About the ReportImplementing ESG ManagementGovernanceEnvironmental
President's Statement
4.1 ESG Management Philosophy
4.2 ESG Management Policies
4.3 Sustainable Development Commitment
4.4 Enhancing the ESG Governance Structure
4.5 ESG Management Practices
4.6 Integrating Key ESG Issues into Day-to-day
Operational Management
4.7 Extensive Training to Empower Employee
Development
4.8 Enhancing Communication with ESG
Stakeholders
6.1 Corporate governance
6.2 Risk control
6.3 Business ethics and anti-corruption
8.1 Green products
8.2 Electronic waste recycling
8.3 Energy management
8.4 Waste management
8.5 Water resources management
8.6 Response to climate change
About Ninestar
3.1 Company Prole
3.2 Our Industrial Layout
3.3 Company Culture
3.4 Core Values
3.5 Highlights in 2023
Materiality Assessment
5.1 Reections on Dual Materiality Assessment
5.2 Assessment of Materiality Topics
Social
7.1 Responsible Supply Chain Management
7.2 Employees’ rights, interests, diversity and equity
7.3 Human Capital Development
7.4 Product responsibility
7.5 Privacy protection and information security
7.6 Occupational health and safety
7.7 Community philanthropy
Appendix
9.1 Appendix I Key Performance Indexes (KPIs) of
2023 ESG Report
9.2 Appendix II Content Index of Global Reporting
Initiative (GRI) Standards
9.3 Appendix III Feedback Form
CONTENTS
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ContentsPresident's StatementAbout NinestarAppendixGovernanceImplementing ESG ManagementSocialEnvironmental
References and Basis of Preparation
Time Range
Availability of the Report
Feedback
Data Source
Reporting Principles
1. About the Report
The Report is the third Environmental, Social and Governance (ESG) Report (hereinafter referred to as "ESG Report" or "theReport") released by Ninestar Corporation (hereinafter referred to as "Ninestar", "We" or "the Company"). It mainly discloses ourESG management philosophy, management policies, improvement actions, and other achievements in 2023.
GRI Standards of the Global Sustainable Development Standards Board
The Report is an annual ESG report that covers the period from January 1, 2023, to December 31, 2023 (hereinafter referred toas "this year" or "the Reporting Period"). Some contents are appropriately extended beyond the Reporting Period and need tobe read in combination with our 2023 annual report.Unless otherwise specied, the amounts involved in the Report are denominated in CNY.
The Report is prepared in both Chinese and English versions. In case there is any discrepancy between them, the Chineseversion shall prevail.You can view and download the electronic version of the Report on the Shenzhen Stock Exchange (www.szse.cn) and theCompany's website (www.ninestargroup.com).
Should you have any questions or feedback on the Report and contents hereof, please contact us by:
Address: No.3883, Zhuhai Avenue, Xiangzhou District, Zhuhai CityTel: +86(0)756-6258000Fax: +86(0)756-8539856Email: info@ggimage.comZIP code: 519075
All the data used in the Report is mainly derived from public data, internal statistics, third-party surveys, administrativedocuments, and reports and other relevant documents.
We have engaged a professional third-party institution to identify current ESG material issues based onbusiness characteristics, industry analysis, and expert assessment and submitted the results to our Board ofDirectors (hereinafter referred to as "the Board of Directors") for review, to determine the materiality rankingof the ESG issues, which is used as the basis for ESG report preparation and management enhancement.
To the extent reasonably feasible, the quantitative information in the Report is measured and disclosed ina manner consistent with past practices so that shareholders can analyze and assess our achievements indi?erent periods. If the scope of data collection changes, the data is updated, or the method of measurementis altered, corresponding explanations will be noted for report users' reference.
We have developed a comprehensive and effective ESG governance structure. Under the leadershipof the Board of Directors, we have established and continue to improve data collection tools and reviewmechanisms through the two-tier governance structure of the "ESG Committee - ESG project team". Whereapplicable, a comparison between data for this year and previous years is disclosed in the Report to betterinform shareholders of our ESG management progress.The Report presents our ESG performance in an unbiased fashion. In addition to disclosing workingachievements, it also discusses the room for improvement and plans for related issues.
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report For TrialImplementation
Shenzhen Stock Exchange's Social Responsibilities Guide for Listed Companies issued by the Shenzhen Stock ExchangeGuidance on Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures
Materiality
Quantitativeness
Equilibrium
Consistency
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2. President's Statement
To all stakeholders:
The year 2023 brought a mix of opportunities andchallenges. All sectors of society have paid increasingattention to the sustainable development of enterprises.From international reporting standards to the regulatoryrequirements of exchanges and the investment focalpoints of investors, a growing number of stakeholdershave realized that the evaluation of enterprises should notonly focus on nancial and operating data but also includesustainable development capability and performance inorder to understand and perceive the long-term developmentcapabilities of enterprises from a more comprehensiveperspective. As an enterprise listed on the main board of theShenzhen Stock Exchange, we work to propel independentinnovation and low-carbon transition with dedication tocultivating our product R&D and operational managementcapabilities, striving to create responsible products andservices and practice high-quality development.Adhere to ingenious quality, embracing qualitydevelopment.We always uphold craftsmanship, encourage independentinnovation, pursue excellent quality, and are devoted tobecoming "the eminent high-tech service provider in theprinter industry". In 2023, we successfully launched anumber of high-quality products with independent intellectualproperty rights. Pantum's first independently researchedand developed A3 black-white and colorful copiers provideusers with more reliable, highly stable, easy-to-maintain,and low-cost product options. This is also a manifestation
of our adherence to "being steered by user demand,driven by technological innovation and pushed forwardby management optimization". We also hope to enhanceproduction e?ciency and product quality through digital andintelligent transformation so that more value will be broughtto users and more changes to the industry.Pursue green and clean practices, paving the way forlow-carbon development.In our active e?orts to implement and respond to the national"3060" strategy
, we always strive for green low-carbondevelopment. In 2023, we proposed that our overall carbonemissions should be reduced by 50% by 2030 and, on thebasis of this goal, impelled green product production, andgreen operational management. We also engaged in productlifecycle management in 2023. We paid attention to theintegration of clean technology in all phases, such as productdesign, packaging, and electronic waste recycling, andworked toward the carbon footprint certication of productswith systematic steps to reduce the environmental impact ofthe product lifecycle and manufacture eco-friendly and greenproducts. Since 2018, we have installed photovoltaic powergeneration equipment on factory rooftops as we increasethe applications of clean energy and deepening our greenoperational management capabilities. We believe that itwill help us increase development resilience and enhancemarket competitiveness if we promote a green and cleanproduction model, dedicate ourselves to green productproduction, and optimize green operational management.
Harbor a sense of responsibility, building a foundationfor high-quality development.We adhere to the principle of high-quality, sustainabledevelopment. We have integrated ESG managementstandards into our corporate strategy in an orderly manner,and we are committed to consolidating the foundationof development responsibly and acting as responsiblecorporate citizens. In 2023, driven by our ESG governancestructure, we rationally developed enhancement plansthrough gap identication, surrounding the dual ESG goalsof "enhancing internal management and external evaluation",and made steady progress in developing normalized ESGmanagement.We firmly believe that employees are the cornerstone ofour sustainable development and that each employee'sunique value and contributions are the key to our success.We are committed to creating a fair and inclusive workingenvironment, listening to the real voices of employees atall levels, and respecting and protecting every employee'sdesires and choices. We value employees' personal growthand occupational development planning. By establishing acomprehensive training system and an unimpeded growthpath, we provide employees with support and incentives tohelp them improve their job competencies and professionalskills.We are well aware that as a responsible enterprise, we needto comprehensively consider the unity between economic
Ninestar CorporationPresident Kong Dezhu
value and social value. Since our foundation, we have beenfullling our social responsibilities proactively and continually.We have supported education and participated in communityconstruction in different forms, giving back to society insincere and practical ways.If we do not fail Nature, Nature shall never fail us. Lookingto the future, we will hold fast to our original aspirationsfor development, take user demand as a guide, and baseourselves on long-term planning, moving forward steadilyas we actively embrace changes to explore a path of high-quality, sustainable development for enterprises. We willdevelop more improvement action plans and organizetheir implementation, steadily promote product and serviceinnovation, practice sustainable development principles withconcrete actions, and move toward higher managementmaturity.
The national "3060" strategy strives to achieve carbon peak before 2030 and carbon neutrality before 2060.
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3. About Ninestar
Chip business
Compatible supply business
3.1 Company Prole
3.2 Our Industrial Layout
Printer business
Founded in 2000, Ninestar Corporation has been rankedamong the top 500 listed companies in China for threeconsecutive years. Focusing on the printing and imagingindustry for 23 years, the Company has become theworld's fourth-largest laser printer manufacturer andan excellent integrated circuit design enterprise inthe industry. In FY2023, the Company's revenue wasCNY24.062 billion. We have achieved full coverage of theprinting industry chain, with a presence in more than 150countries and regions around the world, owning severalrenowned brands in many industries, such as "Pantum (奔图)", "Geehy (极海微)", "Apexmic (艾派克)", "G&G(格之格)", "Static Control (史丹迪)", "Lexmark International(利盟国际)" (hereinafter referred to as "Lexmark"), amongothers.We have nine R&D centers in the world, a national-levelpostdoctoral research workstation, the industry's rst statekey laboratory of fine chemicals (Zhuhai R&D Center),and the industry's first CNAS-accredited laboratory.Additionally, we own 17 national-, provincial- or municipal-level innovation platforms as well as 30 industry-university-research cooperation platforms and independentinnovation platforms. We hope that we will lead businessdevelopment with technology and create new valuethrough technological innovation and patent development.During the Reporting Period, we had more than 20,000employees worldwide, 22.10% of whom were R&Dstaff. The R&D investments were CNY1.751 billion. Ourtechnological products include laser printers and originalsupporting consumables, printer master chips, printingconsumables chips, printer core components, generalmicro control units (hereinafter referred to as "MCU"),and compatible supplies, among others. We own 5,862independent R&D patents all over the world, of which 3,500are invention patents. We have been awarded the title ofNational Intellectual Property Advantage Enterprise.For more information about the Company's businessoperation and nancial condition, please refer to Ninestar's2023 Annual Report: https://www.ninestargroup.com/investor-ar.html
A presence in more than
Over
R&D personnel account for
countries and regions around the world
R&D centers across the world
employees worldwide
21,997
22.10%
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We uphold the corporate mission to fulll our social responsibilities, to provide exceptional service for our customers, to helprealize the dreams of our employees, to create value for our shareholders. With the aspiration to serve the country with industrialdevelopment, our founders established the Company, and they believe that "only when the Company adheres to a strong senseof responsibility and mission for the country and the nation will it achieve broad and robust success and create a great brand".To this end, we devote ourselves to facilitating the unity between business value and social value.Our vision is "To become the eminent high-tech service provider in the printer industry. To build a globally renowned trustedbrand". The Company upholds its core values of "loyalty, truth-seeking, innovation and being win-win". As its business expandedfrom compatible consumables and printers to integrated circuit chips and beyond, Ninestar has grown into a unique, dynamic,and innovative technology services company.
Social
We have improved the quality management processes and created the quality culture of "DoIt Right the First Time".We have doubled our efforts in product R&D. Our products have passed a number ofinternational security certications. During the Reporting Period, we rolled out new productsand technologies, such as brand-new A3 copiers and high-performance MCUs for motorcontrol, which have earned recognition from the market.We have taken actions to combat counterfeit and shoddy products and also introducedpolicies and measures to protect consumers' rights and interests.Our chip products have won the China Chip "Best Market Performance Award" presented bythe Ministry of Industry and Information Technology of the People's Republic of China (MIIT)for eight consecutive years.
We have updated the whole process of hierarchical supply chain management, supply chainaccess, regular assessment standards, and regular supply chain scorecards.In 2023, we conducted audits and surveys on 705 suppliers, covering ESG labormanagement and conflict minerals management, and implemented CMRT audits of 418suppliers.We have developed a gradually perfected plan for our future conict minerals management.
be an honest person, workpractically, pursue substantialresults, and make achievements
innovate boldly, keep exploring newpossibilities, and seek developmentthrough innovationshare difficulties and successtogether, and competition beforewinning awards
3.3 Company Culture
3.5 Highlights in 2023
3.4 Core Values
3.5.1 ESG management enhancement actions
abide by laws and regulations,be honest and dedicated to work,adhere to professional ethics, andbe loyal to the Company's business
LoyaltyInnovation
Truth-seeking
Win-win
Governance
In December 2022, we set up the Environmental, Social, and Governance (ESG) Committeeconsisting of directors, with the Director of our Board of Directors serving as the Director ofthe Committee.In April 2023, we established the Integrity and Self-discipline Committee as an independentsupervisory organ to enhance our management capabilities in integrity and self-discipline,business ethics, and other dimensions.In September 2023, we adjusted the members of our ESG project team and claried theirmanagement duties, making the operation of the ESG project team more reasonable ande?cient.We have improved our information disclosure of sustainable development (https://www.ninestargroup.com/esg.html) by designing an ESG information disclosure column on ourChinese and English websites to fully disclose our management systems for sustainabledevelopment and related information from the environmental, social, and governancedimensions.
Developan e?ectivegovernance
structure
Increaseinformationtransparency
Strengthensupply chain riskmanagement
Provide
responsibleproducts and
services
Environmental
According to the recommendations of the Guidance on Implementing the Recommendationsof the Task Force on Climate-related Financial Disclosures, we have developedcorresponding response measures on the basis of our identication and analysis of climate-related risks and opportunities.Based on the management philosophy of product lifecycle management covering "greenmaterials - green R&D - green production - green recycling", we keep raising investment inclean technology R&D and optimize green product design at the technological level.By strictly observing domestic and international standards for green products, we haveobtained corresponding product certifications. We have also adopted environmentallyfriendly raw materials and innovated new green packaging to reduce the carbon footprints ofour products.We conscientiously select high-quality raw materials, study components' service lives andoptimize design to improve product durability and ease of repair.We have improved the electronic waste recycling process and promoted product recyclingactions to cover di?erent countries and regions.We have established cooperation relationships with local recycling networks around theworld and expanded our global market shares and facilitated the layout of the entire industrychain through strategic cooperation.We conduct audits of recyclers. The qualications of our recyclers and garbage disposalagencies are reviewed based on a strict partner screening mechanism to ensure that theyhave relevant business licenses and reliable disposal equipment.
Actively respond
to emerging risks
Electronic
wasterecycling
Cleantechnologyapplications
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Operating revenue (CNY1 billion)
Intellectual propertyrights (item)
Taxes paid (CNY1 billion)
R&D investments (CNY1 billion)
24.062
5,862
0.936
1.751
3.5.2 Achievements in 2023
Total number ofemployees
Total number of employees trained
Total duration of occupational healthand safety training (hours)Total employee training duration(hours)
Total investment in employee training(million)
Investment in social assistance (million)21,9978,206
35,638165,533.5
3.841.33
3.5.3 Social indicators
3.5.4 Environmental indicators
Total GHG emissions (including Scope 1
and Scope 2) (tCO2e)
25,986.26
Total water usage(ton)
1,039,532.69
Greenhouse gas (GHG) emissionintensity (tCO2e/CNY10,000 revenue)
0.0108
Overall energy consumption intensity(tce/CNY10,000 revenue)
0.0025
Overall energy consumption (tce)
5,935.34
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3.5.5 External recognition
During the Reporting Period, our ESG management performance was recognized by a number of rating agencies and authoritativeawards.Financial indexes
Awards
Ratings
MSCI ESG
CSI ESG
CNI ESGSustainalytics
Wind ESG
BBB
BBB
18.1 Low Risk
A
AAA
Shenzhen 100 ESG Index (970027)
Shenzhen 100 ESG Top Index (970030)Shenzhen Component ESG Enhanced Index (970032)
Shenzhen Component ESG Top Index (970029)
Shenzhen 100 ESG Enhanced Index (970033)
CSI 300 ESG Index (931463)CSI 800 ESG Index (931650)CSI 300 Carbon Neutrality Index (931859)
QuocircaQuocircaSeramountLexmark was named "Leader inManaged Print Services (MPS)"for the 11th consecutive year
Lexmark was named "Leader in
Cloud Print Services 2023"
Lexmark was selected asone of the Top 10 "2023 TopCompanies for Executive
Women"
IDC
Lexmark was once again named "Leader in Security Solutions and Services Hardcopy", "Leader in Print Transformation
2023" and "Leader in Print Security"
HRootSSON
Lexmark won "HRoot Awards 2023" for GreaterChina and the title of "Outstanding Employers
2023"
Lexmark was selected as one of the Top 20 MostAdmired Shared Services Organizations (SSOs)
and Global Business Services (GBS) for the
second consecutive year
CCXGF
Top 100 ESG Companies in China's Guangdong-Hong Kong-Macao Greater Bay Area
Management Committee of Beijing Economic-Technological Development Area
Geehy Microelectronics was successively rankedamong "Top 50 Automotive Chips 2023" and "MCU
Innovation Pioneers"
Buyers Lab（BLI）Authoritative HR organization
"Kenexa"Authoritative HR organization
"Kenexa"
Lexmark won "2023-2024Pacesetter Award in Retail"
Lexmark won "Kenexa XAwards 2023 HCM PracticeAwards: Excellent CorporateCulture Case Award"
Lexmark was ranked among"Kenexa X Awards 2023 Top50 Excellent HR DigitalizationCases of the Year"
China Integrated Circuit
Innovation Alliance
Department of Industry andInformation Technology of
Guangdong Province
Guangdong ProvincialAssociation of Modern O?ce
Equipment
The domestically produced,independent core SoC productof Geehy Microelectronics wonthe sixth "IC Innovation Award"
Geehy Microelectronics wascertied as a "National Specialized,High-end and Innovation-driven
SME"
G&G won "RecommendedBrand" award
China GovernmentProcurement NewsPantum won "Purchasers'Favorite Brand Award"Wind
Ninestar was ranked 224thon the list of China's Top 500Listed Companies by MarketCapitalization in 2022
Times Responsibility 40 Forum
Think Tank
Ninestar won "2023 ESGGold Medal for China's Listed
Manufacturing Companies"
Rigel Intelligent Transportation
Research
DeliAspenCore
Geehy Microelectronics won the
title of "Automotive ElectronicChip Supplier of the Year"
G&G won "Strategic Partner
Award"
Geehy Microelectronics wasnamed one of the "Top 10 ChinaIC Design Brands" for 2023
MSCI China Index (USD) (302400.MI)
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4.1 ESG Management Philosophy
4.2 ESG Management Policies
4. Implementing ESG Management
We have established an ESG Committee and have clearly de?ned the Board of Directors' Environmental, Social, andGovernance (ESG) Committee Rules of Procedure. We adhere to a Plan-Do-Check-Act (PDCA) cycle to continuouslyreview our sustainable development performance and strengthen ESG management across all aspects. Our e?ortsare aimed at generating greater economic, environmental, and social bene?ts for our stakeholders. We engagein regular stakeholder communications, benchmark analyses with industry peers, set development goals, and
Board of Directors
ESG Management Framework
Ninestar ESG Management Closed Loop Diagram
ESG CommitteeESG Project Working GroupBusiness units
To effectively advance the management of key ESG topics, we have extensively referenced domestic and internationalsustainable development guidelines and standards to formulate the Ninestar ESG Management Policies from multipledimensions. We continuously revise and optimize our ESG management strategies, standardizing and guiding our high-quality,sustainable development management.In alignment with the United Nations Sustainable Development Goals (SDGs)
,guided by the scientific objectives
and China's carbon reduction targets andaction plans
for the 14th Five-Year Plan period, we adhere to the principle ofhigh-quality, sustainable development. We have integrated ESG managementstandards into our corporate strategy in an orderly manner, committing tooperate responsibly. Our goal is to create a range of sustainable environmental,social, and economic benefits across dimensions such as environmentalprotection, clean technology applications, product quality, employeeresponsibility, supply chain construction, and community welfare. We strive tocontinuously enhance our capacity for sustainable development and to act as aresponsible corporate citizen.
propose improvements. By incorporating sustainable development principles into every aspect of our businessoperations, we also enhance transparency by publishing annual ESG reports. These e?orts actively address theconcerns of stakeholders and comprehensively showcase our annual sustainable development performance.
Design top-level strategyCoordinate ESG activitiesDevelop improvement actionsImplement improvement measures
United Nations Sustainable Development Goals (SDGs) refers to the 17 global development goals set by the United Nations.
The Paris Agreement is committed to achieving a global average temperature rise of 2 degrees Celsius below pre-industrial levels and to working towards limitingit to 1.5 degrees Celsius.
The 2025 and 2030 targets and action plans mentioned in China's Action Plan for Carbon Dioxide Peaking Before 2030.
Report disclosure
Promoting theimplementation ofimprovement actionsSetting ESGgoals
Assessing ESG risks and opportunities
Integrating cycles intoday-to-daymanagement
Dimension
Policy
Social Responsibilities System
Responsible Management Policiesfor Mineral Resource Supply Chains
Supply Chain SustainableDevelopment PolicyOccupational Health and SafetyManagement StatementGuarantee System for EmployeeDiversication, Rights and InterestsSociety
Internal Control AuditSystem and StatementRationalization Suggestion andIntegrity Reporting SystemAnti-bribery and Anti-corruptionManagement System
Sustainable DevelopmentCommitment
Governance
Environmental ManagementStatement
Environment
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We conduct stringent lifecycle quality management of products, adhere toa safety-rst principle, and leverage our core technological strengths andsustainable R&D capabilities to provide world-class solutions and servicesfor global new energy applications.
We protect the interests of investors and aim to enhance corporateperformance to reward our stakeholders.
We enhance protections for employee rights, uphold the principle ofequal employment, provide comprehensive training and fair developmentopportunities, offer diverse benefits, and continuously foster a safe,healthy, comfortable, warm, and harmonious work environment.
We consider diversity factors, including gender, age, nationality, culturaland educational background, and professional experience whenappointing board members.We regularly review the e?ectiveness of Board of Directors diversity.
4.3 Sustainable Development Commitment
We commit to fully integrating sustainable development principles into all aspects of our business operations while providinginnovative products and services. We are dedicated to building a sustainable development management system, adhering toethical and compliant business practices, continuously enhancing communication with stakeholders, ensuring the Company’shigh-quality, sustainable development, and creating long-term value.
We maintain a customer-centric approach, creating maximum value with superiorproducts and services, and pursuing mutually win-win cooperation.
We actively foster a fair, open, transparent, and sustainable supply chain,working together with suppliers to make sustainable development a keycomponent of our procurement strategy.
We are committed to addressing global climate change, producing top-tiergreen products, and ensuring that R&D, design, procurement, production,logistics, and recycling processes meet the requirements for environmentalsustainable development, achieving a harmonious cycle between corporateand environmental development.
We actively assume corporate social responsibilities, participateenthusiastically in targeted poverty alleviation and public welfare initiatives,and strive to build better communities.
To customers
To suppliers
To the environment
To society
Commitment to
SustainableDevelopment
Details of undertakingDetails of undertaking
Board of DirectorsDiversity
To products
To employees
To investors
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4.4 Enhancing the ESG Governance Structure
Under the leadership of the Board of Directors, theCompany has developed a comprehensive and effectiveESG governance structure. Through the "ESG Committee- ESG Project Working Group" framework, we fullyidentify and organize the internal departments responsiblefor managing critical ESG issues, clearly define theirmanagement responsibilities, and specify the requirementsand standards for enhancing ESG managementplanning, thereby thoroughly integrating Ninestar's ESGmanagement philosophy into our business operations.
Develop and implement the Company's ESG strategic planning, management structures, systems, strategies, anddetailed rules to ensure continuous execution and implementation of the Company's ESG policies.Allocate resources related to ESG work, including human, nancial, and natural resources.Draft key performance indicators for the Company's ESG, proposing assessments based on the outcomes andperformance targets of the Management’s sustainable development initiatives.Review company disclosures related to ESG, including but not limited to annual ESG reports.Pay attention to relevant risks in the ESG domain, proposing counter-strategies.Perform inspections on the implementation of the above matters.Handle other matters authorized by the Board of Directors.
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Coordinate ESG Strategy, Risk Management, and Objective Management
Coordinate the preparation of ESG reports.Develop the Company’s ESG strategic direction.Set ESG development goals and supervise theirachievement.Allocate company resources to support ESG activities.Approve institutional documents related to ESG.Approve the annual ESG work plan andimplementation schemes.Regularly report significant ESG-related matters tothe Board of Directors.Approve other significant matters related to theCompany’s ESG activities.
Continuously research ESG developments within theindustry.Stay updated on the latest ESG policies.Develop actions to improve the Company’s ESG.Create ESG policies that align with the Company'sdevelopmental interests.Coordinate with various departments and subsidiaries toensure the implementation of improvement actions.Provide internal ESG consultancy services todepartments and subsidiaries.Regularly report on ESG activities to the project groupleader.
Participate in drafting institutional documents relatedto the ESG management system, clearly definingresponsibilities for controlling ESG information ows.Develop annual ESG work plans, interim goals, andimplementation schemes.Arrange ESG liaison personnel and follow up onspecialized ESG activities within the Group.Supervise the progress of departmental ESGactivities.Cooperate with the Group Coordination Team toconduct regular internal promotional training.
Regularly record, collect, and report ESG-relatedinformation.Participate in drafting and reviewing ESG reportsand promptly respond to questionnaires from ratingagencies, implementing ESG improvement actionplans and carrying out specialized tasks related to ESGdevelopment.Regularly track the progress of ESG activities, identify,assess, and report ESG-related risks.Organize and implement daily management activitiesrelated to ESG research, training, communication, anddissemination.Promote ESG-friendly concepts and measures in dailyoperations.Regularly report on ESG work progress to leadership.
GovernanceLevels
Membership
ESG Project Team MembersESG Project Deputy Leader (Heads ofvarious business departments)
ESG Project Group Leader - CompanyPresident
Group ESG Coordination Team
Management ResponsibilitiesTo strengthen our management capabilities in ESG governance, Ninestar has established an ESG governance structure led bythe Board of Directors. This structure implements multilevel supervision across all ESG layers, ensuring seamless integrationfrom initial decision-making and communication to nal execution.The Board of Directors, serving as the highest governance body, actively participates in the formulation of ESG strategies,oversees the Company's ESG developmental direction and strategies, and regularly discusses and reviews the risks andopportunities related to ESG development.The ESG Committee is primarily responsible for setting the Company's sustainable development goals and development plans.It supervises the operation of the sustainable development systems across various business units, providing suggestions andsolutions for improving the Company's sustainable development performance. The ESG Committee members come fromdiverse backgrounds with extensive industry experience, covering areas such as corporate management, nancial management,and risk management. This diversity provides various professional perspectives and risk preferences, enabling the Company tobetter manage complex ESG risks and seize development opportunities.Furthermore, to ensure the ongoing advancement of our ESG governance, we have established ESG project working groupsthat include management from the parent company and its subsidiaries. These groups are responsible for coordinating,planning, implementing, and supervising the Company's ESG activities.
ESG Committee
Composed of4 directors and 2independent directors
Board ofDirectors
ESG Project WorkingGroup
ESG Project Group Leader -
Company President
Group ESG Coordination Team
ESG Project Deputy Leader (Heads
of various business departments)
ESG Project Team Members
2022环境、社会及治理报告
About the ReportMateriality AssessmentImplementing ESG ManagementContentsPresident's StatementAbout NinestarAppendixGovernanceSocialEnvironmental
4.7 Extensive Training to Empower Employee Development
4.5 ESG Management Practices
4.6 Integrating Key ESG Issues into Day-to-day Operational
Management
In 2023, under the governance of the Ninestar ESG framework, we methodically advanced normalized ESG management.By organizing ESG working meetings and engaging middle and senior management in ESG enhancement plans, we droveimprovements in the Company's overall ESG management and action capabilities.We adhere to the dual ESG goals of “enhancing internal management and external evaluation”. Comprehensive ESGenhancement proposals that consider business operational management needs were developed across all levels and businessunits of the Company. Through identifying the deficiency of the Company, we formulated short, medium, and long-termenhancement plans, promoting the integration of ESG values with business values and effectively fostering the practice ofnormalized ESG management.
In 2023, we focused on key issues highlighted by external rating agencies as levers for management enhancement, identifyingseveral industry-critical issues related to Ninestar's business, including "clean technology opportunities", "e-emissionsmanagement", "human capital development", "controversial procurement", and "supply chain labor management". By aligningmanagement guidelines for these issues with industry best practices and identifying gaps, we developed strategies tailored tothe Company's needs.
Enhance the supplier management systemby integrating aspects such as "supplierlabor management".Incentivize excellent partners in supplierlabor management.Identify and classify clean technologyproducts, collect statistics.Conduct written surveys on conict mineralsmanagement with key suppliers, provideregular feedback.……Launch an anonymous anti-corruptionreporting system.Implement an employee democraticcommunication system.Expand and cover the scope of auditing.Establish an online ethics standardsauditing system.……
Ninestar places high importance on ESG management. Employees at all levels actively participate in the annual ESGCommittee meetings, where they collaborate with committee leaders to discuss and develop ESG strategies that align with ourbusiness needs, crafting ESG management enhancement action plans and goals for various business units.In 2023, we conducted 12 internal ESG training sessions encompassing all major subsidiaries. The training covered varioustopics, including the latest ESG trends, industry best practices, rating management standards, and company improvementaction plans. This ensures the e?ective implementation and continuous improvement of ESG principles within our day-to-dayoperations, thereby facilitating the practical application of our ESG management initiatives.
In addressing issues related to supply chain labor management, clean technology opportunities, and contentious procurement,we have advanced management enhancement plans across our printer, consumables, and semiconductor sectors. Thisinvolves collaboration with departments such as the R&D Department and the Procurement Department to rene our suppliermanagement systems. This includes integrating "supplier labor management" into our regulatory standards, identifyingand recording products related to clean technology, and conducting research on conflict minerals management with keysuppliers. Concerning corporate governance, we have collaborated with departments such as the Planning Department, AuditDepartment, and Human Resources Department to launch systems such as an anonymous anti-corruption reporting system, anemployee democratic communication system, and a business ethics auditing system. These initiatives are being progressivelyimplemented to enhance ESG management and fully integrate ESG elements into everyday corporate management.
Supply Chain LaborManagement,Clean TechnologyOpportunities,ControversialProcurement
Printer BusinessGeneralConsumables
BusinessChip Business
PurchaseDepartmentR&DDepartmentRelevantdepartments
HeadquartersCorporate Governance
PlanningDepartmentAuditDepartmenSecuritiesDepartmentHuman Resources
Department
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4.8 Enhancing Communication with ESG Stakeholders
The Company has established a dedicated mechanism for external communication on ESG topics, maintaining an activedialog with ESG rating agencies, ESG investment institutions, and leading enterprises regarding ESG trends, managementenhancement, and regulatory updates to learn from their experiences and foster our ESG initiatives. During the ReportingPeriod, we held six external communication meetings focused on ESG themes.
We have developed a diversied communication mechanism, establishing close ties with stakeholders through a combination ofonline and o?ine interactions and actively responding to their expectations through communication and cooperation. During theReporting Period, the Company conducted an in-depth online survey among di?erent stakeholders, receiving 836 responses,with the results outlined below:
Stakeholders
Government andregulatory authorities
InvestorsEmployeesConsumersSuppliersDistributorsPartnersMediaPublic
Their concerns
Implementation of macro
policies
Employment promotion
Lawful and compliant
operation
Corporate sustainable
development
Continuous value creationPrevention of operationrisksProtection of shareholders’rights and interestsGood informationdisclosureCorruption-free businessenvironment
Protection of basic rightsand interests of employeesEmployee careOccupational Health andSafetyEmployee training andoccupational development
Information security andprivacy protectionHigh-quality products andservicesLocalized products andservices
Open, fair and justprocurementInsist on integritymanagementLong-term and stablecooperationSupport the suppliergrowth
Win-win cooperationHigh-quality products andservicesAbide by business ethics
Conduct cooperationResponsible productsProduct optimization andinnovationBusiness ethics and anti-corruption
Response to publicopinionsInformation publication
Strengthen thecommunication andexchangeSupport the publicwelfare
Strictly abide by the laws
and regulations of each
place where we operate
Conduct integrity
management and pay
taxes in accordance with
the law
Participate in the policy
and plan research and
formulation
Accept supervision and
assessment
Lean management and
sustainable development
Comply with relevant lawsand regulationsHold general meetings ofshareholdersRegularly discloseoperating and nancialinformationRegular and dailycommunication withinvestorsStrengthen the complianceand internal control system
Establish a fair and justremuneration systemCare about specialemployeesStrengthen theconstruction ofoccupational health andsafety managementsystemEstablish a long-termtalent training mechanismConduct employeesatisfaction surveysProvide anonymouschannels for collectingreasonable employeedemands
Strengthen the informationsecurity and privacyprotection measuresDevelop a qualitymanagement system, andensure smooth servicenetworksKeep consumer feedbackchannels openConduct the productsatisfaction survey andfeedbackCultivate the localmarket, and continue thetechnological innovationIntroduce policies tocombat counterfeit andshoddy products in themarket
Establish fair andtransparent procurementprinciples and processesAdvocate for asustainable supply chainCarry out ESGmanagement of supplychainCarry out regularcommunication with andtraining of suppliers
Expand cooperation andexchange channelsKeep product and servicefeedback channels openStrictly abide by the lawsand regulations of eachplace where we operateStrict review andcertication
Strengthen the industry-university-researchproject cooperationProvide support toteaching in universitiesEnhance the productinnovation consciousnessKeep regular or irregularcommunication
Strengthen the publicopinion monitoringMaintain communicationwith the media
Keep the communicationchannels openOrganize social welfareactivities and volunteeractivities
Our dailycommunication and
responses
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5.1 Reections on Dual Materiality Assessment
5.2 Assessment of Materiality Topics
5. Materiality Assessment
The Company aims to advance the dual materiality assessment of the fifteen ESG topics under Ninestar's framework,considering both "nancial materiality" and "impact materiality". Guided by the GRI3 standards, we identify issues that mayeither enhance or diminish company value, providing relevant ESG insights for future business strategic decisions.
Based on the nal review results, green products, clean technology, and electronic waste recycling have been added as highly-priority topics for this year, while employees’ rights, interests, diversity and equity, privacy and information security, occupationalhealth and safety, product liability, corporate governance, and risk management remain highly material topics. Additionally, theimportance of addressing climate change has increased compared to previous years.
Based on the existing list of materialitytopics, we consider the following ve aspectsto multidimensionally sort and update the list:
We are dedicated to enhancing theCompany's transparency and senseof responsibility through our ESGcommunication strategy, ensuringeffective and deep communicationwith all stakeholders. In 2023, weemployed a systematic approachto assess and manage ESG-related topics, including but notlimited to surveys, online and o?ineinterviews and gathering 836 validresponses from online surveys toensure our assessments are well-supported by data.To further strengthen interactionwith key stakeholders, we haveestablished a specialized ESGcommunication mechanism andsuccessfully held six thematiccommunication meetings in 2023.These meetings aim to deepen ourunderstanding of shareholders,suppliers, regulatory bodies,rating agencies, employees, andother stakeholders' concernsand expectations regarding theCompany's ESG practices, whilealso providing valuable perspectivesand suggestions for our ESGinitiatives.
As the latest domestic and international ESG reporting standards are released, our assessment of materiality topics willcomprehensively consider both "nancial materiality" and "impact materiality" (dual materiality). We are committed to proactivelydiscussing guidelines for dual substantive assessment of materiality topics in order to strengthen the management of ESG risksand the identication of opportunities.
Materiality Topics Matrix and Ranking
Step One: Identify and Update the ESGTopics List
Step Two: Conduct Surveys andSpecialized ESG Communication
Step Three: ConductAnalysis of MaterialityTopicsBased on the research resultsfrom stakeholders, performmateriality matrix analysisaccording to ESG reportingguidelines.
Integrate international leadingreporting standards, attentionto topics by leading domesticand international peers,and suggestions from ESGprofessional advisors to forma review list of the results ofthe materiality topics analysis,ultimately identifying andanalyzing the 15 materialitytopics significant to Ninestarand its stakeholders.
The ESG Committee and theBoard of Directors review andconfirm the materiality topicsand their assessment resultsfor this year.
Step Four: Review Analysisof Materiality Topics
Step Five: Conform theMateriality Topics
Green productsElectronic waste recyclingWaste managementOccupational Health and SafetyResponsible supply chain managementProduct responsibility
Information security andprivacy protectionCorporate governanceand risk managementHuman capitaldevelopmentEnergymanagementWater resourcesmanagement
Social welfare
Respond to climatechange
Business ethics and anti-corruption
EnvironmentalIssuesSocial IssuesGovernanceIssues
Employees’ rights, interests, diversity and equity
Importance to stakeholders
Importance to the Enterprise
ClassicationOrderIssueDimensionOrderIssueDimensionOf highimportance
1Green productsEnvironment5
Occupational Health andSafety
Society
E-Waste recyclingEnvironment6
Responsible supplychain management
Society3Waste managementEnvironment7Product responsibilitySociety
Employees’ rights,interests, diversity andequity
SocietyOf mediumimportance
Information securityand privacy protection
Society12
Respond to climatechange
Environment
Corporate governanceand risk management
Governance13Energy managementEnvironment
Business ethics andanti-corruption
Governance14
Water resourcesmanagement
Environment
Human capitaldevelopment
SocietyGenerallyimportant
15Social welfareSociety
Policy trend analysis: Closely follow nationalstrategies and deeply research national andprovincial policies and regulations, combinedwith industry regulatory requirements, toanalyze sustainable development trends inthe industry.Company development planning: Identifyissues of significant importance to theCompany's development, based onbusiness strategies, operational tactics,and annual plans.Disclosure standards analysis: Integratereferences from Shenzhen StockExchange's Sustainable DevelopmentReport Guidelines, the Hong Kong StockExchange ESG Reporting Guide, GRIstandards, United Nations SustainableDevelopment Goals (SDGs), SASB,TCFD, and ISSB climate-related disclosurestandards.Capital market analysis: Referenceimportant topics covered by ESG ratingsand indices.Benchmarking analysis against peers:
Benchmark against sustainabledevelopment reports of leading domesticand international peers to identify issues offocus.
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6.1 Corporate governance
6.2 Risk control
6.3 Business ethics and
Anti-corruption
ContentsChapter Navigation
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6.1 Corporate governance
In the context of globalization and sustainable development, ESG factors play an importance role in measuring corporategovernance and ESG risk management. In order to increase our sustainable development capability, we review our performancein ESG and corporate governance and achieve a more transparent and efficient corporate governance structure throughbenchmarking excellent national and international peers and focusing on the concerns of international authoritative ratingagencies, thereby gaining the trust of both investors and stakeholders.We believe that the optimization of corporate governance means more than compliance with laws and regulations. Instead, weshould take the initiative to integrate ESG factors into Company Culture. In 2023, through gradually promoting the ESG conceptand cultural publicity training, we boosted the organic integration of the ESG concept by our management at all levels intotheir routine operations, management, and decision-making and ensure that the corporate strategy complies with high-quality,sustainable development principles, further improving our brand image, market recognition, and market competitiveness.We are conrmed that our ESG e?orts will drive the overall advancement in corporate governance, reduce operation risks, andachieve prudent corporate growth in the long run. Such a responsibility-oriented operation management model can not onlyprotect our cost-e?ectiveness but also benet all stakeholders, including employees, customers, suppliers, communities, and theenvironment. Following this cycle, it empowers corporate development, making us more competitive and attractive in the globalmarket and creating more value for society.
A well-established governance structure and clear governance responsibilities serve as the core of promoting e?ective corporategovernance. Our Board of Directors is fully responsible for corporate business operations and strategy development. Wehave set up ve professional committees, namely, the Strategy Committee, Remuneration and Evaluation Committee, AuditCommittee, Nomination Committee, and ESG Committee, under the Board of Directors. Each professional committee gives fullplay to its professionalism and operational e?ciency to ensure rational and e?cient operation decision-making.
General Meeting of Shareholders
Board of DirectorsSupervisory Committee
Strategy CommitteeNomination CommitteeAudit CommitteeRemuneration andEvaluation Committee
ESG Committee
We understand and rmly believe that the diversity of board members greatly benets corporate performance and have denedthe requirements for board diversity policies in the Sustainable Development Commitment.
As of December 31, 2023, we have nine board members, including three independent directors. Each director possessesrich industry experience and two directors have financial and legal affairs management backgrounds with professional riskmanagement acumen.
We strictly follow the Company Law of the People's Republic of China, Securities Law of the People's Republic of China, Anti-Unfair Competition Law of the People's Republic of China, Anti-Monopoly Law of the People's Republic of China, Regulationson Corporate Governance of Listed Companies, Stock Listing Rules of the Shenzhen Stock Exchange, Guidance of ShenzhenStock Exchange No. 1 for the Application of Self-Regulation Rules for Listed Companies - Standardized Operation of Main BoardListed Companies, Guidelines No. 17 on Self-Regulation of Listed Companies on Shenzhen Stock Exchange - SustainableDevelopment Report (Trial) and relevant regulations of regulatory authorities such as the CSRC, and develop and vigorouslyimplement the Articles of Association, Rules of Procedure for General Meeting of Shareholders, and other internal managementsystems, to continuously improve the internal control system, strive to reduce risks, and ensure the e?ective operation of thecorporate governance structure.
6.1.1 Concept
6.1.2 Strategy
6.1.3 Actions and practices
6.1.3.1 Board of Directors independence and diversity
In the pursuit of superior corporate governance, enhancing board independence isan important part. Board of Directors independence ensures that we make decisionsin an objective and fair manner to better protect the rights and interests of allstakeholders. During the Reporting Period, we give ongoing training sessions andtake improvement measures to strengthen the management of board independence.In March 2024, one of our directors resigned from their senior management duties,resulting in improved board independence. We are well aware that independentdirectors give full play to their professionalism in each committee under the Board ofDirectors with checks and balances and are committed to enhancing the proportionof independent directors, engaging female directors, and other tasks so as togradually enforce our board independence and diversity.
Ninestar has a total of
Including three
board members
independent directors
We consider various factors for the diversity of board members, including gender, age,nationality, cultural and educational background, professional experience, skills, knowledge,industry or other experience, expertise, independence, and term of service, when appointingoptimal board members.
We also take factors into account based on our business model and specific needs at anygiven time.
The Nomination Committee under the Board of Directors periodically discusses measurablegoals for board member diversity and provides recommendations to the Board of Directors.
The Nomination Committee checks diversied factors of the Board of Directors annually andsupervises the implementation of this policy to ensure its e?ectiveness.
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No.RoleName
Number ofthe boards
of listedcompanieswhere the
director
served(including
Ninestar)
Focus areas
StrategyCommittee
Remuneration
andEvaluationCommittee
NominationCommittee
ESGCommittee
AuditCommittee
1Director
WangDongying
Strategydevelopment/corporategovernance/talentdevelopment
√√
2Director
ZengYangyun
Corporateoperation/technicalconsulting
√3Director
KongDezhu
Corporateoperation/businessmanagement
√√4Director
WangYonghua
Public relations/
nancialmanagement
√√
5Director
ZhangJianzhou
Corporateoperation
√√6Director
MengQingyi
Strategyconsulting
√
Independentdirector
TangTianyun
Financialmanagement/riskmanagement
√√√
Independent director
XiaoYongping
Legalconsulting/riskmanagement
√√√
Independentdirector
WangGuoyou
Articialintelligence andautomation
√√√√Proportion of independent directors40%67%67%33%67%
We develop and abide by the Rules of Procedure for the General Meeting of Shareholders, Special Working Meeting Systemfor Independent Directors, Implementation Rules for the Audit Committee, Independent Director System, Rules of Procedure forthe Board of Directors, Implementation Rules for the Nomination Committee, Rules of Procedure for the Supervisory Committee,and Implementation Rules for the Remuneration and Evaluation Committee to further improve our corporate governancestructure, establish sound internal management and associated systems, and promote their e?ective implementation.
Special committees are vital components of corporate governance. In order to further enhance the decision-making quality,e?ectively monitor the management, ensure the compliance of our operational decision-making, and fully safeguard the rightsand interests of shareholders, during the Reporting Period, our special committees held several meetings complying withassociated rules of procedure, so as to enforce our risk management and achieve high-quality, sustainable development.
We believe that ongoing and targeted training contributesto strengthening the effectiveness of the Board ofDirectors and helps directors deepen their understandingof our operation and business management. In 2023,we organized and held online and offline training invarious forms for our directors, supervisors, and seniormanagement, with training content covering lawsand regulations, regulatory requirements, industrydevelopment, and other themes.
During the Reporting Period,our directors, supervisors, and senior management received
outsourced training sessions
Number of meetingsheld (time)Number of proposalsapproved (item)
6.1.3.2 Performance of the General Meeting of Shareholders, Board of Directors, and
Supervisory Committee
Special committee
Name of committee
member
Number ofmeetings held in2023
Number of attendances by proxyAttendance rate (%)Audit Committee
Wang Yonghua
0100Tang Tianyun0100Xiao Yongping0100Nomination Committee
Zeng Yangyun
0100Xiao Yongping0100Wang Guoyou0100Remuneration andEvaluation Committee
Zhang Jianzhou
0100Tang Tianyun0100Wang Guoyou0100
Strategy Committee
Wang Dongying
0100Kong Dezhu0100Xiao Yongping0100Wang Guoyou0100
Meng Qingyi0100
ESG Committee
Wang Dongying
0100Kong Dezhu0100Wang Yonghua0100Zhang Jianzhou0100
Tang Tianyun0100Wang Guoyou0100
2023
General Meetingof Shareholders
Board ofDirectors
SupervisoryCommittee
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Investor relations management serves as an integral part of corporate governance for listed companies. Through effectivecommunication with investors, we can better understand investors' expectations and demands, thereby optimizing the decision-making process and making corporate governance more transparent and e?cient. We have formulated the Investor RelationsManagement System to build and maintain trust with investors through proactive, honest, and transparent communications,reduce information asymmetry, improve market trust, increase corporate value, and fully protect investors' rights and interests,ensuring that the management of investor relations is in conformity with the following four principles.
Additionally, in order to maintain the decision-making fairness and transparency for related party transactions and avoid conictsof interest, we comply with laws and norms regarding related party transactions, prohibit directors, supervisors, and othersenior management personnel from harming the legitimate rights and interests of the Company and minority shareholders,ensure transactions are fully and internally controlled and supervised, follow the principles of fairness, and guarantees fairand reasonable pricing. If any director or independent director is an interested party to the matters for deliberation, the relateddirector is required to make a declaration on his or her initiative and abstain from voting and cannot cast votes on behalf of otherdirectors in order to reduce the circumstances under which the conict of interest may a?ect judgment or independence. Formajor related party transactions, we engage a third party with professional qualications to conduct an audit or assessment toensure the fairness and reasonableness of the transactions and consolidate the management of conict of interest.
Aiming to build a fair, reasonable, and competitive salary system, we have formulated the Comprehensive Salary ManagementSystem, which focuses on aspects such as salary structure design, salary determination, and performance appraisal. Thissystem successfully promotes human resources development by attracting, motivating, and retaining talent, thereby facilitatingthe achievement of our strategic objectives.
In addition, based on our existing ESG management system, we decompose the overall ESG management into variousdepartments and subsidiaries to clarify the work objectives and responsibilities of each entity and urge departments to integratethe requirements for sustainable development into their current responsibilities. By establishing the mechanism that linksperformance appraisal with salary, we associate certain ESG indicators with employee rankings and promotions, aiming tostimulate the motivation of all employees and guide them to voluntarily engage in sustainable development practices.
Five principles of comprehensive salary management:
In 2023, we openly disclosed six investigations on investors and over 271 investment agencies engaged in the investigationonline and offline. The number of investors engaging in the investigations reached more than 370. We accepted over 10investigations by investment agencies. A total of seven seller agencies were contacted closely in the whole year.
We abide by the Securities Law, Company Law, and other relevant laws and regulations, strengthen internal risk management,and identify and discover potential conicts of interest to ensure our decision-making process is fair and transparent and fullyprotect the legitimate rights and interests of minority shareholders.
Listed companies shall focus on integrity, stick to the bottom line, standardize operations,assume responsibilities in investor relations management activities, and create a soundmarket ecology.The principleof honesty andgood faith
6.1.3.3 Investor relations management
6.1.3.4 Management of conict of interest
6.1.3.5 Salary management and performance incentive
Investor relations management of listed companies shall be carried out on the basis offullling information disclosure obligations in accordance with the laws, regulations, rules andnormative documents, industry norms and self-regulation rules, internal rules and regulationsof companies, as well as ethical norms and codes of conduct generally complied with in theindustry.When carrying out investor relations management activities, listed companies shall treat allinvestors equally and create opportunities and provide convenience for minority investors toparticipate in the activities.
Listed companies shall take the initiative to carry out investor relations management activities,take investors' suggestions, and respond to investors' demands in a timely manner.
We openly disclosedOverThe number of investors
engaging in the investigationsreached more than
We accepted overinvestigationson the investor
investment agenciesengaged in the investigationonline and o?ine
investigations byinvestment agencies627137010
Our salary system complies with the principle of "unied concept, system, and management"to implement integrated salary management across the Company and our subsidiaries.Integration
Employees in the same position receive an equal salary. However, at the same time, wemake dynamic di?erentiation adjustments to salary ranks based on employee performance,years of service, and work attitude.Equity
Based on business strategic objectives, we have established a mechanism to link salary withperformance, emphasizing incentives for outstanding employees and promoting the growth ofoperating results.Incentive
Our salary system respects and draws upon market practices and experience from high-tech enterprises and we have gradually achieved market-oriented salary management incombination with actual business conditions.Marketorientation
Taking into account our history, current situation, and future development, we haveestablished a dynamic adjustment mechanism for the comprehensive salary managementsystem to adapt to changes in our development and achieve mutual growth between theCompany and our employees.Dynamism
The principle
of initiative
The principleof equality
The principleof compliance
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Objectives Progress
We fully respect the rights and interests of all shareholders and attach importance to safeguarding the equal rights andinterests enjoyed by minority shareholders. We have formulated and implemented the Management Policies for InformationDisclosure, Accountability Policy for Material Errors in Information Disclosure of the Annual Report, Management Policies forInside Information and Insiders Reporting and Registration, Internal Reporting System of Material Information, and ManagementMeasures for Separate Counting of Votes for Minority Shareholders. All directors, supervisors, and senior managementpersonnel ensure the truthfulness, accuracy, and completeness of information disclosure, and continuously strengtheninformation transparency management to safeguard the legitimate rights and interests of the Company and our shareholders,especially public shareholders.We fully protect minority shareholders' rights to know and make decisions and issue an announcement before convening thegeneral meeting of shareholders. The general meeting adopts a combination of on-site voting and online voting to ensure thatall shareholders can fully exercise their rights. Meanwhile, we disclose the results of separate vote counting from minorityshareholders in the announcement of resolutions of the general meeting for relevant proposals involving separate vote countingfrom minority shareholders, to fully reect the opinions of minority shareholders.In addition, we increase information transparency and strengthen communication with investors and keep communicationchannels open by telephone consulting, receiving visiting investors and roadshows, to respect and protect the rights andinterests of minority shareholders fully.In 2023, we issued four regular announcements and 123 interim announcements.Ninestar issued four regular announcements and 123 interim announcements.
A well-established risk control mechanism contributes to stable corporate operations, improves decision-making e?ciency, andenhances corporate competitiveness. Adhering to the "forward-looking, comprehensive, systematic, exible, and sustainable"risk management concept, we have formulated a management structure, risk identication process, and countermeasures thatmeet the business development and constantly raise our risk management level through dening risk management objectives toguarantee the orderly business development in the long term.
We have set up the Audit Department at the headquarters, which is responsible for supervising the establishment andimplementation of internal control systems, as well as compliant business operations. The Audit Department regularly reportsto the Audit Committee and is responsible to the Audit Committee. The Audit Committee consists of two independent directorswith professional risk management knowledge. The Audit Committee quarterly reviews the relevant internal audit work in theCompany and makes a report to the Board of Directors.In addition, the Legal Department at the headquarters takes charge of coordinating the Company's legal compliancemanagement. Under its leadership, the legal departments at di?erent levels strictly control the high-risk business areas in theprocess of enterprise operation in combination with operation management practice and carry out targeted compliance riskmanagement, including contract management, intellectual property rights risk management, and data compliance management.We have established a compliance management system from top to bottom and a comprehensive risk response andmanagement system to actively standardize business operations. We conduct standardized management through systems andpolicies such as the Compliance Management Program, Risk Investment Management Policies, Internal Audit Policy, InternalControl Management Policies, and Internal Control Risk Matrix and Risk List.We advance our risk management strategies by resolving around the following directions:
Enhance information disclosure transparencyStrengthen management of conict of interestImplement comprehensive salary and performance managementProtect minority shareholders' interestsImprove the coverage rate of compliance training
Completed
6.1.3.6 Protection of the rights and interests of minority shareholders
6.1.4 Metrics and targets
6.2.1 Concept
6.2.2 Strategies
6.2 Risk control
Identify potential risks, such as market risk, compliance risk, operational risk, andclimate change, through comprehensive internal and external information collection andanalysis.Risk identication
Assess potential loss severity and probability through the scientific methodology foridentied risk types.Risk assessment
Prioritize risks and determine risks that require key management and control based onrisk assessment results.Risk priority ranking
Formulate corresponding risk strategies, such as purchasing insurance, canceling high-risk projects, and strengthening internal controls, for every important risk.Formulation of riskresponse strategies
Monitor risk changes on a regular basis and report risk management progress andresults to relevant personnel.
Risk monitoring
and reporting
Enhance employee awareness and understanding of risk management and cultivate arisk culture through e?ective communication and training.
Risk communication
and training
Develop emergency plans for potential major risks to enable swift response andminimize the impact of the risks.Emergency plan
formulation
Ninestar issuedand
regular announcementsinterim announcements.4123
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We have established annual internal control audit plans guided by the risks through regular compliance reviews surroundingour operation and control. The Audit Department annually conducted operation management and specialized internal controlaudits on each subsidiary and business within our operational scope. In 2023, we conducted comprehensive audits from variousperspectives, including contract review, product development review, and return business review, using methods such as on-siteaudits, remote audits, inventory checks, interviews, and analytical procedures. We completed a total of 19 internal control auditprojects covering operation outlets in nine cities and issued corresponding audit reports.In 2023, we identified and discovered the following risks in our internal business audits through refining risk assessment,strengthening risk monitoring, improving management procedures, conducting risk training, and other methods to realize closed-loop risk management.
We engage a third-party accounting rm each year to conduct an audit of our annual nancial information and issue a third-partyauditing report, fully ensuring information transparency and the stakeholders' right to know.Additionally, we engage a professional third-party institution to audit our internal control management system and issue theInternal Control Audit Report.
As the regulatory environment becomes stricter at home and abroad, we are confronted with new business patterns andexternal risks. In order to carry out compliance management in all professional areas, integrate the compliance requirementsinto business procedures and the compliance culture into corporate values, and ensure that our operation management andemployee performance comply with laws, regulations, and industry standards in various countries and regions, in 2023, weformulated the Compliance Management Program and resolved around three dimensions, namely, key compliance, productcompliance, and basic compliance, to plan the management of seven compliance areas, sticking to the bottom line ofcompliance. Through improving the compliance management system, optimizing the compliance management and operationmechanism, and establishing a compliance management guarantee mechanism, we implement our holistic compliancemanagement in an orderly manner, clearly propose compliance management requirements for specic areas in a scenario-based manner, and dene the bottom line of behaviors.To establish a scientificand reasonable expensemanagement system, developclear expense standards andmanagement procedures,and strictly adhere to expenseapproval and control systems.To improve customer informationmanagement and guard againstnon-compliance behaviorsfrom perspectives such ascustomer profile completeness,customer credit assessment,customers' account receivablemanagement, contractmanagement, and responsiblemarketing management.
Enhance business diversity: Our internal auditteam conducts regular audits on each businessdepartment, assesses the effectiveness ofbusiness procedures, internal control systems,and the risk management system, and deepensour understanding and monitoring of eachbusiness segment. At the same time, the auditteam assesses the innovation capability, marketcompetitiveness, and sustainable developmentof business departments to provide a basis forour decision-making.Improve customer diversity: The internal auditteam categorizes customers and implementsdifferentiated audit strategies to ensure risksare controllable. Furthermore, we strengthenthe management of customer relationships,enhance customer satisfaction, and lower thecustomer churn rate.Conduct sales training: We regularly organizesales training sessions, which involve productknowledge, sales skills, and customercommunication, to help employees improvetheir performance. Meanwhile, we providecustomers with rich business resources, suchas market information and rival analysis, toassist employees in conducting their business.Internal audit follow-up and guidance: Ourinternal audit team follows up on the progressof problem resolution every six months ando?ers guidance until all problems are solved.
PurposeIdentied problemsResponse measures
6.2.3 Actions and practices
6.2.3.1 Internal audit6.2.3.2 External audit
6.2.3.3 Consolidate compliance management
6.2.3.4 Establish a compliance management operation mechanism
Analyze and streamline the current compliance management statusof each professional area and conrm compliance obligations.Complianceobligationstreamlining
Identify, analyze, and assess compliance risks in our management, establish a riskdatabase, and conduct routine maintenance.
Compliance
riskidentication
Conduct comprehensive inspection and supervision for all business areas through compliancemanagement returns, self-inspections, and compliance management audits, as well as verify thee?ectiveness of compliance management, forming closed-loop management.
Compliancemanagement
inspectionand supervision
mechanism
Adjust compliance management based on changes in regulations, policies, and systemprocedures in a timely manner, conduct in-depth investigations into recurring or significantcompliance risk problems for root causes, and continuously optimize compliance management.
Continuousimprovement
Some subsidiaries had lessdiversified business types:
Subsidiaries unduly relied onbig, leading customers andlacked sufficient promisingcustomers. The marketpositioning of certain productswas unclear, sales strategieswere ambiguous, and therewas insu?cient momentum inacquiring new customers.Sales contract managementwas unstandardized: Someclauses were unclear, oroperations were not strictlyaligned with the contractterms in the executionprocess.
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6.2.3.5 Establish a compliance management guarantee Mechanism6.2.3.6 Hold legal compliance training
6.2.4 Metrics and targets
In 2023, we held multiple compliance training sessions andlaw publicity activities, provided training regarding cases,important regulations, patent compliance, and general legalknowledge, and conducted special training on risk auditsand internal system establishment for our audit personnel.During the Reporting Period, we carried out 20 legalcompliance training sessions within the Company, with 227person-times.
In order to ensure the effective function of the compliance management guarantee mechanism, we have formulated theimplementation roadmap for compliance management planning in the next three years.
Implementation Roadmap for Compliance Management Planning
First stageBasicconsolidation
Second stageEnhancement
andimprovement
Third stageBusinessempowerment
2024
2026
Conduct comprehensive compliance managementBuild a compliance system framework
The e?ective function of compliance management"Company-wide compliance"
Shape a comprehensive compliance corporate imageBusiness empowerment
Compliance review is an integral procedure in business management.
Compliancereview
Establish a regular compliance training mechanism in each professional area, conduct targetedcompliance training for various employees, and set up a compliance training ledge mechanism.Compliancetraining mechanism
Enhance employees' honesty and compliance awareness through formulating and issuing codesof conduct for employee compliance, signing letters of commitment to compliance, and carryingout compliance training.Complianceculturecultivation
Consider employees' compliance performance and each department or business unit's compliancemanagement as significant factors in performance appraisal and give rewards and penaltiesbased on their contribution and accountability in compliance risk events.Complianceperformanceappraisal
2025
Open a compliance reporting channel to accept reports or clues provided by our employees,customers, and third parties regarding violations and protect the legitimate rights and interests ofwhistleblowers.Violationreporting
andinvestigation
ObjectivesProgress
Improve the internal control management systemEnhance the frequency and coverage scope of compliantauditsContinuously increase employees' compliance trainingcoverage rateEmpower our compliant operations and improve corporatecompliance image
Completed
We carried outwithlegal compliance trainingsessions within the Company
person-times20227
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6.3 Business ethics and anti-corruption
6.3.1 Concept
6.3.2 Strategies
Ninestar upholds the corporate values of "loyalty, truth-seeking, innovation and being win-win", complies with laws andregulations, the amfori BSCI Code of Conduct (hereinafter referred to as "BSCI Code of Conduct"), and "the ResponsibleBusiness Alliance Code of Conduct" (hereafter referred to as "RBA Code of Conduct"), prioritizing integrity in management andscrupulously abiding by business ethics. We resolutely oppose any form of illegal transfer of benets and enhance employees'business ethics through improving systems, dening standards, optimizing procedures, and strengthening training. Furthermore,we are committed to leveraging our inuence in the industry to impose business ethics constraints on stakeholders, includingsuppliers. We strive to create a business environment based on transparency, honesty, fairness, and integrity.
We have formulated and disclosed the Ninestar Anti-bribery and Anti-Corruption Management System to define corruptionbehaviors, management duties at all levels, and the reporting management mechanism. In order to strengthen business ethicsmanagement and provide standards, we have developed the Integrity and Self-discipline Management System, ProcurementManagement Regulations, Supplier Management Regulations, and other systems to clarify ethical standards and managementrequirements for all employees and suppliers.
Complying with the bottom-line requirements for compliance during our business management, we have formulated the "three-prohibit" business ethics principle to guide and support business decision-making and routine operation and management.We have established a top-down and e?ective business ethics governance structure. The Audit Committee leads our businessethics management and is responsible for leading and urging the development of an anti-bribery, anti-corruption, and anti-fraudculture within the Company. The Human Resources Department and Audit Department are the standing bodies for our businessethics management and take charge of the implementation of business ethics management measures.In addition, we set up the Integrity and Self-discipline Committee in 2023. The Integrity and Self-discipline Committee servesas the independent management body and has established four lines of defense to fulll its responsibilities for supervising andmanaging the Company's integrity and self-discipline through routine supervision and promotion, self-discipline publicity, and theestablishment and improvement of a preventive integrity control system.
Integrity and Self-discipline Committee
Ninestar Business Ethics Management Structure
"Three-prohibit" business ethics principle
Third line of defense
The Human Resources Department is responsible for establishing, improving,and effectively implementing internal control to reduce the opportunities forbribery, corruption, and fraudulent activities. Additionally, the department takescharge of taking appropriate and e?ective remediation measures in response.Second line of defense
The Audit Department is the standing body for the anti-bribery, anti-corruption,and anti-fraud work of the Company and is responsible for the implementationof the anti-bribery, anti-corruption and anti-fraud work of the Company and itssubsidiaries.First line of defense
Ethical management responsibilities are directly fulfilled in the process ofbusiness management and control and management measures are implementedfor ethical risks.
Prohibit employees from accepting any commission, donation, or sponsorship during the Company’soperation activities.
Prohibit any employee from making facilitation payments to accelerate or ensure normal governmentactions.
Prohibit any form of political donations or any form of donation or sponsorship towards organizationssupporting illegal activities or violating international conventions, organizations supporting terroristactivities, or organizations with religious, gender, or other forms of discrimination.
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The Audit Committee is responsible for overseeing the management'sestablishment of an anti-bribery, anti-corruption, and anti-fraud culture within theCompany, establishing a sound internal control system that integrates preventivemeasures, and guiding and monitoring the anti-bribery, anti-corruption, and anti-fraud work within the Company.Fourth line of defense
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6.3.3 Actions and practices
6.3.3.1 Ethics standards audit6.3.3.3 Cultivate integrity culture
6.3.3.2 Upgrade anti-corruption management
We conduct the ethics standards audit annually for business departments and subsidiaries, including the anti-corruption auditand internal control audit. In addition to routine audits, we carry out comprehensive ethics standards audits for all business typesevery three years. In addition, we conduct o?-o?ce audits and implement integrity audits for key positions, such as procurement,R&D, and engineering positions, of branches where we operate through the IT management system.In 2023, Ninestar conducted ethics standards audits 19 times to conduct stricter reviews of internal ethics and compliancestandards and comply with commitments to high-standard business ethics and transparency. We successfully identied onecase of business ethics violation and turned it over to the judicial authorities through a well-established internal reporting systemand audit procedures. In order to strengthen employees' integrity and self-discipline awareness, we have deepened our businessethics management and adopt a zero-tolerance attitude towards any ethical and legal violations through internal notications,training enhancement, and other open and transparent approaches.
Integrity culture constitutes an important part of Company Culture. Strengthening integrity culture construction is conducive tointernal corporate management through standards and systems and can reduce corruption and unethical practices, avoidingresource waste and poor e?ciency caused by improper management.
In 2023, while focusing on improving system revisions and advancing structure upgrades, we claried management standardsand strengthened independent supervision and management so as to constantly consolidate our anti-corruption managementpractices.
Business ethics training is carried out each year for all employees, including our board members, interns, andoutsourced employees. Moreover, we implement standardized management for employee conduct and promoteintegrity-related laws, regulations, and internal standards through displaying integrity publicity posters, organizingintegrity lectures, and sharing warning case studies. In 2023, 100% of our employees (including interns and part-timeemployees) received integrity and self-discipline training.
During the Reporting Period, we provided all regular employees at senior, middle, and primary levels with anti-corruption and business ethics training. With case teaching, online teaching, excellent enterprise communication andother methods, integrity training is conducted for employees each quarter. In 2023, we conducted six special trainingsessions on anti-corruption and business ethics construction.
All employees are required to comply with Employee Integrity and Self-discipline Regulations, with a 100% signing rate.
We conduct regular and specialized integrity training for suppliers every year. We require all suppliers to sign theAgreement on Business Ethics Adherence, which is centrally archived and managed by the President's O?ce. In 2023,the signing rate for the Agreement on Business Ethics Adherence reached 100% among suppliers. We incorporateintegrity standards into the supplier management procedures and require suppliers to develop policies and systemsrelated to business ethics and anti-corruption, ensuring integrity in our cooperation.
Special training
Company-wide signing
Promote integrity across partners
Regular training for all employees
We revised the Integrity and Self-disciplineManagement System. The Human ResourcesDepartment, Audit Department and otherassociated organizations have jointly managedthe Company's integrity and self-discipline anddened respective management responsibilities,further expanding the management scope ofour integrity standards. Moreover, we increasedmanagement standards and requirements forsensitive position management, gift handling,supervision and audits, and measures forrewards and penalties. We also added theImplementation Rule for Integrity and Self-discipline Review to clarify managementstandards and procedures for reporting anddefine handling standards for employees'corruption behaviors with varying degrees andconsequences.
System improvementIndependent supervision
We set up an Integrity and Self-disciplineCommittee composed of directors and seniormanagement personnel. The Integrity andSelf-discipline Committee is responsiblefor special integrity and self-disciplinemanagement, including organizing routineintegrity management, strengthening integritypublicity, improving institutional systemestablishment, coordinating audits on integritymanagement, and appraisal and punishment.The Integrity and Self-discipline Office is thestanding body of the Integrity and Self-disciplineCommittee and takes charge of developingsound regulations and standards regardingself-discipline management, organizingintegrity promotion activities, accepting andinvestigating employee complaints and reportsregarding disciplinary and regulation violations,establishing a comprehensive integrity and self-discipline management le, and register gifts formanagement.
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6.3.3.4 Improve the anonymous reporting mechanism
Aiming to create an honest enterprise culture atmosphere, we have set up a standardized reporting management process andpublic reporting channels, including a dedicated telephone line, exclusive mailbox, QR codes, physical letterbox, and otherreporting approaches. We have placed promotional materials in various locations within the Company, such as factory areas,office buildings, employee cafeterias, and residential areas, to encourage all employees, suppliers, business partners, andother relevant parties to anonymously report any instances or potential instances of corruption, fraud, or violation through theaforementioned reporting approaches.
Ninestar accepts anonymous reporting and encourages real-name reporting so that we can provide timely feedback onthe investigation's progress. We undertake to fully protect thereporter's personal information and legal rights to protect thereporter from being framed and retaliated against. We requirethat the name, company, department, position, contact, and otherdetails of the whistleblower or the reporter can be used only whenwe investigate and receive evidence from the whistleblower orthe reporter or when we inform the whistleblower or the reporterof the handling results. It is not allowed to be used in any othersituation. In regard to personnel responsible for integrity and self-discipline management, we require them to strictly maintain theconfidentiality of whistleblower identities and related materials,protecting the legitimate rights and interests of whistleblowers.For the acts infringing the reporter's legal rights and interests, wewill impose dismissal, termination of employment or other means.And any violation of the law will be subject to transfer to thejudicial authority for legal treatment.
Additionally, we have also established an anonymous feedback channel for employees to provide rational suggestions andcollect appeals from employees.During the Reporting Period, we received a total of 11 reports regarding integrity and self-discipline practices, all of which wereveried to be true. The Company's Integrity and Self-Discipline Committee is currently following up on these cases, and onecase has been transferred to the judicial authorities. We will continue to take concrete actions to combat corruption behaviors.
Confirmation of theresults
Report informationInvestigation
Completion of theinvestigation and ling
Completion of theinvestigation report
Confirmation of thereport informationInitial review of thereport information
Issuance of theinvestigation reportNinestar's reporting handling process
?Email: lianjiezilv@ggimage.com?Tel.: 0756-6258192?Fax: 0756-8539856
Other anonymous reporting channels:
6.3.4 Metrics and targets
Objectives ProgressPromote regular business ethics auditsImprove ethics standards audit and anti-corruption policy auditsystemsRene the decision-making management mechanism based onbusiness features and advance departments to participate inintegrity remediationPerfect employee appeal and feedback management mechanismto listen to their opinions on anti-corruption workPromote integrity across partners and strengthen integritymanagement for stakeholders including suppliersExpand the training scope of business ethics standards foremployeesEmployees comply with Employee Integrity and Self-disciplineRegulations with a 100% signing rate
Completed
Upon receiving reports of violations or suspected violations of integrity and self-discipline practices, the Audit Department of theCompany takes charge of promptly recording and reporting such acts to the Integrity and Self-discipline Committee. The HumanResources Department will then intervene and conduct investigations. If the reported matters are veried to be true, we willprovide the whistleblower with appropriate rewards in accordance with relevant reward and penalty management measures. Forreported matters involving illegal or criminal activities, we will transfer them to the judicial authorities for proceedings.
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7.1 Responsible Supply
Chain Management
7.2 Employees' Rights,
Interests, Diversity andEquity
7.3 Human Capital
Development
7.4 Product Responsibility
7.5 Information Security and
Privacy Protection
7.6 Occupational Health and
Safety
7.7 Community Philanthropy
ContentsChapter Navigation
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7.1.1 Concept
7.1.2 Strategies
7.1.3 Actions and practices
Procedure 1: Supplier onboarding
Strategy 2: Emphasizing suppliers' ESG management responsibilities
Hierarchical supplier management
Ninestar's hierarchical supplier management system
Regular review and assessment mechanism
7.1 Responsible Supply Chain Management
We strictly abide by relevant laws and regulations such as the Civil Code of the People's Republic of China and internationalsupply chain management requirements such as the RBA Code of Conduct, the BSCI Code of Conduct, and the SocialAccountability 8000 International Standard (SA8000). We have also revised our Supplier Management Policies and SupplierSelection, Certification, and Onboarding Procedures to strengthen our responsible supply chain management system. Inaddition, to establish long-term cooperation and a positive relationship with suppliers for mutual growth and progress, weprioritized respecting and safeguarding the legitimate rights and interests of our suppliers through fair competition, reasonablepricing, and prompt payment. We also put forward management requirements for the sustainable development of our supplychain.During the Reporting Period, we introduced the Supply Chain Sustainable Development Management Policies, integratingsustainable development into our procurement strategy. This encompassed initiatives such as labor management and conictminerals management within our supply chain. Furthermore, we remain committed to mitigating environmental footprints acrossour supply chain, disseminating sustainable development management guidelines to all suppliers to enhance their sustainabledevelopment management capacities, fortify our sustainable supply chain, and mitigate operational risks.
We prioritized two strategies: "enhancing sustainable development risk management among suppliers" and "emphasizingsuppliers' ESG management responsibilities". We focused on suppliers' environmental and social accountability, with strictprohibitions against child labor, forced labor, corruption, and malpractices. To bolster responsible supply chain management,we implemented ESG assessment criteria for suppliers and expanded our supplier auditing processes. Recognizing theenvironmental impacts of supply chain operations, such as resource consumption and waste generation, we are dedicated toreinforcing green management practices throughout the supply chain to drive the green transformation of our supply chain andcreate an environmentally friendly supply chain.
We have established a hierarchical supplier management system to optimize supplier resources, enhance supply chain stabilityand e?ciency, and strengthen the resilience risk management of the supply chain.
We classied suppliers into classes A, B, and C based on their characteristics and cooperation levels, as well as factors likeproduct/service categories, purchasing expenditures, duration of cooperation, and performance assessment results.
Suppliers of printer, chip andconsumable businessSuppliers of components and partsSuppliers of packaging materials,equipment, logistics
Class A suppliersClass B suppliersClass C suppliers
Main components of productsNon-critical components of productsSupplies not directly applied to products
We have dened the management of regular review and assessment of suppliers, with monthly and annual review plans inplace. We incorporated ESG factors such as product quality, compliance management, supply chain labor management, andconict minerals into performance assessment and categorized superior and inferior suppliers based on regular assessment andon-site audit results to improve the risk management mechanism for suppliers.
We have revised our whole-process management mechanism for suppliers to emphasize suppliers' ESG managementresponsibilities. We integrated ESG labor management and conict minerals criteria into our procurement and supply chainaudits. Additionally, we embed ESG management responsibilities for suppliers into cooperation agreements, performanceassessments, and on-site inspections. In 2023, we dened ESG management requirements for our key suppliers, incorporatingESG factors into our supplier onboarding and audit so as to thoroughly evaluate our suppliers' performance and reinforce oursuppliers' commitment to ESG management responsibilities.
7.1.3.1 Optimize whole-process supply chain management
Based on the Supplier Management Policies and the SupplierDevelopment and Onboarding Management Regulations, wedened the requirements for the development and onboardingof suppliers and conducted a comprehensive assessment ofareas such as business information, ethical sourcing, labormanagement, conict minerals management, and environmentalcompliance. Compliance with business ethics, product quality,and safety standards, and labor regulations was a prerequisitefor supplier onboarding. We required our core suppliers toobtain certifications for the ISO 9000 quality managementsystem, QC 080000 hazardous substance process managementsystem, ISO 14000 environmental management system, andISO 45001 occupational health and safety management system.In 2023, we onboarded 165 new suppliers, all of whom havedemonstrated a commitment to environmental and socialresponsibilities without any real or potential signicant negativeimpacts.Adhering to the concept of fostering a responsible supply chain,we have underscored ESG responsibility management for oursuppliers and have formulated ESG management requirementsfor suppliers, putting forward responsible managementrequirements around labor management, business ethics, andconict minerals management of suppliers.
Strategy 1: Enhancing sustainable development risk management among suppliers
All suppliers
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Ninestar Supply Chain ESG Management RequirementsOverallrequirements:
Monthly assessment and regular review:
Supply chainlabormanagementrequirements:
Conict mineralsmanagementrequirements:
Business ethicsrequirements:
Hazardoussubstancescontrolrequirements:
Annual compliance audit:
In accordance with the Supplier Selection, Certication, and Onboarding Procedures, the SupplierAssessment Management Procedure, the Environmrnt, Health and Safety (EHS) Questionnaireand the Social Responsibilities Assessment Form, we assess the labor management andproduction safety of suppliers in the onboarding process, and also continuously assess indicatorssuch as responsible management in the course of cooperation. We regularly assess suppliers'management of occupational health, safety, and environmental practices, organize supplier self-assessments on various aspects, including child labor, forced labor prohibition, health and safetystandards, freedom of association, discrimination prevention, disciplinary measures prevention,business ethics, and wage and hour compliance, and take corrective actions or terminate thesupplier relationship in the event of non-compliance with labor, ethics, or other guidelines.
Based on the Supplier Quality and PerformanceAssessment Report and the Supplier Regular ReviewForm, we comprehensively assess suppliers' productquality, delivery, service, and prices and reviewquality, environmental, and hazardous substancemanagement systems to encourage ongoingimprovement among suppliers.
We integrate ESG labor management into our supplier audit and assessment processes, prioritizingsuppliers' adherence to human rights standards. We mandate suppliers' compliance with the BSCICode of Conduct and enforce social responsibilities measures, including respecting workers' rightsto freely and democratically form trade unions. Additionally, we prohibit suppliers' discriminationagainst workers based on union membership and ensure their respect for workers' right tocollective bargaining. Furthermore, we emphasize suppliers' responsibilities for no discrimination,fair compensation, decent working hours, prohibition of child labor, protection of junior workers, andprevention of forced labor.In accordance with the Declaration of Non-use of Conict Minerals and the Conformity Statementof Responsible Business Alliance (RBA) Code of Conduct (RBA Conformity Statement), suppliersare required to fulll their commitment to not use conict minerals and observe their statement ofconformity to the provisions of the RBA Code of Conduct.
In accordance with the Business Ethics Agreement and the Integrity and Self-discipline Agreement, suppliers are required to sign an agreement on integrity, law-abiding and fair competition.
In accordance with the HSF Management Procedure and the Suppliers' Conformity Statement ofRestricted Use of Hazardous Substances, we require that suppliers with related business mustcomply with the requirements of the REACH Regulation, RoHS Directive, and the standards for theattestation of Chinese environment mark.
We revised our supplier scorecard to includelabor management, product price and cost, qualitymanagement, service quality, and occupational safetyand health.
Procedure 2: Regular supplier audit and performance assessmentIn accordance with the Supplier Performance Assessment Management Regulations, we regularly review suppliers and conducton-site assessments to identify the potential risks of the supply chain and key improvement areas, as well as guide suppliers inenhancing their sustainable management capabilities through performance assessment.
Assessment dimension (Total score: 100)Weight ratio %System certication requirements10Raw material quality13Quality of delivered product13Sample timely delivery rate2Complaint timely handling rate5Timely return and exchange rate5
Assessment dimension (Total score: 100)Weight ratio %
Price and cost13Product timely delivery rate5Trade security compliance10Supply chain labor management8Conict minerals management6EHS management level10
System certication requirements
Raw material quality
Quality of delivered product
Sample timely delivery rateComplaint timely handling rateTimely return and exchange ratePrice and costProduct timely delivery rateTrade security complianceSupply chain labor managementConict minerals management
EHS management level
0%3%6%9%12%15%
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Procedure 4: Supplier exit
We assess all suppliers on the Recognized Supplier List according to the above dimensions and weight, and classify thesuppliers according to the assessment results.
In order to continuously improve our management of suppliers' ESG responsibilities and deepen our focus on sustainablesourcing, in 2023, we extended our supplier management and assessment coverage from Class A (Tier 1) suppliers to ClassC (Tier 3) suppliers, incorporated ESG elements into supplier audits, with requirements for environmental safety, socialresponsibilities, and labor health and safety, and engaged a third party to conduct two external audits. During the ReportingPeriod, we audited 705 suppliers, a 72% increase compared to the previous year. The audit covered aspects like product quality,labor management, and conict minerals management. Of these, 61 suppliers were found non-compliant and given a six-monthremediation period, during which we assisted them. If they fail to meet requirements after this period, they will be disqualied.
Number of audited suppliers
Audit Information of Classes 1, 2 and 3 Suppliers of Ninestar in 2023
In addition to on-site audits, wealso distributed ESG-specificquestionnaires to suppliers eachyear to assess and confirm theirperformance in environmentalprotection, anti-corruption, conictminerals management, and labormanagement.
Number of suppliers involved inthe CMRT
Number of returnedconict minerals reportingtemplates (CMRT)
Number of suppliers accepting labormanagement audit
Procedure 3: Ex-post remediation for supplier non-compliance
To address non-compliance among suppliers identied in the supplier audit, we implement a structured remediation procedureto promote the improvement of our supply chain. First, we engage in detailed communication with the non-compliant supplier,indicating the specic areas of non-compliance and requesting the submission of a remediation plan within a specied timelimit. This plan must be concrete, achievable, and include a clear timeline. During the remediation, we provide the necessarysupport and guidance to help the supplier understand our requirements and achieve compliance. Each supplier is granted twoopportunities for remediation. If the supplier still fails to meet our ESG standards after the rst remediation attempt, we providecontinued guidance. If the supplier still fails to meet the requirements after a second attempt, we will consider terminating thesupplier relationship.Among the suppliers audited in 2023, 61 failed, mainly due to the following problems. In response, we promoted activemanagement and promptly urged suppliers to make improvements in an orderly manner.
ClassAssessment criteriaA≥ 90B90 > score ≥ 80C80 > score ≥ 70D70 > score ≥ 60Escore< 60
Class 2 suppliers
Class 3 suppliers
Class 1 suppliers
For suppliers that do not comply with the codes of conduct, we impose penalties such as warnings and notifications orimmediate termination of cooperation, depending on the severity of the case, as well as nes and other appropriate penalties.During the Reporting Period, 61 suppliers failed the audit, but they are currently in the remediation period and their cooperationhas not been terminated for the time being.
Main problems identiedSupplier improvement results
Supplier laboroccupationalhealthmanagement
Some suppliers lacked ISO45001 certication or hadnot renewed it, indicating their insu?cient attention tooccupational safety and health.
Define the management requirements for suppliers'labor health and safety according to the supplier ESGmanagement requirementsStrengthen training for suppliersWorking hoursof suppliers'employees
Some suppliers have employees who work longovertime hours (also a common problem in theindustry) and have fewer days off. While thisovertime work is largely voluntary, we recognize thatsuch non-compliance can have adverse societale?ects.
Dene the requirements for working hours accordingto the supplier ESG management requirements, andrecord the total working hours and number of days o?for employees.Strengthen training for suppliersReach an agreement with the supplier concerned toremedy the problem in order to reduce the negativeimpact on society
Supplier integritymanagement
One case of corruption was identified in the auditand referred to the judicial authorities.
Dene the business ethics requirements for suppliersaccording to the supplier ESG managementrequirementsConduct regular supplier ethics trainingImprove the internal business ethics managementstructure and risk managementSign the Integrity and Self-discipline Agreement ofsuppliersConict mineralsmanagement
Suppliers fail to adequately manage theirdownstream partners, resulting in incomplete oruntimely feedback on the research questionnaire.
Define the relevant requirements according to thesupplier ESG management requirementsStrengthen training for suppliersProduct deliveryquality
The quality of some suppliers' products fails to meetour product quality standards.
Identify the causesProvide a six-month remediation period and assist inthe remediation, and disqualify the suppliers that failto complete the remediation within the period.Product deliverytime
Some suppliers delay delivery due to a number offactors.
Identify the causesProvide a six-month remediation period and assist inthe remediation, and disqualify the suppliers that failto complete the remediation within the period.Supplier ESG Audit
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Make clear the standardConduct audits regularly
Make integrity commitmentStrengthen training
Business ethics requirements for suppliersare defined in our supplier ESG managementrequirements.The Business Ethics and Integrity Control Proceduresexplicitly states that employees are prohibited fromsoliciting or accepting money, goods, or any form ofgifts from suppliers in any name. Likewise, suppliersare required not to offer gifts, goods, negotiablesecurities, or resort to any other covert means ofproviding undue benets to any Ninestar employee,whether directly or indirectly, in private.
We conduct regular ESG audits and questionnairesurveys of our suppliers, promptly identifyingand addressing any ethical risk. For suppliersfound to have integrity risks, we implementproactive management, providing them with a six-month remediation period. Failure to completethe remediation within this time limit will result indisqualication from our supplier list.
In accordance with Ninestar's regulations suppliersare required to sign the Integrity and Self-disciplineAgreement, and the signing rate was 100% duringthe Reporting Period.
We conduct regular training on business ethicsmanagement for suppliers to foster the concept ofintegrity.
We build long-term, stable relationships with our suppliers, recognizing the high quality of their services and products andinspiring them to maintain high standards consistently. According to the Supplier Development and Management Procedure, weprovide a series of incentives for suppliers rated A in the previous year. These incentives include but are not limited to o?eringextended contract durations and providing preferential procurement opportunities.We also acknowledge suppliers exhibiting exceptional ESG performance. The top-ranked supplier in the annual assessmentreceives an "Excellent Supplier" plaque as a public acknowledgment of its outstanding ESG performance. Additionally, we tailorthe assessment criteria and weight for ESG labor management and conict minerals management according to the scale andscope of operations of our suppliers. We plan to progressively increase the weight of these factors in the future to ensure thatour supply chain meets higher standards in terms of human rights and environmental protection.At the same time, we acknowledge the necessity of implementing both incentives and supervision to motivate suppliers to betterfulll their ESG responsibilities. For incentives, we conduct regular supplier assessments and present accolades such as "BestSupplier" to encourage improved ESG performance among our suppliers. For supervision, we enforce a demerit point systemfor suppliers failing to meet ESG standards. For instance, breaches in labor management result in demerit points in the supplierassessment. This helps ensure suppliers' compliance with ESG requirements.
E?ective supplier integrity management ensures the legality and compliance of our business dealings with suppliers, fosters afair competitive environment, prevents bribery and undue benets transfer, and supports the sustainable growth of our suppliers.Moreover, reinforcing integrity within our supply chain is integral to our Company Culture, instilling values of transparency andintegrity among our employees and elevating our ethical standards.
We are fully aware of the potential for signicant adverse impacts related to the mining, transportation, trading, processing, orexport of minerals from conict-a?ected and high-risk areas and we recognize our corporate responsibility in upholding humanrights and avoiding any adverse societal impacts.We comply with domestic and international laws and guidelines such as the Chinese Due Diligence Guidelines for ResponsibleMineral Supply Chains, the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conict-A?ectedand High-Risk Areas, and the Dodd-Frank Wall Street Reform and Consumer Protection Act, and are committed to adoptingthe requirements on conict minerals therein. We formulated an internal policy titled Due Diligence Management Policies forResponsible Mineral Resource Supply Chains and publicly disclosed it on the official website. Besides, we incorporated itinto the contracts with mineral resource suppliers and revised the internal procurement policy to include the conict mineralsmanagement. This policy applies to Ninestar and its subsidiaries' mineral supply chains, encompassing tungsten, tin, tantalum,gold, nickel, cobalt, manganese, lithium, graphite, mica, copper, and aluminum, and stipulates the following provisions:
Money laundering, taxpayments to the government,fees and royaltiesBribery and fraudulentmisrepresentation of theorigin of minerals
Direct or indirect support to non-state armed groups and their riskmanagement; public or privatesecurity armament and its riskmanagementOccupational health and safetyand its risk management; childlabor and its risk management
7.1.3.2 Optimize supplier incentive policies
7.1.3.3 Supply chain integrity management
7.1.3.4 Supply chain conict minerals management
Land rights, emissions andsmall workshops and their riskmanagement
Serious violations relatedto mining, transportation, ortrading of minerals and their riskmanagement
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We have taken various measures to gradually expand the audit coverage and intensity of conict minerals, such as increasingaudit staff, optimizing the audit procedure, and enhancing supplier training on conflict minerals management in order tostrengthen our ability to manage conflict minerals in the overall supply chain and to reduce operational risks. During theReporting Period, we conducted 133 supplier training sessions on topics including labor management and conflict mineralsmanagement.
For suppliers who are unable to cooperate with us in completing conict minerals audits, we will take the following steps:
We will rst communicate with thesesuppliers to understand why theyare unable to cooperate in the audit,provide the necessary guidance andsupport to help them understand theimportance of the audit, and assistthem in completing it.
If any supplier is unable to cooperatein completing the audit aftercommunication and guidance, wewill issue a warning and require it tocomplete the remediation within aspecied time limit.
If the supplier fails to complete theremediation within the time limit, wewill disqualify it as a supplier andremove it from our supply chainin accordance with our suppliermanagement policies.
We build our conict minerals management capacity from two perspectives: internal management and external management.
7.1.3.5 Conict minerals management capacity building
? Analyze leading peer practices, improve the conict mineralpolicy system to cover the procurement and use of rawmaterials from areas of conict minerals, and meet customerrequirements.? Study and select the working methods and proceduresrelated to conflict minerals and put them into practice toimprove conict minerals management.? Deepen indicator management on the basis of the focuspoints of assessment and increase the transparency ofdisclosure.? Develop a publicized conict minerals management policiesand a declaration of non-application to conict minerals.? Conduct due diligence on suppliers' conflict mineralscommitments to avoid the use of controversial materials.? Set quantitative targets for the purchase of controversialmaterials.? Engage an external agency to conduct third-party conflictminerals certication.? Develop due diligence and material traceability plans forsupply chain conflict minerals and make clear the publicdisclosure of investigation results based on the OECDDue Diligence Guidance for Responsible Supply Chains ofMinerals.
? Clear objectives: We plan to achieve a 100% signing rateof the Commitment To Not Use Conflict Minerals in theSupply Chain by 2025 for all suppliers with whom we havemajor business dealings.? Traceability management: We require relevant suppliersto sort out and provide proof of the origin of the materialssupplied, communicate with upstream suppliers in thesupply chain, and work together to ensure that the materialspurchased can be traced back to at least the smelting plantto ensure that the metal raw materials purchased originatefrom non-conict mineral smelting plants and to strengthenthe capacity of traceability management of conict minerals.? Encouragement and supervision: We encourage andsupervise suppliers to formulate and implement internalpolicies on conict minerals management and to increasethe transparency of information.? Empowerment training: We have already delivered conictminerals-related training to key suppliers and intend toexpand this training to all suppliers online or o?ine.
7.1.4 Indicators and objectives
ObjectivesProgress
Distribute questionnaires on social responsibilitiesto suppliers every yearConduct regular quality improvement training forall suppliers every yearBy 2025, 100% of suppliers of major businessdealings will need to sign the Commitment To NotUse Conict Minerals in the Supply Chain
Supplier audit: 705 suppliersThe response rate of conict minerals survey:
81.48% (341/418)
Supplier training: 133 training sessions with 329participants
We take the Due Diligence Management Policies forResponsible Mineral Resource Supply Chains as thebasic standard for promoting the management of supplychain conflict minerals. At the same time, our subsidiariesestablish their own applicable conict minerals managementpolicies in accordance with the Dodd-Frank Act's nal ruleon conict minerals management and conduct managementof supply chain conflict minerals on an annual basis in avariety of applicable ways to effectively identify and tracethe source of conict minerals raw materials and ensure thelegality of the source of the raw materials.In 2023, we completed the conflict minerals reportingtemplates (CMRT) for a total of 418 suppliers, 90% of whichhave signed a Commitment To Not Use Conflict Mineralsin the Supply Chain with us, while a total of 341 supplierscooperated in completing conict minerals audits, resultingin a completion rate of over 80%.
Communication and guidanceWarning and remediationDisqualication of supplier
Internal management External management
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7.2.1 Concept
7.2.2 Strategies
7.2.3 Actions and practices
7.2 Employees' Rights,
Interests, Diversity and Equity
We recognize that employees are the cornerstone of Ninestar'sdevelopment and are committed to constructing an inclusive,equitable, and collaborative work environment. By attracting andnurturing exceptional talent, we encourage employees from diversebackgrounds with varied experiences to unleash their wisdomand creativity. We aim to provide each employee with a humaneworkplace, open channels of communication, and competitivesalary and benets, comprehensively safeguarding their legitimaterights and interests.To foster a welcoming work environment, we continuously optimizeour employee care system, addressing employees' concernsand needs in both work and life, effectively enhancing their jobsatisfaction and sense of belonging. Through diverse cultural andrecreational activities, we enrich employees' leisure time, guidingthem to pursue a better quality of life and achieve harmony betweenwork and life.
Freedom of association andright of collective bargainingNo discriminationFair remunerationDecent working hoursOccupational health andsafetyNo employment of childlaborProtect junior workersNo employment without aguaranteeNo forced labor
7.2.3.2 Ninestar complies with the labor rules stated by the BSCI Code of Conduct
Respect the workers’ right to set up the trade union in a free anddemocratic manner and to participate in the bargainingProvide equal opportunities, and don’t discriminate against any workerRespect the workers’ right to get fair remunerationComply with the regulations on working hoursEnsure a healthy and safe labor environment, assess risks and take allnecessary measures to eliminate and reduce risksDon’t employ any worker under the legal working ageProvide junior workers with special protectionFormulate labor contracts and employ workers in accordance with legalprovisionsNo bondage, human tra?cking or involuntary labor in any formWe adhere to the respect and compliance of laws, consistentlyadhering to relevant national laws and regulations such as theLabor Law of the People's Republic of China, the Civil Code ofthe People's Republic of China, and the Social Insurance Law ofthe People's Republic of China. Moreover, we strictly adhere toapplicable laws and regulations in the locations where we operate.We actively refer to international standards, including the UniversalDeclaration of Human Rights, the Convention Concerning Forcedor Compulsory Labor, the Minimum Age Convention, the RBA Codeof Conduct, and the BSCI Code of Conduct, and we are committedto upholding and safeguarding the legitimate rights and interests ofour employees.We uphold the principle of being people-oriented, strictly prohibitingthe employment of child labor and opposing any form of forcedlabor. Through these measures, we are dedicated to providing allemployees with a fair, safe, and respectful working environment,ensuring that the legitimate rights and interests of each employeeare fully protected while promoting our sustainable developmentand fulllment of social responsibilities.We have established a mechanism for labor employment reviewand supervision, conducting audits at various stages, such as newemployee recruitment and daily human resource management toprevent and control related risks, as well as conducting irregularself-inspections and checks.
We respect employees' freedom of association and expression,allowing and respecting employees to freely associate and engagein collective bargaining under the premise of complying with locallaws and regulations. We implement a constructive bidirectionalcommunication mechanism, emphasizing the role of employeedemocratic management, participation, and supervision. We haveestablished a reasonable suggestions office and an anonymousgrievance channel, providing employees with diverse democraticcommunication platforms to ensure their right to information,participation, and supervision in corporate management.We have established a federation of trade unions as an effectivechannel for communication between employees and the Company,with over 8,900 existing union members. Moreover, we understandand respond to employee appeals through various means, suchas the congress of workers and sta?, the reasonable suggestionso?ce, and interviews with employees.
7.2.3.1 Democratic communication by employees
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Ninestar's democratic communication and employee survey mechanism
Workenvironmentsatisfactionsurveys
We have placed anonymous reasonable suggestions and anti-corruption reporting noticeboards in crowded areas, advocating democratic communication and anti-corruptionreporting across the Company.All employees can anonymously or openly lodge complaints or suggestions regardingpersonal work and life issues and various aspects of the company through channels such asphone calls, suggestion boxes, DingTalk, and email on a legal and compliant basis.The Human Resources Department promptly follows up on employee complaints andsuggestions, categorizes and forwards them after verification, and relevant departmentsprovide feedback or solutions to the reasonable suggestions o?ce within ve working daysthrough email or written form.
On April 25, 2023, the headquarters' Human ResourcesDepartment established the reasonable suggestions o?ce.During the Reporting Period, a total of 105 employeereasonable appeals were received, and the HumanResources Department was responsible for following up andresolving them.
We conduct internal management surveys through methods such as Gallup Q12 employeequestionnaires and DingTalk platform surveys, covering aspects such as job satisfaction,team atmosphere, learning, and growth.Based on the feedback and analysis of the surveys, the Human Resources Departmentformulates and implements improvement plans to enhance employee dedication, increaseteam cohesion, and optimize work processes.We ensure that employees have full rights in corporate governance, achieving democraticmanagement within the Company.
Every quarter, we conduct anonymous work environment satisfaction surveys for employeesin three dimensions: workplace, company canteen, and employee dormitories.In 2023, we received a total of 11,474 anonymous feedback responses, with satisfactionrates as follows:
Workplace property satisfaction: 95.8%Dormitory satisfaction: 97.06%Canteen satisfaction: 92.48%Based on the survey feedback, we identied 78 items for improvement. By December 2023,54 improvement items had been completed, and 24 were in progress.
Ninestar's anonymous reasonable suggestion andanti-corruption reporting notice boards
Employees are the most valuable asset of the Company, driving continuous development and innovation. A diverse and vibranttalent team is crucial to the success of an enterprise. Therefore, we are steadfast in our commitment to building an inclusiveand diverse work environment that promotes mutual respect and understanding among employees and inspires innovativethinking and new approaches to problem-solving. We recognize that employees' diverse backgrounds are essential sourcesof innovation and competitiveness for the Company. Hence, we proactively take measures to attract outstanding talents fromdi?erent cultures, genders, age groups, and professional backgrounds, bringing broader perspectives and deeper insights to ourenterprise.
7.2.3.2 Diverse employee groups
Reasonablesuggestions
Internalmanagement
surveys
Total number of employees 21,997
By age
Labor contract employees
Retired reemployedemployees
90.41%
0.36%
5.13%
4.10%
Employees workingunder labor dispatching
agreementsInterns
Employees aged 50 and above
11.38%
Employees aged29 and below
39.77%
Employeesaged 30–49
48.85%
Productionpersonnel45.18%
Overseasemployees
41.66%
Employees from theChinese mainland
58.32%
Employees fromHong Kong, Macaoand Taiwan 0.02%Technicalpersonnel
22.10%
Sales personnel
24.95%
Full-time femaleemployees 42%
Full-time maleemployees 58%
Employees holdingjunior high schoolcerticate and below
24.45%
Employees holding masterdegrees and above 7.20%
Employees holdingsecondary technical schooland high school certicates
15.23%
Employees holdingbachelor degrees
31.79%
Employees holding
postsecondary non-tertiary educationcertications 21.33%By profession
By gender
By educational qualication
By geographical region
Administrativepersonnel 4.70%
Financialpersonnel 3.07%
The statistics on employees of some of our overseas subsidiaries by gender are unavailable due to the restriction of their local laws and regulations.
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We have formulated and implemented the Ninestar Guarantee System for Employee Diversification, Rights and Interests,welcoming talent from all walks of life and formulating talent strategies and labor diversity plans in line with our businessdevelopment strategy. We actively develop new talent pools, implement fair and compliant recruitment management,and support labor diversity. We supervise and implement the performance of talent diversity as an assessment indicator,incorporated into the senior management assessment of our Human Resources Department. Additionally, we attach importanceto the construction of corporate diversity culture, regularly conducting labor diversity training for all employees (including full-timeand part-time sta?) and outsourcing service providers.During the Reporting Period, we conducted the following work to strengthen employee diversity, equality, and inclusion:
We revised the Relevent Requirementsfor Fair and Just Recruitment ofthe Group, stipulating that duringpersonnel recruitment, only informationrelevant to the applicant's educationalbackground, work experience, andskills related to overall job ability shouldbe used as recruitment criteria. Biasor discrimination against employeesbased on race, class, nationality,place of origin, religion, age, disability,gender, marital and reproductive status,sexual orientation, and affiliation withany particular social group is prohibited,and male and female employees enjoyequal rights to employment.
We emphasized the prohibitionof discriminatory language inrecruitment information in theRecruitment Website UsageGuidelines.
We reviewed and ensured thecompliance of human resourcemanagement system regulations withdiversity perspectives, standardizingmanagement mechanisms such asrecruitment and dismissal, salaryand promotion, and working hoursand paid leave entitlements.
During the Reporting Period, we comprehensively reviewed and revised the salary management system and detailed rules,forming a new Comprehensive Salary Management System to further optimize and improve our salary system, ensuring itsconsistency with our development strategy and market positioning.In this revision, we emphasized the structured design and updates of short-term and long-term incentive mechanisms,strengthening incentives for employees demonstrating outstanding capabilities and performance. With "performance-oriented"as the core concept, we fairly determine employees' salary levels, bonuses, and other benets to attract, retain, and motivate ourcore employees. We updated the salary schemes for director-level management personnel, ensuring that their performance isclosely linked to the group's overall organization performance and prot completion rate, not only enhancing the management'senthusiasm and sense of responsibility but also further promoting the achievement of our overall strategic goals.
7.2.3.3 Employee diversity and inclusion
Based on international standards such as the UN Guiding Principles on Business and Human Rights and the Universal Declarationof Human Rights (UDHR) approved by the United Nations Human Rights Council, the International Labor Organization'sDeclaration on Fundamental Principles and Rights at Work, and the UN Global Compact Ten Principles (UNGC), as well asrelevant regulations in various regions, we take actions consistent with the RBA Code of Conduct to ensure compliance withhuman rights commitments when conducting global operations. We maintain a fair and transparent recruitment process, respectemployees' legitimate rights and interests, eliminate forced labor, and provide fair and reasonable salaries to all employees,ensuring their health and safety, caring for their well-being, and strengthening the protection of employee rights and interests.
7.2.3.4 Protecting employees' rights and interests
Five principles
Integration
Marketorientation
Incentivization
Equity
Dynamism
We commit to not employing or supporting theemployment of children under the age of 16. We verifycandidates' ID age through multiple methods duringthe recruitment process and conduct comprehensiveevaluations of candidates' qualications and abilities.Additionally, we conduct background checks toconfirm the authenticity of candidate informationin accordance with the law. If department leadersdiscover discrepancies between workers' ages andarchived information during day-to-day management,they should immediately notify the HR departmentto implement a remedial plan for the misuse of childlabor, ensuring that those engaged in labor in theCompany receive e?ective protection promptly.
We include provisions against sexual harassmentin the Awards and Penalties System for Employees’Behaviors and oppose any form of workplaceharassment, including but not limited to intimidation,threat, sexual harassment, and any types ofharassment at the workplace specied by applicablelaws and regulations of the location where weoperate. The corresponding supervision andreporting processes have been put in place so thatindividuals who harass colleagues can be dealt withseverely and will be turned over to judicial authoritiesfor handling if he or she is suspected of beinginvolved in any illegal activities.
We commit to not using or supporting the use ofany form of forced labor. Through standardizedemployment mechanisms, we comprehensivelycontrol modern slavery labor risks such as debtbondage labor, human trafficking, restriction ofpersonal freedom, deduction or withholding ofwages and benets, forced overtime, and restrictionson resignation, ensuring that all employmentrelationships are based on voluntary participation. Asof the end of the Reporting Period, we experiencedno incidents related to forced labor, harassment,abuse, or child labor.
Our salary system adheres to the principle of “unied concept, unied system,and unied management”, implementing integrated salary management acrossthe Company and our subsidiaries.Our salary system respects and draws upon market practices andexperience from high-tech enterprises and we have gradually achievedmarket-oriented salary management in combination with actual businessconditions.Based on business strategic objectives, we have established amechanism to link salary with performance, emphasizing incentives foroutstanding employees and promoting the growth of operating results.Employees in the same position receive an equal salary. At the same time,we make dynamic differentiation adjustments to salary ranks based onemployee performance, years of service, and work attitude.Taking into account our history, current situation, and future development, wehave established a dynamic adjustment mechanism for the comprehensive salarymanagement system to adapt to changes in our development and achieve mutualgrowth between the Company and our employees.
We commit to not terminating a labor contract,lowering wage standards, maliciously assessingany employee, or refusing to provide social securitydue to any employee’s ethnicity, race, nationality,geographical region, gender, age, physical conditions,marital status, or religious belief. We also committo not terminating a labor contract in advance ongrounds of pregnancy, disability or other reasons,resolutely protecting the rights and interests ofwomen, disabled employees and other specialemployees in social security. We have put in placerelevant supervision and reporting processes and willstrictly investigate and deal with any discrimination.
Prohibition of child labor
Prohibition of forced labor
Opposition to harassment at workplace
Prohibition of discrimination
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We strictly adhere to national and local social security mechanisms and are committed to improving employee benets and pay.We provide practical good benets to pay, encompassing all sta?, and promise that such benets and pay will not be a?ecteddue to employees' ethnicity, race, nationality, geographical region, gender, age, physical conditions, marital status, religiousbelief or other factors.
Social insurances and housingprovident fund, paid leave, minimumwage guarantee, rest and leave,etc. are put into practice, and avariety of subsidies are issued asrequired.
We provide prenatal checkup leaves,maternity leaves, breastfeedingleaves, etc., for female employees inaccordance with the law. Moreover,valuing women’s power, we haveplayed the promotional video withthe theme of "Women’s Power" andheld themed activities on Women’sDay to encourage women in theircareer development and to promotegender equality in the workplace.
Safety protection supplies, regularhealth examination, occupationalhealth examinations of specialpeople, special allowances, etc.
We o?er employees working in high-temperature environments heatsubsidies and daily necessities andfruits for relieving summer heat, issuefestival gifts on Lantern Festival,Women’s Day, Mother’s Day andother festivals, and carry out summercamp activities for our employees’children.
Shuttle bus for commuters,development training, teamdinners, festival gifts, birthdaybenefits, association activities,etc.
In terms of employee accommodation, we offer convenient dormitories to ensure employees have access toaffordable housing. Investing resources, we have designed independent single rooms to fully meet employees'need for personal space, ensuring a good balance between work and life. To better care for employees' well-being and alleviate their nancial burden, we have introduced employee dormitory rental benets, providing stableand economically viable living environments for employees at a monthly rent not exceeding CNY700, signicantlylower than market rental prices. This reects our concern and support for employees' living conditions, alleviating
On June 30, 2023, after two years of construction, theaffordable housing project, Phase 1 of the NinestarHaina Garden, consisting of 229 fully furnished units,was delivered as scheduled. The units range from 2 to 4rooms, with a oor area of 70-110 square meters. Ninestaremployees have the opportunity to purchase talent-secured housing at signicantly below-market cost. HainaGarden is located less than 2 kilometers from our PingshaPark, with well-developed surrounding facilities, facilitatinga more convenient lifestyle and work environment foremployees working in Pingsha, thus realizing the vision ofcomfortable living and career fulllment.
Guaranteed benets
Women's rights andinterests protection
Protective benets
Special benets
Our own benets
We o?er a comprehensive benet protection system for employees as follows:
7.2.3.5 Employee benets and pay
To facilitate the achievement of our overall operational goals and fully leverage the role of performance management in realizingour strategies and enhancing employee capabilities, we conduct monthly, quarterly, semi-annual, and annual performanceassessments for all employees and take the key performance indexes (KPIs), key target indexes (KTIs) and daily work goalattainment as the assessment bases. The assessment results are divided into five levels (A, A-, B, B-, C). Based on theassessment results, we promptly communicate with employees, propose improvement directions and measures, and followup on performance enhancements. Additionally, we provide employees with channels for appeals, including email and phone.If employees have objections to the performance assessment results, they can appeal and request a review from the finalreviewer or the Human Resources Department.
Providing A?ordable Housing
Providing A?ordable and Quality Dormitories
their financial stress and enabling themto work with peace of mind, unleashtheir full potential, and achieve mutualdevelopment.
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Respecting the diverse cultures of employees worldwide, our overseasoffices hold a series of Christmas celebration activities every year,such as Christmas tree decoration, singing Christmas carols, and giftexchanges, providing employees with holiday arrangements so theycan spend more time with their families and friends during the festiveseason.
Based on our talent structure and business priorities, Engineer's Day was established by Ninestar to acknowledgeand commend the outstanding contributions of the engineering team to our technological innovation and development.Our Engineer's Day is held annually on October 24. On this day, we extend holiday greetings and blessings toall engineers, expressing recognition for their professionalism and hard work. Through various activities such asthe "How Much Do You Know About Values" treasure hunt, the engineering team's recognition of research anddevelopment innovation is stimulated, team cohesion is enhanced, and employees gain a deeper understanding ofour culture and values in a relaxed and pleasant atmosphere.
Women's DayFemale employees play an indispensable role in driving our development and innovation. Therefore, we are committedto creating a workplace culture that respects and supports women's professional growth. Through the celebration ofWomen's Day, we not only express respect and appreciation to female employees but also enhance their condenceand unleash their professional potential through a series of carefully planned activities. We firmly believe that bycreating a supportive environment for women's professional growth, we can better unleash the potential and creativityof female employees, laying a solid foundation for our long-term success and sustainable development. We lookforward to working with all female employees to create a more equal, respectful, and vibrant workplace together.Christmas activities
Engineer's Day
During festivals such as the Spring Festival, Lantern Festival, Children's Day, Mid-Autumn Festival, Women's Day,Mother's Day, Father's Day, Teacher's Day, Thanksgiving, and Christmas, various departments organize a range ofonline and offline festive activities to create a jovial festive atmosphere for different groups and foreign employees.Departments regularly hold themed birthday parties, allowing employees to feel cared for through games, cake sharing,lucky draws, and other activities.
We hold Thanksgiving activities every year to express gratitude for employees' hard work and contributions over thepast year. By organizing a wide variety of entertainment activities such as literary performances, lottery draws, andfeasts, outstanding employees are commended and rewarded, enhancing their sense of belonging and participation.
Festival party culture
Thanksgiving activities
We are committed to creating a comfortable working environment for employees, fostering a warm work atmosphere, andplacing importance on the humane care of employees' physical and mental health, work-life balance, and work experience. Bydeeply engaging in service site construction, establishing a warm home for employees, and strengthening employee care, weensure that employees truly feel the warmth of home.
7.2.3.6 Employee cultural development
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We are committed to providing every female employee with the most intimate care in their daily work. This year, wecontinue to renovate and maintain special rooms for mothers that are equipped with multi-functional areas such asnursing areas and public rest areas. We also provide sofas, folding nap beds, refrigerators, disinfection cabinets,microwaves, breastfeeding supplies, and mother and baby bookshelves for working mothers. This effectivelysafeguards the legitimate rights and interests of female workers and promotes the construction of family-friendlyworkplaces. We also organize qipao classes and other activities.
We actively promote the construction of interest groups, establish six interest associations, including the DanceAssociation, Badminton Association, Football Association, Music Association, Board Game Association, and BusinessEtiquette Association, increase incentive mechanisms, and further enrich the circle of sta? friends and leisure culturallife. Badminton courts, basketball courts, table tennis rooms, billiards rooms, dance rooms, yoga rooms, etc., are setup in the Nanping Park and Pingsha Park for sports activities. Various departments, interest groups, etc., regularlyorganize various competitions, enriching employees' leisure activities and enhancing their sense of belonging.
Care for women culture
Advocate sports culture
7.2.4 Indicators and objectives
Objectives Progress
Facilitate democratic communication and employeefeedback channelsPromote workplace diversity and inclusion, andstrengthen employee rights and interests protectionGradually standardize the human resourcesmanagement system of overseas subsidiaries:
take into account the legal requirements of variouscountries, respect cultural and habitual di?erences,realize the localization revision and implementationof necessary regulations, and streamline personnel-related processes and approval authorityContinuously optimize social recruitmentmanagement processes: through talent assessment,interviewer training and certification, etc., moreaccurately screen and identify talents that meet ourrequirementsProvide richer employee benefits: strengthenemployee care, provide customized benets
Created a diverse and equal workplace culture;increased the number of female managers to 193.Revised the Relevant Requirements for Fair andJust Recruitment of the Group, emphasizing theprohibition of discriminatory language in recruitmentinformationFormulated the Comprehensive Salary ManagementSystem, comprehensively reviewed and revisedthe salary management system and detailed rules,enhancing the incentive intensity for high-capacity,high-performance employeesDelivered our affordable housing to employees,providing housing benetsProvided employees with diverse company activitiesand benefits, distributing holiday bonuses andgifts to employees during traditional festivals, andstrengthening employee care
We understand the importance of union culture development in enhancing employee cohesion and CompanyCulture. Therefore, we are committed to establishing and improving internal union-related systems to ensure thatunion activities and work are carried out in accordance with laws and regulations, e?ectively safeguarding the rightsand interests of employees.Our union purchases gifts, souvenirs, and commemorative items for employees during festivals to express care andblessings. To promote union culture development, we allocate hundreds of thousands of CNY in special funds eachyear to support various cultural activities organized by the union, such as literary performances, sports competitions,and activities, aiming to enhance unity and friendship among employees through diverse activity formats, promoteindividual growth and teamwork, and boost positive energy.
Union culture development
On September 26, 2023, we held Mid-Autumn Festivalcelebrations online through livestream and via o?ine interactiveformats. The Nanping Park and Pingsha Park simultaneouslyhosted excellent programs to convey a festive atmosphere,wishing for family happiness and reunion.
Mid-Autumn Festival party
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7.3.1 Concept
7.3.2 Strategies
7.3 Human Capital Development
7.3.3 Actions and practices
7.3.3.1 Talent recruitment
We attach great importance to the independent selection and training of talentby formulating the Strategy for Building a Diverse Talent Pipeline and annuallypreparing campus recruitment plans. While global new graduates are openlyrecruited to empower our technological reform and business developmentwith fresh blood, talent pooling programs such as the management traineeprogram are regularly carried out and special training schemes for newgraduates are prepared. Currently, 20% of the members of our managementand employees at higher levels were recruited via campus recruitment. Thenumber of employees to be recruited via campus recruitment every year stablyremains at approximately 200, accounting for 20% of our annual target of talentrecruitment and leaving the other 80% for social recruitment.Moreover, in order to expand recruitment channels and make employees moreenthusiastic about internal referrals, we have formulated the Incentive Plan forInternal Referrals by Employees while encouraging on-the-job employees torefer proper candidates to us and setting special rewards for internal referrals.
We attach great importance to talent training and development. With a viewto e?ectively improving our employees' professional prociency, we have builta scientic mechanism for talent team building. By formulating administrativeprovisions on training such as the Training Management System, theAdministrative Provisions on the Internal Lecturers, the AdministrativeProvisions on the Campus Recruitment of Fresh Graduates, the AdministrativeProvisions on the Pre-service Training of Socially Recruited Employees, theAdministrative Provisions on the Pre-service Training of Employees, and theIn-service Degree Education Management System, and building an internallycomprehensive training system that is formed of the training course system,the training organization and implementation system, the training evaluationsystem, the training lecturer system, and the training budget system, we createa good internal learning environment for employees, provide them with free-to-access channels of career development and promotion mechanisms, andsupport their continuous progress and career development.
We know that talent is a fundamental resource that we need to makeprogress. Therefore, we consider promoting the comprehensive developmentof employees to be one of our key development objectives. We value theirpersonal growth and their career development planning. By establishinga comprehensive training system and free-to-access career developmentchannels, we ensure that their potential can be given full play during thecreation of our corporate value and that their career development paths willbe clearly revealed. We provide support and incentives for employees' pursuitof further education and aid their skill learning and comprehensive qualitydevelopment so that employees can grow with us and work with us to promoteour continuous development and assumption of social responsibilities.
We endeavor to implement acomprehensive strategy for buildinga diverse talent pipeline to ensurethat we have a team of employeeswho are energetic, diverse, andcompetitive in the future. First, wecooperate with universities throughcampus recruitment plans to attractcompetitive new graduates whileusing diverse social recruitmentchannels, such as social media,job search websites, and industryconferences, to attract talentswith different backgrounds andexperiences.We provide customized trainingprograms and opportunities forinterdepartmental job transfers topromote employees' personal growthand occupational skill improvement.In terms of our mechanisms forperformance management andincentives, we have establisheda fair and transparent system forperformance appraisal and offercompetitive remuneration, benefits,and stock incentives to arouseemployees' enthusiasm and inspiretheir loyalty.
We also provide employees withclear career development pathsand leadership developmentprograms to pool future membersof our management. In terms ofCompany Culture and values,we are dedicated to making theworkplace inclusive and respectfulof diversity, as well as to enhancingour core values through variouschannels and activities.In order to retain talent, we haveimplemented employee care programsand effective communicationmechanisms while paying attentionto employees' work-life balance,satisfying their requests in a timelymanner, and solving their problems.
Based on these measures, we ensure that we can adapt to market changesand business demands, promote innovation and continuous development,and lay a solid talent foundation for our long-term success.
The Strategy for Building a Diverse TalentPipeline is implemented by means as follows:
7.3.3.2 Deepened industry-university-research cooperation
We continuously explore and implement diverse measures for talent introduction and training. Through industry-university-research cooperation, we have established close partnerships with higher educational institutions, based on which we cooperateto develop di?erentiated mechanisms for university-enterprise cooperation and facilitate the exchange and cooperation betweenboth parties in terms of technology and talent. Industry-university-research cooperation is a win-win for both parties, as it notonly brings us new blood with potential but also brings students opportunities for practice and growth. We believe that we willgain a long-term advantage in talent from this deepened mode of industry-university-research cooperation, which will also serveas a solid pillar that supports our continuous development and innovation.
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We have established the Sailor Recruitment Project, which targets international students in China from developing countries andforeign workers who are willing to work in their homelands and provide them with internship o?ers. They will receive intensivetraining in our headquarters and those with excellent performance in the internship appraisal will be given full-time o?ers andwork at the headquarters or in their homelands. We have concluded agreements with multiple universities on cooperation on apractice basis for the Sailor Recruitment Project. In 2023, we recruited a total of 11 international students in China. We endeavorto ease the worries of foreign employees about working in China by assisting them in obtaining work visas and providing themwith dormitories. We help foreign employees more rapidly adapt to the workplace in China and improve their career competencethrough serial courses on themes such as products, markets, customer services, and marketing. Meanwhile, as foreign internscan enjoy the same activity benets as our full-time employees do, we encourage them to participate in our traditional culturalactivities so that they can learn about Chinese culture better and enhance their sense of belonging to us.In September 2023, the Talent Training Project with Industry-Research Cooperation and Coordination submitted by GeehyMicroelectronics, one of our subsidiaries, to the Ministry of Education was o?cially approved. The project consists of six projectsthat can be classied into two categories, namely the Projects on Reforming the Course Content and the Curriculum Systemas well as the Practical Conditions and the Construction of Practice Bases. The goals of the project include promoting theapplication innovation and practice of domestically made APM32 and G32A MCUs, building a domestic universal ecologicalplatform for chips, providing intensive support for curricula construction and educational reforms by teachers and students inHEIs, deepening university-enterprise cooperation and industry-education integration, and facilitating the application innovationof domestically made chips in such elds as industrial automation, smart agriculture, new energy, electricity & power grids, andautomotive electronics. It also involves in-depth research on the application technologies of chips to support the innovativeresearch and applications of domestically made chips, supporting the reform of engineering education in China and bringingnew blood to the semiconductor industry in China.
We Were a Co-host of the 6th China Postgraduate IC Innovation Competition
In August 2023, Geehy Microelectronics served as an honorary partner of the 6th China Postgraduate ICInnovation Competition under the guidance of the Department of Degree Management & Postgraduate Educationof the Ministry of Education, where it set two enterprise questions that focused on hot topics of the industry,such as the UWB location tracking technology and laser ranging, a solid e?ort to facilitate industry-educationintegration and support talent training in the eld of IC.One of our focuses has been placed on providing overall solutions for the co-building of the discipline of 3D printing as a support for the implementation ofrelevant professional education standards and relevant talent training plans.We not only provide course resources and professional equipment but alsosend experts to participate in course development, optimization, and iterationfor disciplines co-built by universities and us and create featured practicaltraining courses on 3D printing. During the Reporting Period, we maintainedgood relationships with vocational schools and technician schools in ZunyiCity, as we were co-building the disciplines of 3D printing and laser printingwith Fenggang Secondary Vocational and Technical School and WuchuanSecondary Vocational School, as well as the discipline of e-commerce withZunyi Vocational and Technical College and the discipline of computer sciencewith Chishui Secondary Vocational School.
We provide intern orientation and direct access to real projects for newgraduates during their internships, helping them better understand ourbusiness status and more rapidly change their perceptions of their identityand roles into the right ones. Meanwhile, we give o?cial o?ers to interns withexcellent performance and developmental potential or convert their internshipsinto full-time roles. In 2023, in active response to the government's policy onpromoting the development of the Guangdong-Hong Kong-Macao Greater
We attach great importance to the specialized knowledge and comprehensive quality of students from ourpartner schools, which is why we provide bonuses for skill contests and other relevant events and sendbackbone technicians to offer guidance. We will give internship offers and full-time offers in advance tostudents with excellent performance in these activities. Additionally, we have participated in modern apprenticetraining by regularly sending lecturers to provide professional and vocational planning and guidance services.
We never stop exploring diverse approaches to talent pooling and have formulated di?erentiated mechanismsfor university-enterprise cooperation. We also actively enter into partnerships with more institutions that shareour vision and aspire to long-term development. Currently, we have concluded agreements with twenty regularhigher education institutions (HEIs), such as the Jiangxi University of Science and Technology, the Universityof South China, and Hunan University of Technology. Our university-enterprise cooperation has beencustomized and new modes besides traditional fall and spring campus recruitment periods exist to strengthenour exchange with these HEIs in terms of technology and talent.
Disciplineco-building
Internshipo?ers
Support fortalent training
Talentpooling
Bay Area into a hub of high-qualitytalent, we took the initiative toprovide a number of internshipoffers in Zhuhai's OutstandingYoung Talents Program (Overseas)for 2023, a collaboration effortbetween the government andenterprises. These offers weregranted to interns from famousuniversities in the UK, the US,Hong Kong, and Macao, who alsogained valuable on-the-job learningexperience through industrial parktours, production line visits, andpost-practice presentations on realprojects.
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7.3.3.3 Optimizing the talent training system
Internal training
We hold an unswerving belief in the role of talent as a core driver of corporate development. Therefore, we are dedicated tothe continuous optimization and improvement of the talent training system to ensure that our employees' professional skills andcomprehensive quality can stay up-to-date and satisfy our demand for development. We have carried out a series of internaltraining programs on such themes as onboarding training, professional skill improvement, and management ability training.Meanwhile, we actively seek cooperation with external professional institutions and introduce diverse professional trainingresources and courses. In doing so, we have prepared a broad learning platform and a more abundant knowledge system foremployees and laid down a solid talent foundation for our long-term development and improvement of market competitiveness.
For the purpose of talent development and talent pooling, we continuously improve the system for developing NinestarUniversity, provide all-round and diverse training programs for our employees (including employees of our subsidiaries), andset up two training lines (one for professional talent and the other for management talent). Moreover, by creating hierarchicaltraining modes, such as the Navigation program series, professional training camps, and onboarding training, as well as a seriesof high-quality training courses, such as Project Management, Structural Thinking, Business Negotiation Skills, Managementfor E?cient Meetings, and Time and Objectives Management, we focus on improving the professional skills and managementabilities of employees and satisfying their demands for career development while improving our production efficiency andproductive value.By summarizing the professional capabilities required for key positions according to the features of di?erent positions and thebusiness demands, we are able to create special professional training programs to improve the capabilities of professionals andsolve real business problems. In 2023, we organized eight professional training camps, including the internal lecturer trainingcamp, the lean production training camp, and the supply chain training camp. Additionally, we help new graduates recruited viacampus recruitment rapidly adapt to the workplace and achieve a preliminary mastery of workplace skills. In doing so, we havecreated an employee training mode that can facilitate the transformation of an employee from a newbie to a veteran.
We Held the First "Geehy Microelectronics Cup" IC Innovation Training Camp
Xidian University is among the rst of nine National Demonstrative Schools of Microelectronics and is rankedamong the top four universities in China in terms of majors in electronic and information engineering. FromNovember 2022 to March 2023, Geehy Microelectronics cooperated with the university to hold the rst "GeehyMicroelectronics Cup" IC Innovation (Xidian) Training Camp. While four training orientations were set, a totalof 141 students received training in the program. On May 28, 2023, we co-hosted the closing ceremony for thecamp and the ceremony for the conclusion of the university-enterprise cooperation agreement, where we had anin-depth communication about the cooperation in talent training.
Professionaltraining campseries
Team building forinternal lecturers
Training fortechnicalprofessionals
Onboardingtraining
Cadre classes offer practice-integratedcourses that are designed to improve themanagement abilities of members of ourmanagement at the level of supervisorsor above.The training camps are applicable tomultiple business lines, including thesupply chain, project management,and R&D, with an orientation towardseliminating professional bottlenecks.In the name of these training camps,activities for the Action-based Learningand Improvement Week are carried outto help talent learn from practice.This year, the Lecturers Forum ofNinestar University offered eight-coursesessions in three sections, namelyworkplace skills, self-management, andprofessional capability improvement.We provide targeted skill training foremployees in core positions, such ascartridge maintenance, replenishmentprocedures, the relling process, trainingin automated operation for cartridgeworkshops, and operation procedures forpositions at risk in die-making shops andinjection molding workshops. Additionally,we organized 96 lean production trainingsessions within the scope of the Groupthis year, which significantly improvedthe lean production skills and productione?ciency of 1,755 employees.Onboarding training is offered forboth employees recruited via campusrecruitment and social recruitment.Employees recruited via campusrecruitment need to attend the NinestarClasses, in which training is offeredin three stages (namely, Setting Sail,Experience and Growth), while theCompany Culture, our regulations andpolicies, and the knowledge of oursystems and positions are publicizedand delivered to employees recruited viasocial recruitment.
Project nameProgressBuilt-in coursesNavigationleadership trainingprograms
Theoretical trainingSelf-directed activitiesOutdoor activities
Coursedevelopment anddesignExhibition of thecharms of lectures
Lecturers ForumInternal LecturerCompetitionActivities on Teacher's Day
General managerclassesDirector classesReserve directorclasses
Manager classesReserve manager classesSupervisor classes
Training for obtaining electriciancerticatesTraining in automationTraining for lean productionSelf-evaluation of occupational skilllevels
Marketing trainingcampsInternal lecturertraining campsR&D innovationtraining campsLean productiontraining camps
Supply chain Supply chaintraining campsHR elite training campsFinance elite trainingcampsEnglish training campsProject managementtraining camps
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Trained domestic employees
Average training hours ofmale employees
Total training hours of globalemployees
Total training hours ofdomestic employees
Average training hours offemale employees
Trained male employeesTrained female employees
hours
hourshours
hours
8,206
165,533.565,648
Total training hours offoreign employees
hours99,885.5
4,8173,389
Performance on Talent TrainingThe numbers and the average training hours of trained employees by gender
The total training hours of trained employees (including foreign employees) by region
New graduate training
Cooperation with external institutions in improving employees' skills
To help students rapidly adapt to the workplace and change their perceptions of roles into the right ones as soon as possible, weheld the 2023 Ninestar Class for a total of 112 new graduates recruited via campus recruitment, o?ering them intensive training,quality development training, advanced courses, and workshop internships and helping them quickly adapt to the workplace.Besides intensive training, during which they paid visits to the Zhuhai Museum and participated in team-building activities,practice-based courses and workshop internships were o?ered to improve their familiarity with our production status and productstructure.Moreover, we have formulated the plan for setting mentors for recruited new graduates and the mentoring handbook, as wellas set apprentice-mentor meetings and apprenticing ceremonies to enhance the mutual understanding between recruited newgraduates and their mentors. As we have set three training stages for recruited new graduates on probation, their mentors arerequired to formulate mentoring schedules at the beginning of each stage and report the mentoring performance at the endof each stage, while the Human Resources Department needs to provide support for the tracking of the mentoring process,select model mentors for each stage according to the results of the mentoring performance appraisal, and grant incentives tooutstanding mentors through appraisal and election at the end of the probation period.
In 2023, we cooperated with external institutions to organize six professional training camps. Specically, in the R&D innovationtraining camp, we incorporated a project management training camp and introduced a strategy decoding course in Q4; in thesupply chain training camp, we delivered three professional lectures and prepared the safe inventory plan for each supply chainsector; and in the internal lecturer training camp, while 41 employees completed the training and were recognized as the Group'sjunior lecturers by training, 46 relevant courses were developed, covering marketing, general o?ce skills, human resources, thesupply chain and relevant technological systems, and production management.
During the Reporting Period, we carried out the Navigation leadership training programs to improve the management abilities ofreserve cadres and newly promoted cadres, grouping them into six classes. Specically, in the director class, the training wascombined with themes such as cost reduction & e?ciency improvement, information-based management, and learning frombenchmarking enterprises; in the manager class, all 48 trainees nished the question-based training, with six courses completedand 158 real problems at work, including the obsolete inventory and the rate of man-hours for quality abnormalities was solved;and in the supervisor class, online (two sessions) and o?ine (seven sessions) training was prepared for a total of 52 newlypromoted supervisors, who had completed 77% of the training content.
The statistics on employees of some of our overseas subsidiaries by gender are unavailable due to the restriction of their local laws and regulations.
Foreign employees are also included when the statistics on the training hours are prepared.
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7.3.3.4 Support for on-the-job education
To improve employees' knowledge and skills for dutyperformance, we have formulated the In-service DegreeEducation Management System, providing relevant incentivepolicies and stipulations on attending on-the-job educationdegree programs, improving occupational skills, and improvingprofessional skills. With the improved management procedures,we encourage all o?cial employees to attend training programsto obtain an occupational certificate or a higher educationdegree. Moreover, we will cover a certain amount of theexpenses for employees in obtaining an on-the-job educationdegree, a professional technical certicate, or an occupationalcertificate and grant them suitable awards. In doing so, weendeavor to ensure that our work of supporting on-the-jobeducation has a positive e?ect. During the Reporting Period, wegranted 133 employees CNY261,600 as awards for obtaining ahigher education degree.
Markstrat training
Regular training of foreign employees
Special online training program of Zhuhai City
Foreign Employees Were Learning Marketing Management
Foreign Employees Were Learning Our History and Products
We cooperated with Linkstar to offer 48 members of our management drill-based training in strategic marketing simulationwith Martstrat. Through ve days of on-site marketing simulation, the trainees engaged in simulated marketing based on theirknowledge of ve marketing dimensions, improving their strategic thinking, product thinking, business thinking, and managementabilities.
With the expansion of our operations in foreign markets, we are in possession of a rapidly growing team of international talent.We are clear about the signicance of building and training a team of international talent for our continuous development, sowe have formulated a complete set of regular training programs for international employees. In 2023, we carried out trainingprograms for international employees, of which the carefully designed content included but was not limited to the extensionof required knowledge, the improvement of practical skills, the thorough identication of our Company Culture, and enhancedteam building. We aimed to promote their understanding and mastery of our history, our products and marketing management,improve their comprehensive capabilities in an all-round manner, and help them better adapt to our team, improve their businesscapabilities, as well as contribute to our long-term development.
We are in collaboration with the local Bureau of Human Resources and Social Security so that we can use their online trainingplatform to obtain rich resources for online training. With these resources, we can provide targeted training courses based onthe di?erent positions of our employees, facilitating the improvement of employees' professional skills. The statistics from thebureau's online training platform show that 1,657 of our employees had completed the special online skill training program ofZhuhai City in 2023, with the average training hours per employee exceeding 10 hours.With the expansion of Pantum's operations in foreign markets, we are in possession of a rapidly growing team of internationaltalent. To further standardize employee training and selection, we continuously improve the system for position qualication,categorize employees' capabilities to select country managers and country manager candidates, and invite employees ofour overseas subsidiaries to receive training in China. In 2023, we provided our 29 global country managers with rotationaltraining in our headquarters for the extension of required knowledge, the improvement of practical skills, the identication of ourCompany Culture, and team building.
During the ReportingPeriod, we grantedemployees
as awards for obtaining ahigher education degree.
261,600CNY
学历提升奖励金
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To improve employees' occupational skills, we enter intocooperation with credit-worthy educational institutions asnecessary every year, as well as regularly provide externaltraining and invite lecturers to provide training. By o?eringcourses such as the Activity Themes of Problem-solvingQCCs, the Activity Themes of Innovative Subject QCCs,Six Sigma in Project Management, the Whole-processManagement of Accounts Receivable, and CondensedEMBA Training, we provide our employees with rich anduseful resources of training for obtaining a higher educationdegree and improving general and professional skills.To encourage employees to actively seek a highereducation degree, we provide employees with access tomultiple educational institutions and learning channelsas a solid support for their on-the-job degree education.During the Reporting Period, we cooperated with two third-party institutions (Taiqi Education and Baitai Education) topublicize on-the-job master's programs among employees
Condensed EMBA Training
We offer drill-basededucation. In 2023, weoffered 23 Group Directorsa course of condensedEMB training so that wecould efficiently changethe ideas of managers andimprove the managers'management capabilitiesthrough course-basedlearning and mentoring.
7.3.3.5 Improving promotion channels
To ensure a transparent, equal, and fair promotion system, we have formulated the Position Management System, the CadreManagement System, and the Management Mechanism for the Development of Cadre Positions. In doing so, we haveoptimized the position remuneration system and standardized the duties of employees at all levels in a strict manner. Accordingto the di?erent characteristics of employees, we o?er them diverse channels of career development and various models fortalent capabilities in terms of management directions and professional orientations, including the channel of developmentfor the technical sequence, the channel of development for the marketing sequence, and the channel of development for themanagement sequence, allowing all employees to have their own development orientations and objectives. The promotionof employees in the technical sequence is based on the system for position qualication, as only employees who qualify forassuming their positions due to the fulllment of relevant requirements for knowledge, skills, work results, and other criteria maybe promoted. Moreover, the promotion of employees in the management sequence should depend on whether the criteria for theresults of annual performance appraisals, training attendance, personal insights into cadre competence and experience, readingnotes, defense reporting for promotion, etc. are satised.To ensure equal and diverse promotion appraisals, we examine and select candidates by comprehensively taking multiplefactors into account rather than according to the results of a single performance appraisal. We give preference for promotion toemployees who have both good capabilities and performance, and adopt a hierarchical system for extra benets and incentivesfor talent. Meanwhile, to ensure fair promotion interviews, the interviewers should strictly follow the principle of restrictions toprevent nepotism, cliques formed to pursue personal interests, etc.
7.3.3.6 Incentives for talent development
To attract and retain excellent management talents and business support sta?, allow employees to share our long-term valuegrowth, and arouse the passion of all sta? for persistent contribution to our development, we have formulated the RestrictedStock Incentive Plan for directors, senior managers, middle-level managers, and core support sta?, as well as others for whomthe Board of Directors deems incentives necessary, improving our medium- and long-term incentive mechanisms. In 2023, weactively promoted reserved stock granting according to the 2022 Restricted Stock Incentive Plan, granting 230,800 restrictedstocks to 35 people as incentives. Meanwhile, we continued to research the diversication of stock incentive tools based onour actual development status and the establishment of a system for incentive mechanisms that integrate long-term incentives,short-term incentives, and restrictions that can align with the incentives, supporting our long-term development. Moreover, inMarch 2024, we engaged in a new round of stock incentive granting, granting 40,340,400 stock options to be exercised in threestages to 2,102 employees, showing our resolution on talent incentives.
Technician
Specialist
Assistantengineer
Supervisor
Engineer
Manager
Seniorengineer
Director
Chiefengineer
Generalmanager
Businessassistant
Businessmanager
Seniorbusinessmanager
Salesdirector
Generalmanager
and programs for a higher education degree among employees who were not college graduates or were junior or regular collegegraduates. We also cooperated with Guangdong Technology College, the Zhongshan Institute at the University of ElectronicScience and Technology of China, and Shantou University to encourage employees who were not college graduates or werejunior or regular college graduates to seek a higher education degree.In 2023, our Group recorded 52 employees who had obtained a higher on-the-job education degree, including 27 who becamejunior college graduates, 23 who became regular college graduates, and two who obtained the on-the-job master's degree,whom we support with policy-backed tuition awards.We value the training for employees' professional skills, formulate training plans as needed every year, and provide richprofessional skill training programs both online and o?ine. We cooperate with education and training institutions and use thesesocial learning platforms to develop multiple special training programs for employees and improve their general and professionalcapabilities.
Marketingsequence
Managementsequence
Technicalsequence
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Indicators and objectives
Objectives ProgressChecking the talent pool, focusing on the demand for talents inkey positions, and recruiting excellent talent via social recruitment,campus recruitment, internal referral and other means.Regularly implementing university-enterprise cooperation,enhancing the interaction with universities, as well as faculty ofdisciplines, that match well to our business sectors, promoting ouremployer brand, and creating new talent pools.Improving the channels of talent promotion, building a talentpipeline, and providing bigger platforms and better remuneration forexcellent talent.Developing a more scientific talent training system, designingtargeted, quality business courses for the onboarding training ofnew employees on probation, the on-the-job training of employeesfor professional skills, and the training of middle-level and seniormanagers for management abilities, and enhancing the building ofthe training team.
In 2023, we recruited a total of 11international students in China through theSailor Recruitment Project.The Talent Training Project with Industry-Research Cooperation and Coordinationsubmitted to the Ministry of Education waso?cially approved.We actively promoted reserved stockgranting according to the Restricted StockIncentive Plan, granting 230,800 restrictedstocks to 35 people as incentives.We held the 2023 Ninestar Class for atotal of 112 new graduates recruited viacampus recruitment, and cooperatedwith external institutions to hold sixprofessional training camps.
Annual Commendation Meeting for Outstanding Employees
At the end of March 2023, we successfully held the Annual Commendation Meeting for Outstanding Employeesfor 2023 to show our sincere respect and gratitude for outstanding employees in the previous year. In 2023,the outstanding employees made significant contributions to our development with their relentless efforts andremarkable achievements. Their performance was not only widely recognized by their colleagues but alsoproved to be valuable and exemplary to us. To honor and reward their hard work and remarkable performance,we decided to grant them cash bonuses, a material e?ort to express our recognition and appreciation for theirdiligence. We hope these e?orts can further increase their sense of belonging to us and their loyalty to us, as wellas inspire more employees to actively go about their work, give play to their potential and creativity, and contributemore to our development.
7.4.1 Concept
7.4.2 Strategies
7.4.3 Actions and practices
7.4.3.1 Quality risk control
7.4 Product Responsibility
By referring to the systematic method guidelines of ISO 9001, we formulated internal policies such as the Quality RiskAssessment Process, as well as annual quality work plans that contain the work plans for quality inspection and control and theplans for continuous improvement of the comprehensive quality management system. Through whole-process management ofaudit and quality, we have achieved product quality risk prevention and control for each process.
We strictly observe the Product Quality Law of the People's Republic of China and the Quality management systems-Guidelinesfor the application of GB/T19001-2016, and have formulated several internal documents such as the Quality, Environment,Occupational Health and Safety Management Handbook and Total Quality Management System. Each subsidiary hasformulated internal quality management systems such as the Product Inspection Specication and Product Mass the ProductMass Production Quality Management Procedure according to the relevant situation. The systems stipulate the product qualitycontrol process in the trial production, inspection, and mass production stage to ensure the consistency and stableness of theproduct and fully promote the quality management ability of the Company.Our product responsibility management strategy centers on risk management, policy building, and objective setting andhighlights process control and regular compliance inspections in order to implement product responsibility management on allfronts and better protect consumers' rights and interests and maintain our brand reputation.
We are fully aware of the signicance of product quality for a manufacturing enterprise. We always put product quality and safetyas the rst priority while improving our product quality management system to ensure the satisfaction of products with safety andquality standards in design, production, and marketing processes and improve the user experience of products from all aspects.On top of that, we enhance user experience and develop more intelligent, caring, and responsible products for customersthrough intensive R&D and innovation.
Product design
Regular review
Material management
Customer feedback
At the design stage, we fullyconsider product safety, strictlycontrol the introduction of productsafety demands, solution formulationreviews and test evaluation etc., andset up the "evaluation-improvement"closed-loop mechanism.
All subsidiaries of Ninestar conduct annual auditson the operation control, promote and follow upon the rectication results according to the resultsin order to ensure the prevention and control ofthe quality risks.
We control the brands of key raw materials, inspect incoming materials,randomly inspect key raw materials each month, and maintain e?ectivetracking and strict management of the inspection, use, and warehouseexit of raw materials, as well as changes in the supplier's materials andprocesses. We also control the quality of semi-finished products andpurchased products to ensure the stability of incoming material quality.
Customers' and consumers' feedback and complaints arerecorded in detail. Complaints about product quality andservices are handled in a closed-loop manner in accordancewith the Customer Complaint Handling Process, and customerfeedback is taken as an important reference to continuousadjustment and improvement.
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Pantum Quality Month Activity
We view product quality as the lifeblood of enterprise development, and the Quality Month activity is an importantmeasure for us to actively promote the development of a quality-driven culture and enhance employees' qualityawareness. In the past, the Quality Month activity was carried out randomly every month, and was limited andpassive by nature. In order to further improve product quality, we have incorporated the Quality Month activity intothe annual plan and annual practice. Under this new model, we encourage employees involved in all processesand across all positions to exert their independent awareness of quality responsibility and change their mindsetsfrom "I do as instructed" to "I do because I want to", while carrying out "Do It Right The First Time" quality trainingand education. Through quality awareness training, quality control standards, and requirements and analysisof quality improvement cases, we stimulate employees' subjective initiative and active participation and keepenhancing employees' quality knowledge and skills to make them more capable of coping with quality risks andparticipating in quality management in practices.
7.4.3.2 Quality security certication
All of our major subsidiaries have gained the ISO 9001 quality management system certicate and the products of some ofour subsidiaries have passed a number of international security certications, such as the EU Electromagnetic Compatibility(CE-EMC) Certication, China Environmental Labeling certication, UKCA Certication, EU RoHS (Restriction of the Use ofCertain Hazardous Substances in Electrical and Electronic Equipment Directive) Certication and Nordic Environmental LabelCertication, satisfying the laws and regulations on product marketing.Our laser printer products have passed product certications related to electrical safety, electromagnetic compatibility (EMC),and energy e?ciency in 42 countries and regions, fully demonstrating the highest stability and safety of our products in theglobal market, as well as satisfying the requirements of di?erent countries and regions.
In terms of automotive chip products, our microcontroller units (MCU), ultrasonic transducers and signal processors, and avariety of electronic chips for automobiles have passed the ISO 26262 Functional Safety Management System Certication, EUElectromagnetic Compatibility (CE-EMC) Certication, RoHS Certication, and REACH (Registration, Evaluation, Authorizationand Restriction of Chemicals) Certification, and obtained 13 AEC-Q100 Grade1/Grade2 reliability certificates. The relevanthazardous substances have been tested as qualied and we have achieved mass production for all these products. In addition,Geehy Microelectronics is the rst enterprise in the Guangdong-Hong Kong-Macao Greater Bay Area to obtain the highest levelof T?V Rheinland ASIL-D certication under the ISO 26262 Functional Safety Management System.
CITC Certication FCC Certication SMARK Certication NBTC Certication
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Mass Production and Roll-out of Brand-new A3 Printers
In 2023, Pantum rolled out five brand-new self-developed A3 monochrome and color printers. These A3multifunction printers use duplex imaging technology instead of simplex imaging technology and are able toprint, photocopy, and scan, meeting di?erent printing needs in practices. They are also durable, highly reliableand stable, and easy to maintain, costing little to use. The successful development of Pantum A3 multifunctionprinters has further enriched Pantum's high-end product pipeline and enabled Pantum to develop full knowledgeof the core techniques of A4 and A3 monochrome and color printers and the industrialization technology of whole-machine development, marking the improvement of our R&D and quality control capacities.
7.4.3.3 R&D and innovation
R&D and innovation are the core thatdrives enterprise development. Since ourestablishment, we have attached greatimportance to the R&D and innovation ofproducts and technologies. In 2010, werolled out our first Pantum laser printingin the Greater Hall of the People after1,000 days and nights of independentdevelopment. This is a milestone thathighlights our breakthrough in technologydevelopment and marks China's criticalprogress in the global printer industry, layingthe foundation for the rise of China's printermanufacturing industry.From the roll-out of the rst self-developed Pantum laser printer to today's complete product-line supply, our R&D team has beencommitted to integrating innovative technologies into products for a more e?cient and convenient printing experience. We keepintroducing new products, including test paper renovation products and WeChat remote printing products that save e?ort andmoney, as well as durable and reliable products that save energy and cost to meet user demands and improve user experience.Our reliable technologies ensure complete product-line supply and high-quality and high-reliability printing services for users, aswell as more e?cient, convenient and cost-e?ective printing solutions for customers.
In terms of compatible supplies, our products have passed Nordic Environmental Label Certication andIECQ Certication, and our subsidiary, Ninestar Information Technology, won the Laboratory AccreditationCertificate from the China National Accreditation Service for Conformity Assessment (CNAS), fullydemonstrating our competence and standards as to quality control system.
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Economical test paper renovation
Energy- and cost-saving, durable and reliableReliable technical supportWindows and iOS compatible
Resourceful AI courses
E?ort-saving WeChatremote printing
Convenient o?ce printing
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The New R&D Base - Pantum Intelligent Printer Industrial Park - in Feidong,Hefei, Was O?cially Put into Operation
Geehy Microelectronics Rolled out the Master Control + CommunicationModule for Sweeping Robots
Geehy Microelectronics Rolled out the APM32F030 Outdoor Power SolutionGeehy Microelectronics Rolled out the High-performance MCU for Motor Control
In 2023, the rst domestic printer industrial park, Pantum Intelligent Printer Industrial Park, in Feidong, Hefei,Anhui Province, put into operation its entire production line. The industrial park will become our R&D base forhigh-performance laser printers, a software compatibility center, and a production base of printers and supportingproducts. As our second production base for high-end, intelligent manufacturing in China, construction of theindustrial park started in September 2022, and the successful commencement of its rst product line marks a newmilestone of Pantum's industrialization process and a new step of comprehensive development of China's printingeconomy.
Geehy Microelectronics' master control module for intelligent sweeping robots uses APM32F407 high-performanceMCU featuring high dominant frequency, high performance, high integration, and resourceful peripherals and iscapable of complex computing and abundant, accurate, and e?cient locating and cleaning functions. It enablessweeping robots to run, rest, and sleep with ultra-low power consumption to e?ectively extend the service life ofbatteries and meet the low-power-consumption need of battery-powered products.
Geehy Microelectronics'APM32F030 outdoor powersolution adopts a PV solarpanel with 300 W inputpower for charging to enablelonger and more efficientoutdoor battery life. It is alsoequipped with a variety ofcircuit protection functions,a number of protectivefeatures, an intelligentinteractive LCD screen,and a variety of interfaces,providing safe and stablecharging and dischargingperformance and better userexperience.
The high-performance, highly cost-effective APM32F035 MCU for motor control rolled out by GeehyMicroelectronics integrates a variety of mathematical computing accelerators and a number of peripheralresources such as high-speed ADC, operational amplifier, comparator, and CAN controller and can greatlysave hardware development cost and improve system performance and stability. For di?erent motor application
The commissioning ceremony
markets, Geehy Microelectronics also rolled out a seriesof highly representative mass-production applicationsolutions for fans, water pumps, two-wheelers, and high-speed blowers. In particular, Geehy Microelectronics'APM32F035 MCU for high-speed laboratory centrifugalmachines replaces the traditional square wave controlsolution with a brand-new high-performance vectorcontrol solution to enable the centrifugal machine tostart running without sudden flipping and stopping. Itcan also accurately control the back charge voltage toreduce noise during ultra-high-speed running, with abetter muting effect and accelerating and deceleratingperformance than existing products in the market, beingan all-around product for motors.
AccelerometerGyroscopeRange sensorPressure sensor
Power supply
Audio player
Display screenMotor drive
Communication module:
GW8811Low-power-consumptionbluetooth transceiver
Display screenPower amplier board
LCD screen
LED lighting
Electronicswitch
Electronic switchElectronicswitchPower supplycontrol
Voltage output
feedbackPush-pull circuit
Rectier lterHigh-frequencytransformer
HVDC
H-bridgeoutputBUCK powersupplyOpto-couplersisolationOpto-couplers
isolationPush-buttoninputElectronic
switchPush-button switchElectricity-poweredDC charging portLithiumbattery pack
Batteryba?e
Electricity-powered
Powersupply
Soft powerswitch
Battery pack
DC/DC power supply
5V USB charging port
220 V AC output
TemperaturecollectionFan control12 V DC on-board charging
Bluetoothmodule
CurrentcollectionCurrent andvoltage collection
Power supplycontrol
Output voltagecollection
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G&G is committed to providing consumers with cost-e?ective, environmentally-friendly supplies, including laser consumables,inkjet consumables, ribbon consumables, and copier consumables. We have more than 1,000 franchise stores in over 100 keycities in China and our sales outlets have covered in excess of 90% of China's cities and counties, meeting the growing needsof o?ce customers. G&G keeps improving its user experience and has earned recognition from the market. For six consecutiveyears, it has ranked rst on JD.com's lists of best-selling toner cartridge and ink cartridge brands. Upholding the mission of"enabling all Chinese people to use domestic consumables", we rmly believe that we will win the trust of the market through ourhigh-quality products and will achieve higher levels of development of our high-quality products.
7.4.3.4 Market recognition
Geehy Microelectronics Won the Certicate of "High-quality Supplier ofAutomotive Grade Chips"
Lexmark Won the "Best Data and Analysis Team for 2023"
Geehy Microelectronics Won the "China Chip" Award
At the awarding ceremony of the "High-quality Supplier of Automotive GradeChips" certificate held during the 2ndAutomotive Chip Industry Conference,Geehy Microelectronics won the certicateof "High-quality Supplier of AutomotiveGrade Chips".
Lexmark won the OnCon Icon Award for Best Data and Analysis Team for 2023 fromOnConferences, marking the external affirmation of the significant organizationalinuence, excellent project innovation and leadership capacities of Lexmark's R&Dteam.
At the Hengqin-Zhuhai-Macao Circuit Industry PromotionSummit and 18th "China Chip" Awarding Ceremonyheld in September 2023, Geehy Microelectronics wonthe "Excellent Market Performance Product" awardfor its encryption chip based on a homemade CPUcore. "Qiangxinbao", the special insurance productfor automotive chips, is a key step for ensuring thelocalization, independence and controllability ofcritical chips. As one of the first integrated circuitdesign enterprises to join "Qiangxinbao", GeehyMicroelectronics will contribute to the furtherdevelopment of the automotive chip industrial ecology.
Lexmark Was Once Again Named among Quocirca Sustainable DevelopmentLeadersIn its report on the Outlook of Sustainable Suppliers in 2023, Quocirca, a global printing and market insightinvestigation company, once again named Lexmark as one of the Quocirca Sustainable Development Leaders in2023. The report highlights the three major advances made by Lexmark in 2023, namely, its manufacturing plantin Mexico obtaining the CarbonNeutral? Manufacturer Certicate, its signicant increase in the use of renewableenergy, and its reduction of energy consumption by 26% from 2015 to the end of 2022 and reduced Scope 1 andScope 2 emissions by 43% from 2015 to 2022. The Lexmark Laser Consumables Recycling Program (LCCP), theLexmark Laser Printer Recycling Program (LECP), and the Lexmark Hardware Remanufacturing Program wereall highly praised in the report.Quocirca also highlights Lexmark's commitments, including reducing the use of non-returnable packages by 50%by 2025, increasing the use of post-consumer recycled (PCR) plastics in product mixes from the present 40% to50% by 2025, increasing the use of PCR and reused consumables to 50% by 2025, and continuing to pursue the100% EPEAT and ENERGY STAR? certication goals for hardware product mixes.
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Geehy Microelectronics Won Two Awards at the China Computer InnovationCongress
Geehy Microelectronics Won the Title of "Little Giant" as a NationalSpecialized, High-end and Innovation-driven SME
Brand-new Update to Pantum's Printing Mini Program on WeChat
G&G Won the Five-star After-sales Service Certicate
On January 10, 2024, Geehy Microelectronics, as invited,attended the 2024 China Computer Innovation Congresshosted by the China Computer Industry Association anddelivered its insights into the industry topic of "Digital andIntelligent Transformation Empowered by Computing andInnovative Development based on Supply Chain-IndustryChain Integration". With its remarkable achievements in coretechnology research and leading industry chain innovation,Geehy Microelectronics won the "2023 China PrintingConsumables Industry Development Award for OutstandingAchievement", and its General Manager Wang Dongjie wonthe "2023 Entrepreneur Award for Outstanding Achievement".
Since its establishment, Geehy Microelectronics has been focusing ondesigning chips for sub-industries and has made rapid progress in industrialcontrol, automotive electronics, new energy and consumer electronicsmarkets. In February 2023, Geehy Microelectronics won the title of "LittleGiant" as a national specialized, high-end and innovation-driven SME for itsyears of deep cultivation in integrated circuit chip design and independentinnovation capability.
Pantum updated its printing mini program on WeChatnamed "Pantum Cloud Print" to keep improving servicequality. After the update, users can now print documentsremotely on WeChat.
In early November 2023, an expert team reviewed all functional sectors andservice processes of G&G covered by its after-sales service managementsystem, product service management system and customer servicemanagement system based on 15 indicators such as quality assurance,product distribution, after-sales maintenance, customer satisfaction andcomplaint handling, according to GB/T27922-2011 Evaluation System forAfter-sales Service of Commodity. In one single review, G&G passed thefirst industry service certification for after-sales service based on nationalstandards, and won the Five-star After-sales Service Certicate, the highestlevel certicate for after-sales service issued by the Ministry of Commerce.
7.4.3.5 Improving user experience
We keep enhancing our product competitiveness by producing e?cient and durable printing machines, adopting ceramic heatingtechnology, developing innovative large-capacity cartridge products, and integrating remote control, duplex printing, and othere?cient, energy-saving, and ink-saving functions, winning critical acclaim from our users.
The Updated Pantum M6700DW Plus Monochrome Laser MultifunctionPrinter
The Pantum M6700DW Plus monochrome lasermultifunction printer is an update to the previous generation.Updates include increasing the memory to 256MB andthe processor frequency to 800MHz, adding low-powerBluetooth and 5G WiFi functions, and upgrading interactiveexperience. This user-oriented update to the product hassignificantly reduced operation difficulties and providesa convenient printing experience. The integration of amobile app, WeChat mini program, and PC app has furtherimproved multi-scenario accessibility to meet di?erent userdemands. The product prints quickly with consistent qualityand meets both office and home printing demands withabundant printing templates and practical scanning andcopying functions.
Pantum Cloud PrintPantum Print APP
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Pantum Printers Are Dedicated to Facilitating Teachers
We always see user experienceas the core focus in product R&Dand aim to provide users withefficient, convenient, and reliableprinting solutions. For users inthe education industry, we hopeto facilitate teacher's work andsupport students' study with ourproducts. Above all, we keepimproving product competitivenessto supply efficient and durableprinting machines. Pantum printersadopt advanced ceramic heatingtechnology for faster printing andlonger service life to ensure thatusers can enjoy more stable anddurable printing services.Second, we have rolled out ourinnovative large-capacity cartridgeproduct to greatly reduce thefrequency of cartridge change,improve printing efficiency, andreduce maintenance costs.Furthermore, remote control ismade accessible on our printersso that users can operate printersremotely through the network.
Test Paper Renovation E?ectively Supports Family Education
In the family education sector, we are committed to providing parents and children with the best possible learningtools through innovative products and functions. The Pantum BP2302W laser printer is the ideal choice for homeprinting. First, the A4-sized printer perfectly ts into the home environment, printing 18 pages per minute andcompleting printing tasks for parents and children with minimal e?ort. Second, the printer is equipped with a one-click handwriting removal function to make test paper renovation e?ortless so that children can print questions towhich they have answered incorrectly on exercise papers with ease. Moreover, the printer emits noise of only 52dB in running mode and only 30 dB in standby mode, enabling a peaceful learning environment at home.
7.4.3.6 Protection of intellectual property rights and patents
Our intellectual property right risks lie mainly in patents, copyrights, and trademarks. To further identify, prevent, and control therisks, we embed the strict examination of intellectual property rights risks into each business department and module and setup the specialty departments to approve documents for key projects. We follow up on each process of the product to assessand identify the risks and then propose suggestions about the solutions. Finally, we produce assessment reports to ensure thepreventability and controllability of the intellectual property rights risks.We carry out management and employee training for intellectual property rights protection, as well as risk prevention publicityand implementation for R&D personnel. We conduct promotional and implementation activities covering the themes of copyrightprotection, patent protection, trademarks, and advertising laws for business management personnel while providing onlinelearning courses for all employees to participate in.
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7.4.3.7 Protection of consumers' rights and interests
We have taken resolute actions and introduced a series of policies and measures to combat unfair competition and counterfeitand shoddy products in the market. To create an orderly market environment and severely crack down on the manufacturingand selling of counterfeit and shoddy products and other illegal acts, we have taken special action and provided incentives andchannels for the reporting of counterfeit and shoddy products.
Informants who provide clues to illegal acts, actively cooperate with investigations, and help us locate theplants and stores making or selling counterfeit and shoddy products (including raw materials and semi-nishedproducts) will be rewarded CNY20,000 to CNY100,000.Informants who have provided evidence and clues to counterfeit and shoddy products but did not participatein the investigation will be rewarded CNY200 to CNY2,000 if the clues provided agree with the facts asinvestigated.Informants who meet the above conditions will be rewarded according to the degree of harm and economiclosses to us caused by the ascertained illegal acts, as well as the quality of the clues.
Pantum's o?cial hotline for reporting: 0756-6930775 (in working days)Email: Supplies@pantum.com
WeChat official account: "Pantum Print" - Sales Service - Anti-counterfeiting, or "Pantum Service" - Self-service - Anti-counterfeiting.
O?cial website: https://www.pantum.cn/support/inquiry/reportInformants may contact us as follows and report such clues by email, phone, mail, visit or any other means.
We have demonstrated a strong commitment and relentless e?ort toward innovation and R&D in terms of patent protection.Globally, we have set up nine R&D centers in different countries and regions to ensure that we can keep up with globaltechnological trends and take in the most updated innovative thinking and technological results. Through the collaboration ofthese R&D centers, we have obtained 5,862 patents for our products, technologies, and services.We are well aware that patented technologies are critical because they not only protect our development results legally but arealso important embodiments of our innovation strength and market competitiveness. After ceaseless technological developmentand innovation, we have made a series of technological breakthroughs, which have made our products uniquely competitive andlaid a solid foundation for our long-lasting development.The perfect patent system we have built protects our intellectual property rights, eliminates the risk of technological results beinginfringed upon, and earns condence and trust from our partners and customers. We will continue to increase investment inR&D, promote technological innovation, and enrich and improve our patent library to maintain our leading position amid ercemarket competition.
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7.4.4 Indicators and objectives
7.5.1 Concept
7.5.2 Strategies
7.5.3 Actions and practices
7.5.3.1 Improving the information security management system
7.5 Privacy Protection and Information Security
We attach great importance to information security management and privacy data protection and strictly abide by the DataSecurity Law of the People's Republic of China, the Cybersecurity Law of the People's Republic of China, and other relevantlaws and regulations. Upholding our "Data Minimization" principle, we formulate comprehensive policies, perform periodicrisk assessments, develop emergency response mechanisms, intensify security certification management, advance privacyprotection and information security training, and orderly promote privacy protection and information security management.We have formulated and issued the Management Measures for Personal Information Protection Management, the Guide toPersonal Information Protection Compliance, the Condentiality Management System, the Emergency Response Specicationof the Information Management Department, the Management Regulation on Engineering Safety Control, the ManagementRegulation on Telecommuting, the Guide to GDPR Compliance and other management policies for data security and emergencyresponse to specify and standardize the management regulations and requirements for information security and privacyprotection. Furthermore, we organize security audits and assessments on a regular basis to identify potential security risks anddevelop corresponding mitigation measures and timely update software and systems to ensure complete conformity to privacyprotection and security management requirements.
To intensify and improve our information securitymanagement, we have established the Information SecurityManagement Committee for the overall management ofall branches and subsidiaries of the Group and specifiedthe responsibilities of each branch and departmentfor information security management. The Chairman,Vice Chairman, and members of the committee are allinformation security experts with deep experience andprofessional expertise. The committee is mainly responsiblefor developing and managing our general informationsecurity system, formulating information security policiesand supervising the implementation of such policies,ensuring effective protection of our information assets,preventing potential security risks, and creating a safe andreliable information environment to support our businessoperation and innovative development.
We are aware of the significance of information security and privacy protection to customers. With technical support asthe means, institutional constraints as the cornerstone, and continuous improvement as the driving force, we have built acomprehensive, dynamic, and sustainable information security protection system. We also take into account privacy productionand information security in the process of product and service design to guard the safety and condentiality of users' information.
7.4.3.8 Listening to consumer feedback
We understand that consumer feedback and comments are signicant forces that drive our ongoing progress. Therefore, weconduct periodic user satisfaction surveys and respect and value the comments of every user to further improve our productsand services, meet consumers' demands and expectations, and provide higher-quality products and services. In our 2023 usersatisfaction survey, we collected feedback from the most extensive users through questionnaires and interviews and expressedour gratitude to certain respondents through lucky draws.In 2023, we recorded customer satisfactionlevels above
Objectives Progress
Continue to lower theproduct rework rateMake service systemmanagement more matureImprove user experienceIntensify the protection ofintellectual property rights
We carried out the Pantum Quality Month activity to promote thequality culture of "Do It Right The First Time".Our major products of the three principal business sectors passeda number of international security certications.The mass production and roll-out of A3 printer marks theimprovement of our R&D and quality control capacities.Geehy Microelectronics won the "China Chip" award, andLexmark was once again named among Quocirca SustainableDevelopment Leaders.Carry out periodic user satisfaction surveysWe have obtained 5,862 patents for our products, technologiesand services.
Information Security Management Committee
ChairmanMembersVice Chairman
90%
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7.5.3.2 Reinforcing the construction of the information security system
To ensure thorough protection of our information assets, we keep strengthening the foundation of our information securitysystem and have taken a series of measures to improve the information security level on the whole, covering physical accesscontrol, application system access, network security, and security certication and examination. We are committed to buildinga comprehensive, multi-layer information security protection system to e?ectively prevent and cope with information securitythreats and solidly guard the safety of corporate operation and customer data.
Lexmark Achieved Excellent Security Through a Security Design ApproachIn the face of increasing threats, the security approach of multi-layer printing based on software and services ontop of hardware is gaining popularity. Lexmark's hardware product mixes are supported by extensive securityconsultation services and powerful cloud printing service products, meeting the security demands of organizationsof all sizes. Lexmark's security services are composed of two pillars, with one being the security assessmentservice that analyses and assesses customers' existing printing environments and provides advice on how toimprove their printing security settings and procedures, and the other one being the conguration managementservice that helps manage customers' printer group settings, rmware levels and access control.
Ninestar Mall Guards the Trust of Every Customer with the Highest IndustryStandardsNinestar Mall has passed the Grade 3 Information System Security Protection Certication of the public securityorgan. This certification is the most authoritative information product security certification in China, and alsothe highest level of protection certication for non-banking institutions. Passing this certication and ling withthe public security organ indicates that Ninestar Mall has industry-leading technical competence in informationsystem security protection, and can e?ectively guard the safety and transparency of its information data in thecommunication process and practically address the trust issue and privacy protection issue in the data exchangeprocess, and that we satisfy with national standards in terms of technological security and system management,and have established an appropriate network information security protection system.
Pantum Has a Fully-independent Chip Security Architecture, Strongly Supportingthe Information Security of Printers and High-end Development of HomemadePrintersPrinters are of extremely great signicance in the information security sector, and are important parts of computerperipherals. After years of technological exploration, innovative development and technical accumulation, wehave established a huge basic patent technology platform, and fully acquired various printer source codes andcomplete core software and rmware technologies, and we possess printer engines with independent intellectualproperty rights. Our printers adopt the master control SoC chip based on UMC28 and UMC40 nanometerprocess technology and the homemade heterogeneous multi-core embedded 32-bit CPU, and are capable ofcolor printing, photocopying, color scanning and faxing. Our printers are equipped with the fully independentchip security architecture, feature high performance, prominent security strategy, China's national cryptographyand commercial cryptography standards, and a security protection mechanism, and are strong support for theinformation security of printers and high-end development of homemade printers.
We have established a monitoringsystem. Through monitoring, weimplement supervision and traceabilityfor the areas with different securitylevels, such as office areas andworkshops. We have also developedzoned and hierarchical managementand control for personnel, set updifferent access control areas fordi?erent personnel, containing accesscontrol systems, metal detection doorsand illegal entry alarms, etc.
We have activated relevant accesspermissions to application systemsby making an application and reviewaccording to the responsibilitiesand office demands of variouspeople. Subject to the permissions,administrators access systemsthrough the fortress computer, andexternal users access our internalnetwork remotely through VPNand VDI, thus minimizing userpermissions.
We have carried out the constructionof the security domains of the wholecompany, separated personnel ofvarious network areas through borderfirewall, Intranet firewall, anti-virussoftware, network access control,desktop operation managementand network operation managementmeasures, and conducted accesscontrol accordingly. As such,the objectives of protection,fragmentation, risk segregation andunied control have been achieved.
Physical access controlApplication system accessNetwork security
We actively promote major subsidiaries to pass the ISO 27001Information Security Management System Certification and Grade3 Information Security Protection Certification, demonstrating ourprofessional and compliant information security management.Every year, we engage an external institution to audit ISO 27001compliance of major subsidiaries to ensure continuous compliancewith security standards. Besides, our Audit Department conductsannual audits of the security of our information systems.
Security certication and examination
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7.5.3.3 Information security and privacy protection training
Ninestar concentrates on the construction of the security and privacy protection awareness of employees. We hold informationsecurity training and evaluation when the employees join the Company; we employ external professional institutions toregularly conduct themed trainings for the employees of each department; in order to promote all employees' consciousness ofinformation and privacy security and highlight information security, we advocate daily information security for all employees interms of laws and regulations, general network security common knowledge, password management, information classicationand condentiality, and internal communication precautions, etc.
7.5.4 Indicators and objectives
7.6.1 Concept
7.6 Occupational Health and Safety
7.6.2 Strategies
We view our employees' physical and mental health as a crucial foundation for the Company's development, and we arecommitted to creating a safe and healthy working environment for our employees. In strict accordance with the Law of thePeople’s Republic of China on the Prevention and Control of Occupational Diseases, the Work Safety Law of the People’sRepublic of China, the Provisions on the Administration of Occupational Health at Workplaces, and other applicable lawsand regulations, the Company has formulated the Occupational Health Management System, the Occupational HealthManagement System, the Work Safety Management System, the Occupational Hazards Management System, the HazardousChemicals Management and Usage System, the Occupational Disease Hazard Warning and Notification System and othersafety management policies, to build a dual prevention mechanism for hierarchical control of safety risks and identication andmanagement of hidden hazards, for e?ective prevention of extra serious safety accidents. We are advancing the Work SafetyStandardization Level Two Enterprise Certication at the Group level and securing ISO 45001 Occupational Health and SafetyManagement System certication for all major subsidiaries, with some subsidiaries already having achieved this certication.In terms of occupational health and safety management, we focus on enhancing and perfecting our safety managementorganization structure and responsibility mechanisms. The Group Safety Committee Office is responsible for overallcoordination, with each major subsidiary sta?ng dedicated safety management teams to carry out daily safety managementtasks. These teams conduct regular safety management meetings weekly, monthly, and quarterly. We have clarified theappointment processes for persons in chief charge of safety and safety management personnel and ensured that employeesat all levels have signed the statement of safety responsibilities. We have implemented the responsibility system for all sta? andpurchased corresponding professional insurance policies, including work safety liability insurance and forklift insurance.
We integrate the core concept of safety into our Company Culture, fully aware that occupational safety is a fundamentalrequirement for protecting the lives and health of our employees. We are committed to establishing a comprehensivemanagement system for occupational health and safety, enhancing safety education for employees and stakeholders,conducting daily inspection rounds and regular maintenance, actively preventing and controlling potential safety hazards in theworkplace, e?ectively preventing accidents during production processes, minimizing work-related health and safety risks to thegreatest extent, and promoting the physical and mental health of our employees. We have adopted a series of managementstrategies tailored to the business characteristics of our headquarters and subsidiaries, striving for continuous improvement inemployee occupational health and safety management performance to achieve best practice standards.Objectives ProgressThree-year objective: Perform rened security management of theGroup, intensify software and network security management, andcarry out audits of databases and codesFive-year objective: Realize data grading and classification,continue to improve the "three center in two cities" architecture,and upgrade the hybrid cloud architecture deploymentIn the following three to ve years: Expand cloud and AI securitycontrol from the aspects of network security, application security,system security, terminal security and physical security, in order tosupport and facilitate our business development
We have refined the informationsecurity management systemand formulated the ManagementMeasures for Personal InformationProtection Management and theGuide to Personal InformationProtection Compliance.We have been building up theinformation security system, andorganizing regular informationsecurity and privacy protectiontraining.
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7.6.3.2 Occupational health and safety certication
We highly value occupational health and safety management and actively encourage our major subsidiaries to obtain the ISO45001 Occupational Health and Safety Management System certication. Our implementation plan includes a comprehensivereview and improvement of our current safety management systems to ensure they meet the ISO 45001 requirement standards.We will conduct specialized training and educational activities to raise employees' awareness of the importance of occupationalhealth and safety and ensure they understand and are able to implement the new management system. Furthermore, we willcollaborate with professional certication bodies to arrange internal audits and management reviews to assess our progress andidentify further improvement measures. Our goal is to ensure that all subsidiaries not only achieve ISO 45001 certication butalso continue to meet and exceed the requirements of this standard, enhancing our market competitiveness and sense of socialresponsibilities.
7.6.3 Actions and practices
7.6.3.1 Annual safety management priority initiatives
Provision of safety equipmentHealth examinations of employees
Regular safety inspections
Prevention and control of occupational diseases
Special safety inspections
Safety culture promotion
We regularly conduct safety hazard inspectionsand emergency drills. Safety o?cers in productiondepartments perform self-inspections and self-corrections daily. The safety management teamorganizes the persons in chief charge of safetyfor safety inspections every quarter. The safetysupervision department carries out specialinspections monthly, covering noise preventionand control, hazardous chemical management,building lightning protection detection, etc. Anydiscovered hazards require the responsibledepartments to respond and rectify withina specified deadline, ensuring continuousimprovement of safety performance and timelycorrection of safety issues.
We have invited professional testing organizationsto the production sites for the detection andassessment of occupational hazards, andorganized occupational disease examinations foremployees holding posts exposed to occupationalhazards.
To provide employees with a healthy and safeworking environment, we set access control cardsand face recognition for restriction in a bid tostrictly control the use of facilities by employees;provide necessary labor protection suppliesfor employees who need them, and install 24-hour surveillance cameras to identify dangerousdisciplinary violation; use ventilation facilities andnoise-reducing facilities and take other technicalmeasures for prevention of occupational hazards;and furnish a medical room, eyewash equipmentand other emergency facilities for occupationalhazards.
We organize and carry out regular healthexaminations for our employees, providing ouremployees with occupational health checkupsfrom before onboarding to departure and payattention to specific positions that pose a threatto health, rotate employees' positions, andcomprehensively ensure the environmental healthand safety of employees.
For the Company's major hazards, specialinspections are conducted quarterly. A third-partysafety service institution is engaged to inspectthe potential safety hazards, special equipment,occupational health and dust removal system ofthe Company and to assess the risks in somenew equipment or change in the process on aregular basis, and we carefully carry out specialrectifications and take corresponding measuresfor such risks.
The Company has formulated documents suchas the Administrative Provisions on Work SafetyEducation and Training and Employment withCertificates, and conducts work safety monthand related safety training on emergency rescue,fire safety, dust explosion prevention, andspecial operations, etc. We provide the three-level onboarding safety education for commonworkers, and for safety managers, we conductannual training for occupational health managersto work with certificates; we regularly providespecial monthly educational training for thoseemployees in positions exposed to occupationalhazards and conduct ad hoc special occupationalhealth training and education; we post postersabout occupational safety to publicize nationallaws and regulations on work safety, work safetyknowledge, and the Work Safety ManagementSystem of the Company, increasing all staff’sawareness of the importance of health and safety.
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7.7.1 Concept
7.7.2 Strategies
7.7.3 Actions and practices
7.7 Community Philanthropy
As a socially responsible enterprise, we actively participate in social philanthropic undertakings, endeavor to give back to thecommunity, and fulll our due social responsibilities. Adhering to the corporate philosophy of "Mutual Creation, Mutual Sharing",we take the initiative to participate in welfare undertakings, resonating with national development strategies and activelyundertaking our due social responsibilities while having a continuous and positive impact on the local community.
With a strong sense of responsibility and mission towards the country and nation, we have made it our long-term strategy toactively fulll our corporate social responsibilities. We actively respond to national strategies and have established the NinestarLove and Public Welfare Management System, forming an institutionalized, systematic, and procedural social responsibilitiesmanagement approach to ensure the e?ective implementation of related activities. In 2007, we partnered with the China RedCross Foundation to establish the "Ninestar Angel Care Program" (formerly "Ninestar Angel Love Fund"), continuously carryingout activities in areas such as educational support, environmental protection, poverty alleviation, and critical illness assistance.
We are keenly aware of the importance of education to the country, communities, and families. As such, we focus on investing ineducation and have been committed to contributing to community development through educational assistance. We value andcare for students because they represent the future of the country and their growth requires social attention and support. Wewill continue to pay attention to the development of education, actively participate in educational assistance, and contribute tobuilding knowledge-rich and talented communities.
7.7.3.1 Educational assistance
Providing Scholarship to Students of the University of Hong KongIn 2023, we donated CNY 8.5 million to the University of Hong Kong to fund student scholarships and relatedexpenses, representing our emphasis on and commitment to educational assistance. Our scholarship programaims to support academically excellent but economically disadvantaged students, enabling them to focus on theirstudies without worries and pursue their dreams. We believe that through our assistance, these students will beable to unleash their potential and contribute to societal development.
Investment in work safetyamounted toCNY
The number of work-related injuries was
The coverage rate of annualwork safety and occupationalhealth training for employeeswas
The number of safetyaccidents wasmillion
The number of potentialsafety hazards rectiedwas
The training hours ofproduction safety andoccupational healthwere
The number of work-related deaths ofemployees was
The rectication rate ofpotential safety hazardswas
The number ofparticipants in worksafety and occupationalhealth training was
20.1955
100%
4,706
35,638
100%
12,224
Occupational safety management performance data
7.6.4 Indicators and objectives
Objectives Progress
No deaths, res, explosions, or other major accidentsNo accidents related to special equipmentNo industrial safety production accidentsNo serious injuriesThe incidence rate of occupational diseases is zero.Promotion of standardization of safety culture constructionAdvancement of all major subsidiaries through ISO 45001 OccupationalHealth and Safety Management System Certication
No deaths, fires, explosions,or other major accidents haveoccurred this year; no accidentsrelated to special equipment;no industrial safety productionaccidents; no serious injuries;and the incidence rate ofoccupational diseases is zero.Full review and encouragementof improvement of existingsafety management systemsto ensure compliance with ISO45001 standards
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Following China's Belt and Road Development and Fullling InternationalSocial ResponsibilitiesWe donated printers to schools in the Vojvodina province of Serbia to provide support to local educationalinstitutions. We also visited the schools that received the Pantum printers along with the national educationauthority and the state education authority, which was reported by RTV, a local TV network.
To thoroughly implement the cooperation strategy in Zhuhai and Zunyi and pursue rural revitalization while consolidatingachievements made in poverty alleviation, we joined forces with local vocational schools to develop a new model of integratingvocational education with industry and university-industry cooperation. By doing so, we aim to cultivate professional talentwith technical skills that meet market demands to support the sustainable development of local economies. In addition, weactively responded to the national education assistance policy, took rural revitalization strategies into consideration, and initiatedscholarship projects aimed at inspiring and supporting outstanding students to pursue study, cultivating more talent for ourcountry.
Pursuing green low-carbon development, Ninestar is always on the way. Since Ninestar became a member of the Society ofEntrepreneurs and Ecology in 2014, we have been participated in various ecological projects such as the "One Hundred MillionAmmodendron Trees" program for 10 consecutive years. This program is committed to planting 100 million ammodendron treesand restoring 2 million mu (1 mu is equal to approximately 666.67 square meters) of vegetation in the Alxa region, therebyimproving the local ecological environment, curbing desertication trends, and enhancing the living standards of local herdsmenwith the derivative economic value of these trees. As of 2023, we have donated a total of 29,000 ammodendron trees, coveringan area of 580 mu.
7.7.3.3 Rural revitalization
7.7.3.4 Environmental protection actions
7.7.4 Indicators and objectives
A good community environment is essential for the stable development of an enterprise. We consider it part of our responsibilityto contribute to society and have developed a Company Culture based on giving back to society. We actively maintain contactwith the community, deeply understand its development needs, and collaborate with various stakeholders to take practicaland e?ective actions to improve local residents' life quality, promoting community development together. In the future, we willcontinue carrying out public welfare projects in elds such as culture, education, environmental protection, and critical illnessassistance, providing support to those in need.
7.7.3.2 Community support
Sponsoring a Geo-environmental Risk Assessment Research Project at ChinaUniversity of Geosciences (Wuhan)
Nursing Home Project in Tanghe County, Nanyang City, Henan Province
We sponsored a geo-environmental risk assessmentresearch project at the China University of Geosciencesin Wuhan. Focusing on the Tongmai-Gabaijia area, theresearchers conducted a study on the risk assessmentof crustal stability, achieving significant scientific andpractical results. To date, we have donated a total ofCNY400,000 to this project. This philanthropic support inthe eld of geological research represents the initial stepsof our Care Program in the scientic research sector andit has achieved our expected results.
During the Reporting Period,we donated CNY720,000 toredevelop the previous site ofWangyingcun Primary Schoolin Tanghe County, NanyangCity, Henan Province, into anew nursing home.
Objectives Progress
To promote community development and carryout public welfare activities every year in fieldswhich may include educational assistance, povertyalleviation, environmental protection, health care, etc.
We actively assumed our due social responsibilitiesand carried out a series of public welfare activitiesto promote work such as educational assistance,community support, rural revitalization, andenvironmental protection actions.
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Chapter Navigation
8.1 Green products
8.2 Electronic waste recycling
8.3 Energy management
8.4 Waste management
8.5 Water resources management
8.6 Response to climate change
Contents
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8.1 Green products
8.1.1 Philosophy
8.1.2 Strategies
8.1.3 Actions and practices
8.1.3.1 R&D and sales management of the products with clean technology
We earnestly conduct product lifecycle management in adherence to the philosophy of innovation and green R&D. We considerclean technologies as one of the core strategies of green product R&D, while paying attention to all phases, such as the designof the products with clean technology, green packaging and recycling. Moreover, we are committed to driving the input andapplication of clean technology and eco-friendly materials across all business segments through advanced production processesand equipment to reduce the environmental impact of the product lifecycle and manufacture eco-friendly and green products.
Based on the management philosophy of product lifecycle management covering "R&D--Design--Material--Production--Recycling", we continuously push forward policy improvement, raise our investment in R&D, and set up management targets tomanage green products.
We have always been "market demand-oriented, technological innovation-centered" and continue to increase investment inclean technology R&D. Our overall R&D expenses in 2023 stood at CNY1,751 million. In order to further support technologicalinnovation and R&D, we plan to invest more than CNY500 million in the next five years, mainly for clean technology R&D,energy consumption reduction, new xture equipment upgrades, and low-power chips. Meanwhile, we have doubled our e?ortsfor the identication and database accumulation of our current products with clean technology and promoted the necessity ofclean technology R&D in the R&D department of each business to lay a sound foundation for strengthening the internationalcompetitiveness of our products.We attach importance to the cultivation of talent in clean technology R&D and earnestly develop eco-friendly and energy-savingproducts, including low-power energy-saving printers, Unismart devices, and low-power chips. Concurrently, we use advancedand eco-friendly materials and designs to reduce energy consumption and waste emissions during the use of our products andenhance product recycling. Furthermore, we devote ourselves to upgrading technology and equipment, optimizing productionprocedures, reinforcing energy e?ciency by developing energy monitoring systems and applying air compressors, and reducingthe environmental impact of production activities.
In order to raise the energy e?ciency of printers and shorten the warm-up time, the research team studied low-power fast heating technology based on ceramic sheets and fixing films. A model of the heating system wascreated based on the advantages of ceramic sheets, such as fast heating, high heat transfer e?ciency, and lowheat loss, as well as the xing structure consisting of ceramic sheets and xing lms. The heat transfer rate of thekey parts and components for ceramic heating was improved, and a more rened on-demand solution to heatingtemperature control was used to reduce the printing temperature. It is expected that the energy consumption ofthe technology will be reduced by 50%.
We have established Incentive Policy for Eco-friendly Packaging R&D, which stimulates the team to actively proposeinnovative and green packaging materials and solutions and provides our customers with greener and more sustainablepackaging solutions. Meanwhile, we keep raising investment in products with clean technology to reduce energyconsumption of products.
We are committed to designing a sustainable portfolio of products and solutions using eco-friendly materials, parts, andcomponents to minimize the environmental impact of the product lifecycle.
We have formulated management standards, such as the Regulations for the Management and Control of HazardousSubstances and the Control List of Hazardous Substances, strictly observed domestic and international standards forgreen products, such as the Measures for the Restriction of the Use of Certain Hazardous Substances in Electrical andElectronic Equipment, the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS), and theRegulation on the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), utilized raw materialsin compliance with relevant regulations, and strictly controlled chemical substances, such as lead, cadmium, mercury,and hexavalent chromium, to ensure environmental friendliness of raw materials.
We stress the recyclability, degradability, and reusability of products, have formulated the Design Regulations on TonerCartridge Packaging Process and the Design Regulations on Packaging Process of Ink Cartridge and Ink as the designstandards for product packaging, and advocate the use of eco-friendly materials to improve the competitiveness inlogistics costs and reduce the waste of packaging materials.
We prohibit the export of electronic waste to non-OECD countries in line with international laws and regulations, suchas the Basel Ban Amendment to the Basel Convention and the Stockholm Convention, and strictly control the use ofpersistent organic pollutants (POPs) and related hazardous substances in printer products. For instance, we practicerened management of halogen materials, such as brominated ame retardants (BFRs) and polyvinyl chloride (PVC).
R&D
Material procurement
Product manufacturing
Product recycling
International regulations
Low-power fast heating technology based on ceramic sheets and xing lms
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We actively practice energy conservation in product design and enhance the energy efficiency of our products throughcontinuous innovation and technological upgrading. Our products meet the energy e?ciency and performance standards of allmarkets. All four new engines developed by Pantum are ENERGY STAR certied. Additionally, our branded printer series haspassed the China Energy Conservation Certication from the China Quality Certication Center (CQC) and reached the ChinaEnergy E?ciency Level Standard Level Two or even Level One. Furthermore, we utilize advanced prisms and electronic chipsfor testing to meet more e?cient technology requirements, further reducing our products' energy consumption.We keep driving innovation and breakthroughs in clean technology and closely monitor the market performance of our productswith clean technology. In order to manage and evaluate our products with clean technology more accurately, we have classiedour green products into two categories, namely products with green design and products with clean technology, to establishmore pertinent strategies for green product development and to raise the sales of green products. Our sales of green productsamounted to CNY2,703 million in 2023, wherein the sales of products with clean technology reached CNY1,012 million,representing 37.44%.
Our sales of green productsamounted to CNY
wherein the sales of products withclean technology reached CNY
representingbillion in 2023
billion
2.7031.01237.44%
8.1.3.2 Green product packaging and materials
Green product packaging
Application of green packaging materials: Optimizing the packaging of tonercartridge products and ink cartridges
New Honeycomb Core Paper BagsOld Packaging
We are convinced that green packaging materials indicate lifestyles and social values. We have endeavored to develop greenplastic-free packaging that is recyclable, biodegradable, reusable, and eco-friendly, eliminated excessive packaging, and strictlycontrolled the discharge of hazardous substances. We primarily enhance the use of eco-friendly packaging materials throughthe following measures to reduce carbon footprint and resource consumption.
In order to minimize the use of plastic packaging in toner cartridge products in 2023, we used ller materials, suchas paper cards and bags with high recycled content, in certain products to replace plastic protection, which not onlyincreased the proportion of eco-friendly recycled materials but also strengthened packaging innovation and customerexperience.Our self-developed honeycomb core paper bags have a number of significant advantages compared with the oldpackaging. First, our patented paper eco-friendly material (ZL202320620126.3) is designed to abandon the traditionalblack paper bags and EPE foams and protect products. Second, the new package does not require inner wrappingmaterials, thus saving two processes and drastically improving production e?ciency. This change reduces waste andsaves storage space and transportation costs. The resulting cost savings represent more than 15%. Our eco-friendly,e?cient, and low-cost new honeycomb core paper bags have become the industry's best practice in green packagingmaterials.
We have reduced the weight of packaging by approximately 3,000,000 kg since 2022, with an average volume reduction of11%, in line with the requirement of light and thin packaging. The average freight per ink cartridge has been decreased by 22%.We have reduced the use of packaging materials by adopting a mini blister packaging solution. The weight of blisters has beenreduced by 25% and the source of plastic pollution has been reduced by 6,000 kg per year on average.
We promote the use of recycled kraft boxes instead of traditional coated paper packaging. All our outer cartonsfor transportation are made from 100% renewable materials.The utilization of renewable materials has been increased in some materials.Molded pulp packaging was added to the packaging materials of our toner cartridge products in 2023 toachieve eco-friendly, plastic-free, and biodegradable packaging.
Lexmark data is not included here
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100% vegetable ber and100% naturally degradable
100% recycled
Environmental protection
Good protectionConvenient treatment
of packaging
Features of the newhoneycomb core paper bag
No plastic waste
The material is made from greenplant bers, 100% biodegradable andnaturally degradable. Meanwhile, it iscompletely organic, as its componentsalso contain pulp and long native seapine bers. The kraft paper canbreak down into cellulose bers
within a few weeks,just like leaves.
The material is 100% recyclableand can be reused (as mailingbags) or remanufactured.
Eco-friendly packagingmaterials are used to protect the
environment.
It has excellent strength,durability, and pressure-bearing
performance.It can be compressed and simplytreated. Normally, it can be throwndirectly into a trash can.
We replace traditional plasticpackaging, such as EPE foamsand plastic bags, reduce a large
amount of plastic waste, anddevelop and design streamlinedeco-friendly packaging to protect
the environment.
Persistent e?orts have been made to reduce packaging materials. During the Reporting Period, built-in cartridges were used forthe two new printers. The volume of some printers with an automatic document feeder (ADF) was reduced by 10%-30%. In linewith our strategic objectives, we intend to replace the current plastics in the shells of some products under mass production witha large proportion yet low mechanical property requirements with recycled plastics by considering both cost and performance.Therefore, we will gradually replace the current product packaging with recycled materials or bio-based materials. EPEfoams were used to replace all EPS in our printer products, toner ink cartridge products, and after-sales accessories in 2023.Meanwhile, we reduced the use of packaging materials by shrinking packaging volume, reducing stickers and packaging lms,and replacing carton coating with water-based varnish.
Concurrently, we have optimized ink cartridge packaging. The traditional square packaging of ink cartridges sold online has beenchanged to at packaging, thus reducing the thickness of cartons and shrinking the packaging volume by 35%. The streamliningof packaging not only reduces material costs and protects the products, but also meets the minimum requirements of e-commerceplatforms for classication of logistics costs and product dimensions. The transportation cost is saved, as the average freight perbox of ink cartridges has been decreased by 22%. Additionally, we have reduced the use of packaging materials by adoptinga mini blister packaging solution. The weight of blisters has been reduced by 25% and the source of plastic pollution has beenreduced by 6,000 kg per year.
By the end of the Reporting Period,
total packaging material used fornished products
total sustainable packaging materials used
kgkg23,749,31318,154,263
we have reduced the weight ofpackaging by approximately
with an average volume reduction of
the average freight per box of inkcartridge products has been cut by
Since 2022, to meet the requirement for light and thin packaging,
kg3,000,00011%
22%
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Green product materialsWe adhere to the principles of reduction and harmlessness, give priority to the use of S1 raw materials and eco-friendlymaterials, and upgrade processes and technology. Meanwhile, we cut resource consumption, hazardous raw materials, andthe generation and discharge of pollutants by minimizing the use of resources, reducing pollutant emissions, and optimizingproduction procedures.The environmental specications for our printer products were optimized and the use of materials that pollute the environmentwas strictly limited in 2023. In terms of consumable products, sponges were reduced based on R&D and innovation to reducethe waste generated at the end of the product's lifecycle.
With respect to green technology patents, we developed the "new trigger toner cartridge", which has been certied as a "High-quality Product" of Guangdong Province for its advantages of high developer utilization, low plastic content in consumable parts,and ease of use, and for which we have obtained three invention patents. Meanwhile, we developed the "cartridge without acharging roller" in the same year, which reduces high-density rubber in the toner cartridge products by 30% and achieves thesame printing quality as the original. In regard to plastic reduction, the proportion of plastic in our e-commerce bottle series wasreduced by 49% compared to the same model. Assuming their shipment quantities remain consistent, it is expected that theplastic waste of the former will reduce by approximately 300 kg annually. Currently, we are developing a "toner cartridge withouta clean squeegee", which can reduce polymer materials by another 20% and is in the testing stage.
By the end of the Reporting Period,
the number of models met RoHSthe number of models passed the REACH-
based testing23,80423,366
8.1.3.3 Green product certication
We focus on establishing a sustainable system of products and solutions that can minimize the environmental impact of theproduct lifecycle. We are committed to technological innovation in energy efficiency, prioritizing the use of green materialsand avoiding the use of toxic chemicals to ensure human health and safety. Meanwhile, we endeavor to maximize the use ofrecycled components in product design to reduce resource waste. Additionally, we strictly conform to domestic and internationallaws and regulations for green products, covering all processes from production to use to ensure that our products satisfyenvironmental standards. Several product series from our subsidiaries have received environmental protection certications,such as the "China Environmental Labeling Certification", "IECQ QC080000", the "Nordic Swan Ecolabel License", the"ENERGY STAR" standard, and the certification of the "Forest Stewardship Council (FSC)", highlighting their outstandingperformance in low toxicity, low hazardous emissions, and resource conservation. These certications not only strengthen ourproduct competitiveness but also reinforce customers' trust in our products.
Additionally, in order to assess and manage the environmental footprint throughout the product lifecycle, we conducted the LifeCycle Assessments (LCAs) over our products with reference to ISO 14040 and ISO 14044, covering all phases, such as productdesign, manufacturing, distribution, use, and end of lifecycle. We also developed and implemented an HSF management systemto manage the entire process from design and supply chain to product recycling.Sharing of data on green product certication
the number of products obtained domesticauthoritative environmental protectioncertificates (e.g. China Energy ConservationCertification and the China EnvironmentalLabeling Certication)
the number of products obtained foreignauthoritative environmental protectioncertificates (e.g. the Nordic Swan EcolabelLicense and the ENERGY STAR standard)
By the end of the Reporting Period, among the Ninestar products on sale
10,71424,550
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Geehy launched an application solution for the APM32F411 dedicatedoutdoor air system
8.1.3.4 Enhance product service life
In adherence to the principle of reuse, we incorporate the design concept and feature of multiple uses in our products, such aseasy-to-rell products, high-capacity toner cartridge products, and continuous-delivery ink cartridges, to reduce production cost,cut resource waste and waste generation, and improve the reuse rate of products or components.
We conscientiously select high-quality raw materials, keepstudying components' service lives and product maintenance,and strive to improve product durability while constantlyoptimizing product design for ease of repair and upgradingand reducing disposal and replacement. The imaging systemof Pantum printing devices adopts dual-component imagingtechniques, which can print up to 60,000 pages and reduce theproduct replacement cycle. Parts and components with a higherservice life, such as ceramic sheets, xing lms, high-service-life organic photoconductors (OPC), and developer rollers, areapplied to new product projects to raise the service lives ofproducts, reduce carbon emissions, and save raw materials andenergy required for new product production and marketing.
In response to the national strategies of carbon neutrality, energy conservation, and emission reduction, wecontinue to upgrade and optimize products and devices. The Unismart device, as an innovative green product,is designed in line with the principles of no toxicity and harmlessness. All hardware is made from eco-friendlymaterials and the device has passed environmental protection standards, such as the European Union REACHand RoHS. Concurrently, we attach importance to lightweight materials, greatly reducing the weight of parts andstructures and enhancing its overall mobility and operational e?ciency.The Unismart device is applicable to such scenarios as inspecting consumable chip data, judging chip quality, anddisplaying the model number, thanks to its integration in chip inspection, upgrade, burner, and reset. Based on thereuse of consumable chips, the device can not only solve customers' inventory issues and save transportation,management, and procurement costs but also reduce the recycling cost of consumables and alleviate theenvironmental pollution of electronic waste.
Pantum o?ers consumers a green printing experience with its high-quality products and innovative technologies.In terms of the use of original consumables, Pantum selects high-quality carbon, high-quality cartridge chips,and eco-friendly rubber parts to ensure a high transfer rate and rm xing, reduce leakage, loss of powder, andfugitive powder, as well as prolong the service life of the printer. Meanwhile, the simple and convenient installationof original consumables greatly improves the user's operation and experience. These green practices not onlystrengthen the product's value, but also contribute to environmental protection.
The dedicated outdoor air system industry is rapidlyadvancing and is driven by carbon peaking and carbonneutrality. In response to the demand for bi-directionalflow motor control for dedicated outdoor air systems,Geehy has launched an application solution for theAPM32F411 dedicated outdoor air system. The solutionadopts non-inductivefield-oriented control (FOC) anda dual resistance sampling mode to control both theinlet and exhaust fans of the dedicated outdoor airsystem. Characterized by largestorage capacity and ahigh-performance processor, it can effectively reduceenergy consumption and improve the energy-savingperformance of the system. Meanwhile, Geehy's dual-motor controlsolution supports the inductive controlmode. Its high-precision chip facilitates precise motorcontrol. It can be widely applied to balance cars, gatemachines, electric vehicles, and washing machines.
Unismart device contributes to green goals: Attaching equal importance toeco-friendly materials and high performance
Pantum's green practices in original consumables
DC power
supply
Test headTest head handleTest head
Third-generation
mainframe
Test headconnection cable(third-generation)
Test head
connectioncable (second-
generation)
Excellent quality and simpleand convenient installation
PowdercartridgeDrumcartridge
1. Remove the powder
cartridge and the drumcartridge
3. Remove the protective
black paper for the drumcartridge
5. Pull out the transparent
seal of the ink cartridge
2. Press the blue button
to remove the powdercartridge
4. Shake the powder
cartridge from side to side3-4 times
6. Assemble it and install
it into the printer
Speed control signalHost computercommunicationStart-stop button
Resistancesampling
Resistancesampling
Potentiometer speedcontrolSensor signalsSystem master control
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8.1.3.5 Green production
8.1.3.6 Carbon footprint certication
For production, we always adhere to green production. Duringproduct production, we consider all environmental factors,utilize advanced production equipment and technology, andenhance production e?ciency and product quality. Meanwhile,we keep optimizing production processes and reducing energyconsumption and waste emissions. For details, see Section 8.3Energy management.Concurrently, several of our subsidiaries have been ISO 14001certified. Environmental management has been incorporatedinto routine operations and strategic planning to ensure thatenvironmental factors can be fully considered. Furthermore,we encourage organizations to constantly seek opportunities toimprove their environmental performance. By promoting greensupply chain management, we require suppliers to complywith environmental standards and use state-of-the-art energy-saving technologies and processes to meet e?cient technologyrequirements, reduce waste, conserve resources, and reduceemissions, thereby reducing adverse environmental impacts.Moreover, we ensure that organizations observe applicableDuring product design and manufacturing, we stress the importance of sustainable development. Actions are earnestly taken incarbon footprint certication to provide more eco-friendly and energy-saving products. In particular, Pantum's 5103 model, asone of the most representative products, features high energy e?ciency and a low carbon footprint and has been certied by theBritish Standards Institution (BSI) for its carbon footprint based on optimized hardware conguration and software algorithms.This certication not only demonstrates our technological strength in the printer industry but also recognizes our commitmentand e?ort to reduce greenhouse gas emissions throughout the entire lifecycle of our products. We will continue to increase R&Dinvestment and gradually raise the proportion of products with carbon emissions certication. We will also continuously optimizeour product lines and further reduce carbon footprint through technological innovation and procedure improvement.
8.1.4 Indicators and objectives
Objectives Annual progress
To use recyclable plasticpackaging and eco-friendlypackaging materialsTo reduce the use of packagingcartonsTo use renewable materials forshipping cartonsTo use eco-friendly inksTo use biodegradable ink labelsTo optimize product designTo design products with zerosurplus inkTo remove non-biodegradablematerialsTo provide users with perfectexperience
All our products are packaged and sold in recyclable plastic bagsmade from polyethylene terephthalate (PET) and polyethylene(PE). Our plastic bags are mainly made from materials in linewith environmental protection standards, such as orientedpolypropylene (OPP), OPP + cast polypropylene (CPP)composites, polyolefin (POF), and PET. Our commonly usedcarton materials include, but are not limited to, recycled materialssuch as 350g gray cardboards, B9 corrugated boards, and K9kraft papers, with a total proportion of 50%.Statistically, 90% of our products sold in Japan do not use outercartons.Our sustainable shipping cartons are made from 100% renewablematerials and are glued with eco-friendly glue rather than coppernails, so they can be 100% biodegraded.Statistically, 90% of our ink bottle labels are made from self-adhesive paper and varnish, so that such labels are 100% self-degradable and plastic-free.Large ink bottles are used to greatly reduce the frequency ofreplacement of consumables. Printers with zero surplus ink aredesigned to minimize the environmental pollution caused by inks.
laws, regulations, and other environmental requirements toavoid legal risks and nancial losses due to environmentalissues. Meanwhile, we effectively communicate with ourstakeholders (e.g. customers, suppliers, and communities)on environmental issues to gain trust and cooperation.
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8.2 Electronic waste recycling
8.2.1 Concept
8.2.2 Strategies
8.2.3 Actions and practices
As a responsible producer, we vigorously advocate and practice the philosophy of electronic waste recycling. E?ective measuresare taken to ensure proper treatment and recycling of used printer products and reduce the negative impact of electronic wasteon the environment.
Through the product recycling system, we recycle and reuse electronic waste in our global operations. For instance, we activelypromote the recycling of ink cartridges and toner cartridges, screen, classify, and carefully clean them, and then rell them intoreusable consumables to ensure the e?cient use of resources and the reduction of environmental pollution and achieve botheconomic and environmental benets.
8.2.3.1 Cooperating with the industry network to perfect electronic waste
recycling procedures
8.2.3.2 Implementing recycling programs
In China, our electronic waste recycling system is beingperfected. Clear instructions are given on how to dispose ofelectronic waste in the user manuals of our products so thatusers can follow the instructions to dispose of their electronicwaste properly. Upon collection, we hand scrapped productsover to qualied third-party organizations to ensure properrecycling, save resources, and reduce environmental risks.Overseas, we cooperate with local third-party agencies toregister waste electrical and electronic equipment (WEEE)into the local recycling system to ensure that scrappedproducts can be effectively recycled in different regions,further promoting the recycling system of electronicwaste that covers the global business. In order to furtherimprove customer experience and advocate environmentalprotection, we provide special recycling bags forconsumables. Users can simply put the empty consumablesinto the disposal bags after use for unied recycling.
We push forward the philosophy of green environmental protection and actively implement product recycling programs toreduce the negative impact of electronic waste on the environment. We also advocate and encourage users to participate in therecycling of scrapped products. In order to simplify the electronic waste recycling procedures and further promote the electronicwaste recycling programs, we have launched an ink cartridge recycling program in various regions around the world where weoperate, covering more than 30 countries and regions, such as China, Japan, the United States, and European countries, anda number of well-known brands. Additionally, we have added channels for recycling by mail year by year. It is expected thatapproximately 10 tons of electronic waste can be recycled annually.
Through product leaflets and recycling slips in product packages, we introduce the environmental characteristics, recyclingmethods, and post-recycling treatment procedures of our products to users so as to raise their awareness of green consumption.Meanwhile, e?orts have been made to formulate operational procedures for the recycling applet to provide users with recyclingguidelines and gradually cultivate their habit of green consumption. During recycling, we not only do not charge users any feesbut also o?er them coupons or cash rewards. Consumers who have put relevant waste into the supermarket's recycling machinecan receive a coupon from the supermarket, which can be used as a cash discount on their purchases.
Since its establishment, G&G has been committed to providing quality products and services. We have launched the"Going Green" (overseas) and the "Flashback Recycling Program" (domestic) for ink cartridge recycling to help usersrecycle and dispose of empty and used ink cartridges, effectively reduce environmental pollution, and benefit thecircular economy.During the Reporting Period, we o?cially launched the toner cartridge recycling service to help users dispose of emptyand used toner cartridge products. The service covers all toner cartridge models, including lled and unlled productswith intact appearance and without powder leakage. At present, it mainly covers Beijing, Tianjin, Hebei, Shandong,Shanghai, Hangzhou, Ningbo, Nanjing, Suzhou, Wuxi, Guangdong Province, Jiangxi Province, and Hunan Province.Customers with recycling needs can hand over their toner cartridge products to their local dealers. The latter will submitan order to the service provider after accumulating a certain number of ink cartridges. The service provider will thenrecycle them door-to-door after accepting the order. Recycled toner cartridge products will be placed horizontally orvertically in a uniform way. Each layer will be separated by a cardboard. The carton will be sealed with a box mark. Onlyafter the pallet mark is separately a?xed to the pallet can recycled products be shipped. Upon recycling, the branchwill reconcile and settle with the dealer and the service provider. This ensures the e?ective management and disposalof used toner cartridges.For other regions with recycling needs, you can contact the headquarters in Zhuhai. We willdirectly send them back to the G&G plant for treatment after they accumulate to a specied quantity.
Electronic waste recycling system (China)
Recycling Bag for Overseas Products
G&G leads a new environmental protection trend: Cartridge recycling forenvironmental protection and full coverage of toner cartridge recycling services
The consumerprovides emptyand usedtoner cartridgeproducts.
The dealersubmits anorder.
The branchreconciles andsettles.
The serviceprovider recyclesdiscarded products
door to door.
Empty and used tonercartridge products arehanded over to localdealers.
Reconciliation andsettlement areconducted uponrecycling.
The service provideraccepts the order andrecycles discardedproducts door-to-door.
Reconciliation andsettlement areconducted uponrecycling.
UsersPantum designated repair centerQualied waste processing agency
RenewableNon-renewableRecyclingComprehensive treatment
Sorting
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8.2.3.3 Expanding channels and scope of recycling
8.2.3.4 Recycle and reuse
8.2.3.5 Recycler audit
In order to improve recycling efficiency and motivate users to participate in recycling, we recycle products through multiplechannels. The main collection channels include but are not limited to:
G&G set recycling objectives for ink and toner cartridge products and fullledits commitment to sustainable development
To reduce electronic waste pollution and improve the e?ciency of electronic waste recycling, we have developed a cartridgerecycling program to recycle empty laser powder cartridges through our own recycling plant, and at the same time, we clarify,track, and record the process of dismantling, cleaning and utilization, recycling, and treatment of electronic waste to ensure thatthe whole process is carried out in facilities that comply with local laws and regulations.
In regard to recycling and reuse, we recycled approximately 19,534,000 toner cartridge products and ink cartridges in 2023,e?ectively reducing waste generation and extending product service life. At present, we can recycle 1,331 product models andwill expand the range of recyclable product models to cover more types of products.
The qualifications of our recyclers and waste treatmentagencies are reviewed based on a strict partner screeningmechanism, including the risk assessment of businessprocedures, assessment of internal control systems, andcompliance inspection of recycling partners to ensure thatthey have the relevant business licenses of the places wherewe operate and have comprehensive WEEE treatmentfacilities and equipment, so as to enhance the transparencyand e?ciency of the entire supply chain.
Recycling atdesignatedlocations
Recycling
anddisposalprogram
Recyclingby mail
In selected locations where we operate, we cooperate with recyclers or dealers to set up recyclingbins in stores or designated recycling points. Users can put the used products into the recycling bins,which will be recycled by the recyclers or handed over by the dealers to a processing agency withrelevant qualications.
We work with local agents and recyclers in the exporting countries of our original products as well asthe sales areas of other brands, such as Canon and HP, to recycle discarded consumables.
We set up electronic waste recycling programs and accept end-of-life products sent by mail. Wehave launched the "Mailing Bag" Program. For some program, we place recycling bags in productpackages to encourage users to send back discarded products. End customers can also send themdirectly to the plant warehouse via the applet. Taking ink cartridges as an example, users can putthe used ink cartridges in the mailing bag and return them to the Company via local postal services.We then hand over the discarded products to qualied third-party agencies for proper treatment toachieve product recycling and reuse.
We process materials that canbe recycled for secondary use.The Company's toner cartridgerecycling center boastsindustry-leading toner cartridgerecycling and remanufacturingtechnologies and processes,enabling the reuse of wastetoner cartridge parts to makerecycled toner cartridges.
For the materials that cannotbe recycled for the timebeing, we transfer them toan organization with wastedisposal qualifications forrecycling, reuse and disposalin order to save resourcesand reduce environmentalpollution.
For the precious metals inelectronic waste (mainlycopper and gold), we usechemical extraction methods.This approach ensures safedisposal and promotes localrecycling of electronic waste.
we completed the annual audits ofDuring the Reporting Period
recyclers
G&G, as an industry-leading ink cartridge remanufacturer, has been committed to reducing consumable wasteand extending the service life of ink cartridges since 2000. In honor of Global Remanufacturing Day, G&G has seta new recycling objective--to recycle 120 million ink and toner cartridge products from January 2021 to October2024 to demonstrate its commitment to a more sustainable printer industry.In order to achieve this objective, G&G has planned to deepen its cooperation with recyclers to ensure thereliability of sources of discarded ink cartridges and will continue to encourage customers to mail used inkcartridges back to us through its "Going Green" (overseas) and the "Flashback Recycling Program" (domestic). Itis expected that this objective will save 842 million new parts from being manufactured and reduce carbon dioxideemissions by at least 3,588.31 tons, equivalent to planting 163,000 trees.
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8.2.4 Indicators and objectives
8.3 Energy management
8.3.1 Philosophy
8.3.2 Strategies
8.3.3 Actions and practices
Upholding the innovation-driven principle, we enhance energy e?ciency, reduce energy consumption and carbon emissions,and achieve green and sustainable energy management, by optimizing the energy structure and energy-saving technologies.
Ninestar actively responds to the call for energy conservation and emission reduction, strictly abides by the Energy ConservationLaw of the People's Republic of China, the Cleaner Production Promotion Law of the People's Republic of China, theAdministrative Measures for Industrial Energy Conservation and other laws and regulations. We have formulated managementpolicies, such as the Management System for Electricity Safety in Factory Workshops and Offices and the ElectricityConsumption Assessment and Management Provisions, revised the Setting and Use Specications for Central Air Conditioners/Cabinet Air Conditioners/Ceiling Air Conditioners, and actively proposed new technologies for energy conservation and emissionreduction to achieve e?cient and green use of energy.
8.3.3.1 Scientic use of energy
During the Reporting Period, we managed energy from the following perspectives:
Energy-saving
renovation of
equipment
Energy-saving
control ofequipment
The traditional lighting xtures in o?ces, dormitories, and parking lots were replaced withenergy-saving lamps, and lighting hours were controlled by voice and motion sensors.The operation of air compressors was optimized through the joint control of multiple aircompressor units.Energy-saving renovation was carried out over the intelligent temperature control system forcooling water.Energy-saving renovation was carried out over the intelligent temperature and humidityregulation and monitoring system for workshops.The project of electricity consumption and energy storage of industrial parks was launched.
The temperature of the central air-conditioning system was set to the energy-saving modeof 26°C. The start and stop of air conditioners were controlled based on working hours andweather. Wall-mounted fans were installed in the dining area for rapid cooling and e?ectiveenergy conservation.Employees were encouraged to participate in air-conditioning power-saving initiatives.Power-saving measures, such as turning o? o?ce power during lunch breaks on workdaysand turning o? lights before leaving, were implemented.The control over air compressors was improved, and their output pressure was adjustedto around 0.6 Mpa. Additionally, the air leakage issue in the workshop was remedied. Theavailable time for air compressors was adjusted based on the workshop's air consumptionpattern to avoid no-load operation.The original water pump was replaced with an inverter servo. A looped network of coolingwater supply was used to enhance the e?ciency of the cooling water pump.
ObjectivesProgress
The recycled materials will account for morethan 25% of the materials for ink cartridgeproducts within the next three years.To expand the recycling network to 30countries and regions worldwide to ensuree?ective recycling of electronic waste globallyTo achieve an average annual growth of 20%in recycled electronic waste over the next veyearsTo provide employees with training related toelectronic waste recycling to ensure that theyunderstand and practice the correct recyclingprocedures and treatment methodsTo assist G&G in completing its cumulativerecycling objective of 120 million consumables
The electronic waste recycling procedureswere improved.Approximately 19,534,000 products (e.g. tonerand ink cartridges) were recycled in 2023.We continuously promoted industry networkcooperation and cooperated with localrecycling networks around the world.
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Regulatorypolicies andmeasures
Promotion andimplementation ofenergy conservation
and emissionreduction
Management policies, such as the O?ce Water and Electricity Management Regulationsand the Workshop Electricity Consumption Regulations, were formulated to standardizethe use requirements of large equipment and lighting xtures.The monthly electricity consumption reduction per product in the workshop and ofair compressors was assessed to supervise and improve the management of energyconservation and consumption reduction.An energy management system was adopted. The input and output of the joint control ofmultiple air compressor units were tracked via the accounting table to achieve real-timemonitoring and e?ective control of energy consumption.
Online working was encouraged to reduce unnecessary business travel.Carpooling was advocated to reduce the use of o?cial vehicles.Shuttle buses were available for employees to promote public transportation and reducethe use of private vehicles.Monthly employee meetings were held to promote energy and water conservation andreuse of o?ce paper.Training related to green office, low carbon emissions and environmental protection,resource conservation, and waste classication was organized.Energy-saving tips and guidelines were pasted on air conditioners and light switches, tocultivate the habits of keeping the air-conditioning temperature no lower than 26
oC andturning o? lights before leaving.
We have established an energy management system with a hierarchical distributed structure for centralizedsupervision of energy, such as electricity, gas, compressed air, coal, diesel, and water. The energy managementsystem is characterized by cross-platform operation, coverage of multiple energy sources, unied managementof the Group, and rich experience in the industry, and has features such as real-time energy monitoring,comprehensive statistical analysis of energy consumption, and energy quality management and control. Bycollecting, processing, and analyzing energy consumption data, we can understand energy use in real-time toformulate the corresponding energy consumption plan and promote low-carbon development.
Data collection and processing through the energy management system
Structure of the Energy Management System
Screen of Real-time Monitoring
Calendar Analysis of EnergyConsumption
8.3.3.2 Using clean energy
Using clean energy to power the plant
We strongly promote the use of clean energy to help save energy and reduce emissions. We have adopted solar technologysince 2018 and have installed 12,000 square meters of photovoltaic (PV) panels so far. Up to 300,000 kWh of electricity can begenerated per month in sunny weather, equivalent to the environmental benets of planting 1.2 million trees. Furthermore,wevigorously drive photovoltaic power generation equipment projects through technological innovation and plan to build anew 3MW rooftop PV project in Nanping Park in Zhuhai by 2024. During the Reporting Period, we completed theconstruction of aphotovoltaic power generation equipment plant in Pingsha Park in Zhuhai. A new 6 MW rooftop PV project in Hefei Park is aboutto be put into operation. We purchased new energy vehicles (NEVs) for short-distance travel and cargo delivery in the city toreduce gasoline usage. Meanwhile, we installed solar water heating systems in employee dormitories to reduce the demand forheat from the power grid.
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Data on the use of clean energyThe photovoltaic power generation in 2023 amounted to 2,156,389 kWh.Three NEVs were purchased for o?cial use.Approximately 620 tons of water was heated for employee dormitories with solar energy.
ESG IndicatorsUnitData in 2023
Outsourced electricity usage10,000 kWh4,509.35Photovoltaic power generation (self-use)10,000 kWh215.64
Gasoline usageLiter75,609.14Diesel usageLiter37,395.75Total energy consumptionTon of standard coal equivalent5,935.34
Direct energy consumptionTon of standard coal equivalent393.35
Indirect energy consumptionTon of standard coal equivalent5,541.99Comprehensive energy consumption
intensity
Ton of standard coal/CNY10,000
of revenue
0.0025
Direct greenhouse gas(GHG) emissions
(Scope 1)
tCO2e269.46Indirect greenhouse gas (GHG) emissions
(Scope 2)
tCO2e25,716.80Total greenhouse gas (GHG) emissionstCO2e25,986.26Greenhouse gas (GHG) emission intensitytCO2e/CNY10,000 of revenue0.0108
The construction of the rooftop photovoltaic power generation equipment station project in our printer industrialpark began in August 2023, covering approximately 80,000 square meters of rooftop area. With a maximuminstalled capacity of approximately 9.6 MW, it operates on the mode of "self-generation and self-consumption,surplus for the grid”. The project is expected to generate 9 million kWh of electricity annually.The PV panels act as an insulating layer in summer, can effectively lower the indoor temperature by around3°C, and convert solar power into clean electricity for plant production. Under good natural lighting conditions,the power generated by the project can fully meet the daytime electricity needs of the plant. Statistically,approximately 2,700 tons of standard coal can be saved, and 7,237 tons of carbon dioxide can be reducedannually, equivalent to planting 395,000 trees. In short, this project reduces our electricity costs, improves energye?ciency, and promotes green, low-carbon, and circular development.
The plant rooftop photovoltaic power station project of the Ninestar PingshaIndustrial Park in Zhuhai
8.3.4 Indicators and objectives
Objectives
Annual progress
To establish an energy monitoring systemto realize real-time monitoring and preciseanalysis of plant energy consumptionTo replace old air compressors with highenergy consumption to promote energye?ciency and emission reductionOptimize the cooling tower system and pumpcongurations to improve energy e?ciencyEnhance temperature, humidity, andrefrigeration controls to conserve water,electricity, and gas and reduce energyconsumption
The energy monitoring system providesaccurate hourly monitoring data to preciselyidentify energy waste and aspects forimprovement.A new 55 kW air compressor was purchasedto replace the old one with high energyconsumption, reducing overall energyconsumption by 39%.The cooling tower was replaced, and theplacement and pump head were adjusted,thus reducing the pump power by 51%.The central air-conditioning system wasoptimized to provide constant temperatureand humidity for areas with temperatureand humidity requirements and implementseparate cooling control in other areas.
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8.4 Emissions management
8.4.1 Philosophy
8.4.2 Strategies
We are keenly aware of the importance of emissions management and strictly adhere to the requirements of relevant nationallaws and regulations. Through technological innovation, process optimization, and e?ective management practices, we endeavorto reduce the generation of exhaust gas emissions, wastewater, and solid waste at the source. We are committed to emissionsreduction and continuously strive to optimize and implement various environmental protection measures based on feedbackfrom government agencies, society, and stakeholders.
We have established and continuously rene the Safety Operation and Maintenance Regulations for Sealed Drum RecyclingOrganic Exhaust Gas Treatment Equipment, Safety Operation and Maintenance Regulations for Exhaust Gas TreatmentEquipment, Wastewater Discharge Regulations, Safety Operation and Maintenance Regulations for Sewage Treatment, andGuidelines for Waste Classication and Treatment. These measures enhance employees' safety awareness and emergencyresponse capabilities in handling emissions, ensuring compliance and safety.
8.4.3 Actions and practices
8.4.3.1 Exhaust gas treatment
8.4.3.2 Solid waste treatment
8.4.3.3 Hazardous waste treatment
8.4.3.4 Non-hazardous waste treatment
Our exhaust gas emissions primarily stem from laser coding exhaust gas, powderfilling dust, and kitchen fumes. We strictly adhere to the emission standardsoutlined in the Limits for Atmospheric Pollutants Emissions, specifically forparticulate matter dust and organic emissions (benzene and toluene emissions).We collect dust-laden exhaust and benzene/toluene emissions, which arethen purified through dust removal systems before being discharged into theatmosphere at high altitudes. For hazardous waste such as waste carbon powderand spent activated carbon, we adhere to relevant environmental regulations toensure compliant disposal. For kitchen fumes and other exhaust gases, we employpurication treatment devices to ensure emissions meet regulatory standards.
We strictly adhere to the laws and regulations of theLaw of the People's Republic of China on Preventionand Control of Environmental Pollution by Solid Wasteand General Industrial Solid Waste Storage and LandfillPollution Control Standards for pollution control on thenon-hazardous industrial solid waste storage and landfill.We have established management policies such asWaste Classification and Disposal Regulations, PollutionPrevention Procedures, and Emissions ManagementRegulations. Additionally, in accordance with HJ1276-2022,we have implemented standardized signage at storage sitesto further enhance environmental awareness among all sta?,promoting waste reduction and harmlessness and reducingthe environmental impact of waste.
Our operational hazardous waste includes waste packaging drums, waste paint, wastecarbon powder, waste ink, and waste ribbons. We classify and properly dispose of alluntreated hazardous waste in accordance with relevant regulations, and transfer themto qualied hazardous emissions management companies for disposal.
Our non-hazardous waste primarily includes recyclable waste such as used paper and non-recyclable waste such as householdgarbage and kitchen waste. For recyclable non-hazardous waste, we conduct specialized training on waste sorting, followthe guidelines for household waste classification during collection, and entrust qualified third-party organizations to handletransportation, recycling, and disposal. We conduct quarterly on-site audits of waste recycling companies and other third-party organizations annually to ensure compliant emissions management. For non-recyclable waste, we dispose of it uniformlywithin the operational area in accordance with local regulations. Qualied third-party organizations are contracted to handletransportation, recycling, and disposal as per the contractual requirements.
In 2023, our actual dustemissions were under 4 mg/m?, resulting in an annualreduction of
The disposal rateof hazardous wastefor this year was
tons
4.3
100%
Posting Standard Waste Disposal Signage at Storage Sites
8.4.4 Indicators and objectives
ObjectivesAnnual progress
Optimize production, transportation, andsales processes to reduce the generation ofhazardous wasteImprove production processes to reduce thedischarge of pollutantsIn 2024, will optimize our dust removal systemto enhance the e?ciency of air purication
We reviewed and optimized the production,transportation, and sales processes, anddeveloped and implemented measures toreduce the generation of hazardous waste,such as improving packagingWe promoted improvement projectsin production processes, focusing ontechnological innovations that reduce pollutantemissionsWe advanced the development andimplementation of optimization plans forthe dust removal system, with the goal ofcompleting system upgrades and verifyingimproved purication e?ciency by 2024
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8.5 Water resources management
8.5.1 Philosophy
8.5.2 Strategies
We emphasize the conservation and protection of water resources. Upholding the philosophy of sustainable development andstrictly complying with the laws and regulations, we have enhanced the e?ciency of water resources in our daily operationsthrough the adoption of advanced water-saving technologies and management methods.
Strictly abiding by the Water Law of the People's Republic of China, the Water Pollution Prevention and Control Law of thePeople's Republic of China, and the Environmental Protection Law of the People's Republic of China, we have formulatedmanagement policies including the Environmental Management Policies, the Energy Management Regulations and theWastewater Discharge Management Regulations of the Consumables Business Unit to clarify the environmental managementstructure and responsibilities and to standardize the concentration ink collection requirements. We have strictly implementedGB25463-2010 Discharge Standard of Water Pollutants for Printing Ink Industry, carried out hierarchical control of industrialwastewater at source to reduce the impact of uctuations in wastewater concentration on the wastewater treatment process, andrealized the sustainable use of water resources by means of e?ective water-saving measures, rational water resource planning,and highly e?cient wastewater treatment solutions.
We ensure that wastewater meets the requirements of GRI 303 standards by sampling e?uent on a regular basis,introducing testing equipment and monitoring indicators such as pH, COD, and ammonia throughout the year.Water-saving slogans and posters are displayed to enhance the water-saving awareness of all employees,ensuring that people turn o? the faucet after leaving to avoid the occurrence of "long-term water ow".The Safety Committee O?ce periodically conducts random inspections of the workshop's water usage to eliminatethe waste of water resources. In accordance with the requirements of the discharge permit, the treated wateris tested by an external qualied monitoring organization to ensure that the water quality is above the nationaldischarge standard.We adopted a constant-pressure water supply system that divides the water supply into high and low zones tomeet the water needs of the residential sta? during the morning and evening peak periods.We have arranged for specialized personnel to supervise and manage the water use in the park and regularlymonitor the water meter usage to report it for maintenance in a timely manner while nding water leakages, thusavoiding the waste of water resources.We conduct full disinfection cleaning and testing of domestic water tanks once a year to ensure safe water quality.
8.5.3 Actions and practices
8.5.3.1 Management and promotion
During the Reporting Period, we conducted the management and promotion of our water resources in thefollowing ways:
8.5.3.2 Wastewater recycling
In accordance with GB25463-2010 Discharge Standard of Water Pollutants for Printing Ink Industry, we set upwastewater treatment facilities and adopted a well-proven A?/O process to treat industrial wastewater and domesticwastewater. The wastewater is discharged through the pipeline network into the water purication plant for furthertreatment after pre-treatment and comprehensive treatment.We invested CNY9,042,800 to build our own sewage treatment station in the park, which covers an area of 1,500square meters and treats 180,000 tons of sewage per year.We have expanded the wastewater treatment plant in the park. For the production wastewater generated fromcleaning and recycling cartridges and manufacturing ink, professional wastewater treatment engineers are incharge of analyzing water quality every four hours to ensure that the wastewater meets the standards of treatmentand the wastewater is recycled for irrigation and toilet ushing in the park.Municipal water is filtered through a filter before flowing into a domestic water tank, which is equipped with adisinfection device. The water is then pressurized and supplied to various departments and residents for use.We recycled the cooling water of the injection molding machine and wastewater from wastewater treatmentstations to reduce water consumption.We designed and built sponge city systems in our two major industrial parks to recycle and reuse rainwater andimprove the e?ciency of water utilization.
We recycle water in the following ways:
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Lexmark has joined forces with Lexington-Fayette UrbanCounty Government (LFUCG), EcoGro, Ridgewater, Stantec,and the University of Kentucky to launch an innovativebioresource and rainwater harvesting system in Lexington,Kentucky. The system exceeds the size of Lexington's threetraditional rainforest gardens but has features similar tothese gardens. Bioresource basins, on the one hand, lterrainwater through sand and reserve water not needed forimmediate use. On the other hand, they act as retentionbasins for slowing down rainfall runoff in the event ofexcessive discharges to the creek. Natural soft water is usedin Lexmark's cooling towers, reducing the need for chemicaltreatment of the water.
Lexmark's bioresources and rainwater harvesting system in Kentucky
Relevant performance data
Total water consumption
Total water consumption intensity
Treatment of wastewater in 2023
tons
ton/CNY10,000 ofrevenue
tons
1,039,532.69
0.4320
180,000
8.5.4 Indicators and objectives
Schematic Diagram of the Operation of theBioresources and Rainwater HarvestingSystem
Objectives
Progress
Implement hierarchical control of wastewater discharges atsource to reduce the di?culty of sewage treatmentStrictly implement a 24-hour duty system and a 4-hourwater quality testing system to ensure that sewagetreatment meets discharge standardsMaintain equipment and facilities in strict accordance withthe requirements, and effectively manage the importantspare parts to ensure the stable operation of sewagetreatment equipmentSwitch the central air-conditioning cooling towers fromtraditional round towers to square towers, with estimatedwater savings of 2,000 tons in 2024
In 2023, a total of 1,400 tons of water was saved by thewastewater treatment improvements.
This bioresource and rainwater harvesting system was honored with the 2021 International Green Apple Award,the 2020 Manufacturing Leadership Sustainable Development Award, and the 2019 Wastewater and StormwaterAward from ACEC-KY. This project not only brings environmental and economic benets to the local communitybut also provides a successful example of rainwater harvesting and resource utilization for other cities andcompanies.
8.6 Response to climate change
8.6.1 Philosophy
We have established a two-tier governance structure of the ESG Committee - ESG Project Team and have integrated climatechange issues into its management responsibilities to ensure that we have an e?ective governance structure for climate-relatedrisks and opportunities, from the strategic level to the executive level.The ESG Committee is the strategic level of ESG governance and is responsible for setting the overall strategic direction andoverseeing the management of climate risks and opportunities. The ESG Project Team under the ESG Committee is the ESGmanagement team responsible for identifying and evaluating climate risks and opportunities and integrating them into our dailyoperations and long-term planning. It is also responsible for undertaking the specic implementation of the ESG managementplan to ensure that climate risk management is incorporated into all business and decision-making processes. In addition, wehave established specialized management organizations for energy conservation and emergency response.
Regularly review climate risk response and opportunity assessment, andfocus on climate change related strategies and objectives, such as energysaving and consumption reduction, emergency response, and climate riskassessment.
It is organized and managed by the Company for the purpose of energy savingand consumption reduction. It monitors and sets energy-saving and emissionreduction targets, analyzes and promotes optimization of production activities,and implements energy-saving and consumption reduction management.It is responsible for developing and implementing emergency response plansfor environmental emergencies in response to sudden natural disasters. Whenthe government issues an early warning of a natural disaster, the Safety andEnvironment Department would pay close attention to the level of the disasterand the extent of the hazard, and take appropriate protective measures.
According to the Global Risks Report released by the World Economic Forum (WEF), climate-related environmental issues areamong the top four risks of the top ten global risks over the next ten years, including failure to mitigate climate change, failureto debug climate change, natural disasters and extreme weather events, and biodiversity loss and ecosystem disintegration.Adapting and proactively responding to the risks and opportunities of climate change is a requirement for companies tostrengthen their climate resilience management.As the world's leading printer manufacturer, we are fully aware of the importance of climate change and its far-reaching impacton our business operations and long-term value. We have been actively responding to China's goal of carbon peaking andcarbon neutrality to strengthen our ability to address climate change. During the Reporting Period, we continued to deepen ourunderstanding and management of climate change risks and opportunities through the four pillars of Governance, Strategy,Risk Management, and Indicators and Objectives in line with the recommended framework of the TCFD. We are committed toreducing the impact of climate risk by improving our governance structure, promoting low-carbon manufacturing, increasing theuse of renewable energy, and improving energy e?ciency.In the future, we will further improve our climate risk and adaptation analysis under di?erent climate scenarios, better identifyand respond to climate risks, strengthen our climate risk management, and promptly seize the opportunities brought by climatechange.
Governance
SpecializedManagement
ESGCommittee
SafetyCommittee
O?ce
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8.6.2 Strategies
We understand the important impact of climate change on the global environment and economic development and arecommitted to realizing green transformation through climate change mitigation and climate change adaptation by settingscientific emission reduction targets and adopting a series of policies and measures, such as investing in clean energy,improving production processes, and promoting energy-saving technologies to optimize the use of resources and improveenergy e?ciency.
Climate changemitigation
Climate change
adaptation
Increase R&D and investment in clean technology: Develop low-carbon emission printingtechnologies, such as the use of environmentally friendly inks and printing processes thatreduce carbon emissions.Improve energy efficiency: Optimize printer hardware design through technologicalinnovation to reduce energy consumption.Use renewable energy: Prioritize the use of renewable energy, such as solar and windpower, in the production process.Product life cycle management: Reduce the release of hazardous substances andthe environmental impact of our products throughout their life cycle in raw materialprocurement, production, transportation, use and disposal.
Risk identication and assessment: Conduct a climate change risk assessment of ourglobal production bases, supply chain, and businesses, identify the processes that maybe a?ected, and formulate corresponding response strategiesEnhance natural disaster response capacity: Strengthen infrastructure developmentand contingency plans to ensure the safety of production and personnel in response tonatural disasters that may be caused by climate change, such as oods and typhoonsAdjust business strategies: Adjust our business strategies in light of the impacts ofclimate change, for example, shifting to more environmentally friendly products andservices to meet changes in market demand
8.6.3 Actions and practices
Based on TCFD's risk classication criteria, we conducted risk analysis on physical risk and transformation risk. By identifyingrisks, we fully recognize the potential impact of climate change on our operations and are committed to addressing thesechallenges through proactive strategies to ensure our continued growth.
8.6.3.1 Identication of physical risks
ClassicationCategoryDescription of potential risksCountermeasure
Acute
Extremeweathersuch astyphoons,rainstormsandhailstorms
They may lead to damage to parkfacilities, interruption of operations,and loss of goods, a?ecting thenormal operation of parks andfactories and causing directeconomic lossesThey may lead to health and safetyinjuries for park and plant workers
Reinforce infrastructure in work zones and factories andstrengthen water supply and drainage managementDevelop a comprehensive emergency responseplan, strengthen the meteorological warning system,emergency evacuation routes and post-disaster recoveryplans, and organize hands-on training and emergencydrills to ensure a rapid responseBuild an emergency response system, establishemergency response organizations and responsibilities, aswell as reserve emergency supplies and rescue teams
Chronic
Increasein averagetemperature
It may lead to increased equipmentfailure rates, higher employeesafety risks, decreased overall worke?ciency, and higher equipmentrenewal and maintenance costs
Upgrade park and plant equipment and operationalprocesses to improve energy e?ciency, thereby o?settingor reducing the increase in energy consumption due tohigh temperaturesDrought
It may cause water scarcity, leadingto water shortages in factories, whicha?ects normal production and thusreduces yields
Enhance rainwater harvesting and utilization facilities toimprove water use e?ciencyAssess water use and develop water conservation plansto reduce unnecessary water consumption
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8.6.3.2 Identication of transformation risks and opportunities
ClassicationCategoryDescription of potential risksCountermeasures
Policies and
laws
Risks
Carbon emission restrictions: As national and regionalcarbon emission restrictions become more stringent,we may be required to pay higher carbon taxes orcomply with more stringent carbon emission standards,which may result in higher operating costsTighter environmental regulations: New or stricterenvironmental regulations (e.g., emission standardsand energy e?ciency requirements) may require usto invest in environmentally friendly technologies orimprove operational processes, which may result inadditional nancial costsTightening of compliance requirements for overseassales: Countries and regions such as the EU and theU.S. have higher standards for climate change andproduct life cycle carbon emissions management,which will a?ect our overseas business and bringcertain compliance costs
Deepen the understanding of policies andlaws: Study the trends of regulations indi?erent countries and local governments,understand the relevant green incentivesand subsidies, conduct business layout inadvance, and exibly adjust the operationstrategyActively participate in industry-related policymaking: Cooperate with governmentalorganizations to deeply participate in thediscussion and formulation process ofindustry-related regulations and policiesSort out carbon assets: Systematically sort outour carbon assets, explore the collaborationbetween the electricity market and thecarbonmarket, and tap into carbon marketopportunities.Understand the regulatory requirements ofdi?erent countries and the regulatory detailsof key markets, select key products, andpromote product carbon footprint managementin an orderly mannerOpportunities
Green nancing: Investors and nancial institutionsare more inclined to invest in green and clean energyprojects, and governments may enact green incentiveand subsidy policies
Technology
Risks
Green technology transformation: With thedevelopment of low-carbon and green technology, weneed to gradually increase our R&D and investmentin clean technology to improve energy e?ciency andreduce pollution to meet environmental requirements
Invest in green technologies: Actively invest inand apply low-carbon technologies and cleanenergy, such as solar energy and BIPV R&DapplicationsIncrease R&D investments: Increase R&Dinvestment, explore new environmentalprotection technologies and managementmethods, and pay attention to cutting-edgegreen technologiesEnhance green cooperation: Actively seektechnology partners or suppliers to jointlydevelop green solutionsOpportunities
Technological innovation and e?ciency improvement:
Green technology transformation can drive ourtechnological innovation, improve energy e?ciency,recycle resources, and reduce pollutant emissions,thus creating a virtuous cycle
Market
Risks
Consumers are more inclined to buy products withrecycled plastic and better end-of-life management.We need to invest more in R&D of green and low-carbon products to meet the market demandElectronic waste full-lifecycle managementrequirements are becoming more stringent. To acertain extent, we need to increase the cost investmentin the recycling business
Improve business diversication: Explore anddevelop green products, continue to promotethe R&D and production of labelers and A3printers with low-carbon design, and obtainrelevant green certicationsEnhance market adaptability: The strategydepartments need to adjust businessstrategies to respond to changes in demandand market volatility through market researchand data analysisIncrease customer communication: Conductresearch and communicate with keycustomers on their green and sustainabledevelopment preferencesOpportunities
Green business opportunities: With the low-carbontransition, new business opportunities may arise, suchas the development and application of renewableenergy such as rooftop photovoltaics in parks
Reputation
Risks
Public expectations: Stakeholders such as domesticand international consumers have increasingexpectations for corporate environmental responsibility.Failure to respond e?ectively to climate change or totake appropriate environmental protection measurescould damage its brand and reputation and a?ect itsbusiness relationships and market position
Take more social responsibilities: Improvecorporate image and brand value by activelycarrying out and participating in social andecological environmental protection activitiesCommunicate e?ciently and transparently:
Establish an e?ective communicationmechanism, strengthen information disclosure,and timely convey to the public andstakeholders the enterprise's environmentalprotection actions and e?ectivenessOpportunities
Brand image improvement: Actively addressing climatechange and implementing sustainable developmentstrategies can enhance our reputation
8.6.3.3 Emergency response plans and drills
We continue to improve our emergency response plans and conduct regular emergency rescue drills, including predicting riskpoints and checking and preparing materials before typhoons, as well as work and production resumption inspections aftertyphoons, in order to minimize the impact of extreme weather on production and operations.We are headquartered in Zhuhai, Guangdong Province, where extreme weather such as heavy rainfall, typhoons, and hotweather is common in the summer, with wind speeds reaching up to Force 14 (45 meters per second). In order to cope withthe extreme weather during the typhoon season, we prepare emergency supplies in accordance with the requirements of theemergency response plans for unexpected environmental incidents and reinforce key infrastructure, such as the windows anddoors of factories and warehouses, thus minimizing the potential damage to production facilities caused by extreme weather.Doing so ensures that we are able to respond swiftly to the onset of typhoons and to take the necessary protective measures.
8.6.4 Indicators and objectives
ObjectivesAnnual progress
We focus on comprehensive product lifecyclemanagement, from design, production, transportation,to use and final disposal, aiming to minimize theenvironmental impact of end-of-life products.We encourage suppliers to adopt environmentalmeasures, including the use of renewable resources,waste reduction, and improved logistics efficiency.By monitoring and mitigating our supply chain'senvironmental impact, we aim to promote theenhancement of suppliers' environmental managementstandards.We strive to achieve net-zero carbon emissions fromour operations by improving energy efficiency, usingcleaner energy sources, and optimizing productionprocessesWe will invest more than CNY500 million in thenext five years, focusing on clean technology R&D,upgrading of new fixture equipment, technologyupgrades, and low-power chip research
Through the adoption of clean technologies andprocess optimization, along with the continuedimplementation of recycling and reuse initiatives,we have reduced resource consumption and wastegeneration. This has led to a signicant decreasein the environmental footprint across the productlifecycle.In 2023, we aggressively pursued our photovoltaicpower generation project to increase the proportionof clean energy used, such as solar and wind. Theair-conditioning compressor system was optimizedand upgraded, reducing the demand for purchasedelectricity by 830,000 kWhBy optimizing the hardware design of our printersthrough technological innovations, we haveimproved energy e?ciencyWe have continued to increase R&D investmentin clean technology, committed to upgrading ourtechnology and equipment.
In 2023, we issued early warning information in advance of the typhoon andorganized safety inspections of each production site by the person in chargeof safety to implement typhoon defense. At the same time, we arranged for ouremployees to return home by bus. During the Reporting Period, the typhoondid not cause any significant damage to us, and there were no casualties.During high temperatures in Zhuhai, we strictly enforce the regulation tocease work when temperatures exceed 40 degrees Celsius. We also provideemployees with heat protection equipment and medication, and no incidentsof heatstroke occurred among employees this year. Additionally, we organizeactivities such as hiking to enhance employees' environmental awareness andencourage active participation in ecological protection.
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9 Appendix
9.1 Appendix I: Key Performance Indexes (KPIs) of 2023
ESG Report
ESG Indicator CategoryUnitData in 2023
Emissions
Direct greenhouse gas (GHG) emissions (Scope 1)tCO
e269.46Indirect greenhouse gas (GHG) emissions (Scope 2)tCO
e25,716.80Total greenhouse gas (GHG) emissionstCO
e25,986.26Greenhouse gas (GHG) emission intensitytCO2e/CNY10,000 of revenue0.0108CODton11.50Suspended solidston0.74Petroleumton0.04Animal and vegetable oilton0.03Anilineston0.02Five-day biochemical oxygen demand (BOD
)ton2.92Particulate matterton2.19Total VOCston1.98Total water consumptionton1,039,532.69Total industrial wastewaterton186,760.00Material
Usage of packaging materialston23,749.31Usage of sustainable packaging materialston18,154.26Total hazardous waste disposalton259.49Total general waste disposal
ton1,765.59O?ce waste emissionston595.44Production waste (unrecyclable) emissionston1,170.15
Energy
Outsourced electricity usage10,000 kWh4,509.35photovoltaic power generation equipment (non-utility)10,000 kWh215.64Gasoline usageLiter75,609.14Diesel usageLiter37,395.75Total overall energy consumptionTon of standard coal equivalent5,935.34Direct energy consumptionTon of standard coal equivalent393.35Indirect energy consumptionTon of standard coal equivalent5,541.99Comprehensive energy consumption intensity
Ton of standard coal/CNY10,000 of
revenue
0.0025
ESG Indicator CategoryUnitData in 2023
Training and EducationTotal amount invested in employee trainingCNY10,000384Local CommunityInvestment in social assistanceCNY10,000133Production SafetyTotal amount invested in production safetyCNY10,0002,019.55
Environmental Performance
Social Performance
Economic Performance
ESG Indicator CategoryUnitData in 2023
Employment
Number of employees by gender, educational background, age group and geographical regionTotal number of employeesPerson21,997Number of male employees%58Number of female employees%42Junior college or below%61.0Undergraduate%31.8Graduate or above%7.2Employees aged 29 and below%39.77Employees aged 30-49%48.85Employees aged 50 or above%11.38Chinese mainland%58.32Hong Kong, Macao and Taiwan%0.02Overseas%41.66Employee turnoverEmployee turnover%10.20OccupationalHealth andSafety
Number of employee deaths related to work in thepast three years (2021-2023)
Person0Number of working days lost due to work-relatedinjury during the year
Day0Safety incidentsCase0Training 35,638 hours of production safety andoccupational health
Hour35,638Cumulative trainees of production safety andoccupational health training during the year
Person-time12,224
Training andEducation
Total number of trained employees by gender and their training hoursTotal number of trained employeesPerson8,206Trained male employeesPerson4,817Trained female employeesPerson3,389Total training hours of employeesHour165,533.5Average training hours of male employeesHour8Average training hours of female employeesHour8SupplierManagement
Total number of suppliers managed in the yearSupplier1,287Number of audited suppliersSupplier705CustomerService
Received cases of product and service complaintsCase3,264Cases of handled product and service complaintsCase3,151Anti-corruption
Number of concluded corruption lawsuits broughtagainst the issuers or employees
Case0
Environmental data were collected from January 1, 2023 to December 31, 2023.The scope of the collection includes:
? Energy use in the o?ce area and production area of our headquarters and subsidiaries;? Energy use of o?cial vehicles and transportation vehicles of our headquarters and subsidiaries;
The disclosed values of greenhouse gas emissions include consumption of gasoline, diesel, pipeline gas, natural gas and outsourced electricity. Scope1 emission factors are calculated with reference to the Guidelines for Accounting Methods and Reporting of Greenhouse Gas Emissions by PublicConstruction Operators (Enterprises) (Trial) issued by the General O?ce of the National Development and Reform Commission of China; Scope 2greenhouse gas emissions data are derived from outsourced electricity, and greenhouse gas emission factors of the power grid in Chinese Mainland referto the Notice on the Management of Greenhouse Gas Emission Reporting of Enterprises in the Power Generation Industry from 2023 to 2025.
Our non-hazardous waste consists of o?ce waste generated in the o?ce area and production waste from each subsidiary.
The energy consumption values include the consumption of gasoline, diesel, natural gas and outsourced electricity, the relevant factors of which arecalculated with reference to GB 2589-2020 General Principles for Calculation of the Comprehensive Energy Consumption of China.
Due to local laws and regulations, some overseas subsidiaries could not provide age and gender data of the employees.
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9.2 Appendix II:Content Index of Global Reporting
Initiative (GRI) Standards
No.IndicatorDisclosure ItemSections
GRI 2: GeneralDisclosures
2-1 Organizational detailsAbout the Report
2-2 Entities included in the organization's sustainabledevelopment reporting
About the Report32-3 Reporting period, frequency and contact pointAbout the Report42-4 Restatements of informationAbout Ninestar52-5 External assurance/62-6 Activities, value chain and other business relationshipsAbout Ninestar72-7 Employees
Employees' Rights, interests,
diversity and Equity82-8 Workers who are not employees
Employees' Rights, Interests,
Diversity and Equity92-9 Governance structure and compositionCorporate Governance102-10 Nomination and selection of the highest governance bodyCorporate Governance112-11 Chair of the highest governance bodyCorporate Governance
2-12 Role of the highest governance body in overseeing themanagement of impacts
Corporate Governance132-13 Delegation of responsibility for managing impactsCorporate Governance
2-14 Role of the highest governance body in sustainabledevelopment reporting
Corporate Governance152-15 Conict of interestN/A162-16 Communication of critical concernsCorporate Governance172-17 Collective knowledge of the highest governance body/
2-18 Evaluation of the performance of the highest governancebody
/192-19 Remuneration policies
Employees' Rights, Interests,
Diversity and Equity202-20 Process to determine remuneration
Employees' Rights, Interests,
Diversity and Equity212-21 Annual total compensation ratio/222-22 Statement on sustainable development strategyImplementing ESG Management232-23 Policy commitmentsImplementing ESG Management242-24 Embedding policy commitmentsImplementing ESG Management252-25 Processes to remediate negative impacts/262-26 Mechanisms for seeking advice and raising concernsAbout Ninestar272-27 Compliance with laws and regulationsCorporate Governance282-28 Membership associations/292-29 Approach to stakeholder engagementImplementing ESG Management302-30 Collective bargaining agreements/
Instructions foruse
We report the information referenced in this GRI Content Index by reference to GRI standards fromJanuary 1, 2023 to December 31, 2023.GRI 1GRI 1: Basis 2021
No.IndicatorDisclosure ItemSections
GRI 3: MaterialTopics
3-1 Process to determine material topicsImplementing ESG Management323-2 List of material topicsImplementing ESG Management333-3 Management of material topicsImplementing ESG Management
GRI 201: EconomicPerformance
201-1 Direct economic value generated and distributed/
201-2 Financial implications and other risks and opportunities
due to climate change
/
201-3 Dened benet plan obligations and other retirement
plans
/37201-4 Financial assistance received from government/
GRI 202: MarketPresence
202-1 Ratios of standard entry level wage by gender comparedto local minimum wage
/
202-2 Proportion of senior management hired from the localcommunity
/
GRI 203: IndirectEconomic Impact
203-1 Infrastructure investments and services supportedCommunity Philanthropy41203-2 Signicant indirect economic impacts/
GRI 204:
ProcurementPractices
204-1 Proportion of spending on local suppliers
Responsible Supply ChainManagement
GRI 205: Anti-corruption
205-1 Operations assessed for risks related to corruptionBusiness Ethics and Anti-corruption
205-2 Communication and training about anti-corruption policies
and procedures
Business Ethics and Anti-corruption45205-3 Conrmed incidents of corruption and actions takenBusiness Ethics and Anti-corruption
GRI 206: Anti-competitiveBehavior
206-1 Legal actions for anti-competitive behavior, antitrust, andmonopoly practices
Business Ethics and Anti-corruption
GRI 207: Tax
207-1 Approach to tax/48207-2 Tax governance, control, and risk management/
207-3 Stakeholder engagement and management of concerns
related to tax
/50207-4 Country-by-country reporting/
GRI 301: Materials
301-1 Materials used by weight or volume
Green Products
Key Performance Indexes (KPSs)
of 2023 ESG Report52301-2 Recycled input materials usedGreen Products53301-3 Reclaimed products and their packaging materialsGreen Products
GRI 302: Energy
302-1 Energy consumption within the organization
Energy Management
Key Performance Indexes (KPSs)
of 2023 ESG Report55302-2 Energy consumption outside of the organization
Energy Management
Key Performance Indexes (KPSs)
of 2023 ESG Report56302-3 Energy intensity
Energy Management
Key Performance Indexes (KPSs)
of 2023 ESG Report57302-4 Reduction of energy consumptionEnergy Management
302-5 Reductions in energy requirements of products andservices
Energy Management
GRI 303: Waterand E?uents
303-1 Interactions with water as a shared resourceWater Resources Management60303-2 Management of water discharge-related impactsWater Resources Management61303-3 Water withdrawalWater Resources Management
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No.IndicatorDisclosure ItemSections
GRI 303: Waterand E?uents
303-4 Water dischargeWater Resources Management63303-5 Water consumption
Water Resources ManagementKey Performance Indexes (KPSs)of 2023 ESG Report
GRI 304:
Biodiversity
304-1 Operational sites owned, leased, managed in, or adjacent
to, protected areas and areas of high biodiversity value outside
protected areas
N/A
304-2 Signicant impacts of activities, products, and services on
biodiversity
N/A66304-3 Habitats protected or restoredN/A
304-4 IUCN Red List species and national conservation listspecies with habitats in areas a?ected by operations
N/A
GRI 305:
Emissions
305-1 Direct (Scope 1) Greenhouse gas (GHG) emissions
Energy Management
Key Performance Indexes (KPSs)
of 2023 ESG Report
305-2 Energy indirect/Scope 2 Greenhouse gas (GHG)emissions
Energy Management
Key Performance Indexes (KPSs)
of 2023 ESG Report70305-3 Other indirect/Scope 3 Greenhouse gas (GHG) emissions/71305-4 Greenhouse gas (GHG) emissions intensity
Energy Management
Key Performance Indexes (KPSs)
of 2023 ESG Report72305-5 Reduction of Greenhouse gas (GHG) emissions/73305-6 Emissions of ozone-depleting substances (ODS)/
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and othersignicant air emissions
/
GRI 306: E?uentsand Waste
306-1 Waste generation and signicant waste-related impactsWaste Management76306-2 Actions taken to prevent waste generationWaste Management77306-3 Composition of waste generated
Waste ManagementKey Performance Indexes (KPSs)of 2023 ESG Report78306-4 Recovery operations used to divert waste from disposalWaste Management79306-5 Disposal operationsWaste Management
GRI 308: SupplierEnvironmentalAssessment
308-1 New suppliers that were screened using environmental
criteria
Responsible Supply ChainManagement
308-2 Negative environmental impacts in the supply chain and
actions taken
Responsible Supply ChainManagement
GRI 401:
Employment
401-1 New employee hires and employee turnover
Employees' Rights, Interests,Diversity and Equity KeyPerformance Indexes (KPSs) of2023 ESG Report
401-2 Benets provided to full-time employees that are not
provided to temporary or part-time employees
Employees' Rights, Interests,Diversity and Equity84401-3 Parental leave
Employees' Rights, Interests,Diversity and Equity
GRI 402: Labor/ManagementRelations
402-1 Minimum notice periods regarding operational changes
Employees' Rights, Interests,Diversity and Equity
GRI 403:
OccupationalHealth and Safety
403-1 Occupational health and safety management systemOccupational Health and Safety
403-2 Hazard identication, risk assessment, and incident
investigation
Occupational Health and Safety88403-3 Occupational health servicesOccupational Health and Safety
403-4 Worker participation, consultation, and communication onoccupational health and safety
Occupational Health and Safety
No.IndicatorDisclosure ItemSections
GRI 403:
OccupationalHealth and Safety
403-5 Worker training on occupational health and safetyOccupational Health and Safety
403-6 Promotion of worker healthOccupational Health and Safety
403-7 Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
Occupational Health and Safety
403-8 Workers covered by an occupational health and safetymanagement system
Occupational Health and Safety
403-9 Work-related injuriesOccupational Health and Safety
403-10 Work-related ill healthOccupational Health and Safety
GRI 404: Trainingand Education
404-1 Average hours of training per year per employeeHuman Capital Development
404-2 Programs for upgrading employee skills and transitionassistance programs
Human Capital Development
404-3 Percentage of employees receiving regular performanceand career development reviews
Human Capital Development
GRI 405: Diversityand EqualOpportunities
405-1 Diversity of governance bodies and employees
Employees' Rights, Interests,Diversity and Equity
405-2 Ratio of basic salary and remuneration of women to men/
GRI 406: Non-discrimination
406-1 Incidents of discrimination and corrective actions taken
Employees' Rights, Interests,Diversity and Equity
GRI 407: Freedomof Associationand CollectiveBargaining
407-1 Operations and suppliers in which the right to freedom ofassociation and right of collective bargaining may be at risk
Employees' Rights, Interests,Diversity and Equity
GRI 408: ChildLabor
408-1 Operations and suppliers at signicant risk for incidentsof child labor
Employees' Rights, Interests,Diversity and Equity
GRI 409: Forced orCompulsory Labor
409-1 Operations and suppliers at signicant risk for incidentsof forced or compulsory labor
Employees' Rights, Interests,Diversity and Equity
GRI 410: SecurityPractices
410-1 Security personnel trained in human rights policies orprocedures
/
GRI 411: Rightsof IndigenousPeoples
411-1 Incidents of violations involving rights of indigenouspeoples
N/A
GRI 413: LocalCommunities
413-1 Operations with local community engagement, impactassessments, and development programs
Community Philanthropy
413-2 Operations with signicant actual and potential negativeimpacts on local communities
/
GRI 414: SupplierSocial Assessment
414-1 New suppliers that were screened using social criteria
Responsible Supply ChainManagement
414-2 Negative social impacts in the supply chain and actionstaken
Responsible Supply ChainManagement
GRI 415: PublicPolicy
415-1 Political contributionsN/A
GRI 416: CustomerHealth and Safety
416-1 Assessment of the health and safety impacts of productand service categories
Product Responsibility
416-2 Incidents of non-compliance concerning the health andsafety impacts of products and services
Product Responsibility
GRI 417: Marketingand Labeling
417-1 Requirements for product and service information andlabeling
Product Responsibility
417-2 Incidents of non-compliance concerning product andservice information and labeling
Product Responsibility
417-3 Incidents of non-compliance concerning marketingcommunications
Product Responsibility
GRI 418: CustomerPrivacy
418-1 Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data
Information Security and PrivacyProtection
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9.3 Appendix III: Feedback Form
Valued readers:
Thank you for reading the Report. This is our Environmental, Social and Governance (ESG) Report 2023. We sincerely hopethat you could evaluate the Report and provide valuable comments to help us make continuous improvement.Should you have any comments or suggestions on our ESG Report, please feel free to email us by info@ggimage.com.Feedback Form of 2023 ESG Report of Ninestar Corporation
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Your comments on the Report: (Please tick "√" in the corresponding box)
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