STOCK CODE: 603228
Address:
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fax:
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Kinwong Electronics Building, No. 158, Guangyuan 3rd Road, DongkengCommunity, Fenghuang Subdistrict, Guangming District, Shenzhen+86-755-8389 3919+86-755-8389 1680http://www.kinwong.comstock@kinwong.com
SHENZHEN KINWONG ELECTRONIC CO., LTD.
Environmental, Social and Governance Report
KINWONG
ESG Governance SystemResponse to the United Nations SDGsESG Risk ManagementStakeholder Communication and EngagementMateriality Assessment and Analysis
Introduction
About the ReportMessage from the ManagementKinwong at a GlanceKinwong's Performance in 2024Honors and Awards
CONTENTS
Conclusion
Key Performance IndicatorsReport Standard IndexReader Feedback Form
Environmental
Environmentally Friendly and GreenInnovationEnvironmental Management SystemToxic Emissions and Circular EconomyImproving Resource Utilization E?ciencyClimate Governance and Low-CarbonTransformationEcosystem Protection
Governance
Integrity and Compliance in Operations
Improving Governance StructureInvestor Relations ManagementCompliance OperationsBusiness Ethics and Anti-CorruptionEqual Treatment of SMEsEnsuring Information Security
Craftsmanship and Lean ProductionProduct Safety and QualityInnovation-Driven DevelopmentIntellectual Property ManagementIndustry Collaboration and Win-WinCooperationBuilding a Sustainable Supply ChainCustomer Service and Responsible MarketingCollaborative Development of the IndustryPeople-Centered, Shaping the FutureTogetherStandardized Talent IntroductionEmployee Development and TrainingEnhancing Employee Well-beingCreating a Healthy Work EnvironmentSocial Contributions and Feedback
Social
Sustainability Blueprint
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Introduction
Report OverviewThe 2024 Environmental, Social and Governance (ESG) Report of Shenzhen Kinwong Electronic Co., Ltd.is the thirdESG report released by Shenzhen Kinwong Electronic Co., Ltd. (hereinafter referred to as "Kinwong", "the Company",or "we") (stock code: 603228). This report objectively and truthfully discloses the Company's performance inenvironmental, social, and governance matters during 2024. All currency amounts in this report are expressed inRenminbi (RMB).Report Scope and BoundariesTime Period: The time period covered by this report is from January 1st, 2024 to December 31st, 2024 (hereinafterreferred to as "the reporting period"). Some content is extended to previous and subsequent years when appropriate.Report Boundary: Unless otherwise specified, this report covers Shenzhen Kinwong Electronic Co., Ltd. and itssubsidiaries.Reporting BasisGuidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)issued by the Shanghai Stock Exchange (SSE)Morgan Stanley Capital International (MSCI) ESG RatingsGRI Sustainability Reporting Standards(GRI Standards) issued by the Global Sustainability Standards Board (GSSB)Sustainability Accounting Standards Board (SASB) StandardsFinal Report: Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)United Nations Sustainable Development Goals (SDGs)Data SourcesThe information and cases disclosed in this report are sourced from our o?cial documents, statistical reports, orpublicly available materials. We guarantee that the contents of this report do not contain any false statements,misleading claims, or signi?cant omissions. In the event of any inconsistency between the data in this report and the?nancial report, the data in the ?nancial report shall prevail.
Report AccessThis report is published in electronic format and can be accessed via our website (https://www.kinwong.com/) or theShanghai Stock Exchange website (http://www.sse.com.cn/).
Company Names and Abbreviations
Company NameAbbreviationCompany Type
Shenzhen Kinwong Electronic Co., Ltd.
Shenzhen Kinwong, Kinwong, the Group,
the Company, we
Shenzhen HeadquarterJiangxi Kinwong Precision Circuit Co., Ltd.Jiangxi Kinwong
A wholly-owned
subsidiary of KinwongKinwong Electronic Technology (Longchuan) Co., Ltd.Longchuan Kinwong
A wholly-owned
subsidiary of KinwongKinwong Electronic Technology (Zhuhai) Co., Ltd.Zhuhai Kinwong
A wholly-owned
subsidiary of KinwongZhuhai Kinwong Flexible Circuit Co., Ltd.Zhuhai Kinwong Flexible
A majority-owned
subsidiary of KinwongKinwong Electronic Technology (Ganzhou) Co., Ltd.Ganzhou Kinwong
A wholly-owned
subsidiary of KinwongKinwong Electronic (Thailand) Co., Ltd.Kinwong Thailand
A wholly-owned
subsidiary of Kinwong'ssubsidiary
About the Report
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Dear shareholders, partners, employees, and friends from all sectors of society,In the challenging yet opportunity-rich year of 2024, sustainable development has accelerated its shift from astrategic vision to a concrete action plan for the enterprises. As a leading player in the global electronic circuitindustry, Kinwong has always adhered to its environmental, social and governance (ESG) philosophy of "leanproduction, technological innovation, environmental protection, sustainable development, and giving back tosociety", continuously exploring the depth and breadth of ESG practices. Here, we would like to extend our heartfeltgratitude to all stakeholders who have supported our growth while sharing the key progress and future commitmentsin ESG.
Shaping a sustainable future with strategic leadership and compliance assuranceFaced with the dual challenges of global climate change and industrial transformation, Kinwong has continuedto optimize its ESG governance structure, defining an ESG strategy centered around "adhering to a value-drivenapproach, focusing on technological innovation, consistently delivering high-quality products and services toour customers, and building a green, low-carbon modern enterprise". We have continuously improved our ESGmanagement system consisting of the Board of Directors, the Strategy and ESG Committee, and the ESG Task Force.This system has ensured the e?ective operation of the full "leadership and oversight–decision-making–execution"process, further advancing the implementation of our ESG governance and integrating it into daily businessoperations and development. Our e?orts have been recognized by the broader community. In 2024, Kinwong wasselected for the "Excellent Practice of the Board Office of Listed Companies" by the China Association for PublicCompanies, received the Panorama Gold Award for Investor Relations (2023)–Outstanding Shareholder ReturnAward, and won the Cailian Press Zhiyuan Award–ESG Pioneer Award.We have established a comprehensive compliance governance and risk management system, enhancingmanagement effectiveness and reducing operational risks through digital systems. A multi-level internal controlstructure comprising the Board of Directors, the Board of Supervisors, and the Audit Committee has beenestablished, and the Internal Control Management Measures have been formulated. With ERP, MES, and EAP systemsat the core, we have integrated the entire data loop across the supply chain, production, and customer service,driving a transition from "experience-driven" to "data-driven" business decision-making.Achieving a full breakthrough from low-carbon operations to a circular economy through energyconservation, consumption reduction, and green developmentWe are committed to "peaking carbon emissions by 2025 and achieving carbon neutrality by 2050", continuouslytracking, assessing, and updating short-term, medium-term, and long-term environmental performance goals eachyear. Under the guidance of the "carbon peaking and carbon neutrality (dual carbon)" goals, Kinwong will makesustained efforts to build a carbon-reduction system covering the full lifecycle of "production–products–supplychain" with a focus on the building of green factories.
In 2024, Kinwong successively launched the integrated photovoltaic, energy storage, and power consumptionproject and the photovoltaic power generation project at its production bases, while promoting distributedphotovoltaic projects, with a goal of installing 15 MW of photovoltaic capacity by 2026. We have carried outcentralized procurement of International Renewable Energy Certi?cates (I-RECs), corresponding to green electricityconsumption of 141,950 MWh, representing about 17.5% of our total electricity consumption. The Jiangxi XinfengHigh Layer Count PCB Intelligent Manufacturing Base was put into production in January 2025. This new baseemploys internationally advanced intelligent equipment and green processes, achieving visual management ande?cient resource utilization throughout the entire production process through the deep integration of the Internetof Things (IoT), big data, and artificial intelligence (AI), with an expected reduction in energy consumption perunit product by about 20% compared to traditional factories. Kinwong has conducted greenhouse gas emissionsveri?cation for three consecutive years and has proactively joined the Science-Based Targets initiative (SBTi) and theCarbon Disclosure Project (CDP).Furthermore, we have established and improved the long-term water conservation mechanism to e?ectively reducewater intake and improve water resource utilization e?ciency. In 2024, all production bases met the set quantitativewater conservation targets. Zhuhai Kinwong passed the "Water-Saving Enterprise" acceptance in Zhuhai, and JiangxiKinwong was honored as a "Provincial Water-Saving Benchmark Enterprise".Giving back to society and striving for enduring success through our people-oriented philosophy and win-wincollaborationEvery step forward for the Company is inseparable from the value creators who have overcome challenges along theway. Kinwong has established a mature talent development system, with a total of approximately 170,199 traininghours and 2,707 training sessions in 2024. Placing great importance on fostering a positive work atmosphere, wehave conducted annual organizational atmosphere surveys for all employees, continuously improving the overallorganizational atmosphere.Sustainable development relies on collective efforts across the entire value chain. Kinwong has developedsustainable procurement policies, strictly controlled the risk of con?ict minerals, and enhanced supplier integrity.In supplier performance evaluations, a "green supply chain" bonus point system has been introduced, with 600suppliers signing integrity agreements, achieving a signing rate of 100%. Additionally, we have encouraged 538suppliers to conduct social and environmental impact assessments.At the same time, we have actively participated in public welfare activities such as ecological construction,educational support, voluntary blood donations, and charitable donations, striving for a win-win development withsociety. In 2024, the total amount of our charitable donations reached RMB 2.98 million.The future is ?lled with both challenges and hope. With a more open mindset and stronger actions, we will activelyembrace the transformation of the technological industry and seize market opportunities, while consolidating andraising our leading position in the global market through high-quality products and services. Firmly committed tosustainable development principles, we will continue to walk side by side with global partners, creating synergies formutual bene?t and jointly shaping the future of green intelligent manufacturing.
Message from the Management
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Shenzhen Kinwong Electronic Co., Ltd. (603228.SH, Kinwong), founded in 1993, is a national high-tech enterprisespecializing in the research, development, production, and sales of printed circuit boards (PCBs), with the capabilityto provide comprehensive product solutions. Our products are widely used in various ?elds including automotive,next-generation communication technologies, data centers, AIoT, consumer electronics, industrial Internet,medical devices, new energy, and satellite communication. With superior product quality and services, Kinwonghas established long-term strategic partnerships with many globally recognized clients, with its business extendingacross the world.
Our products cover diversi?ed categories, including multi-layer PCBs, heavy copper PCBs, high-frequency and high-speed PCBs, metal-based PCBs, FPCs, and rigid-?ex PCBs. We have also actively expanded into higher-value-addedproducts such as HLC, HDI, and SLP, forming a clear and multi-layered product matrix.
Kinwong has established six production bases in China, located in Shenzhen and Longchuan County in GuangdongProvince, Jishui County and Xinfeng County in Jiangxi Province, as well as Jinwan District and Fushan Industrial Park,Zhuhai. An overseas production base in Thailand is currently under construction. The Company has also set up multipleo?ces globally, achieving an international strategic layout with cross-regional, di?erentiated, and sustainable supplycapabilities. Through continuous optimization of its excellent management system, Kinwong has expanded its globalmarket presence and diversi?ed product portfolio, establishing a robust international brand image.
Kinwong at a Glance
Key Application Areas of Kinwong Products
Introduction to Kinwong's Seven Major Production Bases
This base serves as the Company'sheadquarters and pivot, mainlyfocusing on small to medium batch,multi-variety production, withproducts mainly used in automotive,industry, power supply, healthcare,intelligent terminal, and other ?elds.
This base is equipped with the mostcomprehensive range of productlines in the Company, focusing onmedium to large batch production,with products widely applied incommunications, power supply,automotive, industry, 5G, intelligentterminal, and other ?elds.
As an industry-leading factory inautomation and intelligence, thisbase primarily focuses on massproduction, with products mainlyused in sectors demanding rigoroustraceability and quality control, suchas automotive electronics, industrialcontrol, healthcare, and high-endconsumer products.
Shenzhen KinwongLongchuan KinwongJiangxi Kinwong
As a highly automated factory withcost leadership, this base was putinto production in January 2025.Its products are expected to beused in ICT equipment, automotiveelectronics, communication devices,industrial control, and other ?elds.
With HLC and HDI (includingSLP) factories, this base mainlyoffers cutting-edge products andtechnologies. Its products are primarily
applied in servers, high-end consumerelectronics, AR/VR, communications,automotive, and other fields. TheHDI factory supports any layerinterconnection and mSAP capabilities.
This base is mainly engaged in large-scale FPC production, with productsprimarily used in fields such as newenergy power batteries, wirelesscharging, display modules, consumerelectronics, and network devices.
Ganzhou KinwongZhuhai KinwongZhuhai Kinwong Flexible
This base aims to meet the overseas demand for high-end products such as HLC and HDI in automotiveelectronics, high-end consumer electronics, AI servers & data centers, and other fields.
Kinwong Thailand (Under Construction)
Millimeter-wave radar, cameras, LiDAR, advanced driver-assistance systems (ADAS),ADCU, lighting systems, new energy charging and distribution, in-vehicle informationentertainment systems, body electronics systems, BMS battery systems, etc.AutomotiveElectronics
General servers, AI servers, switches, optical modules, storage devices, etc.Data Centers
Switch routers, optical fiber equipment, communication base stations, satellite
communications, etc.Communications
Smartphones, smart wearables, laptops, smart TVs, smart speakers, intelligent home
control systems, etc.ConsumerElectronics
Robotics, industrial automation equipment, power control systems, drones, electronic cigarettes,
medical monitoring instruments, medical devices, implantable medical devices, etc.Industrial Controland Healthcare
Company Profile
Market Layout
Product Overview
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
In 2023, Kinwong clarified its strategic goal for the next five years, which is torealize the high-quality"Double Hundred Project".
Kinwong's First-Tier Organizational StructureElaborate and Quality ProductsCorePhilosophy
Circuits connect the world, creating the internet of thingsMission
Customer oriented, caring about value creators, self-reflection, integrity, responsibility,cooperation, innovation
CoreValues
People foremost, manufacturing competitive products, expanding the enterprise, andrepaying the society
BusinessPhilosophy
To become the most reliable printed circuit board manufacturer in the worldVision
Lean production, technological innovation, environmental protection, sustainabledevelopment, and giving back to societyESG
Philosophy
Adhering to a value-driven approach, focusing on technological innovation, consistentlydelivering high-quality products and services to our customers, and building a green, low-carbon modern enterpriseESG
Strategy
Corporate CultureOrganizational Structure
Development Strategy
Key Performance Indicators
The Company aims to achieve revenue of over RMB20 billion by 2028 and become one ofthe top ?ve PCB suppliers globally.
Board of Directors
President
Marketing Management Center
North American Market Development & Technical Support DepartmentTechnology R&D CenterPresident O?ceAudit and Supervision DepartmentOperation Management CenterProcurement Management DepartmentInformation Management DepartmentQuality Management CenterEnvironmental Management DepartmentHuman Resource Management DepartmentFinancial Management DepartmentProcess Management DepartmentEquipment and Automation Management DepartmentLean Innovation O?cePCB Product LineJiangxi PCB Business UnitFPC Product
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Percentage of
employees attending businessethics training
100%
Major litigation cases involving
corruption or
unfair competition
Confirmed data
securityincidents
Confirmed
customer privacybreaches
Total operating revenue
RMB
12.659
billion
Investor communication
sessions
Announcements published
Net pro?t attributable to shareholders of
the listed company
RMB 1.169 billion
Business PerformanceCorporate GovernanceBusiness EthicsInformation Security
and Privacy Protection
GovernancePerformance
Supplier ManagementLabor ManagementCharitable DonationsOccupational Health and Safety
Con?rmed cases of
discrimination
Social welfare investmentRMB
2.98
million
Con?rmed
cases offorced labor
Con?rmed cases of
child labor
Percentage of employees exposed
to occupational hazard factors
undergoing occupational health
checks
100%Number of suppliers identi?ed withsigni?cant actual or potential negativesocial impacts
Recognized as a National GreenSupply Chain Management Enterprise
Percentage
of suppliers signing integrity
agreements
100%
Total employee training
hours throughout the
year
170,199hours
Percentage of
employees receiving
safety education
100%SocialPerformance
Resource UtilizationWastewater, Waste Gas, and Solid
Waste Management
Administrative penalties for
environmental incidents from
the Ministry of Ecology and
Environment and other relevant
departments
RMB
Self-generated and
self-consumed renewable
electricity
2,397,382 kWh
Recyclable packaging
materials
18,662.04tons
Shenzhen Kinwong, Zhuhai Kinwong,Zhuhai Kinwong Flexible, andLongchuan Kinwong all passedthe UL 2799 Environmental ClaimValidation Procedure for Zero Wasteto Land?ll. Among these, ShenzhenKinwong, Zhuhai Kinwong, and ZhuhaiKinwong Flexible achieved Platinumdesignations.
Energy-saving investment in 2024
RMB
million
International Renewable Energy
Certi?cates (I-RECs) purchased:
Corresponding to green electricity
consumption of
141,950 MWh
Accounting for about
17.5%
of the
Company's total electricity
consumption
Environmental
Performance
Environmental Management
Total annual environmental
investment: Increased for 3
consecutive years
202420232022RMB
million
RMB
millionRMB
million
Kinwong's Performance in 2024
1112
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
· Kinwong's ?rst megawatt-levelintegrated photovoltaic, energystorage, and power consumptionproject was put into operation.
· The Zhuhai Key Laboratory ofPrinted Circuit Boards for IntelligentConnected Vehicles and High-Performance AI Servers and theZhuhai Key Laboratory of FlexibleCircuits for New Energy Batterieswere recognized as "Zhuhai KeyLaboratories".· The Thailand factory held agroundbreaking ceremony.
· Jiangxi Kinwong won the 4th Ji'an
City Mayor's Quality Award.· Ganzhou Kinwong completed the
construction of its main structure.January
OctoberDecember
· Kinwong's two innovation patents,
US17826501 Asymmetric Board andUS17768665 Method for FabricatingAsymmetric Board, were grantedU.S. patents.
· Kinwong was listed among the Top 100Guangdong Enterprises in the Electronics andInformation Manufacturing Industry for OverallStrength in 2024.· The Jingjia Intelligent Manufacturing Towercelebrated the construction completion of itsmain structure.
July
July
· Jiangxi Kinwong was approved forthe establishment of a NationalPostdoctoral Programme.
June
September
November
· Six products of Kinwong were newly
selected as Guangdong FamousHigh-Tech Products.
· Kinwong received the Recognitionfor Intel? Automatic In-BoardCharacterization (AIBC).
· Kinwong was recognized as aNational Green Supply ChainManagement Enterprise.
Milestones in 2024
1314
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Honors and Awards
The 59th among the Top 100Guangdong Enterprises in theElectronics and InformationManufacturing Industry for Overall
Strength
National (Shenzhen) ExcellentEnterprises with ForeignInvestment–Shenzhen Top TenTurnover EnterprisesTop 100 Private ManufacturingEnterprises of Guangdong Province
CSI ESG Ratings ASynTao Green Finance ESG
Ratings A-
Wind ESG Ratings BBBChina Securities Index ESG
Ratings A
Postdoctoral ProgrammeJi'an City Mayor's Quality AwardGreen Manufacturing andEnvironmental Protection Excellence
Enterprise
ESG Pioneer Award2024 Excellent Practice ofthe Board O?ce of Listed
Companies
贵司董事会办公室（证券部）忠实履职，勤勉尽责，表现优异，荣获“年度上市公司董办实践案例”。特发此证，以资鼓励。
中国上市公司协会证书编码：
景旺电子：
2024优秀
2024年12月CAPCODB2024603228
2024 Board SecretaryPerformance Evaluation"4A" Rating
荣获年上市公司董事会秘书履职评价评级，特发此证。
中国上市公司协会
证书编号：
黄恬：
20244A
2024年12月CAPCODM2024603228
2024 Listed CompanyGovernance Award of theGreater Bay Area
Customs Authorized EconomicOperator (AEO) AdvancedCerti?cationDigital Transformation Maturity–3-
Star LevelHigh-Tech Enterprise Certi?cate
Best ESG Newcomer AwardGold Award for InvestorRelations (2023)–IR
Progress Award
Gold Award for Investor
Relations (2023)–Outstanding Shareholder
Return Award
2024 Listed CompanyExcellent Investor Relations
Award
1516
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTESG Governance System
A clear ESG strategy and philosophy form the theoretical foundation for Kinwong's value-driven approach,while a robust and comprehensive ESG governance system serves as the internal pillar for effectively fulfillingour environmental and social responsibilities. To achieve our sustainable development goals, we have fullyintegrated the ESG philosophy into our corporate development strategy and operational decision-making. We havecontinuously intensi?ed our e?orts to pursue technological innovation, consistently deliver high-quality productsand services to our customers, and build a green, low-carbon modern enterprise. Our e?orts aim to maximize theintegrated economic, social, and environmental value.
Kinwong has established a three-tier ESG governance structure from top to bottom, consisting of the decision-makinglevel, management level, and execution level, ensuring the clear assignment of ESG management responsibilities atall levels and the e?ective promotion of our sustainability goals.
We are committed to strengthening the Board's supervision and management of ESG matters, formulating andadjusting ESG strategies and policies as needed, regularly reviewing ESG progress, and soliciting feedback from allstakeholders. This enables us to continuously improve our ESG performance to meet stakeholder demands andexpectations better.
Adhering to a value-driven approach, focusing on technological innovation, consistentlydelivering high-quality products and services to our customers, and building a green,low-carbon modern enterpriseESGStrategy
ESGPhilosophy
Lean production, technological innovation, environmental protection, sustainabledevelopment, and giving back to society
Sustainability Blueprint
· Formulates and regularly reviews the Company's ESGmanagement policies, strategies, and framework to ensurethat they align with the Company's needs and comply withapplicable laws and regulations;· Reviews the ESG goals set by the ESG Task Force for the
Company, supervises the implementation of these goals,and tracks their progress;· Identi?es and assesses ESG risks and opportunities of theCompany, evaluates their material impact on the Company'sbusiness, and identi?es and prioritizes material issuesrelated to the Company;· Reviews the Company's annual ESG report and other ESG-related disclosures, and reports to the Board of Directors.
ManagementLevel
Chair: Chairman of theBoard of Directors
Strategy and ESGCommittee under theBoard of Directors
Decision-Making Level
· Holds overall responsibility for the Company's ESG
governance decisions;· Guides and reviews the Company's ESG management
policies, strategies, and objectives;
· Supervises sustainability-related impact, risk, and
opportunity assessments of the Company;· Regularly monitors the progress and completion of
sustainability goals;
· Approves the Company's ESG reports.
Board of Directors
· Builds capabilities in implementing the Company's
sustainable development management policies, executing
speci?c ESG practices, conducting data collection and
analysis, and communicating with investors and research
institutions;· Formulates the Company's ESG-related policies and rules
for implementation;· Develops stakeholder engagement plans and organizes
communication activities;· Organizes the preparation of the annual ESG report and
regularly reports to the management level.
ExecutionLevel
Leader: CompanyPresidentDeputy Leaders:BoardSecretary, EnvironmentalManagement DirectorMembers: Heads of ?rst-tier departments related toESG matters
ESG Task Force
1718
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTResponse to the United Nations Sustainable Development Goals
SDGsGoal Details
CorrespondingReport Section
Actions in 2024
End poverty in all itsforms everywhere.
SocialContributions andFeedback
We have participated in public welfare activities such aseducational support and rural revitalization and engaged innon-targeted assistance work through charitable donations,strengthening infrastructure construction, and investing inindustries to contribute to rural development.
Ensure healthy lives andpromote well-being forall at all ages.
Creating a HealthyWork Environment
We have developed a strategic safety management system,established a vertical management system for the WorkplaceSafety Committee across ?ve production bases, maintainedthe ISO 45001 Occupational Health and Safety ManagementSystem certi?cation, and provided safety training for allemployees.
Ensure inclusive andequitable qualityeducation and promotelifelong learningopportunities for all.
EmployeeDevelopment andTraining
We have implemented an all-round training systemwith diverse training plans and established a scienti?cperformance evaluation mechanism and comprehensivecareer development pathways.
Achieve gender equalityand empower all womenand girls.
Standardized TalentIntroductionEnhancingEmployee Well-being
We uphold equal employment and provide a fair,inclusive work environment for employees regardless ofethnicity, race, gender, and belief. We ensure employmentopportunities for key and special groups, including hiringpeople with disabilities and o?ering them equal bene?tsand promotion opportunities. Additionally, we place a highpriority on the protection of female employees' rights andinterests as well as their physical and mental well-being,with dedicated welfare and care programs for women.
Ensure availabilityand sustainablemanagement of waterand sanitation for all.
Toxic Emissions andCircular EconomyImproving ResourceUtilizationE?ciency
We have established a long-term water conservationmechanism through a robust water conservationmanagement system, investigation of water use data,inspection of water supply and drainage networks,maintenance and renovation of water-using equipment,water balance tests, abundant water conservation awarenesscampaigns, and enhanced daily inspections. Moreover, westrictly ensure that wastewater discharge meets relevantstandards to reduce pollution to surrounding water bodies.
Ensure access toa?ordable, reliable,sustainable and modernenergy for all.
Climate Governanceand Low-CarbonTransformation
We have increased investment in energy conservation,initiated multiple energy e?ciency improvement projects,and promoted energy-saving equipment optimization,upgrading, and technology transformations. We havesuccessively launched the integrated photovoltaic,energy storage, and power consumption project and thephotovoltaic power generation project and carried outcentralized procurement of International Renewable EnergyCerti?cates (I-RECs) to increase the proportion of cleanenergy use.
Promote sustained,inclusive andsustainable economicgrowth, full andproductive employmentand decent work for all.
Standardized TalentIntroduction
We have established and improved the labor managementsystem to ensure compliance management in employeerecruitment, employment, dismissal, compensation andbene?ts, working hours, and holidays. We strictly prohibitchild labor and resist all forms of forced labor. Furthermore,we make all-around e?orts to create a safe, healthy, andcomfortable working environment.
SDGsGoal Details
CorrespondingReport Section
Actions in 2024
Build resilientinfrastructure,promote inclusiveand sustainableindustrialization andfoster innovation.
Toxic Emissions andCircular Economy
We have promoted the concept of green o?ce across the
board, adopted remote work practices, held low-carbon and
environmentally friendly work exhibitions, and popularized
the idea of the circular economy.
Ensure sustainableconsumption andproduction patterns.
EnvironmentalManagementSystemImproving ResourceUtilizationE?ciency
Our production bases have carried out key water-saving
projects to increase the reuse rate of wastewater in
production lines. We have optimized raw material inventory
management to improve inventory turnover while setting
and keeping track of phased targets for carbon emission
reduction.
Take urgent action tocombat climate changeand its impacts.
Climate Governanceand Low-CarbonTransformation
We have established an organizational structure and working
mechanism for the greenhouse gas emissions management
system, identi?ed climate change risks and opportunities,
and developed response strategies. Moreover, we have
participated in initiatives such as the Science-Based Targets
initiative (SBTi) and the Carbon Disclosure Project (CDP) to
improve the transparency of carbon disclosure.
Protect, restore andpromote sustainableuse of terrestrialecosystems, sustainablymanage forests, combatdeserti?cation, haltand reverse landdegradation and haltbiodiversity loss.
EcosystemProtection
We ensure that all construction activities are conducted
away from nature reserves, ecological conservation
habitats, and important or sensitive biodiversity areas.
We encourage and support employees to actively
participate in biodiversity-related activities and foster
an awareness of biodiversity conservation among them.
Promote peaceful andinclusive societiesfor sustainabledevelopment, provideaccess to justice forall and build e?ective,accountable andinclusive institutions atall levels.
ComplianceOperations
We have continuously improved a strict, standardized,
comprehensive, and e?ective internal control system,
and established a sound internal control supervision and
evaluation mechanism. We have also identi?ed internal and
external risks and assessed risk levels using a risk matrix,
while developing risk response plans.
Strengthen the meansof implementationand revitalize theglobal partnershipfor sustainabledevelopment.
Equal Treatment ofSMEsCollaborativeDevelopment of theIndustry
We fully respect and protect investors' legal rights and
interests, strengthen communication with suppliers, and
treat small and medium-sized enterprises (SMEs) equally. We
have joined industry associations, participated in industry
exchanges, and engaged in the formulation and review of
industry standards.
1920
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Stakeholder Communication and EngagementKinwong places great importance on communication and engagement with both internal and external stakeholders.We aim to establish long-term, trust-based partnerships with our stakeholders by establishing regular communicationmechanisms, making stakeholder importance analyses, and understanding the demands and expectations of variousstakeholder groups through multiple channels. We evaluate the impact of the Company's business value chain onexternal stakeholders and engage in targeted communications and responses to continuously improve the quality ofESG management.
MaterialIssues
ESG Risk Factors
RiskLevel
Risk Response MeasuresResponseto ClimateChangeand CarbonEmissionsManagement
Extreme weather or long-termenvironmental changes impactbusiness operations.
Medium
The Company has conducted a systematic analysis ofrisks and opportunities brought about by climate change,continuously performed greenhouse gas emissionveri?cation, improved carbon management performance,enhanced the carbon management system, andstrengthened carbon emissions disclosures.EnergyManagement
Failure in energy managementleads to increased energy pressure.
Medium
The Company has adopted various energy-savingmeasures to reduce fossil fuel use, initiated multiple energye?ciency improvement projects, and promoted energy-saving equipment optimization, upgrading and technologytransformations.ResourceUtilizationand CircularEconomy
Improper handling of wastegenerated during production mayhave negative environmentalimpacts, thereby a?ecting theCompany's reputation.
Medium
The Company has established a comprehensive wasteclassi?cation, recycling, and treatment system to reducewaste emissions and pollution, minimizing environmentaland regulatory risks arising from improper waste disposal.Product Qualityand Safety
Quality management projectsrelated to products, materials,manufacturing, and packaging failto meet the standards.
Low
The Company has improved its quality managementsystem, optimized process work?ows, strengthenedquality control, and introduced advanced technologieswhile o?ering product safety training to quality-relatedpersonnel.SustainableSupply Chain
Suppliers fail to meet Kinwong's orregulatory requirements.
Medium
The Company has expanded its supplier base, optimizedsupply chain management, implemented digital inventorymanagement, and collaborated with supply chain partnerson sustainable development of the enterprise.OptimizingCustomerService
Product performance andtechnical services fail to meetcustomer needs.
Low
The Company has regularly conducted customersatisfaction surveys, improved the customer complainthandling process to ensure timely resolution of customerissues, and established a systematic talent developmentframework for delivery roles.EmployeeTraining andDevelopment
Employee skills fail to keep up withindustry trends.
Low
The Company has implemented an all-round trainingsystem with diverse training plans, cultivated employees'self-learning awareness, and established a scienti?cperformance evaluation mechanism and comprehensivecareer development pathways.Product R&Dand Innovation
R&D capabilities and innovationtechnologies cannot align withindustry trends.
Low
The Company has continued to invest in R&D to enhanceits technological strength and seize opportunities arisingfrom PCB industry upgrades.
ESG Risk ManagementWe fully recognize that potential ESG risks have a profound impact on the long-term sustainable development ofthe business, the protection of stakeholder rights and interests, as well as our brand image and ?nancial stability.Therefore, Kinwong places a high priority on identifying ESG risks, systematically assessing opportunities andpotential risks in both the internal and external environments, and developing targeted risk prevention and controlstrategies. Our goal is to comprehensively enhance the Company's ability to withstand risks and improve marketcompetitiveness.
Stakeholder
Group
Demands and ExpectationsPrimary Communication Channels
Shareholders andInvestors
GovernmentDepartments/Regulatory Bodies
Customers
Employees
Value Chain PartnersCommunityMedia/Public
· Compliance with laws andregulations· Compliance operations andtax payments according tothe law
·Corporate governance· Business layout anddevelopment· Anti-corruption andintegrity
· Work reports/meetings·Field visits· Industry exchangeforums
· Regulatoryquestionnaire ?llingand submission· Information disclosure
·Public tendering·On-site research· Transparent and goodfaith cooperation·Fair trade
·Win-win development· Sustainable supply chain
·Supplier meetings·Supplier audits·Social welfare activities· Driving community
development
·Exchange activities· Volunteer services
and communication· Transparent and publicinformation
·Corporate news·Press releases
· Media interviews
·O?cial website·Special articles
·Labor Union· Employee satisfactionsurveys·Employee training
· Diversity, fairness, andinclusivity·Employee care· Employee training and
development· Occupational health
and safety
· Employee rights,
interests, and bene?ts· Ensuring employee
work environment and
conditions
·Employee development·Employee visits·Employee assistance
· Product quality and
innovation·Professional services
· Protection of customer
privacy·Data security
· Service satisfaction
surveys· Information disclosure·O?cial website
· Complaint and
reporting channels· Company WeChat·TEL
· Open and transparent
information disclosure·Investor relations· Steady investment
returns
· Protection of
shareholder rights andinterests·Company performance· Compliance operations
and risk management
· Information disclosure (e.g., interim
announcements, regular reports) andshareholders' meetings· SSE E-interactive platform (sns.sseinfo.com),
investor hotline, email correspondence·Performance brie?ngs and roadshows·On-site research and investor reception days
2122
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTMateriality Assessment and AnalysisGuided by the Strategy and ESG Committee under the Board of Directors, the ESG Task Force, starting from theCompany's development strategy, has fully integrated viewpoints from various departments and suggestionsfrom internal and external experts, and referred to national policies and guidelines on sustainable development,mainstream international ESG disclosure standards, capital market ESG rating focus, and internal and externalstakeholder concerns. This comprehensive approach allows for the comprehensive, systematic identi?cation of theCompany's ESG material issues for the year. Through survey questionnaires, management interviews, and othermethods, the importance of these issues has been evaluated and analyzed, enabling the Company to define itsannual work priorities and respond to the demands of stakeholders in a targeted manner.
Important IssuesVery Important Issues
1. Product Quality and Safety
2. Optimizing Customer Service
3. Response to Climate Change and
Carbon Emissions Management
4. Energy Management
5. Employee Training and
Development
6. Product R&D and Innovation
7. Sustainable Supply Chain
8. Resource Utilization and Circular
Economy
9. Improving Corporate
Governance
10. ESG Governance
11. Strengthening Risk Prevention
and Control
12. Protection of Employee Rights
and Interests
13. Occupational Health and Safety
14. Environmental Management
System
15. Employee Welfare and Care
16. Employee Equality and
Diversity in Employment
17. Clean Technology
Opportunities
18. Emissions Management
19. Business Ethics
20. Data Security and Privacy
Protection
21. Chemical Safety Management
22. Rural Revitalization
Moderately Important Issues
23. Industry Collaboration and
Exchange
24. Intellectual Property Protection
25. Responsible Minerals
26. Supporting Community
Development
27. Tax Governance
28. Ecosystem and Biodiversity
Protection
After analyzing the material issues for this year using this "four-step method", we identified 8 veryimportant issues, 14 important issues, and 6 moderately important issues, which will serve as key referencepoints for the Company's future sustainable development management work.
Materiality Assessment Process
Issues Identi?cation and Screening
Based on national macro policies, regulatory rules, industry trends, and capital market ESGrating focus, we identified 28 material issues that have a significant impact on both theCompany's development and stakeholders.
Stakeholder CommunicationTo ensure the accuracy and objectivity of the materiality assessment, we engaged expertsand invited stakeholders to participate in questionnaire surveys to understand theirconcerns on ESG issues. In-depth interviews were also conducted with the Company's seniorexecutives and functional and business department heads to assess the progress of ESGmanagement practices and the completion of goals for 2024.
Comprehensive Analysis of Results
Based on the survey results, we conducted statistical analysis on the importance of eachissue, determined the priority order, and focused on addressing the issues of particularconcern to stakeholders in the report.
Formation of Importance MatrixWe assessed the importance of each issue from two dimensions: "importance to Kinwong'sdevelopment" and "importance to stakeholders". This led to the creation of Kinwong's 2024ESG Materiality Matrix and the ranking of each issue's importance
Importance to Kinwong's development
Important Issues
Important Issues
Very Important Issues
Moderately Important Issues
LowHigh
Importance to stakeholdersHigh
SocialEnvironmentalGovernance
2324
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Impacts of Material Issues on the Value ChainIssueCategory
28 Material Issues
Production andOperations
Products and
Services
SupplyChain
Employees
SocialEngagement
SocialProduct Quality and Safety
SocialOptimizing Customer Service
Social
Employee Training andDevelopment
SocialProduct R&D and Innovation
SocialSustainable Supply Chain
Environmental
Response to Climate Change andCarbon Emissions Management
EnvironmentalEnergy Management
Environmental
Resource Utilization and CircularEconomy
Social
Employee Equality and Diversityin Employment
Social
Protection of Employee Rightsand Interests
SocialEmployee Welfare and Care
SocialOccupational Health and Safety
SocialChemical Safety Management
SocialRural Revitalization
Social
Data Security and PrivacyProtection
IssueCategory
28 Material Issues
Production andOperations
Products andServices
SupplyChain
Employees
SocialEngagementEnvironmental
Environmental ManagementSystem
EnvironmentalEmissions Management
EnvironmentalClean Technology Opportunities
GovernanceBusiness Ethics
Governance
Strengthening Risk Preventionand Control
Governance
Improving CorporateGovernance
GovernanceESG Governance
SocialResponsible Minerals
SocialIntellectual Property Protection
Social
Industry Collaboration andExchange
Social
Supporting CommunityDevelopment
GovernanceTax Governance
Environmental
Ecosystem and BiodiversityProtection
Direct impactResulting impactContributory impact
2526
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Governance
Kinwong is fully committed to advancing corporate governance in a legal andcompliant manner, ensuring the standardized and efficient operation of theShareholders' Meeting, the Board of Directors, and the Board of Supervisors,enhancing the transparency of information disclosure, and protecting the rightsand interests of investors. To deepen internal control compliance, we have built acomprehensive internal control system, e?ectively managing risks and maintainingfair competition. At the same time, we have strengthened our information securitysystem and raised awareness of security across the organization, providing a solidfoundation for the Company's long-term development and promoting high-qualitydevelopment and steady progress in ESG matters.
Integrity and Compliance in OperationsImproving Governance StructureKinwong complies with the requirements of theCompany Law of the People's Republic of China, the SecuritiesLaw of the People's Republic of China,theRules Governing the Listing of Stocks on Shanghai Stock Exchange,theGuidelines for Articles of Association of Listed Companies, the Code of Corporate Governance for Listed Companies,
and other laws, regulations, and normative documents. We standardize operations, continually improve ourcorporate governance structure, and fully leverage the roles of the Shareholders' Meeting, the Board of Directors,and the Board of Supervisors in major decision-making, business management, and supervision, ensuring that theCompany operates in compliance.
Our directors, supervisors, and senior executives strictly comply with regulatory requirements by regularly attendingcompliance training sessions organized by regulatory authorities, the Shanghai Stock Exchange, and internaldepartments, so as to ensure zero violation or error in critical processes such as major decision-making, informationdisclosure, and related-party transactions.During the reporting period, the procedures for convening and holding meetings of the Board of Directors and theBoard of Supervisors strictly complied with theCompany Law of the People's Republic of Chinaand other relevantlaws and regulations, as well as the Articles of Association. All incumbent directors diligently performed their duties,fully re?ecting the standardization and e?ectiveness of our corporate governance.Kinwong's Board of Directors rigorously follows the requirements of theCompany Lawand other laws andregulations, as well as theArticles of Associationand other management systems. It has fully implementedresolutions made by the Shareholders' Meeting, carefully ful?lled the responsibilities entrusted by the Shareholders'Meeting, and contributed remarkably to the scientific decision-making and effective implementation of majorcorporate matters.
Kinwong's Corporate Governance Structure
Operations of Three Governance Bodies
Shareholders' Meeting
Board of Directors
Management Team
Board of SupervisorsNomination Committee
Strategy and ESG Committee
Remuneration andAssessment Committee
Audit Committee
2728
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
The Board of Directors plays a central role in strategic decision-making and overseeing the management. Boardmembers are elected through legal procedures at the Shareholders' Meeting, and their quali?cations and removalmust be approved by the Shareholders' Meeting. The term of o?ce for directors is three years, and they may be re-elected following legal procedures. Independent directors are subject to term limits according to the regulatoryrequirements and may serve a maximum of six years cumulatively.In terms of the director selection mechanism, the Company strictly follows modern corporate governance principlesand has established a systematic standard for selecting and appointing Board members. In addition to ensuringprofessional competence, we focus on the scienti?c diversity of the Board's composition. We consider factors such asgender ratio, age distribution, educational background, industry experience, and professional expertise to create adecision-making team with strategic foresight and complementary skills.
Board Diversity
NamePositionGenderAge
Professional Knowledge & SkillsScience andTechnology
Laws, Finance, andAccounting
Liu ShaobaiChairmanMale62
√√Zhuo YongVice ChairmanMale57√Huang XiaofenDirectorFemale61√Zhuo JunDirectorFemale58√Liu YuDirectorMale39√Deng LiDirectorMale47√He QiangIndependent DirectorMale72√Zhou GuoyunIndependent DirectorMale39√Cao ChunfangIndependent DirectorMale39√
Three Governance Bodies' Meetings in 2024
Shareholders' Meetings
2times11resolutions passed,
with an approval rateof100%
Board Meetings
8times39resolutionsreviewed, with anattendance rate of100%
Meetings of the Boardof Supervisors6times25resolutionsreviewed, with anattendance rate of
100%
Kinwong's Board of Directors has four specialized committees to assist the Board in fulfilling its decision-makingand supervisory functions in the areas of strategy and ESG, nomination, remuneration and assessment, and audit.These committees are also responsible for implementing and promoting their respective specialized tasks. Eachcommittee, adhering to the principles of independence, objectivity, and fairness, performs its duties and exercises itsauthority to support the sustained and stable development of the Company.
Board Committees
Strategy and ESG Committee
Main ResponsibilitiesThis committee is responsible for coordinating the strategic plans for long-term development and theestablishment of the ESG system. Its duties include researching major strategic directions, formulatingand reviewing an ESG management framework that complies with regulations and meets the Company'sneeds, and supervising the implementation of ESG goals along with risk and opportunity assessments. Thecommittee provides decision-making recommendations on critical matters such as investment, ?nancing,and capital operations. Additionally, it reviews the ESG report and information disclosures, ensuring thatsustainable development, compliance operations, and strategic decisions are synergistically advanced inthe Company, thereby fully supporting the Company's high-quality development.
Members：Liu Shaobai (Chair)｜Zhuo Yong｜Zhou Guoyun
Main Responsibilities
This committee defines the assessment criteria for directors and senior executives, implements theassessment process, and formulates and reviews their remuneration policies and plans. It advises the Boardon matters such as the setting of remuneration for directors and senior executives, the development orchanges to equity incentive plans and employee stock ownership plans (including the granting of equityrights and exercise conditions), as well as stock ownership arrangements for directors and senior executivesin spun-off subsidiaries. The committee ensures that all decisions comply with legal requirements,regulatory standards, and the Company's Articles of Association.
Remuneration and Assessment Committee
Members：He Qiang (Chair)｜Cao Chunfang｜Liu Shaobai
Main Responsibilities
This committee is responsible for establishing the selection criteria and procedures for Board membersand senior executives. It handles the selection and review of candidates for directors and senior executivesas well as their qualifications, and provides recommendations to the Board regarding the nomination,appointment, or dismissal of directors, as well as the hiring or termination of senior executives.
Nomination CommitteeMembers：Cao Chunfang (Chair)｜He Qiang｜Liu Yu
2930
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Kinwong strictly adheres to the principles of information disclosure, ful?lling its disclosure obligations in a truthful,accurate, complete, timely, and fair manner. We continue to enhance the institutional and standardized level ofinformation disclosure, strengthen the disclosure of ESG information, and improve corporate transparency. In 2024,in accordance with applicable laws and regulations such as theCompany Law of the People's Republic of China,the
Securities Law of the People's Republic of China,theRegulations on Information Disclosure of Listed Companies,and theRules Governing the Listing of Stocks on Shanghai Stock Exchange,Kinwong established the InformationDisclosure Management System to standardize the information disclosure practices of the Company and otherobligated parties, enhancing corporate governance and standardized operations, and protecting the legitimate rightsand interests of shareholders, creditors, and other stakeholders.
Information Disclosure
Main Responsibilities
This committee oversees and evaluates external audit work (including recommending theengagement or replacement of external audit agencies) and internal audit activities. Itcoordinates collaboration between internal and external audits, reviews the Company'sfinancial information and the compliance and accuracy in its disclosure, and supervises andassesses the effectiveness of the Company's internal control system. The committee ensuresthat financial operations and information disclosures comply with relevant laws, regulations,and the Company's Articles of Association.
Audit CommitteeMembers：Cao Chunfang (Chair)｜Zhuo Yong｜Zhou Guoyun
Investor Relations Management
Key Performance IndicatorsDuring the reporting period, the Company published announcements:
168.
In 2024, Kinwong conducted daily investor relations management in accordance with theInvestor RelationsManagement System.Additionally, a new Public Opinion Management Systemwas released to establish and improvethe rapid response and emergency handling mechanism, ensuring that any public opinion impacts on the Companyare addressed in a timely and appropriate manner, and further enhancing the Company's ability to respond tovarious public opinions.We have established comprehensive investor communication channels, including the SSE E-interactive platform(sns.sseinfo.com), Shareholders' Meetings, performance brie?ngs, online/telephone meetings, brokerage strategymeetings, investor exchange activities, roadshows, and other legal and e?ective communication methods. We alsoensure that reasonable suggestions and opinions from investors are promptly communicated to the management.During the reporting period, the Company strictly followed the China Securities Regulatory Commission (CSRC) andexchange regulations on information disclosure in all interactions with investors, ensuring fairness in informationdisclosure.
Investor Protection
Investor Communication MethodsPerformance of Specialized Committees under the Board in 2024
On the afternoon of June 20, 2024, BOCI Securities,in collaboration with the Shanghai Stock Exchange(SSE), organized the "I Am a Shareholder" event to visitKinwong, a listed company on the SSE, where over 20investors visited Kinwong's Shenzhen production base.During the event, Kinwong's Securities Department,while ensuring the fairness of information disclosure,communicated extensively with investors regardingtopics such as company performance, digitaltransformation, global market expansion, and futureplans. Investors expressed con?dence in the Company'sgrowth prospects and technological advancements,hoping to see a further increase in the share of high-end products and international business, and lookingforward to Kinwong becoming a benchmark in China'shigh-end manufacturing sector and providing morehigh-quality returns for shareholders and society.
"I Am a Shareholder"—BOCI Securities and the SSE Visit Kinwong, a Listed Company on the SSECase
Investors' Visit to Kinwong
·SSE E-interactive platform??? ·Shareholders' Meetings???·Performance brie?ngs?? ·Online/Telephone meetings·On-site research/Exchange activities ·Dedicated phone communication·Roadshows
CommitteeNumber of MeetingsAttendance RateAudit Committee4 times100%Nomination Committee1 time100%Remuneration and Assessment Committee4 times100%
Strategy and ESG Committee2 times100%
3132
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Kinwong highly values the establishment and improvement of the internal control system, seeing it as a cornerstonefor the Company's stable operation and sustainable development. We have established a multi-level internal controlstructure comprising the Board of Directors, the Board of Supervisors, and the Audit Committee to ensure thescienti?c and e?ective implementation of the internal control mechanism.Additionally, the Company has set up a Leading Group for Building the Internal Control System, which is responsiblefor the overall development of the Company's internal control system and reviewing the internal controlmanagement system. The President serves as the group leader and is the highest responsible person, while theDirector of the Audit and Supervision Department serves as the executive deputy leader. Members of the group areselected from middle and senior executives as required by the project to ensure e?ective implementation of internalcontrol.
Internal Control Management Bodies
Kinwong places great emphasis on compliance operations and considers internal control to be a core aspect ofcorporate governance. In 2024, we continued to establish and improve the internal control system and formulatedthe Internal Control Management Measures to clearly define the Company's internal management goals, internalcontrol management bodies, division of authorities and responsibilities, and requirements for standardized internalcontrol management.
Compliance Operations
Internal Control Management Goals· To improve the Company's operations and
management and risk prevention capabilities;· To provide reasonable assurance that the Company's operations and management are legal andcompliant, the assets are safe, and ?nancial reports and relevant information are true and complete;
· To enhance operational e?ciency and e?ectiveness, and facilitate
the realization of the Company's development strategy.
Furthermore, the Company has clearly designated the Audit and Supervision Department (Compliance and InternalControl Department) as the leading department for organizing and coordinating the development, operationalevaluation, and daily management of the internal control system. The Process Management Department and theFinancial Management Department collaborate on the development and operation of the internal control system,which are responsible for managing and optimizing business processes and devising and ensuring the effectiveimplementation of internal control measures regarding financial reports, respectively. Each department/unit isprimarily responsible for the development and e?ective operation of internal control in its own areas. The Companyrequires each department/unit to systematically review their policies, processes, risks, and other aspects withintheir respective responsibilities in accordance with internal control requirements, and to carry out their tasks bydeveloping and following the relevant requirements, regulations, procedures, and steps laid out in the department/unit's Internal Control Management Manual. Moreover, they are required to conduct the supervision and evaluationof the internal control system and take corrective actions to address any internal control de?ciencies.
During the reporting period:
The Company held performancebrie?ngs
Communicated with investors atotal of over1,400 times
Hosted investor researchactivities/reverse roadshows
Participated in brokerage strategymeetings
Responded to questions on theSSE E-interactive platform
Key Performance Indicators
Leading department:
Audit and SupervisionDepartment (Compliance
and Internal ControlDepartment)
Collaboratingdepartment: ProcessManagementDepartment
Collaboratingdepartment: Financial
ManagementDepartment
Responsible entity:
each department/unit
Execution
Level
Decision-Making andSupervision
· It is the highest decision-making body for internal control
management, responsible for establishing, improving,and e?ectively implementing internal control.· Responsible for overseeing the establishment andimplementation of internal control by the Board ofDirectors.· Responsible for overseeing and evaluating the
Company's internal control, monitoring the effectiveimplementation and self-assessment of internalcontrol, and coordinating the audit and other relevantmatters of internal control.Audit Committeeunder the Board
Board ofSupervisors
Board of Directors
· Reviews the internal control management system;· Puts forward work requirements for the developmentof the internal control system and reviews the annualinternal control work plan;· Reviews the Company'sInternal Control ManagementManual;· Reviews the internal control effectiveness evaluation
report, internal control audit report, and other relateddocuments;· Performs additional tasks as required by the Board ofDirectors.
Leader: PresidentDeputy Leader:
Director of the Auditand SupervisionDepartmentMembers: Middle andsenior executives
Leading Group for Building
the Internal ControlSystemManagementLevel
3334
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Kinwong's internal control system construction is based on its internal environment construction. The Company iscommitted to building an overall closed-loop management system guided by the results of risk assessment, usingvarious control measures as tools, information and communication as a bridge, and supervision and evaluation asdriving forces. The Company's internal control measures generally include incompatible duty separation control,authorization and approval control, accounting system control, asset protection control, budget control, operationalanalysis control, and performance evaluation control.In terms of risk assessment, we, by referring to the Guidelines on Enterprise-Wide Risk Management for CentralState-Owned Enterprises, have classi?ed risks into strategic, ?nancial, market, operational, legal, and compliancerisks based on internal realities. Using a risk matrix, we have assessed the risk level by mapping the "probability ofrisk occurrence" and "impact on goals after risk occurrence" as two dimensions on a coordinate plane (rectangularcoordinate system), with each dimension divided into ?ve levels. The "probability of risk occurrence" is judged bythe frequency of occurrence within a speci?c time frame, and the "impact on goals after risk occurrence" is assessedboth qualitatively and quantitatively, while considering the Company's scale, risk tolerance, and other factors.
Eight Principles of Internal Control
Risk Assessment and Level Classification Diagram
Kinwong places great importance on the standardization and transparency of internal control and continues toestablish and improve the internal control supervision and evaluation mechanism. By making full use of the resultsof supervision and evaluation, we have formed a mechanism featuring continuous monitoring, thorough evaluation,and dynamic optimization.
Internal Control Supervision and Evaluation
ProbabilityHigh
SlightSignificantLow
12345
ImpactLow risk levelModerate risk levelHigh risk level
The Company commissions a quali?ed external auditing ?rm to conduct a comprehensive audit of the internalcontrol system every year to ensure its e?ectiveness and compliance. The external auditing ?rm evaluates thedesign rationality, effectiveness in operations, and risk management capabilities of the Company's internalcontrol system in an independent and objective manner according to relevant laws, regulations, and industrystandards, with a detailed internal control audit report provided.
Daily Supervision
The Board of Supervisors and the Audit Committee under the Board continuously supervise the establishmentand implementation of internal control. The Audit and Supervision Department conducts regular checks onthe development and operation of the internal control system, constantly monitors its operation, and performsinternal control checks in key areas to ensure compliance with production and operating activities.Internal Control Evaluation
Every year, the Company conducts a comprehensive evaluation of the effectiveness of the internal controlsystem. This objective, truthful, and accurate evaluation aims to reflect any internal control deficiencies,risks, and compliance issues in business management, resulting in an internal control evaluation report. Afterapproval by the Board of Directors and other decision-making bodies, the report is disclosed or submitted tothe relevant departments.
Internal Audit
In strict accordance with the established Internal Control Audit Regulations, the Company arranges for theAudit and Supervision Department to conduct special internal control audits based on the internal audit plan toensure the standardization and e?ectiveness of the internal control system.
External Audit
Kinwong fully considers eight key principles in developing and operating its internal control system, includinglegality and compliance, comprehensiveness, checks and balances, adaptability, operability, among others. At thebeginning of each year, the Audit and Supervision Department formulates the annual internal control work planand builds the system in stages. An e?ective internal control system is built and implemented across ?ve key areas:
internal environment, risk assessment, control activities, information and communication, and internal supervision.
Building a Sound Internal Control System
Legality and compliance: Internal control shall comply with national laws, administrative regulations,and the regulatory requirements of regulatory departments of the government government.
Comprehensiveness: Internal control should cover the entire process of decision-making, execution, and
supervision, encompassing all types of businesses and matters.Importance: On the basis of comprehensive control, attention should be given to key business matters
and high-risk areas.
Checks and balances: Mutual constraints and supervision should be formed in aspects such as
governance structure, organizational setups, and the assignment of authorities and responsibilities, whilebalancing operational e?ciency.Adaptability: Internal control should be aligned with the scale, scope, competition, and risk level of the
business, and should be adjusted in a timely manner in response to changing conditions.
Cost-e?ectiveness: When conducting internal control, it is necessary to weigh the implementation cost
against the expected bene?ts to achieve e?ective control at an appropriate cost.Operability: Internal control should be aligned with the Company's actual conditions, consider the
feasibility in practical management, and ensure operability.Information feedback: The tasks and responsibilities of personnel related to control work in the
information transmission process should be de?ned, procedures for information transmission, collectionmethods, and timing requirements should be established, and a rigorous information feedback system forrecords and reporting should be created.
3536
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Kinwong pays high attention to tax governance. The Audit Committee under the Board is responsible for reviewingfinancial information and its disclosures, as well as providing guidance on tax compliance. The Audit Committeeconsists of three directors who are not senior executives of the Company, with independent directors accounting forthe majority and at least one independent director being a professional accountant.In accordance with relevant regulations, the Company has established a comprehensive tax governance systemand corresponding processes, including the Accounting System, the Transfer Pricing Management Measures, theAccounts Payable Management Measures, among others. The Company's tax governance details for 2024 can befound in Section X of the 2024 Annual Report of Shenzhen Kinwong Electronic Co., Ltd., which covers tax-relatedcontent in the ?nancial report.
Tax Governance
Key Performance Indicators
As of the end of the reporting period, the Company's Audit Department had conducted audit projects:
24.
Kinwong has always regarded compliance management as the lifeline for the Company's sustainable development. We have madesustained e?orts to improve our ability to prevent and control risks in global operations by building a comprehensive compliancesystem and strengthening risk awareness across the organization.
Fostering Compliance and Risk Awareness
From April 11th to 12th, 2024, Kinwong participatedin the "Overseas Compliance and Risk Prevention &Control Exchange for Enterprises" held in Guangzhou.We deeply engaged in discussions on core topics suchas the latest international compliance policies, ESGbuilding, and legal practices, exchanging practicalexperience with nearly 200 industry representatives.Through resource sharing, including the blacklistsharing mechanism, anti-fraud toolkit, and CAP talenttraining, the Company further mastered cutting-edge prevention and control strategies in high-risk areas and gained valuable insights from peersin building overseas compliance systems, whichprovided an important reference for Kinwong tooptimize its internal management mechanism. Thisexchange injected new momentum into Kinwong'sinternationalization strategy.
Overseas Compliance and Risk Prevention & Control Exchange for EnterprisesCase
Exchange Conference Site
Kinwong rigorously complies with applicable Chinese laws and regulations, including the Interim Provisions on theProhibition Against Commercial Bribery Acts, the Anti-Unfair Competition Law, and theAnti-Monopoly Law, as wellas international laws such as theAntitrust Lawsand the EUCompetition Law. Internal rules and regulations, suchas theArticles of Association, theKinwong Employee Code of Business Conduct, and theAnti-Fraud ManagementMeasures, are also strictly followed.In the areas of anti-monopoly and fair competition, the Company ensures legal and compliant operations, preventsunfair competition and monopolistic practices, and maintains market order and a fair competitive environment.Kinwong is committed to adhering to the principle of fair competition in all business activities, refraining fromparticipating in any monopolistic or unfair competition behaviors, and actively encouraging, supporting, andprotecting all organizations and individuals who supervise such behaviors.In anti-corruption and anti-bribery efforts, the Company has established procedure documents such as theAnti-CorruptionandAnti-Bribery Control Proceduresand theBusiness Ethics Standards Control Procedures, with a viewto advancing anti-corruption and anti-bribery measures in business activities in a steady way. We have continuedto regulate business operations and professional behaviors of employees, prevent and punish fraudulent activities,foster a clean and diligent working culture, and protect the legitimate rights and interests of the Company and itsshareholders. Moreover, we have strengthened supervision and management over key environments and positionsfrequently prone to corruption, ensuring a robust commitment to quality and anti-commercial bribery. By strictlyfollowing fair competition rules, we have guided the management and relevant stakeholders to act in accordancewith the laws and in good faith.Kinwong maintains a zero-tolerance policy towards fraudulent behavior during business operations. Clear forms offraud include:
Business Ethics and Anti-Corruption
Accepting bribes or kickbacks;Transferring transactions that could bene?t the organization to others;Unauthorized use of the Company's assets, and embezzlement,misappropriation, or theft of company property;Disclosing the Company's business or technical secrets for improper personal gain;
Intentionally misreporting transactions or fabricating falsetransaction details;Concealing or deleting important information that should bedisclosed externally;Engaging in illegal or non-compliant economic activities.
Abusing power for personal advantage, misappropriatingthe Company's or others' interests, and falsifying or alteringaccounting records or vouchers;
3738
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Kinwong's Audit and Supervision Department is primarily responsible for building and continuously improvingthe anti-fraud management system, which includes formulating and maintaining related management measures,organizing full-process investigations of fraud cases (from ?ling to case closure), and preparing audit reports basedon investigation results and reporting to the Audit Committee. After case handling, the department strengthensinternal control mechanisms, optimizes business processes and systems, and ensures that corrective actions are fullyimplemented. Regular updates on anti-fraud activities are communicated to enhance transparency. Additionally,the department organizes anti-fraud education activities for all employees to foster a compliance culture, therebypreventing and containing fraud risks across the board and maintaining a clean business-operating environment.The Audit and Supervision Department personnel are required to raise their awareness of anti-fraud measures andimprove their technical skills in this area. They are expected to maintain the necessary professional caution, stayalert to potential fraud in the organization, and assist in preventing, detecting, and reporting fraudulent behaviors.It is also imperative for them to seek and proactively undergo training on anti-fraud laws and regulations, ethicalconduct, knowledge, and skills organized by relevant regulators, and to stay informed about the developmentsand plans of the Company's production and operating activities, accounting policies, and other relevant rules andregulations.
Kinwong has developed theRegulations on Audit and Supervision Whistleblowing and Clue Management tostandardizethe management of internal and external whistleblowing and clues within the scope of the Audit andSupervision Department's responsibilities. Significant incidents and fraud and misconduct-related issues arehandled by the department for investigation.TheWhistleblowing and Complaints Management Measureshave been formulated to encourage employees toreport illegal, irregular, or other improper behaviors while publishing regular announcements on these matters. TheCompany has taken concrete steps to strengthen its supervision over operations and management in accordancewith the laws and regulations and protect the interests of both the Company and stakeholders. Kinwong ensures thatall complaints and reports are treated equally, accepting whistleblowing through named, anonymous, or third-partyproxy methods. Complaints and reports can be made via phone, email, mail, or in person, with strict con?dentialitymeasures applied to whistleblowers' information. Complaints or reports will be promptly handled, and feedback onthe investigation will be provided to the complainant or whistleblower to protect their legitimate rights and interests.
Anti-Fraud Management Body
Whistleblowing Channels and Protection of Whistleblowers
Anti-Fraud and Misconduct Reporting Channels? Mailing Address: Audit and Supervision Department, 18F, Kinwong ElectronicsBuilding, No. 158 Guangyuan 3rd Road, Dongkeng Community, FenghuangSubdistrict, Guangming District, Shenzhen?Phone: 0755-83890990?Email: asc@kinwong.com? Company WeChat: Company WeChat Workbench–Kinwong Discipline–
Reporting & Suggestions–Violations Reporting? On-site Reporting: In-person reporting to the Audit and Supervision
Department personnel
Protection of Whistleblowers and Complainants
To ensure the e?ectiveness and performance of policies and systems, Kinwong conducts annual internal audits covering alllocations where it operates, focusing on business ethics and anti-corruption issues. The audits are tailored to speci?c areas,factories, and key management personnel, including special audits, business cycle audits, process and system audits,operational and management audits, and economic responsibility audits. Audit results are reported to the Audit Committeeunder the Board. By assessing potential risks related to business activities and places of operation, the Company hasdeveloped an annual self-inspection and audit plan, completing reviews and inspections at each base. The audit resultsare followed up with corrective actions in the Tracking Form for Audit Issue Management Suggestions and Recti?cations,ensuring a closed-loop management process for audit projects. This helps improve corporate governance, businessprocesses, and management systems, e?ectively controlling business ethics risks.
Business Ethics and Anti-Corruption Audits
Kinwong has always regarded fostering an integrity culture as an essential part of corporate management. Especiallybefore major festivals, the Company regularly conducts integrity reminder activities. These activities strengthenemployees' and partners' awareness of discipline through the Integrity Initiative and educational warnings toprevent integrity risks that may arise during festivals.Additionally, the Company has aligned these e?orts with the traditional Chinese 24 solar terms, regularly conductingintegrity education activities themed "Integrity Education during the Solar Terms". During the reporting period,the Company produced a promotional video of integrity titled Integrity Starts with the Small Things, which focuseson disciplinary building and integrity culture. The video combines case analysis, system interpretations, and dailymanagement to convey the Company's values of self-discipline and integrity.
Fostering an Integrity Culture
Key Performance Indicators
During the reporting period, the Company had major litigation case involving corruption or unfaircompetition:
0.
· Kinwong is obligated to protect the personal, democratic, and other legal rights and interests of complainantsand whistleblowers.· If a whistleblower believes that the person handling their report is a close relative or has a con?ict of interest that may
a?ect the objective and fair handling of the case, they have the right to make a request to the Audit and SupervisionDepartment for the individual to be recused. If this is the case, the relevant person shall recuse themselves.· It is strictly prohibited to disclose the identity, department, address, or anydetails related to the whistleblower or the content of their report to the personor unit being reported against. If the person being reported against is the headof a unit, the report materials shall not be transferred to the unit. Violations ofthis provision will result in disciplinary actions, and criminal responsibility willbe pursued if it constitutes a crime.· When investigating the person or unit being reported against, con?dentialitymeasures shall be taken to protect the identity of the whistleblower, and noreport material shall be disclosed.
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
In 2024, as the Mid-Autumn Festival approached, Kinwong released anIntegrity Initiative
to all employees, their families, and partners, taking into account the characteristicsof the traditional festival. The initiative focused on five key themes: strictly adheringto discipline without crossing the red line, advocating frugality and opposing waste,promoting positive energy and setting new trends, caring for family members andcelebrating the festival together, and strengthening supervision to jointly safeguardintegrity. The initiative clearly outlined speci?c requirements, such as rejecting impropergifts or money, avoiding consumption by public funds, and advocating a simple, sincerereunion. This initiative not only continued the Company's longstanding integrityeducation tradition but also integrated discipline constraints into the festive caringthrough a heartfelt reminder. By setting clear behavioral standards and supervisionmechanisms, Kinwong further promoted the all-sta? creation of a transparent, integrity-driven environment. The initiative infused the traditional festival with "integrity DNA",further consolidating the Company's clean and upright culture.
Mid-Autumn Festival Integrity InitiativeCase
Mid-Autumn Festival
Integrity Initiative
In the digital era, information security is crucial to the Company's development. With a great emphasis onprotecting customers' business secrets, data, and personal privacy, the Company strictly complies with relevantlaws, regulations, and industry standards, establishing a scientifically sound and effective information securitymanagement system. Through a comprehensive security protection system, rigorous internal control processes,and regular security training, we have continued efforts to raise awareness of information security across theorganization, ensuring the con?dentiality, integrity, and availability of business information while providing a secureand reliable service environment for our customers.
Ensuring Information Security
Kinwong has continuously improved its information security management system and personal privacy protectionmechanism in strict observance of theCybersecurity Law of the People's Republic of China, theData Security Law ofthe People's Republic of China, thePersonal Information Protection Law of the People's Republic of China, amongother relevant laws and regulations. Following standards such as ISO 27001, the Company has formulated severalinformation management systems and operating procedures, including theInformation Security ManagementHandbook, theIT Project Management Measures, and theInformation Security Incident Management Procedures.Moreover, a three-tier organizational structure of information security consisting of management and decision-making, supervision and inspection, and implementation has been established, with the aim of regulatinginformation and data management and ensuring e?ective protection of information security.
Information Security Management System
During the reporting period, the Company and its subsidiaries maintained the ISO 27001 Information SecurityManagement System certification. As of the end of the reporting period, 40 employees had obtained the ISO/IEC27001:2022 Information Security Management System Internal Auditor Certi?cate.
Information Security Management Structure
Information Security Management Leading GroupThe decision-making body for the information security management system. Responsible fordetermining the direction and formulating policies and objectives for the information securitymanagement system.Managementand Decision-making
Information Security Working Group
Responsible for implementing, supervising, and inspecting the information security policy,and coordinating information security execution teams and external organizations onrelevant information security matters.Supervision and
Inspection
All employees
Responsible for cooperating with relevant personnel to implement information securityrequirements and understanding and complying with the guidelines defined in the
Information Security Management Handbook.ImplementationEqual Treatment of SMEs
In strict compliance with the Law of the People's Republic of China on Promotion of Small and Medium-sized Enterprises
and theRegulation on Payment Protection for Small and Medium-sized Enterprises, among other relevant laws andregulations, Kinwong has been committed to creating a fair and transparent business environment and providing equalmarket opportunities for small and medium-sized enterprises (SMEs). While pursuing economic bene?ts, the Companyensures that the legitimate interests of suppliers are protected and that sound development can be achieved across theentire industrial chain. As of the end of the reporting period, the Company had no overdue payment to SMEs.
Kinwong has set clear information security targets and operational indicators. By setting targets, verifyingachievements, and implementing corrective measures, the operation of the information security managementsystem has been comprehensively managed, providing a basis for the system's continuous improvement.
Indicators and Targets
Information Security Management System Certi?cation
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTTarget CategoryAnnual Targets and IndicatorsAchievement in 2024
Information SecurityTargets
Level 1 security incidents: 0AchievedLevel 2 security incidents: ≤1AchievedLevel 3 security incidents: ≤1AchievedCon?dential-level or above information breaches: 0AchievedTimeliness rate of internal audit and management review: 100%Achieved
Completion rate of information security training: 100%Achieved
Information SecurityOperation Indicators
Large-scale computer virus infections: 0AchievedUnplanned interruptions of key business: 0AchievedEmployee con?dentiality agreement signing rate: 100%AchievedTimeliness rate of important information backup: 100%AchievedInternal audit non-compliance recti?cation rate: ≥92%Achieved
Kinwong has built an all-around information security education system. We have laid a solid foundation forinformation security through new employee onboarding training, carried out annual training for all employees toenhance their protective capabilities, fostered a security culture through the Information Security Awareness Week,and continued daily promotion e?orts to help instill security habits. This system, covering the entire career lifecycleof employees, has integrated security awareness into the corporate culture using diverse methods that combinetheory with practice, with the system of knowledge being updated continuously. With these e?orts, the Company hase?ectively enhanced the information security awareness and protective capability of all employees, providing a solidfoundation for the stable development of the Company.Additionally, Kinwong conducts the phishing email drill once a year to improve employees' ability to defend againstphishing emails. For employees who accidentally click on phishing emails during the drill, the Company arrangesdedicated anti-phishing email security knowledge training to help them recognize and respond to similar threatsbetter in the future.
Information Security Training and Promotion
Kinwong's Information Security Education System
Kinwong provides new employees with onboardinginformation security training, covering the Company'sinformation security policies, regulations, and basicprotective knowledge. This ensures that employeespossess basic security awareness from the momentthey join, effectively safeguarding the informationassets of the Company and its customers.
Each year, Kinwong conducts information securitytraining for all employees. This training includes thelatest security developments, protective measures, andcase studies, helping employees better understandand effectively respond to security threats whilecontinuously improving their security protectionabilities in daily work.
New employee onboarding training: Laying asolid foundation for information security
Annual training: Enhancing the informationsecurity protection capability of all employees
Kinwong has integrated Information SecurityAwareness Week into its corporate culture. Throughonline quizzes and team knowledge competitions,we inspire employees' engagement in enhancingcollective security awareness and promoting teamcollaboration and communication.
Kinwong has incorporated information securityeducation into daily operations through continuoussecurity knowledge promotion via platforms likeCompany WeChat and the OA forum, with a viewto maintaining ongoing security awareness amongemployees and fostering good security habits.
Information Security Awareness Week:
Strengthening collective security awareness
Daily promotion: Continuously reinforcing
security awareness
Information Security Awareness Week Prize
Competition
Key Performance Indicators
During the reporting period, the Company held98 training sessions on data security and customer privacy
protection and conducted5 related emergency drills.
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
In 2024, the InformationSecurity Awareness Weekactivity, themed "Buildinga Firewall of People,Protecting InformationSecurity", took place fromJuly 29th to August 2nd inthe Company. The activityfeatured an online quizon information securityknowledge and a teamknowledge competition,further enhancingemployees' awarenessof the importance ofinformation security.
Hosting Information Security Awareness Week to Strengthen Employee Security Awareness
Case
2024 Information Security Awareness Week Poster
Kinwong has established a robust information security audit mechanism, encompassing both internal audits andexternal certification audits. These audits cover all first-tier departments and production bases. Internal auditsmainly focus on key areas such as information security awareness training, asset management, physical security, andpersonal information protection. External audits are conducted by the internationally recognized organization DNV,which con?rms that Kinwong's information security management system complies with the latest ISO 27001:2022standards. Aiming at all non-conformities found by internal and external audits, the Company has developed detailedrecti?cation plans, and the Information Management Department is responsible for tracking the progress of theseimprovements and providing technical support. In this way, we ensure that all issues can be resolved effectively,thereby continuously enhancing our overall information security posture.
Information Security Audit
· Access management: Employees can only access information necessary for their work, with access rights regularlyreviewed and updated.· Data protection: Sensitive customer information is encrypted and labeled with con?dentiality levels to ensure itssecure storage and transmission.· Endpoint security: Antivirus and vulnerability protection systems are deployed to manage all endpoint devicessecurely.· Network security: Boundary protection gateways and threat detection systems are used to monitor networkactivities in real time and prevent external attacks.· Application and database security: Strict permissions are set for using core application systems and databases, andregular security tests are conducted.· Physical security: Door access control is implemented in key areas, restricting access to authorized individuals on aneed-to-know basis and preventing unauthorized physical access.· Employee training and agreements: All employees sign confidentiality agreements and receive regular privacyprotection training to improve security awareness.· Supervision and audits: The Company conducts 24/7 monitoring through a professional operation and maintenancecenter and undergoes third-party audit inspections to ensure that all measures are e?ectively implemented.
Highlights of Kinwong's Customer Privacy Protection Measures during the Reporting Period:
Kinwong places high importance on customer privacy protection by continuously strengthening its informationsecurity management protection mechanism. The Company also strictly regulates employees' professional ethicsconduct to safeguard customer information and privacy. Through stringent access management, data encryption,endpoint and network security protection, application and database controls, physical security measures, employeetraining, and supervision and audits, Kinwong ensures that customer privacy is e?ectively protected.
Privacy Protection
To address the network security challenges brought by rapid business growth, Kinwong has built an efficientcybersecurity operation system. The Company has fully deployed the Stealth Threat Analytics system across allproduction bases and created an intelligent security operation system covering all production bases by combiningthe cloud security operation platform and AI technology. This e?ectively ensures the stable operation of the digitalfactory and the safe development of intelligent manufacturing.
Digitalization
Kinwong successfully launched its Master Data Management Project ofMaterial and Supplier in May 2024, which has remained in stable operationduring the reporting period. The project team built a comprehensivedata management platform and established and implemented a masterdata governance evaluation system to significantly improve the datamanagement. Furthermore, the team conducted an in-depth review ofmaterial and supplier master data and successfully cleaned approximately2 million master data records of material, significantly improving dataaccuracy and standardization. Moving forward, the Company will continueoptimizing data governance, driving business innovation and developmentwhile further enhancing overall competitiveness.
Successful Launch and Stable Operation of the Master Data Management Project of Material and SupplierCase
Key Performance IndicatorsDuring the reporting period, the Company confirmed data security incidents and confirmed customerprivacy breach incident are both0.
Key Performance Indicators
As of the end of the reporting period, the Company has achieved proactive defense capabilities featuring24/7 real-time monitoring and rapid response within5 minutes. A total of 442,800 attacks were intercepted, 100% of high-risk vulnerabilities were strengthened, and100% of incidents were handled in a closed-loop manner.
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Kinwong, while pursuing stable development, has always integrated socialresponsibility into its development strategy and actively promoted the sustainabledevelopment of the value chain. Upholding the philosophy of "caring aboutvalue creators", we are committed to driving development through scientific andtechnological innovation, strengthening quality management, and continuouslyimproving product and service quality to create long-term value for customers.Moreover, we promote industry cooperation and exchange, collaborating withpartners to drive industry progress. We fully protect employee rights and interests,creating a diverse, inclusive, and equal workplace that stimulates innovationpotential. Additionally, we actively fulfill our public welfare mission by engaging incharity activities and community-building initiatives, so as to give back to society andcontribute to the harmonious development of communities.
Social
Craftsmanship and Lean Production
Product Safety and QualityGuided by the philosophy of "Elaborate and Quality Products", Kinwong consistently drives innovation andimprovement in product quality standards. By constantly optimizing processes, enhancing quality control, andintroducing advanced technologies, the Company is dedicated to setting industry-leading product quality standardsand providing higher-quality products and services to customers.
The Company has developed theQuality Management Guidelinesto continuously improve the qualitymanagement system and enhance product quality. With a strict quality management system andadvanced quality control models, the Company has fully implemented internationally certified qualitymanagement standards such as ISO 9001:2015, IATF 16949:2016, and ISO 13485:2003. By introducingintelligent management systems such as ERP, MES, SRM, and EAP, the Company has optimized resourceallocation and significantly improved data processing and analysis capabilities, greatly enhancingoperational management efficiency.Quality System–Quality Goal Achievement Process
Quality Management System
· Preliminary productevaluation· Lesson learnt· Employee training· Equipment capabilitymonitoring· Establishment ofincentive mechanisms
Quality Planning
· Improvement of KPI
non-compliance· Reliability projectimprovements· Special improvements· Implementation ofCPAR & PDCA· 6 Sigma continuousimprovement
Quality Improvement· First article, self-
checking inspection· First pass yield &DPPM· Process audit· SPC control· Traceabilitymanagement
Quality Control
Organizational capabilitybuilding of the quality system
Support
Customer Requirements
Customer Satisfaction
Employee
Mindset
EmployeeCapability
Quality SystemManagement
EmployeeGovernance
·Quality performance evaluation·Quality culture building· Quality capability
training
· Establishment andimprovement of the quality system· Execution andimplementation review of the quality system
4748
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTHighlights of Kinwong's Product Quality Control Measures
Kinwong's Full Lifecycle Quality Management System
Full-Process Traceability SystemIntelligent Chemical Solution ManagementCode assignment after material cutting, withonline code reading throughout the entireprocess, enabling PNL/PCS traceability
Centralized preparation + pipeline delivery +online analysis + automatic addition, enablingreal-time SPC control of chemical solutionsOnline Automatic Measurement SystemIT-based Formula ManagementOnline monitoring of board thickness, copperweight, hole inspection, board warpage, AOI, AVI,etc., ensuring stable quality
Automatic parameter distribution and data collection
The Advanced Product Quality Planning (APQP) team is responsible for the preliminaryproduct planning, transforming all customer requirements into workable andimplementable measures, and following up on the implementation of customerrequirements by training the executive department.Advanced ProductQuality Planning
We have established a systematic quality management system with standard operatingprocedures (SOPs) as the guideline. A comprehensive training mechanism has been in place,focusing on standardizing operations, maintaining equipment, managing changes andexceptions, and continuously optimizing and improving traceability management. Additionally,we strictly control key items in process control to ful?ll product quality requirements.Process QualityControl
We have digitalized the inspection system and automated the testing equipment. Wealso use Measurement System Analysis (MSA) to evaluate and apply the inspectionsystem and strive to improve the defect "interception" system to ensure that issues areidenti?ed and resolved promptly during production.Inspection Capability
Enhancement
The Group's Supplier Quality Engineering (SQE) Department is responsible for thesystematic management of suppliers, so that the entire supply chain has a commonsense of responsibility and shares the fruits of rapid development, ?nally achieving thewin-win goal for supply and demand.Supplier QualityManagement
Based on the idea to integrate "multiple standards", we re-integrate all the resourcesand activities of the organization into an integrated management system, which is usedas the regulation and guidance to implement, maintain, and improve the process andsystem continuously.
Quality System
Management
We are dedicated to building a company-wide quality culture and have adopted a"zero-defect" quality strategy. Combining training and practical experience, we havebuilt a professional and e?cient quality management team.Quality Training and
Incentives
Management ProcessDescription
As of the end of the reporting period, Kinwong had obtained ISO 9001:2015 Quality Management System certi?cation,IATF 16949:2016 Automotive Quality Management System certification, and ISO 13485:2016 Quality ManagementSystem certi?cation for PCBs & FPCs used in medical devices.
ISO 9001:2015 (Left), IATF 16949:2016 (Middle), and ISO 13485:2016 (Right)
Kinwong actively identifies and effectively controls risks. Based on correct initial execution, the Company strictlyfollows customer requirements for identi?cation, assessment, conversion, and training processes. Facing "changes"or "exceptions", the Company places particular emphasis on implementing corrective measures and strictly prohibitsany violations. By continuously monitoring key control points, the Company emphasizes the importance of bothmethod and execution, focusing on the "prevention ?rst" principle and intensifying e?orts to manage details and putmeasures into action. Moreover, the Company continues to enhance product traceability capabilities and improvequality monitoring, prevention, and performance evaluation systems, striving to make its quality brand a corecompetitive advantage.
Kinwong has established a Central Laboratory with over 70 sets of advanced test equipment and more than 40test items. The scale and equipment value of the laboratory are both at industry-leading levels. The laboratoryhas also obtained accreditation from the China National Accreditation Service for Conformity Assessment (CNAS),meeting ISO/IEC 17025:2005 General Requirements for the Competence of Testing and Calibration Laboratories. Thelaboratory o?ers robust technical support for the R&D and veri?cation of new technologies, as well as the monitoringof process products, enabling Kinwong to issue credible test reports as reliable references for customers. Kinwong'sindependent laboratory has signi?cantly shortened the lead time, ensured product quality, and further strengthenedthe Company's market competitiveness.
Quality Risk Management
Product Testing Capability
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Product safety and reliability are the most important attributes of quality, while the core of quality is high reliability.To achieve this goal, Kinwong has established and implemented the Product Safety Control Procedures and hastaken a range of strategies and measures to standardize product safety management and ensure the safety andreliability of products.
Product Safety and Reliability Management
Central LaboratoryCNAS Accreditation
Certi?cate
Product Safety Planning
Customer Requirement Identi?cation and Review· Based on the Contract Review and Change Control Procedures, we identify and evaluate the safety-related legaland regulatory requirements for customers' products to fully understand the relevant safety requirements.
Review of Special Characteristics of Product· The Engineering Department reviews the data provided by the customer to identify special characteristics
related to product safety and then prepares the Special Characteristics Matrix of Product and Process to clearlyde?ne all product safety items and control requirements.
Product Development· During product development and process planning, our APQP team adopts advanced technologies and testing
methods to summarize past lessons and ensure product safety.· The APQP team also conducts Failure Mode and Effects Analysis (FMEA) and risk assessment. It identifiespotential risks and evaluates them through various tests to ensure that problems are detected and resolvedduring product development and production.Supply Chain Management· The Purchasing Department strictly regulates the transmission and execution of product safety requirementsin the supply chain and ensures that products have good traceability to maintain the quality and safety of theentire supply chain.
The Quality Department designates personnel to take charge of productsafety and clearly defines their qualifications, responsibilities, andtasks, ensuring that product safety is handled by specialized personnel.Additionally, we provide product safety training to all personnelinvolved in product safety-related design, procurement, production,and inspection activities. The training covers product liability principles,control signi?cance, risk analysis, and other aspects.Moreover, we have continued efforts to develop professional productsafety management personnel. As of the end of the reporting period,11 employees have obtained the Product Safety and ConformityRepresentative (PCSR) certi?cate.
PCSR Certi?cate (Partial)
Personnel Qualification Training
Production Process Control
Kinwong has developed the Control Procedures for Non-Conforming Products, which regulate non-conforming product management through both business processes and on-site processes. Theseprocedures create a closed-loop operation covering identification, marking, isolation, review, disposal,and improvement, with clear responsibilities assigned to designated departments for each process,thereby ensuring strict quality control.
Non-Conformance Management and Product Recall
Our APQP team develops control plans and SOPs based on special characteristics of product, with a view toclarifying process parameters and control measures that impact safety.
We verify process capability that impacts product safety to ensure that the process capability meets therequirements before and after mass production.
We perform precise calibration and Measurement System Analysis (MSA) of the equipment used for productsafety testing to ensure its reliability and accuracy.
Safety Control Strategy
Safety Process Verification
Test Equipment Calibration and MSA
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Handling Methods for Non-Conforming Products
Product Recall Management
When a batch of products is found to have defects, if the defect has no signi?cant impact onproduct quality or service performance, or if approval has been granted by the customer,the batch may be approved for release under Acceptance on Deviation (AOD). However, formedical products, the review of AOD must comply with relevant laws and regulations, and afunctional impact test report must be provided to ensure the safety and performance of theproduct.Temporary
Approval
We have established the Rework Operating Procedures, which stipulate that all rework tasksmust be documented on a Material Review Board (MRB) sheet, with the inspection resultsof the reworked products recorded. In particular, for reworks involving medical products,a functional impact test report and a rework impact analysis report are required to ensurethat the reworked products meet quality and safety standards.
Rework/Re-inspection
We have formulated the Scrapping Determination and Handling Procedures tostandardize the scrapping review process. Additionally, we analyze the scope ofnon-conforming products and assess their risks. For those of high-risk categories,batch scrapping will be conducted following the internal MRB process to ensureproduct safety and quality. For appearance and other distinguishable types ofdefects, the Rework Operating Procedures are applied for re-inspection, rework,or selection for scrapping.Scrapping
Timing Determination
If we discover that a batch of products exceeds hazardous substance limits or fails to meet quality standards,and these products are no longer under our control (e.g., already delivered or ownership has beentransferred), we will immediately initiate the recall process.
Corrective and Preventive ActionsWe conduct veri?cation tests, mock recalls, or actual recalls to validatethe e?ectiveness of the recall process, with results documented. Basedon these results, corrective and preventive measures are formulated.During an actual recall, we will address any issues in the recallprocedures and management system according to the recall report andtake necessary corrective and preventive measures as per theControlProcedures for Corrective and Preventive Actions.
Handling of Recalled ProductsRecalled products will be marked and isolated. They are treated as non-conforming productsand processed according to theControl Procedures for Non-Conforming Productsor theEnvironmental Material Management Procedures. Meanwhile, we will prepare a correspondingnon-conformance report, speci?cally indicating that these products are part of a recall.
Quality requirements for heavy copper PCBs in theenergy sector are growing increasingly stringent.To this end, the Longchuan PCB Factory launchedthe "Six Sigma Project for Reducing the PoorReliability of Heavy Copper PCBs in the EnergySector" in collaboration with a customer in 2024.The project focused on two key defects: internallayer connection issues and fiberglass whitening.Using the DMAIC methodology and tools like FMEAand MSA, the project team identified the rootcauses through multiple tests and analyses andimplemented improvement measures, signi?cantlyreducing the defect rate and improving productquality. The project was awarded the "Second Prizefor Excellent Six Sigma Projects" by the customerfor its solid implementation and remarkableimprovements.
Longchuan PCB Factory's Six Sigma Project Resolves Defects in Heavy Copper Products and WinsCustomer's Award
Case
Longchuan PCB Factory won the "Second Prize for
Excellent Six Sigma Projects" from the customer.
The intelligent factories built by Kinwong—Jiangxi Kinwong Factory 2 and 3—are among the most advanced in theindustry in terms of intelligence and innovation. These factories bene?t from short production cycles, high e?ciency,high yield rates, and strong traceability, greatly improving the Company's production efficiency and meetingcustomers' delivery needs to the greatest extent.By combining the di?erentiated characteristics of each factory and the speci?c customers served, the Company hasworked on product transformation, technological upgrades, and lean production. E?orts have been gradually madeto build a "complete chain" for internal and external information management, e?ectively reducing scrap rates andproduction costs, improving product quality, and driving signi?cant increases in capacity and e?ciency.
Quality culture is critical to Kinwong's quality management and business development. The Company hasincorporated quality management into mandatory training courses of employees and actively promotes a "zero-defect" quality culture. Emphasizing beforehand prevention and adhering to the principle of "doing the rightthing the first time", the Company strictly follows quality standards, standardizes production processes, and hasestablished quality red lines.To ensure e?ective management of quality red lines, Kinwong has established a strict reward and penalty system.Departments that strictly adhere to standards and maintain good product quality are recognized and rewarded,encouraging employees to actively participate in quality management. On the other hand, violations of quality redlines that a?ect product quality are met with serious consequences to maintain the Company's reputation for qualityand customer satisfaction.
Intelligent Manufacturing
Fostering a Quality Culture
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
The Company organizes various quality culture activities each year, including "Quality Month" activities, "Raise Your Hand" culturepromotion, and "Quality Red Line" management training, aiming to continuously strengthen overall quality awareness andpromote the integration of quality culture into everyday practices.
· Kinwong regularly organizes training sessions to effectively practice "Quality Red Line" management and createa quality culture of "standardized operations without violations". The training covers the "Quality Red Line"standards, operational procedures, and quality management requirements, with the aim of raising employees'understanding and awareness. The Quality Management Department and each factory's quality department areresponsible for supervising and auditing the implementation to ensure full adherence to the "Quality Red Line"requirements.·Kinwong's "Six Nos" Quality Red Lines
· Every third quarter, Kinwong organizes the "Quality Month" activities to foster a quality culture. The activitiesinclude a variety of forms such as collecting quality slogans, cartoons, and articles, seeking suggestions forimprovement, and hosting workshops, quality training sessions, knowledge contests, skills competitions, andquality improvement projects. In addition, the Company holds a summary and recognition meeting to recognizeemployees who have excelled in the quality culture initiative, further increasing employee engagement andfocus on quality management while deepening the development of quality culture. During the reporting period,the Company organized the 2024 Quality Month activities with the theme "Focusing on Job Responsibilities andStrengthening the Foundation of Quality".
"Quality Month" Activities
"Raise Your Hand" Culture Promotion
"Quality Red Line" Management Training
Operation withoutfollowing the Manufacturing
Instruction (MI)
Spot inspectionwithout following therequirements
First-piece manufacturingwithout following the
requirements
010102020303
Rework or repair without
review
Concealed or falsifiedreporting without actual
tests
Unauthorized changes
without approval
040405050606
· Kinwong actively promotes the "Raise Your Hand" culture by
integrating it into daily quality management. The Companyrequires all factories to strictly follow the ManagementMeasures for Fostering a "Raise Your Hand" Culture andhas conducted comprehensive training and advocacy toencourage employees to participate in problem feedbackand solving. With continuous e?orts to promote the "RaiseYour Hand" feedback mechanism, Kinwong is committed tobuilding an open and transparent communication channelthat encourages employees to freely express opinions.· Kinwong also requires that factories promptly inform
employees who provided feedback about the handlingresults and has established mechanisms for mitigating andincreasing penalties and rewarding to improve employeeengagement in quality management. Meanwhile, theCompany collaborates with factories to organize reviewand recognition events to reward employees who activelyparticipate in the "Raise Your Hand" feedback process,enhancing employees' motivation to engage in qualitymanagement.
2024 "Raise Your Hand" Culture Awards Ceremony
2024 Quality Month Activities
Additionally, Kinwong is committed to improving continuous improvement systems like Quality Control Circles (QCC)and Six Sigma and has developed corresponding evaluation and management systems. Each year, the Companyorganizes summary evaluation activities and rewards outstanding teams and individuals, providing them withopportunities for recognition, salary increases, and promotions.
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Kinwong has made continued e?orts to improve its research and development (R&D) management system, formingan R&D model with cross-departmental collaboration and internal-external synergy by leveraging its experiencedR&D team and extensive external partnerships. By establishing the Technology Center and the Central Laboratory,the Company has built a standardized, e?cient, and sustainable R&D system to drive technological innovation andproduct upgrades, laying a solid foundation for its long-term development. During the reporting period, the ZhuhaiKey Laboratory of Printed Circuit Boards for Intelligent Connected Vehicles and High-Performance AI Servers and theZhuhai Key Laboratory of Flexible Circuits for New Energy Batteries, established by the Zhuhai Kinwong and ZhuhaiKinwong Flexible, respectively, were recognized as "Zhuhai Key Laboratories". Moreover, the Company maintainshigh levels of R&D investment, continuously advances the development of scientific research platforms, andstrengthens its R&D capabilities. During the reporting period, Kinwong's R&D investment amounted to RMB 757.5872million, a 26.12% year-on-year increase.
Innovation and R&D System
To further promote the innovative development ofproducts and technologies, and to fully engage R&Dpersonnel in innovation, Kinwong comprehensivelyrevised and improved the Integrated ProductDevelopment (IPD) Project Assessment and IncentivePlan in 2024. The revision covered product andtechnology requirement insights, new productdevelopment, and technology development.Additionally, new rules for company-level ProductDevelopment Team (PDT) project bonuses wereintroduced. During the reporting period, Kinwongoperated 31 IPD projects and 4 PDT projects, with330 individuals incentivized, including 157 personnelfrom the R&D, process, NPI, and Technology Center.
Revising IPD Incentive Plan to Accelerate R&D InnovationCase
Innovation and R&D Honors and Qualifications
National High-Tech EnterpriseEngineering Technology R&D Center of Guangdong
Province
Zhuhai Key Laboratory of Flexible Circuits for New
Energy Batteries
Postdoctoral ProgrammeKinwong Technology Center Development Plan
Kinwong aims to establish an internationally leading PCB technology R&D center by fully leveraging socialinnovation and R&D forces, such as universities and research institutes, while strengthening and perfecting theindependent R&D innovation system led by the enterprise and focusing on customers.
Innovation-Driven DevelopmentFirmly upholding the business philosophy of "people foremost, manufacturing competitive products, expanding theenterprise, and repaying the society", Kinwong has always focused on customer needs. We continuously innovateand increase investment in fundamental research, strengthening our technical capabilities and consolidating corecompetitiveness. By delivering high-end products that meet customer demands, we signi?cantly enhance our brandpresence and bolster our market competitiveness.
Technical R&D
202220232024
R&D Investment（Unit：RMB million）
545.9291
600.6956
757.5872
Key Performance IndicatorsThe Company had R&D personnel1,768
5758
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTIntellectual Property ManagementKinwong places great importance on intellectual property (IP) protection and strictly complies with applicableChinese laws such as the Patent Law, the Trademark Law, the Copyright Law, and the Anti-Unfair CompetitionLaw, as well as international trademark registration regulations. The Company has established and refined itsintellectual property management system, along with formulating and implementing internal policies such as theIntellectual Property Management System, the Technical Intellectual Property Management Regulations, and theTrademark Management Regulations. These policies comprehensively regulate IP confidentiality management toe?ectively protect the Company's innovative achievements and core competitiveness. During the reporting period,the Company did not encounter any incidents of intellectual property infringement or its intellectual property beinginfringed upon.
Key Performance Indicators
During the reporting period, the Company held440 valid patents, including 287 invention patents,39 newly added patents and 210 patents pending for review during the year,as well as14 software copyrights and 225 copyrights.
To motivate employees to engage actively in technological innovation and intellectual property protection, Kinwonghas set up a corresponding reward system for technical intellectual property applications generated during o?cialduties. The incentive scope covers patents, computer software copyrights, academic papers, standards development,and scienti?c achievement evaluations. The Company has set up both individual and team awards, with selectionbased on the quantity, quality, technological advancement, and practical application of the proposals. Thesemeasures are designed to encourage employees to actively participate in technological innovation and academicresearch, thereby enhancing the Company's technological strength and market competitiveness.
Kinwong organizes annual intellectual propertytraining to raise employees' awareness ofintellectual property protection. During thereporting period, the Company organized 27specialized training sessions on patents andpapers, with over 100 instances of participationin total. The training was led by professional IPengineers and targeted at personnel from theR&D and process departments of the factory andthe Technology Center, systematically improvingthe R&D team's ability to create, apply, andprotect intellectual property.
Intellectual Property Incentives
Intellectual Property Training
Completion Status of Training Sessions on Patents and Papers
Patent Training SiteNational Intellectual PropertyDominant Enterprise
Famous Trademark ofGuangdong Province
Ji'an High-Value PatentCultivation Demonstration Center
Jiangxi Kinwong Awarded
"Ji'an Patent Award"
Sessions of knowledge training
Sessions of skills training
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Industry Collaboration and Win-Win Cooperation
Building a Sustainable Supply Chain
Kinwong places a high priority on the security, stability, and sustainability of its supply chain. By establishinga comprehensive supplier management system and implementing full lifecycle management, the Companydrives continuous improvements from suppliers in ESG aspects. At the same time, the Company has developed asustainable procurement policy, strictly controlled the risk of con?ict minerals, and strengthened supplier integrityto ensure a transparent and compliant supply chain.
The Company has developed theProcurement Management Procedures and the Supplier Quality Management Proceduresand continuously improved the organizational structure of supply chain management by adhering to themanagement philosophy of "smooth processes, integrity and high e?ciency, openness and transparency, equalityand mutual bene?t, and treating suppliers well". Responsibilities are clearly assigned to each department, and inter-departmental cooperation is promoted to implement related requirements level by level. This ensures the high-quality development of the supply chain in terms of safety, stability, and sustainability.
Kinwong has established standardized management systems and rigorous review processes for full lifecyclemanagement of suppliers. Various measures have been taken, such as setting admission criteria, signing complianceagreements, and conducting on-site reviews, performance assessments, and supplier training, to ensure thatsuppliers meet requirements in quality, information security, and social responsibility.
Supplier Management System
Full Lifecycle Management
Organizational Structure of Supply Chain Management
Full Lifecycle Management for Suppliers
Key Performance Indicators
During the reporting period, the Company had a total of 600 suppliers, with 100% of them signing integrityagreements.93% of suppliers signed agreements that include clauses of environment, labor, and code of conduct of suppliers.A total of 538 suppliers conducted social and environmental impact assessments.0 supplier was identified with significant actual or potential negative social impacts.
Procurement Management Department
SourcingDepartment
Departmentof CentralizedProcurement ofEquipment
Departmentof CentralizedProcurement ofMaterial
Quality andOperationsDepartment
PurchasingDepartmentunder the Bases
· The Procurement Management Department ?lls out theSupplier Quali?cation Freezing/Cancellation Applicationforsuppliers with quality defects, low transaction frequency, unsatisfactory evaluation results, pricing issues, orother problems.· Upon review, the Procurement Management Department removes the supplier from theList of ApprovedSuppliersand adds it to theList of Disquali?ed Suppliers.
Supplier Exit
· Suppliers are classi?ed into di?erent management levels based on the types of materials they provide, and
admission criteria are set for suppliers.· The Procurement Management Department selects suppliers that meet the necessary admission criteria and
includes them in theList of Potential Suppliers. The supplier with the highest comprehensive score undergoes an
on-site review. After passing the review, the supplier is considered a candidate.· Once quali?ed, suppliers are required to sign relevant agreements.
Supplier Quali?cation Management
· We have developed aOn-Site Audit Plan Form of Suppliersto conduct annual audits on suppliers, covering
responsible sourcing, human rights, child labor, employee welfare, and other aspects.· The review team scores the suppliers using theOn-Site Review Survey Form of Suppliersand provides feedback.
Suppliers are required to analyze and improve their de?ciencies within the speci?ed time frame.
Supplier Quality Management
· During the admission review, we issue aSupplier Information Security Status Survey Formto quali?ed suppliers,
and collect the completed forms for review.· The Procurement Management Department formulates theAnnual Information Security Review Plan of Suppliers
every January, targeted at suppliers dealing with information asset confidentiality requirements, and also
conducts annual information security audits.
Supplier Information Security Management
· We evaluate suppliers' performance in terms of quality, cost, delivery time, service, technological innovation,
and ESG management performance.· The evaluation results are categorized as excellent, good, average, or poor, with corresponding measures for
suppliers based on their categories, such as giving priority, asking for improvements, or disquali?cation.
Supplier Performance Evaluation
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Kinwong has integrated sustainable supply chain management into the full lifecycle management process ofsuppliers. At the admission stage, suppliers are required to submit theSupplier Qualification Application Form,environmental impact assessment (EIA) approval report, ?re safety inspection report, pollution discharge permit,chemical business license, and hazardous chemicals road transport permit, along with other environmental andsafety-related certification materials. Suppliers who hold internationally recognized certifications in the qualitymanagement system, environmental management system, ESG, and green supply chain are given priority forcollaboration.Once the supplier is qualified, the Sourcing Department sends theSupplier Guidelinesand signs agreements onenvironmental and social responsibility with the supplier, such as theSupplier CSR, Environmental Health, andSafety Commitment, theQuality Assurance Agreement, theIntegrity Agreement, theDeclaration of Non-Use ofProhibited Substances, and theSupplier Environment Protection Agreement. These agreements clearly de?ne thecollaboration requirements for building a sustainable supply chain.When managing suppliers, the Purchasing Department is required to complete theEnvironmental FactorsRegistration and Evaluation Formto identify environmental impact factors in products, services, or processes.By signing theEnvironmental Protection Agreement, conducting annual audits, and requiring third-party testingreports, the Company works to reduce the environmental impact of its supply chain.In the supplier performance evaluation, Kinwong has introduced a "green supply chain" bonus point system,with suppliers' application of environmental protection being evaluated by the Environmental ManagementDepartment. Suppliers who prioritize carbon neutrality, actively use environmentally friendly materials, reduceenergy consumption and greenhouse gas emissions, and implement hazardous substance reduction plans willbe given bonus points. This measure aims to encourage suppliers to work with the Company in promoting greendevelopment.
Additionally, on-site veri?cations are conducted during annual audits to ensure that suppliers progressively meet ISO14001 standards. On-site reviews cover Quality System Assessment (QSA), Green Product Assurance (GPA), QualityProcess Assurance (QPA), and Responsible Business Alliance/Corporate Social Responsibility (RBA/CSR), giving fullconsideration of ESG requirements to ensure a sustainable supply chain.
Sustainable Supply Chain
On October 14th, 2024,Kinwong successfullyconducted Production PartApproval Process (PPAP)training for all Class A and Bsuppliers, with 152 supplierrepresentatives attending thetraining. The training aims tofurther enhance supply chainquality, strengthen suppliers'understanding and executioncapabilities of the productquality control process, and laya solid foundation for futureproduction cooperation.
PPAP Training for Suppliers to Enhance Supply Chain QualityCase
PPAP Training for Suppliers
RBA/CSR Clauses and Scoring System
TheSupplier CSR, Environmental Health, and Safety Commitment includes the following CSR-related terms:
Environmental
Protection
Freedom of Association
and CommunicationDormitories and
Canteens
Working Hours
and WagesEquipment Safety and
Health
Business Ethics
Management
System
Discriminationand Discipline
Child Labor andUnderage Workers
Forced Labor
Chemical SafetyFire Safety
Labor Rights and Prohibition of Forced Labor:
· Any form of child labor is prohibited.· Prison or forced labor and the use of prisons as suppliers or subcontractors are prohibited. It is also prohibitedto restrict personal freedom or withhold identi?cation documents.· Violence, verbal abuse, corporal punishment, or sexual harassment is prohibited. Illegal body searches or cross-gender searches are prohibited.· Wages below the local minimum wage are prohibited.
Occupational Health and Safety:
· Major ?res or explosions shall be prevented.· Any work conditions that pose a serious risk to life or health or any fatal accidents at the working site shall beprevented.· A safe and healthy working environment shall be provided, with e?ective measures taken to prevent potentialhealth and safety accidents and to prevent diseases that occur in or are caused by work activities, e.g., massinfections caused by infectious disease outbreaks.
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Through the Open Letter to Kinwong Partners, Kinwong emphasizes the principle of integrity in collaboration andrequires suppliers to jointly adhere to integrity commitments, promoting mutual bene?t and win-win development.To strengthen integrity management, the Company has established reporting channels, encouraging suppliersand partners to report any instances of misuse of power for personal gain, misconduct, obstruction, or lack ofcooperation to the Audit and Supervision Department with evidence. Furthermore, the Company has preparedsupplier visit questionnaires and integrity awareness posters and paid actual visits to 16 suppliers to distributeintegrity promotional materials. Among them, 6 suppliers have become our external information channels and 2 haveestablished deep cooperation relationships with Kinwong, further advancing solid progress in integrity managementacross the supply chain.
Ensuring Supplier Integrity
Reporting Channels
ReportingHotline19830792606
Reporting Emailasc@kinwong.com
OnlineReportingPortal
Kinwong views con?ict mineral managementas a key element in ensuring the safetyand sustainability of the supply chain. TheCompany has developed a responsiblesourcing policy and actively conducts duediligence on suppliers, requiring them tosign the Declaration of Metal Conflict-Free.We commit to not accepting metals sourcedfrom con?ict mineral regions and require oursuppliers to earnestly fulfill their social andenvironmental responsibilities and ensurethat their products do not contain conflictminerals from the DRC and its adjoiningareas. Additionally, the Company requiressuppliers to trace the sources of gold (Au),tantalum (Ta), tin (Sn), tungsten (W), cobalt(Co), and palladium (Pd) in all their products,complete the relevant surveys, and ensurethat these requirements are communicatedto their upstream suppliers. With theseefforts, we aim to guarantee responsiblemineral sourcing practices across the entiresupply chain.
Conflict Mineral Management
Declaration of Metal Con?ict-Free
· Any media crises or serious mass negative events, including unnatural deaths, collective labor disputes, group
?ghts, mass poisoning, or other mass fatalities and injuries, shall be prevented.· Corruption and unethical incidents are prohibited. The principle of "Six Nos and One Commitment" shall bestrictly followed, i.e., no bribery, no gift-giving, no conflict of interest, no falsification, no cutting corner, nocommercial fraud, and honoring the commitment.
Social Responsibility and Ethical Compliance:
·The unlawful discharge of toxic or harmful pollutants, including wastewater, waste gas, or waste residues, is prohibited.· Management should comply with the latest Responsible Business Alliance (RBA） requirements, including those related
to the protection of female workers, Ozone Depleting Substances (ODS) management, and Greenhouse Gas (GHG)
management.
Environmental Protection:
· Vehicles transporting chemicals shall carry tools for absorption and collection in the event of a chemical spill, to
handle any accidental leakage.·Hazardous waste shall be handled according to regulations.· Vehicles used for loading and unloading shall carry wheel chocks to prevent the vehicle from rolling when
parked; for chemical handling, the vehicle shall not be started after connecting the chemical solution pipelines.· Chemical packaging shall remain intact, clearly labeled, and free from leakage, spillage, or dripping. Chemicals
packaged on pallets should be tightly bound with no risk of spilling. Suppliers should undergo necessary
environmental health and safety training and master emergency response methods and regulatory requirements
for environmental health and safety incidents that may arise during service, so as to avoid or reduce
environmental health and safety risks. In the event of an environmental health or safety incident at a factory of
Kinwong or Kinwong's customer, the response department or the Environmental Health and Safety Department
shall be promptly notified, and the incident shall be handled in accordance with national regulations and
Kinwong's requirements.
Chemical and Hazardous Materials Management:
· The supplier shall manage toxic and harmful substances in accordance with management standards, provide test
reports for the speci?ed content of these substances, and ?ll out relevant documentation. Any changes to materials,
components, manufacturing methods, and processes used in supplier production, or the production site of the
supplier, shall be approved by Kinwong in advance. Upon approval, Kinwong reserves the right to require the supplier
to submit a new test report for the speci?ed content of toxic and harmful substances or ?ll in the relevant information
based on the changes.· The supplier shall provide test reports for the raw materials used in the products. When submitting samples for
the first time, the supplier shall provide theChemical Substance Content Survey of Material, theDeclaration of Non-Use of
Environmentally Hazardous Substances, and the ICP Report. The supplier should assess and control the e?ectiveness of the
production process to ensure that no toxic or harmful substance contamination occurs during production.
Control of Toxic and Harmful Substances:
TheSupplier Environment Protection Agreement includes the following environmental protection-related terms:
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Kinwong has continuously improved its customer service system by regularly collecting customer feedback throughsatisfaction surveys. The Company has developed a sound complaint handling process to ensure the timelyresolution of customer issues. By consistently raising its customer service level, the Company endeavors to protectcustomer rights and interests while building a responsible brand image. As a result, we have received several awardsfrom our customers, re?ecting their satisfaction with our product quality and customer service.
Customer Service
Customer Service and Responsible Marketing
Kinwong always places customer demands at the core. By optimizing the customer service system and improvingproduct quality, we are dedicated to providing better experiences and value to our customers. At the same time,we adhere to the principles of responsible marketing and ensure that our marketing activities align with ethicalstandards and social responsibility, thereby promoting sustainable development and social harmony.
Awards Given to Kinwong by Customers in 2024 (Partial)
Key Performance Indicators
During the reporting period, the Company conducted a customer satisfaction survey, the returnedquestionnaires scoring above 80 points (out of a maximum of 100 points) is 98.37% .
In strict compliance with customer CSR standards, IATF 16949, ISO standards, and relevant laws and regulations,Kinwong has developed theCustomer Complaint Handling Proceduresto ensure that customer complaints are handledpromptly, with issues resolved in a timely manner, while continuously enhancing the Company's image of quality.
To better understand customer demands and satisfaction, Kinwong has established the Customer Satisfaction Surveyand Review Procedures, aiming to measure, evaluate, and analyze the Company's performance in meeting customerrequirements. These procedures provide a reference for making business plans and managing reviews, which helpcontinually meet current and future customer demands. The customer satisfaction questionnaire includes surveysand analyses of ?ve aspects: quality, delivery, service, technology, and environment & hazardous substances. Weaklinks with lower scores compared to the previous period are fed back to the responsible departments, followed by animprovement report. The e?ectiveness of the improvement measures is assessed three months after implementationto ensure that corrective actions are properly carried out.
Customer Complaint Management ProcessAfter receiving a complaint, theCustomer Service Departmentand the Sales ManagementCenter will contact the customerwithin 4 hours by phone, email, orWeChat to con?rm the complaintdetails (such as part number,cycle, defects, defect rate, etc.)and request photos or physicalsamples of the defect.
Once the complaint is veri?ed,the customer service engineer willnotify the relevant department inwriting within 1 business day andorganize a discussion to proposetemporary corrective actions toprevent the spread of defectiveproducts.
For batch or major complaints, thecustomer will be advised to stopthe production line for reliabilityveri?cation tests. Meanwhile,the Quality Department, ProcessDepartment, and other relevantdepartments will jointly investigatethe cause, propose corrective andpreventive actions, and keep trackof the e?ectiveness through CPARand 8D reports until the issue isfully resolved.
Customer Satisfaction Management Responsibilities and Measures
The center is responsiblefor initiating and collectingquestionnaires to ensure thatsurveys are launched accordingto the established proportions,with an overall response rate ofat least 80%.
Marketing Management Center
The center is responsible fordeveloping survey methods,identifying survey targets,designing survey templates,analyzing survey results, andleading the respective businessunits to create improvementreports.
They are responsible forimplementing improvementmeasures based on thecomprehensive analysis results.
Customer Service Teams in Each
Business Unit
Annual Supplier Award–
Pinnacle Award
2024 CorePartner
Second Prize at the 2024Supplier Lean ProjectPresentation Competition
AP SupplierAward
Best Supplier
Award
2024 Logitech Demand
& supply Award
Special Contribution Awardat the Global Supply Chain
Conference
Best Quality Support
Award
Quality Management Center
6768
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTTo standardize the follow-up work for customer after-sales services, such as returned products, Kinwong hasdeveloped theReturned Product Analysis Proceduresand theNo Trouble Found (NTF) Operating Procedures. The CustomerService Department is responsible for receiving returned products from customers and verifying product marking,cycle times, and complaint descriptions to con?rm whether the feedback is true. Then, the department promptlycollects and communicates relevant information, and when necessary, coordinates internal resources to proactivelyinitiate and lead the NTF process. During this process, the department maintains close communication withcustomers and the supply chain, organizes tests and investigations, and follows up on all work until the issue is fullyresolved. All analysis data should be shared with customers to ensure an open and transparent after-sales processthat meets customer requirements.
In line with the ongoing supply chain transformation, delivery representatives, as key roles in improvingcustomer delivery satisfaction and achieving operational excellence, should have their responsibilities furtheroptimized. In February 2024, Kinwong o?cially launched the "Special Plan of Talent Development for DeliveryRepresentatives" to systematically build a talent cultivation framework for delivery positions. The plan clari?esthe focus and core competency requirements for delivery representatives at various levels and specifies thatkey business personnel are selected as internal trainers, aiming to accelerate talent growth through specializedtraining and continuously improve the business capabilities and organizational value of the delivery team.The project achieved remarkable results. In January, the Delivery Representative Qualification Standard V1.0was completed, and 18 essential training courses for new recruits were designed. From March to April, 15 internaltrainers were trained and courses were developed through the workshop series. From May to November, tworounds of specialized training for new recruits were conducted, with a total of 1,105 instances of participationfor 48.3 hours. The course satisfaction score reached 9.55, and 95% of new hires participated in the training.Over 50 delivery representatives were systematically trained, and 10 core courses were converted into videoformat, providing standardized learning resources for future talent development. This series of initiatives servesas a great support for our goal of supply chain transformation, laying a solid talent foundation for continuouslyraising our customer service level.
Talent Development Special Training for Delivery RepresentativesCase
Drafting standardsBuilding capabilities for trainersProfessional training
Kinwong strictly complies with laws and regulations such as theAdvertisement Law of the People's Republic of ChinaandtheElectronic Commerce Law of the People's Republic of China. Adhering to the principles of responsible marketing, theCompany has improved its marketing management system to ensure the accuracy and objectivity of promotionallanguage. The Company has also established a rigorous compliance review system and approval process to ensurethe authenticity of promotional information and promptly identify and prevent compliance risks. Additionally,the Company regularly conducts responsible marketing training to enhance employees' awareness of compliantmarketing and professional ethics, ensuring the provision of high-quality services to customers.During the reporting period, the Company did not receive any complaints or legal disputes regarding misleadingpromotional content or deceptive practices toward consumers.
Responsible Marketing
In strict compliance with theCivil Codeof the People's Republic of Chinaandother laws and regulations, Kinwonghas continued to improve its marketingcompliance management system.In 2024, the Company established aMarketing Legal Business Partner (BP)role to strengthen business and legalcollaboration. Through contract reviewmeetings, specialized training, andcase studies, Kinwong aims to enhancelegal risk awareness and compliancecapabilities across the organization,ensuring that customer services areprovided in a legal, regulated, ande?cient way.
Responsible Marketing TrainingCase
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Kinwong participated in the review meetings for three industry standards, i.e., theDirect Bonding Copper Ceramic PrintedBoards, theGeneral Requirements of Printed Circuit Board's Safety, and theTechnical Speci?cation for High Density InterconnectPrinted Board.
Participation in Review Meetings for Industry Standards
Participating in Three Standard Review Meetings Organized by the China Printed Circuit Association
Kinwong participated in the International Electronics Circuit Exhibition (Shenzhen), where the Technical Directordelivered a speech on "Edge AI Brings PCBs New Development Opportunities".
Participation in Industry Activities
Delivering a Speech at the International Electronics Circuit Exhibition (Shenzhen)
Collaborative Development of the IndustryKinwong has actively participated in several industry associations, becoming a member and contributing to thedevelopment and review of industry standards. By engaging in various industry activities, the Company promotesindustry collaboration and common development, strengthening its industry in?uence while also raising the level ofindustry standards.
Participation in Industry Associations
Guangdong Integrated Circuit Industry
Association
Guangdong Institute of Communications
China Printed Circuit Association
Vice President Unit
Guangdong Printed Circuit Association
Vice Chairman Unit
Shenzhen Association of Medical DevicesShenzhen Arti?cial Intelligence Industry
Association
Shenzhen Internet of Things Industry
AssociationShenzhen Lighting and Display Engineering
Industry Association
Energy Storage Application Branch of ChinaIndustrial Association of Power Sources
Shenzhen Printed Circuit Association
Honorary Chairman Unit
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTPeople-Centered, Shaping the Future Together
Standardized Talent IntroductionKinwong adheres to a people-centered approach and strictly complies with relevant laws and regulations, such astheLabor Law of the People's Republic of Chinaand theLabor Contract Law of the People's Republic of China. The Companyhas established and improved the labor management system to ensure compliance management in employeerecruitment, employment, dismissal, compensation and benefits, working hours, and holidays. Additionally, theCompany has established and improved a comprehensive talent development and training mechanism, aiming tocreate an all-around safe, healthy, and comfortable working environment. Furthermore, the Company also focuseson employees' career development and quality of life. By adopting innovative incentive mechanisms and a robustsystem for protecting employees' rights and interests, we strive to create value in partnership with our employees,share the fruits of our development, and grow together, all while advancing towards a brighter future of excellence.Kinwong upholds equal employment, prohibits child labor, resists all forms of forced labor, and strives to build adiverse workforce by providing a fair and inclusive work environment for employees regardless of their ethnicity,race, gender, or belief. The Company also actively assumes its role as a corporate citizen, resolutely opposingdiscrimination against vulnerable groups and ensuring employment opportunities for key and special groups,including hiring people with disabilities and o?ering them equal bene?ts and promotion opportunities. For formalemployees, the Company ensures that labor contracts are signed based on the principle of equality and voluntarinessand strictly complies with laws and regulations as well as the terms of the labor contract in dealing with matters suchas the performance, renewal, dissolution, and termination of the labor contract, ensuring standardized employmentpractices.Kinwong systematically breaks down its strategic plans to clarify the short-term and long-term core objectives andtasks of each department, forecasting the talent pipeline needed to support the Company's all-encompassing,sustainable development. The Company primarily recruits external talent through regular social and campusrecruitment channels. Additionally, the Company developed a new pathway for HR recruitment in 2024, buildinga mid- to senior-level talent pool in the industry. This effort successfully attracted dozens of mid- to senior-levelprofessionals in key areas such as technology R&D and market development, signi?cantly enhancing the Company'score strength in market competition and providing strong support for rapid business expansion.
Total workforce by gender?? Unit：PersonsTotal workforce by age?? Unit：Persons
Key Performance Indicators
Percentage of femaleemployees
41.29%
Con?rmed cases ofdiscrimination
Percentage of ethnic minorityemployees7%Con?rmed cases of forced labor
Social insurance coverage rate100%
Con?rmed cases of child labor
7,406
10,532
5,771
7,492
4,328
Female employeesMale employees30 and below
41–50
31–4051 and above
Total workforce by job levelUnitPersonsSenior management employeesPersons62Female employees in the senior managementPersons6Middle management employeesPersons424Female employees in the middle managementPersons87
Frontline employeesPersons17,452Number of Employees (Persons)
2022
14,480
2023
15,298
2024
17,938
7374
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTEmployee Development and TrainingKinwong has always regarded human resource development as a key strategic element to drive growth. Based on itscore values, the Company emphasizes a talent concept where "everyone is accountable". It is dedicated to building ahigh-caliber, professional elite team with greater strength and vitality. Meanwhile, the Company has implemented anall-round training system with diverse training plans and established a scienti?c performance evaluation mechanismand comprehensive career development pathways, with a view to comprehensively enhancing employees' overallcapabilities and stimulating their intrinsic motivation. Moreover, the Company actively promotes collaborativeinnovation of industries, universities, and research institutes and deepens the school-enterprise collaborationmechanism to foster innovation-oriented talents for sustainable development.Core Values and Concepts of Talent Management
We place customer needsat the forefront and keepoptimizing our servicesto improve customersatisfaction.
Customer-Centered
We remain committedto acknowledging bothindividual and organizationalshortcomings andcontinuously engaging in self-criticism and improvement tomake ongoing progress.
Self-Criticism
We advocate for honesty andpractical actions and striveto achieve our goals throughvarious means withoutengaging in false advertisingor deceptive practices.
Down-to-EarthApproach
We focus on guidingsubordinates' growth intheir work, emphasize teamdevelopment, and strive tobuild a cohesive organizationwhile pursuing businessperformance.
OrganizationalBuilding
We cultivate strategicawareness and structuredthinking, make scienti?cdecisions with objectivity,and reject the pursuit of quicksuccess and instant bene?ts.
StrategicAwareness
We discourage individualism,emphasize the importanceof teamwork, and advocatefor a collective approach overfocusing solely on individualinterests.
Big Picture
Thinking
We maintain a constantawareness of potentialrisks, adhere to a long-termcommitment to hard work,and stay competitive to guardagainst various risks.
CrisisAwareness
We value the power of rolemodels and hold ourselvesand employees to highstandards of integrity andself-discipline to maintain apositive corporate image.
Integrityand Self-Discipline
Performance Management Implementation Pathways
Kinwong has established two main development pathways for employees: one for management talents and theother for professional talents. The Company has continuously improved employees' career development channelsthrough internal transfers, regular selection and evaluations, and occasional additions.
Kinwong has established a comprehensive performance management indicator system through the formulation ofthePersonal Performance Management Regulationsand theOrganizational Performance Management Measures. Backed up bye?cient management bodies, the Company has aligned strategies with Key Performance Indicators (KPIs), drivingstrategic goals through performance management.
Employee Career Development
Employee Performance Management and Incentives
Internal TransfersKinwong promotes internal transfers for current employees, enabling them to take theinitiative to apply for vacant positions in the Company. This initiative e?ectively expandsemployees' career development opportunities in the Company.
Management Talent PromotionKinwong conducts evaluations for employee-job matching based onkey position criteria, focusing on four aspects: core responsibilities,professional abilities, critical experience, and value contribution.Professional Talent Promotion
Kinwong evaluates professional talent based onjob quali?cations, with a focus on ?ve dimensions:
responsibility, professional feedback, expertise,communication and in?uence, and problem-solving ability.
De?ningStrategies
ClarifyingStrategies
Indicator
System
IndicatorBreakdown
Performance-Based Contract
(PBC)
7576
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTThe Company implements individual performance evaluations to guide and motivate employees to contribute tothe organization's strategic goals, fostering mutual growth for both the organization and its employees. Individualperformance indicators for employees include KPIs, key initiatives, teamwork, and personal development.The results of the annual performance evaluation are linked to employees' compensation, appointments, anddevelopment opportunities.Performance Evaluation Frequency
Personal Performance Management Process
Our organizational performance management adheres to the following principles: aligning with the Company'sstrategies and business priorities; being performance-driven and emphasizing quantitative management; combiningresponsibilities, authorities, and rights to ensure fairness and justice; balancing incentives and constraints topromote positive motivation; and fostering communication and collaboration to drive continuous improvement. TheCompany's scope of organizational performance management assessment is as follows:
Assessed OrganizationsRepresentative DepartmentsFirst-Tier OrganizationsProduct Lines, Marketing Management Center, Functional Departments of the GroupSecond-Tier Organizations
Factories and platform departments under all product lines, departments under the Marketing
Management Center, and departments under all functional departments of the GroupThird-Tier OrganizationsDepartments under the factories
Breakdown of departmental
goalsIndividual goal settingCommunication and signingof the performance-basedcontract (PBC)
Daily coachingMid-term review
PBC updatesKey events documentation
Public disclosure of results
Face-to-face talks on the
feedbackPerformance improvement
Employee self-evaluation
Supervisor evaluationCollective evaluation
Two-WayCommunicationto UnlockPotential
PerformanceFeedback andImprovement
Performance
Evaluation
PerformanceGoal Setting
PerformanceExecution and
Coaching
Beyond the aforesaid initiatives, Kinwongstimulates employee engagement throughdaily management by organizing monthlyrecognition and reward activities to publiclypraise outstanding individuals and teams.The Company, based on the phased workresults, promptly acknowledges employees'outstanding contributions in areas such asefficiency improvement, quality control,and collaborative innovation during daily orweekly departmental meetings. This efforthas strengthened positive guidance througha combination of spiritual motivationand the granting of honors. This high-frequency, ongoing recognition mechanismnot only enhances employees' sense ofbelonging but also creates a proactive workenvironment that effectively improvesoverall performance.
High-Frequency, Ongoing Recognition Mechanism
To further establish and refine the Company's long-term incentive and restraint mechanisms, attract and retaintop talent, and fully mobilize the core team's enthusiasm, Kinwong has made significant efforts to create aninstitutionalized, long-term equity incentive system. This system e?ectively aligns the interests of shareholders, theCompany, and the core team, focusing their attention on the Company's long-term development and ensuring thesuccessful execution of its development strategies and business objectives. The Company launched three phases ofequity incentive plan in 2018, 2019, and 2024 respectively.In April 2024, Kinwong released the2024 Kinwong Stock Option and Restricted Stock Incentive Plan (Draft), which includesboth stock option and restricted stock incentive plans. According to the plan, Kinwong intends to grant a total ofup to 22.399 million shares to the incentive recipients, accounting for 2.66% of the Company's total share capital of
841.8739 million shares at the time of announcing the equity incentive plan. Of these, 19.4204 million shares were
granted for the initial allocation, and 2.9786 million shares were reserved for future grants. The ?rst grant under thisincentive plan was completed in June, with 881 individuals registered for the initial grant. A total of 6.6779 millionstock options and 12.0241 million restricted stocks were granted.
Employee Equity Incentives
MonthlyQuarterlyAnnual
Frontline Employees
√√Middle Management Employees
√√Senior Management Employees√
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
In terms of talent development, Kinwong strives to help employees continuously optimize their job competencies,thereby supporting the Company's sustainable operations and development. To encourage employee learning andgrowth, the Company has established related systems such as the Training Management Measures, the ManagementRegulations on Internal Trainers, the Management Regulations on Employee Mentors, the Management Regulationson External Training, and the Management Regulations on Training Points. During the reporting period, theCompany formulated the Management Regulations on College Student Development, in an effort to improve theattraction, selection, and training of college students. This policy has strengthened the mechanism for developingand managing college students, clarified the responsibilities of the departments involved, and provided effectiveguidance for the Company in selecting, utilizing, developing, and retaining young talents, thereby building a strongerteam of young professionals for the Company.Currently, the Company has established a mature talent training system, systematically training employees acrossfour key groups: management personnel, professionals, trainers, and new employees. By combining theory withpractice, the system aims to improve employees' comprehensive quality and professional skills, while ensuringthe efficient operation and sustainable development of the organization through well-structured training andmanagement.
Employee Training System
The Company has de?ned a multi-level promotion pathway from team leaders to directors/general managers to ensure a robust management talent pipeline. Four training programshave been launched, including Green Seedling Program (Frontline Team Leader), Wind-Against Program (Line Manager), Evergreen Program (Middle Level Manager), and GreenPine Program (Executive Manager). Through tiered and targeted development programs, theCompany helps new managers transition into their roles quickly and supports experiencedmanagers to enhance their management skills to a higher level.
Management
TalentDevelopment
The Company has de?ned a promotion pathway for professionals from assistant engineersto chief technical officers (CTOs), covering technical R&D, engineering processes, andother specialized ?elds. The Company also conducts professional courses in various areas,including marketing, technical R&D, production and manufacturing, quality management,operations management, and engineering processes, ensuring that talents in these areasreceive systematic training.Professional
TalentDevelopment
The training programs for new employees are divided into two categories: the KinwongFresh Graduates Development Program for campus recruitment (the "Pine Nut Tribe"Program) and the training program for new hires through social recruitment. Throughsystematic training, the Company supports new employees in becoming competent in theirpositions at a fast pace.New EmployeeDevelopment
To accelerate talent development and foster a learning organization, the Company hasincreased training for internal trainers, mentors, and training managers, with correspondingmanagement systems to support these e?orts.TrainingPersonnelDevelopment
Kinwong's Talent Development System
Key Performance IndicatorsTotal number of employees trained16,195personsNumber of training sessions2,707sessions
Percentage of employees trained
100%Total training investmentRMB
2.81 million
Total training hours170,199hours
ManagementPathway
TrainingPrograms
ProfessionalPathway
Professional Curriculum SystemManagement TalentDevelopment
New Employee Onboarding Training (Campus Recruitment: the "Pine Nut Tribe" Program;
Social Recruitment: Orientation Training)Support from the Training Management System & Training Institutions
Professional Talent Development
Training TeamDevelopment
Fostering Strong Talent Capabilitiesand Building a Learning Organization
Marketing Line
Internal Trainer TeamTechnical R&D Line
Mentor TeamProduction and Manufacturing Line
Training Manager TeamQuality Management Line
Operations Management Line
Engineering Process Line
.......Deputy DirectorDeputy General
Manager
DirectorGeneral Manager
ManagerDeputy Manager
DepartmentHeadSenior Manager
SupervisorSeniorSupervisorTeam Leader
Chief Engineer
Deputy ChiefEngineer
ChiefTechnologyO?cer
Deputy SeniorEngineer
SeniorEngineer
EngineerSenior EngineerAssistantEngineer
Wind-Against
Program
Green Seedling
Program
Green Pine
Program(including thetalent pipeline)
Pre-jobTraining
On-the-jobCerti?cationFrontline Employee Job Skill
Level Certi?cation
7980
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
During the reporting period, Kinwong focused its training system on cultivating talented managers, developing thetraining management system, training young professionals, and improving training regulations. The key trainingactions and results are as follows:
Employee Training Actions
To thoroughly implement the "Double Hundred Project" strategic plan, Kinwongofficially launched the "Young Manager Training Camp" development program inApril 2024. The program built an innovative five-dimensional integrated trainingsystem—Test, Learn, Practice, Coach, and Evaluate—to nurture high-potential talents.The program, focused on developing a professional and youthful management team,carefully selected 36 core employees as reserve managers after a rigorous selectionprocess. Throughout the 9-month closed-loop training, they engaged in blendedlearning, tackled real-world challenges in practical projects, received guidance fromexecutive mentors, and studied classic management literature. With these efforts,the program aims to address management challenges such as the lack of vitality andcapability gaps in the leadership team. During the reporting period, the programreached key training milestones, including talent assessment and pro?ling, as well asleadership-focused intensive training. Concurrently, signi?cant policy developmentswere made, including theTalent Pipeline Selection Criteriaand theJob-Speci?c PracticeMentorship Manual. These outcomes have laid the groundwork for the establishment ofa long-term manager development system.
Young Manager Training Camp—Cultivating Talented ManagersCase
Site of the Young Manager
Training Camp
Internal Trainer Management and Development: In2024, the Company intensified efforts to train andcertify internal trainers through various activitiesaimed at improving their abilities and quali?cations.A total of 338 trainers were certified in the Group,including 288 junior, 48 mid-level, and 2 seniortrainers.
Annual Departmental Training Plans: Departmentaltraining mainly focused on management skills,job-specific skills, operating procedures, qualityknowledge, and workplace safety. Group-leveltraining programs covered four major areas, including7 sessions for manager training with 14 courses,15 courses for fresh graduates, 59 sessions for newemployees through social recruitment, and additionalprofessional training in areas such as quality,equipment, and technology.
Talented Manager Development: In 2024, the
Company completed the ?rst phase of "the Green PineProgram–Young Manager Training Camp" for talentdevelopment. 36 trainees were selected and received 4intensive training sessions covering 11 courses and 60hours of systematic training. From May to December,they engaged in job-specific mentorship and hands-on projects, which greatly enhanced their ability tomanage key tasks in their roles and strengthened boththeir professional and managerial skills.
Training Management System: The Company focusedon optimizing the system, improving the functionalmodules that had been developed, and making timelyadjustments based on business needs. Currently,8 modules have been developed and launched,including training plan management, trainingexamination management, training demand research,trainer management, mentor management, employeejob certificate management, training operationsmanagement, and data report center.
In 2024, Kinwong comprehensively advanced the job standards training program for frontline employees.The program aims to standardize the required knowledge and skill standards for frontline workers acrossall factories, optimize the job assessment process, and integrate the management of job certificates intothe E-HR system through digital means, thereby enhancing basic management and operational efficiency.This initiative has significantly improved the job skills of frontline employees, ensuring that productionefficiency and product yield meet customer expectations.Throughout the year, the Company unified the development of job certificate management scopes andskill standards, guiding 7 factories to standardize the skill certification process. Additionally, the Companyissued the group-level document,Management Guidelines on Frontline Employee Job Certi?cates, reinforcingthe management system through routine inspections. In collaboration with the Information ManagementDepartment, the Company also developed a module for job certificates in the E-HR system. The moduleenables automatic grading of online assessments, automatic retrieval of job certificates, report generation,and one-click printing, greatly streamlining manual processes.
Job Standards Training Program for Frontline EmployeesCase
The "Pine Nut Tribe" Program, an integral part of Kinwong's training efforts for new graduates, followsa "669" development model. This model includes assessments at the 6th, 12th, and 21st months ofemployment, along with opportunities for promotion and salary increases. Combining these three nodes,the Company offers a 21-month training program for fresh graduates, which is structured into four stages:
centralized training, personal quality development, production line internships, and job practice. Theprogram is designed to help fresh graduates integrate into the corporate culture, understand businessprocesses, meet job requirements, and enhance their professional skills, ultimately enabling them to fullyintegrate into Kinwong and become high-performing employees with stable behavior, improved workingcompetence, and strong professional skills.
Kinwong Fresh Graduates Development Program—the "Pine Nut Tribe" ProgramCase
Training Camp of the "Pine Nut Tribe" Program
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
To support its internationalization strategy, Kinwong officially launched a Multi-language ProficiencyImprovement Plan in 2024, with a focus on specialized English and Japanese training. The program broughttogether a team of 30 internal certi?ed trainers and reached over 300 employees through a three-tier trainingsystem, encompassing basic, intermediate, and advanced levels. The courses covered three modules: technicalterminology, daily communication, and business practices, using diverse and innovative teaching methods suchas special lectures, scenario simulations, and interactions with native-speaking instructors. Additionally, foreignlanguage-themed days were organized. This systematic training has signi?cantly enhanced employees' cross-cultural communication skills and supported the Company's global expansion with high-quality talents.
International Talent TrainingCase
Kinwong launched the second phase of the Data Empowerment Camp in November 2024 to further advanceits data strategy. This training program targeted mid-to-senior-level managers and key business personnel,o?ering two core courses: Managerial Data Analysis Thinking Training and BI Tool Practical Operations. A totalof 9 specialized training sessions were conducted, covering 512 participants. The training employed practicalteaching methods, including case analysis and tool exercises, to systematically enhance participants' datainsight capabilities and deepen the application of data in sales analysis, operations monitoring, and otherbusiness scenarios. The program also established a cross-departmental communication mechanism for dataapplication to foster experience sharing across business units. The second phase of training built upon theprevious phase, strengthening closed-loop management. Following the training, key business departments sawa 40% increase in data report utilization and a 25% rise in the frequency of management data decision meetings,e?ectively supporting the Company's re?ned management objectives. Moving forward, the Data EmpowermentCamp will continue to evolve its curriculum system and accelerate the development of a digital talent pipeline,providing core momentum for the Company's strategic transformation.
Data Analysis and Visualization (BI) Empowerment CampCase
International Training Site
To meet the external training needs for organizational capability development across departments and enhanceemployees' job skills and professional qualities, Kinwong has established theExternal Training ManagementRegulations. Employees can apply for external training that is relevant to the knowledge, skills, and quali?cationsrequired for their positions, as well as for training initiated by employees based on their personal careerdevelopment, which aligns with the Company's or department's business development trends (including continuingeducation, e.g., undergraduate and associate degree programs). Employees may submit requests for external trainingand reimbursement applications to the Company, which will cover the related costs incurred from participating inexternal training.
From a mid- and long-term talent reserve perspective, Kinwong actively expands school-enterprise cooperation,reaching deep partnerships with higher education institutions to jointly establish specialized school-enterpriseprograms. These programs integrate cutting-edge PCB professional knowledge with a special emphasis on oralEnglish skills, aiming to meet the Company's future talent needs in international business expansion.To ensure a smooth transition from campus to the workplace, the Company arranges for students to intern at theCompany during their critical senior year. During the internship, students familiarize themselves with the Company'sorganizational structure, operational processes, and the core skills required for their roles. This school-enterpriseintegration model enables students to quickly adapt to the Company's work environment after graduation, becominga young driving force behind the Company's sustained development. This process has established a stable and high-quality young talent pipeline for the Company, ensuring a continuous stream of human resources for its long-termdevelopment.
Academic and Skill Enhancement Subsidies
School-Enterprise Cooperation
Democratic ManagementEnhancing Employee Well-being
Kinwong adheres to democratic management principles, respecting and safeguarding employees' democratic rights.The Company has established a comprehensive collective bargaining mechanism, providing employees with opencommunication channels while maintaining stable and harmonious labor relations between the Company and itsemployees. In accordance with theTrade Union Law of the People's Republic of China, theLabor Contract Law ofthe People's Republic of China, and other relevant laws and regulations, the Company has established a Labor Unionand formulated theLabor Union Management Measures.The Labor Union focuses on the Company's production and operations and fulfills its basic duties to safeguardemployees' legitimate rights and interests in compliance with the law. It plays a key role in organizing andparticipating in the Company's democratic management and supervision, coordinating labor relations andpromoting harmonious development in the Company to ensure sound corporate growth.
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Employee Welfare SystemKinwong adheres to the philosophy of putting people ?rst and enhances employees' happiness and organizationalidentification through a diversified welfare system. In addition to offering basic guarantees such as statutoryholidays, social insurance, and housing provident fund, the Company has also introduced special welfare programscovering commercial insurance, commuting buses, health check-ups, and other bene?ts. These e?orts aim to createa supportive workplace ecosystem that fosters mutual growth between employees and the Company.
Organizational Structure of the Labor Union
Key Performance Indicators
Resolution rate of the Labor Union'sdemands100%Labor Union members13,616 persons
Number of workers' congressesheld: 27
In addition, Kinwong continues to take employee care actions by establishing a long-term assistance mechanismfor disadvantaged groups. Through dynamic investigation and precise identification, the Company providedmultifaceted support to 56 employees facing di?culties in 2024, addressing issues such as illness, accidents, or familycalamities. The Company has adopted a tailored support strategy, including ?nancial aid, psychological counseling,and resource coordination, to effectively ease employees' burdens. Regular follow-ups and tracking serviceshave been conducted to ensure that these e?orts have a lasting impact. These initiatives have not only increasedemployees' sense of belonging and cohesion but also underscored the Company's dedication to humanistic care andcorporate social responsibility.Employee Satisfaction
Kinwong values the creation of a positive work atmosphere and strives to reduce work stress through a series ofcare activities. The Company encourages employees to actively participate in activities that promote fitness andhealth. Every year, the Company conducts an annual organizational atmosphere survey for all employees. The surveyincludes factors such as work recognition, personal care, encouragement for development, respect for opinions,recognition of progress, and learning and growth. In 2024, 12,522 valid questionnaires were collected, with a highresponse rate of 90%. The results showed that the overall organizational atmosphere score in 2024 was 3.90 onaverage, an increase from 3.81 in 2023, marking a continuous upward trend for three consecutive years.
Social Insurance and Housing Provident Fund
The Company provides employees with social insurance and contributes to their housing provident fund,safeguarding their social security rights.Commercial InsuranceThe Company offers commercial insurance for employees and provides them with more comprehensiveprotection, including accident insurance and health insurance.Annual Activity FundThe Company allocates an annual activity fund to organize a variety of events for employees, therebystrengthening employee cohesion and fostering a sense of belonging.HolidaysThe Company o?ers paid annual leave and holiday breaks, ensuring that employees have ample rest timeoutside of work.Health Check-upsThe Company organizes regular health check-ups for employees, paying attention to their physical healthand providing health management services.Commuting BusesThe Company o?ers convenient commuting bus services to address employees' transportation needs.Employee Dormitories and Electricity Subsidy
The Company provides accommodation bene?ts for employees in need, along with an electricity subsidy.
Chairman of the Labor UnionVice Chairman of the Labor Union
Organizational
ActivityCommitteeMember
PublicityCommitteeMemberFinanceCommittee
MemberFinancial
AuditCommitteeWomenWorkers'CommitteeDietaryCommitteeWorkplace
SafetyCommitteeLaborMediationCommittee
8586
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTCare for Female EmployeesKinwong places a high priority on protecting the rights and well-being of female employees. The Company o?ersbene?ts such as maternity leave, paid childcare leave, termination of pregnancy leave, as well as breastfeeding timeand breaks, while also regularly organizing care activities for female employees during special holidays. Additionally,the Company has established a mother-baby room, equipped with a changing table, microwave, and hot drinkingwater, providing a private and comfortable space for breastfeeding mothers.
Mother-Baby Room
In 2024, Longchuan Kinwong's Party Branch launched the "Caring for Pregnant and Postpartum Women for aBetter Health" theme activity, which aims to show the Party organization's attention to the physical and mentalhealth of female employees through targeted care for special groups and to deepen the people-centeredcorporate culture. The activity focused on supporting women during pregnancy and postpartum, with e?ortsto enhance the employees' sense of belonging and corporate cohesion while creating a warm and inclusiveworking environment by promoting scienti?c health concepts.
"Caring for Pregnant and Postpartum Women for a Better Health" Theme ActivityCase
Longchuan Kinwong Party Branch's "Caring for Pregnant and Postpartum Women for a Better Health" Theme
Activity
During International Women's Day 2024, the Company's production bases organized a series of themed activities,with the core goal of caring for female employees. The diverse activities strengthened the Company's humanisticcare through festive interactions. These activities focused on enhancing female employees' career happinessand sense of belonging, with ceremonial celebrations enhancing team cohesion. The activities also conveyed thecorporate culture of "respecting female values and creating a harmonious workplace". Furthermore, employees'sharing and media coverage have helped shape a positive corporate image of caring for employees and ful?llingsocial responsibilities, boosting the Company's brand reputation and corporate unity.
International Women's Day ActivityCase
Longchuan Kinwong's Handcrafting ActivityShenzhen Kinwong's Gift-Distributing SiteEmployee Care ActivitiesKinwong has established a diverse employee care system, providing emotional exchange platforms for employeesby organizing activities such as art performances, handcrafting, and collective birthday celebrations during majorholidays. Additionally, the Company has organized Family Open Days and Parent-Child Fun Fairs to extend its careto employees' families. With a cozy work environment and people-oriented management systems, Kinwong hascontinuously enhanced employees' happiness and cultivated a warm corporate culture.
Shenzhen Kinwong's "Dragon BoatFestival and Father's Day" Activity
Longchuan Kinwong's "Rainbow Run"Dragon Boat Festival Activity
Jiangxi Kinwong's "Enjoy Mid-AutumnFestival at Kinwong" Park Visiting
Activity
Ganzhou Kinwong's Summer Tea
Party
"Colorful and Happy SummerVacation" Parent-Child Activity
Shenzhen Kinwong's Parent-Child
Activity
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Kinwong's ISO 45001:2018 OccupationalHealth and Safety Management System
Certi?cation
Creating a Healthy Work EnvironmentKinwong places a high value on occupational health and safety. TheCompany has continuously improved its management system andelevated workplace safety levels across the board by strengtheningresponsibility implementation, optimizing processes, and enhancingtechnical means, thereby ensuring the health and safety of employees.The Company strictly complies with national laws and regulations aswell as its internal systems and procedures, including theSafety Manual,theOccupational Health and Safety Management Manual, theEmergencyResponse Plan for Workplace Safety Accidents, theSafety ManagementObjective System and Management Regulations, theRegulations on WorkplaceSafety Responsibilities, and theRegulations on Safety Hazard Identificationand Recti?cation. These frameworks ensure standardized managementof workplace safety and occupational health in the Company. By theend of the reporting period, Shenzhen Kinwong, Longchuan Kinwong,Jiangxi Kinwong, Zhuhai Kinwong Flexible, and Zhuhai Kinwong havesuccessfully obtained ISO 45001:2018 Occupational Health and SafetyManagement System certi?cation.Occupational Health and Safety Policy
Workplace Safety Management FrameworkKinwong has established a strategic safety management system, with the President and the President's Office atthe core. As the highest decision-making body for occupational health, workplace safety, public security, and ?reprotection, the system coordinates safety governance across the entire industrial chain through regular specialmeetings. To enhance strategy execution, the Company has innovatively established a vertical management systemfor the Workplace Safety Committee across ?ve production bases. The committee systematically implements safetydevelopment strategies through a closed-loop "decision-making–execution–evaluation" mechanism. By integratingtiered management and collaborative governance, the Company has effectively achieved the strategic goals ofpermeating safety responsibility, significantly boosting risk prevention capabilities, and continuously improvingintrinsic safety levels. This has established a model of systematic safety management with demonstration e?ects inthe industry.
Establish a healthy and safe work environment incompliance with legal and regulatory requirements.Continuously improve health and safety risk training anddisseminate health and safety knowledge.Conduct regular reviews to ensure e?ective implementation.
Occupational Health and Safety Work ObjectivesKinwong attaches great importance to the occupational health and workplace safety of its employees and alwaysadheres to the principle of "safety foremost, prevention first, comprehensive management, and harmoniousdevelopment". The Company has made meticulous efforts in prevention, hazard identification, rectification, andeducation. In 2024, the Company set a series of occupational health and safety work objectives.
Occupational Health MeasuresKinwong has systematically advanced occupational health protection through the establishment of a scientifichealth management system. By focusing on prevention, the Company has made coordinated e?orts to optimize theproduction environment and promote health awareness. The Company has developed a multi-dimensional protectionsystem that includes physical protection and knowledge dissemination by regularly conducting occupationaldisease prevention and treatment publicity campaigns, health check-ups, and personalized health guidance. Beyondproviding basic health protection, the Company emphasizes cultivating employees' self-protection awareness andspreading health concepts through both online and o?ine educational models. By continuously improving its closed-loop occupational health management, the Company has e?ectively prevented and controlled occupational hazardrisks, safeguarding employees' health rights and fostering a shared health culture ecosystem between the Companyand its employees. The management model has become an industry benchmark for prioritizing occupational healthof employees. During the reporting period, the Company organized an Awareness Campaign on HIV, STDs, andTuberculosis Prevention and Treatment and an Occupational Health Check-up Campaign.
Key Performance Indicators
New cases of occupational diseases:
Percentage of employees exposed to occupational hazard factorsundergoing occupational health checks:
100%
Implement workplace safety responsibility systems at all levels,reduce accidents, and eliminate serious and major accidents
No ?re or explosion accident throughout the yearCompletion of safety hazard recti?cations:
100%Percentage of employees receiving safetyeducation:
100%
Awareness Campaign on HIV, STDs, and Tuberculosis
Prevention and Treatment
Occupational Health Check-up
Campaign
8990
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTWorkplace Safety Measures
The Company has established clear control objectives for reducing general accidents, controlling major accidents, andeliminating serious and major accidents, along with implementing several workplace safety management measures.
· Major Accident Emergency Response Procedure: The Company activates the emergency rescue plan in accordancewith this procedure and mobilizes internal resources across all departments to manage the situation.· Serious Accident Emergency Response Procedure: The Company activates the emergency rescue plan inaccordance with this procedure and mobilizes internal resources across all departments to manage the situation.At the same time, the Company reports to the higher-level emergency response command department, requestingthe department to initiate the corresponding emergency response plan and pool forces to address the situation.In addition, the Company has established theSpecial Operations Management Systemto regulate hazardous operationsinvolving open ?ames or potential ?re hazards due to high temperatures or sparks. The Company also mandates thatall hazardous operations be reported in accordance with established procedures.
Additionally, the Company has developed an Emergency Response Mechanism to implement a tiered response approach:
Hazardous Operation Reporting ProcessHazardousOperationApplication Form
Submit forinspection andapproval of working
conditions by thesafety inspector
Obtain approvalfrom the GeneralManager or SafetyO?cer
Obtain a work
permit
Start the operation
· Fully implement a workplace safety responsibility system for all employees, sign workplace safety responsibility
agreements with general managers of the factory, department managers, and operators in di?erent positions, andgive rewards and penalties in accordance with the safety performance assessment and reward-punishment system.· Actively communicate with relevant departments, strengthen equipment and facility management, and explore theestablishment of a foolproof interlocking control mechanism for equipment to achieve inherent safety and preventsafety accidents.· Sort out and identify various hazards, establish control measures, and maintain records. Assign speci?c individuals,
positions, and duties for monitoring via signage to ensure no safety hazard.· Implement a system to guarantee workplace safety investments, and ensure the availability of emergency responseteams, emergency equipment and suppliers, firefighting equipment and facilities, and related personnel andmaterials.· Strengthen occupational health management to create a favorable working environment and ensure workplacesafety.· Designate workplace safety management personnel, and refine and enforce the workplace safety responsibility
system for all employees and the system for holding employees accountable for safety accidents.· Enhance workplace safety awareness through publicity and education, and provide ongoing education for all
employees to foster a corporate safety culture focused on safety awareness and the care for life.
Safety Emergency Drills
Safety is the cornerstone of the steady development of an enterprise. Kinwong consistently places safety at the coreand considers emergency drills as a key measure to safeguard employees' lives and ensure stable production. In2024, the Company meticulously organized and successfully carried out several environmental emergency drills,focusing on hazardous chemical spill and fire safety simulations. These drills not only strengthened employees'awareness of prevention but also signi?cantly improved their ability to respond in emergency situations. Throughpractical simulations, employees became familiar with emergency plans and operational procedures in advance,enabling them to act swiftly and e?ectively when faced with real emergencies, thus minimizing the risk of accidents.The Company's systematic and regular drill mechanism has not only bolstered the overall safety level of theenterprise but also provided employees with a safe and reliable working environment, further solidifying Kinwong'sleading position in the industry.
Shenzhen Kinwong organized an Emergency Drill for Confined Space Operations on July 18th, 2024, aimed atstrengthening operation safety management and preventing accidents. This drill focused on maintenance workin confined spaces such as waste liquid reaction tanks and underground sump pits. The drill strictly followedstandardized procedures, with a detailed plan prepared and submitted to the Safety Department for review priorto commencement. Safety measures, such as ventilation, gas detection, and power shut-o?, were implemented.Mandatory ventilation was maintained for over 12 hours during operations, and only certified personnel, afterpassing a quali?ed inspection, were permitted to perform the work. Operators were equipped with protective gearsuch as respirators and safety ropes, and a 30-minute rotation system was implemented under supervision bydesignated personnel. The drill covered the entire process of risk control, strengthening personnel's emergencyresponse capabilities through hands-on training and simulated scenarios. As a result, the safety standards forcon?ned space operations were further standardized, ensuring a safe production environment for the enterprise.
Emergency Drill for Confined Space OperationsCase
Drill Site
IndicatorUnit
Statistical data202220232024
Investment in workplace safetyRMB million19.2525.4349.8727Investment in occupational health
of employees
RMB million1.832.072.5907
Number of employees accepting
safety training
Persons//21,428Duration of safety trainingHours//358,245.5
9192
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
In 2024, the Company conducted hazardous chemical spill and ?re?ghting drills at the Shenzhen headquartersfactory in both the first and second halves of the year. The drill held in June 2024, themed "Clearing LifeChannels", simulated scenarios such as hazardous chemical spills, firefighting, and personnel evacuation.The entire evacuation process was completed in just 5 minutes, with no injury. The volunteer fire brigadedemonstrated the use of fire extinguishers, escape masks, and first aid measures, providing employees withhands-on practice in early ?re suppression and cardiopulmonary resuscitation (CPR). During the drill, under fullcommand of the leadership, the emergency response plan was executed e?ciently, and equipment functionedproperly, validating the scienti?c e?ectiveness of the plan and the team's ability to collaborate. However, someemployees showed laxity during the evacuation, and some performed non-standard firefighting operations.To address these issues, targeted safety training will be enhanced moving forward. This drill heightenedemployees' emergency awareness, raised the overall safety and prevention level of the enterprise, and laid asolid foundation for future emergency response.
Hazardous Chemical Spill and Firefighting DrillCase
Gas Defense Emergency Drill CPR Emergency Drill
Hazardous Chemical Spill Emergency ResponseFire?ghting Drill
Social Contributions and FeedbackKinwong remains dedicated to the core principle of giving back to society by actively ful?lling its social responsibilities,aligning with national development strategies, integrating into local growth, and driving social progress. Through itsinvolvement in ecological development, educational support, rural revitalization, and other public welfare initiatives,the Company is committed to fostering a win-win development between the enterprise and society.Public Welfare ActivitiesKinwong actively promotes the concept of public welfare, consistently spreading warmth to society and giving backthrough community service, charitable donations, and support for people with disabilities. At the same time, theCompany places great emphasis on cultivating employees' awareness of public welfare, fostering a culture of givingthrough concrete actions.Key Performance IndicatorsDuring the reporting period, the Company invested in public welfare with a total of RMB
2.98 million.
Tree planting and increasing greenery coverage are
key initiatives to implement the concept of "green
development, circular development, and low-
carbon development" in Nanshui Town, Jinwan
District, Zhuhai City. As an enterprise with the
most growth potential in Nanshui Town, Zhuhai
Kinwong upholds the principle of "jointly building
a sound ecosystem and a low-carbon future",
actively spreading positive energy for green
development. In March 2024, the Chairman of the
Labor Union and Party Branch members of Zhuhai
Kinwong, along with representatives of active
applicants for Party membership, participated in a
tree planting event organized by the Social A?airs
Service Center of Nanshui Town under the theme
of "Building a Greener Ecosystem for Guangdong".
Employees worked together to dig, plant, and
water the trees, successfully planting 200 saplings.
This event strengthened employees' awareness
of environmental protection and responsibility,
and actively contributed to the development of
ecological civilization.
Participating in Tree Planting to Support Ecological Development
Case
Tree Planting Event
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
On China's 34th national day of assisting disabled persons, May 19th, 2024, Longchuan Kinwong donated RMB50,000 to the Longchuan Disabled Persons' Federation under the theme of "Supporting People with Disabilitiesfor a Shared and Pleasant Life", demonstrating its commitment to actively ful?lling social responsibilities. Thecharity funds were managed by the Longchuan Charity Federation to support programs that assist individualswith disabilities. This donation not only conveyed the Company's care and compassion but also highlighted itssocial mission and dedication to the community.
Supporting People with Disabilities for a Shared and Pleasant LifeCase
In response to the blood supply shortage in Zhuhai,the Company organized a voluntary blood donationevent at the Zhuhai Kinwong Flexible Labor UnionActivity Center in October 2024. Prior to the event,the Company promoted blood donation awarenessamong employees through posters and educationalvideos. On the day of the event, employees underwentphysical exams and completed the blood donationprocess in an orderly manner, with 81 employeesdonating a total of 25,950 milliliters of blood. Thisinitiative demonstrated the Company's commitmentto social responsibility, spreading love, andcontributing to the creation of a harmonious society.
Spreading Love through Charitable Blood DonationCase
Token of Gratitudefrom the ZhuhaiCentral Blood StationVoluntary Blood DonationEvent
Rural Revitalization
Kinwong deeply understands that the key to rural revitalization lies in talent, and its core focus is on industries.Through charitable donations, infrastructure development, and industrial investments, the Company has made non-targeted assistance e?orts to support rural development, improve the quality of life for residents, and promote socialharmony and stability, injecting strong momentum into rural revitalization.
In alignment with its business philosophy of "peopleforemost, manufacturing competitive products, expandingthe enterprise, and repaying the society", the Companyresponded to national and local government calls for ruralrevitalization in December 2024 by donating RMB 100,000to Gaozhu Village, Hushi Town, Chishui City, Zunyi forinfrastructure construction and maintenance. Additionally,the Company actively supported the "Hundred, Thousand,and Ten Thousand Project" championed by the CPCGuangdong Provincial Committee, aimed at fosteringhigh-quality development in one hundred counties, onethousand towns, and ten thousand villages. To this end,the Company donated RMB 50,000 to the Nanchang VillageCommunity Park and coastal line improvement project ofNanshui Town. These initiatives provided strong supportfor rural revitalization.
Infrastructure Donation to Promote Rural Revitalization
Donation for Nanchang Village Development
Project
In June 2024, Zhuhai Kinwong responded positively to thedistrict's poverty alleviation e?orts by sending 160 sets ofschool supplies in packages to primary school students inHuangtao Village, Guandian Town, Xishui County, GuizhouProvince. This donation provided essential learning toolsto children in poverty-stricken areas, helping improve theireducational conditions. It also showcased the Company'sstrong commitment to fulfilling its social responsibilityand supporting educational poverty alleviation.
Donating Stationery to Assist Underprivileged Children's Education
Sending School Supplies to Underprivileged
Children
Longchuan Kinwong Supporting Rural
Revitalization
On the 15th Guangdong Poverty Relief Day on June 28th,2024, Longchuan Kinwong actively leveraged its positiverole as a local enterprise and participated in the "6·30" ruralrevitalization event in Heyuan City, Guangdong Province,donating RMB 2 million to support rural revitalization.Longchuan Kinwong has participated in the "6·30" GuangdongPoverty Relief Day event for seven consecutive years, with atotal donation of RMB 8 million. These funds have been usednot only for poverty alleviation but also for disaster relief,education, healthcare, culture, and sports, continuouslycontributing to the harmonious development of society.
Longchuan Kinwong donated RMB 2 Million on "6·30" Guangdong Poverty Relief DayCase
Case
Case
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Environmental
Guided by the environmental philosophy of "implementing clean production tobuild beautiful parks", Kinwong remains committed to the original mission ofdriving green transformation by embedding green and low-carbon transition intoits core development strategy. The Company advances this commitment throughvarious actions, including propelling green design and manufacturing, continuouslyimproving production technologies and processes, strictly controlling toxic wasteemissions, and encouraging green lifestyles. By actively reducing environmentalimpacts, improving resource utilization e?ciency, and advancing green developmentacross the board, Kinwong contributes meaningfully to the industry's green transitionand global ecological progress.
Environmentally Friendly and Green InnovationEnvironmental Management System
Kinwong consistently upholds the environmental management policy of "complying with environmental laws andregulations, conserving energy, reducing energy consumption and waste, ensuring clean and safe production,pursuing continuous improvements, and building a green homeland". To strengthen the internal control andmanagement of environmental issues across the Company and its branches and subsidiaries, and to ensurelegal and compliant environmental practices, the Environmental Management Department has developed acomprehensiveEnvironmental Management Manual. The manual covers all key environmental managementareas, including wastewater treatment, waste gas pollution control, hazardous waste management, monitoringfacilities management, environmental safety management, and production workshop environment management.It has been implemented across all production bases to ensure legal and compliant environment management,e?ectively enforce the Company's environmental policies and advance progress toward its strategic developmentgoals. Additionally, branches and subsidiaries have developed a set of tailored management measures in keyenvironmental management areas based on their operational realities, and rigorously follow the annual keyenvironmental objectives to ensure the successful implementation of all tasks.
Throughout the year, the Environmental Management Department developed anInternal Control ManagementManual for the Environmental Management Departmentunder the leadership of the Audit and SupervisionDepartment to further standardize environmental risk management processes and continuously improveenvironmental management practices. Furthermore, the Company mandates that each responsible unit andindividual for pollutant discharge implement an environmental protection management target responsibility system.Each year, the Environmental Department of each base organizes factory heads to sign theEnvironmental ProtectionManagement Target Responsibility Agreement, ensuring the e?ective implementation of primary responsibilities forenvironmental management at all levels.The Company adheres to the principle that "everyone is accountable for their actions, with penalties appliedaccording to their responsibilities" in its environmental management work, enforcing a strict reward and penaltysystem as outlined in theReward and Penalty Management Measuresand linking it to performance evaluations.The Company recognizes and rewards individuals and teams that contribute to environmental management whiletaking their performance into account during onboarding, probation, job leveling, award evaluations, and promotionassessments. Employees found responsible for environmental incidents caused by serious dereliction of duty orviolations (such as legal, regulatory, or disciplinary breaches) will be subject to criticism or even penalties. In cases ofviolations of environmental laws and regulations, legal responsibility will be pursued through the judicial authorities.
Key AreasList of Internal Regulations (Examples)Emission Management
Operating Procedures for Wastewater and Waste Liquid Treatment, Air Pollution Prevention andControl Procedures, Waste Treatment Procedures, Operating Procedures for Wastewater and WasteLiquid Discharge in Production Workshops, Testing Procedures in Water Treatment WorkshopsNoise ManagementNoise Pollution Prevention and Control ProceduresSoil ProtectionSoil Pollution Prevention and Control Procedures
Environmental Safety
Environmental Inspection Procedures, Environmental Emergency Response Procedures, ManagementProcedures for Con?ned Space Operations, Management Procedures for Environmental Workshops
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Base Name
ISO 14001EnvironmentalManagementSystemCerti?cation
ISO 50001 Energy
ManagementSystemCerti?cation
ISO 14064GreenhouseGas EmissionVeri?cationStatement
ISO 14067Product CarbonFootprintCerti?cation
UL 2799EnvironmentalClaim ValidationProcedure forZero Waste to
Land?llShenzhenKinwong
PassedPassed
Passed, witha reasonableassurance level
PassedPassed (Platinum)JiangxiKinwong
Passed
To be passed in2025
Passed, witha reasonableassurance level
Passed/
Zhuhai Kinwong
Flexible
Passed
To be passed in
2025
Passed, witha reasonableassurance level
/Passed (Platinum)
ZhuhaiKinwong
PassedPassed
Passed, witha reasonableassurance level
Certi?cation inprocess
Passed (Platinum)
LongchuanKinwong
PassedPassed
Passed, witha reasonableassurance level
/Passed
Environmental Compliance Audit and System CertificationThe Audit and Supervision Department conducts an annual audit of the Environmental Department at each productionbase in strict accordance with theInternal Control Management Manual for the Environmental ManagementDepartment. The audit focuses on the environmental management operation process, pollution control levels,environmental protection training, and other aspects, aiming to continuously improve the environmental managementsystem. Meanwhile, the Company has actively promoted the environmental management system certi?cation across itsproduction bases. The Jiangxi Kinwong PCB Factory was certi?ed as a "National Green Factory" and was awarded the"Waste-Free Factory" by Ji'an. Shenzhen Kinwong also won honorable titles such as "2023 Green Manufacturing andEnvironmental Protection Excellence Enterprise" and "Environmental Integrity Enterprise".Certifications Received by Kinwong by the End of 2024
Kinwong's Production Bases Passed ISO 50001 Energy Management System Certi?cation
Kinwong's Production Bases Passed ISO 14064 Greenhouse Gas Emission Veri?cation Statement
Kinwong's Production Bases Passed ISO 14001 Environmental Management System Certi?cation
Key Performance IndicatorsDuring the reporting period, the Company recorded administrative penalty for environmental incidents fromthe Ministry of Ecology and Environment and other relevant departments:
. All waste gas and wastewaterwere treated to meet standards before being discharged or reused, and all waste materials were disposed ofor recycled in compliance with regulations.
99100
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTEnvironmental Management StructureKinwong remains committed to unifying environmental management standards and energy management criteria,continuously improving the environmental and energy management systems, increasing resource utilization e?ciency,and working to achieve the goal of standardized environmental management and meet all energy-saving andconsumption reduction targets. All these e?orts aim to facilitate the Company's strategic goal of "carbon neutrality".To support the aforesaid initiatives, the Company established an Environmental Management Department during thereporting period. The President of Kinwong serves as the highest responsible person for environmental management,while the Environmental Management Department is responsible for planning and coordinating environmentalmanagement, energy management, and public energy resource systems across the Company. It also undertakes theCompany's environmental management responsibilities and the implementation of the carbon neutrality strategy,continuously strengthening the Company's environmental management capabilities. Each production base has anEnvironmental Management Department, responsible for overseeing environmental management at the respectivebase. The department also implements the Company's environmental protection strategy and addresses thespeci?c needs of the factory's production operations, ensuring that the base's environmental practices comply withenvironmental laws and regulations and maintain environmental safety. Furthermore, the Company has established asecond-tier department for energy management, responsible for managing the Company's energy, planning the publicenergy resource system, and organizing and implementing the Company's strategic plan for carbon neutrality.
Environmental Performance GoalsKinwong is committed to the environmental sustainability management goal of "peaking carbon emissions by 2025and achieving carbon neutrality by 2050". To ful?ll this commitment, the Company tracks, evaluates, and updatesits short-term, mid-term, and long-term environmental performance goals annually, demonstrating its ambition andproactive e?orts to stay aligned with the trends of carbon emission reduction in the new era.
Kinwong’s “Dual Carbon” GoalsGoal Setting
Short-Term, Mid-Term, and Long-Term Plans
Speci?c ContentProgress
Overall GoalsPeaking carbonemissions
2025
Peak carbon emissions(Scope 1 and Scope 2)
Third-party carbon veri?cation shows that theGroup’s carbon emissions reached the peak
in 2024 (Scope 1 and Scope 2).Achieving carbonneutrality
2050
Achieving carbon neutrality(Scope 1 and Scope 2)
By gradually increasing the use of clean energy,purchasing I-RECs, and continuing to investin energy-saving and technological upgradinge?orts, the goal of achieving operationalcarbon neutrality by 2050 is progressing.Breakdown of GoalsCompleting the settingof SBTi science-basedtargets
2024
Completing the setting of science-based targets by 2024
Kinwong applied for SBTi in October 2024.Currently, the commitment has beensubmitted on the SBTi website. Target setting
will be completed in 2025.Achieving green supplychain certi?cation
2024
Achieving green supply chaincerti?cation by 2024
Shenzhen Kinwong completed the GreenSupply Chain certi?cation and was publiclylisted on the Ministry of Industry andInformation Technology’s o?cial website on
December 30th, 2024.Achieving ISO energymanagement systemcerti?cation
2025
Achieving ISO energy managementsystem certi?cation by 2025
/Achieving carbonneutrality across thesupply chain
2050
Working with key suppliers toachieve carbon neutrality by 2050,in alignment with Kinwong’s goals(Scope 1 and Scope 2)
/Speci?c Action GoalsCarbon peaking2023-2025
Expanding production capacity andachieving carbon peaking by 2025
Third-party carbon veri?cation shows that theGroup’s carbon emissions reached the peakin 2024 (Scope 1 and Scope 2).
Phased goals of carbonemission reduction
2026-2035Reducing carbon emissions by 40%/2036-2040
Achieving a 7% reduction in annualcarbon emissions annually
/2041-2045
Achieving a 13% reduction inannual carbon emissions annually
/2046-2050
Reducing carbon emissions by20% annually, based on the 2045
baseline
/
Organizational Structure of Kinwong's Environmental Management Department
PresidentEnvironmental Management DepartmentEnvironmental
ManagementDepartment of
ShenzhenKinwong
Environmental
ManagementDepartment of
LongchuanKinwong
Environmental
ManagementDepartment of
JiangxiKinwong
Environmental
ManagementDepartment of
GanzhouKinwong
Environmental
ManagementDepartment of
ZhuhaiKinwong
Environmental
ManagementDepartment ofZhuhai Kinwong
Flexible
EnergyManagementDepartment
Environmental Management OfficeThree-Waste Treatment TeamThree-Waste Treatment Team 1Three-Waste Treatment Team 2Waste Liquid Recycling TeamEnvironmental Management OfficeEnvironmental Management OfficeEnvironmental Management OfficeEnvironmental Management OfficeEnvironmental Management OfficeThree-Waste Treatment TeamThree-Waste Treatment TeamThree-Waste Treatment TeamThree-Waste Treatment TeamWaste Liquid Recycling TeamWaste Liquid Recycling Team
Additionally, the Environmental Department at each production base sets annual environmental management indicatorsand corresponding commitment targets based on departmental planning and actual production operations. Theseindicators and targets cover areas such as environmental inspections of factory, compliance rates of three-waste treatment,major environmental incidents, and environmental protection training, and are summarized and reported at the end of theyear. During the reporting period, the environmental performance goals for each production base were basically achieved.
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Environmental Risk ManagementTo further strengthen environmental risk control, the Company has developed systems such as theEnvironmental FactorsRegistration and Evaluation Formand theHazard Identification, Evaluation, and Risk Classification Control List. Byregularly identifying and reviewing environmental risk factors, evaluating their impact, and compiling a list of signi?cantenvironmental factors, the Company formulates targeted risk control measures, continuously enhancing its environmentalrisk management capabilities.Moreover, the Company and its branches and subsidiaries have strictly formulated theContingency Plan forEnvironmental Emergenciesin strict compliance with theMeasures for the Environmental Emergency ResponseManagement, theMeasures for Filing Management of Contingency Plans for Environmental Emergencies in Enterprisesand Public Institutions (Trial), theLaw of the People's Republic of China on Work Safety, and theRegulation on the SafetyManagement of Hazardous Chemicalsto establish and improve its environmental emergency response mechanismand to handle such emergencies in a timely, orderly, efficient, and proper manner. The Company regularly conductsenvironmental risk assessments, identi?es and addresses potential environmental risks, and actively organizes emergencytraining and exercises. These e?orts e?ectively improve the ability of employees to handle environmental emergenciesand collaborate e?ectively, strengthening the Company's overall environmental risk prevention and control.
The 2024 Heyuan Environmental Emergency Drill was held on December 13th, 2024 in Longchuan County, withLongchuan Kinwong participating as the organizer. The drill was conducted through "on-site simulated scenarios" andaimed to test the joint response capability of municipal and county ecological environment departments, as well asindustrial enterprises. In the drill scenario, Longchuan Kinwong was involved in an incident where a driver mistakenlydrove a vehicle into a storage tank area during the transfer of copper-containing waste liquid. The incident resulted inthe destruction of the tank containment berm, leading to signi?cant leakage of copper-containing waste liquid. Some ofthe liquid directly contaminated the ground, while a portion ?owed into the stormwater drainage system. The copper-containing waste liquid emitted high concentrations of ammonia, and due to inadequate protection, the operatorinhaled the toxic fumes, leading to di?culty breathing and eventually collapsing unconscious on the ground.Longchuan Kinwong, in collaboration with the municipal and county ecological environment departments, simulatedthe entire environmental emergency response process, including information reporting and notification, activationof the contingency plan, pollution disposal during emergency response, emergency monitoring, external rescueoperations, and post-incident handling. With full cooperation from the environmental emergency command members,the incident was handled effectively, and the drill was successfully concluded. The systematic and comprehensiveapproach to this environmental emergency response signi?cantly enhanced Longchuan Kinwong employees' practicalemergency handling capabilities, playing a positive role in e?ectively mitigating various environmental risks.
Longchuan Kinwong Hosts Environmental Emergency Drill in HeyuanCase
Environmental Emergency Drill Site
Environmental Protection TrainingThe Environmental Management Department of Kinwong's branches and subsidiaries strictly comply with therequirements of theEnvironmental Management Manualand develop an environmental training plan annually.Monthly, at least one environmental training session is held for all employees, conducted in formats such as face-to-face training and on-site demonstrations. Training topics include improving job operation skills, equipmentmaintenance procedures, environmental protection knowledge explanation, behavior norms, and job safetyrisk management. Training courses include emergency drills on confined space operations and the standardizedmanagement of general solid waste and hazardous waste. The e?ectiveness of the training is tested through examsor on-site Q&A sessions.
Toxic Emissions and Circular Economy
Kinwong places great emphasis on managing emissions and waste to minimize environmental impact during itsoperations. Strict management standards have been established, and various measures are in place to disposeof wastewater, waste gases, hazardous waste, and general industrial solid waste in compliance with nationalenvironmental protection laws and regulations and the Company's sustainable development goals.
Three-Waste Treatment
In terms of wastewater treatment, the Company monitors water consumption on a monthly basis and directs thewastewater generated at its production bases to municipal wastewater and industrial wastewater treatment systemsto ensure that discharges meet regulatory standards and reduce pollution of surrounding water bodies.Regarding waste gas treatment, the Company employs advanced puri?cation equipment and technologies to treatwaste gas effectively and conducts regular monitoring of emissions to ensure compliance with related dischargestandards.
Key Performance IndicatorsDuring the reporting period, the Company and its branches and subsidiaries conducted training sessions onenvironmental protection:
.
Jiangxi Kinwong optimized its waste gas treatmentprocess in 2024 by upgrading the treatment process forsome organic waste gas treatment towers from "waterspraying + demister + UV photolysis + activated carbonadsorption" to a more efficient biological method,achieving a removal rate of waste gas of 90% andsignificantly lowering volatile organic compound (VOC)concentrations. The emissions were monitored by athird-party testing agency, con?rming that the dischargemet national standards.
Jiangxi Kinwong Optimized the Waste Gas Treatment Process
Jiangxi Kinwong's Efficient Biological Waste Gas Treatment
Method
103104
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTAs for hazardous waste management, the Company strictly complies with relevant laws and regulations to classify,store, and treat hazardous waste while entrusting professional disposal companies or facilities for safe disposal,thereby avoiding environmental and health hazards.Targeted at general industrial solid waste, the Company implements classification, storage, and treatment,promoting waste reduction, resource recovery, and recycling to minimize the negative environmental impact.
Jiangxi Kinwong actively responds to the government's clean production policies that promote reduction atthe source, resource recovery, and harmless disposal of solid waste. The Company has reduced the volume ofoutsourced solid waste disposal by internally recycling copper-containing waste liquid, acid/base etching liquids,and tin-containing waste liquids, thereby reducing solid waste generation at the source and achieving solid wasterecycling.
Highlighted Solid Waste Recycling Projects at Certain Production Bases
Jiangxi Kinwong's Copper-Containing Waste Liquid
Recycling
Jiangxi Kinwong Tin-Containing Waste Liquid RecyclingIn 2024, Longchuan Kinwong recycled 14,320.24 tons of copper-containing waste liquid, 169.76 tons of de-tinningwastewater, and 3,487 tons of waste acid in its waste liquid resource recycling workshop.
Circular Economy
Water Resource Management
Low-carbon development is one of the key initiatives for high-quality development in China today. The Companyfully promotes the concept of green o?ce practices, including the use of Huawei Cloud for remote work. LongchuanKinwong held a low-carbon environmental work exhibition where employees created handmade artworks fromwaste materials and eco-friendly materials. This activity aimed to encourage a green, environmentally friendlylifestyle and reduce waste among employees. A total of 800 employees participated. Additionally, a waste recyclingstation was set up on-site, where employees could drop o? recyclable materials like plastic bottles and cardboard. Inreturn, they received succulent plants, turning waste into greenery and deepening the environmental consciousness.
Kinwong recognizes the importance of water resource conservation. In strict compliance with theWater Law ofthe People's Republic of China, the National Water Conservation Action Plan, and local laws and regulations, theCompany has established a comprehensive system that includes water conservation management regulations, waterconservation statistics regulations, and water-saving reward and penalty regulations. These regulations are all partof our e?orts to advance the building of a water-saving enterprise and promote the scienti?c use of water resources.Through key management initiatives such as surveys on water-using materials, water supply and drainage pipelinenetwork inspections, maintenance and renovation of water appliances, water balance tests, enhanced water-savingmanagement systems, water-saving awareness promotion, and daily inspections, the Company has establishedand improved the long-term water-saving mechanism that e?ectively reduces water intake and consumption andimproves water resource utilization e?ciency. During the reporting period, each base met its set quantitative water-saving targets. Zhuhai Kinwong passed the city's water-saving enterprise assessment, and Jiangxi Kinwong receivedthe honorable title of "Provincial Water-Saving Benchmark Enterprise".
Kinwong's Environmental Awareness Promotion Bulletin Board
Improving Resource Utilization Efficiency
The Company continues to integrate the sustainable development concept into the entire production andoperation process. By re?ning water resource and material use management requirements, the Company promotesstandardized and systematic management practices, aiming to improve resource utilization efficiency acrossproduction and operations and to implement a green development philosophy.
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2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Renewable Resources Management
Key Water-Saving Projects at Production Bases
The PCB inner-layer etching line adopts a multi-stage over?ow method, saving an average of 450m? of tap water permonth after developing and stripping.
Longchuan Kinwong
Zhuhai Kinwong and Jiangxi Kinwong
Shenzhen Kinwong
The MPCB factory's grinding line uses MBR membrane-based waterreuse technology for water conservation, which does not require anychemical additives. The wastewater reuse rate for this production lineis up to 95%, with unlimited cycles of reuse.
The reclaimed water system uses a mechanical filtration + ROmembrane system technology, which is energy-efficient, high-performance, pollution-free, and practicable. This system processeswastewater generated from various production lines, waste gastowers, and A-class warehouses as well as the concentratedwater produced by the pure water station, and reuses the treatedwastewater for production in production lines like HLC and SLP, andfor cooling in the air compressor cooling towers at the SLP factoryand the rooftop cooling towers.
Climate Governance and Low-Carbon TransformationClimate change is one of the most pressing challenges facing the world today. Kinwong deeply recognizes the far-reaching impact of climate-related risks and opportunities, both on its business and the entire industrial chain.Therefore, the Company is committed to driving a clean and low-carbon energy transformation in its production andoperations. Additionally, it focuses on developing scienti?c and e?ective response measures to proactively addressclimate change through a systematic analysis of the risks and opportunities it presents, thereby contributing toglobal sustainable development.
Risk and Opportunity Management
Governance
In developing its carbon management system, Kinwong considers both internal and external factors, as well asmeteorological and environmental needs and expectations, to ensure the achievement of anticipated results andcontinuous improvement. In risk classification, the Company focuses on strategic planning, operations, finance,market, legal, and credit risks, including challenges in policy environments, supply chain management, ?nancingchannels, and market competition. To mitigate these risks, the Company strives to prevent adverse impacts, improvecarbon management performance, and continuously enhance the carbon management system to address thechallenges posed by climate change.
The Company has established an organizational structure and working mechanism for the greenhouse gas emissionsmanagement system, with responsibilities covering the management of climate-related matters and the integration ofclimate-related risks into the overall risk management framework of the Group.The management representative of the Environmental Management Department of the Company plays a leading role inclimate change issue management and reports to the Board of Directors at least once per year on greenhouse gas emissionstargets, climate assessments in the value chain, and the identification of climate risks and opportunities. The energy-saving and consumption-reduction task force, acting as the executive body, is responsible for coordinating all departments,factories, as well as branches and subsidiaries to comprehensively implement climate change issue management.
Kinwong's Climate Risk Identification and Response
Risk TypeRisk ItemRisk Description and ImpactResponse Strategy
PhysicalRisks
Acute Risks
Extremeweatherevents such astyphoons andheavy rain
Extreme weather events may damagefactory buildings, o?ce buildings, andequipment, interrupt operations, andcause asset loss.Product production and timely deliverymay be impacted by equipmentmalfunctions, employees being unableto work, and transportation disruptions,leading to increased operational costs.
·Identify possible asset damages,with necessary insurance covered.· Continuously improve the naturaldisaster emergency responsemechanism, stock emergencysupplies, strengthen safety checks,implement emergency responseplans for extreme weather events,and conduct regular emergencydrills.Chronic Risks
Rising sea
levels
Entities operating in coastal areas needto relocate to inland regions, resultingin increased production costs due todamage to ?xed assets or their prematurescrapping.
· Avoid choosing low-lying areas when
expanding locations.
· Ensure complete ?re safetyequipment, conduct ?re safety drillsand training, and raise employees’safety awareness and preparedness.IndicatorUnit2022 2023 2024
Recycled packaging materialsTons10,872.5510,750.1718,662.04
Kinwong takes it upon itself to develop a green circular economythrough sustained efforts in the recycling and reuse of wasteand used materials, such as raw and packaging materials. TheCompany has formulated theRecycled Resources ManagementRegulationsand established a Recycled Resources ManagementDepartment, responsible for the full-process management of wasteand used materials covering collection, transport, storage, energyconservation, emission reduction, disposal, and substitution. Bygathering rational suggestions for the recycling of waste and usedmaterials or material substitution across all factories, and evaluatingthe feasibility and benefits of resource utilization, the Companycontinuously improves resource utilization e?ciency, reduces wastegeneration, and promotes the development of a circular economy.
Recycle and reuse used cardboards
107108
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTWhile facing climate-related risks, Kinwong has also taken active moves to identify climate-related opportunities thatcan provide new momentum and development directions for its sustainable growth. By e?ectively managing risksand seizing opportunities, the Company aims to enhance its competitiveness and lay a solid foundation for long-term sustainable development.Kinwong's Climate Opportunity Identification and ResponseOpportunity TypeOpportunity Description and Impact
New Market Demand
With the increasing demand for renewable energy and energy-e?cient products in society,the Company can expand its market share by launching environmentally friendly products.This allows the Company to meet consumer demand for green products, gaining a largercompetitive advantage in the market.
New Technological Innovation
By investing resources in environmental technology research and development, theCompany can develop new green technologies and solutions. These innovations not onlymeet market demand and enhance the competitiveness of products but also help Kinwongadapt to the challenges brought by climate change better in the future.
New Business Models
The Company explores new business models such as the circular economy and sharingeconomy to o?er more environmentally friendly and sustainable products and services. Thiswill help Kinwong continuously reduce resource consumption, lower carbon emissions, andmeet the growing consumer demand for environmental sustainability, thereby achievingsustainable development.
Indicators and TargetsKinwong's "dual carbon" goals are developed based on internal carbon inventory and external carbon veri?cationresults, as well as the tracking and analysis of national "dual carbon" policies. Carbon emission measurementsare calculated using internationally recognized standards, including the GHG Protocol and ISO 14064-1. For thepast three years, the Company has conducted corporate greenhouse gas emission verifications. In 2024, third-party institutions were hired by each production base to verify their greenhouse gas emissions data for the year of2023. This helps identify greenhouse gas emission hotspots and set scientifically-based reduction targets, whileformulating e?ective reduction measures to jointly achieve the Company's long-term goal of carbon neutrality by2050.In addition, the Company recognizes that enhancing corporate awareness through measurement and informationdisclosure is crucial for e?ectively managing carbon emissions and climate-related risks. The Company has activelyparticipated in the Science-Based Targets initiative (SBTi) and made a commitment to SBTi targets while engaging inthe Carbon Disclosure Project (CDP) to make contributions to low-carbon development.
Risk TypeRisk ItemRisk Description and ImpactResponse Strategy
Physical
Risks
Chronic Risks
Risingtemperatures
Higher temperatures may requireadditional cooling equipment, increasingoperational costs.Employees may struggle to workoutdoors for extended periods in high-temperature seasons, which may a?ectoperational e?ciency.
·Scienti?cally schedule productionplans, organize production e?ciently,and enhance operational e?ciency.Long-termdrought
The resulting water shortage may impactoperational stability.
· Avoid building factories in areas withhigh water supply risks, and continuepromoting water-saving initiatives.
TransitionRisks
Policy and LegalRisks
Stringent
carbonemissionmanagementpolices andregulations
The government has introduced stricterpolicies and regulations to mitigateclimate change. This increases thecompliance burden on businesses andmay lead to a rise in related lawsuits orclaims.Carbon emission trading in China hasadopted a carbon pricing system,resulting in higher operational costs forbusinesses.
· Keep track of carbon emissionpolicies and regulations in businesslocations to respond e?ectively tochanges in policies and laws.· Actively promote energy-saving andemission-reduction initiatives andincrease the share of clean energy.
TechnologicalRisks
Transition tolow-carbontechnologies
Investment in low-carbon technologymay fail.Failure to identify and apply low-carbontechnologies may result in the Companyfalling behind industry peers in the low-carbon transformation of products.
· Improve R&D capabilities throughtalent cultivation and retention.· Continuously research and applylow-carbon technologies andactively engage in industrialcollaboration.· Use energy-e?cient productionequipment, optimize productionprocesses, and explore energy-savingand emission-reduction projects toreduce energy consumption.
Market Risks
Rising rawmaterial costs
Raw material and energy costs mayincrease.The Company may fail to meet consumerdemand for green, low-carbon products.
· Build an intelligent energycloud platform, implementprice forecasting and energymonitoring analysis, and enhanceenergy management and controlcapabilities.；· Actively develop green, low-carbonproducts to meet consumer demand.
· Continue promoting resource-savinginitiatives.
ReputationRisks
There is
increasingpublic attention
on theCompany’sperformancein sustainabledevelopment.
Negative feedback from stakeholdersmay occur if the Company performspoorly in addressing climate change andsustainability.
· Actively disclose climate-related
risks, opportunities, and responsemeasures.
· Set energy-saving and emission-
reduction management targets andregularly monitor progress.
· Increase transparency in relevant
management and actively respondto stakeholder inquiries.
109110
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTKinwong's GHG Emissions from 2022 to 2024
IndicatorUnit20222023
2024
Total GHG emissions(Scope 1 + Scope 2 + Scope 3)
Tons of CO
equivalent(tCO
e)
546,674786,2931,382,067Direct emissions(Scope 1)
Tons of CO
equivalent(tCO
e)
16,59418,78220,850Indirect emissions(Scope 2)
Tons of CO
equivalent(tCO
e)
530,080399,141401,222Scope 3
Tons of CO
equivalent(tCO
e)
/368,370959,994
Note：
1. The Company adjusted the 2023 GHG emission factor using the 2021 national average CO
emission factor published by theMinistry of Ecology and Environment, which is 0.5942 tCO
/MWh, excluding electricity generated from non-fossil energy frommarket trading. The 2023 GHG emissions were recalculated based on this factor.
2. The Company adjusted the 2024 GHG emission factor using the 2022 national average CO
emission factor published by theMinistry of Ecology and Environment, which is 0.5856 tCO
/MWh, excluding electricity generated from non-fossil energy frommarket trading. The 2024 GHG emissions data were veri?ed by a third party.
3. The increase in Scope 3 GHG emissions data in 2024 is attributed to the following facts: 1) Jiangxi Kinwong's Factory 3 was put into
production in 2024, which increased the 2024 GHG emissions data calculation boundary compared to 2023; 2) In 2024, Scope 3GHG emissions included 15 categories, 6 more than that in 2023.
Energy-Saving Equipment and TechnologiesKinwong prioritizes improving energy e?ciency and actively adopts various energy-saving measures to reduce fossilfuel consumption and greenhouse gas emissions. Each production base has launched multiple energy efficiencyimprovement projects by actively optimizing and upgrading energy-saving equipment and transforming into energy-saving technologies, such as introducing variable frequency permanent magnet synchronous motors, high-e?ciencypermanent magnet blowers, high-e?ciency air compressor units, and AI-controlled air conditioning systems. TheCompany has also carried out energy-saving technology renovations, such as the energy-efficient improvementproject and waste heat recovery project for air compressors, witnessing a notable increase in energy efficiency.During the reporting period, the Company and its branches and subsidiaries invested approximately RMB 25.45million in energy-saving initiatives, yielding signi?cant energy-saving results.
Key Energy-Saving and Consumption-Reduction Projects at Kinwong's Production Bases in 2024
Zhuhai Kinwong
In March 2024, the SLP horizontal production line drying section replaced traditional blowers with permanentmagnet variable frequency centrifugal blowers, which are lightweight and energy-e?cient and consume lesselectricity. The 30 horizontal production lines saved about 120,000 kWh of electricity per month, representinga 52% reduction in energy consumption compared to that before equipment optimization and upgrade.In November 2024, the HLC factory replaced traditional coil-type dust collectors with high-frequencyintegrated dust collectors, achieving a 30%-40% reduction in energy consumption.Zhuhai Kinwong Flexible
In April 2024, an energy-saving improvement project for air compressors was carried out by replacingconventional screw compressors with variable frequency air compressors, avoiding energy waste fromunloading frequency converters. The average monthly energy consumption decreased by 30.9% compared topre-optimization.In April 2024, a waste heat recovery project for air compressors was implemented, adding heat exchangers tocollect and convert heat generated by air compressors into usable energy, achieving an energy-saving rate of25% while eliminating the safety risks of electric heating.In September 2024, a direct welding process was introduced, using laser welding equipment to replacetraditional re?ow soldering, saving approximately 143,000 kWh of electricity annually.
Longchuan Kinwong
In June 2024, the FPC Factory 2 replaced traditional three-phase asynchronous motors with variable frequencypermanent magnet synchronous motors for the circulating water pump, saving 68,000 kWh of electricity permonth.
Unit: Tons of CO
equivalent (tCO
e)
Trend Chart of Kinwong's GHG Emissions from 2022 to 2024 (Scope 1 + Scope 2)600,000500,000400,000300,000200,000100,000
2022
546,674
2023
417,923
2024
422,072
111112
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTUse of Clean EnergyKinwong has been committed to exploring and expanding emission reduction through multiple pathways,continuously advancing its initiatives to use clean and green energy. During the reporting period, the Companysuccessively launched the integrated photovoltaic, energy storage, and power consumption project and thephotovoltaic power generation project, while promoting distributed photovoltaic projects, with a goal of installing15 MW of photovoltaic capacity by 2026. With these e?orts, the Company has signi?cantly reduced greenhouse gasemissions, playing an exemplary and demonstrating role in the sustainable development of industries and society.Additionally, the Energy Management Department of the Company has carried out centralized procurement of I-RECsbased on the Company's strategic deployment, actual electricity consumption, and customers' carbon reductionneeds. The green electricity consumption corresponding to the I-RECs purchased was 141,950 MWh, accounting forapproximately 17.5% of the Company's total electricity consumption.
On September 27th, 2024, Zhuhai Kinwong completed theKinwong's ?rst megawatt-level integrated photovoltaic, energystorage, and power consumption project. After being put intooperation, the project is expected to provide the Company with
4.08 million kWh of clean electricity annually. This is equivalent
to saving 680 tons of standard coal per year, reducing CO
emissions by approximately 1,725 tons, SO
emissions byapproximately 52 tons, and NOx emissions by approximately29 tons. The project helps signi?cantly reduce the Company'senergy consumption and achieve the "carbon peaking andcarbon neutrality" strategy. Moreover, this project is anticipatedto serve as a virtual power plant in the future, participating indemand-side response and ancillary services, contributing tothe widespread adoption and application of clean energy.
Zhuhai Kinwong's Integrated Solar-Storage Project Successfully Commences Operations
On December 27th, 2024, Longchuan Kinwong's distributed photovoltaic project was officially connected to thegrid. The project covered over 30,000 square meters of plant rooftop area, with a total installed capacity of 4.65megawatts. The "self-su?ciency in electric power generation, and adding surplus electricity to the State Grid" modelwas employed in this project, with high-e?ciency crystalline silicon solar cells installed on the rooftops of buildingsto convert solar energy into electricity, achieving photovoltaic power generation. By utilizing previously idle rooftopspace, the project participated in the "peak shaving and valley ?lling" action through photovoltaic power generation,e?ectively achieving the expected results for green and low-carbon development.
Longchuan Kinwong 4.65 MW Distributed Photovoltaic Project Officially Connected to the Grid
Ecosystem Protection
Recognizing the importance of biodiversity in maintaining the Earth's ecological balance and promoting sustainabledevelopment, Kinwong continuously focuses on biodiversity protection. The Company encourages and supportsemployees to actively participate in biodiversity-related activities, fostering an awareness of biodiversityconservation among them.When selecting sites and planning for new projects, the Company strictly complies with relevant laws, regulations,and policies, such as theLaw of the People's Republic of China on Prevention and Control of Soil Contamination,
theForest Law of the People's Republic of China,theLaw of the People's Republic of China on the Protection ofWildlife,and theOpinions on Further Strengthening the Protection of Biological Diversity. All construction activitiesare conducted away from nature reserves, ecological conservation habitats, and important or sensitive biodiversityareas to avoid adverse impacts on local ecosystems.
During the construction and operation phases of its reconstruction and expansion project in 2024, LongchuanKinwong strictly complied with relevant laws and regulations and implemented environmental protectionmeasures outlined in the environmental impact assessment, without crossing red lines for ecologicalconservation, set benchmarks for environmental quality, and imposed caps on resource utilization. The projectensured that all governance facilities functioned well during construction and operations and that pollutants,such as wastewater, waste gases, noise, and solid waste, were discharged within compliance limits with nosigni?cant impact on the surrounding environment.
Longchuan Kinwong's Reconstruction and Expansion Project Conducts Ecosystem ImpactAssessmentCase
113114
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Conclusion
Key Performance Indicators
Economic PerformanceUnit202220232024
Operating revenueRMB billion10.51410.75712.659Net pro?t attributable to shareholders ofthe listed company
RMB billion1.0660.9361.169Basic earnings per shareRMB/Share1.271.111.34
Governance PerformanceUnit202220232024Directors, supervisors and senior managementShareholders' meetings heldTimes442Board meetings heldTimes7128Meetings of the Board of Supervisors heldTimes566Average attendance rate of Boardmembers
%100100100Meetings of specialized committees underthe Board
Times121111Including: Remuneration and AssessmentCommittee
Times234?????Audit CommitteeTimes444?????Nomination CommitteeTimes321?????Strategy and ESG CommitteeTimes322Number of Board membersPersons999Proportion of independent directors%33.3333.3333.33Number of disclosed announcementsCases174173168Number of regulatory penalties forinformation disclosure violations
Cases000
Product PerformanceUnit202220232024R&D innovationR&D investmentRMB million546601758Proportion of R&D investment to operatingrevenue
%5.195.585.99Number of R&D personnelPersons1,7031,5981,768Proportion of R&D personnel to totalemployees
%11.7610.459.86Number of valid patents heldItems452468440Supplier ManagementTotal number of suppliersCompanies651617600By region
Domestic suppliersCompanies609573558Suppliers from HongKong, Macao, Taiwan, andoverseas
Companies424442Total number of new suppliersCompanies13210945Percentage of suppliers signing theSupplier Code of Conduct
%758593Number of suppliers identi?ed withsigni?cant actual or potential negativesocial impacts
Companies000Environmental PerformanceUnit202220232024
Environmental investmentTotal annual environmental investmentRMB million108.5707160.6054234.5303Environmental protection trainingsessions held annually
Times273298331GHG emissions
Total GHG emissions (Scope 1 + Scope 2 +Scope 3)
tCO
e546,674786,2931,382,067Direct emissions (Scope 1)tCO
e16,59418,78220,850Indirect emissions (Scope 2)tCO
e530,080399,141401,222Scope 3tCO
e/368,370959,994Self-generated and self-consumedrenewable electricity
kWh/1,067,7202,397,382
115116
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTEnvironmental PerformanceUnit202220232024
Waste management and pollution preventionTotal general (non-hazardous) solid wasteTons17,579.7222,930.4717,957.32Total household wasteTons//3,180.38Total hazardous wasteTons88,505.3084,939.6586,143.72Recycled packaging materialsTons10,872.5510,750.1718,662.04Waste gas treatmentTotal waste gas emissions
Million cubicmeters
29,992.7433,912.6839,166.06Nitrogen oxides (NOx) emissionsTons17.9916.6128.47Sulfur oxides (SOx) emissionsTons//5.44Volatile organic compound (VOC)emissions
Tons6.204.837.81Particulate matter (PM) emissionsTons40.2838.1659.32Wastewater treatmentTotal wastewater discharge
Million cubic
meters
3.29313.74144.0183Chemical oxygen demand (COD)Tons69.8667.02110.86Ammonia nitrogenTons3.395.798.20Resource consumptionComprehensive energy consumption
Tons ofstandard coal
84,81690,516108,307Direct energy consumption
Tons ofstandard coal
6,4426,5366,538Natural gasCubic meters4,622,3524,818,3274,793,433DieselLiters356,650224,046248,972GasolineLiters1,3251,3654,509Indirect energy consumption
Tons ofstandard coal
78,37483,979101,769Purchased electricitykWh637,706,510683,313,449828,063,252Total water consumptionCubic meters8,530,2209,600,14112,137,719Including: Municipal waterCubic meters5,824,2416,550,1487,862,699?????Total recycled/regenerated water consumption
Cubic meters2,705,9793,049,9934,275,020
Employee PerformanceUnit202220232024
Employee employmentTotal number of employeesPersons14,48015,29817,938By gender
Male employeesPersons7,9568,52710,532Female employeesPersons6,5246,7717,406
By age
Employees aged 51 and abovePersons204245347Employees aged 41–50Persons3,0603,6354,328Employees aged 31–40Persons7,3457,2757,492Employees aged 30 and belowPersons3,8714,1435,771By region
Chinese mainlandPersons14,45515,27317,901Hong Kong, Macao, and TaiwanPersons191725Other countries and regionsPersons6812By employeecategory
Frontline employeesPersons14,06914,85217,452Middle management employeesPersons360387424Senior management employeesPersons515962Female employees in the middle managementPersons697587Female employees in the senior managementPersons566By ethnicity
Number of ethnic minority employeesPersons9599791,255Percentage of ethnic minority employees%6.626.407.00Labor contract signing rate%100100100Employee turnoverTotal employee turnover rate%33.0230.2131.54Employee trainingTotal number of employees trainedPersons/13,134 16,195By gender
Male employeesPersons/8,807 11,740Female employeesPersons/4,327 4,455
117118
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTEmployee PerformanceUnit202220232024
By employee type
Frontline employeesPersons/12,659 15,709Middle management employeesPersons/107 115Senior management employeesPersons/21 20Total training hoursHours/158,487 170,199By gender
Male employeesHours/90,338 102,630Female employeesHours/68,149 67,569By employee type
Frontline employeesHours/119,308136,001Middle management employeesHours/36,49945,812Senior management employeesHours/2,680 1,037Total training investment
RMBmillion
/2.722.81Occupational health and safety
Safety incidents
Number of work injuriesPersons172022Number of work injury incidentsCases172022Lost time injury frequency rate (LTIFR)///33.87Number of occupational diseasesPersons000Health and safetyinvestment
Investment in occupational health andsafety of employees
RMBmillion
1.832.072.59
Investment in workplace safety
RMBmillion
19.2525.4349.87
Safety training
Safety training coverage rate%93.7892.88100Total number of employees acceptingsafety training
Persons//21,428Total safety training hoursHours//358,246
Social Welfare PerformanceUnit202220232024
Total donation to public welfare
RMB
million
3.30004.71602.9800
Report Standard IndexInstructions: Kinwong reported the information referenced in this GRI Content Index in accordance with the GRIstandards for the period from January 1st, 2024 to December 31st, 2024.GRI StandardDisclosureReport Section
GRI 2: General
Disclosures 2021
Disclosure 2-1 Organizational detailsAbout This Report, Kinwong at a GlanceDisclosure 2-2 Entities included in the organization'ssustainability reporting
About This ReportDisclosure 2-3 Reporting period, frequency and contactperson
About This ReportDisclosure 2-6 Activities, value chain and other businessrelationships
Kinwong at a Glance, Customer Service and
Responsible Marketing, Collaborative Development
of the IndustryDisclosure 2-7 EmployeesStandardized Talent IntroductionDisclosure 2-8 Workers who are not employeesBuilding a Sustainable Supply ChainDisclosure 2-9 Governance structure and compositionImproving Governance StructureDisclosure 2-10 Nomination and selection of thehighest governance body
Improving Governance StructureDisclosure 2-11 Chair of the highest governance bodyImproving Governance StructureDisclosure 2-12 Role of the highest governance body inoverseeing the management of impacts
ESG Governance System, Stakeholder
Communication and EngagementDisclosure 2-13 Delegation of responsibility formanaging impacts
ESG Governance System, Stakeholder
Communication and EngagementDisclosure 2-14 Role of the highest governance body insustainability reporting
ESG Governance SystemDisclosure 2-15 Con?icts of interest
Improving Governance Structure, 2024 Annual
ReportDisclosure 2-16 Communication of critical concernsStakeholder Communication and EngagementDisclosure 2-17 Collective knowledge of the highestgovernance body
ESG Governance SystemDisclosure 2-18 Evaluation of the performance of thehighest governance body
ESG Governance SystemDisclosure 2-19 Remuneration policiesImproving Governance StructureDisclosure 2-20 Process to determine remunerationImproving Governance StructureDisclosure 2-22 Statement on sustainable developmentstrategy
ESG Governance SystemDisclosure 2-25 Processes to remediate negativeimpacts
Stakeholder Communication and EngagementDisclosure 2-26 Mechanisms for seeking advice andraising concerns
Stakeholder Communication and EngagementDisclosure 2-27 Compliance with laws and regulationsSee all chapters in this report for details.Disclosure 2-28 Membership associationsCollaborative Development of the IndustryDisclosure 2-29 Approach to stakeholder engagementStakeholder Communication and Engagement
119120
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTGRI StandardDisclosureReport SectionGRI 3: MaterialTopics 2021
Disclosure 3-1 Process to determine material topicsMateriality Assessment and AnalysisDisclosure 3-2 List of material topicsMateriality Assessment and AnalysisDisclosure 3-3 Management of material topicsMateriality Assessment and AnalysisGRI 201: EconomicPerformance 2016
Disclosure 201-1 Direct economic value generated anddistributed
Key Performance IndicatorsDisclosure 201-2 Financial implications and other risksand opportunities due to climate change
Climate Governance and Low-Carbon
TransformationDisclosure 201-3 De?ned bene?t plan obligations andother retirement plans
Enhancing Employee Well-beingGRI 203: IndirectEconomic Impacts2016
Disclosure 203-1 Infrastructure investments andservices supported
Social Contributions and FeedbackDisclosure 203-2 Signi?cant indirect economic impacts
Collaborative Development of the Industry, Social
Contributions and FeedbackGRI 205: Anti-corruption 2016
Disclosure 205-1 Operations assessed for risks relatedto corruption
Key Performance IndicatorsDisclosure 205-2 Communication and training aboutanti-corruption policies and procedures
Business Ethics and Anti-CorruptionDisclosure 205-3 Con?rmed incidents of corruption andactions taken
Business Ethics and Anti-CorruptionGRI 206: Anti-competitiveBehavior 2016
Disclosure 206-1 Legal actions for anti-competitivebehavior, anti-trust, and monopoly practices
Business Ethics and Anti-CorruptionGRI 301: Materials2016
Disclosure 301-1 Materials used by weight or volumeKey Performance Indicators
GRI 302: Energy2016
Disclosure 302-1 Energy consumption in theorganization
Key Performance IndicatorsDisclosure 302-2 Energy consumption outside of theorganization
Key Performance IndicatorsDisclosure 302-3 Energy intensityKey Performance IndicatorsDisclosure 302-4 Reduction of energy consumption
Climate Governance and Low-Carbon
TransformationDisclosure 302-5 Reductions in energy requirements ofproducts and services
Climate Governance and Low-Carbon
TransformationGRI 303: Water andE?uents 2018
Disclosure 303-1 Interactions with water as a sharedresource
Improving Resource Utilization E?ciencyDisclosure 303-2 Management of water discharge-related impacts
Improving Resource Utilization E?ciencyDisclosure 303-3 Water withdrawalKey Performance IndicatorsDisclosure 303-5 Water consumptionKey Performance IndicatorsGRI 305: Emissions2016
Disclosure 305-1 Direct (Scope 1) GHG emissionsKey Performance IndicatorsDisclosure 305-2 Indirect (Scope 2) GHG emissions ofenergy
Key Performance IndicatorsDisclosure 305-4 GHG emissions intensityKey Performance IndicatorsDisclosure 305-7 Nitrogen oxides (NOx), sulfur oxides(SOx), and other signi?cant air emissions
Key Performance Indicators
GRI 306: Waste 2020
Disclosure 306-1 Waste generation and signi?cantwaste-related impacts
Toxic Emissions and Circular EconomyDisclosure 306-2 Management of signi?cant waste-related impacts
Toxic Emissions and Circular EconomyDisclosure 306-3 Waste generatedKey Performance IndicatorsDisclosure 306-4 Waste diverted from disposalKey Performance Indicators
GRI StandardDisclosureReport Section
GRI 308: SupplierEnvironmentAssessment 2016
Disclosure 308-1 New suppliers that were screenedusing environmental criteria
Key Performance IndicatorsDisclosure 308-2 Negative environmental impacts inthe supply chain and actions taken
Building a Sustainable Supply ChainGRI 401:
Employment 2016
Disclosure 401-1 New employee hires and employeeturnover
Key Performance IndicatorsDisclosure 401-2 Bene?ts provided to full-timeemployees that are not provided to temporary or part-time employees
Enhancing Employee Well-being
GRI 403:
Occupational Healthand Safety 2018
Disclosure 403-1 Occupational health and safetymanagement system
Creating a Healthy Work EnvironmentDisclosure 403-2 Hazard identi?cation, risk assessment,and incident investigation
Creating a Healthy Work EnvironmentDisclosure 403-3 Occupational health servicesCreating a Healthy Work EnvironmentDisclosure 403-4 Worker participation, consultation,and communication on occupational health and safety
Creating a Healthy Work EnvironmentDisclosure 403-5 Worker training on occupationalhealth and safety
Creating a Healthy Work EnvironmentDisclosure 403-6 Promotion of worker healthCreating a Healthy Work EnvironmentDisclosure 403-7 Prevention and mitigation ofoccupational health and safety impacts directly linkedby business relationships
Creating a Healthy Work EnvironmentDisclosure 403-8 Workers covered by an occupationalhealth and safety management system
Creating a Healthy Work EnvironmentGRI 404: Trainingand Education 2016
Disclosure 404-1 Average hours of training per year peremployee
Key Performance IndicatorsDisclosure 404-2 Programs for upgrading employeeskills and transition assistance programs
Employee Development and TrainingGRI 405: Diversityand EqualOpportunity 2016
Disclosure 405-1 Diversity of governance bodies andemployees
Standardized Talent IntroductionGRI 406: Non-discrimination 2016
Disclosure 406-1 Incidents of discrimination andcorrective actions taken
Standardized Talent IntroductionGRI 409: Forced orCompulsory Labor2016
Disclosure 409-1 Operations and suppliers at signi?cantrisk for incidents of forced or compulsory labor
Standardized Talent IntroductionGRI 414: SocialAssessment ofSupplier 2016
Disclosure 414-1 New suppliers that were screenedusing social criteria
Key Performance IndicatorsDisclosure 414-2 Negative social impacts in the supplychain and actions taken
Building a Sustainable Supply ChainGRI 416: CustomerHealth and Safety2016
Disclosure 416-1 Assessment of the health and safetyimpacts of product and service categories
Product Safety and QualityDisclosure 416-2 Incidents of non-complianceconcerning the health and safety impacts of productsand services
Product Safety and QualityGRI 417: Marketingand Labeling 2016
Disclosure 417-1 Requirements for product and serviceinformation and labeling
Customer Service and Responsible MarketingDisclosure 417-2 Incidents of non-complianceconcerning product and service information andlabeling
Customer Service and Responsible MarketingGRI 418: CustomerPrivacy 2016
Disclosure 418-1 Substantiated complaints concerningbreaches of customer privacy and losses of customerdata
Ensuring Information Security
121122
2024 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
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SHENZHEN KINWONG ELECTRONIC CO., LTD.
Environmental, Social and Governance Report
KINWONG