Environmental, Social and Governance(ESG) Report
2023
An expert in intelligentelectrical solutions
Product quality and safetyInformation security protectionIntelligent work safetyGreen and responsible supply chain
Safety ResponsibilityPursuing solidand steadydevelopment
Topic: Green technology for low-carbondevelopment of enterprisesA sound environmental managementsystemResource and energy managementEmission managementGreen operation
Low-Carbon andEnvironmentalProtectionStriving to be agreen pioneer
Humanistic careIndustry cooperationCommunity public welfare
Working TogetherSafeguardingcommunitywell-being
Corporate governanceCompliance risk controlIntellectual property management
GovernanceSpeci?cationsStrengtheninginternalmanagement
Topic: Digital intelligent interactionleads the future of enterprisesCustomer serviceResponsible marketing
Digital and IntellectualDevelopmentGrasping theopportunityof service
List of KPIsContent IndexFeedback
Message from OurChairmanAbout LAZZENHonors obtainedin 2023
About This Report
Table of Contents
Shanghai Liangxin Electrical Co., Ltd.
Form of release
Process for preparation
Basis of preparation
Source of data
Scope and boundary of the Report
Overview
About This Report
This Report is the second Environmental, Social and Governance (ESG) Report issued by ShanghaiLiangxin Electrical Co., Ltd. (hereinafter referred to as "LAZZEN", "We" or "the Company") tostakeholders.
The information disclosed in this Report is consistent with the ?nancial information disclosed in our2023 Annual Report.
The ?nancial data in this Report comes from our audited ?nancial statements while other data isderived from the internal documents and information summary of the Company. Unless otherwisestated, Renminbi ("RMB") is the unit of measurement in respect of the currency and amountsreferred to in this Report. The Company ensures that there are no false records, misleadingstatements, or material omissions in this Report and is severally and jointly liable for theauthenticity, accuracy, and completeness of the report contents.
Based on our ESG practices, this Report is prepared as per the process "Project Research -Collection of Materials - Preparation and Revision - Review by Senior Management - Review by theBoard of Directors - Disclosure" and involves active communication with stakeholders on projectinitiation approval, preparation, and revision to determine and demonstrate the framework andcontents of this Report.
You can view or download the electronic version of this Report on the ocial website(sh-liangxin.com) of Shanghai Liangxin Electrical Co., Ltd. The Company will keep improving andenhancing our report disclosure level and ESG governance in the future. If you have any questionsor suggestions about this Report, please feel free to contact us:
Address: No. 2000, South ShenJiang Road, Pudong New Area, ShanghaiTel.: 86-21-68586699E-mail: liangxin@sh-liangxin.comThe Guide for Business Action on the Sustainable Development Goals (SDGs)Guidelines for Social Responsibility of Listed Companies by Shenzhen Stock ExchangeGRI Standards by the Global Sustainability Standards Board (GSSB)ISO 26000-2010: Guidance on Social Responsibility by ISOGuidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 5.0) bythe Chinese Academy of Social Sciences (CASS)National Standards of People's Republic of China: Guidance on Social Responsibility Reporting(GB/T36001-2015)
Chairman: Ren SilongShanghai Liangxin Electrical Co., Ltd.
2023 Environmental, Social and Governance (ESG) Report
Aiming to be "an expert in intelligent electrical solutions", we built an intelligent demonstration factory andimproved our management of occupational health and safety to promote the transformation of traditionalindustries into modern industries characterized by digital intelligence and standardization. We have beencommitted to constructing a "zero carbon factory" and prioritizing energy conservation, consumptionreduction, and green and low-carbon development as our long-term objectives. By building an intelligentenergy management platform and establishing a green recycling system, we improved the eciency ofenergy use and continuously optimized our environmental management initiatives.Our ongoing eorts and experience in research and development, innovation, quality control, customerservice and other aspects have laid a solid foundation for becoming a benchmark brand in the domestichigh-end market for low-voltage apparatus. In the future, we will continue to provide our customers withsolutions that are more cost-eective, more secure, and more intelligent. We look forward to collaboratingwith all our partners in a more open and inclusive manner to march forward together and achieve a win-winresult. We will make every eort to create value for our customers, accelerate the optimization of theindustrial structure, facilitate national dual-carbon strategic planning, and give full play to our leading role inthe intelligent electrical ?eld.In the future, we will implement measures to protect the environment, ful?ll our social responsibility, andimprove corporate governance by adhering to the ESG strategy. We will spare no eorts to build azero-carbon ecology for the intelligent apparatus ?eld to achieve sustainable development.
Message from Our Chairman
In 2023, all LAZZEN sta persisted in the lofty mission of "doing better than our best in low-voltage apparatus andworking together to build a new zero-carbon ecosystem of smart apparatus". Targeting the strategicdevelopment direction of "intelligent power distribution, smart home and new energy electrical technologies,industrialization and informatization, and integrated supply chain", we forged ahead with unremitting eorts. Wehave given great impetus to promote intelligent production, build a green and sustainable supply chain, andpromote the low-carbon and intelligent transformation of upstream and downstream industrial chains.Additionally, we made an active layout in new energy technologies and enhanced the construction of productionand information security to lead the new trend in the industry.
Mission and vision
Values
Social Responsibility
PhilosophyCompany overview
About LAZZEN
As a leading technology company, LAZZEN is committed to doing better than our best in low-voltageapparatus and working together to build a new zero-carbon ecosystem of smart apparatus. By making astrategic layout of intelligent power distribution, smart homes, and new energy electrical technologies andbuilding Shanghai headquarters, Hangzhou Bay Super Factory, and Xi'an Research Institute, we can provideinnovative system solutions for customers in ?elds like new energy, industry, electric power, information andcommunication, industrial control, building and home.We invest heavily (more than 6%) in R&D every year and continuously innovate our products and solutionsto make customers competitive. In 2014, LAZZEN was listed on Shenzhen Stock Exchange with stock codeSZ.002706. We have won honors such as National High-tech Enterprise, National Intellectual PropertyDemonstration Enterprise, National Green Factory and Manufacturing Champion, National Green FactoryDemonstration Enterprise, Future Factory of Zhejiang Province, and China's Best Managed Companyannounced by Deloitte China. We have also constructed a national enterprise technology center, apostdoctoral research station, and a testing center certi?ed by CNAS and UL, which laid a solid foundationfor independent innovation and sustainable development.At present, we have businesses covering more than 200 cities in China and more than 30 countries andregions. Our end-to-end service system enables us to provide ecient services to customers worldwide. Ourbrand slogan "Where there's electricity, there's LAZZEN" has been fully recognized by our customers.
To do better than our best in low-voltage apparatus and work together to build a new zero-carbon ecosystem of smartapparatus.Pursuit of customer success: Stay customer-centric, keep meeting customer demands, help customers succeed, andrealize common development for our customers, our company, our team, and individuals.Responsibility and ambition: Be ambitious, innovative, and brave enough to take and accept responsibility, and becomean industry expert trusted by customers.Pursuit of truth and introspection: Respect the law, seek truth from facts, be honest and trustworthy, grow byself-re?ection, ?nd the internal cause, constantly pursue excellence, and always work hard.Openness and collaboration:
Be inclusive to dierent cultures, listen to dierent opinions and suggestions, embrace changes,recruit talents, make concerted eorts towards the same goal, and pursue overall optimal results.
Provide high-quality products and services to society, operate in compliance with the law, deliver taxes as required byregulations, maintain sustainable and healthy enterprise development, innovate independently, and advance electricaltechnologies.Conserve resources, protect the environment, and actively participate in carbon-neutral and zero-carbon construction.Ensure the safety and health of employees while continuously enhancing their welfare conditions.Support public health and cultural development, and actively participate in charitable work.
1999
2014
20222005
2019
STAND
CT ACCORDINGLY
EEP PACE
ROUSED
IDE
KR
2023 Environmental, Social and Governance (ESG) Report
Keep pace with the times
Respond to thesituation
Ride on the momentum
Capitalize onthe trend
Start by followingthe trend
Milestones
To be an expert in smart apparatus solutions.To excel in intelligent power distribution, smart homes, and new energy electrical technologiesTo focus on low-voltage apparatus and implements a target concentration strategy.
Corporate strategyDevelopment strategy and milestones
When the national standards andmanufacturing standards were broughtforward and updated continuously inChina, LAZZEN established the ?rststandardized park in the Free TradeZone, laying a solid foundation forstandard production.
With the ongoing waves of entrepreneurshipand the rise of Chinese brands after twodecades of reform and opening up,LAZZEN's Chairman Ren Silong, worked withsix shareholders who had a common goalwith him, to start their business at Pudong,Shanghai.
LAZZEN ushered in an importantmilestone - listed on the ShenzhenStock Exchange with stock code002706. It was the ?rst listedenterprise primarily engaged inlow-voltage apparatus. The successfullisting enabled us to drive innovationby capital.
In the year marking the 20th anniversaryof its founding, LAZZEN reached arevenue target of RMB 2 billion underthe development policy "Start anewfrom the 20th anniversary".
LAZZEN actively responded to the
sustainable development strategy in the
context of the dual-carbon goal, with the
purpose of building a digital and
intelligent factory of the future and
contributing to industry development
and social prosperity.
Start Business inShanghai
Layout ofStandardManufacturingin FTA
A-share ListingGives Full Supportfor Innovation
Start AnewAfter TwoDecades ofDevelopment
Future Factories
Construct the
Bay Area
Together
The 6th AVE Award— 2022 Low-Voltage Apparatus
Industry in ChinaPioneer enterprise of green and
low-carbon manufacturing
The 6th AVE Award - 2022 QualityCircuit Breaker for Low-Voltage
Apparatus Industry in China
2023 2nd China Top 100Benchmarking IntelligentFactories (Haiyan factory)
2023 Top 10 Intelligent PowerDistribution System Brand Awards
The 6th AVE Award— 2022 Low-Voltage Apparatus
Industry in ChinaBest Low-Voltage Apparatus
Supplier
The 6th AVE Award—2022 Low-Voltage Apparatus
Industry in ChinaMost In?uential Brand
Organizing Committee for Selection Activities in the Low-Voltage Apparatus Industry
Organizing Committee for SelectionActivities in the Low-VoltageApparatus Industry
e-worksAWARDS
Demonstration Enterprise forGreen Design of IndustrialProducts (5th Batch)General Oce of the Ministry ofIndustry and Information Technology
2023 (1st Batch) GreenManufacturing DemonstrationEnterprise - Green Supply Chain
Shanghai Municipal Commission ofEconomy and Informatization,Shanghai Municipal Development &
Reform Commission
2023 High-tech EnterpriseShanghai Municipal Science and
Technology CommissionShanghai Municipal Finance Bureau
State Taxation AdministrationShanghai Municipal Tax Service, State
Taxation Administration
EY Entrepreneur of the Year 2023
Ernst & Young China
2023 Future Factory of Zhejiang
ProvinceEconomy and Information TechnologyDepartment of Zhejiang
2022 Science andTechnology-based SME ofZhejiang ProvinceDepartment of Science andTechnology of Zhejiang Province
Leader of the 6th ShanghaiIndustry and CommerceShanghai Federation of Industrial
EconomicsShanghai Federation of Economic
OrganizationShanghai Commercial AssociationShanghai Enterprise Federation
2023 Shanghai Harmonious Labor
Relations Enterprise
Shanghai Federation of Trade UnionsShanghai Municipal Human Resources
and Social Security BureauShanghai Enterprise FederationShanghai Entrepreneurs AssociationShanghai Federation of Industry and
Commerce
2023 Shanghai "Municipal May
Day Labor Award"
Shanghai Federation of Trade UnionsShanghai Municipal Human Resources
and Social Security Bureau
Best Managed Company in China
for the 5th BMC Program
Deloitte China
China National Intellectual
Property Demonstration
Enterprise
China National Intellectual Property
Administration
Enrolled in the list of "ThousandEnterprises and Hundred Cities"Brand Value Promotion Campaign
Oce of the China NationalIntellectual Property Administration
The First Batch of InnovativeSMEs of Zhejiang Province in 2023
Jiaxing Municipal Bureau of Economy
and Information Technology
2022 Digital Transformation
Demonstration Enterprise
Haiyan County People's Government ofHaiyan County Committee of the CPC
Outstanding Contributor to the Medical
Security of the 2022 Olympic WinterGames and Winter Paralympic Games
China Association of Medical Equipment
Honors obtained in 2023
环境、社会及公司治理（ESG）报告
1112
SDGs benchmarking
Our actions
Our concept
SafetyresponsibilityPursuing solid andsteady development
We prioritize safety control and quality management to ensure productand information safety. By following digital development trends, wehave constructed intelligent safety production lines and continuouslyimproved the occupational health and safety management system. Weadhere to the concept of sustainable development and strive to build asustainable supply chain for providing high-quality products to ourcustomers and enhancing our core competitiveness.
Product quality and safetyInformation security protectionIntelligent work safetyGreen and responsible supply chain
010203
Incoming materialManufacturing processCustomers
2023 Environmental, Social and Governance (ESG) Report
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Placement of revolving tray with electrostatic protection and optimized ESD control
Hangzhou Bay Super Factory improved ESD control.Case
2023 immediate incentive system for quality
Quality risk monitoring process
Quality management system
2026202520242023
LAZZEN 2023–2026 quality management strategy
Quality safety management
Product quality and safetyLAZZEN follows the business philosophy of "improving quality and creating quality products". We prioritizemarket demand and focus on product quality and safety. Based on our ecient management system andprofessional technical services, we provide customers with high-quality solutions while fully assuming theobligation to ful?ll safety responsibilities.
To achieve our vision of becoming an industry leader in product quality and making LAZZEN a symbol of highquality, we prioritize product safety and quality. We have implemented advanced quality information systemsto manage quality throughout the entire value chain. Our corporate culture prioritizes quality, encouraging aspirit of craftsmanship and responsibility. Additionally, we are committed to all-round quality control.
Improve product qualityby ?nding breakthroughsand carrying out leanquality improvementprojects.
The Company has established management systems such as the Integrated Management Manual, Proceduresfor Objectives and Management Measures, Quality Problem Escalation and Handling Mechanism, andMeasures for the Administration of Feedback, Handling, Backtracking, and Determining Responsibilities ofQuality Problems, which have improved the quality management system and monitored quality risksthroughout the process. In addition, we implemented integrated quality management and actively engagedthird parties to conduct quality evaluations. In 2023, we also implemented Measures for the Administration ofQuality Accountability, Incentives, and Appraisals. This includes establishing an immediate incentive systemfor quality, fostering a positive quality atmosphere, and strengthening quality leadership and cultureconstruction. Currently, the Company has passed ISO 9001 Quality System Certi?cation.
Integrate product qualityfully into corporatemanagement throughstrict enforcement.
Achieve industry-leadingproduct quality througheective promotion.
Set a benchmark forproduct quality to reachthe standard of theindustry benchmark.
Incoming materials are inspectedand managed through the QMSsystem. Incoming materialexceptions are reviewed throughthe OA system. Suppliers will benoti?ed through the SRM systemif improvement is required.
We have set up 5 awards:
Quality Contribution Award,Quality Breakthrough Award,Customer First Award, QualityCommitment Award, andQuality Capacity BuildingAward
To minimize the damage caused by static electricity to electronic products and standardize the operation andmanagement of electrostatic protection, we have implemented comprehensive ESD control measures to reducepotential quality hazards of electronic products. We have established regulations such as the Measures for theAdministration of Electrostatic Protection and the SOP for ESD Control. We have also combined real-time monitoringand alarm modules on production lines, resulting in 100% coverage of ESD protection.
Each award has three levels:
Level-1 Incentive, Level-2 Incentive,and Encouragement Award
Individuals who have madesigni?cant contributions canapply for special incentives(higher than the level-1 Incentive).The application quota changesdepending on the annual budgetand is managed by QMT.
On-site quality risks are controlledthrough ?rst inspection, routineinspection, warehousinginspection, and shippinginspection.
The business personnel receivefeedback from customersthrough the Customer ServiceManagement System (CSM).After con?rming a productionquality issue, they transfer it tothe Improvement ManagementSystem (IMS).
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2023 Environmental, Social and Governance (ESG) Report
Awards related to quality received byLAZZEN from customers in 2023
Critical data
Training conducted by Mozi Expert
Mozi Expert - Training course on standardization of low-voltage apparatus
Improvement of quality and safety capabilities
CLE-based improvement
PCB visual inspection
AOI visual online quality inspection in electronic workshop
Hangzhou Bay Super Factory used the CLE method to reduce risk points in the spot welding process.To enhance the quality of spot welding, we have optimized and increased tooling during the production process. Thiswill achieve fool-proo?ng and anti-error eects, reducing the occurrence of errors, omissions, and confusion. Duringthe reporting period, 50 working procedures have been sorted out for the spot welding workshop and a CLE-basedimprovement plan has been formulated. The quality of the spot welding workshop's working procedures has beencontinuously improved through the use of fool-proo?ng tooling, tooling modi?cation, and fool-proo?ng equipment.
We conduct cultural construction activities every year, including quality conferences and monthly qualitymeetings, quality benchmark selection, and incentives to stimulate a sense of quality responsibility amongall sta. We also strengthen the construction of the quality management mechanism through qualitybacktracking and a reward and punishment system. Additionally, we regularly train and assess qualitymanagers to empower them. In 2023, we further improved our quality management, resulting in goodperformance and a positive reputation.During the reporting period, we invited the Vice President of the Shanghai Electrical Apparatus Research Institute toconduct 5 training courses for our sta. The training focused on key areas, including the introduction of basicknowledge of standardization, the current situation of standardization of low-voltage apparatus, and the developmentplan and concerns for the standardization of low-voltage apparatus. The training has signi?cantly improved the sta'sawareness of the standardization for low-voltage apparatus.
Customer satisfactionapproach
Award/certi?cate name2022 Strategic Partner Award granted by Sungrow2022 Excellent Supplier granted by HuapengExcellent Supplier granted by CRRC Times2022 Excellent Supplier granted by SCUExcellent Partner of Kehua Data
Issued bySungrow Power Supply Co., Ltd.Jiangsu Huapeng Group Co., LtdZhuzhou CRRC Times Electric Co., Ltd.
Sicon Chat Union Electric Co., Ltd.
Kehua Data Co., Ltd.
Complaints about excessivehazardous substances in products
Decline rate of level3 quality issues
PPM declinerate
92.28 points0 times/year10%12.5%
We have improved our quality control by utilizing AI algorithms. Additionally, we have developed a deep-learningalgorithm for visually detecting PCB boards in common workshop scenarios. This algorithm can optimize the modelthrough image preprocessing, edge detection, intelligent annotation, model training, and defect detection modules,thereby improving production accuracy and ensuring our products are of top quality in the industry.
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1718
Information security protection
NDZ3W-150S–300S series products
Interconnection and complementary collaboration between cloud computing and edge computing
NDZ3W-150S–300Sseries products
NDZ3W-150S–300S series products strengthen the safety guarantee for electricity use.
Solutions for safe electricity use
Quality feedback management
We are dedicated to managing the quality of every step in the value chain. To handle after-sales and productrecalls, we have established management systems, including the Management Procedures for CustomerReturns and Recalls and the Management Procedures for Non-conforming Products. Additionally, we havedeveloped a comprehensive process for handling after-sales issues and emergency situations. In 2023, therewere no violations or recalls of our products.
The station control unit is a lightweight product designed for on-site deployment. It can monitor the operation of thedistribution room (medium and low voltage) in real time using visualization, intelligent adoption, and data analysistechnology. Additionally, it can combine with equipment management and intelligent operation and maintenancefunctions to enable the intelligent application of the distribution room, ensuring the safe operation and continuity ofpower supply.
In the next three to ?ve years, our strategic development direction will focus on intelligent power distribution,smart homes, and new energy electrical technologies. Providing a solution for safe electricity use isfundamental to implementing our strategy of "intelligent power distribution, smart homes, and new energyelectrical technologies" and also an eective way to maintain product quality and reputation. We havedeveloped solutions for safe electricity use that meet the needs of customers in our low-voltage, DC, smarthome, and smart power distribution product lines.
NDZ3W-150S–300S series DC contactors are primarilyutilized in charging piles, charging stations, and energystorage systems. This series of products features contactswith an epoxy resin leakproof structure, ensuring safety andreliability without arc splashing. The products can meet therequirements for a maximum voltage of 1,000 V and lowpower consumption, and are CCC, CE, and TUV certi?ed.This series of products can meet the customers' testing andperformance requirements, providing safety guarantees forthe widespread application of our products andcost-eective support for our customers' system solutions.
Distributed photovoltaic grid-connected circuit breaker and household photovoltaicgrid-connected box AC side switch, providing islanding protection for safe operation
We adhere strictly to the Data Security Law, Cybersecurity Law, and other relevant laws and regulations. Weprioritize information security and privacy data protection and have established a robust information securitymanagement system to create a reliable barrier for information security and privacy protection.We have implemented information security control in multiple dimensions, including equipment, network,data, and software and hardware security. The internal digital intelligence platform has a security authoritymanagement function, which can perform access control and authority management on the data to ensurethe data's security and privacy.The Company has passed the Information Security System ISO 27001 certi?cation.
Case
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Critical data
Information security awareness training for employees
The engineers of the Companyare debugging the IT equipment
Information securitymanagement system
Online training for marketing information security
Upgrade of the Company's core network
Other security
Device informationsecurity
Network security
Hardware and softwaresecurity control
Data securityLAZZEN's information security control initiatives
The LEAGSOFT access and desktop management system and Sinfor Internet behavior management systemsafeguard end-user equipment security and data security from aspect of extranet, USB, network access detection,and so on. A backup mechanism is available for the Company's data. The headquarter server room is used to backup the core business data through the backup system, and the validity of the backed-up data has been veri?edregularly. In Shanghai and Haiyan factories, we have built o-site disaster recovery server rooms for importantbusiness systems. We also conduct disaster recovery drills for business systems on a regular basis, whicheectively ensures the highly available and stable operation of our information system.
Furthermore, we prioritize the construction of information security encompassingcybersecurity, data security, physical security, employee education and training,security monitoring and response, supply chain security management, andcompliance management. We have established a core data leakage preventionplan and an emergency plan for network information security. We regularlyconduct information security risk assessments and develop risk mitigation plans,as well as hold network attack and defense and penetration testing drills.Additionally, we have formulated a comprehensive information securitymanagement system to ensure the security of information assets and importantbusiness operations.
During the reporting period, we reconstructed thedata center network to increase the networkbandwidth, strengthen the network security, andshorten the network delay and failure recoverytime. We replaced old network equipment, addednew security equipment, and strengthened thelogical isolation of dierent network areas of theCompany to further improve the network securityand stability.
During the reporting period, we providedinformation security training to employees indierent positions to improve their awareness ofinformation security. The Data and SecurityDepartment provided online training to over 90colleagues in marketing, software development,and system operation and maintenance.
2021 information security audit2022 information security audit2023 information security audit
The enterprise version of ESCT antivirus software is used to establish antivirus and malware invasion managementand handling mechanisms for all terminals. The software detects viruses and issues antivirus tasks, protectionpolicies, and patch veri?cation and installation tasks in the background. The desktop management system controlpolicy of LEAGSOFT eectively restricts USB devices, optical drive devices, wireless network cards and otherdevices of terminals to realize the protection of physical interfaces.
The situation awareness system of Sinfor has been established to conduct visual and real-time monitoring andanalysis of threats to the intranet of the Company and branch oces. The source of threats can be located anddealt with in a timely manner by using the antivirus, desktop management, Internet behavior management toolsand other security control devices to safeguard the intranet environment.
The Company has constructed physical and logical isolation by using the switch ACL policy, ?rewalls, and industrial?rewall access policy in the production area (industrial control area), oce area, Internet access area. Firewalls areused to prevent network threats brought about by mutual access. Security audits are carried out by the bastionhost for access to important business systems. Uni?ed identity authentication is adopted so that only authorizedaccess is allowed. The entire access process is audited to prevent the risks caused by unintentional, malicious, orillegal operations.
The server room is equipped with complete ?re-?ghting facilities, UPS power supply, precision air conditioner withconstant temperature and humidity. There are strict access control means and an environment control alarmplatform, so that anomalies can be received and dealt in a timely manner. The Company has made a detailedcontingency plan for catastrophic failures and organized drills every year to ensure the stable operation of thebusiness system.
Case
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2122
Digital and intelligent work safety
Training for separating pedestrians and vehicles in the logistics area for the warehousing, logistics, and quality departments
Tier-2 manager andgeneral manager formanufacturingFacilitiesDepartmentManufacturingQuality DepartmentEHSManufacturing
workshopDivision of responsibilities for the major event escalation mechanism of manufacturing system
FoodsafetyElectricitysafetyEquipmentsafetyPersonnelsafety
Fire
safety
Distribution of safety management modules
Safe production line
Intelligent work safetyAdhering to the brand positioning of "an expert in intelligent electrical solutions", we have actively engagedin digital development, explored intelligent safety production lines, and constructed a digital and networkeddemonstration factory. We have also strengthened occupational health and safety management andpromoted the transformation and upgrading of traditional industries.
Our work safety policy has always been "safety ?rst, precaution crucial, and comprehensive management". Wehave established and improved an intelligent work safety standardization process, continuously promoted theconstruction of a dual system of safety risk control and potential risk identi?cation, and developed eectivecontrol strategies and protective measures through regular risk assessments. We strictly adhere to the WorkSafety Law and other legal systems. To ensure safety, we have established a safety committee and divided itinto ?ve safety management modules. Each module has two assigned responsible persons.
We have developed a major event escalation mechanism of the manufacturing system as an emergency safetyplan to address equipment failures, production quality problems, and production environment anomalies. Thismechanism includes a handling process and assessment requirements.
Discover andpreliminarily analyze theincident, carry out theemergency responsework, and providetechnical support.
Organize and coordinateall relevant departmentsto carry out emergencyresponse and providesafety measures. Monitorand provide early warningof exceptions in theproduction environmentand formulatecountermeasures.
Analyze product qualityissues and developcorrective actions.
Investigate and analyzeequipment faults anddraw up maintenanceplans and preventivemeasures.
Approve escalationdecisions and coordinatethe handling of majorincidents to ensuretimely and eectiveresolution.
Every year, we organize training and education activities for our employees to improve their sensitivity andability to deal with major events. This helps enhance their awareness of safety responsibilities.
We have applied advanced technologies such as digital modeling, simulation analysis, Internet of Things, cloudcomputing, arti?cial intelligence, and big data comprehensively to design, simulate, and continuously optimizethe entire enterprise process, and establish a dynamic digital twin virtual factory.In 2023, the Company introduced imported high-precision equipment, fully automated production lines,intelligent three-dimensional storage equipment, and intelligent detection equipment. The industrial Internetplatform was used to integrate information systems such as MES, WMS, QMS, and APS to control the entireprocess from marketing and research and development to procurement, manufacturing, and storage logistics.The ecient connection between equipment and the manufacturing system improved safety for employeesduring production, protecting their health and creating a safe, digital, and intelligent production line.
2324
Improvement of employees' safety awareness
Critical data
Occupational health and safety management system certi?cation
Occupational health and safety
LAZZEN introduced the ?rst ?exible busbar welding workstation in the industry.
OTS full-process automated production lineThe Company introduced the OTS full-process automated production line to meet the requirements of integratedproduction of fully automated assembly, testing, and packaging of product series. This reduced safety risks foremployees in each production link and eectively prevented work safety accidents. The fully automated productionline allows for interconnectivity between equipment and the Manufacturing Execution System (MES) and theEnterprise Resource Planning (ERP) platform (SAP) through the integration of mechanical, electrical, and softwaresystems. This enabled real-time recording and monitoring of production processes, ultimately achieving productquality management, production data visualization, product traceability management, and enhanced product safetyand quality management capabilities.
In 2023, the Company introduced the ?rst ?exible busbarwelding workstation in the industry. The workstation hasbeen used for welding ?exible busbars of products andfully automated production of integrated processes,achieving one-time welding of ?exible busbars and savingover 60% of energy. The production line integratesmultiple robot arms and conveying lines to transport andtransplant items eciently. The prepressing electrodestructure is designed to ensure the stability of the weldingprocess. Temperature control monitoring andcomparison technology is used to intelligently judgeproduct quality. The workstation has revolutionized thetraditional welding mode through automation andprocess innovation. This has resulted in a 750% increasein eciency, a 40% reduction in production costs, and a2% decrease in product scrap. Additionally, theworkstation has improved production safety by reducingthe risk of injury during handling and welding.
OTS full-process automated production line
Flexible busbar welding workstation
As per applicable laws and regulations including the Law of the People's Republic of China on the Preventionand Control of Occupational Diseases, the Company has prepared internal management documentsincluding the SOP for the Prevention of Occupational Diseases and the Integrated Management Manual, andestablished and improved the occupational health management system to protect the health of allemployees. The Company has passed ISO 45001 "Occupational Health and Safety Management Systems"certi?cation. In 2023, the Company updated the Risk Assessment Report of Environmental Emergencies andthe Emergency Plan for Environmental Emergencies.
In 2023, the Company has conducted pre-employment physical examinations for
employeesand on-the-job physical examinations for occupational diseases for
employees. During theseexaminations,
employees with occupational contraindications were identi?ed. The relevantemployees were then reassigned to other suitable positions.
The Company maintains a strong focus on improving occupational health and safety management bystrictly controlling occupational health risk factors in the workplace. The production behavior of employeesis eectively regulated and guided through education, publicity, professional training, and other measures.Regular EHS-related training and drills are conducted on an annual basis to ensure the continued well-beingand safety of all employees.
Case
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RMB180,000 million
employees
employees
Critical data
Orientation training for new employees
Fire drill in Hangzhou Bay Super Factory
Orientation training for new employees
EHS ?re drill in Hangzhou Bay Super Factory
During the reporting period, the Company conducted ?re drills to improve the ?re escape and evacuation capabilities ofall sta, enhance their ?re awareness and ?re?ghting capacities, and familiarize them with the escape routes ofworkshops and the factory. During the ?re drills, the maintenance personnel in the ?re control room instructed personnelin each area to evacuate to the predetermined position. Once personnel in each area have assembled, the EHSDepartment evaluated the assembly process and its eectiveness. Backbone personnel from each department thenconducted ?re extinguisher and ?re hydrant operation drills.
The Company provides safety training to newemployees upon entry. This training coverstopics such as production line safety, equipmentoperation, ?re emergency treatment,work-related injury treatment, and other relevantareas. The goal is to ensure that employees havea comprehensive understanding of productionsafety knowledge and can avoid accidents. TheCompany has also conducted anti-fraud andsafety awareness campaigns with assistancefrom the police ocers.
8.5
workdays lost dueto work-related injuries
employees withoccupational diseases
employees died due towork-related incidents
employees inpositions exposed tooccupational diseases
Undergoing occupationaldisease physical examsWith occupational diseasesInvestment in employeeoccupational health andsafety
work-relatedfatalities
work-relatedinjuries
work-relatedfatal accidents
work-relatedaccidentsMillion man-hourdeath rate0%
CaseCase
2728
Enterprise certi?cation for LAZZEN's green supply chain management
Green supply chain
List of system certi?cations of suppliers
Executive Secretary Manager of theProcurement Quality Operations DepartmentVice Director General Manager
of the Procurement System
Director Executive President
Tier-1 architecture diagram of the production procurement committee
Supply chain management
Green and responsible supply chain
We are committed to sustainable development and have built a green and responsible supply chain. We haveestablished a robust supplier management mechanism that considers environmental, social, and responsibilityaspects when assessing and assisting suppliers. Additionally, we provide regular supplier knowledge and leantraining to promote the sustainable development of our supply chain.
LAZZEN has established a dedicated department for managing the green supply chain and formulated adevelopment target for it. A green information platform has also been set up, which includes LAZZEN's SRMsystem, warehouse management system (WMS), transportation management system (TMS), simulationanalysis system, and PLM system. This facilitates various functions related to green supply chain informationplatforms, including basic information management, green production, green material management, suppliermanagement, green design, green logistics, and more.
Quality Management System Certi?cation ISO 9001Quality Management System Certi?cation IATF 16949Intellectual Property Management System GB/T 29490Information Security Management System
Certi?cation ISO/IEC 27001
Environmental Management SystemCerti?cation ISO 14001Occupational Health and Safety Management
System Certi?cation ISO 45001Hazardous Substance Management SystemCerti?cation IECQ QC 080000Energy Management System Certi?cation ISO 50001
We are dedicated to sustainable development and strive to establish a stable responsible supply chain. To achievethis, we have developed institutional documents such as the SOP for Supplier Access Certi?cation, the HierarchicalSupplier Management Measures, and the Supplier Performance Management Measures. These documents promotestandardization and eciency in supplier certi?cation, auditing, rating, and other management processes.In 2023, we implemented the Management Procedures for Supplier Access Certi?cation and a supplier selectionsystem, established a three-tiered procurement committee, and established a procurement businessdecision-making management committee mechanism based on the basic principle of "rules come ?rst, actionscome second, collective decision-making for exceptional situations". We have made improvements to the supplierlifecycle management closed loop, upgraded the supply chain coordination mechanism, and promoted sustainabledevelopment of the procurement platform by optimizing the rules for supplier access, performance evaluation, andhierarchical management.In addition, we have implemented an assessment system for suppliers based on four dimensions: business, delivery,quality, and technology. Each dimension is scored independently to facilitate supplier tracking and control.Furthermore, we categorized suppliers into strategic, preferred, quali?ed, restricted, and eliminated suppliers, forwhich management measures are dierentiated to improve management eciency.
General Manager of theMarketing SystemGeneral Manager of the Strategyand Finance SystemManager of the Human ResourcesDepartmentManager of the Public Relationsand Administration DepartmentGeneral Manager of ManufacturingSystemGeneral Manager of the Technicaland Quality Operations SystemGeneral Manager of the DCContactor Product LineGeneral Manager of the IntelligentPower Distribution Product LineGeneral Manager of the IntelligentTerminal Product LineGeneral Manager of the Low-voltage Components Product Line
2930
Critical data
On-site lean training for suppliers
Lean improvement training for the supplier
Supplier cooperation
%
100%12083
257257
Critical data
Critical data
Online training for marketing information security
Based on the information publication, the Company requests that suppliers sign the Con?dentiality Agreement, IntegrityCooperation Agreement, and RoHS Agreement to protect the basic rights and interests of both parties. Furthermore, theCompany conducts a comprehensive assessment of environmental, social, and governance considerations when assessing asupplier's eligibility. Additionally, the suppliers are expected to furnish their Supplier Social Responsibility Commitment,Investigation and Evaluation Form of Supplier's Environmental Condition, and Statement of Environmental and OccupationalHealth and Safety Requirements.The Company provides regular safety training and supervision to ensure the contractor complies with occupational healthand safety practices during the project. The Company also regularly checks contractor's safety facilities and equipment. Inaddition, the Company regularly reviews the environmental protection measures of our suppliers and requires them toproperly handle the waste they generate to reduce their negative impact on the environment. By establishing anindependent Environmental Protection System Audit Form, the Company evaluates the enterprise's environmentalmanagement system, management of toxic and hazardous substances, and prohibited substances from six aspects such asmanagement system, research and development, procurement, incoming inspection, production, and logistics.
Suppliers shall pass joint decision-making by the CEG and Tier 3/2 procurement committees to release materials, ensuringopen, transparent, and scienti?c procurement. The Company's reporting hotlines are available to the public. The Company'salso issues integrity initiatives annually on holidays through the SRM platform to encourage suppliers to refrain from anyform of ashy behavior.
We conduct regular trainings on green procurement and related topics for suppliers on an annual basis. These trainingscover quality management, safety management, environmental protection, and green manufacturing, etc. The goal is tostrengthen suppliers' awareness of sustainable development, improve their management level, and facilitate thecoordinated development of green industrial chains upstream and downstream.
Total number ofsuppliers
Total number of new suppliers
Suppliers who haveconducted social impactassessments
Suppliers who haveconducted environmentalimpact assessments
Suppliers who have signedenvironmental and laborrequirements clauses
Suppliers of Chinesemainland
Signed the SupplierCode of Conduct
Number of suppliersidenti?ed as having actual orpotentially signi?cantadverse social impactsNumber of suppliers identi?edas having actual or potentiallysigni?cant adverseenvironmental impacts
In 2023, 12 suppliers of the Company won the title of National Green Demonstration, with a 100% RoHS passrate and 91.56% green material utilization rate.
During the reporting period, a team composed of ourquality personnel and the supplier's quality personnelvisited the supplier to address issues with the busbarssupplied by Tecsunrise Electric that were aectingquality and delivery. The lean teacher provided on-sitetraining on the lean method, guided project members,and classi?ed and con?rmed materials on site. Thislean activity has signi?cantly improved the pass rate ofincoming materials in this category and the quality ofmaterials from suppliers.
In 2023, the pass rate for incoming materials in the Company's machine processing category increasedfrom
83.09% to 92.3%. The delivery rate also increased cumulatively by 9.66%
after the lean improvement.
Case
环境、社会及公司治理（ESG）报告
3132
SDGs benchmarking
Corporate governanceCompliance risk controlIntellectual property
Our actions
Our concept
Governancespeci?cationsStrengtheninginternal management
The Company has continuously enhanced corporate governanceand strictly complied with laws, regulations, and relevant industryrequirements. We have formulated relevant management systemsand disclosed important information to stakeholders in a timelyand eective manner. Additionally, we have unblocked channelsfor investors to communicate. We have continuously improved ourrisk management, integrity management, and intellectual propertymanagement to promote long-term development.
3334
202320222021UnitItem for disclosure
No.
Critical data
Board ofsupervisors
Board of
directors
President
Marketing systemProduct lineTechnology systemManufacturing systemProcurement systemTechnology and qualityoperation systemHuman ResourcesDepartmentStrategic and ?nancialsystemPublic Relations andAdministration DepartmentLAZZEN TalentDevelopment Center
Board ofsupervisorsBoard ofdirectorsSecretary ofthe board
Shareholders'
meeting
Organization chart
Operation of three meetings
Corporate governance
The Company has established a corporate governance structure comprising the general meeting of shareholders, theboard of directors, the board of supervisors, and the senior management. This structure strictly adheres to normativeoperation rules and internal systems for management decision-making and operational supervision, ensuring eectivecorporate governance. Additionally, the Company places signi?cant emphasis on social responsibility and consistentlyenhances its management system for social responsibility.
The shareholders' meeting, the board of directors and its special committees, the board of supervisors, and the Company'smanagement have distinct powers and responsibilities and oversee each other. They strictly adhere to the rules ofprocedure to ensure the Company's smooth operation. The Company places signi?cant emphasis on establishing a boardof directors that is independent, professional, and diverse. The board of directors is composed of 9 members, 3 of whomare independent directors. During the reporting period, the Company's general meeting of shareholders, board ofdirectors, and board of supervisors operated independently and in compliance with the law. Relevant personnel were ableto eectively perform their respective rights, obligations, and duties.
The shareholders' meeting is the highest authority of the Company. The Company hasdeveloped Rules of Procedure for Shareholders' Meetings and held the meeting in strictaccordance with relevant regulations. This ensures that shareholders can exercise theirrights in accordance with the law and that corporate investors are treated equally, withtheir rights and interests protected.The Company has a board of directors that is accountable to the shareholders' meeting.The directors are elected by the shareholders' meeting. The Company has developed theRules of Procedures for the Board of Directors and will convene and hold meetings inaccordance with relevant provisions. The board of directors is composed of four specialcommittees: the Strategy Committee, the Nomination Committee, the Audit Committee,and the Compensation and Appraisal Committee.The board of supervisors consists of 3 supervisors, including 2 female supervisors and 1employee representative supervisor. The convening and holding procedures of the boardof supervisors shall be governed by the Rules of Procedure for the Board of Supervisors.All supervisors can conscientiously discharge their duties as required, includingsupervising and inspecting the Company's ?nancial position and the performance ofdirectors and senior ocers and protecting the legitimate rights and interests of theCompany and shareholders.
During the reporting period, the Company held a total of7 board meetings to deliberate on 32 proposals.
Additionally,3 shareholders' meetings were held to deliberate on 14 proposals, and 7 meetings of the board of
supervisors were convened.
Number of board meetings heldNumber of times
PersonPersonPersonNumber of board membersDisclosed by
type
Non-independent
directorIndependent
director
In accordance with laws and regulations including the Company Law and the Securities Law, the Company has establishedan internal control system centered on the Company's Articles of Association and formed a decision-making structuremainly represented by shareholders' meeting, board of directors, board of supervisors, independent directors, and themanagement. It is necessary to keep improving the Company's governance structure, standardize the Company'soperations, and enhance the operation quality of the Company's governance, so as to provide a good managementdecision-making environment and guarantee the Company's standardized development.
Shareholders'
meeting
···
·······
2023 Environmental, Social and Governance (ESG) Report
3536
ESG Management Committee
BDC
Board of directorsGovernance levelManagement level
Executive level
LAZZEN's ESG organizational management structure
ESG management
Critical data
LAZZEN organized small and medium-sized investors to enter the listed companies
Investor relations
Critical data
Information disclosure
As required under applicable laws and regulations, the Articles of Association, the Information Disclosure ManagementSystem, and the Insider Information Management System, the Company has disclosed its information in a true, accurate,complete, timely, and fair manner, and seek to enhance the quality and transparency of information disclosure. Additionally,the Company has issued a visualization report of A Picture to Understand (H5) Periodical Report to help investors quickly andaccurately understand the content of the Company's periodic reports and to ensure that all of the Company‘s shareholdershave equal access to information and keep abreast of the Company's operating conditions and signi?cant events.
During the reporting period, the Company disclosed 149 announcement documents in designated media and websites.Of these,93 were numbered announcements. Additionally, the Company completed more than 20 questionnaires ofthe exchanges or securities regulatory bureaus.The Company received an"A" rating for information disclosure from the Shenzhen Stock Exchange (2022–2023).
The Company values its investors, particularly those who are small or medium-sized. To enhance communication andunderstanding between the Company and investors, and to promote integrity, self-discipline, and standardized operations,the Company has developed an Investor Relations Management System. The Company is dedicated to enhancing the qualityand transparency of information disclosure and ensuring that all shareholders and creditors have equal and timely access toinformation on the Company's operating conditions and signi?cant events through various channels, platforms, and methodsof investor relations management.
During the reporting period, the Company conducted over
online and oine surveys, participated in more than
road shows and strategy meetings, and answered
investor questions on the Hudongyi Platform of theShenzhen Stock Exchange and over
investor inquiry calls.
The Company always prioritizes its sustainable development ability, takes social responsibility seriously, and recognizes theneed to integrate ESG concepts into corporate management and business development. The Company has incorporated theESG concept into its daily operations and management, implemented ESG governance, improved and strengthened its ESGsystem and capacity building, and established a top-down three-tiered ESG organizational management structure. Thetop-down ESG organizational management structure is composed of three levels: governance, management, and execution. Itsgoal is to comprehensively promote the Company's sustainable development.
Carry out overall supervision and approval of the Company'sESG strategic planning and ESG policy development andimplementationCarry out overall supervision and approval of major ESGmatters and related response programsAssess risks and opportunities related to the Company'sdevelopmentCheck the achievement of ESG objectives, review the ESGreport, and assess risks and opportunitiesFormulate the ESG strategic plan and related objectivesand promote the implementation of the strategyCoordinate the ESG work under each topic and develop anESG reportContinuously analyze gaps and formulate improvement policiesImprove the ESG management systemImplement ESG objectives, carry out speci?c tasks, and outputperformance data and work materialsFormulate improvement plans and implement them into nextyear's work
AuditCommitteeNominationCommittee
Task Force for
Zero Carbon
Factory
Compensationand Appraisal
Committee
Other specialized
groups... (as
required)Relevant departments at headquar-
ters and subsidiaries
Strategy
Committee
·
·
·
···
···
····
···
··
···
······
···
··
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···
2023 Environmental, Social and Governance (ESG) Report
3738
Communication and ResponseExpectations from the Company
Communities
Employees
Environment
Partners
Customers
Governmentsand regulators
Shareholdersand investorsStakeholdersCommunication with stakeholders
Communication with stakeholdersCommunication with stakeholders
Improvement of ESG management
ESG practice optimization
ESG report preparation and review
The Company has established an ESG Management Committee to oversee the development of the ESGmanagement system, prepare and audit ESG reports, provide ESG training, identify issues, set goals, improverelevant work, and enhance the ESG governance structure. At the same time, the Company has establishedvarious systems, including the ESG Committee System and ESG Management System, to further regulate thesustainable development of the Company.
Prepare a list based on ESG criteria, collect, sort out, and output relevant workingmaterials for this module.Prepare and review ESG reports.Responsible for researching and responding to stakeholders.
Identify and establish a library of ESG management indicators.Develop strategic plans and goals for ESG.Identify any gaps in ESG under this module compared to benchmarks andcollaborate with relevant departments to develop corresponding objectives andimprovement measures.
Promote the improvement of the ESG management system and relevantmanagement systems and working procedures.Promote the dissemination of ESG and the development of activities.Organize and conduct ESG trainings.
The Company values the interests and needs of stakeholders and maintains two-way communication with them. TheCompany strives to understand their needs in depth and ensures timely responses and improvements to importantissues, which injects positive momentum into the Company's sustainable development. Based on a comprehensiveunderstanding of the opinions of various parties, the Company has taken proactive measures to address relevantdemands. The concept of sustainable development has been integrated into the corporate culture and strategy, andthe Company has communicated and worked collaboratively with stakeholders to promote sustainable development.
Responsibilities of the ESG Management Committee
Transparent ?nancial informationdisclosureEnhanced risk controlCreation of economic value
Operations and tax payments incompliance with all applicablelaws and regulationsFully improved quality and eciencySupport for local developmentProvision of diversi?ed productsand quality servicesGuaranteed product and servicequalityBetter customer experienceCooperation with integrityTransparent procurementWin-win developmentMinimized environmentalimpactResponse to climatechangeProtection of basic rightsEnsured safety and healthSmooth growth pathCare for employees'personal livesSupport for socialcontribution programsFacilitation of localdevelopment
Information disclosureShareholders' meetingWorking meetingsCommunication andcoordinationDaily reporting andcommunicationMeetings and exchanges
Information disclosureCustomer feedback andresponseCustomer satisfactionsurveyProject cooperationWorking meetingsDaily communicationEnvironmental informationdisclosureEnvironmental protectionactivitiesNew employeecommunicationRegular meetingsNormalized trainingExchangesSocial contributionprogramsVolunteer serviceInformation publication
1110
2120
2023 Environmental, Social and Governance (ESG) Report
3940
The Party branch held a general election
LAZZEN conducted high-quality Party lectures
Critical data
Party building activitiesParty building activities
Importance to LAZZEN
Importance to the individual and organizationMateriality analysis
Materiality analysis
Technological innovationIntellectual propertyprotectionWork safety managementRisk prevention andcompliance managementAnti-corruptionData securityBusiness ethicsEmployee right protectionCorporate governance
Product and service qualityCustomer experience and satisfactionSafe warehousing and distributionSupply chain responsibilitymanagementIndustry cooperation and developmentCommunication with stakeholdersEmployee care and developmentDiversity and equal employmentCharity and voluntary serviceCommunity involvement and ruralrevitalization
Energy management andalternativesEnvironmental protectionand pollutant managementGreenhouse gas emissionsDeveloping a recyclingeconomyResponse to climate changeGreen oceWater resource managementGreen logistics andwarehousingBiodiversity
During the reporting period, the Company completed the evaluation questionnaires regarding material topicsof ESG by communicating with external stakeholders. The Company then engaged external professionalconsultants to analyze and assess each identi?ed topic of ESG importance based on the results of onlinequestionnaires. Based on the evaluation results of material topics of ESG, we have ranked the material topicsfrom two dimensions: importance to the Company and importance to stakeholders. The resulting matrixdisplays the material topics as follows:
2023 is the ?rst year to fully implement the spirit of the 20th CPC National Congress. To better study andimplement the thematic education of President Xi Jinping's Socialism with Chinese Characteristics for a NewEra, strengthen the construction of the primary-level party organizations, and better play the key role of theprimary-level party organizations and exemplary vanguard role of Party members, the Company hasconducted "three meetings and one lecture".
During the reporting period, the Company had104 Party members, including 34 women and7 senior executives.
The Company held1 Party branch meeting, 1 democratic appraisal, and 6 reading club activities.
4142
Compliant operations
Commercialrisks
Labor relation risks
Informationsecurity risks
Intellectualproperty risks
Legal risksFiscal andtaxation risksProcurementrisks
Business risk management categories of the Company
Risk management measures
Training on enterprise contract lifecycle management
Line 1
Line 2
Line 3
Audit Committee, Risk Management Committee
Organization strategy
"Three lines" in risk management
Risk management
Compliance risk controlThe Company has implemented an internal control concept that focuses on "institutionalized management, processizedsystems, and informationalized processes", and established and improved a rigorous, standardized, comprehensive, andeective internal control system that is guided by risk management and focused on compliance management. Moreover,the Company has developed a comprehensive risk prevention and control mechanism that involves all sta and covers allprocesses and systems. The system has achieved its objectives of "strengthening internal control, promoting compliance,and preventing risks", thereby eectively guaranteeing the Company's high-quality development.
During the reporting period, the Company identi?ed risks based on actual operational conditions to prevent risks moreeectively. The Company also formulated corresponding countermeasures and suggestions to reduce the impact of riskson its operation by analyzing the causes and possible impacts of risks.
By placing great importance on compliance construction, the Company has established an internal control system with riskmanagement as its orientation and compliance management as its focus and has prepared the Internal Control ComplianceRisk Management Manual. In addition, the Company regularly reviews the eectiveness and reasonableness of the internalcontrol system and continuously optimizes the system according to changes in management requirements and identi?eddefects. Meanwhile, the Company has conducted internal Huawei/Regional division compliance training to ensurecompliant and ecient operation, establish a corporate culture of risk compliance, and cultivate legal awareness of riskcompliance among employees. This has ultimately reduced the Company's compliance risk.
The Company attaches importance to risk management and has established a system to manage risks. The Company hasset up an Investment and Risk Control Department, as well as a Risk Management Committee. The Committee is responsiblefor making decisions regarding internal control and compliance risk management. The Company has developed various riskmanagement and control systems, including the Measures for the Administration of Compliance Risk Control System, theCorporate Compliance Risk Control Management Manual, and the Risk Management Committee Management System. TheRisk Management Committee is responsible for establishing a risk management system, cultivating a risk managementculture, and building "three lines" in risk management, so as to keep risks under control, ensure the Company's operationalcompliance and healthy and sustainable development, and keep the Company evergreen.
Internal audits aim to independently evaluate the Company's risk management,implement risk management supervision, and enhance the quality of risk managementthrough supervision.Departments and organizations that provide support for risk management assistbusiness departments in risk management and control, provide businessdepartments with risk management methodology and tools, and carry out riskmonitoring and management to control risks and help achieve business objectives.Various business departments of the Company are mainly involved in managingrisks during business operations. This is the most important line. Correspondingly,each business department is also the ?rst responsible department for riskmanagement.
4344
Professional integrityThe Company's sta attended the 2023 Shanghai Enterprise International Operation Compliance Talent Training
Training poster about the construction of compliance management system of listed companies
Critical data
Key measures for compliance managementInternalizationof external laws
Compliancecommitment
Complianceconsultation
Compliancereport
Accountability fornon-compliance
Compliancereview
Compliancetraining
Report of non-compliance
Changes in laws, regulations, and regulatory dynamics should be tracked and analyzed. Speci?ccompliance management measures should be formulated for key areas, and externalcompliance requirements should be promptly incorporated into internal rules and regulations.A total commitment system should be implemented, and the Compliance Commitment shouldbe signed to unify the compliance ideology, system requirements, and implementation eects,and to enhance the Company's compliance control capability.
The compliance review should be integrated into the business process. It is necessary to includeoperation and management actions, such as formulating rules and regulations, making decisionson major issues, signing major contracts, and operating major Item, in the list of compliancereviews. These actions should not be implemented without undergoing a compliance review.When it is necessary to consult on legal and compliance matters in key areas or important linksin the course of performing their duties, each system/department and its sta should activelyseek support from the Investment and Risk Control Department.
Compliance training should be strengthened for all employees, especially those in key positions,such as overseas and in high-risk areas of the business.Any signi?cant compliance risk event shall be reported to the Company promptly. Hierarchicaland classi?ed management of compliance risk events shall be conducted by relevant businessfunctional departments.
The Company has established a platform for reporting non-compliance and has made thereporting hotline, email address, and mailbox available to the public. Employees, customers, andthird parties are entitled to ?le complaints.The punishment mechanism for non-compliance should be improved. Timely investigationsshould be conducted in response to identi?ed issues and clues, and those who violate the ruleswill be held accountable.
During the reporting period, the Company conducted4 oine and 12 online training sessions, as well as legal
popularization sessions. Over 1,000 participants were trained, covering all systems and departments of theCompany.During the reporting period, the Company participated in18 external risk compliance trainings and salons.
Preview of the 11th course of "Experts in Executive Lecture Theater" in 2023
Lecturer:
Cai Jiangtian
Lecturer:
Wang Dong
Development Trend and Connotation of Compliance Management forListed CompaniesCase Interpretation for Important Concepts of Corporate ComplianceManagement System ConstructionCompliance Management System Construction for Listed Companiesunder the Major Compliance PerspectiveSpeci?c Compliance System Construction Practice for ListedCompanies under the Minor Compliance Perspective
Mr. Cai comes from a "four-generation legal family" and graduated from King's College London. Mr.Cai worked in the London and Shanghai branches of Zhonglun Law Firm, and has been deeplyengaged in corporate law for nearly 10 years. He has provided legal consultancy and legal servicesfor well-known domestic and foreign enterprises, such as LAZZEN, Vanke Group, CITIC Group,China Life, Shanghai World Expo Group, Xishangha Group, Xinjiang Energy Group, Yestar,Goodman, and CPPIB. Mr. Cai is also the drafter of the group standard "Evaluation of the Eective-ness of Compliance Management System for SMEs" and a corporate compliance instructor. He hasbeen awarded the title of "Outstanding Commercial Lawyer" in 2022 by YINGKE, and the title of"Young Talent" in 2022 by YINGKE Shanghai.Mr. Wang specializes in corporate legal aairs, commercial litigation and arbitration, private equity, equity investment and mergers andacquisitions, and supply chain ?nance. With rich in legal practice experience, he has provided legal counseling services, litigation andnon-litigation legal services for a number of listed companies, centralized state-owned enterprises and their subsidiaries for years, such asBaowu, LAZZEN, Tianyu Ecology, JMC Auto, and EVERJOY. Mr. Wang is also the drafter of the group standard "Evaluation of the Eective-ness of Compliance Management System for SMEs" and a corporate compliance instructor. He has been awarded the title of "OutstandingCommercial Lawyer" in 2022 by YINGKE, and the title of "Young Talent" in 2022 by YINGKE Shanghai.
Construction of compliance management
system of listed companies
The Company has established a comprehensive anti-corruption management system to ensure the Company's compliancein conducting business, strengthen corporate governance and internal control, regulate employees' personal behavior,prevent commercial bribery, strengthen the long-term early warning mechanism of corporate governance and safeguardthe legitimate rights and interests of the Company, shareholders, and employees.In accordance with applicable laws and regulations, such as the Company Law of the People's Republic of China,Anti-Unfair Competition Law of the People's Republic of China, and Interim Provisions on Banning Commercial Bribery, aswell as the provisions of the Articles of Association, the Company has developed relevant systems, including the Honestyand Integrity Management Measures and Order Management Standard System, based on the Company's actual conditions.All employees have been required to sign the Honesty and Integrity Commitment. The Company's Audit Departmentmonitors and supervises all instances of law and regulation violations, as well as any actions that violate the Company'smanagement regulations.
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2023 Environmental, Social and Governance (ESG) Report
4546
Critical data
Scienti?c research innovation
LAZZEN's Intellectual PropertyManagement Certi?cate
Intellectual property management
Business ethics
Honest cooperation
Integrity management action
Report handling and informant protection
Report email: audit@sh-liangxin.comReporting address: LAZZEN's Audit Department, No. 2000, South ShenJiang Road,Pudong New Area, ShanghaiPlease con?rm that the expression is "LAZZEN" or "LAZZEN Electrical Apparatus"The Audit Department shall be responsible for receiving and verifying both internaland external complaints and reports, as well as for maintaining the con?dentiality ofthe informants' information.
The Company adheres to business ethics and ?rmly opposes unfair and malicious business competition. Meanwhile, theCompany requires employees to fully understand and comply with anti-monopoly and fair competition regulations, setting anexample to maintain market order and protect the rights and interests of consumers.
To safeguard the Company's intellectual property rights and trade secrets, andstandardize the procedures for managing intellectual property, an IntellectualProperty Department has been established. The department is responsible forcreating and maintaining records of the Company's acquisition of intellectualproperty rights and establishing intellectual property archives. The Company hasestablished an intellectual property management system in accordance withrelevant national laws and regulations, such as the Trademark Law of The People'sRepublic of China, the Copyright Law of The People's Republic of China and thePatent Law of The People's Republic of China. Intellectual property managementrequirements have been integrated into the research and development process ofIPD. Additionally, the Company has developed system documents, includingIntellectual Property Management Procedures, Intellectual Property RiskManagement Procedures, Procedures for Handling and Managing IntellectualProperty Disputes, and Measures for the Administration of Technical Secrets, tomanage the entire lifecycle of intellectual property in a systematic manner. In themeantime, the Company conducts a patent risk assessment before the holidays ofeach stage to monitor patent risk throughout the process. Additionally, theCompany implements a comprehensive patent layout centered on products ortechnologies, rather than a "dotted" patent layout. The patent layout list isembedded into the delivered Patent Risk Assessment Report, eectively avoidinggoodwill and economic losses caused by patent infringement.
The Company prioritizes R&D and innovation while upholding scienti?c and ethical standards. By continuously improving theinnovation management system and taking various measures to encourage R&D and innovation, the Company stimulates sta'sR&D and innovation vitality and promotes the transformation of scienti?c research achievements. Moreover, the Company holdsannual technological innovation award selection activities to foster a positive environment for scienti?c research.
During the reporting period, the Company ?led a total of
new patent applications both domestically andinternationally. Out of these,
were invention patents, and a total of
patents were newly granted duringthe year. The Company has applied for a total of The Company has applied for a total of2,647domestic andforeign patents (including
international applications based on PCT). Out of these,
were inventionpatents, and the cumulative number of granted patents is1,815.The Company has
R&D personnel, representing
22.03%
of the total sta. The R&D investment isRMB
283.141
million, which accounts for
6.18%
of the operating income.
The Audit Department aperiodically conducts an audit on the honesty and integrity of employees in key positionswithin the Company.During important festivals every year, the Audit Department distributes the Proposal for Integrity and HonestBehavior to all employees and relevant business parties.
The Company has issued the "Direct Contact with LegalKnowledge (2023) Issue No. 3 - Commercial Bribery andLegal Risks" law dissemination column through OA to helpemployees understand and learn about the legalconsequences and harms caused by commercial bribery.The Company disseminated information on commercialbribery, including its de?nition, legal responsibilities,criminal law standards for ?ling cases, and actual cases, toall employees through an online all-sta law disseminationform. The Company cautioned all employees to be vigilant,adhere to ethical standards, and maintain an honest andintegrity defense line with the Company.
The Company is committed to fostering a fair, honest, and transparent partnership with its suppliersand strongly opposes any type of bribery in business dealings. The Company requires the executionof the Honest Cooperation Agreement as a necessary condition for signing contracts and conductingbusiness. The Company aims to ensure integrity supervision, maintain a code of integrity, manageliaison ocers, and promote integrity and self-discipline, all centered on the Supplier Code ofConduct. As to distribution channels, the sales side will enter into the Distributor Integrity andSelf-discipline Commitment with distributors every year to prevent disordered low-pricecompetition among distributors from damaging LAZZEN's brand positioning, shape a fair and justmarket order, and jointly create a self-disciplined business atmosphere with honesty and integrity.
Law dissemination column - Direct Contact with Legal Knowledge
Propaganda poster of DirectContact with Legal Knowledge
Proposal for Integrity and Honest Behavior
Case
环境、社会及公司治理（ESG）报告
4748
SDGs benchmarking
Our actions
Low-carbon andenvironmentalprotectionStriving to be agreen pioneerOur conceptThe Company is committed to achieving carbon neutrality and zero carbonby prioritizing energy conservation and consumption reduction, green andlow-carbon practices as long-term development goals. The Companyconducts environmental impact assessments throughout the entire lifecycleof products to improve energy eciency, develops new energy sources,and promotes resource recycling to eectively address climate change.
Topic: Green technology for low-carbondevelopment of enterprisesA sound environmental management systemResource and energy managementEmission managementGreen operation
··
·
·
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·
·
·
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·
2023 Environmental, Social and Governance (ESG) Report
4950
Achievements in 2023DescriptionGreen Innovation
Key R&D achievements of green innovation in 2023
Arc Fault Detection (AFDD) -Identi?es arc faults and break them
Non-Intrusive Load Monitoring (NILM) -Understands the pattern of electricityconsumption and monitor the behavior
of electricity consumption
LAZZEN'scutting-edge
technologyapplications
Digital twin - Self-contained intelligentdiagnostics and judgment
Low-power design based on magnetron material -Low power consumption and long life
Type B leakage protector - With DC breaking and high-frequency sinusoidal detection
Technical points of projects alreadyimplemented in our new energy planning
Green innovation
Topic: Green technology for low-carbondevelopment of enterprises
As a national green factory, LAZZEN actively contributes to the eorts towards achieving carbon neutrality and zero carbonemissions. With a focus on the layout of green products, green production, and green innovation R&D, the Companyimplements green management throughout the product lifecycle and utilize green technology to lead the enterprise'slow-carbon development.
Innovation ofresearch tools forspecial working
conditions
Based on experimental analysis and the virtualarc simulation method, the arc pressure formulafor critical current and the analysis method ofan arc calculation model for gas-producingparts are output.
The formula of critical current arc pressure can beused to determine the arc pressure value for theproduct line. The arc mathematical model supportsthe structural design of the critical currentgas-producing parts and quick assessment of thecritical current performance. The comprehensiveconsideration of multiple factors enables a moreaccurate calculation result.The formulas can meet customers' requirements foraccurately calculating the capacity reduction factorsof dierent products at dierent altitudes andambient temperatures and eciently calculating thecapacity reduction factors of dierent products atdierent frequencies at low cost. This can supportthe solution design of key customers.
The 3-air gap magnetic system technology is applied inNDC3(Z) products, reducing power consumption byabout 50%. The product supplied to RENergy, Goldwind,and WINDEY is low-carbon, meeting customers' demandfor low power consumption of new power systems.
In 2023, the R&D of conjugate integrated switch DCcontactors is conducted in multi-battery packswitching scenarios. The project focuses on lowpower consumption and multifunctional switching inthe process of implementation. It provides newsolutions and products for the electri?cation of heavytrucks and large buses.The realization of the product function reduces thecost of battery management systems for largeelectric vehicles supporting multi-battery switchingand improves the energy eciency of the system.
By customizing high-altitude and high-temperatureheat dissipation scenarios, a temperature risecalculation method for high altitude and hightemperature is constructed. In addition, atemperature rise and capacity reduction factorcalculation formula for high altitude and ahigh-frequency temperature rise and capacityreduction factor calculation formula are ?t toimprove eciency and reduce R&D costs.
Based on the electromagnetic theory, the couplingrelationship of electromagnetism combined with airgap travel changes is constructed to change theconventional magnetic system structure andrealize an energy-saving contactor structure.
In the ?eld of DC contactors, a newelectromagnetic drive system is designed toensure low power consumption of the productwhile enriching the functions of the DCcontactor.
Innovation ofresearch tools for
special working
conditions
Low-power
magnetic
system
New magnetic
system
The Company focuses on the layout of four innovation systems, namely, "innovation of research tools for special workingconditions, innovation of system structure, innovation of green extreme manufacturing, and innovation of business model".The scope of R&D covers materials, structure, performance, and so on. In terms of green R&D, by applying new processes,new technologies, new equipment, and new energy the Company has made technological advancements inhigh-energy-consuming process equipment and energy-saving algorithms to achieve green and low-carbon development.The Company actively seeks for digital transformation and explores the characteristics of the new energy industry todevelop innovative technologies. Currently, the Company possesses cutting-edge technologies including "multi-grid arcstriking technology", "solid-state, mixed chips technology", "new magnetic system", "low power consumption", and"high-voltage DC arc extinguishing".
Multi-grid arc striking technologyHigh-frequency temperature rise
control technologyHigh-voltage DC arcextinguishing technology
Smooth DC leakage protection
No power supply required for themagnetic materialNo heat generation during coilholding phase, low temperature riseLow power consumption in staticmode and long switching life
Full-cycle digital life managementUnmanned inspection and fault diagnosisOptimized human-machine interaction andreduced operating costs
No auxiliary power required, main loop pickup point
Critical currentDesign of magnetic system and
arc extinguishing systemDesign of new magnetic system
Structural anti-fusionwelding technologyArc mathematical modelMixed chips technology
Simple detection method
Low malfunction rate,
self-resettingCost-eectiveWith intelligentcommunication function
Al network for feature learning
Non-intrusive bus acquisition
for easy useCalibration based on actualload, enabling high accuracy
D
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actor
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Ecological design
5152
Overcurrent protector for use in households and similar placesLAZZEN's product list of green design
Integration of design and manufacturing
ModularDigitalLow-carbonLightweightLAZZEN's concept and practice of green design for low-voltage apparatus
Products of green design
The world's largest photovoltaic power distribution promotes the popularization of green energyFocusing on the Al Dhafra PV2 photovoltaic power plant project in the Middle East along the "Belt and Road", LAZZEN aimsto contribute to the sustainable development of photovoltaic power generation. To tackle extreme environmental challenges,such as high temperatures and sandstorms, the Company has implemented a combination in series and equipped the systemwith our customized intelligent power distribution products and solutions. This proactively optimizes the temperature rise ofkey current-carrying components, reduces the capacity reduction bottleneck caused by high-temperature environments, andensures the stable operation of the intelligent power distribution system under extreme conditions. The project has agrid-connected capacity of 2,100MW, which is expected to meet the power demand of approximately 160,000 householdsand reduce carbon emissions by over 3.6 million tons per year, This will promote the energy transformation and sustainabledevelopment of the United Arab Emirates. Additionally, it represents a signi?cant achievement for LAZZEN in constructingnew energy projects overseas and contributes to the global green energy transformation.
Under the context of "carbon peaking and carbon neutrality",the Company has expedited the green and low-carbondevelopment and enhanced research and development ofgreen products. The Company has consistently optimized ourproducts throughout their lifecycle, with a focus on thecharacteristics of electrical apparatus, such as lightweightdesign, low carbon emissions, recyclability, digitalization,modularization, and integration of design and manufacturing.These eorts have yielded signi?cant results. Currently, theCompany has been awarded the title of "National Green DesignProducts" for 10 models of products. These models have beenimproved in four areas: resource, energy, environmental, andproduct attributes. They have undergone a full-life-cycleassessment, which includes an environmental impactevaluation that considers factors such as carbon footprint.
MCCBUniversal circuit breaker
Power distribution equipment used by the Company in this project
The design and processes ofconductive system supportingparts, insulation parts, arcextinguishing system havebeen optimized to improvethe material utilization rate.
The Company has achieved intelligent production. Utilizing the big data technology, LAZZEN big data analysis and BIdisplay platform integrates massive business data from the enterprise resource planning platform (SAP), ordermanagement system (OMS), product lifecycle management (PLM), manufacturing execution system (MES), warehousemanagement system (WMS), quality management system (QMS), and intelligent cloud power distribution system. Thisimproves the overall R&D eciency by 30% and increases the ?rst pass yield of products by 30%.
The Company optimizes theratio of silver points andreduces the contactresistance, which greatlyreduces the powerconsumption during the useof low-voltage apparatuses.
The products are integratedwith Internet of Things (IoT)technology and equipped withdigital functions such ascomprehensive sensing,topology identi?cation,high-precision measurement,self-diagnosis, communicationmodularization, andintegration of protection,measurement and control.
The Company adopts theconcept of patchworkselection and modularizeddesign, which greatlyshortens the cycle of productdesign, development andmanufacturing.
NDB1-63 C16/1NDB1-63 C63/2NDB1-63 C63/4NDB1-63 C20/1
Case
··
···
·
2023 Environmental, Social and Governance (ESG) Report
5354
LAZZEN employees patrolled
the site of the Asian Games
Guardian of the 19th Asian Games Hangzhou
Reduce pollutant emissions
Clean production process
Non-toxic and low-toxic raw materials are preferred.Green production link
Green production
LAZZEN's green design products facilitate environmental protection and reduce carbon emissions
MCCB
NDC3 contactor
Pioneer enterprise of green and low-carbon manufacturing
The low-power, low-cost energy-saving design ofour dual-power NDQ5-250 products can meet therequirement of product post-test temperature riseof 80°C with very few materials, reducing carbonemissions. In addition, the design of NDC3contactors follows the green and low carbon policy.Recyclable parts are used to increase the productrecycling rate and facilitate environmentalprotection.
The Company prioritizes sustainable development of green and low-carbon initiatives. To achieve this, theCompany has established a green manufacturing management system team, improved the energy eciency offacilities and equipment, built photovoltaic projects, and implemented an energy management system. Inproduction, the Company adheres to the concept of green production by using low-toxic and non-toxic rawmaterials and continuously reducing pollution emissions through clean production processes. As a result, theCompany has been awarded the demonstration title of "National Green Factory".
During the reporting period, we provided green productsfor the 19th Asian Games Hangzhou, including high-powerLES lighting equipment, NDB1 miniature circuit breaker, andNDM5 molded case circuit breakers for use in the venues.Among them, the NDB1-63 miniature circuit breaker has anew structure and is highly automated with low powerconsumption. It provides short-circuit and overloadprotection and can be used for low-voltage terminal powerdistribution in industries such as intelligent buildings andnew energy. The NDM5(E)-250 molded case circuit breaker(MCCB) has high breaking and safety performance, lowpower consumption, and is energy-ecient andenvironmentally friendly. It is designed for distributingelectric energy and protecting circuits and power supplyequipment from faults, such as overloads, in the distributionnetwork.By utilizing reliable selective protection combinations, theCompany can prevent over-tripping accidents and otherunwanted conditions, ensuring maximum equipmentuptime. During the Asian Games, our operation andmaintenance team ensured smooth progress by preparingsucient spare parts, conducting regular patrols, andworking 24 hours per day.
Follow advanced design concepts, and select advanced supporting products for product development anddesign, to avoid unorganized emissions of smoke and dust in welding.Replace the oil-based ink printer with a laser printer to greatly reduce VOC emissions generated in the printingprocess.
Use water-based paints instead of instead of oil-based paints for anti-corrosion spraying on PCBs, in a way togreatly reduce the resulting emissions of VOCs, xylene, and acetone.
Clean core parts with ultrasonic before assembly to ensure that the parts are clean on the surface.The assembly workshop is a static 10,000-degree clean room. Before entering the workshop, strict cleaningprocedures should be followed to ensure that no one will pollute the environment of the workshop.Develop "Clean Workshop Use Requirements" for all entering personnel and sta in the workshop.
NDM5E-250H250/3/ETBNDM5-250H250/3TMD
Case
Case
5556
Water resource managementResource management
Resource and energy management
The Company provided training on environmental protection
LAZZEN's electroplating wastewater treatment system
The Company carried out training for environmental management
A sound environmental managementsystem
ISO 14001 certi?cation
Adhering to the concept of environmental protection, the Company has developedinternal environmental system documents, established an environmentalmanagement team structure, and implemented an environmental managementsystem in accordance with environmental protection laws and regulations, such asthe Environmental Protection Law, Atmospheric Pollution Prevention and ControlLaw, and Water Pollution Prevention and Control Law. Additionally, the Companyhas improved the environmental risk management mechanism and implemented theintegrated management of sustainable operations and ecological protection.In 2023,the Company invested a total of RMB 0.6 million in environmental protection.The Company regularly identi?es risks to environmental protection, assessesenvironmental impacts, and hires a third party to conduct environmental inspectionsand produce reports. Additionally, the Company provides environmental training forthe sta and continually improves the management of energy conservation, solidwaste, noise, wastewater, and waste gas. The Company has passed the ISO14001Environmental Management System Certi?cation.
Recognizing the signi?cance of resource and energy management, we have created the Resources and EnergyManagement Procedures to consistently promote eorts toward energy conservation and consumption reduction.By improving resource management, we can enhance the current energy utilization model, establish a smart energymanagement platform, and eectively promote resource and energy utilization.
The Company has adopted a concept of conservation and development to manage daily water, production water, andwastewater treatment, while setting strict environmental targets for water resources management. Additionally, theCompany protects water resources by holding regular water-saving meetings and implementing measures such as usinga card-swiping system to obtain water. In 2023, the Company puri?ed and recycled electroplating wastewater with anaverage recovery rate of 60.28%.
During the reporting period, to enhance the employees' awareness of environmental protection, the Company carriedout training and assessment on the safe emissions of wastewater and waste gas, consensus on indicators,classi?cation of hazardous wastes and warehousing processes and requirements for ?eld management personnelfrom the electroplating workshop, spot welding workshop, electronics workshop and frame workshop.
Case
5758
Installation of the distributed PV
Layout of the distributed PV system for net zero emissions
Equivalent value(tons of standardcoal)
Target value(Kgce/RMB 10,000)
Completed value(Kgce/RMB 10,000)
Targetachievement statusAnnualLAZZEN's energy management objectives
Energy management
189,648 m3160,632 m3142,199 m3Municipal water procurementvolume for 2021
Municipal water procurementvolume for 2022
Municipal water procurementvolume for 2023Critical data
Recycling of resources
The Company has chosen recyclable green packagingmaterials to promote the green transformation of theindustrial chain upstream and downstream, and hasimplemented a recycling system for both raw materials andpackaging materials. The Company has taken the initiative toassume responsibility for recycling and resource utilization ofabandoned products. This ensures the eective circulation ofwaste products among production enterprises, consumers,recycling enterprises, and dismantling enterprises.The Company provides online after-sales and model selectionconsultations through ocial websites, WeChat ocialaccounts, and other platforms. Services include waste productrecycling and osetting the cost of new products with usedones. Waste products will be recycled by a specializedthird-party organization based on the classi?cation of partsand components once they arrive at the Company's wastedismantling department.
The Company has established a smart energy managementplatform to improve energy utilization and promote energymanagement optimization. The Company has reduced powerconsumption in the production process, optimized energyconsumption structure, and decreased investment innon-renewable energy through the adoption of distributedphotovoltaic systems and other measures. The Company haspassed the ISO 50001 Energy Management SystemCerti?cation.Meanwhile, for the management of greenhouse gases, theCompany regularly monitors and inspects greenhouse gasemissions (Scope 1 and Scope 2) each year to identify sourcesand conducts research on high energy-consuming areas toreduce energy consumption and greenhouse gas emissions.
The product packaging has been marked withthe RoHS and recyclable logos by the Company
The Company passed the ISO 50001
system certi?cation.
20212,993.41
4,353.095,447.65
8.3
13.6
15.3
7.79
11.28
14.53
Achieved
Achieved
Achieved20222023
The Company has installed a distributed photovoltaic system on the roof of the building. This systemgenerates approximately 700,000 kWh of electricity annually, with over 95% of it being directly consumedby the Company, replacing outsourced power.
Case
5960
Waste gas management
Emission management
39,710,898 kWh
4,023,935 kWh
33,223,407 kWh23,160,000 kWh
1,688,602 kWh700,000 kWh
2,234m3
53,267.1m3
1,163.03m3
46,217m3
m3
45,856m3Critical data
Smart energy management platform
LAZZEN's LED lamps
Transformation of LED lamps and lightingThe Company's lighting system uses LED lamps only. In large workshops or oce areas, the lamps are activated based onzones. Additionally, the lighting is integrated with the automation control system, allowing for automatic control ofworkshop lighting based on shifts and schedules. This reduces unnecessary lighting during working days and rest days.The corridor lighting lamps are controlled by sound induction, while the street lamps are controlled by timing. Thiseectively reduces the power consumption of the lighting equipment.
An intelligent power distribution platform system has been installed and a smart energy management platformhas been built. The system includes functions for measuring data, managing operations and maintenance,analyzing energy consumption, displaying energy consumption, con?guring the system, and more. The systemcan provide early warnings for abnormal situations in real-time power consumption data collection for eachenergy consumption unit in the factory. The accumulated data can be statistically analyzed to provide eectivesupport for the implementation of energy conservation and consumption reduction.
The Company adheres strictly to relevant emission standards and regularly conducts third-party inspections toensure compliance with the law. A waste management system is in place, and the corresponding emissionmanagement objectives and plans are formulated annually to reduce the negative impact on the environment.
The Company produces only a small amount of welding waste gas in the production process, which is collectedand piped for uni?ed treatment by the waste gas collection hood on the sta station. The waste gas was testedby a third party and found to have concentrations of benzene, toluene, xylene, and non-methane hydrocarbonthat are well below the limit requirements set forth in the Comprehensive Emission Standard for AtmosphericPollutants. In 2023, the Company upgraded its puri?cation equipment to improve waste gas removal eciencyand reduce emissions. The Company adopted puri?cation technologies such as ROC zeolite deposit catalyticcombustion and UV photolysis.
Natural gas for 2021
Steam for 2021
Renewable energy for 2021
Outsourced power for 2021Outsourced power for 2022Outsourced power for 2023
Renewable energy for 2022Renewable energy for 2023
Steam for 2022Steam for 2023
Natural gas for 2022Natural gas for 2023
Case
202320222021UnitItem for disclosure
6162
Measures for green operation
Green operation
202320222021UnitItem for disclosureThe emission of waste gas, waste, and wastewater by the Company in the past three years
Solid waste and hazardous waste management
2023 Sewage and Waste Water Test Report of Hangzhou Bay Super Factory
Waste water managementThe Company utilizes a minimal amount of circulating cooling water during the production process and doesnot generate any industrial wastewater. In addition, the Company employs puri?cation and recycling measuresfor electroplating wastewater. Additionally, the Company annually commissions a third party to conductwastewater testing. All testing indicators consistently fall below the limit requirements set forth in theIntegrated Wastewater Discharge Standard.
The Company follows the principle of "recycling, reduction, and innocuity" when disposing of solid waste. Thecategory of general solid waste includes corrugated cartons, plastic bags, and foam packaging. The category ofhazardous waste includes parts cleaning liquid, contaminated waste, exhaust gas ?lter activated carbon, andIQC detection reagent waste liquid. The Company has signed recycling and treatment agreements withquali?ed third-party enterprises for the treatment of hazardous waste. The company disposes of solid waste instrict accordance with relevant regulations to prevent any negative impact on the surrounding environment andhuman health, and to avoid any potential for secondary pollution.
Total emissionsm
Mg/m
128,642,520
0.36
128,642,520
0.39
77,185,512
0.41
Particulate matters
Non-methanehydrocarbonVOC emissionsTotal amount ofrecyclable wasteTotal amount of general
solid wasteTotal wastewaterdischargeChemical OxygenDemand (COD)Five-day biochemicaloxygen demand (BOD5)Suspended solidsAmmonia nitrogen
PH
m
Mg/m
0.75
0.75
44.1
7.5
127,979.1
0.54
0.54
36.9
7.1
144,568.8
0.478
0.478
60.9
14.8
7.2
170,683
Mg/m
Mg/LMg/LMg/LMg/L
TonTon
The Company promotes the concept of green operation and encourages a low-carbon lifestyle. Employees areencouraged to take environmental protection actions and receive regular environmental awareness training.The Company also promotes environmental protection measures, such as implementing a paperless ocethrough OA system, to eectively strengthen employees' environmental awareness.
Use energy-saving equipment, energy-savingLEDs, and solar street lights in the park.
Link green operation with KPI of administrative
departments.
Reduce the purchase and use of disposable paper cups.
Strengthen environmental protection publicity to enhance
employees' awareness of environmental protection.
Adopt the 5S model for workshop production
management.
Boost the OA paperless oce to promote
informationization.
环境、社会及公司治理（ESG）报告
6364
SDGs benchmarking
Our actions
Our concept
Digital andIntellectualDevelopmentGrasping theopportunity of service
We implement the concept of sustainable development and promote thedevelopment of digital intelligence. We attach importance to theprotection customers' rights and interests and strive to providehigh-quality products and perfect service by improving the transformationof digital intelligence, quality control, and lean production capacity.
Topic: Digital intelligent interactionleads the future of enterprisesCustomer serviceResponsible marketing
0104
0203
2023 Environmental, Social and Governance (ESG) Report
6566
Intelligent power distribution
Smart electricity use
LAZZEN Hangzhou Bay Super Factory has been listed inthe "2023 2nd China Top 100 Benchmarking IntelligentFactories" alongside well-known enterprises such as Haier,Gree, FAW, and SAIC. This demonstrates LAZZEN'sleadership in transforming China's manufacturing industryfor the future. This honor demonstrates the success of thedigital transformation of China's manufacturing industry,and its continued leadership in the development ofintelligent manufacturing.
LAZZEN was included in the List of 100 Smart Factories inShanghai released by the Shanghai Municipal Commissionof Economy and Informatization. This indicates thatLAZZEN excels in green and smart manufacturing, asacknowledged by the Shanghai municipal government.
Digital intelligent interactionleads the development
Enhanced R&D capability
Eective informationization
construction
Comprehensive technology platformScienti?c mode of operationPerformance of development strategy of digital intelligence
Development strategy for digital intelligence
Topic: Digital intelligent interactionleads the future of enterprises
Since its establishment, the Company has adhered to the brand positioning of "an expert in intelligent high-end low-voltageelectrical system solutions" based on the vision of "to do better than our best in low-voltage apparatus and work together tobuild a new zero-carbon ecosystem of smart apparatus". To meet the need for operation upgrading and expansion, and respondto China's "14th Five-Year Plan" for Intelligent Manufacturing Development and Made in China 2025, we accelerate theimplementation of "intelligent power distribution, smart homes, and new energy electrical technologies". The Company has alsoactively launched the special "762 Digital Strategy" project to build a digital, networked, and intelligent demonstration factory.While leveraging its leading advantages in market segmentation, the Company makes signi?cant strides in key industries suchas construction, electricity, and new energy. Additionally, the Company has expanded into emerging markets such as smarthomes, new energy vehicles, charging and swapping facilities, and smart grids.
Focusing on the high-end low-voltage apparatusmarket and adopting BtoB marketing approach,the Company has grown rapidly and gained asigni?cant market position.
Through technological innovation, processoptimization and library resource integration, theCompany applied IT to build a library of selectedmaterials and realize normalized materialselection, thus improving product quality andeciency.
Based on IPD 2.0 transformation,end-to-end process-based organizationand comprehensive measures, theCompany has improved productcompetitiveness and customer responsecapability and gained technological andoperational leadership for commercialsuccess.
The Company will promote digitalstrategic planning, and build andimprove the dealer inventory networkmanagement system and sales processmanagement system on the marketingside. In addition, the Company willcontinueto deepen the IPD process, builda demand management platform, andimprove the quality control capability.
The current complicated international situation means an opportunity of the times for China's national brands of low-voltageapparatus. This also aligns with the call of the "14th Five-Year Plan" for the systematic layout of new infrastructure construction.As a customer-centric and market-oriented company, the Company adheres to the business philosophy of "improving quality,creating quality products and serving customers". The Company is dedicated to providing customers with the best solutions aswell as quality products and services through scienti?c analysis of the market and professional technical services.The Company's intelligent product business includes intelligent power distribution and smart homes. The intelligent powerdistribution system allows customers to monitor and adjust power consumption precisely, promoting energy conservation andsafety. Smart home technology allows customers to remotely control lighting, air conditioning, security, and other equipment intheir homes through an intelligent assistant or app. This achieves customization and brings convenience and a comfortableexperience to customers.
The intelligent power distribution business is becoming more digital and intelligent with the rapid development of informationtechnology, to meet the growing challenges of energy. Based on years of experience in the development of intelligentswitchgear, the Company has launched an electrical and digital solution, the so-called Magic Link Power Smart ManagementPlatform, by integrating fully intelligent components, modules, and software, thus forming an intelligent power distributionsolution integrating software and hardware.
LNG63
2023 Environmental, Social and Governance (ESG) Report
6768
IoT gateway
Mobile phone app launched
Mobile phone app
Intelligent cloud power distribution system
IoT gatewayMobilephoneapp
Intelligentcloud powerdistributionsystem
Magic Link Power smart management platform
P1 NDW3X-5000-3P
Smart productBy designing intelligent products, LAZZEN enables more accurate monitoring of the power grid. An intelligentchip is added to the product to promote interconnection between intelligent devices. This allows for real-timeremote controllable tripping, improving power stability and safety management.
With the extensive application of the mobile terminal, a mobile terminal operation platform has been launchedto better support the cloud platform's application and achieve "palm control", providing convenient operationfor users.
With the monitoring and management of the "electric power" system as the core, intelligent cloud powerdistribution 3.0 integrates the applications of medium and low-voltage systems to achieve integrated platformmanagement. Currently, an intelligent system that integrates an intelligent cloud power distribution system, amobile phone app, and the Internet of Things has been developed.
The IoT gateway can quickly set up on-siteequipment to access the Internet with the help of a4G/5G network and a variety of broadband services.This allows for data optimization, real-time response,agile connection, and intelligent analysis at the edgenodes of the Internet of Things. It also signi?cantlyreduces the data trac between the site and thecentral terminal, lowers operating expenses for users,and alleviates pressure on the cloud.
The product solution for electrical systematizationincludes functions for collecting, monitoring, analyzing,predicting, and guiding. Data acquisition and processingcan be achieved through the underlying intelligentdistribution components and intelligent sensors of theCompany. The solution can also be combined withmultiple communication technologies to upload data tothe intelligent cloud power distribution platform, thusproviding ecient support for the digitalization andlow-carbon transformation of power distribution invarious industries, including industry, public buildings,real estate, commerce, transportation, information andcommunication, new energy, and industrial control.
LAZZEN 002706.SZ
Easy operation:
Page displayAsset mnagement
Fault and O&Mmanagement
Flexible application:
Full control:
Project management, fast switching of project scenarios for query,modular design, independent functional sections
Overview: site information, site assets, site energyconsumption Monitoring and control: device monitoring,one-key separation/connection, timing control Topologylog: system/topology map, video monitoring, log records
Devices displayed by category, the same as the web terminalPresentation of the distribution framework, enabling quickgrasp of the device connection status
Fault: SMS noti?cation, quick location, faultclassi?cation, fault analysisO&M : work order and progress query, O&MguidelinesRecords: operation records, displacementrecords (account number)
"Digital and intelligent" application, grasping project information any time,modular interface design, enabling quick searchMulti-platform application, support for iOS,Android, HarmonyOS, all-weather onlinemonitoring, avoiding the blind spot of O&Mmanagement, synchronization with web terminal,and real-time feedback of data
IoT gateway (NDGW series)
Cost-eective IoT (edge computing) gateway
6970
Aurora series products
Intelligent power distribution system helps to build a leading intelligent manufacturing hub
Intelligent power distribution system helps to build a leading intelligent manufacturing hub
Smart home
Intelligent power distribution system helps to build a leading intelligent manufacturing hub
Our intelligent power distribution system solution addresses the issues of low operational and maintenanceeciency, as well as the lack of monitoring and optimization of terminal energy eciency in the WINGTEC IntelligentManufacturing Industrial Park. The intelligent NDB5E circuit breaker and Magic Link Power intelligent softwaresystem work together to achieve intelligent, ecient, green, and energy-saving power distribution. This helpsWINGTEC Kunming Intelligent Manufacturing Industrial Park become a signi?cant intelligent manufacturing hub for5G terminals worldwide and establishes a national demonstration of a green and low-carbon industrial park.
LAZZEN is dedicated to innovation in the ?eld of smart homes. The Magic Panels series features a simple designand multi-functional temperature controllers. By utilizing intelligent technology, household equipment can beautomated and intelligently controlled, which increases convenience and comfort in daily life and greatlyimproves the overall user experience. At the same time, LAZZEN Magic Link Home is an intelligent ecologicalplatform that utilizes advanced Internet of Things technology. It maintains openness, meets user needs, and realsystem stability through the local gateway. This contributes to energy conservation, waste reduction, andsustainable development.
LAZZEN Magic Link Home is an intelligent platform for realestate and homes that utilize cutting-edge technologiessuch as Zigbee, wired KNX, and other Internet of Thingstechnologies. It is also compatible with third-partyintelligent equipment and ecological platforms, allowingusers to customize it for dierent scenes. LAZZEN MagicLink Home can also run scenarios and devices o-networkthrough the local gateway, maximizing the stability ofsystem operation.
Customized integrated intelligent power distribution solution
Ecological layout of LAZZEN Magic Link Home
The Magic Panels series adopts the family vision and minimalist design that is suitable for various home furnishingstyles. The Magic Panels series can be combined horizontally, vertically, criss-cross, and in multiple rows, whichmaximizes the utilization of home space while maintaining the furnishing integrity. The Magic Panels series integratesan ultra-thin 3-in-1 multi-functional thermostat. The link between modules can achieve 1+1>2 operation experienceand multiple control modes can meet the needs of diverse users. Additionally, the Magic Panels series productsintegrates the Grati ecological platform and the nine systems of LAZZEN Smart Home, which allows for thecombination of functions among dierent products, resulting in a more convenient and user-friendly experience.In 2023, the Company launched the Magic Panels Aurora Series, which combines beauty with durability through theuse of AG glass. This series supports Zigbee or KNX communication modes, enriching the product portfolio for smarthomes.
AddSelf-cleaning functionWind direction settingMaster-slave displayLock functionFault code display
10% for mode adjustment
33% for the switching function25% for temperature adjustment20% for air?ow adjustment
5% for each of timing andwind direction adjustment
Integrated temperature control
LAZZEN Magic
Link Home
Case
Case
Case
2081780251780
15796418
3872.28%30819Minute
2023 Environmental, Social and Governance (ESG) Report
7172
Start from scratch
WeChatocial accountSpare parts inquiryFAQ (video shooting)
Online manualcustomer serviceRobot response
Voice of ServicePropagandaPromotionAnnouncement
300+Statement
KPIs for LAZZEN's service
Third-partyserviceresourceLAZZEN'safter-salesengineer
LAZZEN's after-sales management system
Customerservice
Standard management of customer service
Service management system
Customer service
The Company always adheres to a customer-oriented service concept and continuously improves its servicesystem and standards to meet customer expectations and demands, ensuring customer satisfaction.
The number of dealer after-sales partners increased from 18 to 45The number of dealer after-sales service personnel increased from 15 to 51
Develop third-party serviceresourcesReserve for ?eld serviceresources (?eld O&M,
competitor/customerafter-sales engineers,third-party service engineers)
5 after-sales skills and certi?cation training sessions nationwide, covering over100 personnel
Resource integration(regional management)Product knowledge and
skills test
Cultivation of multi-talented
workers
StatementNumber of inquiry
conversations
Number of inquiry
clientsNumber of manual
conversationsAverage ?rstresponse time
Number of inquirymessagesManual response
rate
Announcement
BusinessNews
PropagandaTotal push
The Company continuously enhances its customer service system and standards, and has developed theManagement Procedures for Customer Returns and Recall, as well as the Management Procedures forCustomer Complaints and After-sales Handling. Furthermore, the Company has proactively established anafter-sales service ecosystem, which includes LAZZEN, distribution partners, and third-party serviceresources, forming a multi-dimensional integrated service architecture. A customer service managementsystem is available to provide customers with timely, accurate, and satisfactory services.The Company places great importance on managing and monitoring customer service. The Company aims toimprove service levels through administrative measures such as process control, regular reviews, andprofessional training. In the meantime, digital system tools are utilized to monitor and evaluate work quality.Moreover, the Company collaborates with various departments to address potential service risks on thePlanning Committee platform.Upon receiving customer feedback, the customer complaint specialist will forward the issue to the seniortechnical service engineer for resolution. Quality and technical problems should be submitted to thetechnical support department for handling. The technical support department will then coordinate withrelevant departments to analyze and address the root cause of the problem within a speci?ed timeframe andrecord it in the internal improvement system.
In 2023, to achieve data- and IT-based management of after-sales customer services, LAZZEN developed anafter-sales service map platform based on the ITR system platform. The map platform displays the workdistribution of customer service personnel, enabling the Company to know the overall situation of after-salesservice in a timely manner and further improve the management eciency of after-sales customer services.
Carry out project managementthrough IPD process and conducttechnical seminars based on ITMTto meet customers' demands.
Expand after-sales servicechannels, such as WeChat ocialaccount, telephone, and e-mail.
Establish regional caretakers to linkthe after-sales service business.
Improve the mechanism oflinking major market problemsand promoting the resolution ofthese problems.
Strengthen the after-sales capacitybuilding of dealers, provide skillstraining for service personnel, andestablish after-sales service outletsacross China.
Dealerafter-sales
partner
7374
Marketing training for distributors
Responsible marketing
Customer satisfaction survey
- Work order status monitoring- Service tracking- Personnel map positioning- Distribution of service outlets
- Statistical analysis- Service heat map- Cost statistics- Human eciency calculation
Map Data PlatformAfter-sales service
The Company conducts regular customer satisfaction surveys and holds meetings to review and analyzefeedback results. This helps to continuously improve and maintain a positive reputation. In 2023, theCompany distributed 325 questionnaires to assess customer satisfaction. In addition to 6 conventionalelements, including service attitude, response timeliness, and product quality, the questionnaires addedindicators such as solutions and environmental compliance to know customers' evaluation on environmentalprotection of the Company's products and services. Currently, the Company has recovered 276 copies witha questionnaire recovery rate of 84.92%. The overall customer satisfaction score is 92.28, which is higher thanthe target set at the beginning of the year by 7%, The Company has developed an improvement plan forweak areas. Moving forward, the Company will strive to enhance customer service quality and maintain apositive reputation.
The Company adheres strictly to the national Advertisement Law and other relevant laws and regulations inmanaging the publicity of products and business for the purpose of developing appropriate promotionalcontent and methods for products and business. The Company held four professional competence trainingsessions for the sales personnel of the distributors to strengthen marketing management, enhance theprofessionalism of the sales personnel, and cultivate their sense of responsible marketing. The trainingsessions improved their professional competence and sense of responsible marketing in areas such asproduct knowledge, solutions, and sales skills.
环境、社会及公司治理（ESG）报告
7576
SDGs benchmarking
Our actions
Our concept
WorkingtogetherSafeguardingcommunity well-being
LAZZEN ?rmly believes that people are the cornerstone of an enterprise'sdevelopment. The Company is dedicated to oering competitivecompensation and bene?ts, as well as development opportunities, tosafeguard the physical and mental well-being of employees while growingalongside them. The Company engages in industry cooperation, resourcesharing, market development, and establishment of industry partnerships.Additionally, the Company ful?lls its social responsibilities by participatingin social welfare activities and giving back to society.
Humanistic careIndustry cooperationCommunity public welfare
7778
BonusSalaryEquitySharing theresult ofdevelopment
Protectingtalents
Compensation and bene?ts
Compensation and bene?ts - equity, salaries, and bonuses
By education backgroundCategory by sta's professionCategory of employee
Revise the subsidy management system
Standardize the recruitment control and process
Revise the preparation and approval procedure
Complete the performance evaluation content
Modify the position setting andstrengthen the post level management
Clarify the organization classi?cation
and adjust the structure process
Certi?cate of theOccupational Healthand SafetyManagement SystemRevised contents of the Human Resources Management System
Employee employment and rights and interestsHumanistic care
LAZZEN strictly abides by laws and regulations such as the Labor Law of thePeople's Republic of China, the Labor Contract Law of the People's Republic ofChina and the requirements of the local government. Additionally, LAZZEN hasobtained ISO45001 occupational health and safety management certi?cation. Incombination with the Human Resource Management System and other measures,the Company continues to revise and improve the management system to meet theactual needs of the Company. Meanwhile, the Company has taken steps to eliminateunfair treatment by implementing anti-discrimination regulations. The Company iscommitted to the principle of equal pay for equal work, prohibits any form ofdiscrimination, and resolutely rejects the use of child labor and forced labor. Thesemeasures are in place to safeguard the legitimate rights and interests of employeesand to create a fair, diverse, and mutually respectful working environment.
The organizational structure has been adjusted andthe corresponding processes and steps have beenspeci?ed.
The procedure for formulating and approving theestablishment has been revised to improve eciencyand accuracy.
The principle of dual control over recruitment hasbeen strengthened, and the recruitment demandmanagement process and campus recruitmentprocess have been standardized.
The top-level planning and budgeting of remunerationhave been added. The regulations on determinationand adjustment of bene?ts, subsidies, and salary, aswell as the standards for travel allowances, transportation,and accommodation have been revised.
Job setting and adjustment have been revised to adaptto the needs of the organization and ensure theaccurate matching of personnel with jobs.
The virtual quarterly grade evaluation has beenadded, including the performance assessment ofIPMT members, PDT representatives, andsupporting personnel.
During the reporting period, the Company employed a total of 2,533 sta, all of whom signed the laborcontract. The Company has 854 female employees, and the employee turnover rate decreases by 26.64%over 2022.
Total number of grass-roots employeesTotal number of middle managementNumber of female sta in middlemanagementTotal number of senior managementNumber of female sta in seniormanagement
ProductionpersonnelSales personnelTechnical sta
Financial staAdministrativesta
Bachelor's degree oraboveCollege degreeTechnical secondaryschool and below
To establish and improve the bene?t sharing mechanism, optimize the governance structure, attract excellenttalents, promote the Company's stable development, enhance competitiveness, and achieve common growthfor employees and the Company, the Performance Management System and the Compensation and Bene?tsManagement System have been formulated. These systems are formulated based on fair, just, andtransparent performance-related pay and are combined with sta performance appraisals to conductscienti?c salary management and motivate employees to improve their individual abilities.The Company oers the employees three bene?ts: equity, salary, and bonus. The Company values theindividuality and dignity of the employees and encourages them to display their talents and embody theirpersonal values. According to the market-oriented and customer-centric approach, the Company hasdeveloped a competitive talent incentive and assessment system.
Share registration and transfer have been completed for LAZZEN's employeeshareholding plans "Struggler No. 2" and "Business Decision-making Team No. 1".On January 4, 2023, the Company launched the 2023 Employee Stock OwnershipPlan, covering a total of 455 employees and 15 managers.
In terms of bonus and performance, the Company replaced the administrative bonusgranting system with an acquisition and sharing system. "PBC+Job performance"enables individual performance management to take into account both short-termand long-term goals, which provides incentives and ensures sustainability.
In terms of salary, the Company increases ?exibility and improves security basedon the job system and with reference to the market level.
25002000
15001000
2,293
1,264
1,181
Driving performancePangu Academy
Teachingand researchteam leadInstructorsIndustry chaincommunication platformUniversity-enterpriseexchange meetingConsultation ontransformation projectsYoung designer trainingbase
Trainingsecretary
LAZZEN Talent Development CenterCourse levels
Edison Academy
WIN PlanConstruction of the internal
instructor resource pool
Introduction of external
resourcesLAZZEN People Training
Mainly based on the fourth level(business experts - level 27 to 30)
Internal trainings to iron triangles
Mainly based on the third level(business backbones - level 23 to 26)Mainly based on the second level(primary forces of grassroots -level 19 to 22)
Panshi Academy
LAZZEN course libraryOnline learning platformPBC + position ful?llment
Lean AcademyTalent Academy
1. Key position
quali?cation
2. Management
position training
3. Senior management
training
External resource platforms
Mine training needsDesign trainingReview trainingcoursesEvaluate training
DevelopcoursewareDeliver trainingcoursesQ&A andexamsOrganize trainingTrack aftertraining
2023 Environmental, Social and Governance (ESG) Report
7980
Data for2023Unit
Employeetraining
Item for disclosure
The Company provided orientation training for new employees to bring vitality to the workplace.
Internal training system for employees
Employee training and development
Critical data
Democratic communicationAs required under the Trade Union Law and theConstitution of the Chinese Trade Unions, the Company hasset up a trade union and workers' congresses. Regularcongresses of workers and sta are held, and an equalconsultation and collective contract system has beenimplemented. By facilitating democratic dialog andcollecting feedback from all sta members, the OA -Xinsheng Community has been improved to ensure theeective implementation of democratic management. TheCompany also advocates for a factory aairs disclosuremechanism to enhance democratic supervision, andresolves labor disputes through legal mediation to fosterharmonious and stable labor relations.
The Company has established three teams comprising of cadres, experts, and employees. Furthermore, a talentdevelopment center has been created to improve performance by training exceptional individuals. The training content isclosely aligned with job requirements and performance objectives. Additionally, the Company prioritizes the developmentof core talents and a professional team, continuously improves its talent training system and establishes a classi?edtraining mechanism that covers all employees. The Company also conducts characteristic training programs for employeesof dierent levels and categories. In 2023, our Talent Development Center founded the Lean Institute for courses relatedto supply chain specialists, which aims to create selected lean courses to meet the trainees' needs on lean manufacturing.
To assist new employees in becoming familiar with the corporate systems and processes and assimilatinginto the Company more quickly, the Company organized a comprehensive general induction trainingcourse. This course covers various aspects, including corporate culture, human resources, ?nancialmanagement systems, operational processes, risk management, and safety matters.
During the reporting period, the Company organized341 training courses totaling 717 class
hours. Of these, 16 courses were for new employees, and 94 participants attended.
Orientation training for new employees
Total number of employees trainedBy gender
Number of male employees trainedNumber of female employees trainedNumber of grass-roots employees trainedNumber of senior management employees
trainedTotal length of employee trainingAverage length of employee training
By type of employee
Person-time19,883
14,6155,26819,703
52,525.5
32.7
Person-timePerson-timePerson-timePerson-time
HourHour
Case
·····
····
····
2023 Environmental, Social and Governance (ESG) Report
8182
Diversi?ed club activities
The clubs are a source of inspiration for the upward spiritual aspirations of employees.
Employee activities
LAZZEN's Mummy's Houses provided care for the female.
Bene?ts
Bene?ts provided by the Company to the employees
Employee bene?ts
Employee bene?ts and activities
Pursuant to the Social Insurance Law of the People's Republic of China, the Company has developed aCompensation and Bene?ts Management System to safeguard the social rights and interests of employees.The Company is obligated by law to provide the employees with various social insurances, includingendowment insurance, basic medical insurance, unemployment insurance, work-related injury insurance,maternity insurance, and housing provident fund. The Company conducts regular physical examinations forall sta to ensure a 100% coverage rate.By providing various welfare bene?ts, the Company improves the well-being and satisfaction of theemployees.
The Company values humanistic care and is deeply convinced that employee well-being is inextricably linkedto building a positive, ecient, and creative team. To enrich the cultural life of employees and strengthentheir sense of belonging, the Company actively oers various forms of activities. The Company also providessincere and warm care to relieve employees of diculties and oers economic, psychological, and legalsupport. Furthermore, the Company integrates a warm cultural atmosphere and care measures into everydetail, eectively enhancing the team cohesion.The Company also organizes special theme projects, such as succulent potted plant production, Mid-AutumnFestival Carnival, and Christmas aroma activities. These events aim to enrich the cultural and spiritual lives ofemployees.
In order to promote collaboration among employees, the Company has established several clubs, including a runningclub, badminton club, football club, basketball club, and table tennis club. The Company has also implementedappropriate measures for the management of these clubs and provided the necessary funding and venue support. Clubactivities attract over 500 active participants monthly, enhancing cohesion among employees and promoting a positivecorporate culture.
The Company has established two private, comfortable, and convenient spaces, known as Mummy's Houses, forfemale employees during pregnancy and lactation. The houses are equipped with essential amenities, such as an airpuri?er, a water dispenser, and a mini refrigerator. They are cleaned and maintained daily by specialized personnel toensure cleanliness and tidiness. Female employees can access the houses by swiping their cards, re?ecting theCompany's concern for their well-being.
Five socialinsurances andhousing fundHouseholdregistration inShanghaiSubsidies forclub activitiesTeam buildingfees
Excellence selection activityAnnual technical innovationawardIntellectual property incentiveRationalization proposal foremployeesIncentives for outstandingemployees
Annual physicalexaminationCare for femaleemployeesEmployeehardship fundConsolation forsick employees
Incentives
Interior facilities of LAZZEN's Mummy's Houses
Case
Case
8384
Forums attended in 2023
School-enterprise cooperation in 2023
Industry cooperation
Working together to build a dream, LAZZEN launched a special cultural performance.
The Company arranged for the employees to watch a wonderful performance of the labor unions
The Company arranged for the employees to watch a wonderful performance by the Kangqiao Federation of TradeUnions, the Pudong New Area Federation of Trade Unions, the Pudong New Area Art Guidance Center, and theShanghai Shuxin Literature and Art Travel Group in the park. The event was well-attended, with over 700 peoplepresent. The performers received applause and praise, bringing energy to the dedicated sta!
The Company was invited to participate in the activities of the Second Session of the Eighth CES SpecialCommittee on Electrical Product Reliability and give a speech on Application of DOE in the Accelerated LifeTesting of Products, which demonstrated the Company's strength and innovation ability in reliability research.
The Company took part in the 2023 China Electrical Equipment Industry Association New Energy ApplianceAlliance Council Meeting and New Energy Appliance Integration Development Forum. The aim was to promotedigital transformation and green development, with the mission of achieving "carbon peaking and carbonneutrality" and building a new electric power system.
The Company actively participated in the Third Session of the Eighth CES Special Committee on Low-VoltageApparatus and the 2023 Low-Voltage Apparatus Academic Symposium, with the aim of building an academicexchange platform for the low-voltage apparatus industry, promoting innovation and cooperation forindustry-university-research, and providing public services to the industry.
LAZZEN actively engages in school-enterprise cooperation, participates in industry forums, and assists incompiling industry standards. This promotes knowledge sharing and technological innovation, contributingto the progress and development of the industry.
To strengthen the industry-university-research cooperation education, make full use of resources andstrengthen the spirit of building a practice teaching base, we have established a practice base in cooperationwith Shanghai Jiaotong University.
Case
8586
LAZZEN constructed high-altitude wind farms to promote development in Xizang
LAZZEN's wind power distribution solution assists ultra-high altitude wind turbines in scaling the "roof of the world"
Community public welfareStandard TypeStandard NameStandard No.Engagement in formulation and revision of standardsin 2023No.
LAZZEN has participated in community public welfare and rural revitalization activities. This has helped
establish a corporate social responsibility image and strong cooperative relationships with local residents,
government agencies, and community organizations. These eorts have injected vitality into the Company's
sustainable development, promoted the sustainable development of the social economy, and helped achieve
the Company's long-term strategic objectives.
LAZZEN constructed a wind farm in Zhegu Town, Cuomei County, Xizang, which ?lls the gap in wind powerdevelopment in ultra-high-altitude areas. This project promotes the use of clean energy and contributes to ruralrevitalization and social bene?t. The Company has created job opportunities for local residents, improved energysupply, and promoted economic and social development. Additionally, the project has reduced dependence ontraditional energy sources, promoted sustainable development, and opened up new paths for the prosperity andhigh-quality development of local villages.
Low-voltage switchgear and controlgear - Part 1:
General rulesSwitchgear and controlgear and their assemblies for
low-voltage-energy eciency
Circuit breaker for equipment (CBE)Insulation coordination for equipment within low-voltagesystems - Part 1: Principles, requirements and testsGuidelines of environmentally conscious design of
low-voltage apparatusGeneral requirements for low-voltage DC distribution
protective equipmentTechnical speci?cation for application of residual
current operated protective devices
Design standard for smart homeMolded-case circuit-breakers with remote control
function and data transmission functionTechnical speci?cation for testing the current limiting
energy of MCBsIntegration requirements for digital design information and
process information of user side electrical equipmentTechnical speci?cation for green-design product
assessment - Transfer switching equipmentTechnical speci?cation for green-design product
assessment - Air circuit breakerDistribution technical standard for intelligent low-volt-
age circuit-breaker with IoT functions
Electrical accessories - Residual current monitors(RCMs) - Part 1: RCMs for household and similar uses
NationalstandardNationalstandardNationalstandardNationalstandardNationalstandardNationalstandardIndustrystandard
Groupstandard
Groupstandard
Groupstandard
Groupstandard
Groupstandard
Groupstandard
Groupstandard
Groupstandard
GB/T 14048.1-2023GB/Z 43029-2023GB/T 19214.1-2023GB/T 17701-2023GB/T 16935.1-2023GB/T 24975-2023NB/T 11208-2023
T/ASC 33-2023T/SAC 42-2023T/CEEIA 663-2023T/CEEIA 664-2023T/CEEIA 667-2023T/CEEIA 693-2023T/CEEIA 694-2023T/CECA 20032-2023
Case
8788
Social performance
DataUnitIndex
DataUnitIndex
Corporate governance performance
DataUnitIndex
Environment performance
DataUnitIndex
Economic performance
List of KPIs
Total assetsYuan5,819,530,562.85
4,134,942,564.794,585,057,446.11
510,971,393.22
0.47
627,853,104.79
YuanYuanYuanYuanYuan/share
Environmental protection inputEnergy consumption
Natural gas
Ten thousand yuan
Operation of three meetings
Board of directorsNumber of times7
283,141,027.78
Number of timesNumber of timesItemItemPersonYuan
Board of supervisorsShareholders' meetingNew patent application for the yearNewly granted patents of the yearNumber of R&D personnelInvestment in R&D
Intellectual property
R&D
m
m
KWHMg/m
Mg/m
Mg/m
Mg/L
Mg/L
Mg/L
Mg/L
Ton
Ton
SteamRenewable energyParticulate mattersNon-methane hydrocarbon
VOC emissionsChemical Oxygen Demand (COD)
Five-day biochemical oxygen
demand (BOD5)Suspended solidsAmmonia nitrogenTotal amount of general solid waste
Total amount of recyclable waste
Emission of gaseous pollutants
Water pollutant discharge
Waste discharge
Net assetOperating incomeNet pro?t attributable to shareholders of listed
companiesBasic earnings per shareNet cash ?ow from operating activities
53,267.1
2,2344,023,935
0.14
0.478
0.478
60.9
14.8
Total employees
Bachelor's degree or above
College degreeTechnical secondary school and
belowProduction personnel
Sales personnelTechnical staFinancial staAdministrative staPerson
PersonPersonPersonPersonPersonPersonPersonPerson2,533
1,264
1,181
By employee's education level
By employee’s position
8990
LocationItem for disclosureGRI standard
GRI Standards Content Index
Content Index
By employee’s class of position
Total number of grass-roots employees
Total number of middle managementNumber of female sta in middle
managementTotal number of senior management
Number of female sta in senior
managementNumber of workdays lost due towork-related injuriesNumber of employees died due towork-related incidentsNumber of employees in positionsexposed to occupational diseasesNumber of employees undergoingoccupational disease physical examsNumber of employees withoccupational diseasesNumber of work-related injuriesNumber of work-related accidentsNumber of workdays lost due towork-related injuriesNumber of work-related fatal accidentsNumber of work-related fatalitiesPercentage of suppliers who have signedthe Supplier Code of ConductNumber of suppliers who have conducted
social impact assessmentsNumber of suppliers who have conductedenvironmental impact assessments
National standardIndustry standardGroup standard
Occupational safety and health
Supply chain management
Industry standard
DataUnitIndexPerson2,293
8.5
8.5
PersonPersonPersonPerson
PersonPersonPerson
Person
Person
//ItemItemItem
%
Hour
/
/Day
Day
Statement of useThe title of GRI 1 used
GRI 2 General disclosures 2021The organization and its reporting practices
Activities and workers
2-12-22-32-42-52-62-72-8Governance2-92-102-112-122-132-142-152-162-17
Organizational detailsEntities included in the organization's sustainability reporting
About This ReportAbout LAZZENAbout This ReportFeedback
Humanistic careList of KPIs
About LAZZENThe Company has no such disclosure.The Company has no such disclosure.
The Company has no such disclosure.
Corporate Governance | Please refer to theCompany's 2023 Annual ReportCorporate Governance | Please refer to theCompany's 2023 Annual ReportCorporate Governance | Please refer to theCompany's 2023 Annual ReportCorporate governance
Corporate governanceCorporate governance
Corporate governanceCorporate governance | Compliance risk control| Intellectual property protection
Corporate Governance | Please refer to theCompany's 2023 Annual Report
About LAZZEN
Reporting period, frequency and contact pointRestatements of informationExternal assuranceActivities, value chain and other business relationshipsEmployeesWorkers who are not employeesGovernance structure and compositionNomination and selection of the highest governance bodyChair of the highest governance bodyRole of the highest governance body in overseeing themanagement of impactsDelegation of responsibility for managing impactsRole of the highest governance body in sustainability reportingCon?icts of interestCommunication of critical concernsCollective knowledge of the highest governance body
LAZZEN reported the information cited in this GRI Content Index by reference to the
GRI standards from January 1, 2023 to December 31, 2023.
GRI 1 Foundation 2021
9192
2-18Evaluation of the performance of the highest governance bodyPlease refer to the Company's 2023 Annual Report
Please refer to the Company's 2023 Annual Report
Safety Responsibility: Pursuing Solid and SteadyDevelopmentGovernance speci?cations: Strengthening InternalManagementLow-carbon and Environmental Protection: Striving toBe a Green PioneerDigital and Intellectual Development: Grasping theOpportunity of ServiceWorking Together: Safeguarding Community Well-beingSafety Responsibility: Pursuing Solid and SteadyDevelopmentGovernance speci?cations: Strengthening InternalManagementLow-carbon and Environmental Protection: Striving toBe a Green PioneerDigital and Intellectual Development: Grasping theOpportunity of ServiceWorking Together: Safeguarding Community Well-beingCompliance risk controlCustomer serviceResponsible marketingCorporate governance | Compliance risk control
Honors obtained in 2023 | Industry cooperation
Product quality and safetyInformation security protectionIntelligent work safetyGreen and responsible supply chainCorporate governanceCompliance risk controlIntellectual property managementResponsible marketingHumanistic care
Corporate governance
Corporate governance
Corporate governanceCorporate governance
Humanistic care
Humanistic care | Please refer to the Company's2023 Annual ReportHumanistic care | Please refer to the Company's 2023Annual ReportRemuneration policiesProcess to determine the remunerationAnnual total compensation ratioStatement on sustainable development strategyPolicy commitments
Embedding policy commitments
Processes to remediate negative impactsMechanisms for seeking advice and raising concerns
Compliance with laws and regulations
Membership associationsApproach to stakeholder engagementCollective bargaining agreementsProcess to determine material topicsList of material topics
2-192-202-212-222-23
2-24
2-252-26
2-27
2-282-292-303-13-2GRI 3: Material Topics 2021
Stakeholder engagement
Strategy, policies and practices
3-3201-1201-2201-3201-4GRI 202: Market Presence 2016
GRI 203: Indirect Economic Impacts 2016202-1202-2203-1203-2204-1205-1
206-1207-1207-2207-3207-4301-1301-2301-3
205-2205-3
GRI 204: Procurement Practices 2016GRI 205: Anti-corruption 2016
GRI 206: Anti-competitive Behavior 2016GRI 207: Tax 2019
GRI 301: Materials 2016
GRI 302: Energy 2016
Management of material topicsCorporate governance
List of KPIsGreen technology for low-carbon development ofenterprisesPlease refer to the Company's 2023 Annual Report
Please refer to the Company's 2023 Annual ReportPlease refer to the Company's 2023 Annual ReportPlease refer to the Company's 2023 Annual Report
Please refer to the Company's 2023 Annual ReportThe Company has no such disclosure.The Company has no such disclosure.
The Company has no such disclosure.Resource and energy management | List of KPIsResource and energy management | List of KPIsResource and energy management | Green operation
Green technology for low-carbon development ofenterprises | Community public welfareGreen and responsible supply chainCompliance risk controlCompliance risk controlCompliance risk controlCompliance risk control
Green technology for low-carbon development ofenterprisesDevelopment strategy for digital intelligence
Direct economic value generated and distributedFinancial implications and other risks and opportunities due to climatechangeDe?ned bene?t plan obligations and other retirement plansFinancial assistance received from governmentRatios of standard entry level wage by gender compared to local minimumwageProportion of senior management hired from the local communityInfrastructure investments and services supportedSigni?cant indirect economic impactsProportion of spending on local suppliersOperations assessed for risks related to corruptionCommunication and training about anti-corruption policies and proceduresCon?rmed incidents of corruption and actions takenLegal actions for anti-competitive behavior, anti-trust, and monopolypracticesApproach to taxTax governance, control, and risk managementStakeholder engagement and management of concerns related to taxCountry-by-country reportingMaterials used by weight or volumeRecycled input materials usedReclaimed products and their packaging materials
GRI 201: Economic Performance 2016
LocationItem for disclosureGRI standardLocationItem for disclosureGRI standard
9394
302-1Energy consumption within the organizationResource and energy management
The Company has no such disclosure.The Company has no such disclosure.
The Company has no such disclosure.The Company has no such disclosure.The Company has no such disclosure.
Green technology for low-carbon development ofenterprises
Green technology for low-carbon development ofenterprisesA sound environmental management systemResource and energy managementGreen operation
Green technology for low-carbon development ofenterprisesA sound environmental management systemResource and energy managementEmission managementList of KPIsGreen technology for low-carbon development ofenterprisesA sound environmental management systemResource and energy managementResource and energy management
Resource and energy managementResource and energy managementNot disclosed for nowNot disclosed for nowNot disclosed for nowNot disclosed for nowNot disclosed for now
Emission managementList of KPIsThe Company has no relevant operational site
Energy consumption outside of the organizationEnergy intensityReduction of energy consumptionReductions in energy requirements of products and services
Interactions with water as a shared resource
Management of water discharge-related impactsWater withdrawalWater dischargeWater consumption
Signi?cant impacts of activities, products and services on biodiversityHabitats protected or restored
Direct (Scope 1) GHG emissionsEnergy indirect (Scope 2) GHG emissionsOther indirect (Scope 3) GHG emissionsGHG emissions intensityReduction of GHG emissionsEmissions of ozone-depleting substances (ODS)Nitrogen oxides (NOx), sulfur oxides (SOx), and other signi?cant airemissions
Operational sites owned, leased, managed in, or adjacent to, protectedareas and areas of high biodiversity value outside protected areas
IUCN Red List species and national conservation list species with habitats inareas aected by operations
302-2302-3302-4302-5
303-1
303-2303-3303-4303-5304-1304-2304-3GRI 305: Emissions 2016304-4305-1305-2305-3305-4305-5305-6305-7
GRI 304: Biodiversity 2016
GRI 303: Water and Euents 2018
306-1306-2
308-2308-1
401-1401-2401-3402-1403-1403-2403-3403-4403-5403-6403-7403-8403-9403-10404-1404-2404-3
GRI 404: Training and Education 2016
GRI 405: Diversity and Equal Opportunity 2016
306-3306-4306-5
GRI 306: Waste 2020
Waste generation and signi?cant waste-related impactsEmission management
Emission managementEmission managementEmission managementEmission managementGreen and responsible supply chainGreen and responsible supply chainHumanistic careHumanistic careHumanistic care
Humanistic careHumanistic careHumanistic care
The Company has no such disclosure.Intelligent work safetyIntelligent work safetyIntelligent work safetyIntelligent work safetyIntelligent work safetyIntelligent work safetyIntelligent work safetyIntelligent work safetyIntelligent work safetyIntelligent work safety
Management of signi?cant waste-related impactsWaste generatedWaste diverted from disposalWaste directed to disposalNew suppliers that were screened using environmental criteriaNegative environmental impacts in the supply chain and actions takenNew employee hires and employee turnoverBene?ts provided to full-time employees (not provided to temporary orpart-time employees)Parental leaveMinimum notice periods regarding operational changesOccupational health and safety management systemHazard identi?cation, risk assessment, and incident investigationOccupational health servicesWorker participation, consultation, and communication on occupationalhealth and safetyWorker training on occupational health and safetyPromotion of worker healthPrevention and mitigation of occupational health and safety impacts directlylinked by business relationshipsWorkers covered by an occupational health and safety management systemWork-related injuriesWork-related ill healthAverage hours of training per year per employeePrograms for upgrading employee skills and transition assistance programsPercentage of employees receiving regular performance and careerdevelopment reviews
GRI 308: Supplier Environmental Assessment 2016
GRI 401: Employment 2016
GRI 402: Labor / Management Relations 2016GRI 403: Occupational Health and Safety 2018
LocationItem for disclosureGRI standardLocationItem for disclosureGRI standard
YesNoVery goodGoodFairAveragePoor
Very goodGoodFairAveragePoorVery goodGoodFairAveragePoorVery goodGoodFairAveragePoorVery goodGoodFairAveragePoor
9596
Feedback
Multiple choice questions (please mark your choice with )
Open-ended question
405-1Diversity of governance bodies and employeesCorporate governance | Humanistic care
The Company has no such disclosure.
The Company has no such disclosure.
The Company has no such disclosure.Product quality and safety
Customer service | Responsible marketingThe Company has no such disclosure.
The Company has no such disclosure.The Company has no such disclosure.The Company has no such disclosure.
Industry cooperation | Community public welfareThe Company has no relevant operational siteGreen and responsible supply chainGreen and responsible supply chain
Humanistic careHumanistic careHumanistic careHumanistic careHumanistic care
Ratio of basic salary and remuneration of women to menIncidents of Incidents of discrimination and corrective actions takenOperations and suppliers in which the right to freedom of association andcollective bargaining may be at riskOperations and suppliers at signi?cant risk for incidents of child laborOperations and suppliers at signi?cant risk for incidents of forced orcompulsory laborSecurity personnel trained in human rights policies or proceduresIncidents of violations involving the rights of indigenous peoplesOperations with local community engagement, impact assessments, anddevelopment programsOperations with signi?cant actual and potential negative impacts on localcommunities
Negative social impacts in the supply chain and actions takenPolitical contributionsAssessment of the health and safety impacts of product and servicecategoriesIncidents of non-compliance concerning the health and safety impacts ofproducts and servicesRequirements for product and service information and labelingIncidents of non-compliance concerning product and service informationand labelingIncidents of non-compliance concerning marketing communicationsSubstantiated complaints concerning breaches of customer privacy andlosses of customer data
New suppliers that were screened using social criteria
405-2406-1407-1408-1409-1410-1411-1413-1413-2414-1414-2415-1416-1416-2417-1417-2417-3418-1
GRI 406: Non-discrimination 2016GRI 407: Freedom of Association and Collective Bargaining 2016GRI 408: Child Labor 2016GRI 409: Forced or Compulsory Labor 2016GRI 410: Security Practices 2016GRI 411: Rights of Indigenous Peoples 2016GRI 413: Local Communities 2016
GRI 414: Supplier Social Assessment 2016
GRI 415: Public Policy 2016GRI 416: Customer Health and Safety 2016
GRI 417: Marketing and Labeling 2016
GRI 418: Customer Privacy 2016
Dear readers,Dear readers,Thank you for taking the time to read the 2023 Environmental, Social and Corporate Governance (ESG)Report of Shanghai Liangxin Electrical Co., Ltd.To enhance the value of information provided to you and other stakeholders, and to eectively promotethe Company's competence in environmental, social, and corporate governance performance, wewelcome your comments and suggestions.
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LocationItem for disclosureGRI standard
Electricity For Life