecessary for protocols that do need to be developedThe software is set up to automatically update server and regularly apply security patchesto the serverVarious functions of the firewall, including malicious code filtering, virus protection, attackprevention, and regular automatic update, are enabledRelevant protection function modules are enabled for the mail server to filter maliciouscode emails and phishing emailsAnti-virus functions are enabled for the server and non-essential high-risk ports aredisabled to prevent the spread of computer worms
The permission application process is clarified, following the "minimum permission" principle,and strictly limiting permissionCybersecurityLaw of the People's Republic of ChinaNetwork Division ManagementTerminal Equipment Network Access ControlHigh Security Data
Access PolicyDocument Access Control Policyand Emergency Plans for Power Outages and Fire
Alarms in Various Data Centers
CorporateGovernance
Innovation Empowermentand Quality Service
Supply Chain Management andIndustry Cooperation
Employment Management and
Harmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
In addition, the Company's IT department conducts monthly internal audits of the information systemcovering relevant account permissions, data center access logs, system operation logs, firewall logs, andother information. The security issues found are rectified in a timely manner, and test conclusions arerecorded. The Company also conducts regular external audits and cooperates with third-party auditors.Furthermore, the Company promotes cybersecurity awareness to all employees by regularly sendingphishing email examples as warnings, while combining with regular training to convey the precautions forusing the office network, secure management of passwords and important data files, virus prevention, andother security measures and awareness.
The IT system operation monitoring system has been established to alert via emails andprompts when related equipment malfunctions occurThe has been established and data backups are conducted regularly toprevent data lossWe establish and follow emergency plans including
, clearlyindicating the emergency response process in order to quickly restore system operationand avoid data leakage and loss
Data Backup Policy
Network Interruption Emergency Plan,IT Server Room Emergency Plan, and Power Power Supply Emergency Plan
For highly core data departments such as the R&D department, we formulate specialpolicies to protect core data, and use secure access terminals and virtual terminals toindirectly access sensitive data. Meanwhile, we set strict access control for specialdocuments and strengthen file transfer controlIndirect connected secure access terminals and virtual terminals are used to indirectlyaccess sensitive data
Highly sensitive data protection
Early warning and emergency plan
Information securitytraining coverage rate100%
Information securitytraining time
100 hours
External audits
During the reporting period
Supplier audits
Data Backup Policy
Network Interruption Emergency Plan,IT Server Room Emergency Plan, and Power Power Supply Emergency Plan
CorporateGovernance
Innovation Empowermentand Quality Service
Supply Chain Management andIndustry Cooperation
Employment Management andHarmonious Workplace
Green Development andSocial Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
ESG Governance
Undertaking social responsibility and adhering to sustainable development are important components ofMontage Technology's development strategy. The Company integrates ESG management and sustainabledevelopment concepts and incorporates them into the business management system.
In order to continuously consolidate the leadership role of the Board of Directors in ESG governance mattersand clarify its accountability in related matters, the Company has developed ESG work managementmechanism and established a three-tier ESG governance structure to lay the foundation of the organizationalstructure for the implementation of the Company's sustainable development actions to meet thecommunication needs of shareholders, investors, customers and other stakeholders.
ESG Governances Structure
The Board of Directors is responsible for formulating Corporate Social Responsibility-related strategiesand objectives, approving and monitoring ESG-related matters, as well as strengthening the Board'ssupervision of ESG governance matters and promoting the implementation of ESG management policiesand strategies. The Corporate Social Responsibility Working Group, comprised of senior managers andmanagers from all relevant functional departments, is responsible for guiding the implementation of ESGstrategies and managing ESG-related issues, providing sustainable development advice to the Board ofDirectors, and formulating ESG objectives and action paths while considering the concerns of variousstakeholders and the international community. The Board of Directors Office, the lead department, willwork with the Company's business lines and other functional departments to promote theimplementation of ESG work, and will continue to establish and optimize relevant risk managementmechanisms to ensure close communication and cooperation with stakeholders.
Montage Technology ESG Governance Structure
Approval and Monitoring
Guidance and Monitoring
ESG Working Group
Board of Directors Office
Proposal
Report
Board ofDirectors
CorporateGovernance
Innovation Empowermentand Quality Service
Supply Chain Management andIndustry Cooperation
Employment Management andHarmonious Workplace
Green Development andSocial Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Montage Technology attaches great importance to the communication with stakeholders and maintains close contact and interaction with them. We actively listen to the opinions and suggestions from stakeholders and takemeasures to respond reasonably to their concerns. During the reporting period, the Company did not receive any objections from stakeholders to Montage Technology's business activities.
Stakeholder Engagement
StakeholdersExpectation and DemandsResponseChannels
Government &Regulators
Customer
Customer VisitsCustomer ServiceFeedbackOnlineCommunication
Shareholder & Investor
Employee
Partner &Supplier
Community &Public
Ensure Stable Product QualityFocus on TechnologyDevelopmentImprove ProfitabilityOptimize Internal Control andRisk Management
Shareholders'MeetingEarningsReleaseInformationDisclosureRoadshowInformationDisclosureReception ofResearchDocumentExchangePolicyImplementation
Product QualityInnovation and IPBusiness Ethics andComplianceEconomic Performance
Economic PerformanceProduct QualityInnovation and IPBusiness Ethics andCompliance
Industry CooperationProduct QualityStakeholder Communicationand CollaborationGreen Product
Industry CooperationEnsure Stable Product QualityImprove the Confidentiality ofCustomer DataOptimize Product DesignCarry out Full LifecycleManagement
Pay Taxes in Full and on TimeAnti-corruption ManagementProactive Implementation ofRelevant PoliciesProactive Social ResponsibilityContribute to TechnologicalDevelopment of the Industry
Human CapitalDevelopmentEmployee Benefits and WelfareOccupational Healthand SafetyBusiness Ethics andCompliance
Comprehensive CareerAdvancement MechanismCompetitive Salary and WelfareGuaranteeImplementation of Health andSafety Management SystemEqual Communication andAppeal MechanismCustomer ServiceBusiness Ethics andComplianceInnovation and IPSupply Chain Management
Commit to CharityAdhere to Green OperationPromote Social ProgressShare the Outcome ofDevelopment
Promote Daily CommunicationImplement Project CollaborationEliminate Supply Chain andBusiness Ethics IssuesFulfill Contracts in Accordancewith the LawConduct Supplier AssessmentsFocus on Technology Development
EmployeeConferenceEmployeeActivitiesEmployeeTrainingIndustry SeminarsSupplierConferencesSupplier TrainingSupplierAssessments
CommunityActivitiesPublic WelfareProjectsCommunity EngagementEnvironmental Advocacy andCooperationIndustry Cooperation
StakeholdersExpectation and DemandsResponseChannels
CorporateGovernance
Innovation Empowermentand Quality Service
Supply Chain Management andIndustry Cooperation
Employment Management and
Harmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Montage Technology is committed to actively listening to the opinionsand suggestions of all stakeholders and integrating the core demands ofstakeholders into the entire process of company decision-making andoperation, in order to accurately grasp the direction of the Company'ssustainable development. During the reporting period, in order to betteridentify ESG materiality issues, the Company comprehensively sorted outimportant issues related to the Company's sustainable development,with reference to the GRI Standards, industry ESG issues concerning theMSCI ESG Ratings, and feedback from internal and external stakeholderresearch. We identified a total of 25 issues relevant to MontageTechnology, including 9 issues of high importance, 10 issues of mediumimportance and 6 issues of low importance.
Materiality Assessment
Identification ofTopic Issues
Through the analysis of disclosure requirements of the guidelines, policy analysisand benchmarking capital market concerns, 25 potential materiality issues werescreened out to form a list of ESG materiality issues
Montage Technology Materiality Assessment Process
Montage Technology Materiality Matrix
9 issues of high
importance
Importance to Montage Technology's Sustainable Development
High
Low
Importance to Stakeholders
StakeholderCommunication
Develop stakeholder communication plan, conduct 18 in-depth interviews withinternal functions, and distribute ESG materiality questionnaires to stakeholders tounderstand the priority issues of each stakeholder
Confirming
Material
Topics
Analyze each issue in two dimensions: importance to stakeholders andimportance to Montage Technology's sustainable development, and confirm thelevel of impact of each issue with the Board of Directors
Materiality
Matrix
Compile into a matrix of materiality, representing high-, medium-, and low-importance
High01 Business Ethics and Compliance02 Product Quality03 Human Capital Development04 Innovation and IP05 Economic Performance06 Information Disclosure and Transparency07 Stakeholder Communication and Collaboration08 Customer Service09 Industry Cooperation10 Supply Chain Management11 Risk Management12 Labor Management13 Green Products
14 ESG Governance15 Network Security and Data Privacy16 Occupational Health and Safety17 Employee Rights and Benefits18 Diversity and Inclusion19 Conflict Minerals20 Waste and Hazardous Substance Management21 Environmental Advocacy and Cooperation22 Water Resources and Effluents Management23 Energy Management24 Climate Change and GHG Management25 Community Engagement
10 issues ofmedium importance
6 issues of lowimportance
CorporateGovernance
Innovation Empowermentand Quality Service
Supply Chain Management andIndustry Cooperation
Employment Management and
Harmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Montage Technology upholds the craftsmanship spirit of excellence,and is dedicated to providing customers with high-performance andlow-power IC solutions, with innovation as the driving force to bettersuit the customers' demands and support the Company'sextraordinary growth.Product QualityInnovation and IPCustomer ServiceGreen Products
Innovation
Empowerment
and Quality Service
Innovation OrientationAs a technology-intensive IC design enterprise, Montage Technology continues to practise the corporateculture ofaccelerating with focus and innovation.In the project establishing and planning phases of eachproduct, requirements are put forward for Intellectual property (IP), the number of patents submitted andother product development related achievements. At the end of the project, the implementation of eachphase of evaluation is incorporated into the project management quality score, to identify matters to beimproved and continuously promote product innovation, and to realize the product innovation system of"Technological Reserves - R&D - Mass Production".
""
In 2022, the Company continued to increase investment in R&D and invested a total ofCNYmillion in R&D, 563increasing byyear on year, 52.36%and accounting for of the revenue.15.34%
In 2022, the Company put into use the headquarters building in Shanghai to provide resources for thefuture R&D scale growth. Meanwhile, the Company recruits and trains R&D engineers annually based onR&D needs and carries out cooperation between enterprises and universities according to the evaluation ofproduct characteristics and R&D strength, so as to provide talent guarantee for R&D and promote productdevelopment and industry development.By the end of 2022, the number of Company's R&D technical staff was , accounting forof thetotal employees, an increase of from 2021. Among them, R&D technicians with master's degree orabove accounted for, representing the continuous expansion of the Company's R&D technical team.
468 73%2%
63%The Proportion of R&D Personnel
202020212022
R&D Team by Age in 2022 (Unit: person)
29 and below30-3940-4950-59 60 and above
Montage Technology's R&D Investment
(Unit: 100 million CNY)
202020212022
5.63
3.00
3.70
During the reporting period, Dr. Howard Yang, Chairman of the Board and CEO of Montage Technology, waspromoted as IEEE Life Fellow by the Institute of Electrical and Electronics Engineers (IEEE) in recognition of hisprominent contributions to the field of IC design over the years.
Project Establishment Markedby the Signing of the NPA
System Architecture,Modules, Integration andLayout Design
Prototype Tapeout andPackaging
Sample Testing and Verification
Return to the design phase (the second phase)
if there are design defects
Montage Technology
R&D Process
Reliability Assessmentand Risk-based PilotProduction
Quality Certification
Official Mass Production
Number of R&Dpersonnel
Number of personnelin other positions
Montage Technology R&D Process
Innovation Empowermentand Quality ServiceCorporateGovernance
Supply Chain Management andIndustry Cooperation
Employment Management and
Harmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
In 2022, Montage Technology took the lead in cutting-edge technology of interconnectIC area with intensive release of new products:
TMCXL Memory eXpander Controller (MXC)
In May 2022, the Company released the world's
TM
first Compute Express LinkTM (CXL) MemoryeXpander Controller (MXC), which can enablesignificant expansion of memory capacity andbandwidth to meet the growing demand for data-intensive applications such as high-performancecomputing and artificial intelligence.
Gen2 DDR5 RCD Chip
In May 2022, the Company pioneered the trialproduction of Gen2 DDR5 RCD chip, which supportsdata rates up to 5,600 MT/s, a 16.67% improvementover Gen1 RCD, and supports multiple power-savingmodes, to continuously provide efficient memorysolutions for the development of data-intensivecomputing applications.Gen1 DDR5 Clock Driver (CKD)Engineering Samples
In September 2022, the Company delivered theindustry's first engineering sample of Gen1 DDR5CKD, which supports data rates up to 6,400 MT/sand low-power management modes, designed tohelp customers develop new-generation memoryproducts for PC.
Gen3 DDR5 Registering Clock Driver (RCD)
Engineering Samples
In December 2022, the Company released theindustry's first engineering sample of Gen3 RCD,which supports data rates up to 6,400 MT/s, a 14.3%improvement over Gen2 and 33.33% improvementover Gen1, thus realizing constant update for memoryinterface products.
Remote and Automated Testing to Improve Testing EfficiencyIn 2022, to alleviate the impact of working at home due to the pandemic and improvetesting efficiency, the Company introduced remote testing by using the existing server as arelay server to enable remote operation of test equipment and machines in both Shanghaiand Kunshan laboratories.
Meanwhile, the Company realized automation of testing and data analysis throughprogramming language to control instruments and boards and analyze testing data. TheCompany developed automated testing to solve the problems of manual testing such astime-consumption, labor-cost, and fallibility, while realizing functions including powerswitches control, chip operation monitoring, log files recording, and test results judgment,which significantly improved testing efficiency.
PCOfficenetworksegment
Network segment 2
PC
Officecomputer
Accessing MBsystem testingPC via VNC
Relay server#1Multi-user remote desktop
Laboratory in Kunshan
Accessing MBsystem testingPC via VNC
Network segment 1Testing serverOfficenetworksegment
PCTesting serverlaboratorynetworksegment
Offline
PCTesting serverTesting serverOfficenetworksegment
Officenetworksegment
laboratorynetworksegment
Offline
Laboratory in Shanghai
Relay server#2
Accessing MXCsystem testingPC and testingservers viaremote desktop
Innovation Empowermentand Quality ServiceCorporateGovernance
Supply Chain Management and
Industry Cooperation
Employment Management and
Harmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Quality Management
The Quality Management Department of Montage Technology is responsible for the formulation ofquality-related policies and objectives, regular review of the effectiveness of the quality managementsystem and annual management review to further improve the overall product quality management ofthe Company on the basis of meeting relevant statutory and regulatory requirements and customerexpectations. Montage Technology has formulated the ,
and other documents, which clearly stipulate the quality management methods covering thedesign, development, outsourcing, mass production and sales and other phases of ICs to standardize thewhole process of quality management.
To ensure product quality, the Company has established
, which defines the quality assessment at the product certification phaseregarding production processes/product packaging, etc., such as reliabilityassessment based on the JEDEC standard. Meanwhile, during the product testing andmass production phases, the Company constantly improves product quality byregularly collecting indicators in key processes, establishing product testingprocedures, conducting failure analysis, etc.In 2022, the Company did not have any quality incidents.
Quality ManualNew Product DevelopmentProcedure
Reliability QualificationRequirement
To enhance the staff's awareness of quality assurance and related work ability, Montage Technologyconducts employee trainings regarding various topics including quality management system, qualitymanagement responsibilities, quality acceptance procedure and other related contents.Meanwhile, Montage Technology carries out the quality management of its business partners. TheCompany achieves standardized management of subcontractor product quality by establishing policies andsystems regarding the selection of subcontractors, quality requirements for subcontractors such as wafersand assemblies, and plastic packaging qualification procedures, etc. In addition, the Company establishesand updates the list of banned substances from time to time for raw materials to meet theinternational/domestic environmental requirements and requires suppliers to provide relevantenvironmental testing reports regularly to ensure that products comply with environmental regulations andto reduce the environmental impact of products.The Company has maintained a high level of quality management since founded, and is highly recognizedby customers.GB/T 19001-2016 / ISO 9001:2015Standard Quality Management System Certification
Examples of Specific Measures for Quality Assurance during Product Testing and Mass Production
Eliminate random errors of test instruments by multiple sampling in mass production testing to ensure high quality ofproducts, while optimizing test time and saving test costs with the customized high-speed self-test function inside the chip.
Solve the problems of high-speed signal transmission and impedance matching between the test system and the chipunder test through self-designed high-speed test board and test program.
Correct chip parameters in mass production by designing the calibration circuit inside the chip to improve the product yieldand reduce the material loss.
The Company received theOutstanding Quality in Assembly & Test Materials
and Semiconductor Components Award from Micron Technology
Reliability QualificationRequirement
Quality ManualNew Product Development Procedure
Innovation Empowermentand Quality ServiceCorporateGovernance
Supply Chain Management andIndustry Cooperation
Employment Management andHarmonious Workplace
Green Development andSocial Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Clean Technology
Montage Technology values the product energy efficiency performance in all stages of product development, and "low-power" is also one of the core features and advantages of the Company's product developmentstrategy. For example, in the product definition stage, the balance between performance and power consumption is emphasized; in the product design stage, sleep and standby modes are added to comprehensivelyimprove product energy efficiency performance.
Optimal Management of Product Energy Consumption
The New4th-Gen Jintide?
CPU DeliversMulti-dimensionalEnergy Savings
The Company launched the new 4th Gen Jintide serverprocessor (CPU) to provide strong computing power for cloudcomputing, enterprise applications, artificial intelligence andhigh-performance computers. The product adopts multi-dimensional energy-saving technologies to continuouslyimprove product energy efficiency.
?
System-level energy managementInnovative circuit-level power managementRealize multiple system-level powermanagement through CPU multi-frequencyswitching, dynamic low-power (CKEshutdown mode) power management,clock suspend mode, extremely low-powermode, etc.
Achieve fine-grained management of powerconsumption through circuit design techniquessuch as clock gate control, power gate control,dynamic power supply replenishment, andmulti-threshold voltages.
Product Design Phase
With the advanced circuit process, Gen2 DDR5 memory interface products consume 5%-10% lesspower than Gen1 products at the same rate.Reasonable Selection of Product Technology Process
Defining low power consumption and introducing low power consumption design indirectly reducedownstream customers' requirements for heat dissipation and power supply capability, rawmaterial requirements, etc., which in turn contributes to the lower energy consumption, smallerinvestment in ambient temperature control systems, and lower material consumption of theCompany's major products when applied to servers.
Energy Management for Customers
ImprovedPerformanceper Watt ratio
Taking the floating-point performanceLINPACK as an example, the 4th Gen Jintide?CPU consumes nearly 9% less power than the3rd Gen Jintide? CPU for the same amount ofcomputing task.
Optimizedpowermanagementdesign
Upgrade the "Active Idle" mode to reducepower consumption by lowering the Meshfrequency within interconnecting cores.Add Package C6 low power mode to reduceCPU power consumption during idle time.
Innovation Empowerment
and Quality ServiceCorporateGovernance
Supply Chain Management andIndustry Cooperation
Employment Management and
Harmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Intellectual PropertyMontage Technology has always attached great importance to the protection of intellectual property rightsto support the R&D strategy of independent innovation and promote the long-term development of theCompany. To strengthen the management of intellectual property rights and enhance the corecompetitiveness, the Company has established an Intellectual Property Committee consisting of the headsof R&D departments and an Intellectual Property Management Department with specialists, in which thespecialists are responsible for handling relevant matters and reporting to the Intellectual PropertyCommittee. Meanwhile, the Company has established comprehensive intellectual property managementpolicies including
,etc., to ensure the timely and effective protection and management of the Company's intellectual propertyachievements.In addition, the Company purchases professional intellectual property management software and patentsearch platform services, which facilitate the intellectual property management department to conduct thenecessary patent searches to understand the current status of intellectual property and development needsof the proposed technology when the project is established, and search existing technologies beforeapplying for patents to avoid repeated applications, thereby realizing the information management ofintellectual property rights. For R&D personnel, the Company provides subscription to IEEE journals andChina National Knowledge Infrastructure membership services.To promote the output of intellectual property achievements, the Company has formulated the
, which clearly sets the patentapplication KPIs for the R&D department to be assessed every six months, and the KPIs are refined toindividual employees and taken into consideration in the performance assessment of relevant employees.To encourage employees' self-innovation, the Company has formulated the
, which clearly rewards the inventors of patent applications and the proposers of innovativetechnical solutions. Meanwhile, the Company selects outstanding patent solutions to actively participate inpatent competitions to encourage inventors to keep pace with continuous innovation.
Patent Management Measures, Technology Confidential Management Measures,Integrated Circuit Layout Design Management Measures, Patent Application Process, Intellectual Property
Measuresfor the Formulation and Assessment of Annual Patent Applicatio
Intellectual Property IncentiveProgram
Intellectual Property Rights of Montage Technology
Patents for invention (pieces)
1811
Cumulative Acquisitions14467
Application during theReporting Period
Layout design rights(pieces)
Software copyrights (pieces)Authorization during theReporting PeriodCumulative Applications
Note:
1. Including 2 international applications under the Patent Cooperation Treaty (PCT)
2. Including 4 international applications under the Patent Cooperation Treaty (PCT)
the Company was awarded the
, the patent "Voltage and Timing Calibration Method for Memory System"(ZL201110443575.7) won the, and thepatent "Device and Method for Clock Signal Loss Detection" (ZL201410307669.5) won the
.
"National Intellectual Property AdvantageEnterprise"
23rd China Patent Excellence Award4th SMPG Shanghai IP Innovation Award (Second Prize for Patent)
During the reporting period
Patent Management Measures, Confidential Management Measures, Integrated TechnologyCircuit Layout Design Management Measures, Patent Application Process, IntellectualProperty Training Measures
Measuresfor the Formulation and Assessment of Annual Patent Application Plan
Intellectual Property IncentiveProgram
1.2.
3.
National Intellectual Property Advantage EnterpriseThe patent "Voltage and Timing Calibration Method forMemory System" won the 23rd China Patent ExcellenceAwardThe patent "Device and Method for Clock Signal LossDetection" won the 4th SMPG Shanghai IP InnovationAward (Second Prize for Patent)
Innovation Empowermentand Quality ServiceCorporateGovernance
Supply Chain Management andIndustry Cooperation
Employment Management and
Harmonious Workplace
Green Development andSocial Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
User Experience
Montage Technology strives to deeply understand and closely cooperate with customers' needs. Thus, theCompany's quality management team regularly conducts customer satisfaction surveys covering the fivedimensions: quality, technology, service, price and delivery every six months, and conducts tracking andanalysis of client failure rate and customer satisfaction. Among them, for the quality-related feedback fromcustomers, the Company standardizes the handling according to internal policies on customer feedbackand complaint handling, failure analysis, correction and improvement, etc., to improve quality in a timelymanner and ensure that customer demands are effectively responded to.In addition, the Company conducts responsible marketing management. In terms of brand management,the Company follows the corporate Visual Identity (VI) media communication system manual and designsvarious combinations of corporate brands to ensure that information can be clearly and accuratelyconveyed, and the corporate visual image can be kept unified in different situations. In terms of trademarkmanagement, the Company ensures the correct use of relevant trademark information with clients inproduct promotion activities through requirements such as signing the
.
Commitment to Use the CompanyLogo
To avoid intellectual property rights disputes, Montage Technology has signed the
with employees, and clearlyestablished the IPR Infringement Reporting Award in the . Employeescan report relevant clues or evidence to the Intellectual Property Management department by phone, letteror email to help the Company discover third-party intellectual property rights infringement timely.In addition, Montage Technology has formulated the and combinedinternal and external training to conduct employee orientation training and special IP training. For newemployees, the Company sets a test session in the training, and provides flexible advanced trainingaccording to the task characteristics of each department and the actual needs of IP management toenhance employees' awareness of IP protection and related skills.
EmployeeConfidentiality, Non-competition and Invention Right Attribution Agreement
Intellectual Property Incentive Program
Intellectual Property Training Measures
Montage Technology achieveda customer satisfaction rate over90% IP Training for New Employees in 2022
Customer complaintclosure rate was100%
During the reporting period
total of people participatedin IP protection-related trainings
heldonline training related topatent search for the project department
the Company organized
employee IP trainings
EmployeeConfidentiality, Non-competition and Invention Right Attribution Agreement
Intellectual Property Training Measures
Commitment to Use the Company Logo
Intellectual Property Incentive Program
Innovation Empowermentand Quality ServiceCorporateGovernance
Supply Chain Management andIndustry Cooperation
Employment Management andHarmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Supply Chain Management
and Industry Cooperation
Establishing a responsible industrial chain is a crucial strategy forMontage Technology to achieve sustainable development. Thisshared goal and responsibility extends to our industrial chainpartners. We actively fulfill our commitment to supply chainsustainability by enhancing supply chain management, clarifyingsupply chain management requirements, implementing responsiblemineral sourcing, and deepening our cooperation with suppliers,industry organizations, and other stakeholders.
Supply Chain ManagementIndustry CooperationConflict Minerals
Supply Chain Management
Montage Technology is committed to continuous optimization of the supplier management system andmanagement process, which includes the implementation of comprehensive internal policies such as the
. We maintain stringent control over the entire supplier life-cycle, fromadmission to elimination/exit. Regular supplier audits are conducted to ensure the sustainability andperformance of our supply chain. Our aim is to foster a supply chain environment characterized by faircompetition, integrity, transparency, and robust traceability.Supplier Management Policy
During the supplier selection and admission stage, the Company collects information on a range of ESGindicators such as business operations, quality control, production technology, environmentalmanagement, business ethics, and employee health and safety for potential suppliers. This process alsoincludes on-site inspections. In addition, the Company requires suppliers to sign relevant declarations onbusiness ethics and product quality, which serves to practise responsible sourcing and enhance oursustainable supply chain management.
Regarding supplier empowerment, Montage Technology maintainsopen lines of communication with suppliers through face-to-faceinterviews, real-time email communication, daily/weekly reports,online meetings, and quarterly supplier conferences and othermeans for business improvement, quality control, etc. Theseinteractions facilitate timely identification and resolution of anyissues and ensure stable supply chain operations.
For suppliers with excellent performance, the Company implements incentive measures such asstrengthening cooperation with them.For underperforming suppliers, the Company provides improvement guidance.For suppliers with poor performance, the Company reduces cooperation or even cancels their supplierqualifications.
In terms of supplier supervision and evaluation, Montage Technology conducts comprehensiveperformance evaluations on suppliers on a quarterly basis. These evaluations cover various aspects such asquality, technology, delivery timeliness, and service. The performance records are stored in our dataanalysis system, which integrates the original manufacturing data from suppliers. Through consistentmonitoring and analysis of supplier performance, we constantly refine our supplier management system.
Supplier Management Process
Supplier Selection and Admission Process
Basic SurveyAgreement Signed
On-site investigationInterview surveyRegular Meeting
Audit Review
Business LicenseCertifications of ISO 9000or ISO14000Qualification CertificateSafe Production License
ContractsAnti-Bribery StatementPerformanceEvaluation
Classification
Selection &AdmissionQualification
Review
Maintain/Elimination/ExitSupplierManagement
CollaborationLetter of Intent
During the reporting period
the Companycarried out performanceevaluations oncore suppliers 7
Supplier Management Policy
Supply Chain Management andIndustry Cooperation
Innovation Empowerment
and Quality ServiceCorporateGovernance
Employment Management andHarmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Responsible Minerals Sourcing
During the reporting period, the Company has completed the conflict minerals investigation for ofsuppliers in all production process, and no supplier was found to be involved in conflict minerals.
100%
Conflict Minerals Management Process
Concept PromotionSurvey Plan
Survey ImplementationEliminate unqualified suppliersand smelters in the supply chain,and output the CMRT Questionnaire
Survey Results
Based on the latest version of the
released, theCompany screens suppliers thatmay offer 3TG and cobaltproductsCMRT QuestionnaireCMRT Questionnaire
CMRT Questionnaire
Ask suppliers to fill out
to collectand summarize supplierfeedbackCMRT QuestionnaireCMRT Questionnaire
The Company requires suppliersto meet the requirements ofMontage Technology's Conflict
Minerals Management Policy
Suppliers involved in manufacturing are mandated to strictly follow our
. The Company performs reasonable due diligence in our supply chain to ensure that sourcedminerals are from smelters that comply with the
.The Company annually identifies and reviews relevant suppliers ofconflict minerals, specifically tin, tantalum, tungsten, gold (3TG), andcobalt by using the
.The Company requires our suppliers to conduct mineral traceabilityinvestigations at each level to identify the source smelters. Thesesmelters are prohibited from using minerals from conflict-affectedand high-risk areas (CAHRA). If necessary, the Company requiressmelters that have not yet passed RMAP certification to pass it in atimely manner.
Conflict Minerals ManagementPolicy
Responsible MineralsAssurance Program (RMAP) certification
Minerals Reporting Template (CMRT) ResponsibleMinerals Quest
Montage Technology is committed to promoting responsible mineral procurement. In line with thiscommitment, we have established a risk-based responsible mineral management system and a well-structured governance mechanism that align with the
issued by the Organization for Economic Cooperation and Development (OECD). OurQuality Control Department is entrusted with the tasks of gathering, organizing, and evaluating conflictminerals standards and creating the . This policy details explicitrequirements for the identification and management of conflict minerals. Furthermore, we provide our
to our clients, pledging to collaborate with our supply chain to foster aresponsible mining environment.As a fabless company that doesn't directly source minerals, we try our best to ensure that our suppliersadhere to conflict-free minerals sourcing, as part of our commitment to responsible sourcing. We haveimplemented various measures to ensure that our products do not contain minerals from conflict areas,including:
Due Diligence Guidance for Responsible SupplyChains of Minerals
Conflict Minerals Management PolicyConflict Minerals Sourcing Policy
Conflict Minerals Management Policy
Conflict Minerals Sourcing Policy
Conflict Minerals Management
Policy
Responsible MineralsAssurance Program (RMAP) Certification
Conflict Minerals Reporting Template (CMRT)Questionnaire
Due Diligence Guidance for Responsible Supply
Chains of Minerals
Supply Chain Management andIndustry CooperationInnovation Empowermentand Quality ServiceCorporateGovernance
Employment Management andHarmonious Workplace
Green Development andSocial Contribution
ConflictMinerals Management Policy
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Industrial SynergyAs a leading company in the design of data-processing and interconnect chips, Montage Technology plays apivotal role in advancing, reforming, and developing the entire industry. Since its inception, MontageTechnology has established effective cooperation, sharing, and growth mechanisms with partners in theindustry chain, thereby contributing to a vibrant, efficient, and internationally competitive semiconductorindustry ecosystem.
Leveraging cutting-edge technology, Montage Technology collaborates with various parties to developsolutions for industry intelligently upgrading. At the same time, we share innovative ideas with our partnersthrough active participation in exchange seminars, joint innovation, and other ways, thereby promotingindustrial technology innovation and application.
Dr. Yang Attended the World Internet Conference and Delivered a Speech
On November 9, 2022, the Wuzhen Summit of the WorldInternet Conference 2022 (WIC 2022), themed "Building aNetworked World and Creating a Digital Future", took placein Wuzhen, Zhejiang Province. Dr. Howard Yang, Chairmanand CEO of Montage Technology, was invited to deliver aspeech. He emphasized that the thriving digital economyhad become a vital engine for national economic and socialdevelopment, and that consolidating the base of the digitaleconomy and providing high-performance, high-securityand high-reliability chips for the digital infrastructure wasexactly the cause for which Montage Technology had beenstriving for years.
Open Ecosystem
Industry Association Participation
Dr. Yang delivered a speechat the conference
Montage Technology
2022 Key IndustryEvents (Partial)
Open Data Center Summit
Intel IRUM Fall 2022 & Intel Innovation 2022Flash Memory Summit
JEDEC Solid State Technology Association Board Member
PCI-SIG Alliance Members
Shanghai Integrated Circuit Association Vice President UnitChina Integrated Circuit Design Innovation Alliance Board Member
CXL Alliance Members
Intel China Data Center Partner Technology SummitChina Electronic Information ExpoWorld Internet ConferenceWorld Semiconductor Conference and NanjingInternational Semiconductor Expo
Supply Chain Management andIndustry CooperationInnovation Empowermentand Quality ServiceCorporateGovernance
Employment Management andHarmonious Workplace
Green Development andSocial Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Montage Technology is committed to fostering industry integration and leveraging its resources in the industry chain to stimulate industry development through investments and value-added services. During the reportingperiod, the Company invested in Credo Technology and DIOO, both of which have successfully gone public.
Partner Empowerment
DIOODIOO Microcircuits Co., Ltd. Jiangsu (DIOO, stock code:
688381) is an integrated circuit and chip design enterprisespecializing in the R&D, design, and sales of high-performance analog chips. Currently, the company boastsover 1,200 product models of signal chain analog chipsand power management analog product. DIOO ownsmany leading products in the industry includingUSB2.0/3.1 components, ultra-low power consumptionand high-precision operational amplifier components, LEDlighting semiconductor components, and high-efficiencypower management components.
Credo Technology
Founded in 2008, Credo (NASDAQ: CRDO) is a globallyleading semiconductor design company. It specializesin the development of SerDes, a physical layer high-speed communication technology. Credo provides low-cost, low-power, state-of-the-art, ultra-high-speed,single-channel 112G/56G/28G commercial solutionscatering to mobile Internet, cloud computing, big data,5G, and AI applications.
Supply Chain Management andIndustry CooperationInnovation Empowerment
and Quality ServiceCorporateGovernance
Employment Management andHarmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Employment Management
and Harmonious Workplace
Employees are the most vital asset of Montage Technology and the primary drivingforce for the Company to achieve sustainable development. The Company adheresto a people-oriented principle, upholds fair recruitment practices, safeguards thefundamental rights of each employee, and places a strong emphasis onoccupational health and safety. Simultaneously, we prioritize talent cultivation anddevelopment and establish a robust training and development system to enhanceour employees' professional competencies, skills, stimulate their vitality andcreativity. We encourage employees to grow along with us.
Human Capital DevelopmentLabor ManagementOccupational Health and SafetyEmployee Rights and BenefitsDiversity and Inclusion
Talent AttractionMontage Technology adheres to equal and compliant employment practices, enhances a reasonable anddiversified compensation mechanism, safeguards employees' human rights and other interests, cares fortheir physical and mental health, and boosts their enthusiasm and team cohesion.
Montage Technology strictly complies with relevantlaws and regulations such as
, along with laborpolicies and regulations applicable in our operationallocations. We have also formulated internalregulations including the
to comprehensively protect thelegitimate rights and interests of employees inrecruitment, promotion, salary and benefits, collectivenegotiation, and other aspects. We uphold theprinciples of fairness and justice, steadfastly eradicatediscrimination based on nationality, age, ethnicityrace, gender, or religion and discrimination due to illness, psychological and physical disabilities, andprovide equal employment opportunities for all. During our operations, we strictly prohibit any form of childlabor and forced labor, and strictly prohibit behaviors such as corporal punishment, intimidation,harassment, abuse, and discrimination against employees. During the reporting period, MontageTechnology maintained a labor contract signing rate and commercial insurance coverage rate.
the Labor Law of thePeople's Republic of China and the Labor Contract Lawof the People's Republic of China
Employee Handbook andRecruitment Policy
100%
The Company conducts regular recruitment demand forecasting and actively establishes talent poolsthrough various channels such as social recruitment, campus recruitment, and academia-industry jointtraining.
Diversified Hiring Practices
Employeedistributionby gender71%
%
6%
64%
30%
73%
17%
10%
As of the end of the reporting period, the Company had a total ofemployees, divided bygender, age, function and education degree as follows.
Employeedistributionby age
Female Male30 and below31-5051 and above
Employeedistributionby function
R & DMarketingManagement and
supporting
43%51%
3%
2%1%Employeedistributionby education
degree
Doctoratedegree
Master'sdegree
Bachelor'sdegreeJunior collegedegree
High school degree
and below
the Labor Law of the
People's Republic of China the Labor Contract Lawof the People's Republic of China
Employee Handbook andRecruitment Policy
Supply Chain Management andIndustry CooperationInnovation Empowermentand Quality ServiceCorporateGovernance
and
Employment Management and
Harmonious Workplace
Green Development andSocial Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Montage Technology has established a compensation and incentive system that aligns with the Company'sstrategic development goals and offers differentiated and competitive compensation packages foremployees at various positions and levels. Beyond the base salary, Montage Technology provides equityincentives, special bonuses, and other compensation incentives to attract and retain talent, fosteringmutual growth and development of both the employees and the Company.
Compensation and Incentives
Intellectual Property IncentiveRecognizing employees' innovative contributions,Montage Technology directly links innovation to income,enabling employees involved in innovation to share thebenefits of technological advancements fairly andreasonably.
Equity Incentive
To ensure employees partake in the Company's developmental accomplishments, we havelaunched two restricted stock incentive plans for employees since 2019.During the reporting period, a total of 338 incentiverecipients were allocated restricted stocks under the 2019restricted stock incentive plan, representing 52.73% of thetotal number of employees at the end of the reportingperiod. By the end of the reporting period, a total of 264incentive recipients were granted restricted stocks under therestricted stock incentive plan, accounting for 41.19% ofthe total number of employees at the end of the period.
Talent DevelopmentMontage Technology places high value on the growth and development of each employee. To unleash theirpotential and foster self-improvement, the Company provides clear and diverse development paths andtalent advancement channels. The Company has also set up tailored and varied training courses toempower employees in all aspects and promote their career planning and development.
Talent AdvancementTo reinforce the development of our talent pipeline, Montage Technology has clearly defined thepromotion path and process for employees, strengthened the management of job promotion and internaltransfer, and established multiple promotion channels. Employees can apply for other positions throughperformance evaluation, recruitment competition, department head recommendation, and other methods,thereby with ample growth space and development opportunities for all employees.
During the reporting period
117 patent awardsthe Company issued a total of
94%
During the reporting periodthe comprehensive coveragerate of the Company's equityincentives was
The Company has established the , which mandates each department todevelop an assessment plan based on job characteristics. Employees are assessed on parameters such asjob performance and task completion to ensure the fairness and effectiveness of the evaluation. Tomaintain the objectivity of the assessment process, the Human Resources Department conducts a unifiedreview of the assessment results and makes them public. Based on the performance appraisal results, theCompany provides incentives like salary adjustments, promotions, and equity distribution to employees.Moreover, the Company has established a performance feedback and improvement mechanism. On onehand, if employees have concerns about their performance results, they can provide timely feedback to theHuman Resources Department. On the other hand, departmentleaders and the Human Resources Department can communicatewith the evaluated employees in a timely manner, offering pastperformance summaries, future work guidance, andpsychological counseling, thereby helping employees improvetheir work abilities and qualities.Through performance management, the value of each employeeis objectively and fairly assessed, their work enthusiasm isstimulated, and talents are attracted and retained.
Performance Management Policy
Performance Management
100%
the coverage rate of performanceand career development assessmentfor employees wasDuring the reporting period
Performance Management Policy
Supply Chain Management andIndustry CooperationInnovation Empowerment
and Quality ServiceCorporateGovernance
Employment Management andHarmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Montage Technology is committed to fostering a learning culture and providing a multi-dimensionaltraining plan for all employees, so as to support the development of our talent pool. The Company hasdevised targeted training programs for different groups, including fresh graduates, new hires, existingemployees, and managers at all levels. These training programs cover a wide spectrum of areas such asgeneral knowledge, professional skills, and leadership, aiding in enhancing their professional competenceand capabilities, and facilitating their growth and development. During the reporting period, MontageTechnology independently developed and organized a total of 87 courses (spanning product knowledge,technology, management, and general skills), with an average training time of 22.75 hours per person,achieving a 100% training coverage rate.
Employee Training
Montage Star Program - Training for Fresh GraduatesThe Company has launched the Montage Star Program, specifically designed for freshgraduates, to help them transition smoothly from academia to the professional world withina span of 6 months. The program encompasses: a one-week immersive orientation (coveringcompany culture, roles and responsibilities of various departments, introduction to companyproducts, exhibition hall and laboratory visits, training exams, reading activities kick-off, CEOsymposium, team-building activities, target communication seminars, etc.), job skills andgeneral ability training, as well as mid-term and final assessments among other components.Training courses
Average training time
22.75
hours per person
Training coverage rate100%
Talent Training System
Training programfor managersMontage ChipProgramMontage StarProgram
A 6-month trainingprogram for freshgraduates
Montage Freshmen
Program
Training program fornew employees
Montage Youth
ProgramInternal technology andproject experience learningand sharing program
Supply Chain Management andIndustry CooperationInnovation Empowerment
and Quality ServiceCorporateGovernance
Employment Management andHarmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Academia-Industry CollaborationMontage Technology keeps deepening its academia-industry partnerships. The Company hasjointly established the "Integrated Circuit Design Frontier Technology Joint Laboratory" withShanghai Jiao Tong University, which has become a critical platform for collaboration betweenthe two entities. Since its inception in 2020, oriented toward scientific research and talentcultivation, the laboratory has been dedicated to fostering the comprehensive development ofintegrated circuits and artificial intelligence fields.
Health and Safety
Diverse Training InitiativesDuring the reporting period, Montage Technology offered rich courses tailored to the needs ofemployees at various levels and in different positions.
ManagementLevel
Management awareness, execution ability, business strategy, businesstrend, and communication capability
Work-relatedincidents
0%
GroupCourse content
BusinessDepartment
Technical skills, business goal setting, sales techniques, communicationskills, innovation awareness, intellectual property protection, andinformation securityNewEmployees
Company administration, finance, legal, intellectual property, qualitymanagement system, company culture, and product knowledge
During the reporting period
Work-relatedfatalities
Lost work hours forwork-related injuries
Absence rate
Health and safety are paramount in all our business operations. Montage Technology is committed topreventing workplace accidents, reducing occupational hazards, and maintaining a safe and comfortableworking environment. We strictly adhere to the relevant mandates, such as the
and. We persistently improve our internal regulations and systems foroccupational health and safety management. Regular supervision and inspection are conducted, and wecultivate a culture of safety awareness among employees through ongoing training and assessments,thereby promoting a healthy work environment. Moreover, Montage Technology has established stringentsafety management requirements for outsourced contractors in the infrastructure department, enforcedthrough contracts, and has also engaged supervisory companies to bolster on-site safety and civilconstruction management.
Montage Technology requires outsourcing companies to conduct self-inspection of safety management andcontinually oversee safety management review work through standardized inspection methods such asweekly safety meetings, daily inspections, special inspections, seasonal inspections, irregular spot checks,and flight inspections. In addition, we are constantly enhancing the management and improvement ofconstruction sites and personnel by placing construction notices and safety signs, implementing on-sitesafety protection measures, managing high-altitude operations, reinforcing training (including three-levelsafety training for newly recruited employees before assuming their roles, training for special operationpersonnel, etc.), and conducting training and drills for emergency rescue.
Occupational DiseasePrevention and Control Law of the People's Republic of ChinaGuidelines for Occupational Health andSafety Management Systems
Occupational DiseasePrevention and Control Law of the People's Republic of ChinaGuidelines for Occupational Health andSafety Management Systems
We mandate that construction contractors have a robust safety management system, including a safetyresponsibility system, safety technical delivery system, safety education system, safety inspection system,special operators account and licensing system, safety assurance plan, emergency plan, and specialconstruction program.The supervisory company is primarily responsible for site safety and civil construction management. Theymust uphold the relevant safety management system and oversee the entire project process in strictcompliance with pertinent laws and regulations. If any safety hazards are identified, MontageTechnology must be notified promptly, and the project must halt for immediate rectification. Theimplementation of the rectification plan is monitored until all the safety risks have been eliminated.
Supply Chain Management andIndustry CooperationInnovation Empowermentand Quality ServiceCorporateGovernance
Employment Management andHarmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Employee Care
Montage Technology places a significant emphasis on the welfare and satisfaction of each of itsemployees. We actively seek their feedback, continue to augment our employee care services, andendeavor to enhance their feelings of fulfillment, accomplishment, and contentment.
Montage Technology has established robust channels for employee feedback and maintains a consistentand fruitful dialogue with the employees. We foster an open atmosphere for communication by holdingregular employee meetings and promoting cross-hierarchical interaction, ensuring we are always attunedto our employees' needs.Additionally, the Company provides various avenues for reporting grievances and complaints to safeguardthe rights and interests of the employees. Discrimination and harassment are strictly forbidden under ourzero-tolerance policy. If such situations arise, employees can report incidents through the Company'sdedicated complaint email box or during employee meetings. The Company firmly protects the privacy ofthose who come forward and vigilantly prevent any form of retaliation.
Employee Communication
The Company has implemented a comprehensive benefits system focusing on the holistic quality of ouremployees' work-life balance. The Company provides non-compensatory benefits, such as holidayallowances, social insurance, additional commercial insurance, and regular health check-ups for allemployees.
Employee Benefits
Employees are entitled to all statutory holidays, paid annual leave, personal time off, paid sick leave,marriage leave, maternity and paternity leave, breastfeeding leave, bereavement leave, and publicholidays. Montage Technology further supplements these with additional welfare leaves, to ensureour employees maintain a healthy work-life balance.
Holiday Benefits
In accordance with the needs of our employees, Montage Technology provides supplementarycommercial insurance for them and their children, which includes coverage for major illnesses,accidents, and medical care, thereby ensuring comprehensive protection for our employees' families.
Insurance Benefits
Workplace EnvironmentIn 2022, Montage Technology relocated itsheadquarters to a new office, offering a morespacious and comfortable office environment forthe employees.
Festival Benefits
Montage Technology acknowledges major festivals with celebratory activities and providesadditional allowances to all employees on these occasions.
Mental Health
Understanding the importance of mental health, we have officially initiated the "Employee CareProject (EAP)" to offer professional mental health services to our employees.
MaternalBenefits
Montage Technology has establisheda dedicated mother-and-baby roomand provides maternity leave inaccordance with regulations.Supply Chain Management andIndustry CooperationInnovation Empowermentand Quality ServiceCorporateGovernance
Employment Management andHarmonious Workplace
Green Development andSocial Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Pandemic Care
During the Shanghai pandemic in 2022, the Company was concerned with the healthand safety of all employees. We actively collected supplies and provided epidemic giftpackages to employees who were confined at home due to the epidemic, helping tosolve the material difficulties and making employees feel the care and warmth of theCompany.
Diverse ClubsMontage Technology organizes a variety of sports clubs for employees to foster an activeand healthy lifestyle. These include a badminton club, a basketball club, a tennis club, and ayoga club, among others.
Basketball ClubYoga ClubBadminton Club
Montage Technology strongly encourages employees to enrich their daily lives even during work hours.We organize a diverse range of activities aimed at promoting both physical and mental health amongour workforce. Through these initiatives, we aim to foster a sense of belonging and identity within ouremployees and to enhance their connection to the Company.
Employee Activities
Badminton clubBasketball clubTennis clubYoga club
Club ActivitiesEmployee birthday party
Annual travelFun sports meetingTeam activitiesMonthly employee birthday party tocelebrate the birthdays of employeeswho have birthdays that month
Supply Chain Management andIndustry CooperationInnovation Empowermentand Quality ServiceCorporateGovernance
Employment Management andHarmonious Workplace
Green Development and
Social Contribution
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Green Development
and Social ContributionMontage Technology is actively engaged in achieving carbon neutrality,practising green and low-carbon concepts, and implementing sustainableoperational practices, including energy conservation and emissionreduction. Concurrently, we maintain a strong focus on social welfare,actively fulfill our social responsibilities, and strive for a harmonious andsustainable co-development of our company, society, and the environment.
Waste and Hazardous Substance ManagementEnvironmental Advocacy and CooperationWater Resources and Effluents ManagementEnergy ManagementClimate Change and GHG ManagementCommunity Engagement
Green Office
Notes:
a. The Company's main direct energy source is gasoline, and the main indirect energy source is purchased electricity.b. Total energy consumption is calculated in accordance with the conversion factors of the
of the national standard of the People's Republic of China.
General Principles for Calculation of Comprehensive Energy Consumption (GB/T2589-2020)
aEnergy Use
KPI2022Unit
GasolinePurchased electricity
bTotal energy consumption Direct energy consumption Indirect energy consumption Comprehensive Energyintensity
2,8883,225.783,251.38
25.60
3,225.78
5.57
LiterMWhMWhMWhMWhMWh/Person
Climate Change Mitigation
Aligning with national strategies, Montage Technology actively addresses climate change issues andintegrates environmental protection principles into the daily operation and management practices.
Energy Conservation and Consumption Reduction
Upgrading the intelligent management of office air conditioning to achieve energy savingthrough online remote device managementStandardizing the use of office lighting and turning off lights in the corresponding area undergood natural light during the dayTurning on the lights and air conditioning only in the corresponding work area duringovertime work to avoid energy waste caused by large-scale use of air conditioning or lightingLaunching printing and copying equipment with sleep mode which could automaticallyreduce power usage when not in useSuggesting that the employees turn off electrical devices such as air conditioning, computers,and fans when leaving the office for a long time
Green InitiativeElectricity and water saving:
Paperless office:
Garbage sorting:
The posters and signs are posted in theoffice, and we encourage employees to turn off lights and taps whenleaving, thus promoting resource conservation.
Employees are encouraged to adopt sustainableprinting practices, such as double-sided printing and using black andwhite mode, to reduce paper consumption. Moreover, the use ofsecond-hand paper for printing internal documents is advocated to minimize paper waste.
The Company has dry and wet waste recycling bins in the tea rooms on eachfloor. Coupled with the display of waste sorting advocacy signage, we aim to ensure theeffective implementation of waste segregation and to contribute to our broader environmentalconservation efforts.
General Principles for Calculation of Comprehensive Energy Consumption (GB/T2589-2020)
Montage Technology adheres stringently to laws and regulations such as the
. In thecourse of our operations, we endeavor to cultivate a heightened awareness among our employees aboutthe importance of energy conservation and emissions reduction. Our goal is to minimize resource wasteand jointly foster an efficient, energy-saving, and environmentally friendly office environment.
Environmental Protection Lawand the Energy Conservation Law of the People's Republic of China, among other relevant statutes
Environmental Protection Law
and the Energy Conservation Law of the People's Republic of China, among other relevant statutes
Supply Chain Management andIndustry CooperationInnovation Empowermentand Quality ServiceCorporateGovernance
Green Development andSocial ContributionEmployment Management and
Harmonious Workplace
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
The predominant source of greenhouse gas emissions within Montage Technology stems from energyconsumption during our operational processes. We are steadfast in our adherence to relevant industryenergy-saving laws and standards within our operational areas, proactively conducting energymanagement and monitoring initiatives, and promoting meticulous energy use management. In addition,we are committed to improving our energy structure through the renovation and upgrade of energy-consuming equipment and the active exploration of renewable energy sources to enhance our energyutilization efficiency. During the reporting period, the Company's greenhouse gas emissions were asfollows.
a
Greenhouse Gas (GHG) Emissions
GHG emissions (Scope 1)GHG emissions (Scope 2)Total GHG emissions(Scope 1 + Scope 2)Total GHG emissions intensity
2022
6.52
1,808.661,815.18
3.11
Unit
tons of COe
tons of COe
tons of COe
tons of COe/person
Montage Technology places great emphasis on monitoring resource consumption and waste generationthroughout our operational processes. Our aim is to continually enhance resource utilization rates as part of ourcommitment to fostering sustainable and green operational practices and development.Environmental Footprint ReductionGreenhouse Gas Emission Reduction
Montage Technology is firmly committed to the strict implementationof a water conservation system. We adhere to stringent water-savingmanagement practices within our daily office environments andundertake a variety of water-saving measures. These include theoptimization and upgrade of equipment, the intensification ofwastewater treatment, and the recycling of water resources. Inaddition, we are dedicated to fostering a culture of waterconservation among our employees.
Water ManagementDuring the reporting period
4,973.41ton
8.52ton per person
the total water consumptionof the Company waswith the intensity figure of
Notes:
a. Greenhouse gas emissions from various Montage Technology operating locations are calculated in accordancewith the rules applicable to the specific country where the office operates. For instance, our China office computes itsgreenhouse gas emissions in line with the
issued by the National Development and Reform Commission of the People's Republic of China andthe issuedby the Ministry of Ecology and Environment of the People's Republic of China. Meanwhile, our US office calculates itsgreenhouse gas emissions using the issued by the US EnvironmentalProtection Agency.
Guidelines for Calculating and Reporting Greenhouse Gas Emissions ofOther IndustriesNotice on Management of Greenhouse Gas Emission Reporting for Power Industry Enterprises from 2023 t
Emission Factors for Greenhouse Gas Inventories
Guidelines for Calculating and Reporting Greenhouse Gas Emissions of Other
Industries (Trial)Notice on Management of Greenhouse Gas Emission Reporting for Power Industry Enterprises from 2023 to 2025
Emission Factors for Greenhouse Gas Inventories
Montage Technology stringently adheres to relevant laws and standards regarding pollutant disposalmanagement. We advocate for the standardized treatment and discharge of solid, liquid, and gaseous wastes,and aim to bolster environmental awareness among all employees as part of our green operations initiative.Concurrently, we intensify our efforts towards waste recycling to achieve significant waste reduction.Through the judicious recovery and disposal of waste, we strive to repurpose and derive value from what wouldotherwise be discarded, thereby effectively transforming waste into wealth and cultivating a more sustainableoperational model.
Waste Management
Waste gasWaste gas mainly comes from automobile exhaust and diesel generatorsEffluents
Effluents are discharged into the municipal sewage pipeline and eventually enter thewastewater treatment plantAccording to the monitoring results, the effluents discharged by the Company meet thecompliance requirements of the operating area
Solid waste
Solid waste mainly consists of domestic garbage generated by employees in the officeWaste sorting is actively carried out to promote resource recycling in all division officesFor hazardous waste such as batteries, the Company has a waste battery recycling box forunified recyclingAt present, 100% of the Company's solid waste is handed over to the property managementcompany for disposalSupply Chain Management andIndustry CooperationInnovation Empowermentand Quality ServiceCorporateGovernance
Green Development andSocial Contribution
Employment Management and
Harmonious Workplace
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
The Company is committed to actively fulfilling its corporate socialresponsibility, offering steadfast support and assistance to societal andcommunity development, and tirelessly striving to keep a harmoniousbalance between the Company and the society at large. Moreover, wedesign and implement pragmatic public welfare support plans led by oursenior leadership to foster a culture of active participation among all ouremployees. During the reporting period, we sustained close-knitcooperation with public welfare foundations, bolstering our corporateimage through generous donations, dedicated volunteer services, andaltruistic blood donations.
Social Welfare and Charity
Special Fund to Support School Construction
During the reporting period, the Company inaugurated the "Montage Cultural and EducationalSpecial Fund" under the auspices of the Shanghai Charity Foundation. This fund is exclusivelyearmarked for the construction of the comprehensive building project at Fengshan ElementarySchool, located in Baoxiu Town, Shiping County, in the Honghe Prefecture of Yunnan Province.The project is presently underway and making steady progress towards its completion.
Construction site of public welfare campus project
Actively Fulfilling Social Responsibilities
during the PandemicDuring the Shanghai 2022 pandemicperiods, Montage Technology took proactivemeasures to fulfill the social responsibilities.A dedicated task force was established,leveraging the Company's geographicallydiverse layout to efficiently coordinateresources and procure essential pandemicprevention supplies. Through our liaisonwith the XuHui District Political ConsultativeConference, we were able to donate aconsiderable quantity of these preventionmaterials to local communities. Thiscontribution was instrumental in supportingthe tireless efforts of front-line workers intheir crucial pandemic prevention andcontrol work.
Donation of pandemic prevention supplies
CNY 600,000
We organized a totalof volunteer activitiesthroughout the year
donated goods andcash worth more than
cheer upcheer up
Supply Chain Management and
Industry CooperationInnovation Empowerment
and Quality ServiceCorporateGovernance
Green Development andSocial Contribution
Employment Management and
Harmonious Workplace
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Invitation Extended to Montage Technology'sGeneral Manager to Partake in the Torch Relay for
Beijing 2022 Winter OlympicsMr. Stephen Tai, General Manager of Montage Technology, was invited to be the 35thtorchbearer in the Beijing Grand Canal Forest Park relay zone. On the afternoon of February4th, Mr. Stephen Tai held the "Flying" torch and completed the handover of the torch with theprevious torchbearer. With high spirits, he strode to the next relay point, handing over the torchwith the Olympic spirit to the next torchbearer smoothly.As the co-founder and General Manager of Montage Technology, Stephen Tai feels extremelyproud to become a torchbearer. He said, "Like many chip companies, Montage Technology hasalways adhered to the craftsmanship spirit of excellence and innovation, which perfectlymatches the Olympic motto of 'Faster, Higher, Stronger'. The relay of the Olympic torch willfurther inspire every Montage Technology employee to overcome difficulties, pursue excellenceand contribute to the development of the IC industry! We wish the Beijing Winter Olympics aperfect success, and we wish China's IC industry will carry on the Olympic spirit, continue tomove forward, and strive for a better future!"
Montage Technology 's General Manager participated in Winter Olympics Torch Relay
Voluntary Blood Donation
Montage Technology organized employees to participate in blood donation activities
In 2022, the Company proudly hosted an annualemployee blood donation drive, with our esteemedGeneral Manager, Mr. Stephen Tai, setting an exemplaryprecedent by being the first to participate. Our employeesdemonstrated their unwavering commitment andenthusiasm by actively engaging in this noble cause.Through selfless blood donations and the expression ofcompassion, we not only embodied the essence ofgenuine human connection, but also effectively fulfilledour corporate social responsibility.
Supply Chain Management andIndustry CooperationInnovation Empowermentand Quality ServiceCorporateGovernance
Green Development and
Social ContributionEmployment Management andHarmonious Workplace
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Appendix I: Key Performance Indicators
Energy Use
Gasoline consumptionPurchased electricity usage
Comprehensive energy consumptionDirect energy consumptionIndirect energy consumptionComprehensive energy consumption intensity
LiterMWhMWhMWhMWhMWh/person
Greenhouse Gas EmissionsTotal GHG emissionsScope 1Scope 2GHG emissions intensity
Tons of COe
Tons of COe
Tons of COe
Tons of COe/person
Water Resources
2,8883,225.783,251.38
25.60
3,225.78
5.57
1,815.18
6.52
1,808.66
3.11
4,973.41
8.52
TonsTons/personTotal water consumptionWater consumption intensity
2022 Environmental Key Performance Indicators
General solid waste generationPaper consumption in office
Waste Disposal
25.71
35.07
TonsTen thousand sheetsNote:
1. The main direct energy source involved in the Company is gasoline, and the main indirect energy source is purchased electricity.
2. Comprehensive energy consumption is accounted for in accordance with the(GB/T 2589-2020) conversion factor of the National Standard of the People's Republic of China.3.
General Rules for CalculatingComprehensive Energy Consumption
ValueUnitKey Performance Indicators
ValueUnitKey Performance Indicators
General Rules for CalculatingComprehensive Energy ConsumptionGreenhouse gas emissions from various Montage Technology operating locations are calculated inaccordance with the rules applicable to the specific country where the office operates. For instance, ourChina office computes its greenhouse gas emissions in line with the
issued by the National Development andReform Commission of the People's Republic of China and the
issued by the Ministry of Ecology andEnvironment of the People's Republic of China. Meanwhile, our US office calculates its greenhouse gasemissions using the issued by the US EnvironmentalProtection Agency.
Guidelines for Calculating andReporting Greenhouse Gas Emissions of Other Industries
Notice on Management of GreenhouseGas Emission Reporting for Power Industry Enterprises from
Emission Factors for Greenhouse Gas Inventor
Guidelines for Calculating and
Reporting Greenhouse Gas Emissions of Other Industries (Trial)
Notice on Management of Greenhouse GasEmission Reporting for Power Industry Enterprises from 2023 to 2025
Emission Factors for Greenhouse Gas Inventories
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
2022 Social Key Performance Indicators
%%Person
By Function
By Age
Employment
PersonPerson
Full-time and Part-time EmployeesFull-time employeesPart-time employees
By Education Degree
%
Employee RatioBy Gender
%%MaleFemale
%%%30 years old and below31 to 50 years old51 years old and aboveR&DMarketingManagement and supporting
%%%
%
70.83
29.17
29.64
41.12
6.24
Bachelor's degreeJunior college degreeHigh school degree and below
%%%
Health and Safety
CasesPersonHours
%
Employee Training
Percentage of trained employeesAverage training hoursAverage training hours for male employeesAverage training hours for female employees
%HoursHoursHours
Performance and Career Development Reviews
Percentage of employees receiving regularperformance and career development reviews
%
22.75
24.96
10.45
Suppliers
Supplier responsible mineral procurement survey coverage%100
Compensation Incentives
Patent rewardComprehensive coverage of equity incentives
Person
%
IndicatorsValueUnit
Signing rate of labor contractsCommercial insurance coverageTotal number of employees
Doctorate degreeMaster's degree
IndicatorsValueUnit
By Education Degree
Number of work-related incidentsNumber of work-related fatalitiesLost work hours for work-related injuriesAbsence rate
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Appendix II: GRI Content Index
Statement of useGRI 1 usedGRI 1: Foundation 2021
Montage Technology has reported the information cited in this GRIcontent index for the period from January 1, 2022 to December 31,2022 with reference to the GRI Standards.
GRI 2: General Disclosures 2021The organization and its reporting practices2-12-22-32-4
Activities and workers
2-62-7
39-4050-51
Governance
2-92-102-11
Organizational detailsEntities included in the organization’ssustainability reportingReporting period, frequency andcontact pointRestatements of informationActivities, value chain and otherbusiness relationshipsEmployees
Governance structure and compositionNomination and selection of thehighest governance bodyChair of the highest governance body
15-1615-1615-16
23-2523-25
2-122-132-142-16
ESG Governance23-25
39-40
39-40
Delegation of responsibility formanaging impacts
Policy commitments
Embedding policy commitments
2-22
2-23
2-24
Risk ManagementESG Governance23-2517-18
23-2517-18
About Montage TechnologyAbout This ReportAbout This ReportNo information restatement
Business FieldTalent AttractionAppendix I: Key Performance Indicators
GRIStandard
DisclosureChapter IndexPage
Governance StructureGovernance StructureGovernance Structure
GRIStandard
DisclosureChapter IndexPage
Governance
Role of the highest governance bodyin overseeing the management ofimpacts
Risk ManagementESG GovernanceRole of the highest governance bodyin sustainability reporting
ESG GovernanceESG GovernanceCommunication of critical concerns
Strategy, policies and practices
Statement on sustainabledevelopment strategy
Business EthicsSupply Chain ManagementResponsible Minerals SourcingTalent AttractionBusiness EthicsSupply Chain ManagementResponsible Minerals SourcingTalent Attraction
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Stakeholder engagement
GRI 3: Material Topics 2021
EconomicGRI 201: Economic Performance 2016
GRI 204: Procurement Practices 2016
GRI 205: Anti-corruption 2016
205-2205-3
EnvironmentalGRI 302: Energy 2016
Communication and training aboutanti-corruption policies and proceduresConfirmed incidents of corruptionand actions taken3-3
Management of material topics
Climate Change MitigationClimate Change MitigationAppendix I: Key Performance Indicators
46-4746-4750-5146-4750-51
3-3302-1
302-3
GRI 303: Water and Effluents 2018
GRI 305: Emissions 2016
Management of material topicsEnergy consumption within theorganizationEnergy intensity
50-51
3-3303-2303-5
Management of material topics
Water consumption
Management of material topicsDirect (Scope 1) GHG emissions
Climate Change Mitigation46-4746-473-3305-1
Strategy, policies and practices
2-262-272-28
36-37
During the reporting period, there were nosignificant instances of non-compliance, nofines or non-monetary sanctions resulting fromnon-complianceIndustrial Synergy
2-292-30
ESG GovernanceTalent Attraction
23-2539-40ESG GovernanceESG Governance3-13-2
23-2523-25
3-3201-1
Supply Chain Management3-334
2-25
Business EthicsProcesses to remediate negativeimpactsMechanisms for seeking advice andraising concernsCompliance with laws and regulationsMembership associations
Approach to stakeholder engagementCollective bargaining agreementsProcess to determine material topicsList of material topics
Management of material topicsDirect economic value generated anddistributedManagement of material topicsManagement of material topicsBusiness Ethics3-3
GRIStandard
DisclosureChapter IndexPage
Business Ethics
Financial PerformanceFinancial Performance
GRIStandard
DisclosureChapter IndexPageGRI 205: Anti-corruption 2016
Business EthicsBusiness Ethics
GRI 206: Anti-competitive Behavior 2016
Business Ethics
Climate Change MitigationAppendix I: Key Performance IndicatorsEnvironmental Footprint ReductionManagement of water discharge-related impacts
Environmental Footprint ReductionEnvironmental Footprint ReductionAppendix I: Key Performance Indicators
Climate Change Mitigation
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
GRI 403: Occupational Health and Safety 2018
3-3403-1403-2403-5403-6403-7403-9403-10GRI 404: Training and Education 2016
Talent DevelopmentTalent DevelopmentTalent DevelopmentAppendix I: Key Performance Indicators
3-3404-2404-3GRI 405: Diversity and Equal Opportunity 2016
Management of material topicsPrograms for upgrading employeeskills and transition assistance programsPercentage of employees receivingregular performance and careerdevelopment reviews
3-3405-1
50-51
40-4240-4240-4250-5139-4039-40
GRI 305: Emissions 2016
305-1305-2305-4
50-5146-4750-5146-4750-51
GRI 306: Waste 2020
GRI 308: Supplier Environmental Assessment 2016
SocialGRI 401: Employment 2016
Management of material topicsManagement of significant waste-related impactsWaste generated
Supply Chain ManagementSupply Chain Management3-3308-1
Management of material topicsNew suppliers that were screenedusing environmental criteria
Talent AttractionTalent AttractionAppendix I: Key Performance IndicatorsEmployee Care
Management of material topicsNew employee hires and employeeturnover rateBenefits provided to full-timeemployees that are not providedto temporary or part-time employees
3-3401-1401-2
39-4039-4050-5143-44
GRIStandard
DisclosureChapter IndexPage
Management of material topicsAppendix I: Key Performance Indicators
Climate Change MitigationAppendix I: Key Performance IndicatorsClimate Change MitigationAppendix I: Key Performance Indicators
Energy indirect (Scope 2) GHGemissionsGHG emissions intensity
3-3306-2306-3
Environmental Footprint ReductionEnvironmental Footprint ReductionAppendix I: Key Performance Indicators
50-51
GRIStandard
DisclosureChapter IndexPageManagement of material topicsOccupational health and safetymanagement systemHazard identification, risk assessment,and incident investigationWorker training on occupationalhealth and safetyPromotion of worker healthPrevention and mitigation ofoccupational health andsafety impacts directly linked bybusiness relationshipsWork-related injuriesWork-related ill health
Health and SafetyHealth and SafetyHealth and SafetyHealth and SafetyHealth and SafetyHealth and SafetyHealth and SafetyAppendix I: Key Performance IndicatorsHealth and Safety
Management of material topicsDiversity of governance bodies andemployees
Talent AttractionTalent Attraction
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
GRI 418: Customer Privacy 2016
Management of material topics3-3Information Security21-22
GRI 406: Non-discrimination 2016
Talent AttractionGRI 408: Child Labor 2016GRI 409: Forced or Compulsory Labor 2016
GRI 413: Local Communities 2016
Social Welfare and CharityGRI 414: Supplier Social Assessment 2016
Supply Chain Management
Responsible Minerals Sourcing
Management of material topics
Management of material topicsManagement of material topicsManagement of material topics
Management of material topicsNew suppliers that were screenedusing social criteria
GRI 416: Customer Health and Safety 2016
Quality Management
GRI 417: Marketing and Labeling 2016
Management of material topics
User Experience
3-33-33-33-3
3-3414-1
3-3416-1
3-3417-1
GRIStandard
DisclosureChapter IndexPage
Talent AttractionTalent Attraction
Supply Chain ManagementResponsible Minerals Sourcing
Assessment of the health and safetyimpacts of product and servicecategories
Quality Management
Management of material topicsRequirements for product and serviceinformation and labeling
User Experience
GRIStandard
DisclosureChapter IndexPage
39-4039-4039-4048-49
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report
Feedback and Suggestions
Dear ReaderThank you for reading the
. In order to provide you and other stakeholders with more professionaland valuable information regarding our ESG management, and to constantly improve thequality of the report and promote the company's management and practice capabilities inESG, we sincerely invite your feedback on your true feelings and your enthusiasticsuggestions. Please do not hesitate to give us your comments!You can email or mail us your feedback. Our contact information is as follows:
Address：16/F, 181 Caobao Road, Montage Circle, Xuhui District, Shanghai 200233, ChinaPostal Code：200233Email：ir@montage-tech.com
,
2022 Environmental, Social and Governance (ESG) Report ofMontage Technology
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2022 Environmental, Social and Governance (ESG) Report ofMontage Technology
MONTAGE TECHNOLOGY2022 Environmental, Social and Governance (ESG) Report