About This ReportChairman's MessageAbout ETEKPrimary BusinessDevelopment HistoryGlobal LayoutCorporate CultureAchievements and Honors
Report Appendix89
3.1 Environmental Management System
3.2 Climate Change Response
3.3 Emission Management
?3?.?4? ?G?r?e?e?n? ?O-?c?e
4.1 Protection of Employees' Rights and Interests
4.2 Care for Employees' Health
4.3 Care for Employees' Development
4.4 Enrich Employees' Lives
4.5 Dedication to Public Welfare
1.1 Corporate Governance
1.2 Bottom Line for Stabilizing and Controlling Risks
1.3 Sustainable Development Management
2.1 Innovative R&D System
2.2 Supply Chain Management
?2?.?3? ?R?e???n?e?d? ?C?u?s?t?o?m?e?r? ?S?e?r?v?i?c?e?s
2.4 Industry Development Promotion
CONTENTS
Low-carbon Development, Responding to Carbon Peaking andCarbon Neutrality Goals
Optimize Management to Promote High-quality Development
Uphold a People-oriented Policy to Jointly Build a Better Society
Self-independent Innovation to Promote Industry Development
2023 Environmental, Social and Governance Report
Basis of PreparationThis Report is prepared in accordance with the guidelines of the exchange where the listingis located and the international sustainability disclosure standards, with reference to thefollowing disclosure documents:
?Guidelines No. 1 of Shanghai Stock Exchange STAR Market for Self-Regulation of Listed Companies-Standardized Operation (Revised in December 2023)?Guidelines No. 14 of Shanghai Stock Exchange for Self-regulation of Listed Companies - Sustainability Report(Trial)?Sustainability Report Preparation Standards (GRI Standards) by Global Reporting Initiative (“GRI”)?UN Sustainable Development Goals (“UN SDGs”) for 2030?China’s Corporate Social Responsibility Reporting Guidelines (CASS-ESG 6.0) of the Chinese Academy ofSocial Sciences?SJ/T 16000-2016 Guidance on Social Responsibility of Information and Communication Technology Industry
This Report is the first Environmental, Social and Governance (“ESG”) report released by Wuxi ETEK?M?i?c?r?o?e?l?e?c?t?r?o?n?i?c?s? ?C?o?.?,? ?L?t?d?.? ?(?S?t?o?c?k? ?C?o?d?e?:? ?6?8?8?6?0?1?)?,? ?a?i?m?i?n?g? ?t?o? ?c?o?m?p?r?e?h?e?n?s?i?v?e?l?y? ?p?r?e?s?e?n?t? ?t?h?e? ?C?o?m?p?a?n?y?’?s? ?e-?o?r?t?s?and achievements in ESG in 2023 to our stakeholders, so that they can better understand the Company’ssustainable development philosophy, measures and performance.Reporting Period
This Report covers the reporting period from January 1, 2023 to December 31, 2023 (the“Reporting Period”), with an annual release cycle.
Scope of The ReportThe scope of this Report includes Wuxi ETEK Microelectronics Co., Ltd. and its holdingcompanies. Unless otherwise specified, the scope of this Report is consistent with theCompany’s annual report.
Notes on AppellationsWuxi ETEK Microelectronics Co., Ltd. is referred to as the “Company”, “we/our/us” or“ETEK” in this Report.
Reliability Assurance
?I?n? ?l?i?n?e? ?w?i?t?h? ?t?h?e? ?p?r?i?n?c?i?p?l?e?s? ?o?f? ?a?c?c?u?r?a?c?y?,? ?c?o?m?p?a?r?a?b?i?l?i?t?y?,? ?s?u?b?s?t?a?n?c?e?,? ?a?n?d? ?v?e?r?i???a?b?i?l?i?t?y?,? ?t?h?i?s? ?R?e?p?o?r?t?objectively, truthfully, and completely discloses information without any false records,misleading statements, or significant omissions. This Report has been reviewed andapproved by the Board of Directors that is responsible for the authenticity, accuracy, andcompleteness of the content.
Access to This Report?T?h?i?s? ?R?e?p?o?r?t? ?i?s? ?p?u?b?l?i?s?h?e?d? ?i?n? ?b?o?t?h? ?s?i?m?p?l?i???e?d? ?C?h?i?n?e?s?e? ?a?n?d? ?E?n?g?l?i?s?h?.? ?I?n? ?c?a?s?e? ?o?f? ?a?n?y? ?d?i?s?c?r?e?p?a?n?c?y??b?e?t?w?e?e?n? ?t?h?e? ?t?w?o? ?v?e?r?s?i?o?n?s?,? ?t?h?e? ?s?i?m?p?l?i???e?d? ?C?h?i?n?e?s?e? ?v?e?r?s?i?o?n? ?s?h?a?l?l? ?p?r?e?v?a?i?l?.? ?Y?o?u? ?c?a?n? ?a?c?c?e?s?s? ?a?n?d??d?o?w?n?l?o?a?d? ?t?h?i?s? ?R?e?p?o?r?t? ?f?r?o?m? ?t?h?e? ?o-?c?i?a?l? ?w?e?b?s?i?t?e? ?o?f? ?t?h?e? ?C?o?m?p?a?n?y? ?a?t? ?h?t?t?p?s?:?/?/?w?w?w?.?e?t?e?k?.?c?o?m?.?c?n?/?and that of the Shanghai Stock Exchange at http://www.sse.com.cn/.
About This Report
Data Description
This Report is the first edition without a restatement. The qualitative and quantitative?i?n?f?o?r?m?a?t?i?o?n? ?u?s?e?d? ?c?o?m?e?s? ?f?r?o?m? ?t?h?e? ?C?o?m?p?a?n?y?’?s? ?a?c?t?u?a?l? ?o?p?e?r?a?t?i?o?n?a?l? ?r?a?w? ?d?a?t?a?,? ?a?n?n?u?a?l? ???n?a?n?c?i?a?l?data, internal statistical reports, etc. Specifically, the financial data cited is from the???n?a?n?c?i?a?l? ?s?t?a?t?e?m?e?n?t?s? ?i?n? ?t?h?e? ?2?0?2?3? ?A?n?n?u?a?l? ?R?e?p?o?r?t?,? ?w?h?i?c?h? ?h?a?s? ?b?e?e?n? ?i?n?d?e?p?e?n?d?e?n?t?l?y? ?a?u?d?i?t?e?d? ?b?y??a?n? ?a?c?c?o?u?n?t?i?n?g? ???r?m?.? ?U?n?l?e?s?s? ?o?t?h?e?r?w?i?s?e? ?s?p?e?c?i???e?d?,? ?t?h?e? ?m?o?n?e?t?a?r?y? ?u?n?i?t? ?i?n? ?t?h?i?s? ?R?e?p?o?r?t? ?s?h?a?l?l? ?b?e?RMB.
2023 Environmental, Social and Governance Report
Over the past few years, facing unprecedented globalchange, we at ETEK have adhered to a customer-orientedapproach. We’ve worked with our partners to promote therealization of energy conservation, environmental protectionand sustainable development. In pursuit of technologicalinnovation, we’ve continuously optimized our product mixand enhanced service quality, thus winning the trust andrecognition of well-known customers at home and abroad,and achieving sustained growth in revenue and net profit.All these achievements are the result of the joint efforts ofall our employees, and also an important manifestation ofour firm commitment to practicing ESG (Environmental,Social and Governance) concepts and promoting sustainabledevelopment of the Company.We refine our corporate governance with an emphasis onsustainability. We continue to build an efficient decision-making body centered around the Board of Directors,optimize governance levels, establish an ESG managementsystem, promote orderly participation of various departmentsin ESG management, and integrate ESG factors into routineproduction and operation processes. We carry out variouscorporate activities to lead high-quality development. Wealways adhere to the principle of “Quality First and Customer-oriented,” create long-term value for customers and strive to?b?u?i?l?d? ?m?u?t?u?a?l?l?y? ?b?e?n?e???c?i?a?l? ?a?n?d? ?c?l?o?s?e? ?c?o?o?p?e?r?a?t?i?v?e? ?p?a?r?t?n?e?r?s?h?i?p?s?.?Meanwhile, we heighten our awareness of risk management,strengthen our suppliers’ quality and compliancemanagement, and work together to create a clean, healthfulbusiness environment.?W?e? ?i?n?s?i?s?t? ?o?n? ?t?e?c?h?n?o?l?o?g?i?c?a?l? ?i?n?n?o?v?a?t?i?o?n? ?a?n?d? ?e-?c?i?e?n?c?y? ?i?n? ?e?v?e?r?y?aspect of production. Thus, the Company regards R&Dinnovation as the cornerstone of its development, and to thatend we consistently promote the process of independentR&D. In 2023, the Company’s R&D expenses (after chargingoff share-based payments) amounted to RMB117 million,with 36 new-technology patent applications and a total of?1?4?8? ?I?P? ?r?i?g?h?t?s? ?g?r?a?n?t?e?d?.? ?W?e?’?r?e? ?i?n??u?e?n?t?i?a?l? ?i?n? ?t?h?e? ???e?l?d? ?o?f? ?p?o?w?e?r?management chips. The Company has formed a stableR&D team, the core of which accounts for almost half ofour employees. The Company will continue to increase ourR&D investment and enhance our R&D system. Throughtechnological innovation we follow the national strategicpolicy of “accelerating the cultivation of new quality productiveforces and promoting high-quality economic development,”make active response and put it into practice. We increaseinvestment in scientific and technological research anddevelopment, promote industrial upgrading, and fortify ourproduction efficiency and product quality so as to providepowerful support for the sustainable development of society.
We are faithful to the principle of environmental protection,and for that cause we deeply implement green development.We actively employ green production methods and integratethe goals of energy conservation, emission reduction andenvironmental preservation into our production and operation.Accordingly, we’re able to reduce resource consumption andenvironmental pollution. We’ve devoted considerable effortto the development of green, high-performance analog chipproducts for the purpose of reducing energy consumption,protecting the environment, improving quality of life with theinnovation-driven approach and creating value for society. Bystrengthening our existing core competitiveness in technologyand products, we continue to explore new high-endtechnology and product areas, such as new-energy vehicles,smart wearables and smart homes, making significantcontributions to promoting energy conservation, emissionreduction and environmental protection.
We protect employees’ rights and interests and pay closeattention to their growth.A high-quality talent team is theinexhaustible driving force for the sustainable developmentof ETEK. We continuously optimize our remuneration?m?a?n?a?g?e?m?e?n?t? ?s?y?s?t?e?m? ?a?n?d? ?b?e?n?e???t? ?s?y?s?t?e?m? ?t?o? ?c?o?m?p?r?e?h?e?n?s?i?v?e?l?y?protect employees’ rights and interests. Meanwhile, wecreate opportunities for continuous growth for our employees,establish a multi-channel talent development system anddifferentiated training mechanism, and provide a stage foremployees to showcase their talents. We also take part invarious social welfare activities and offer more educationalopportunities. We’ve established the ETEK Award Fund inassociation with top universities as the means to nurturescientific and technological talent, unifying the principles ofsustainable development and social responsibility for thesake of genuine progress.As we proceed toward the future, we will continue to upholdour development philosophy, which is to place quality firstand be customer-oriented. We’ll increase our investment inresearch and development as we promote our technologicalinnovations and product upgrades. We’ll also maintainstrategic cooperation with our partners as together wereach out to the ever-expanding market. Most importantly,we’ll remember our original aspiration: to become a leadingglobal analog chip-design company that creates value forcustomers. We’ll do so with a keen focus on employee growthand a steadfast commitment to sustainable development.
Dear readers,ETEK, through more than 20 years of arduous effort, has maintained asteady pace amid fierce competition and industry transformation of the globalsemiconductor market,which is inseparable from the hard work of our employees,the firm support from our partners and the care expressed by all sectors ofsociety. On behalf of the Company’s Board of Directors and Management, I offerto you our sincerest gratitude and deepest respect.
Chairman of ETEKMinmin YUAN
Chairman's Message
2023 Environmental, Social and Governance Report
ETEK, located in Wuxi High-tech Industrial Development Zone, is a high-tech enterprisespecializing in the design and sales of reliable, high-performance power managementchips. With a registered capital of RMB134 million, the Company is an integrated circuit(“IC”) design enterprise encouraged by the Chinese government. We’re listed on the SSESTAR Market, showing our leading position and powerful strength in the industry.By providing customers with high-quality products and services, ETEK is committed to?b?e?c?o?m?i?n?g? ?a? ?g?l?o?b?a?l? ?l?e?a?d?i?n?g? ?a?n?a?l?o?g? ?c?h?i?p? ?s?u?p?p?l?i?e?r?.? ?W?i?t?h? ?o?v?e?r? ?2?0? ?y?e?a?r?s? ?o?f? ?e-?o?r?t?s? ?i?n? ?t?h?e? ?m?a?r?k?e?t?of power management chips, ETEK has built a product system with rich categories andexcellent quality based on our profound technologies and continuous innovation. We’vegrown into one of the major power-management chip suppliers in China, and our brandinfluence is recognized by customers at home and abroad. The Company has been asupplier to Samsung Electronics since 2010, and through that relationship we’ve accruedvast experience in the development of global business. We’re one of a handful of powermanagement chip-design companies in China with a customer base encompassingdomestic and global consumer-electronics companies.
About ETEK
May 2002SSE STAR Market
SSE STAR Market688601
688601Wuxi City, Jiangsu Province, China
Established in
Listed on
Stock Code
Location of headquarters
2023 Environmental, Social and Governance ReportAbout ETEK
The Company offers a wide range of products, covering mainstream power managementchips such as linear voltage regulator chips, over voltage protection, over current protection,switches, charging management, display drivers, etc. They’re widely used in wearabledevices such as mobile phones, TWS earphones, smart wristbands and watches, as well asautomotive electronics and the IoT (Internet of Things), forming a development pattern withconsumer electronics as the core and wide-ranging market presence.
ETEK
OCP
DCDC
LED
LoadSwitch
TVS
Charger
LCD
e-fuse
PMIC
OVP
LDO
Motor
ESDLogicSensorAnalogSwitch
OPA
Protector IC
Power IC
Driver IC
Signal IC
ETEK is primarily active in the research and sales of analog chips, through which we assist?o?u?r? ?c?u?s?t?o?m?e?r?s? ?w?i?t?h? ?e-?c?i?e?n?t? ?p?o?w?e?r?-?m?a?n?a?g?e?m?e?n?t? ?s?o?l?u?t?i?o?n?s? ?t?h?r?o?u?g?h? ?r?e?l?i?a?b?l?e?,? ?h?i?g?h?-?p?e?r?f?o?r?m?a?n?c?e?power management chips, and developing and promoting other categories of products such?a?s? ?s?i?g?n?a?l? ?c?h?a?i?n? ?c?h?i?p?s?,? ?c?o?v?e?r?i?n?g? ?w?i?d?e?-?r?a?n?g?i?n?g? ?a?p?p?l?i?c?a?t?i?o?n? ???e?l?d?s? ?s?u?c?h? ?a?s? ?i?n?d?u?s?t?r?i?a?l?,? ?c?o?n?s?u?m?e?r?electronics, automotive and medical technology.
| Protector IC | Power IC | Signal IC | Driver IC |
Four major product lines
Primary Business
| 7 | 8 |
2023 Environmental, Social and Governance ReportAbout ETEK
2006
2008
2009
2010
2013
2017
2018
2019
2021
2022
2023
2002
Wuxi ETEKMicroelectronicsCo., Ltd. wasestablishedMay
The Companywas recognizedas the “Digital?P?o?w?e?r? ?A?m?p?l?i???e?r?Integrated CircuitEngineeringTechnologyResearch Center”by the JiangsuProvincialDepartment ofScience andTechnology andthe Departmentof Finance ofJiangsu Province
October
The Companypassed the quality/environmentalmanagement system?c?e?r?t?i???c?a?t?i?o?n? ?a?f?t?e?r? ?t?h?e?ISO 9001/2008 andISO 14001/2004version changes
January
The Companypassed the QPA andQSA ECO audits ofSamsung Electronicsin South Korea
May
The Companywas recognizedas an “EnterpriseDesign Center”by Wuxi Scienceand TechnologyBureau
May
The Company’s“New GenerationDigital ElectronicDetonator Circuitand NetworkProgrammingBlastingEquipment”project won asilver award in theNew Technologyand ProductAchievementEvaluation at theWorld Internet ofThings Exposition
September
?M?i?n?m?i?n? ?Y?U?A?N?,?the Company’sChairman, wasawarded thetitle of “JiangsuProvinceScience andTechnologyEntrepreneur”
July
The Company’s“New SeismicWave PetroleumExplorationDigital Detonatorand NetworkingEquipmentChip” projectwon the SilverAward in theNew Technologyand ProductAchievementEvaluationat the WorldInternet of ThingsExposition
September
?M?i?n?m?i?n? ?Y?U?A?N?,the Company’sChairman, wasawarded the titleof “OutstandingEntrepreneurin Science andTechnologyInnovation” byWuxi City
December
The Companypassed theintellectualpropertymanagementsystem?c?e?r?t?i???c?a?t?i?o?n
May
TheCompanycelebratedits 20thanniversary
May
The CompanycompletedISO 26262?C?e?r?t?i???c?a?t?i?o?n?for FunctionalSafety ofRoad Vehicles
March
The Companywas awardedthe title ofSpecialized,?R?e???n?e?d?,?Featured andInnovative“Little Giant”Company
July
The Companysuccessfullylisted onthe STARMarket onthe ShanghaiStockExchange
June
The Companyobtainedthe “SafetyProductionStandardization?C?e?r?t?i???c?a?t?e?”?issued by theWuxi MunicipalAdministration ofWork Safety
November
2005
The Companyobtained the?q?u?a?l?i???c?a?t?i?o?n?recognitionof “IntegratedCircuit DesignEnterprise” bythe Ministry ofIndustry andInformationTechnology
August
The Companyobtained the?c?e?r?t?i???c?a?t?e?of “Top 10IntegratedCircuit DesignEnterprises inWuxi City”
February
After a share-holding reform,ETEK became acorporation witha share capitalof RMB48million
December
2003
The Companyobtained ISO9000 QualityManagementSystem?C?e?r?t?i???c?a?t?e
September
The Companywas awardedthe title of “High-tech Enterprise”December
Cultivation periodGrowth periodNew journeyStart-up periodDevelopment History
| 9 | 10 |
2023 Environmental, Social and Governance ReportAbout ETEK
WuxiShanghai
Wuxi
Wuxi
ShenzhenSouth Korea
R&D centers
Sales centers
Global Layout
?E?T?E?K? ?a?l?r?e?a?d?y? ?h?a?s? ?s?i?x? ?s?u?b?s?i?d?i?a?r?i?e?s?,? ?i?n?c?l?u?d?i?n?g? ???v?e? ?d?o?m?e?s?t?i?c? ?s?u?b?s?i?d?i?a?r?i?e?s? ?l?o?c?a?t?e?d? ?i?n? ?W?u?x?i?,? ?W?e?n?l?i?n?g?,? ?a?n?d? ?S?h?e?n?z?h?e?n?,? ?a?s? ?w?e?l?l? ?a?s? ?o?n?e? ?s?u?b?s?i?d?i?a?r?y? ?l?o?c?a?t?e?d? ?i?n? ?S?o?u?t?h? ?K?o?r?e?a?.? ?T?h?e? ?C?o?m?p?a?n?y? ?a?c?t?i?v?e?l?y? ?p?r?o?m?o?t?e?s? ?t?h?e?development of global business and plans to further explore international markets.
2023 Environmental, Social and Governance ReportAbout ETEK
Shanghai
Shenzhen
South Korea
ETEK always adheres to the business philosophy of “Quality First, Customer-oriented,and Quick Response”, which is integrated into every operational process of the Company.We are deeply aware that quality is the cornerstone for enterprises to consolidate and?e?x?p?a?n?d? ?t?h?e?i?r? ?m?a?r?k?e?t?s?,? ?a?n?d? ?t?h?i?s? ?c?o?r?e? ?c?o?n?c?e?p?t? ?i?s? ?n?o?t? ?o?n?l?y? ?r?e??e?c?t?e?d? ?i?n? ?t?h?e? ???n?a?l? ?i?n?s?p?e?c?t?i?o?n?process, but also runs through every detail of fine design and excellent manufacturingprocess. We are always committed to continuously improving quality. We bear in mind theconcept of “quality does not rely on inspection but design and manufacturing”, to ensureexcellence in every process.At the same time, we, customer-oriented, strive to create customer value. We focuson communication and interaction with customers, treat them sincerely, win their trust,respond to their needs, and solve their problems. The Company has always focused on?q?u?i?c?k? ?r?e?s?p?o?n?s?e?.? ?I?n? ?t?h?e? ?m?a?r?k?e?t? ???e?l?d?,? ?w?e? ?q?u?i?c?k?l?y? ?c?a?p?t?u?r?e? ?m?a?r?k?e?t? ?o?p?p?o?r?t?u?n?i?t?i?e?s? ?a?n?d? ?l?a?u?n?c?h?products. For customers, we respond quickly to their needs, provide services, and assistthem in resolving problems. Within the Company, we advocate for quick response to?i?m?p?r?o?v?e? ?w?o?r?k? ?e-?c?i?e?n?c?y? ?a?n?d? ?c?u?l?t?i?v?a?t?e? ?e?m?p?l?o?y?e?e?s?’? ?p?r?o?a?c?t?i?v?e? ?a?t?t?i?t?u?d?e?s?.Over the previous development process, we have made continuous improvement andinnovation, breaking through the boundaries of analog chip technology and providingcustomers with high-quality products and services. From the guiding principles to actions,all members of ETEK unanimously recognize and practice the corporate culture fromtop to bottom, committed to making the Company a world-class analog chip supplier.Our mission is to provide customers with high-quality chips and solutions, and createvalue for them. We take innovation and responsibility as the core, adopt the result-orientated approach, insist on honest operation and focus on employee growth andsustainable development of the enterprise, to promote technological progress and socialdevelopment.
Quality FirstQuick ResponseCustomer-oriented
ETEK
We strive to createcustomer value.
We response quicklyto needs and provideproducts and services.Quality is the cornerstone forenterprises to consolidateand expand their markets.
Corporate Culture
2023 Environmental, Social and Governance Report
About ETEK
Category2023Unit
Contribution to public welfare and
charity
1,456.87RMB’000Number of new patent applications36CaseNumber of employees trained175PersonEmployee training hours3,804HourSocial insurance coverage rate100%-
Category2023Unit
Independent directors of the Board of
Directors
3PersonNumber of resolutions and reportsreviewed at the General Meeting of
Shareholders
23ItemNumber of proposals and reportsreviewed at the meeting of the Board of
Directors
53ItemNumber of investor research receptions4TimeMajor rule or law violations0Case
RMB
Operating revenue
million
RMB
R&D expenses?(?c?h?a?r?g?i?n?g? ?o-? ?s?h?a?r?e?-?b?a?s?e?d? ?p?a?y?m?e?n?t?s?)
million
RMB
1467Total assets
million
RMB
?N?e?t? ?p?r?o???t
million
RMB
1.50
Basic earnings per share
per share
17.01
Weighted average returnon net assets
%
Economic performance
Social performance
Governance performance
Key indicators for2023
Achievements and Honors
| 15 | 16 |
2023 Environmental, Social and Governance ReportAbout ETEK
Honors of the Company
?E?T?E?K? ?h?a?s? ?b?e?c?o?m?e? ?a? ?s?u?p?p?l?i?e?r? ?t?h?a?t? ?s?a?t?i?s???e?s? ?c?u?s?t?o?m?e?r?s? ?w?i?t?h? ?h?i?g?h?-?q?u?a?l?i?t?y? ?p?r?o?d?u?c?t?s?,? ?c?o?n?t?i?n?u?o?u?s?l?y?improving services, and a scientific management system. The Company has won multiple?a?w?a?r?d?s? ?a?n?d? ?q?u?a?l?i???c?a?t?i?o?n?s? ?f?r?o?m? ?n?a?t?i?o?n?a?l?,? ?p?r?o?v?i?n?c?i?a?l?,? ?m?u?n?i?c?i?p?a?l?,? ?a?n?d? ?i?n?d?u?s?t?r?y? ?a?s?s?o?c?i?a?t?i?o?n?s?.? ?T?h?e?following are some of the awards:
ISO 9001 Qualitymanagement systems?c?e?r?t?i???c?a?t?i?o?n
ISO14001Environmentalmanagement systems?c?e?r?t?i???c?a?t?i?o?nLaboratory Accreditation?C?e?r?t?i???c?a?t?e? ?o?f? ?C?h?i?n?a?National AccreditationService for ConformityAssessment (CNAS)
ISO 26262 Roadvehicles — Functional
safety
OrganizerHonors and AwardsOrganizing Committee of the World Internet of
Things Exposition
Silver Award for New Technologies and Products at the World
Internet of Things ExpositionJiangsu Semiconductor Industry Association
Vice Presidential Unit of Jiangsu Semiconductor Industry
AssociationJiangsu Provincial People’s Government
?T?h?i?r?d? ?P?r?i?z?e? ?f?o?r? ?S?c?i?e?n?t?i???c? ?a?n?d? ?T?e?c?h?n?o?l?o?g?i?c?a?l? ?P?r?o?g?r?e?s?s? ?i?n?
Jiangsu ProvinceCaijing Magazine
The Most Valuable Investment Enterprise on the STAR Market
in 2022?W?u?x?i? ?S?o?c?i?a?l? ?C?r?e?d?i?t? ?S?y?s?t?e?m? ?C?o?n?s?t?r?u?c?t?i?o?n? ?O-?c?e
Jiangsu Enterprise Credit Management Standardization
?C?e?r?t?i???c?a?t?eWuxi Science and Technology Bureau, Wuxi
Finance Bureau
Wuxi Quasi-unicorn EnterpriseWuxi Service Trade AssociationWuxi Advanced Demonstration Enterprise in Service TradeWuxi High-tech Industry AssociationPresidential Unit of Wuxi High-tech Industry Association
Wuxi High-tech ZoneThe Best Talent Gathering Unit in Wuxi High-tech ZoneManagement Committee of Wuxi High-tech Zone,
Xinwu District Government in Wuxi
Technological Innovation Contribution Award in Wuxi High-
tech ZoneManagement Committee of Wuxi High-tech ZoneIoT Potential Enterprise Award in Wuxi High-tech Zone
?S?p?e?c?i?a?l?i?z?e?d?,? ?R?e???n?e?d?,? ?F?e?a?t?u?r?e?d? ?a?n?d? ?I?n?n?o?v?a?t?i?v?e? ?“?L?i?t?t?l?e? ?G?i?a?n?t?”?
Company
Key Integrated Circuit Design Enterprise encouraged by the
Chinese government
High-tech Enterprise of Jiangsu
Province
Advanced Technology Service Enterprise
of Jiangsu Province
?S?p?e?c?i?a?l?i?z?e?d?,? ?R?e???n?e?d?,? ?F?e?a?t?u?r?e?d? ?a?n?d?Innovative Small and Medium-sized
Enterprise in Jiangsu Province
2023 Environmental, Social and Governance ReportAbout ETEK
Achievements and Honors
Optimize Managementto Promote High-qualityDevelopment
By continuously improving its governance structure, ETEK ensures thatour corporate strategy is consistent with the national strategy, so as tobuild a solid foundation for the Company’s sustainable development.The Company insists on timely and transparent information disclosure toensure efficient and smooth communication with investors. At the sametime, the Company continues to strengthen compliance management andrisk management, follow business ethics and safeguard integrity bottomline, to jointly promote the steady development of the Company.Corporate Governance
UN SDGs?
Corporate GovernanceESG System BuildingInvestor Relations and Information DisclosureBusiness Ethics and Anti-corruptionInformation Security and Protection
ESG topics addressed
| | |
Bottom Line for Stabilizing and Controlling RisksSustainable Development Management
2023 Environmental, Social and Governance Report1 Optimize Management to Promote High-quality Development
1.1 Corporate Governance
With a focus on improving the core competitiveness of the enterprise, ETEK fully meetsregulatory requirements, comprehensively enhances its management capabilities and levels,and establishes and continuously improves the modern corporate governance structure,laying a solid foundation for continuously optimizing the quality of enterprise development.
General Meeting of
Shareholders
Board of Directors
General Manager
Board ofSupervisors
StrategyCommittee
Audit Committee
NominationCommitteeRemunerationand AppraisalCommittee
In strict accordance with the requirements of relevant laws and regulations such as theCompany Law of the People’s Republic of China, Securities Law of the People’s Republicof China, Code of Corporate Governance for Listed Companies, and Rules Governing theListing of Stocks on Shanghai Stock Exchange, ETEK continuously improves the governancestructure, regulates the Company’s operations, and enhances the level of corporategovernance.
Governance structure
| 21 | 22 |
As the highest body of the Company, the General Meeting of Shareholders isresponsible for reviewing and approving major matters of the Company, including?a?n?n?u?a?l? ?r?e?p?o?r?t?s?,? ?p?r?o???t? ?d?i?s?t?r?i?b?u?t?i?o?n? ?p?l?a?n?s?,? ?a?n?d? ?t?h?e? ?e?l?e?c?t?i?o?n? ?o?f? ?m?e?m?b?e?r?s? ?o?f? ?t?h?e? ?B?o?a?r?d?of Directors and Board of Supervisors.
General Meeting of Shareholders
The Board of Directors is the decision-making body of the Company, responsiblefor implementing the resolutions of the General Meeting of Shareholders,formulating the Company’s development strategies and business plans, andsupervising the Company’s operation and management activities. The Board ofDirectors has four special committees: Strategy Committee, Audit Committee,Nomination Committee, and Remuneration and Appraisal Committee, to support?t?h?e? ?B?o?a?r?d? ?o?f? ?D?i?r?e?c?t?o?r?s? ?i?n? ?f?u?l???l?l?i?n?g? ?i?t?s? ?r?e?s?p?o?n?s?i?b?i?l?i?t?i?e?s?.
Board of Directors
The Board of Supervisors is the supervisory body of the Company, responsiblefor supervising the performance of the Board of Directors and SeniorManagement, and supervising the standardized operation of the Company. It?r?e?g?u?l?a?r?l?y? ?r?e?v?i?e?w?s? ?t?h?e? ?C?o?m?p?a?n?y?’?s? ???n?a?n?c?i?a?l? ?r?e?p?o?r?t?s?,? ?r?e?l?a?t?e?d?-?p?a?r?t?y? ?t?r?a?n?s?a?c?t?i?o?n?s?,? ?a?n?d?the implementation of internal control policy to ensure the legality and complianceof the Company’s operations.
Board of Supervisors:
The General Manager is responsible for the routine operation and managementof the Company, implementing the strategies and plans formulated by theBoard of Directors, and ensuring the efficiency and stability of the Company’soperations.
General Manager:
In 2023, ETEK held
Structure of the Board of Directors Members
timesMeeting of the Board ofSupervisors
timesMeeting of the AuditCommittee
timesGeneral Meeting ofShareholders
timesMeeting of the Boardof Directors
times
Meeting of theStrategy Committee
timesMeeting of theNomination Committee
timeMeeting of the Remuneration and Appraisal Committee
As at the end of the Reporting Period, the Board of Directors had a total of nine directors,including three independent directors and two female directors. The members of the Boardof Directors have diverse professional backgrounds, covering areas such as chip technology,???n?a?n?c?e?,? ?l?a?w?,? ?a?n?d? ?i?n?v?e?s?t?m?e?n?t?,? ?a?n?d? ?h?a?v?e? ?r?i?c?h? ?i?n?d?u?s?t?r?y? ?e?x?p?e?r?i?e?n?c?e?.During the Reporting Period, the attendance rate of all directors at the meetings of the Boardof Directors reached 100%, and a total of 53 resolutions were approved at eight meetings ofthe Board of Directors.
GenderNumber of directorsMale7Female2
PositionNumber of directorsNon-independentdirector
Independent director3
AgeNumber of directorsAged under 504Aged over 505
By gender
22%
78%
| Male | Female |
By independent/non-independent
director
67%33%
| Independent director | Non-independent director |
Aged under 50
| Aged over 50 | Aged under 50 |
By age
44%
56%
2023 Environmental, Social and Governance Report1 Optimize Management to Promote High-quality Development
Investor relations management
Transparent information disclosure is an important part of establishing sound corporategovernance and sustainable development, helping to protect investor interests, maintainmarket stability, and establish trust relationships.In order to ensure that all shareholders, especially minority shareholders, have equal rightsto know and participate in major matters of the Company, in strict accordance with therequirements of laws and regulations such as the Management Measures for InformationDisclosure by Listed Companies and the Listing Rules of the STAR market of ShanghaiStock Exchange, ETEK formulates the Management System for Information Disclosure, and?s?t?r?e?n?g?t?h?e?n?s? ?t?h?e? ?m?a?n?a?g?e?m?e?n?t? ?o?f? ?i?n?f?o?r?m?a?t?i?o?n? ?d?i?s?c?l?o?s?u?r?e? ?a-?a?i?r?s?,? ?a?n?d? ?e?n?s?u?r?e?s? ?t?h?e? ?a?u?t?h?e?n?t?i?c?i?t?y?,?accuracy, completeness, timeliness, and fairness of information, to safeguard the legitimaterights and interests of shareholders, especially the general public.The Board of Directors is the “implementer” of the management policies for informationdisclosure, while the Board of Supervisors is the “supervisor”. The information publiclydisclosed by the Company shall be submitted to the Shanghai Stock Exchange in the firstinstance. In addition to disclosing information in accordance with mandatory regulations, theCompany shall proactively and promptly disclose all information that may have a substanttialimpact on the decisions of shareholders and other stakeholders, and ensure that allshareholders have equal opportunities to obtain the information.
?E?T?E?K? ?a?t?t?a?c?h?e?s? ?g?r?e?a?t? ?i?m?p?o?r?t?a?n?c?e? ?t?o? ?c?o?m?m?u?n?i?c?a?t?i?o?n? ?w?i?t?h? ?i?n?v?e?s?t?o?r?s?,? ?a?n?d? ?e?s?t?a?b?l?i?s?h?e?s? ?d?i?v?e?r?s?i???e?d?and transparent communication channels for mutual trust, to enhance the Company’s imageand reputation. The Company has formulated the Management System for Investor Relationsin accordance with laws, regulations and normative documents such as the Company Law,Securities Law, Work Guidelines for the Investor Relations Management of Listed Companies,as well as the provisions of the Articles of Association.As the principal in charge of investor relations management, the Chairman of the Companyis fully responsible for the Company’s investor relations management, presiding over andparticipating in major investor relations activities, including General Meeting of Shareholders,?p?e?r?f?o?r?m?a?n?c?e? ?b?r?i?e???n?g?s?,? ?a?n?d? ?r?o?a?d?s?h?o?w?s?.? ?I?n? ?2?0?2?3?,? ?t?h?e? ?C?o?m?p?a?n?y? ?h?e?l?d? ?t?h?r?e?e? ?r?e?s?u?l?t?s? ?p?r?e?s?e?n?t?a?t?i?o?n?sessions and responded to various questions from investors, ensuring their right to know.The Company has established a registration system for reception activities, which recordsin detail the research, communication, interview, promotion, and advertising activities of therecipients or invitees. After the reception activities are completed, a Record Form of InvestorRelations Activities is compiled and regularly published on the SSE e-interactive website. TheCompany has set up an investor consultation hot line and email, and promptly publishes theCompany’s website, consultation telephone number, investor relations email address, etc. inperiodic reports.
Strict information disclosure
2023 Environmental, Social and Governance Report1 Optimize Management to Promote High-quality Development
1.2 Bottom Line for Stabilizing and Controlling Risks
ETEK always adheres to the principle of governing the enterprise according to law, attachesgreat importance to compliance risk management, and focuses on risk prevention and controlfrom the source. Through compliance review and risk research, the Company ensures stableoperation.
Faced with the complex and ever-changing market environment and internal operationalchallenges, ETEK continuously optimizes its risk management system, enhances its riskprevention and control capabilities, and formulates risk management implementationprocedures such as the Response and Control Procedures for Risks and Opportunities,Identification and Assessment Procedures for Environmental Factors, and EmergencyPreparedness and Response Procedures. The Company continuously improves a seriesof specific risk management measures such as risk identification, risk assessment, riskavoidance, and risk response.
We have established a specialized risk management organization structure to enhance riskmanagement:
?Responsible for establishing response and control procedures for risks and opportunities and maintainingthem.?Responsible for organizing and implementing risk and opportunity reviews at least once a year, following?u?p? ?o?n? ?t?h?e? ?c?o?m?p?l?e?t?i?o?n? ?a?n?d? ?e-?e?c?t?i?v?e?n?e?s?s? ?o?f? ?v?a?r?i?o?u?s? ?m?e?a?s?u?r?e?s?,? ?a?n?d? ?p?r?e?p?a?r?i?n?g? ?t?h?e? ?R?e?p?o?r?t? ?o?n? ?A?s?s?e?s?s?m?e?n?t?and Analysis of Risks and Opportunities.?Responsible for risk assessment and risk response planning within the department, implementing andsupervising various risk response measures.
Responsibility of Quality Management Department
?Responsible for organizing and implementing risk and opportunity analysis and assessment.?Responsible for developing risk and opportunity response measures and implementing them.?Responsible for developing risk management plans.?Responsible for organizing the implementation of risk response measures and verifying their?e-?e?c?t?i?v?e?n?e?s?s?.
Responsibility of risk and opportunity assessment groups
?Responsible for providing the necessary resources for risk management, including personnel?q?u?a?l?i???c?a?t?i?o?n?s?,? ?n?e?c?e?s?s?a?r?y? ?t?r?a?i?n?i?n?g?,? ?a?n?d? ?i?n?f?o?r?m?a?t?i?o?n? ?a?c?q?u?i?s?i?t?i?o?n?.?Responsible for determining acceptable risk standards and policies, and regularly reviewing and updatingrisk and opportunity management.
Responsibility of Management representatives
?Responsible for assessing the risks and opportunities of quality and environment in the department,developing corresponding measures to avoid or reduce risks, and implementing them item by item.
Responsibility of departments
?Responsible for collecting risk information on product after-sales, conducting risk identification workwithin the department, formulating corresponding measures to avoid or reduce risks, and implementingthem item by item.
Responsibility of Sales Department
Strengthening risk management
2023 Environmental, Social and Governance Report
1 Optimize Management to Promote High-quality Development
Operation in compliance is an important guarantee for the stable operation of enterprises.ETEK continues to strengthen its control in compliance with laws and regulations, policy?r?e?s?p?o?n?s?e?,? ???n?a?n?c?i?a?l? ?m?a?n?a?g?e?m?e?n?t? ?c?o?m?p?l?i?a?n?c?e?,? ?a?n?d? ?o?t?h?e?r? ?a?s?p?e?c?t?s? ?t?o? ?e?n?s?u?r?e? ?t?h?e? ?l?e?g?i?t?i?m?a?c?y? ?a?n?d?compliance of the Company’s business activities. The heads of various departments and their?t?e?a?m? ?m?e?m?b?e?r?s? ?o?f? ?E?T?E?K? ?a?r?e? ?t?h?e? ???r?s?t? ?l?i?n?e? ?o?f? ?d?e?f?e?n?s?e? ?f?o?r? ?c?o?m?p?l?i?a?n?c?e? ?w?o?r?k?,? ?a?n?d? ?i?n?t?e?r?n?a?l? ?a?u?d?i?t?continuously supervises and improves compliance work.
The Company closely monitors the dynamic changes in laws and regulationsrelated to its business both domestically and internationally, adjusts and improvesits internal management system in a timely manner, and ensures compliance withall applicable national laws and regulations. All business activities comply withlegal requirements, including but not limited to the company laws, labor laws,environmental protection laws, and intellectual property protection laws.
Financial management compliance is the foundation for the authenticity andaccuracy of the information disclosure of enterprises. The Company followsthe national unified accounting standards and accounting systems to regulatefinancial work. With the development of the Company’s business, the financedepartment is constantly improving accounting methods, accounting policies,accounting estimates, and other matters to ensure the authenticity, accuracy, andcompleteness of accounting information. At the same time, the Company strictlyabides by tax laws and regulations, and declares and pays taxes in accordancewith the law.
The Company actively responds to national industrial policies, environmentalpolicies, safety policies, etc., increases R&D investment, and promotes greenproduction and technological innovation, to ensure the health of employees andthe normal operation of the enterprise.
Compliance with laws and regulations
Financial management compliance
Policy response
Compliance and internal control management
2023 Environmental, Social and Governance Report1 Optimize Management to Promote High-quality Development
a.Developing internal control policiesIn accordance with the Company Law, Securities Law, Listing Rules of the STAR marketof Shanghai Stock Exchange, Guidelines No. 1 of Shanghai Stock Exchange for Self-Regulation of Listed Companies - Standardized Operation, Articles of Association andother laws, regulations and relevant provisions, the Internal Control Policy has beenformulated. Based on risk assessment results, strict, detailed provisions are made forcontrol activities that require special attention.
c.Assessment of internal controlAn accounting firm qualified for securities practices has verified and assessed therationality of the Company’s internal control policy and the effectiveness of internalcontrol operations, and issued an internal control audit report on ETEK in accordancewith the Basic Standard for Enterprise Internal Control and relevant regulations, whichhas been announced in accordance with relevant regulations.
b.Implementation and supervision of internal controlThe Company establishes an internal control management organization structure, andpromotes the implementation and supervision of internal control, to ensure that internalcontrol is truly integrated into the actual operation and management of the Company.
Operation in compliance is an important guarantee for the stable operation of enterprises.ETEK continues to strengthen its control in compliance with laws and regulations, policy?r?e?s?p?o?n?s?e?,? ???n?a?n?c?i?a?l? ?m?a?n?a?g?e?m?e?n?t? ?c?o?m?p?l?i?a?n?c?e?,? ?a?n?d? ?o?t?h?e?r? ?a?s?p?e?c?t?s? ?t?o? ?e?n?s?u?r?e? ?t?h?e? ?l?e?g?i?t?i?m?a?c?y? ?a?n?d?compliance of the Company’s business activities. The heads of various departments and their?t?e?a?m? ?m?e?m?b?e?r?s? ?o?f? ?E?T?E?K? ?a?r?e? ?t?h?e? ???r?s?t? ?l?i?n?e? ?o?f? ?d?e?f?e?n?s?e? ?f?o?r? ?c?o?m?p?l?i?a?n?c?e? ?w?o?r?k?,? ?a?n?d? ?i?n?t?e?r?n?a?l? ?a?u?d?i?t?continuously supervises and improves compliance work.
ETEK ensures its operation in compliance through strict internal control. The Companycontinues to improve its internal control policy in accordance with relevant laws andregulations and the requirements of the Company’s Articles of Association, standardize theimplementation of internal control policy, and strengthen the supervision of internal controlpolicy, to overall enhance the level of internal control management.The Company has established a corporate governance structure consisting of the GeneralMeeting of Shareholders, Board of Directors, Board of Supervisors and General Manager andhas developed corresponding policies to clarify responsibilities and authorities in decision-making, implementation and supervision, creating a reasonable division of responsibilitiesand a mechanism of checks and balances to facilitate their standardized operations.
The Company’s governance level supervises the Company’s accounting policies andthe internal and external audit work and results through its own activities, with thesupport of the Audit Committee. It also oversees whether the policies and procedures?d?e?s?i?g?n?e?d? ?t?o? ?r?e?v?i?e?w? ?t?h?e? ?e-?e?c?t?i?v?e?n?e?s?s? ?o?f? ?i?n?t?e?r?n?a?l? ?c?o?n?t?r?o?l?s? ?a?r?e? ?r?e?a?s?o?n?a?b?l?e? ?a?n?d? ?w?h?e?t?h?e?r??t?h?e?i?r? ?i?m?p?l?e?m?e?n?t?a?t?i?o?n? ?i?s? ?e-?e?c?t?i?v?e?.
The Company’s Management is responsible for corporate operations and theformulation, implementation, and supervision of business strategies and proceduresunder the leadership and supervision of the Board of Directors. In accordance with theCompany Law of the People's Republic of China, the Basic Standard for EnterpriseInternal Control, and related policies and regulations, the Management has developedinternal control-related systems that encompass procurement and payment, sales andcollection, work safety management, asset management, fund management, related-party transactions, and personnel management, tailored to the Company's actualconditions.
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2023 Environmental, Social and Governance Report1 Optimize Management to Promote High-quality Development
ETEK’s Business Ethics Standards
Business integrity
In all business dealings with partners, we adhere to the highest standardsof integrity and adopt a zero tolerance policy towards any form of bribery,corruption, extortion, and embezzlement.
No undue advantage
We do not provide, authorize, give, or accept bribes or other improperbenefits. We implement monitoring, record keeping, and enforcementprocedures for anything that may have undue value to ensure compliancewith relevant laws and regulations.Information publication
All business transactions involving or influencing ETEK are implementedin a transparent manner and accurately reflected in the book of accountsand records. Information regarding participants’ labor, health and safety,environmental practices, business activities, structure, financial condition,and performance is disclosed in accordance with applicable regulations andcurrent industry practices.Intellectual property rights
We highly respect intellectual property rights, transfer technology andknowledge in a way that protects intellectual property rights, and safeguardthe information of customers and suppliers.Fair business, advertising,and competition
We adhere to applicable standards and internationally recognized practicesfor fair business, advertising, and competition.Identity informationprotection and retaliation
prohibition
We maintain confidentiality, anonymity, and protective procedures forsuppliers and employee whistleblowers.
Responsible mineralprocurement
In the mineral procurement business relationship with ETEK, the Companyand business partners comply with policies related to mineral procurementand conduct due diligence on the sources, production and sales regulatorychains of tantalum, tin, tungsten, and gold in the products produced by eachparty, so as to reasonably ensure that the procurement methods complywith the Due Diligence Guidance for Responsible Supply Chains of Mineralsfrom Conflict-Affected and High-Risk Areas issued by the Organization forEconomic Co-operation and Development (OECD) or equivalent recognizeddue diligence frameworks.Privacy
We protect the reasonable privacy requirements of stakeholders (includingsuppliers, customers, consumers, and employees) who have businessdealings with ETEK. When collecting, storing, processing, transmitting,and sharing personal information, we strictly comply with relevant laws andregulatory requirements on privacy and information security.
ETEK advocates honest operation and fair competition, and establishes long-term and stablecooperative relationships with partners, to jointly promote the sustainable development of theindustry. The Company strictly abides by relevant laws and regulations such as the CompanyLaw of the People’s Republic of China and the Law of the People’s Republic of China AgainstUnfair Competition. In 2023, we further strengthened the building of honest operation and faircompetition, committed to creating a fair, transparent, and honest business environment.
ETEK adopts a zero tolerance policy towards any form of corrupt behaviors. We arecommitted to combating corruption, including bribery and extortion, and providing funds forcriminal activities. We strictly abide by relevant laws and regulations such as the UnitedNations Convention against Corruption and the Law of the People’s Republic of China AgainstUnfair Competition, and cultivate a culture of integrity based on transparency, compliance,and ethical business practices. We insist on fighting corruption in case of zero corruptionand provide business ethics and anti-corruption training for all employees, including newemployee onboarding training and regular anti-corruption training.
ETEK has clearly put forward anti-corruption requirements forinternal employees and external business partners:
a) Do not directly or indirectly provide, promise, give, demand, agree, accept, or receiveany type of improper payment, gift, sponsorship, donation, entertainment, hospitality,?o?r? ?i?m?p?r?o?p?e?r? ?b?e?n?e???t? ?f?o?r? ?p?e?r?s?o?n?a?l? ?o?r? ?c?o?m?m?e?r?c?i?a?l? ?g?a?i?n? ?f?r?o?m? ?a?n?y? ?p?u?b?l?i?c? ?o-?c?i?a?l?,? ?e?m?p?l?o?y?e?e?,?representative of state-owned or private enterprise.b) Do not participate in any manipulation of bidding, pricing, cartels, information?t?r?a?n?s?a?c?t?i?o?n?s?,? ?m?o?n?e?y? ?l?a?u?n?d?e?r?i?n?g?,? ?t?h?e?f?t? ?o?f? ?t?r?a?d?e? ?s?e?c?r?e?t?s?,? ?u?n?d?u?e? ?i?n??u?e?n?c?e?,? ?o?r? ?o?t?h?e?r? ?u?n?f?a?i?r?competition practices.c) If any public official or their family members have controlling financial interests in?b?u?s?i?n?e?s?s? ?p?a?r?t?n?e?r?s?,? ?o?r? ?b?u?s?i?n?e?s?s? ?p?a?r?t?n?e?r?s? ?a?r?e? ?a?s?s?o?c?i?a?t?e?d? ?w?i?t?h? ?p?u?b?l?i?c? ?o-?c?i?a?l?s? ?i?n? ?a?n?y? ?o?t?h?e?r?way, such cases shall be disclosed to ETEK.d) Business partners who engage or employ any former employees or their familymembers of ETEK to directly participate in negotiations or contract performance with?E?T?E?K?,? ?a?s? ?w?e?l?l? ?a?s? ?a?n?y? ?o?t?h?e?r? ?s?i?t?u?a?t?i?o?n?s? ?t?h?a?t? ?m?a?y? ?c?a?u?s?e? ?c?o?n??i?c?t?s? ?o?f? ?i?n?t?e?r?e?s?t?,? ?s?h?a?l?l? ?n?o?t?i?f?y??E?T?E?K? ?t?o? ?m?i?t?i?g?a?t?e? ?p?o?t?e?n?t?i?a?l? ?c?o?n??i?c?t?s? ?o?f? ?i?n?t?e?r?e?s?t?.
Business ethics and anti-corruption
2023 Environmental, Social and Governance Report
1 Optimize Management to Promote High-quality Development
The Company respects the privacy rights of all stakeholders and strives to protect theirprivacy and information security. In accordance with relevant laws and regulations such asthe Personal Information Protection Law of the People’s Republic of China, the CybersecurityLaw of the People’s Republic of China, the Data Security Law of the People’s Republicof China, and the Regulations of the People’s Republic of China on the Safety ProtectionoComputer Information Systems, as well as the relevant information security managementsystem, the Company has formulated the Information Security Management Rules, whichclearly stipulates the procedures for obtaining, using, storing, and transmitting information, tofully implement the guarantee system for network information security and privacy protection.The Information Department is responsible for the information security management of ETEK.?I?n? ?r?e?s?p?o?n?s?e? ?t?o? ?i?n?f?o?r?m?a?t?i?o?n? ?s?e?c?u?r?i?t?y? ?r?i?s?k?s?,? ?t?h?e? ?I?n?f?o?r?m?a?t?i?o?n? ?D?e?p?a?r?t?m?e?n?t? ?p?r?o?m?p?t?l?y? ?i?d?e?n?t?i???e?s? ?a?n?d?effectively responds to potential events of information security and privacy breaches, fullysafeguarding the data and privacy security of customers, employees, suppliers, and otherrelevant parties. In addition, as a power management chip design company serving multiplewell-known domestic and foreign consumer electronics enterprises, ETEK’s R&D and designinformation data are the Company’s core data assets. Therefore, we attach great importanceto information security and protection, to ensure the security and integrity of the Company’sdata assets.In terms of identifying and assessing information security risks, the Company adopts a“qualitative and quantitative” approach to identify information security risks, predict thelikelihood of risks, calculate the impact of risks, and determine the value-at-risk of variousinformation security risks through a matrix. The Information Department conducts regularrisk assessments, generally at least once a year. In the event of the following specialcircumstances, the Information Department will also initiate risk assessments: 1. A largenumber of new information assets have increased; 2. Significant changes have occurredin business processes, physical and network environments; 3. A major information securityevent has occurred.The Company holds information security training no less than twice a year, providing trainingfor project team members and relevant participants on risk assessment methods and detailsof the assessment process.
Information security and protection
2023 Environmental, Social and Governance Report
1 Optimize Management to Promote High-quality Development
ETEK has established a top-down ESG Work Group to coordinate the Company’s ESGstrategies and ensure the efficient implementation of ESG management measures, furtherpromoting our sustainable development.The ESG Work Group is responsible for overall planning and coordination of the Company’sESG management. Based on ETEK’s development strategies and actual situation, clear ESGmanagement strategies and goals have been formulated, covering environment, society, and?g?o?v?e?r?n?a?n?c?e?,? ?w?i?t?h? ?t?h?e? ?a?i?m? ?o?f? ?p?r?o?m?o?t?i?n?g? ?t?h?e? ?C?o?m?p?a?n?y?’?s? ?s?u?s?t?a?i?n?a?b?l?e? ?d?e?v?e?l?o?p?m?e?n?t? ?a?n?d? ?f?u?l???l?l?i?n?g?social responsibilities. In terms of environment, we are committed to energy conservation,emission reduction, waste management, etc.; with respect of society, our emphasis is placedon employees’ rights and interests, customer service quality, community responsibility, andpublic welfare and charity; concerning governance, we strengthen corporate governance andtransparent information disclosure, adhere to the principles of honest business practices, andenhance risk management.As the leadership and discussion body, the Management continues to promote the integrationof ESG factors into the routine operations of the Company. Departments implement ESGmeasures, collect various ESG data and work results, and prepare annual ESG reports, tocontinuously strengthen the ESG management of ETEK.
1.3 Sustainable Development Management
Guided by the UN SDGs, ETEK explores the gradual integration of ESG concepts into all?a?s?p?e?c?t?s? ?o?f? ?r?o?u?t?i?n?e? ?o?p?e?r?a?t?i?o?n?s? ?a?n?d? ?m?a?n?a?g?e?m?e?n?t?,? ?i?d?e?n?t?i???e?s? ?c?o?r?e? ?E?S?G? ?t?o?p?i?c?s? ?a?n?d? ?c?o?n?t?i?n?u?o?u?s?l?y?improves the ESG management system. Additionally, we promote ESG management inthe Company, respond to the expectations of stakeholders, and gradually enhance oursustainable development management level.
The ManagementEstablishing the ESG Work Group to coordinate various ESG management,communication, and information disclosure work, and report the progress andachievements of ESG work to the Board of Directors.
Departments?E?a?c?h? ?f?u?n?c?t?i?o?n?a?l? ?d?e?p?a?r?t?m?e?n?t? ?i?s? ?r?e?s?p?o?n?s?i?b?l?e? ?f?o?r? ?i?m?p?l?e?m?e?n?t?i?n?g? ?s?p?e?c?i???c? ?E?S?G? ?t?a?s?k?s?.ESG Work Group
2023 Environmental, Social and Governance Report1 Optimize Management to Promote High-quality Development
SectionCategoryESG TopicUN SDGsOptimizeManagementto PromoteHigh-qualityDevelopment
Governance
Corporate GovernanceESG System BuildingInvestor Relations andInformation DisclosureBusiness Ethics and Anti-
corruptionInformation Security and
ProtectionSelf-independentInnovationto PromoteIndustryDevelopment
Social
Product Quality ManagementProtection of IntellectualProperty RightsR&D InnovationSupply Chain Management
Customer Service QualityIndustry Cooperationand University-Enterprise
CooperationLow-carbonDevelopment,Respondingto CarbonPeakingand CarbonNeutralityGoals
Environmental
Water Resources Management
Energy Saving and Emission
ReductionWaste Management
Uphold a
People-oriented Policyto JointlyBuild a BetterSociety
Social
Employees’ Rights and
InterestsTalent Attraction and Retention
Remuneration Management
and PromotionOccupational Safety and
HealthSocial Responsibility and
CharityBoost Local Economy
We focus on interpreting international and domestic ESG standards and government laws andregulations every year, identifying key topics of concern for leading companies in the industry,and combining our own development strategies and ESG practices to determine materialtopics that are material to the Company and stakeholders. We develop management goalsand strategies for key topics, provide detailed responses in the Report, and continuouslypromote the sustainable development of the Company.
Take into account ESG disclosure indicators,macro trends in national policies, and outstanding?p?e?e?r? ?p?e?r?f?o?r?m?a?n?c?e?.? ?T?h?e?n? ?i?d?e?n?t?i?f?y? ?a?n?d? ?c?o?n???r?m? ?t?h?e?set of issues pertinent to the Company.
?E?T?E?K? ?r?e?v?i?e?w?s? ?a?n?d? ?c?o?n???r?m?s? ?E?S?G? ?t?o?p?i?c?s? ?a?n?d? ?p?r?o?v?i?d?e?s?targeted responses in the annual ESG report.
Fully understand the expectations and demands ofstakeholders through expert consultation and othermeasures, and form a list of ESG topics.
Stakeholder engagement
Topic confirmation and
disclosure
Identification of anESG topic list
Material topics
2023 Environmental, Social and Governance Report1 Optimize Management to Promote High-quality Development
Self-independentInnovation to PromoteIndustry Development
ETEK deems R&D innovation vital for growth, advancing self-reliantprojects systematically. It attracts top talent via incentives, bolsteringresearch innovation. Strict quality control, enhanced supply chainmanagement, and customer-centric service refinements underscoreETEK's dedication to societal value creation for stakeholders, proactivelydriving China's semiconductor industry's sustainability.
Innovative R&D SystemSupply Chain ManagementRefined Customer ServicesIndustry Development Promotion
Product Quality ManagementProtection of Intellectual Property RightsR&D InnovationSupply Chain ManagementCustomer Service QualityIndustry Cooperation and University-Enterprise Cooperation
Material topics addressed:
UN SDGs:
2023 Environmental, Social and Governance Report
2.1 Innovative R&D System
ETEK has been devoted to power management chips for over two decades. Throughoutthis journey, we have remained steadfast in our commitment to innovation, continuouslyintroducing advanced quality management methods and technologies. Parallel to this, wehave consistently invested in building our R&D system and cultivating a highly skilled andcompetent workforce, thereby establishing ourselves as an industry benchmark.In the realm of technology, we are dedicated to innovating and integrating market demandswith cutting-edge technologies. Our focus lies in developing miniaturized and integrated?p?o?w?e?r? ?m?a?n?a?g?e?m?e?n?t? ?c?h?i?p?s? ?w?i?t?h? ?l?e?s?s? ?n?o?i?s?e? ?a?n?d? ?h?i?g?h?e?r? ?e-?c?i?e?n?c?y?,? ?a?s? ?w?e?l?l? ?a?s? ?b?u?i?l?d?i?n?g? ?a? ?v?e?r?s?a?t?i?l?e?design platform. Our technology system, built upon years of validation and refinement,has provided a solid foundation for our R&D team, enabling them to achieve an efficientand precise development process. Furthermore, our innovative incentive mechanism hascatalyzed new product development and accelerated the commercialization of technologicalbreakthroughs, which is instrumental in fueling the Company’s sustained growth andenhancing our competitive edge.Experienced customerservice team withprofessional skills andquick response
Continuous expansion ofindustrial aud automotivecustomers with leading bigcustomers as the servicestandardComprehensiveservice system
Four major
productlines
Protector IC
Driver IC
Converter IC
Signal chain IC
Key and coretechnologies
Eetablished R&D team with20 years of experienceStandardized/IT-based R&D
system
Umwavermg focus onpower and signal ICInvention patents
Striet quality control
?I?S?O? ?9?0?0?1?/?1?4?0?0?1? ?c?e?r?t?i???c?a?t?i?o?n
ISO 26262 Road vehicles-?F?u?n?c?t?i?o?n?a?l? ?s?a?f?e?t?y? ?C?e?r?t?i???c?a?t?i?o?n
Improved qualitycontrol proceduresLaboratoryAccreditation?C?e?r?t?i???c?a?t?e
2 Self-independent Innovation to Promote Industry Development
In November 2022, ETEK’s Reliability Laboratory was awarded the Laboratory Accreditation?C?e?r?t?i???c?a?t?e? ?b?y? ?C?N?A?S?.? ?T?h?i?s? ?m?a?r?k?s? ?t?h?a?t? ?E?T?E?K?’?s? ?R?e?l?i?a?b?i?l?i?t?y? ?L?a?b?o?r?a?t?o?r?y? ?h?a?s? ?b?e?c?o?m?e? ?a? ?n?a?t?i?o?n?a?l?l?y?recognized standard testing laboratory with nationally and internationally recognized facilities,?m?a?n?a?g?e?m?e?n?t? ?l?e?v?e?l? ?a?n?d? ?t?e?s?t?i?n?g? ?c?a?p?a?b?i?l?i?t?i?e?s?.? ?I?t? ?a?l?s?o? ?s?e?r?v?e?s? ?a?s? ?a?n? ?a-?r?m?a?t?i?o?n? ?o?f? ?t?h?e? ?p?r?o?f?e?s?s?i?o?n?a?l?technical expertise and testing capabilities of the Company’s Reliability Laboratory. In thefuture, the Company will leverage the CNAS laboratory accreditation as our new foothold.Adhering to the principles of “rigor, fairness, efficiency, and standardization”, we willconstantly drive innovations in technologies, products, and services, providing our customerswith accurate and reliable testing data and reports and ensuring the Reliability Laboratory’sauthority and credibility.
As a renowned domestic manufacturer of civil explosive materials, Semiconductor’s electroniccontrol module and detonation system are characterized by high reliability, precision, andsafety, finding widespread application in mining blasting, geological exploration, buildingdemolition, engineering blasting and other areas. On April 6, 2023, a week-long manualice-blasting operation was initiated in Heilongjiang to prevent flooding. Semiconductor, asubsidiary of ETEK, successfully employed its electronic control module and detonationsystem, which once again demonstrated its technical prowess and provided robust supportand guarantee for the ice-blasting work. Moving forward, Semiconductor will continue itsresearch and innovation, further contributing to the national infrastructure construction andwork safety.
ETEK earned a CNAS Laboratory Accreditation Certicate,strengthening automotive chip testing capabilities
Semiconductor’s electronic detonators assisted in ice-blasting to prevent ooding in Heilongjiang
Case
Case
2023 Environmental, Social and Governance Report2 Self-independent Innovation to Promote Industry Development
As smartphones, tablets, and other everyday electronic devices become ubiquitous in day-?t?o?-?d?a?y? ?l?i?f?e?,? ?t?h?e? ?c?o?m?p?e?t?i?t?i?o?n? ?t?o? ?e?n?h?a?n?c?e? ?c?a?m?e?r?a? ?f?u?n?c?t?i?o?n?a?l?i?t?i?e?s? ?h?a?s? ?i?n?t?e?n?s?i???e?d? ?a?m?o?n?g? ?l?e?a?d?i?n?g?manufacturers. Consequently, the corresponding driver chips require comprehensiveupgrades to meet these evolving needs.On September 22, 2023, ETEK released its new product, the ET93010A, a high-efficiencyand ultra-small single flash driver chip specifically developed for smartphone cameraillumination applications. Its built-in independent and adjustable 1.5 A LED current sourceemploys an efficient and synchronous boost converter that can be configured to operate?a?t? ?2? ?M?H?z? ?o?r? ?4? ?M?H?z?.? ?I?n? ??a?s?h? ?m?o?d?e?,? ?t?h?e? ?c?u?r?r?e?n?t? ?c?a?n? ?b?e? ?c?o?n?t?r?o?l?l?e?d? ?w?i?t?h?i?n? ?t?h?e? ?r?a?n?g?e? ?o?f? ?1?1? ?m?A?to 1.5 A, or in flashlight mode, the current can be controlled from 1 mA to 375 mA, with aminor dimming step of 1.5 mA, enabling delicate ambient light adjustments. Furthermore, the?E?T?9?3?0?1?0?A? ?i?s? ?o-?e?r?e?d? ?i?n? ?a? ?W?L?C?S?P?8? ?p?a?c?k?a?g?e?,? ?m?i?n?i?m?i?z?i?n?g? ?t?h?e? ?n?e?e?d? ?f?o?r? ?p?e?r?i?p?h?e?r?a?l? ?c?o?m?p?o?n?e?n?t?s??a?n?d? ?s?i?g?n?i???c?a?n?t?l?y? ?r?e?d?u?c?i?n?g? ?t?h?e? ?r?e?q?u?i?r?e?d? ?b?o?a?r?d? ?s?p?a?c?e?.
ETEK released a new product ET93010A
As 5G, AI, and biometrics witness rapid advancements, the usage scenarios and frequencyof high-definition cameras have grown exponentially. Application scenarios such as AIthermometers, day-to-day payments, remote healthcare, and remote work have becomeincreasingly prevalent, where the camera’s ability to transmit clear, real-time video footage isof paramount importance. As a result, our fundamental goal is to ensure clarity and stabilityeven under the most extreme scenarios.On October 15, 2023, ETEK introduced the ET531XX, a low dropout regulator designed?s?p?e?c?i???c?a?l?l?y? ?t?o? ?p?o?w?e?r? ?t?h?e? ?c?a?m?e?r?a? ?A?V?D?D? ?s?u?p?p?l?y?.? ?I?t? ?i?s? ?c?h?a?r?a?c?t?e?r?i?z?e?d? ?b?y? ?a?n? ?e?x?c?e?p?t?i?o?n?a?l?l?y? ?h?i?g?h?power supply rejection ratio (PSRR), ultra-low noise, low static power consumption, and an?e?x?c?e?l?l?e?n?t? ?t?r?a?n?s?i?e?n?t? ?r?e?s?p?o?n?s?e?.? ?T?h?e? ?E?T?5?3?1?X?X? ?i?s? ?s?t?a?b?l?e? ?w?i?t?h? ?a? ?1?.?0? :?F? ?c?e?r?a?m?i?c? ?o?u?t?p?u?t? ?c?a?p?a?c?i?t?o?r?and uses a precision voltage reference and feedback loop to achieve a worst-case accuracy?o?f? ?2?%? ?o?v?e?r? ?a?l?l? ?l?o?a?d?,? ?l?i?n?e?,? ?p?r?o?c?e?s?s?,? ?a?n?d? ?t?e?m?p?e?r?a?t?u?r?e? ?v?a?r?i?a?t?i?o?n?s?.? ?I?t? ?i?s? ?o-?e?r?e?d? ?i?n? ?a? ?s?m?a?l?l? ?D?F?N?4? ?o?r?SOT23-5 package, which is ideal for small form factor portable equipment such as wirelesshandsets and PADs. This product has already undergone complete verification by leadingbrand customers across the world and is poised for widespread application in the camera?m?o?d?u?l?e?s? ?o?f? ?n?e?x?t?-?g?e?n?e?r?a?t?i?o?n? ??a?g?s?h?i?p? ?p?h?o?n?e?s? ?f?r?o?m? ?m?a?i?n?s?t?r?e?a?m? ?b?r?a?n?d?s?,? ?l?e?a?d?i?n?g? ?t?h?e? ?i?n?d?u?s?t?r?y? ?i?n?terms of actual performance.
ETEK released a new product ET531XX
CaseCase
2023 Environmental, Social and Governance Report2 Self-independent Innovation to Promote Industry Development
R&D team building
R&D expenses (RMB’000)Number of the Company’s R&D
personnel (person)Proportion of R&D personnel to theCompany’s total employees (%)Total remuneration of R&D personnel
(RMB’000)Average remuneration of R&Dpersonnel (RMB’000)
116,547.48
52.20
71,684.10
302.50
94,217.76
52.37
59,975.40
301.40
24%19%-20%-
2023 2022Growth Rate
Statistically, the Company’s R&D expenses after charging off share-based paymentsamounted to RMB117 million in 2023, representing an increase of 22,329,700 over theprevious year. Core R&D personnel account for more than 50% of the Company’s totalemployees.
Educational attainment of R&D personnel
Doctor’s degreeMaster’s degreeBachelor’s degreeCollege degree
50%23%19%7%
Number of Personnel
in 2023
Number of Personnel
in 2022
GrowthRate
Age of R&D personnel
Under 30 years old (exclusive of 30
years old)30 to 40 years old (inclusive of 30 yearsold and exclusive of 40 years old)40 to 50 years old (inclusive of 40 yearsold and exclusive of 50 years old)50 to 60 years old (inclusive of 50 yearsold and exclusive of 60 years old)
24%15%-3%50%
Number ofPersonnel in2023
Number ofPersonnel in2022
GrowthRate
2023 Environmental, Social and Governance Report2 Self-independent Innovation to Promote Industry Development
Intellectual property right management
To further consolidate our technological innovation advantage, the Company has actively builtand continuously optimized the intellectual property management system. By establishinga sound intellectual property management policy and leveraging measures such as patentapplications and technology protection, the Company not only safeguards the originalityand value of our own technological achievements, but also lays a solid intellectual propertyfoundation for the Company’s sustained technological innovation and development. TheCompany has formulated an Enterprise Intellectual Property Management Manual, withdedicated intellectual property personnel responsible for the acquisition, review, maintenance,and management of intellectual property.In this process, the Company particularly encourages the R&D team to proactively applyfor patents, thereby solidifying our innovative achievements through legal means. At thesame time, we have actively reinforced a company-wide culture of respect and protection onintellectual property and strengthened employee awareness education on intellectual propertyprotection, thereby ensuring that our innovation is characterized by both bold exploration andprudent progress, avoiding any infringement on the rights of others.In 2023, ETEK achieved substantial progress in technological innovation, submitted 36 newpatent applications (including 22 invention patents) and was granted 26 intellectual propertyrights (including 14 invention patents). By the end of December 31, 2023, the Company hascumulatively obtained 148 authorized intellectual property projects.
2023 Environmental, Social and Governance Report
Intellectual Property
Item
New Items in 2023Cumulative NumberApplicationsItems grantedApplicationsItems grantedInvention patents221410661Utility model
patents
553830Design patents0011Software copyrights0266
Others956050Total3626211148
2 Self-independent Innovation to Promote Industry Development
2.2 Supply Chain ManagementFlowETEK adopts the typical fabless business model in the integrated circuit industry and focuseson the R&D and sales of chips. Occupying the intermediate stage of the entire industrychain, we closely cooperate with upstream and downstream enterprises. The Companyhas maintained stable partnerships with world-leading, technologically advanced and well-established mainstream wafer fabrication and packaging test enterprises.We have long been dedicated to building a healthy relationship with our suppliers basedon positive interactions, forming strategic cooperation and strong support. All along, ourincreased production and progress requirements have been well recognized by our suppliers.As a leading analog chip design enterprise in the industry, we have built a comprehensivesupplier management system, including the Supplier Management Procedures, and havedeeply integrated the risk concept of ESG into supply chain management, rigorouslymonitoring potential risks in the industry chain to ensure the stable and reliable productionand operations. We have implemented a thorough supplier screening and managementsystem to ensure that raw materials and production processes meet high-standardrequirements.
Suppliers’ development
demands
?S?u?p?p?l?i?e?r? ?q?u?a?l?i???c?a?t?i?o?n?/capability investigation
?A?s?s?e?s?s?m?e?n?t? ?o?f? ?q?u?a?l?i???e?d? ?s?u?p?p?l?i?e?r?s
Signature of processing contracts
and quality agreements?C?o?n???r?m?a?t?i?o?n? ?a?n?d? ?d?i?s?c?l?o?s?u?r?e? ?o?f?
?q?u?a?l?i???e?d? ?s?u?p?p?l?i?e?r?s
Regular appraisal
Feedback to suppliersfor remediationSupplier remediationand assessment
Continued supply
?R?e?m?o?v?a?l? ?f?r?o?m? ?q?u?a?l?i???e?d?
suppliers
?S?a?m?p?l?e? ?c?o?n???r?m?a?t?i?o?n
N
N
N
N
?Y
?Y
?Y
?Y
2023 Environmental, Social and Governance Report
2 Self-independent Innovation to Promote Industry Development
?E?T?E?K? ?h?a?s? ?o-?e?r?e?d? ?e?-?f?u?s?e? ?s?o?l?u?t?i?o?n?s? ?t?o? ?w?e?l?l?-?k?n?o?w?n? ?d?o?m?e?s?t?i?c? ?s?m?a?r?t?-?m?e?t?e?r? ?s?u?p?p?l?i?e?r?s?,? ?w?h?i?c?h? ?n?o?t??o?n?l?y? ?e-?e?c?t?i?v?e?l?y? ?p?r?e?v?e?n?t? ?e?l?e?c?t?r?i?c?a?l? ?f?a?u?l?t?s? ?s?u?c?h? ?a?s? ?o?v?e?r?l?o?a?d? ?a?n?d? ?s?h?o?r?t? ?c?i?r?c?u?i?t?s?,? ?b?u?t? ?a?l?s?o? ?f?e?a?t?u?r?e?automatic recovery functions, ensuring that the meter can promptly resume normal operationafter encountering electrical abnormalities. This remarkably enhances the safety and reliabilityof the meter. Besides, the application of e-fuse substantially reduces maintenance costs?a?n?d? ?f?a?i?l?u?r?e? ?r?a?t?e?s?,? ?p?r?o?v?i?d?i?n?g? ?c?u?s?t?o?m?e?r?s? ?w?i?t?h? ?e-?c?i?e?n?t? ?a?n?d? ?s?t?a?b?l?e? ?s?m?a?r?t? ?m?e?t?e?r?s?.? ?A?s? ?a? ?r?e?s?u?l?t?,? ?w?e?have earned high market recognition and customer trust, further consolidating our customers’leading position in the industry.
2.3 Refined Customer Services
ETEK always upholds the customer-oriented philosophy, adhering to national andinternational laws and regulations throughout the entire life cycle, including product design,manufacturing, and after-sales service, to ensure product quality and safety. We arecommitted to driving technological innovation, creating long-term value for customers, and?s?t?r?i?v?i?n?g? ?t?o? ?b?u?i?l?d? ?m?u?t?u?a?l?l?y? ?b?e?n?e???c?i?a?l? ?c?o?o?p?e?r?a?t?i?v?e? ?p?a?r?t?n?e?r?s?h?i?p?s?.? ?T?o? ?b?e?t?t?e?r? ?s?e?r?v?e? ?o?u?r? ?c?u?s?t?o?m?e?r?s?across the globe, ETEK has arranged professional customer service teams in multipleregions and cities, including Wuxi, Shanghai, Shenzhen, and South Korea.In terms of sales, the Company continues to adopt a sales model “applying primarily directselling and taking distribution as ancillary means” based on the characteristics of thedownstream market. We maintain real-time communication with our customers’ technicaldepartments, which not only enables us to provide timely technical support and guidecustomer needs, but also helps improve the timeliness and accuracy of technical and productdevelopment. In 2023, the Company continued to expand into new markets, with internationalmarket sales revenue accounting for 46% of the total. We have also established a wholly-owned subsidiary in South Korea to better serve our global customers.
We continue to deepen our strategic partnerships and take the initiative to participatein industry seminars and exchange activities, such as the Asia Audio Expo, electronicaChina, and Interop Tokyo. We maintain open communication with partners across variousindustries, sharing our technical achievements with industry peers and continuouslyexploring opportunities for collaboration.
Based on customer requirements, ETEK has provided globally renowned and leading phonebrands with charging protection solutions that not only avoid safety risks such as overheatingand short circuits, but also ensure that the battery can be charged quickly and smoothly in?a? ?h?e?a?l?t?h?y? ?s?t?a?t?e?.? ?T?h?i?s? ?p?r?e?s?e?r?v?e?s? ?b?a?t?t?e?r?y? ?c?y?c?l?e? ?l?i?f?e?,? ?s?i?g?n?i???c?a?n?t?l?y? ?i?m?p?r?o?v?e?s? ?t?h?e? ?s?a?f?e?t?y? ?f?a?c?t?o?r? ?o?f?phone charging, and builds a robust line of defense to ensure phone battery safety, helpingcustomers gain a competitive edge for their brands and receive positive market feedback.
ETEK customized charging protection solutions forcustomers
Electronic fuse (e-fuse) solutions
Case
Case
2023 Environmental, Social and Governance Report2 Self-independent Innovation to Promote Industry Development
As an industry-leading power management chip design enterprise, we are committed todriving industry development through constant product innovation and pushing the boundariesof technological advancement. The Company has deepened the close cooperation withupstream and downstream partners in the industry, fostering a win-win ecosystem thatcontributes to the prosperity and sustainable development of China’s chip industry.
2.4 Industry Development Promotion
By the end of 2020, the global shortage of automotive grade chips became a critical issue.As a key domestic provider of smart terminal power management chips, ETEK made abold decision to break into the automotive grade chip market. Over the past three years,?g?u?i?d?e?d? ?b?y? ?t?h?e? ?a?i?m? ?o?f? ?“?i?n?t?e?g?r?a?t?e?d? ?d?e?v?e?l?o?p?m?e?n?t? ?o?f? ?Y?a?n?g?t?z?e? ?R?i?v?e?r? ?D?e?l?t?a?”? ?a?n?d? ?“?h?i?g?h?-?q?u?a?l?i?t?y?”?collaboration and driven by market demands, ETEK has leveraged our role as a leading high-?t?e?c?h? ?e?n?t?e?r?p?r?i?s?e? ?t?o? ?i?n?t?e?g?r?a?t?e? ?t?h?e? ?a?d?v?a?n?t?a?g?e?o?u?s? ?r?e?s?o?u?r?c?e?s? ?o?f? ?t?h?e? ?Y?a?n?g?t?z?e? ?R?i?v?e?r? ?D?e?l?t?a? ?r?e?g?i?o?n??t?o? ?u?n?d?e?r?t?a?k?e? ?j?o?i?n?t? ?r?e?s?e?a?r?c?h? ?e-?o?r?t?s?.? ?W?e? ?h?a?v?e? ?b?e?e?n? ?i?n?c?l?u?d?e?d? ?i?n? ?t?h?e? ?s?u?p?p?l?i?e?r? ?l?i?s?t? ?o?f? ?a?u?t?o?m?o?t?i?v?e?enterprises, playing a crucial part in reinforcing and upgrading weak links in domestic industrychains of automotive grade chips.To enhance the reliability of automotive grade chips and reduce failure rates, ETEK partnered?w?i?t?h? ?a? ?p?a?c?k?a?g?i?n?g? ?p?l?a?n?t? ?i?n? ?t?h?e? ?Y?a?n?g?t?z?e? ?R?i?v?e?r? ?D?e?l?t?a? ?r?e?g?i?o?n? ?a?n?d? ?s?u?c?c?e?s?s?f?u?l?l?y? ?d?e?v?e?l?o?p?e?d? ?a?n?“outward expansion and inward contraction” process technology, resolving physical damage?f?a?i?l?u?r?e?s? ?d?u?r?i?n?g? ?t?h?e? ?p?a?c?k?a?g?i?n?g? ?p?r?o?c?e?s?s?.? ?A?t? ?p?r?e?s?e?n?t?,? ?t?h?i?s? ?h?a?s? ?b?e?e?n? ?w?i?d?e?l?y? ?a?d?o?p?t?e?d?,? ?e-?e?c?t?i?v?e?l?y?mitigating potential failure risks in automotive grade chip packaging.
ETEK developed independent and controllable automotivegrade chips
Case
2023 Environmental, Social and Governance Report
2 Self-independent Innovation to Promote Industry Development
Low-carbon Development,
Responding to Carbon
Peaking and Carbon
Neutrality Goals
ETEK deeply recognizes the importance of environmental protectionand the conservation of energy resources. We are unwavering in ourpursuit of green production and have implemented a series of effectivewaste management strategies. In doing so, we aim to constantly reducethe negative environmental impact of our production and operations,ensuring the harmonious coexistence of our long-term development andthe ecological environment.
Environmental Management System
Climate Change ResponseEmission Management
Green Office
Water Resources ManagementEnergy Saving and Emission ReductionWaste Management
Material topics addressed:
UN SDGs:
2023 Environmental, Social and Governance Report3 Low-carbon Development,Responding to Carbon Peaking and Carbon Neutrality Goals
3.1 Environmental Management System
?T?h?e? ?C?o?m?p?a?n?y? ?h?a?s? ?b?e?e?n? ?c?e?r?t?i???e?d? ?t?o? ?I?S?O?14001 Environmental managementsystems for many years in a row. Inaccordance with the ISO environmentalmanagement systems, as well asrelevant laws, regulations, andstandards, we conduct regular audits ofenvironmental management indicatorsacross all operational parks. During theReporting Period, ETEK recorded noviolations of environmental laws andregulations or penalties from regulatoryauthorities.
ETEK attaches great importance to how our production and operations impact theenvironment. Strictly complying with the Environmental Protection Law of the People’sRepublic of China, the Law of the People’s Republic of China on Environmental ImpactAssessment, as well as other laws, regulations and environmental regulations of the industry,we have formulated and implemented the Identification and Assessment Proceduresfor Environmental Factors, the Environmental Management Standards for Products, theManagement Regulations on Wastewater Discharge, the Management Regulations on SoldWaste, the Management Regulations on Energy Conservation and Consumption Reduction,the Management Regulations on Noise Emission, and other internal environmentalmanagement systems. We have also established an environmental management structurewith a clear division of responsibilities, comprising the General Manager, system managers,and relevant departments, so as to clarify environmental management responsibilities,?s?t?a?n?d?a?r?d?i?z?e? ?t?h?e? ?i?d?e?n?t?i???c?a?t?i?o?n?,? ?a?s?s?e?s?s?m?e?n?t?,? ?a?n?d? ?i?m?p?r?o?v?e?m?e?n?t? ?m?e?c?h?a?n?i?s?m?s? ?f?o?r? ?e?n?v?i?r?o?n?m?e?n?t?a?l?risk factors, implement environmental management policies and measures, and enhance?t?h?e? ?e-?e?c?t?i?v?e?n?e?s?s? ?o?f? ?t?h?e? ?C?o?m?p?a?n?y?’?s? ?e?n?v?i?r?o?n?m?e?n?t?a?l? ?m?a?n?a?g?e?m?e?n?t? ?s?y?s?t?e?m? ?b?u?i?l?d?i?n?g? ?i?n? ?a? ?s?t?e?a?d?y?manner.
Activities, products or services organizedEnvironmental investigations of the Company and departments
Enviromental impact assessments of departmentsEnviromental impact assessnents of the Company
List of material environmental factors
RecordNotify relevant departments?R?e??e?c?t? ?i?n? ?e?n?v?i?r?o?n?m?e?n?t?a?l? ?t?a?r?g?e?t?s? ?a?n?d? ?m?e?t?r?i?c?s
Material environmental
factor or not?Y?e?s
Identify factor
Materialenvironmentalfactor
Determine
Comply withenvironmentalregulations toensure compliantenvironmentalmanagement
Preventenvironmentalpollution to improve
environmentalmanagementperformance
Strengthenenvironmentalprotectionawarenessby educatingemployees and the
public
Ensure thatproducts conformto customer andlegal requirements.
ETEK’s environmental management policies
ISO 14001 EnvironmentalManagement System
?C?e?r?t?i???c?a?t?i?o?n
ETEK’s Environmental Management Framework
General manager
Formulationand approval ofthe Company 'senvironmentalmanagement policy
System managerPromotion andsupervision of theimplementationof environmentalmanagement policy
Relevantdepartment?S?p?e?c?i???c?implementationof environmentalmanagement policyComprehensiveDepartment's Manager
3.2 Climate Change Response
StrategyETEK fully recognizes the significance of climate change and our profound impact onbusiness operations and long-term value. In response to the national goals of “carbon peakingand carbon neutrality”, we are continuously enhancing our capacity to address climatechange. During the Reporting Period, we adhered to the Task Force on Climate-relatedFinancial Disclosures (TCFD) recommendations, focusing on the four pillars of “governance,strategies, risk and opportunity management, and metrics and targets”. We continuouslydeepen our understanding and management of climate change risks and opportunities andmitigate the impacts of climate risks by improving our governance structure, promoting low-carbon manufacturing, increasing the utilization of renewable energy, and enhancing energy?e-?c?i?e?n?c?y?.
ETEK implements a series of policies and measures regarding climate change mitigationand adaptation, such as investing in clean energy, improving production procedures, andpromoting energy-saving technologies. Furthermore, we optimize resource utilization,?e?n?h?a?n?c?e? ?e?n?e?r?g?y? ?e-?c?i?e?n?c?y?,? ?a?n?d? ?d?r?i?v?e? ?c?o?n?t?i?n?u?o?u?s? ?g?r?e?e?n? ?t?r?a?n?s?f?o?r?m?a?t?i?o?n?.
We have established an ESG Work Group to integrate climate change topics into ourmanagement, ensuring effective management of climate-related risks and opportunities atboth the strategy and execution levels.
Mitigation
Adaptation
Increased research and investment in clean technology:
Research and develop low-carbon emission printing technologies, such as using environmentally friendlyinks and implementing printing processes that reduce carbon emissions.
Risk identication and assessment:
Conduct climate change risk assessments for the Company’s production bases, supply chains, andbusiness at home and abroad to identify high-risk processes.
Energy e?ciency enhancement:
Optimize the hardware design of printers through technological innovation to reduce energy consumption.
Disaster response capability enhancement:
Develop and implement emergency plans to address natural disasters that may result from climate?c?h?a?n?g?e?,? ?s?u?c?h? ?a?s? ??o?o?d?s?,? ?t?y?p?h?o?o?n?s?,? ?a?n?d? ?p?r?e?c?i?p?i?t?a?t?i?o?n?,? ?e?n?s?u?r?i?n?g? ?t?h?e? ?s?a?f?e?t?y? ?o?f? ?o?u?r? ?o?p?e?r?a?t?i?o?n?s? ?a?n?d? ?p?e?r?s?o?n?n?e?l?.
Renewable energy utilization:
Prioritize the use of renewable energy in our operations, such as purchasing green electricity and green?e?l?e?c?t?r?i?c?i?t?y? ?c?e?r?t?i???c?a?t?e?s?,? ?w?h?e?r?e? ?f?e?a?s?i?b?l?e?.
Business strategy adjustment:
Based on the actual impacts of climate change and in combination with customer demands, timely adjustthe Company’s business strategies, such as shifting towards more environmentally friendly products and?s?e?r?v?i?c?e?s? ?t?o? ?m?i?t?i?g?a?t?e? ?t?h?e? ?n?e?g?a?t?i?v?e? ?e-?e?c?t?s? ?o?f? ?c?l?i?m?a?t?e? ?c?h?a?n?g?e? ?o?n? ?b?u?s?i?n?e?s?s? ?o?p?e?r?a?t?i?o?n?s?.
Product lifecycle management:
Be dedicated to reducing the emissions of hazardous substances and minimizing the environmentalimpact of our products throughout their entire lifecycle from procurement, design, production,transportation, and use to disposal.
Execution
Management
Departments take charge of the implementation of various initiativesrelated to addressing climate change.Responsibility of all functional departments:
It is responsible for identifying and assessing climate risks andopportunities, with a focus on strategies and objectives related to climatechange, such as energy conservation, consumption reduction, emergencymanagement, and climate risk assessment, which are integrated intothe Company’s routine operations and long-term planning. Besides, itundertakes the specific implementation of ESG management plans toensure that climate risk management is embedded through all businessprocedures and decisions.
Responsibility of ESG Work Group:
Governance
2023 Environmental, Social and Governance Report3 Low-carbon Development,Responding to Carbon Peaking and Carbon Neutrality Goals
ClassicationCategory
Explanation of Potential
Risks
Countermeasures
Acute
Typhoon,rainstorm,hail and otherextremeweathers
There may be damage?t?o? ?o-?c?e? ?f?a?c?i?l?i?t?i?e?s? ?a?n?d?goods, negatively?i?n??u?e?n?c?i?n?g? ?n?o?r?m?a?l?business operationsand resulting in direct???n?a?n?c?i?a?l? ?l?o?s?s?e?s?.
Conduct inspections and?r?e?i?n?f?o?r?c?e? ?o-?c?e? ?f?a?c?i?l?i?t?i?e?s?,?develop emergencyresponse plans, enhance themeteorological warning system,store emergency supplies, andorganize practical training andemergency drills to ensure arapid response.
Chronic
Averagetemperaturerise
High temperaturesmay lead to heatstrokeamong employees,increasing safety risksand resulting in adecline in overall work?e-?c?i?e?n?c?y?.
Implement measures to cooldown and care for employees.
We conduct analysis of physical risks and transition risks based on the classificationstandards of the TCFD, identify the potential impacts of climate change on ETEK and activelydevelop response measures to ensure the Company’s stable operation.
Risk management
ClassicationCategoryExplanation of Potential RisksCountermeasures
Policy and lawRisk
In developed countries and regions ofthe European and American markets,there may be stricter standards forclimate change and carbon emissionsthroughout the entire product lifecycleimposed on brand enterprises in thefuture, which will be transmitted throughthe value chain to ETEK, impactingour overseas business and resulting incertain compliance costs.
Track regulatory trends in climatechange or product carbon?f?o?o?t?p?r?i?n?t?s? ?i?n? ?d?i-?e?r?e?n?t? ?c?o?u?n?t?r?i?e?s?and local governments, anticipatedevelopments, and respondproactively.
TechnologyRisk
International brand customers areincreasingly enhancing the greenattributes of their products by adoptingnew materials and technologies todevelop green and low-carbon products.This may result in higher demands forlow-carbon and green technology in thepower management chips provided byETEK.
Focus on cutting-edge greentechnologies, increaseinvestment in the research anddevelopment of green and low-carbon technologies based onrealities, continuously carry outtechnological innovation and?e?n?h?a?n?c?e? ?e?n?e?r?g?y? ?e-?c?i?e?n?c?y?,? ?a?n?d?seek green technology partnersor suppliers to meet customerrequirements.
MarketRisk
Consumers in the European market aremore willing to pay a premium for greenproducts. It is essential to upgrade?p?r?o?d?u?c?t?s? ?a?c?c?o?r?d?i?n?g? ?t?o? ?s?p?e?c?i???c? ?c?u?s?t?o?m?e?r??r?e?q?u?i?r?e?m?e?n?t?s?,? ?o?t?h?e?r?w?i?s?e?,? ?w?e? ?m?a?y? ???n?d?ourselves at a competitive disadvantageagainst leading international peers.
Conduct investigations on majorcustomers’ preferences for greenand sustainable products, exploreand develop green products,continue to progress the researchand production of low-carbondesign power managementchips, signal chain chips, andother products, as well as obtain?r?e?l?e?v?a?n?t? ?g?r?e?e?n? ?c?e?r?t?i???c?a?t?i?o?n?s?.
ReputationRisk
Stakeholders have increasingly highexpectations regarding corporateenvironmental responsibility. Negativeenvironmental events may harmcorporate and brand images.
Actively participate inenvironmental protectionactivities, continuously enhanceenvironmental disclosure through?E?S?G? ?r?e?p?o?r?t?s? ?a?n?d? ?o-?c?i?a?l? ?a?c?c?o?u?n?t?s?,?and showcase work achievementsto improve the corporate image.
Physical risks resulting from climate change
Transition risks resulting from climate change
2023 Environmental, Social and Governance Report3 Low-carbon Development,Responding to Carbon Peaking and Carbon Neutrality Goals
To ensure that our low-carbon development aligns with industry requirements, ETEK hasdeveloped phased goals for 2025 to encourage proactive energy conservation and carbonreduction initiatives.In 2023, we began establishing an internal quantification platform for carbon emissions,adhering to international standards such as ISO 14064, ISO 14067, ISO 14040, and ISO14044. This platform integrates globally universal and China’s domestic carbon emission?d?a?t?a?b?a?s?e?s? ?t?o? ?s?c?i?e?n?t?i???c?a?l?l?y? ?a?n?d? ?r?e?a?s?o?n?a?b?l?y? ?q?u?a?n?t?i?f?y? ?t?h?e? ?c?a?r?b?o?n? ?e?m?i?s?s?i?o?n?s? ?r?e?s?u?l?t?i?n?g? ?f?r?o?m? ?o?u?r?business activities, while regularly tracking the progress of our targets.
Targets and metrics
2023
58.72
tCO2eScope 1 Direct carbon emissions (gasoline + diesel)
②
2023
③
836.89
tCO2eScope 2 Indirect carbon emissions (purchased electricity)
2023
895.61
tCO2eScope 1 +2 Total carbon emissions
13,100.00
liters
Gasoline
1,297.30
MWh
Purchasedelectricity
11,100.00
liters
Diesel
3,183.00
tons
Total water consumption(municipal water supply)
2023
Metrics
①
①The data disclosed in this table is from the headquarters of ETEK.②?G?a?s?o?l?i?n?e? ?a?n?d? ?d?i?e?s?e?l? ?e?m?i?s?s?i?o?n? ?f?a?c?t?o?r?s? ?a?r?e? ?c?a?l?c?u?l?a?t?e?d? ?b?a?s?e?d? ?o?n? ?t?h?e? ?c?a?l?o?r?i???c? ?v?a?l?u?e?s? ?a?n?d? ?c?a?r?b?o?n? ?o?x?i?d?a?t?i?o?n? ?r?a?t?e?s? ?p?r?o?v?i?d?e?d? ?i?n? ? ??t?h?e? ?G?u?i?d?e?l?i?n?e?s? ?o?n? ?P?r?o?v?i?n?c?i?a?l? ?G?r?e?e?n?h?o?u?s?e? ?G?a?s? ?E?m?i?s?s?i?o?n? ?I?n?v?e?n?t?o?r?y?,? ?w?i?t?h? ?g?a?s?o?l?i?n?e? ?d?e?n?s?i?t?y? ?a?t? ?0?.?7?7?5? ?k?g?/?L? ?a?n?d? ?d?i?e?s?e?l? ?d?e?n?s?i?t?y? ?a?t??0?.?8?4?5? ?k?g?/?L?.③?I?n? ?2?0?2?1?,? ?t?h?e? ?a?v?e?r?a?g?e? ?c?a?r?b?o?n? ?d?i?o?x?i?d?e? ?e?m?i?s?s?i?o?n? ?f?a?c?t?o?r? ?f?o?r? ?e?l?e?c?t?r?i?c?i?t?y? ?i?n? ?-?i?a?n?g?s?u? ?P?r?o?v?i?n?c?e? ?w?a?s? ?0?.?6?4?5?1? ?k?g?C?O?2?e?/?k?W?h?.67
| 67 | 68 |
2023 Environmental, Social and Governance Report3 Low-carbon Development,Responding to Carbon Peaking and Carbon Neutrality Goals
3.3 Emission Management
As a fabless IC design company, ETEK does not perform direct manufacturing ofproducts. Consequently, the negative environmental impact resulting from emissionsduring our operations is relatively minimal.ETEK emphasizes the management of various emissions to prevent environmentalpollution. We strictly comply with the Environmental Protection Law of the People’sRepublic of China, the Law of the People’s Republic of China on Prevention and Controlof Environmental Pollution by Solid Waste, the Emergency Response Law of the People’sRepublic of China, the Measures for the Management of Hazardous Waste TransferForms, the Law of the People’s Republic of China on Prevention and Control of WaterPollution, the Law of the People’s Republic of China on the Prevention and Control ofNoise Pollution and other laws and regulations, focus on addressing environmental risks,?d?e?v?e?l?o?p? ?e?m?i?s?s?i?o?n? ?m?a?n?a?g?e?m?e?n?t? ?p?l?a?n?s?,? ?a?n?d? ?c?l?e?a?r?l?y? ?d?e???n?e? ?m?a?n?a?g?e?m?e?n?t? ?r?e?s?p?o?n?s?i?b?i?l?i?t?i?e?s? ?t?o?minimize our environmental impact.At the same time, ETEK has issued the Substance Standards for EnvironmentalManagement, which explicitly require that plastic-packaged products and moduleproducts comply with the EU RoHS Directive and REACH. This ensures that 100%of our products and those we procure do not exceed standards regarding harmfulchemicals (such as lead, cadmium, mercury, and hexavalent chromium). Moreover, wecommunicate environmental requirements regarding products to our suppliers and enter?i?n?t?o? ?e?n?v?i?r?o?n?m?e?n?t?a?l? ?a?g?r?e?e?m?e?n?t?s?,? ?e-?e?c?t?i?v?e?l?y? ?c?o?n?t?r?o?l?l?i?n?g? ?a?n?d? ?r?e?d?u?c?i?n?g? ?t?h?e? ?p?o?l?l?u?t?i?o?n? ?c?a?u?s?e?d?by our products and contributing to the protection of the planet.
The Company does not generate production-based hazardous solid waste in routineoperations, with only a small amount of copper-containing waste circuit boards producedduring design and testing. The non-hazardous waste generated primarily consists of domesticwaste.ETEK has developed an emergency response plan on hazardous waste for drills and hasestablished an annual hazardous waste management training program for organization andimplementation.
The Company’s project departments rigorously develop a ledger of solid waste and conductregular inspections. Dedicated personnel oversee and plan the storage and inspection ofsolid waste. There are also dedicated personnel responsible for organizing the auction ofapproved obsolete items.
lThe generated solid waste is stored in strictaccordance with requirements, ensuring that storagefacilities are equipped with features to prevent rainexposure, leakage, scattering, and loss.lDomestic waste is sorted and centralized for properdisposal in compliance with the environmentalregulations set forth by local environmentalauthorities and qualified third parties are engaged tocarry out waste management.
lDesignated personnel are responsible for managinghazardous waste systems, training materials, ledgersand reports, as well as other relevant materials, therebycreating a complete hazardous waste ledger.lWe strictly implement the hazardous waste transferplan, accurately complete paper hazardous wastetransfer forms and report them on the environmentalprotection department0s hazardous wastemanagement platform to ensure data consistency.
Waste Management
有有
| | |
2023 Environmental, Social and Governance Report3 Low-carbon Development,Responding to Carbon Peaking and Carbon Neutrality Goals
Non-hazardouswaste
Hazardous
waste
The Company strictly conforms to the national Integrated Wastewater Discharge Standardsand the Wastewater Quality Standards for Discharge to Municipal Sewers and dischargeswastewater rigorously through the arranged pipelines for domestic wastewater in the park.
Wastewater source is defined. Sewage generated in equipmentcleaning or production should be directed into the sewagepipelines. High-concentration residual liquid containers should beplaced in designated storage locations and handled by qualifiedorganizations.It is strictly forbidden to flush pipelines with wastewater. Ifnecessary, prior approval from the relevant organizations andinstitutions should be obtained, along with the implementation ofcorresponding measures to prevent pollution.If there is too much wastewater in the wastewater pool on site,the Company should contact qualified wastewater treatmentorganizations for handling.It is strictly prohibited to pour residual oil and leftovers into thesewage pipelines and use phosphorous-containing detergent towash dishes.Domestic waste should be cleared promptly to prevent rainwater?r?u?n?o-?,? ?w?h?i?c?h? ?c?o?u?l?d? ?l?e?a?d? ?t?o? ?w?a?t?e?r? ?p?o?l?l?u?t?i?o?n?.
The Company strictly adheres to Class III standards in the GB 12348-2008 Emission standardfor industrial enterprises noise at boundary, maintaining noise levels below 65 dB duringthe day and below 55 dB at night (from 10:00 PM to 6:00 AM) at boundary. The Companyregularly conducts inspections of noise pollution sources to ensure compliant emissions. Atthe same time, the Company performs routine maintenance and servicing on equipment that?g?e?n?e?r?a?t?e?s? ?n?o?i?s?e? ?t?o? ?e-?e?c?t?i?v?e?l?y? ?r?e?d?u?c?e? ?n?o?i?s?e? ?p?o?l?l?u?t?i?o?n?.
Wastewater managementNoise pollution control
Wastewaterdisposalmeasures
2023 Environmental, Social and Governance Report3 Low-carbon Development,Responding to Carbon Peaking and Carbon Neutrality Goals
3.4 Green Office
ETEK strictly complies with the Energy Conservation Law of the People’s Republic of China,the Water Law of the People’s Republic of China, the Law of the People’s Republic ofChina on Promotion of Cleaner Production and other laws and regulations. We prioritize the?r?o?u?t?i?n?e? ?m?a?n?a?g?e?m?e?n?t? ?o?f? ?o?u?r? ?o-?c?e?s?,? ?c?o?n?t?i?n?u?o?u?s?l?y? ?i?m?p?r?o?v?e? ?o?u?r? ?e?n?e?r?g?y? ?m?a?n?a?g?e?m?e?n?t? ?a?n?d? ?w?a?t?e?r?resource management systems, enhance energy conservation and emissions reduction,?i?n?c?r?e?a?s?e? ?e?n?e?r?g?y? ?e-?c?i?e?n?c?y?,? ?a?n?d? ?p?r?o?m?o?t?e? ?w?a?t?e?r? ?r?e?s?o?u?r?c?e? ?s?a?v?i?n?g?s?,? ?t?h?e?r?e?b?y? ?c?o?n?t?r?i?b?u?t?i?n?g? ?t?o? ?t?h?e?reduction of pollution and emissions.We have developed relevant policies, such as the Energy Conservation Management Policyand the Energy Conservation Technology Supervision Standards, so as to actively guideemployees in the reasonable use of energy resources during daily office work. Variousmeasures have been implemented to implement ETEK’s green development principles.
? Reduce the use frequency of air conditioners, set the temperature no lower than 26°C, andensure that air conditioners are not operated while doors and windows are open.? Encourage the use of energy-saving lamps and ensure lights are off when leaving.? Avoid the use of high-power water heaters.? Regulate the temperature settings for office and break areas, standardize the use of electricradiators, and develop corresponding management measures to lower relevant operational energyconsumption.? Set computers to automatic standby or hibernate mode and check computer shutdowns in eachoffice after hours.
? Regularly check taps for leaks.? Create water-saving promotional materials, such as slogans, and place them in prominentlocations in water-use areas.
? Promote double-sided printing and waste paper recycling and encourage paperless officethrough the increased use of electronic files and emails.? Consciously practice the “Clean Plate” initiative and implement the “Civilized Dining Table”campaign to prevent food waste, fostering healthy and civilized dining habits.? Actively engage in repair and reuse efforts, especially for equipment such as UPS with fans,motors, and IGBTs. Maximize the reuse of materials from technical innovation to assist in energyconservation, consumption reduction, and cost reduction in maintenance.
Energy conservation and consumption reduction
Water conservation
Conservation and recycling
2023 Environmental, Social and Governance Report3 Low-carbon Development,Responding to Carbon Peaking and Carbon Neutrality Goals
Uphold a People-oriented Policyto Jointly Build aBetter Society
ETEK upholds "empathy in relations, rigor in operations," valuingemployees. We foster diversity, equality, and inclusion for a safe,healthy work environment. A fair, scientific HR system with democraticcommunication enhances employee activities. People-centric, we enhancehumanistic care for harmony and growth. Committed to sustainability,we recognize social responsibility, actively engaging in welfare. Actionsembody our mission to spread love & hope, striving for a harmonious,prosperous society.
Material topics addressed:
UN SDGs:
Employees’Rights and InterestsTalent Attraction and RetentionRemuneration Management and PromotionOccupational Safety and HealthSocial Responsibility and CharityBoost Local Economy
Protection of Employees’ Rights and InterestsCare for Employees' Health and DevelopmentEnrich Employees’ LivesDedication to Public Welfare
4 .1 Protection of Employees' Rights and InterestsWe standardize the management of recruitment, resignation, promotion, working hours,?l?e?a?v?e?,? ?a?n?d? ?b?e?n?e???t?s? ?i?n? ?s?t?r?i?c?t? ?c?o?m?p?l?i?a?n?c?e? ?w?i?t?h? ?l?a?w?s? ?a?n?d? ?r?e?g?u?l?a?t?i?o?n?s? ?s?u?c?h? ?a?s? ?t?h?e? ?L?a?b?o?r? ?L?a?w? ?o?f?the People’s Republic of China, the Labor Contract Law of the People’s Republic of China,the Law of the People’s Republic of China on Labor-dispute Mediation and Arbitration,and the Law of the People’s Republic of China on Promotion of Employment, as wellas internal management policies such as the Personnel Management Regulations andImplementation Standards, the Recruitment and Onboarding Management Policy, and theResignation Management Policy. We standardize the employee recruitment process based?o?n? ?t?h?e? ?C?o?m?p?a?n?y?’?s? ?a?c?t?u?a?l? ?c?o?n?d?i?t?i?o?n?s? ?t?o? ?b?o?o?s?t? ?r?e?c?r?u?i?t?m?e?n?t? ?e-?c?i?e?n?c?y?.? ?W?e? ?m?a?i?n?t?a?i?n? ?s?t?r?i?c?t? ?l?a?b?o?r?discipline, protect employees’ lawful rights and interests, establish a binding and effectivereward and punishment mechanism, and ensure orderly production and work procedures.To standardize salary and benefits management, stimulate employees’ enthusiasm, andpromote fairness and reasonableness, we have established a range of internal salary and?b?e?n?e???t?s? ?p?o?l?i?c?i?e?s?,? ?s?u?c?h? ?a?s? ?t?h?e? ?C?o?r?p?o?r?a?t?e? ?R?e?m?u?n?e?r?a?t?i?o?n? ?M?a?n?a?g?e?m?e?n?t? ?P?o?l?i?c?y?,? ?t?h?e? ?R?e?m?u?n?e?r?a?t?i?o?n??a?n?d? ?B?e?n?e?f?i?t?s? ?P?o?l?i?c?y?,? ?a?n?d? ?t?h?e? ?Y?e?a?r?-?e?n?d? ?B?o?n?u?s? ?A?p?p?r?a?i?s?a?l? ?M?e?a?s?u?r?e?s?,? ?i?n? ?a?c?c?o?r?d?a?n?c?e? ?w?i?t?h??r?e?l?e?v?a?n?t? ?l?a?w?s? ?a?n?d? ?r?e?g?u?l?a?t?i?o?n?s?.? ?W?e? ?c?o?n?t?i?n?u?o?u?s?l?y? ?r?e???n?e? ?o?u?r? ?r?e?m?u?n?e?r?a?t?i?o?n? ?a?n?d? ?b?e?n?e???t?s? ?s?y?s?t?e?m??t?o? ?o-?e?r? ?a? ?r?e?m?u?n?e?r?a?t?i?o?n? ?s?t?r?u?c?t?u?r?e? ?t?h?a?t? ?i?s? ?c?o?m?p?e?t?i?t?i?v?e? ?e?x?t?e?r?n?a?l?l?y?,? ?a?n?d? ?m?o?t?i?v?a?t?i?n?g? ?a?n?d? ?r?e?a?s?o?n?a?b?l?e?internally. We are committed to equal pay for equal work, opposing any form of discriminationbased on gender.Based on the annual business goals approved by the Board of Directors, we conductquarterly and annual performance appraisals on all employees based on key performanceindicators (“KPIs”) and develop corresponding bonus and commission distribution standards.Focused on employees’ performance at work, these appraisals serve as objective bases forawarding employees performance-based bonuses, adjusting salaries, determining promotionsor demotions, recognizing annual outstanding employees, and making job assignments.
Diversified Benefits SystemCategory
?B?a?s?i?c? ?b?e?n?e???t?sAll employees
All employees
Eligible employees
Pension fund, medical insurance, work-related injury insurance, unemploymentinsurance, maternity insurance, and housingprovident fund
Rental subsidies, position subsidies, BestNew Product Award, rewards for outstandingemployees, disability subsidies, andbonuses for invention patents,etc
Holidays, birthday celebrations, high-temperature subsidies, night shift?d?i-?e?r?e?n?t?i?a?l?s?,? ?b?e?n?e???t?s? ?f?o?r? ?f?e?m?a?l?e? ?e?m?p?l?o?y?e?e?s?,??t?e?a?m?-?b?u?i?l?d?i?n?g? ?a?c?t?i?v?i?t?i?e?s?,? ?m?e?a?l? ?b?e?n?e???t?s?,?health check-ups, and travel,etc?C?a?r?i?n?g? ?b?e?n?e???t?s
?S?p?e?c?i?a?l? ?b?e?n?e???t?s
ItemTarget Audience
4 Uphold a People-oriented Policy to Jointly Build a Better Society
2023 Environmental, Social and Governance Report
As to social security, we proactively implement various benefits policies to safeguardemployees’ statutory rights and interests. Specifically, we ensure the full application andcontribution of social insurance, including the pension fund, medical insurance, and work-related injury insurance, as well as the housing provident fund, for all employees. We also?p?r?o?v?i?d?e? ?a? ?v?a?r?i?e?t?y? ?o?f? ?b?e?n?e???t?s? ?s?u?c?h? ?a?s? ?p?o?s?i?t?i?o?n? ?s?u?b?s?i?d?i?e?s?,? ?r?e?n?t?a?l? ?s?u?b?s?i?d?i?e?s?,? ?h?i?g?h?-?t?e?m?p?e?r?a?t?u?r?e?subsidies, as well as legally mandated leave, including annual leave, marriage leave, sick?l?e?a?v?e?,? ?a?n?d? ?p?a?r?e?n?t?a?l? ?l?e?a?v?e?.? ?T?h?e?s?e? ?e?n?s?u?r?e? ?o?u?r? ?e?m?p?l?o?y?e?e?s? ?c?a?n? ?e?n?j?o?y? ?d?i?v?e?r?s?i???e?d? ?b?e?n?e???t?s?.? ?D?u?r?i?n?g??f?e?s?t?i?v?a?l?s? ?s?u?c?h? ?a?s? ?t?h?e? ?C?h?i?n?e?s?e? ?N?e?w? ?Y?e?a?r?,? ?D?r?a?g?o?n? ?B?o?a?t? ?F?e?s?t?i?v?a?l?,? ?L?a?b?o?r? ?D?a?y?,? ?M?i?d?-?A?u?t?u?m?n??F?e?s?t?i?v?a?l? ?a?n?d? ?N?a?t?i?o?n?a?l? ?D?a?y? ?a?n?d? ?o?n? ?e?m?p?l?o?y?e?e?s?’? ?b?i?r?t?h?d?a?y?s?,? ?w?e? ?o-?e?r? ?s?p?e?c?i?a?l? ?g?i?f?t?s? ?a?n?d? ?b?e?n?e???t?s? ?t?o?our employees.
?W?e? ?s?t?r?i?c?t?l?y? ?r?e?g?u?l?a?t?e? ?p?e?r?s?o?n?n?e?l? ?a?l?l?o?c?a?t?i?o?n? ?a?n?d? ?c?o?n?t?i?n?u?o?u?s?l?y? ?i?m?p?r?o?v?e? ?r?e?c?r?u?i?t?m?e?n?t? ?e-?c?i?e?n?c?y?.?Our recruitment process complies with the principles of “recruiting based on needand ensuring all hires are tested; recruiting based on plans and matching roles withprofessional expertise; selecting best candidates while maintaining fairness and equality;?p?r?i?o?r?i?t?i?z?i?n?g? ?i?n?t?e?r?n?a?l? ?p?e?r?s?o?n?n?e?l? ?t?o? ?o?p?t?i?m?i?z?e? ?r?e?s?o?u?r?c?e? ?e-?c?i?e?n?c?y?”?.? ?W?e? ?s?t?r?i?c?t?l?y? ?c?o?n?t?r?o?l? ?t?h?e? ?e?n?t?r?y?of hires based on our development requirements and labor plans, select high-caliber talent,maintain high recruitment standards, and make full use of our internal talent pool.In terms of prevention of child labor and forced labor, we abide by laws and regulationssuch as the Law of the People’s Republic of China on Protection of Minors and theProvisions on Prohibition of Child Labour. In case of any breach of required proceduresor inadequate control during the recruitment, we will hold relevant units and personnelaccountable to prevent any incidents involving child labor or forced labor.With respect to the protection of women and persons with disabilities, we adhere to theLaw of the People’s Republic of China on the Protection of Rights and Interests of Womenand the Law of the People’s Republic of China on Protection of Disabled Persons. Duringrecruitment, promotion, and other decision-making processes, we strive to ensure fairness,equality, and transparency and oppose any form of discrimination based on race, color,?s?o?c?i?a?l? ?c?l?a?s?s?,? ?n?a?t?i?o?n?a?l?i?t?y?,? ?r?e?l?i?g?i?o?u?s? ?a-?l?i?a?t?i?o?n?,? ?d?i?s?a?b?i?l?i?t?y?,? ?p?r?e?g?n?a?n?c?y?,? ?g?e?n?d?e?r?,? ?s?e?x?u?a?l? ?o?r?i?e?n?t?a?t?i?o?n?,?ethnicity, union membership, political affiliation, age, or marital status. We also explicitly?p?r?o?h?i?b?i?t? ?s?e?x?u?a?l? ?h?a?r?a?s?s?m?e?n?t? ?a?n?d? ?a?n?y? ?f?o?r?m? ?o?f? ?m?i?s?c?o?n?d?u?c?t?.? ?O?u?r? ?g?o?a?l? ?i?s? ?t?o? ???r?m?l?y? ?s?a?f?e?g?u?a?r?d? ?t?h?e?dignity and safety of every employee and create a harmonious and inclusive workplace.
| 男员工数量 267女员工数量 187 |
| 454 |
| 员工总数 |
Total number ofemployees
By function
| Prodution | Sales | Technical | Finacial | Adminstrative | ||||||||
By length of service
| 15 years and above | 10 to 15 years | 5 to 10 years | 3 to 5 years | 1 to 3 years | Under 1 year | ||||||||||
By age
| ??3?0? ?y?e?a?r?s? ?o?l?d | 31 to 50 years old | ??5?1? ?y?e?a?r?s? ?o?l?d | ||||
By region
| Chinese mainland | Hong Kong Macao, Taiwan and overseas | ||
By education attainment
| ?P?o?s?t?g?r?a?d?u?a?t?e? ?d?e?g?r?e?e? ?a?n?d? ?a?b?o?v?e | Bachelor's degree | Junior college degree | Other | ||||
| ?M?a?l?e | ?F?e?m?a?l?e |
2023 Environmental, Social and Governance Report4 Uphold a People-oriented Policy to Jointly Build a Better Society
We strictly comply with relevant laws and regulations such as the Law of the People’sRepublic of China on Prevention and Control of Occupational Diseases, the Law of thePeople’s Republic of China on Work Safety, and the Provisions on the Administration ofOccupational Health at Workplaces, and follow the safety management guidelines of “safetyfirst and prevention as a priority; performing responsibilities to ensure safety; complyingwith laws and regulations and enhancing management; and improving the environment toprotect health”. We establish and implement the Emergency Preparedness and ResponseProcedures, the Response and Control Procedures for Risks and Opportunities, and the?I?d?e?n?t?i???c?a?t?i?o?n? ?a?n?d? ?A?s?s?e?s?s?m?e?n?t? ?P?r?o?c?e?d?u?r?e?s? ?f?o?r? ?E?n?v?i?r?o?n?m?e?n?t?a?l? ?F?a?c?t?o?r?s?.? ?T?h?e?s?e? ?p?o?l?i?c?i?e?s? ?h?e?l?p? ?u?s?identify and assess potential risks and hazards in production and guide us to continuously?r?e???n?e? ?o?u?r? ?s?a?f?e?t?y? ?r?i?s?k? ?i?d?e?n?t?i???c?a?t?i?o?n? ?a?n?d? ?c?o?n?t?r?o?l? ?m?e?c?h?a?n?i?s?m?s?.? ?T?h?e? ?u?l?t?i?m?a?t?e? ?g?o?a?l? ?i?s? ?t?o? ?m?i?n?i?m?i?z?e?safety risks and protect employees’ safety.We are vigorously driving the certification of ISO 45001:2018 Occupational health andsafety management systems. Meanwhile, we have developed emergency response plans?f?o?r? ?a? ?r?a?n?g?e? ?o?f? ?e?m?e?r?g?e?n?c?y? ?s?c?e?n?a?r?i?o?s?,? ?s?u?c?h? ?a?s? ???r?e?s?,? ?w?o?r?k?-?r?e?l?a?t?e?d? ?i?n?j?u?r?i?e?s?,? ?a?n?d? ?m?a?n?u?f?a?c?t?u?r?i?n?g?hazards. We also organize training and drills, and summarize and assess the drill results.We aim to enhance, as much as possible, employees’ safety awareness and capabilitiesof handling safety emergencies, thereby protecting their safety. In 2023, the Company?c?o?n?d?u?c?t?e?d? ???v?e? ?e?m?e?r?g?e?n?c?y? ?t?r?a?i?n?i?n?g? ?s?e?s?s?i?o?n?s? ?a?n?d? ?d?r?i?l?l?s?.
We recruit talent who demonstrates both integrity and professional expertise and view talentcultivation and development as a core competitive edge and a driving force of the Company’sfuture growth. To foster the continuous growth of employees, we have established a soundemployee training system and developed guidelines such as the Operational Guide forTraining Management and the Employee Promotion Management System. Through a variety?o?f? ??e?x?i?b?l?e? ?t?r?a?i?n?i?n?g? ?c?o?u?r?s?e?s?,? ?w?e? ?p?r?o?v?i?d?e? ?s?t?r?u?c?t?u?r?e?d? ?s?u?p?p?o?r?t? ?t?o? ?c?r?e?a?t?e? ?m?o?r?e? ?c?a?r?e?e?r? ?d?e?v?e?l?o?p?m?e?n?t?opportunities for our employees.We lay great emphasis on the training of high-caliber talent and provide essential training toall employees to equip them with the skills, service quality awareness, and environmentalawareness commensurate with their roles. This aims to ensure that our employees meet therequirements for management and customer service. Our Human Resources Departmentcontinuously refines our internal training system and manages all training-related matterswithin the Company. While meeting employees’ learning needs for enhancing professionalexpertise and fundamental workplace skills, we encourage self-directed learning. Thissupports both the personal growth of our employees and the sustainable development of theCompany.?i?n?c?l?u?d?i?n?g? ?m?a?n?a?g?e?r?i?a?l? ?s?t?a-?,? ?t?e?c?h?n?i?c?a?l? ?s?t?a-?,? ?a?n?d? ?p?r?o?d?u?c?t?i?o?n? ?s?t?a-?,? ?b?a?s?e?d? ?o?n? ?m?a?n?a?g?e?m?e?n?t? ?l?e?v?e?l?s?,?business functions, and educational attainment. Meanwhile, we combine internal and externalresources, such as internal trainers, external professional trainers, external training programs,and outward bound programs for teams, to improve employees’ overall competency andprovide robust talent support for implementing the Company’s development strategy.
4.3 Care for Employees' Development
Training of ETEK on theUse of Automated External?D?e???b?r?i?l?l?a?t?o?r?s? ?(?“?A?E?D?s?”?)
Annual Fire Drill of ETEK
Training ParticipantsTraining Content?M?a?n?a?g?e?r?i?a?l? ?s?t?a-
Modern business management theories, organizationaldecision-making skills, and strategic management of the
Company and its systemsTechnical professionals
Specialized techniques, fundamental theories, and business
practiceInternal auditors ofsystems
System-related knowledge, auditing skills, and system-related
laws and regulationsDesign, process,production, and quality?c?o?n?t?r?o?l? ?(?“?Q?C?”?)? ?s?t?a-
Refresher training on professional knowledge required for
?i?m?p?l?e?m?e?n?t?i?n?g? ?c?e?r?t?i???c?a?t?i?o?n? ?s?y?s?t?e?m?s?H?R? ?a?n?d? ???n?a?n?c?i?a?l? ?s?t?a-?H?R? ?a?n?d? ???n?a?n?c?i?a?l? ?k?n?o?w?l?e?d?g?e? ?c?o?m?m?e?n?s?u?r?a?t?e? ?w?i?t?h? ?t?h?e?i?r? ?r?o?l?e?s
2023 Environmental, Social and Governance Report4 Uphold a People-oriented Policy to Jointly Build a Better Society
4.2
Care for Employees' Health
Case
Case
During the Reporting Period, ETEK implemented a range of training activities for employees?a?t? ?d?i-?e?r?e?n?t? ?l?e?v?e?l?s?,? ?t?o?t?a?l?i?n?g? ?1?7?5? ?a?t?t?e?n?d?a?n?c?e?s?,? ?e-?e?c?t?i?v?e?l?y? ?i?m?p?r?o?v?i?n?g? ?e?m?p?l?o?y?e?e?s?’? ?p?r?o?f?e?s?s?i?o?n?a?l?capabilities and supporting talent development.
In June 2023, we organized a hike along the Zhuangyuan Gudao to enhance team cohesionand guide the Company’s development through a positive and enterprising spirit. Whileenjoying the invigorating experience of hiking, feeling the cool breeze, enhancing physique,and embracing nature, the hike allowed employees to explore nature on foot and practice thephilosophy of green development through concrete actions.
ETEK organized a “QualityLecture” quality training coursefor middle and senior executives,totaling 51 attendances.
R&D training has been conducted. Duringthe Reporting Period, the Training Centerof the R&D Department arranged for
employees to participate in talent training.It also organized
internal trainingsessions, totaling
attendances.Two advanced workshops aimedat enhancing sales skills wereheld, totaling
attendances.
ETEK organized specialized training sessions such as theadvanced HR workshop and training on the priorities in taxaudits and response strategies, totaling
attendances.
training sessions were organized,totaling
attendances.
Training for middleand senior executives
Training for technicalprofessionals
New hire orientation
4.4 Enrich Employees’ Lives
Sales training: Specialized training:
2023 Environmental, Social and Governance Report
Outdoor hike to enhance physique
4 Uphold a People-oriented Policy to Jointly Build a Better Society
ETEK is committed to its corporate social responsibility. We organize public welfare eventsevery year and unite all employees to act and build a better society.
Floor CurlingTeam Building in Jiuhua Mountain
Team Participation in a Basketball GameBadminton Club
HikingBirthday Celebration
SEU 121st Anniversary and “SEU for Good” Donation Appreciation & Awarding Ceremony
Diverse activities
Supporting education
To encourage work-life balance among employees and meet their increasing spiritual andcultural needs, ETEK has proactively established cultural and sports clubs and continuouslyorganized diverse cultural and sports activities such as regular sports and other competitiveevents for employees. We also encourage employees to participate in cultural and sportsevents launched by the labor union and government organizations. We aim to continuouslyenhance employees’ happiness and sense of belonging, as well as the Company’s unity andcohesion.
4.5 Dedication to Public Welfare
Case
Upholding SEU’s motto, Strive for Perfection, in 2022, ETEK donated RMB1.2 millionto SEU to establish the ETEK Award Fund. Through this fund, ETEK supports 14undergraduates and 20 postgraduates at SEU every year to pursue their dreams. On June6, 2023, we attended at invitation the SEU 121st Anniversary and “SEU for Good” DonationAppreciation & Awarding Ceremony.
We actively drive educational progress by strengthening exchanges and cooperationwith universities. We aim to support the training of high-caliber talent and inspire greatercreativity through concrete actions.
Establishing the ETEK Award Fund at SoutheastUniversity (“SEU”) to promote education for good
2023 Environmental, Social and Governance Report4 Uphold a People-oriented Policy to Jointly Build a Better Society
Charitable contributionSince our inception, we have always prioritized both business development and socialresponsibility performance. In response to national strategies such as rural revitalization,we lead by example in the industry, playing an active part in public welfare events andcontributing greater value to society. In 2023, we continued our public welfare efforts bypromoting social donations, supporting education, and participating in public welfare events.Our goal is to give back to society and spread warmth and love.
In December 2023, ETEK donated a total of RMB1 million to the Xidian UniversityEducation Foundation and the University of Electronic Science and Technology ofChina Education Foundation to bolster educational progress.
Additionally, we actively participate in charitable events organized by local communities.In August 2023, ETEK donated RMB40,000 to the Red Cross Society of Xinwu Districtin Wuxi. This demonstrates our commitment to giving back to society and fosteringharmony and joint development with local communities.
2023 Environmental, Social and Governance Report4 Uphold a People-oriented Policy to Jointly Build a Better Society
Terminology and DefinitionsReport Index Table
AbbreviationDefinitionsETEK, Company, the Company,and we/our/us
ETEK and its subsidiariesSemiconductorWuxi Semiconductor Technology Co., Ltd.TWS earphonesTrue Wireless Stereo earphonesFablessA fabrication facility-free and design-focused modelAnalog chip
An integrated circuit composed of capacitors,
resistors, and transistors to process analog signalsWafer
A silicon wafer used for the fabrication of silicon
semiconductor integrated circuits, serving as a
substrate for the chipPackaging
Packaging the chip in a protective casing for ease
of installation and connectionICAn integrated circuit or a chipOVP
Over voltage protection, a type of protective chip. It
integrates a transient suppression module, a switch
module, and a detection module and can quickly
shut off or suppress direct voltage and transient
voltage in a circuitOCPOver current protectionTVS
Transient voltage suppressor, a type of protective
chip. It integrates a variety of components, such
as Zener diodes, triodes, MOSFETs, and resistive
elements, and can suppress surges, electrostatic
discharges, and other transient voltages in a circuite-fuseAn electronic fuseLDO
Low dropout regulator, a type of power conversion
chipDC/DCDC-DC converter, a type of power conversion chipPMICPower management ICChargerCharging managementLoad SwitchLoad switchLEDLight emitting diodeLCDLiquid crystal displayMotorMotorESDElectro-static dischargeOPAOperational amplifierLogicA logic integrated circuitSensorSensorAnalog SwitchAnalog switch
Contents
Guidelines No. 14 of ShanghaiStock Exchange for Self-regulation of Listed Companies -Sustainability Report (Trial)About This ReportChapter I General ProvisionsChairman’s MessageChapter I General ProvisionsAbout ETEKChapter I General Provisions
1. Optimize
Management toPromote High-qualityDevelopment
1.1 Corporate
governance
Chapter V CorporateGovernance Information Relatedto Sustainable DevelopmentDisclosureSection 1 Sustainability-relatedGovernance MechanismsSection 2 Commercial Behaviors
1.2 Bottom line
for stabilizing andcontrolling risks
1.3 Sustainable
developmentmanagement
2. Self-independent
Innovation to PromoteIndustry Development
2.1 Innovative R&D
system
Chapter IV Social DisclosureSection 2 Innovation-drivenDevelopment and Ethics ofScience and TechnologySection 3 Suppliers and Clients
2.2 Supply chain
management
2.3 Refined customer
services
2.4 Industry
development promotion
3. Low-carbon
Development,Responding to CarbonPeaking and Carbon
Neutrality Goals
3.1 Environmental
management system
Chapter III EnvironmentalDisclosureSection 1 Climate ChangeResponseSection 2 Pollution Control andEcosystem ProtectionSection 3 Resource Utilizationand Circular Economy
3.2 Climate change
response
3.3 Emission
management
3.4 Green office
4. Uphold a People-
oriented Policy toJointly Build a Better
Society
4.1 Protection of
employees’ rights andinterests
Chapter IV Social DisclosureSection 1 Rural Revitalizationand Social ContributionsSection 4 Employees
4.2 Care for employee
health
4.3 Care for employee
development
4.4 Enrich employees’
lives
4.5 Dedication to public
welfare
?Y?o?u?r? ?I?n?f?o?r?m?a?t?i?o?nName:
Profession:
Post:
Email:
1. How would you rate the overall quality of this Report?
??? ?E?x?c?e?l?l?e?n?t??? ?G?o?o?d??? ?A?v?e?r?a?g?e??? ?P?o?o?r??? ?V?e?r?y? ?P?o?o?r
2. How effectively do you think this Report has reflected ETEK’s significant impact on the
environment, society, and governance???? ?E?x?c?e?l?l?e?n?t??? ?G?o?o?d??? ?A?v?e?r?a?g?e??? ?P?o?o?r??? ?V?e?r?y? ?P?o?o?r
3. How would you rate ETEK’s performance in stakeholder communication?
??? ?E?x?c?e?l?l?e?n?t??? ?G?o?o?d??? ?A?v?e?r?a?g?e??? ?P?o?o?r??? ?V?e?r?y? ?P?o?o?r
Dear Reader,?T?h?a?n?k? ?y?o?u? ?f?o?r? ?r?e?a?d?i?n?g? ?t?h?i?s? ?R?e?p?o?r?t?.? ?T?h?i?s? ?i?s? ?t?h?e? ???r?s?t? ?E?S?G? ?R?e?p?o?r?t? ?r?e?l?e?a?s?e?d? ?b?y? ?E?T?E?K?.To enhance the communication value of this Report and effectively advance our ESG?m?a?n?a?g?e?m?e?n?t? ?a?n?d? ?p?r?a?c?t?i?c?e?s?,? ?w?e? ?s?i?n?c?e?r?e?l?y? ?i?n?v?i?t?e? ?y?o?u? ?t?o? ?c?o?m?p?l?e?t?e? ?t?h?i?s? ?f?e?e?d?b?a?c?k? ?f?o?r?m?.? ?Y?o?u?r?invaluable feedback will help us continuously improve.
4. How would you rate the authenticity, accuracy, and usefulness of the information and data
disclosed in this Report???? ?E?x?c?e?l?l?e?n?t??? ?G?o?o?d??? ?A?v?e?r?a?g?e??? ?P?o?o?r??? ?V?e?r?y? ?P?o?o?r
5. How would you rate the overall structure and readability of this Report, including its content
design and layout???? ?E?x?c?e?l?l?e?n?t??? ?G?o?o?d??? ?A?v?e?r?a?g?e??? ?P?o?o?r??? ?V?e?r?y? ?P?o?o?r
Open-ended questions:
Which section of this Report interests you the most?
Which ESG information in this Report is the most helpful to you?
Do you have any suggestions or feedback for ETEK’s future ESG reports?
Feedback Form
Wuxi ETEK Microelectronics Co., Ltd.Address: 8 Xinhui Ring Road, Xinwu District, Wuxi City, Jiangsu ProvinceTel.: 0510-85210118Email: marketing@etek.com.cnWebsite: https://www.etek.com.cn