SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-
being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
Feedback
andSuggestionsFull Lifecycle
Service
CONTENTS
CONTENTS
Supplier ManagementGreen and Sustainable Supply ChainBuilding a Stable and Secure Supply Chain
Supply Chain Responsi-bility Management
Product QualityCustomer ServiceCustomer Privacy and Security
Full LifecycleService
Sustainable Development ManagementCorporate GovernanceRisk Control and ComplianceBusiness Ethics
Sustainable Compli-ance Governance
Innovation-led GrowthDigital-Intelligent Ecosystem ProductsSmart Future Factory
Digital-Intelligent New Quality Production
Environmental Compliance ManagementResource ManagementWaste DisposalPollutant EmissionsChemical Management
Building a Green NewEcosystem
Addressing Climate ChangeEnergy ManagementClean Technology Opportunities
Climate Change andOpportunities
About This Report01Message from the Chairman03
About LAZZEN05Honors in 202409
Employee ManagementWork Safety and Occupational Health
Uniting Hearts Towarda Shared Vision
Industry CollaborationCommunity Welfare
Collective Guardianshipof Community Well-being
Key Performance Table116Indicator Index121Feedback and Suggestions125
Independent Assurance Statement113
0102
About ThisReport
Message fromthe Chairman
Honors in2024
Digital-Intelligent
New QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformance
Table
Indicator
Index
Feedback
andSuggestionsAboutLAZZEN
Full LifecycleService
Reporting PrinciplesReport DescriptionThis report is the third ESG report issued by Shanghai Liangxin Electrical Co., Ltd. (hereinafter referred to as "LAZZEN", "the Com-pany", or "We") for stakeholders. It provides a detailed disclosure of the Company's practices and performance in the areas of en-vironmental, social and governance for the year 2024, aiming to systematically respond to the expectations and requirements ofstakeholders.
Data SourcesThe ESG data and information in this report come from the original records of LAZZEN and its subsidiaries. The currency unit for allamounts mentioned is RMB. In case of any discrepancies with the ?nancial report, the ?nancial report shall prevail.
Reporting Scope and Boundaries
The reporting period spans from January 1, 2024, to December 31, 2024 (hereinafter referred to as the "Reporting Period"), cover-ing the performance in ful?lling environmental, social, and governance responsibilities in 2024. For the sake of continuity and com-parability, certain content appropriately traces back to previous years.The scope of disclosure is consistent with the ?nancial information disclosed in the 2024 Annual Report.Data ExplanationThe ?nancial data in this report originates from the audited ?nancial statements, while other data is derived from the internal doc-umentation and statistical summaries. Unless otherwise stated, all monetary ?gures are denominated in RMB. This report containsno false records, misleading statements, or major omissions. The Company takes individual and joint responsibility for the authen-ticity, accuracy, and completeness of its content.Compilation Guidelines?●2030 United Nations Sustainable Development Goals (SDGs)?●Global Sustainability Standards Board (GSSB)Sustainability Reporting Standards (GRI Standards 2021 Edition)
?●Chinese Academy of Social Sciences China CSR Report Preparation Guide (CASS-ESG 6.0)?●China National StandardGuidance on Social Responsibility Reporting (GB/T 36001-2015)?●International Organization for StandardizationISO 26000: Social Responsibility Guidance (2010)?●Shenzhen Stock ExchangeSelf-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—SustainabilityReport (For Trial Implementation)?●Shenzhen Stock ExchangeSelf-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange – SustainabilityReport Compilation
Report Release and Contact Information
The electronic version of this report
can be viewed or downloaded from the
official website of Shanghai Liangxin
Electrical Co., Ltd.(www.sh-liangxin.
com). The Company will continuously
improve the disclosure quality and ESG
governance. For any questions or sug-
gestions, please contact via the follow-
ing channels:
Email: liangxin@sh-liangxin.comSupervision: audit@sh-liangxin.com
Timeliness
As an annual report, the reporting period is fromJanuary 1, 2024, to December 31, 2024. The report isprepared promptly after the end of the 2024 ?scal yearand released after reviewing of the Board of Directors,but not earlier than the release of the annual report.
Sustainability:
LAZZEN actively responds to sustainability trends,identifies stakeholders and key issues based on thecharacteristics of the electrical equipment industryand its operations, and engages in stakeholder com-munication. For details, please refer to section 6.1 onSustainable Development Management.AccuracyLAZZEN strives to ensure the accuracy of information.Quantitative data is based on actual production andoperations and contains no false records, misleadingstatements, or major omissions.
BalanceThe content reflects the LAZZEN's operations objec-tively, avoiding exaggeration or misleading descrip-tions, and fully discloses both positive and negativeinformation to maintain fairness and objectivity.
CompletenessThe data covers LAZZEN and its controlled entities,consistent with the scope of the annual report, andfully discloses relevant information.
Veri?abilityThe cases, management systems, and quantitativedata come from actual operations and are traceable.ClarityCharts, data references, and technical terms are ex-plained clearly, with sources cited where necessary.
Quanti?cationQuantitative data is disclosed continuously and withimproved reliability to demonstrate the developmenttrend of ESG management.
Shanghai Liangxin Electric Co., Ltd.
Phone: +86-21-68586699Fax: +86-21-23025796Address: No. 2000, Shenjiang SouthRoad, Pudong New Area, Shanghai
About This Report
0304
About ThisReport
Message fromthe Chairman
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
SustainableComplianceGovernance
Uniting HeartsToward a Shared
Vision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformance
Table
Indicator
Index
FeedbackandSuggestionsAboutLAZZEN
Full LifecycleService
Dear colleagues, partners, and members ofthe community:
In 2024, under the strategic guidance of"Dual Intelligence, One Innovation, DualTransformation, One Value Chain", LAZZENremains committed to the mission and vi-sion of "Achieving Excellence in Low-VoltageElectrical Appliances and Building a SmartElectrical Zero-Carbon New Ecosystem". Withunwavering determination, all LAZZEN em-ployees strive to drive corporate high-qualitydevelopment through innovation-led growth,green-oriented leadership, and responsibili-ty-driven actions.
With a focus on high R&D investment and continuous innovation, LAZ-ZEN continuously increases R&D investment, focusing on intelligentpower distribution, smart living, and new energy fields to become aleader in smart electrical solutions. During the reporting period, wewere honored with the Second Prize of National Science and Tech-nology Progress Award for our exceptional research achievements.By strengthening the transformation of technological achievements,improving R&D e?ciency and quality, and optimizing the intellectualproperty management system, we have built a leading research team,collaborated with partners to establish a comprehensive cooperationmechanism, shared frontier technology insights, and incubated inno-vative ideas, thereby creating a smart electrical ecosystem.
Innovation-led Growth of New Quality Productivity
LAZZEN leverages industrial internet data, simulation technology, anddigital twin technology to achieve full transparency, measurability,and traceability in production processes. The LAZZEN Hangzhou BaySuper Factory was recognized as a "Future Factory of Zhejiang Prov-ince" and passed the Intelligent Manufacturing Capability MaturityCerti?cation. We promote digital and intelligent transformation in fourareas: smart and intelligent factories, production, logistics, and agilesupply chains, thereby accelerating high-quality development.
Quality Improvement and Efficiency Enhancement forBuilding a Smart Future Factory
LAZZEN actively responds to the carbon peaking and carbon neutralitygoals, deeply integrating ESG concepts with corporate development,and has positioned green and low-carbon initiatives as long-term de-velopment goals. We actively conduct carbon audits and inspections,have built a smart energy management platform, improved energy ef-?ciency, and reduced carbon emissions. During the reporting period,the consumption of clean energy reached 4,705.14MWh. Additionally,we incorporate green ecological concepts into product design, seizeopportunities in new energy products, strive to build a clean, low-car-bon, safe, and e?cient future energy system, and advance zero-car-bon factory construction to contribute to the national carbon peakingand carbon neutrality strategy.
Green and Low-Carbon Sustainable Development
LAZZEN builds a green and sustainable supply chainand conducts social and environmental impact assess-ments of suppliers. Upholding the quality philosophyof "Customer-Centered, Quality as Dignity", we havecompleted multiple management system certi?cationupdates, with 100% coverage of the quality manage-ment system. We are committed to improving custom-er service quality and ensuring that customer feedbackis handled in a closed-loop manner. In 2024, we con-tinuously launched the "Pursuing Knowledge Togetherfor a Shared Future" series of activities, partnering withthe industry to explore frontier technologies and de-velopment trends.
Responsibility and Full Lifecycle Manage-ment
LAZZEN strictly complies with national laws and regu-lations, protects employees' legal rights, continuouslyoptimizes the compensation and benefits system, ex-pands communication channels for employee participa-tion in decision-making, and improves promotion andperformance evaluation processes to foster employees'professional growth. Additionally, LAZZEN actively par-ticipates in social welfare projects, supports rural revital-ization, focuses on education, and provides assistanceto disadvantaged groups.Looking ahead, LAZZEN will always be guided by cus-tomer needs, continuously improving the quality of ourproducts and services, driven by technological innova-tion, we will tackle "bottleneck" challenges in key ?elds,and adhering to the principles of sustainable develop-ment to build a green and low-carbon industrial ecosys-tem. We will enhance communication and cooperationwith stakeholders, explore new paths for sustainabledevelopment, and strive for the construction of a smartelectrical zero-carbon ecosystem.
From Accumulated Efforts to Shared Pros-perity
Chairman: Silong RenShanghai Liangxin Electrical Co., Ltd.
Message from the Chairman
0506
About ThisReport
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-
being
Independent
AssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestionsFull Lifecycle
Service
Development Strategy
To achieve excellence in low-voltage apparatus andcollaboratively build a new zero-carbon ecosystem ofsmart electrical solutions.
Business PresenceLAZZEN's core business includes terminal electrical appliances, distribution electrical appliances, control electrical appliances,intelligent distribution, and smart living. The service network covers over 140 cities nationwide and more than 30 countries andregions globally, providing professional and e?cient services to customers worldwide through an end-to-end organization and sys-tem.
Focus on low-voltage apparatusand implement a target concen-tration strategy.
Become an expert in smartapparatus solutions.Excel in intelligent power distri-bution, smart homes, and newenergy electrical technologies.
About LAZZEN
Founded in 1999, LAZZEN positions itself as an"Expert in Intelligent Electrical Solutions", focusingon the research, production, sales, and service ofterminal electrical appliances, distribution electricalappliances, control electrical appliances, intelligentdistribution, and smart living. LAZZEN's productsand solutions are widely applied across various sce-narios, from power generation and transmission toend-user consumption, covering over 30 sub-indus-tries, including intelligent computing centers, newenergy, infrastructure, rail transit, smart buildings,power grids, and industrial control.As a listed company on the Shenzhen Stock Ex-change (Stock Code: 002706.SZ), LAZZEN achieveda revenue of RMB 42.37 billion in 2024. We adhere tothe core value of "Pursuit of Customer Success", driv-ing product development through customer needs.The R&D center has earned recognition as a "Nation-al Enterprise Technology Center". We've establisheda "Postdoctoral Research Workstation". Moreover,our laboratory has been granted dual certificationfrom CNAS (China National Accreditation Service)and UL (Underwriters Laboratories) in the U.S.
Company Pro?le
Mission and Vision
Respect the law, seek truth from facts, be honest andtrustworthy, grow by self-reflection, find the rootcause, constantly pursue excellence, and maintaindiligence.
Pursuit of truth and introspection
Pursuit of customer successRemain customer-centric, consistently meet custom-er demands, help customers succeed, and realizecommon development for our customers, our com-pany, our team, and individuals.Responsibility and ambitionBe ambitious, innovative, and willing to assume andembrace responsibility, and become an industryleader trusted by customers.
Openness and collaborationBe inclusive to different cultures, listen to differentopinions and suggestions, embrace changes, recruittalents, make concerted efforts towards the samegoal, and pursue overall optimal results.
Core Values
0708
About This
Report
Message fromthe Chairman
Honors in2024
Digital-Intelligent
New QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
Independent
AssuranceStatement
KeyPerformanceTable
Indicator
Index
Feedback
andSuggestionsAboutLAZZEN
Full LifecycleService
Key Events ofLAZZEN
2024
LAZZEN Hangzhou Bay Super Factory awarded ZhejiangProvince Future Factory recognition
LAZZEN and Sineng inaugurated a joint laboratory atthe Shanghai headquarters, exploring future new energytechnologyLAZZEN hosted the "Converging Power, Advancing Miles"Global Partner Conference, recognizing 41 outstandingsuppliers
LAZZEN held the 2024 Intelligent Building SustainableDevelopment Conference and Human Settlements Tech-nology & Innovation Forum, launched the LAZZEN MagicCube Digital Home Integration Box, leading new stand-ards for smart living
LAZZEN Hangzhou BaySuper Factory certi?ed forIntelligent ManufacturingCapability Maturity
LAZZEN signed a strategic cooperation agreement withBureau Veritas to co-create a zero-carbon intelligent elec-trical ecosystemXinhua News Agency interviewed the Hangzhou Bay Su-per Factory, analyzing digitalization and the dual-carbonstrategy from three perspectives: zero-carbon park, smartpark, and intelligent manufacturing
The latest products passed ULcerti?cation in the U.S., Austral-ian standards certi?cation, andKorea's KC certi?cation, demon-strating that the product qualityand safety performance havereceived high recognition
Approved to establish a National Postdoctoral ResearchWorkstation to conduct in-depth research in areas suchas source-network-load-storage integration and low-car-bon energy-saving
LAZZEN awarded 2023 Na-tional Science and Technol-ogy Progress Award (SecondPrize)
About This
Report
Message fromthe Chairman
AboutLAZZEN
0910
About ThisReport
Message fromthe Chairman
Honors in
2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
Indicator
Index
Feedback
andSuggestionsAboutLAZZEN
Full LifecycleService
LAZZEN2023 National Science and Tech-nology Progress Award (Second
Prize)
Central Committee of the Commu-nist Party of China, State Council of
the People's Republic of China
National Postdoctoral Research
Station (National Level)
Shanghai Talent Work Bureau
2023 Outstanding ContributionAward for Private Enterprises inPudong New AreaPeople's Government of Pudong
New Area, Shanghai
Gaohang Town OutstandingContribution AwardGaohang Town Committee of theCommunist Party of China, People'sGovernment of Gaohang Town,Pudong New Area
2024 Top 100 Shanghai Manufacturing Enter-
prisesShanghai Enterprise Association, ShanghaiEconomic Association, Shanghai Entrepreneur
Association, Jiefang Daily
Shanghai High-Tech Achievement Transfor-mation Project Certi?cate - Residual CurrentOperated Circuit Breaker (NDB2LM-63, ND-
B2LM-40)Shanghai Science and Technology Commission
LAZZEN
8th International Energy Storage InnovationCompetition 2024 Excellent Project in EnergyStorage Safety Track - Application of Innova-tive Energy Storage Isolation Switch Product
International Energy Storage Technology andIndustry Alliance, Zhongguancun Energy Storage
Industry Technology Alliance
Best Carbon Coordination Ex-
ploration Award
Bureau Veritas Group
Most Popular Electrical Supplier
China Architectural SocietyBuilding Electrical Branch
Best New Supplier
Goldwind
Future Factory of Zhejiang
Province
Zhejiang Provincial Department
of Economy and Information
Technology
Software Enterprise Certi?cate
China Software Industry Association
Best Cooperation Award
Hopewind
2021-2024 China Best Managed
Companies
Deloitte China Best Managed
Companies
China Engineering Survey andDesign Industry Building Electri-cal Competitiveness Brand - LowVoltage Cabinet and Components
Intelligent Building Electrical
TechnologyMagazine
LAZZEN HaiyanLAZZEN Shanghai
Liangyun Technology
Honors in 2024
2024 Top 100 Shanghai PrivateManufacturing EnterprisesShanghai Enterprise Association,Shanghai Entrepreneur Associa-tion, Jiefang Daily
2024 Outstanding Project Award for Shanghai Indus-try-Academia-Research Cooperation (NominationAward) -Key Technology R&D and Application of Intelli-gent Molded Case Circuit Breakers ProjectShanghai Technology Achievement Transformation Promo-tion Association, Shanghai Education Development Foun-dation, Shanghai Science and Technology Commission
2024 Top 100 Shanghai Private
EnterprisesShanghai Enterprise Association,Shanghai Entrepreneur Associa-
tion, Jiefang Daily
Digital-Intelligent NewQuality Production
LAZZEN focuses on high R&D investment and continuous innovation, center-ing on the "Dual Intelligence, One Innovation" strategy (Intelligent Power Dis-tribution, Smart Living, and New Energy). With a customer- centric approach,we respond swiftly to market demands by developing tailored products. Weprioritize talent development, building a world-class technical talent ladder,enhancing R&D efficiency and quality through the application of scientificachievements, and optimizing the intellectual property management system.Furthermore, we actively promote organizational innovation by establishingcomprehensive cooperation mechanisms with partners for sharing cut-ting-edge technologies and incubating innovative ideas, thereby creating anew smart electrical ecosystem.
Concept
LAZZEN has
invention patents applied to its core business operationsThe product quality PPM (Parts Per Million) at LAZZEN's Hangzhou Bay SuperFactory decreased by
15.3
%LAZZEN successfully completed
digital transformation projects
Key Performance
Supporting of the UN SDGs
?●
Innovation-ledGrowth
?●
Digital-IntelligentEcosystem Products
?●
Smart FutureFactoryOur Actions
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About This
Report
Message fromthe Chairman
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
SustainableComplianceGovernance
Uniting HeartsToward a Shared
Vision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
Feedback
andSuggestionsAboutLAZZEN
Full Lifecycle
Service
Innovation-led Growth
LAZZEN has established and optimized the internalTechnical Innovation Award Selection System, continuously improving thestructure of R&D teams and the incentive policies for scienti?c researchers, such as the Mozi Expert Allowance. We continuouslyenhance talent reserves by building an industry-academia-research cooperation system, strengthening postdoctoral researchstations, and setting up specialized groups and LAZZEN University training programs. Through the strategic management tools,we comprehensively evaluate new industry technologies, customer needs, and internal shortcomings to formulate targeted riskresponse measures. The well-established scienti?c research training system promotes stable development and governance opti-mization under the innovation-led growth strategy.
LAZZEN places great emphasis on scienti?c innovation, continuously re?ning research management and incentive mechanismswhile strengthening intellectual property protection. The Company consistently expands investment in R&D, builds a world-classR&D team, and actively promotes the transformation and application of scienti?c achievements, striving to provide exceptionalproducts to customers.
National Science and Technology Progress
Award
LAZZEN has formulated a three-year R&D strategic plan focusing on four strategic pillars: technological innovation, market ex-pansion, talent cultivation, and international cooperation. From 2025 to 2027, LAZZEN will concentrate on high-voltage producttechnology, high-breaking performance technology, technology reserves for overseas market requirements, solid-state technologyapplications, and intelligent distribution AI technology applications to strengthen R&D capabilities and technical expertise.
High BreakingPerformanceTechnology
TechnicalReserves forOverseas Mar-ket Require-ments
Solid-StateTechnologyApplicationHigh-VoltageProduct Tech-nology
?●Breakthrough in industry voltagelevels (DC2000+, AC3300V) with acost reduction trend?●Voltage upgrade expected to fullyexpand in the market within 1-2years?●
Inheritance of past technologicaltrends
?●Increasing performance requirements forhigh-voltage and high-current products?●Product safety and reliability?●Inheritance of past technological trends
?●High standards for overseasmarkets, such as UL standardsincluding electrical endurance,breaking capacity, and tempera-ture rise (UL077, UL98, UL489)?●Future product standardizationto establish a technical founda-tion for cost advantages
?●Application of solid-state product tech-nology in the low-voltage electrical ?eld?●Early-stage technical reserve planning forcutting-edge technology products in theindustry?●Innate digital-intelligent genes, enablingsmart applications. Power industry trans-formation and grid interconnection
AI TechnologyApplication
?●Enhancing product health predic-tion capabilities?●Integration of cross-industrytechnical expertise to empowernew technological advantages inlow-voltage electrical products
Arc Extinguishing KeyTechnologies?●Pure solid-state and hybrid sol-id-state technologies?●Low-cost permanent magnet arcextinguishing technology?●Multi-grid arc guiding technology?●Zero arc ?ash technology
Electromagnetic Drive KeyTechnologies?●Fast switching mechanism?●Adjustable low-ratio tripper
?●Permanent magnet mechanism
?●Compact tripper
Heat DissipationKey Technologies
?●High and Low Fre-quency BreakingTechnologies
Transmission KeyTechnologies
?●Remote and trip-ping technologies
01020304
Four Strategic Pillars of LAZZEN
Innovation-Driven Three-Year Development Strategy
R&D Management
Innovation-Driven Governance
Innovation-Driven Strategy
We have established the ITMT Integrated Technology Management Team, responsiblefor enhancing the competitiveness of the public and cutting-edge technologies. Byorganizing technology roadmap planning, technology investment decisions, projectinitiation, and evaluation, we strengthen product technology competitiveness andestablish product leadership. Assessment indicators are closely tied to the "DualIntelligence, One Innovation and Dual Transformation, One Value Chain" strategy,including analyzing future three-to-?ve-year technology roadmap, customer needs,competitor and patent analysis, frontier technology analysis, and producing accurateand forward-looking technical strategies and panoramic reports. Additionally, theevaluation includes the implementation rate, achievement rate, and transfer rateof the technology planning output projects to ensure smooth implementation andtimely completion, ultimately applying them to products.In 2024, LAZZEN achieved signi?cant scienti?c research results, including DC frame,intelligent molded case, high-voltage disconnect switch, Magic Link Power intelligentdistribution platform, NEA smart brand cabinet, load identi?cation, and load predic-tion. Joint R&D projects with customers also achieved signi?cant breakthroughs.
1516
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Message fromthe Chairman
Honors in
2024
Digital-Intelligent
New QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
Indicator
Index
FeedbackandSuggestionsAboutLAZZEN
Full LifecycleService
LAZZEN has comprehensively updated and optimized the incentive mechanism for scienti?c research projects to fully catalyzeemployees' innovation vitality and work enthusiasm. These incentives play a positive role in technological innovation, projectmanagement, cost control, and talent cultivation, driving the Company's sustainable development and laying a solid foundationfor steady progress.
Designed to reward teams or indi-viduals who achieve signi?cant tech-nological innovation breakthroughsduring product development, there-by accelerating product innovationcycle. Evaluation criteria include thenumber of technological innovationachievements, the number of patentsfor innovative products, and success-ful commercial cases of technologytransfer. The award categories includeGrand Prize, First Prize, Second Prize,Third Prize, and Excellence Award.Recognition methods include medals,monetary rewards, OA system an-nouncements, and o?ine conferencecommendations. Outstanding contrib-utors may also receive full reimburse-ment for international study tours.
Technological Inno-vation Award:
Targets teams that excel in major devel-opment and implementation projectsin areas such as product, marketing,technology, procurement, manufac-turing, and functions. The evaluationdimension is the active practice of LAZ-ZEN's core values (Customer Success,Responsibility, Initiative, Truth-Seeking,Self-Re?ection, Openness, and Collabo-ration). The award establishes the GoldProject Award, with recognition meth-ods including medals, ?nancial incen-tives, OA system announcements, ando?ine conference commendations.
Gold Project Award
Encourages employees to propose technical improvement solutions to achieve cost reduction and e?ciency enhancement. Evalua-tion criteria cover structural optimization, design changes, low-cost alternatives, material innovation, production process innovation,procedure improvements, low material consumption, energy e?ciency, and improved material utilization. The award categoriesinclude Grand Prize, First Prize, Second Prize, Third Prize, and Wisdom Star Award. Recognition methods include monetary bonusand OA system announcements.
Cost Reduction Incentive Award
Promotes the development of a professional technical team under the Mozi Expert program, enhances the capabilities of technicalengineers, and motivates professional engineers to advance toward the Mozi Expert designation. The allowance is granted to depart-ment heads of third-tier organizations and professional sta? serving as Mozi Experts, distributed quarterly in the form of a ?nancialsupplement along with their salary.
Mozi Expert Allowance
Update and Optimization in Incentives for Scienti?c Research Projects
To implement the product leadership strategy, LAZZEN recruits industry experts and builds a learning-oriented organization throughLAZZEN University, which includes Edison Academy, Pangu Academy, Rock Academy, Ganjiang Academy, and Lean Academy. Theseinitiatives continuously meet job demands and promote employee development to achieve research-driven goals. Specialized groupsin structure, electromagnetics, and thermal ?elds conduct over 30 professional sharing sessions and host more than 6 Mozi Experttechnical sharing events, helping employees broaden their expertise and enhance the Company's competitiveness.In 2024, two postdoctoral researchers in the station achieved remarkable results. The Hybrid (250A) Solid-State Circuit Breaker projectapplied for seven invention patents. The projectKey Technology Research on Low-Carbon Energy Saving and Smart Living EquipmentBased on AIachieved its ?rst-stage goal by applying for three invention patents and publishing two EI-indexed papers. These researchoutcomes provided new insights and technical support for LAZZEN's smart living and low-carbon energy-saving ?elds.
LAZZEN continuously monitors risk management in innovation-led growth. To meet current and potential customer needs, wedeeply analyze customer application scenarios. Every fourth quarter, we plan the strategy-to-execution (DSTE) process for the nextyear and the following three years. By using the "Five Views" method for market insights, we identify opportunity lists, detect newtechnology trends in the industry, and recognize technological shortcomings and potential risks. This enables the formulation ofactionable key tasks and corresponding countermeasures to ensure the e?ective implementation of the strategy.
Innovation Risk Management Table of LAZZEN
Learning-Oriented Organization Series Course Activities
Risk EventsRisk AnalysisResponse MeasuresGlobal situation changes rapidly, andcustomer demands are continuously in-creasing, leading to a growing need for newproducts
Invest in enhanced R&D capabil-ities to respond to new productsswiftly
Proactively deploy various new tech-nologies, identify new technical ad-vancements in the industry, and makesu?cient preparations in advanceAs customers' systems continue to upgradeand expand, the demand for new productsbecomes more urgent
Design and develop innovativeproducts to meet customers'diverse needs
Anticipate customer demands fornew products, continuously enhanceexisting technologies, and plan thedevelopment of various products inadvanceIn response to the increasing businessdemand, the original production base inPudong, Shanghai, can no longer meet theproduction needs of customer products
Expand new production bases toproduce more and better prod-ucts to meet customer demand
The company has invested in buildinga state-of- the-art manufacturing facil-ity super factory in Haiyan, Jiaxing, forproduction
Scienti?c Research IncentivesTalent Cultivation
Innovation-Driven Risk Assessment
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Honors in2024
Digital-Intelligent
New QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
SustainableComplianceGovernance
Uniting HeartsToward a Shared
Vision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
Feedback
andSuggestionsAboutLAZZEN
Full LifecycleService
Built the structural CBB module formechanisms, arc extinguishing, drawerseats, and accessories, by sharing andreusing CBB (Common Building Blocks),reduced redundant development e?ortsand enhanced R&D e?ciency.
Established a platform for the "Three-BreakOne-Connect" product. The frameworkproduct achieves intelligence, optimizedsoft connections, and low power consump-tion, molded case products reduce powerconsumption, miniature circuit breakersachieve low rotational inertia mechanisms,and contactor products ensure contact con-duction and operational reliability.
Under the Integrated Product Devel-opment (IPD) process framework, asecondary development system wasintegrated to establish an optimizedmaterial library with over 800 items anda technical requirements library with57 categories, enabling quick access tovarious knowledge bases for design, im-proving R&D e?ciency by 30%.
CBB Common Technology
Module
LAZZEN Series Product
Platform
R&D Tools
Disclosure ItemUnit2024R&D Investment AmountRMB million32469.74R&D Investment as a Percentage of Business Revenue%7.66
Number of R&D PersonnelNumber594Proportion of R&D Personnel%25.22
Intellectual Property Compliance Manage-
ment System Certi?cation
Status of Scienti?c Research Platform
Enhance and optimize therelevant regulations on intel-lectual property compliancemanagement, and imple-ment internal departmentalself-inspections for intellec-tual property compliancewithin the organization.
In the previous version of the docu-ment, the management regulationsfor intellectual property such astrademarks and copyrights weremostly classi?ed within the "otherintellectual property" category, lack-ing necessary speci?city. These havebeen comprehensively articulated ac-cording to the system and companybusiness requirements.
Establish clear de?nitionsfor the classi?cation oftrademark risk levels andtheir de?nitions, corre-sponding warning levels,implement detailed re-sponse strategy measures,and introduced formalizedprocedures for trademarkusage risk assessment.
Systematicre?nementto the evalua-tion criteriafor the Tech-nologicalInnovationAward.
01020304
Intellectual Property Management Optimization Direction
Conduct Intellectual Property Early Warning and Risk Assessment
During the reporting period
Disclosure ItemsUnit2024Number of Invention Patents Applied to Major BusinessNumber348Number of Invention Patent Applications During the Report-
ing Period
Number127Number of Invention Patents Granted During the Reporting
Period
Number207Number of New Patents Granted During the Reporting PeriodNumber356
Number of Patents HeldNumber1,779Number of Copyrights HeldNumber0Number of Trademarks and Registered Names HeldNumber701Number of Software Copyrights HeldNumber60Number of New Patents Filed AnnuallyNumber456Number of New Copyrights Filed AnnuallyNumber0
In 2024, LAZZEN enhanced and re?ned the intellectual property management frame-work, including theIntellectual Property Management Manual,Intellectual PropertyManagement Procedure,Intellectual Property Risk Management Procedure,Intellec-tual Property Reward and Punishment Measures, and theTechnical Innovation AwardSelection System. Additionally, new regulations such as theIntellectual PropertyCompliance Management Measures, theIntellectual Property Compliance ObligationReview Checklist, and theIntellectual Property Compliance Obligation Review Report
form were introduced to further streamline and strength the intellectual propertymanagement. These measures effectively mitigate intellectual property risks andencourage employees' innovation. To continuously enhance innovation quality andfoster a research atmosphere, the Intellectual Property Department organized a Tech-nical Innovation Award Selection and Technical Secret Review, strengthening theCompany's core competitiveness.LAZZEN prioritizes intellectual property protection through competitive analysis,product analysis, and patent monitoring to identify potential patent infringementrisks, conducting monthly active monitoring of trademarks and trade names, alongwith establishing multiple channels for detecting potential infringement cases.
Intellectual Property
Patent Risk AssessmentTrademark Risk Assessment
?●Regularly and automatically obtain newly publishedpatents from key stakeholders and technical ?elds us-ing patent search software.
?●Conduct phased retrieval and evaluation of relatedpatents aligned with project development stages.
?●Embed usage risk assessment into the evaluation pro-cess for new trademark applications, alerting differentlevels of responsible personnel based on varying risklevels. Subsequently, we update the usage risk assess-ment conclusions and synchronize alerts according tochanges in the trademark application review progress,conclusions, and other relevant factors.
Intellectual Property Risk Assessment
LAZZEN conducted
intellectual property protection training sessions, including
sessions speci?cally designed for
R&D personnel, covering approximately
participants.
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Digital-Intelligent
New QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-
being
Independent
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Digital-Intelligent EcosystemProductsIn the context of the national strategy encouraging enterprises to transform traditional industrial organization models through digi-tal intelligence, LAZZEN has comprehensively promoted intelligent transformation through the "Dual Intelligence, One Innovation"and "Dual Transformation, One Value Chain" strategies.
By leveraging cloud-based big data, this load identifi-cation technology integrates local and cloud solutions.With a recognition speed of mere seconds, it can covermajor household appliances, and new device datacan be identified within two weeks. The technologyhas been applied in areas such as Pudong District inShanghai and Baiyun District in Guangzhou, successful-ly identifying hazardous behaviors like electric vehiclehome charging. The warning system links with relevantmanagement departments to provide technical supportfor public safety.
Cloud-Based Big Data Load Iden-
ti?cation Technology
Application of Cloud-Based Big Data Load Identi?cation Tech-
nologyWith the energy transition and the liberalization of the power market, the demand for intelligent power distribution will continue togrow, achieving more sophisticated, automated, and digitalized management. In terms of technological innovation, the develop-ment of technologies such as IoT, cloud computing, big data, and AI provides expanded application scenarios and business modelinnovations. LAZZEN actively promotes R&D in the ?eld of intelligent power distribution and has achieved remarkable results byimproving energy e?ciency, reducing energy waste, and lowering carbon emissions, contributing to the goal of a low-carbon soci-ety. Additionally, advancements in intelligent power distribution enhance the reliability and stability of the power system, reducethe risk of power outages, and improve quality of life and production e?ciency.
Intelligent Power Distribution
As a core technology project supporting LAZZEN's smart power distribution, smart energy, and safe electricity busi-ness development, this initiative facilitates the Company's transformation from a traditional low-voltage manufac-turer to a digital energy service provider. Smart Power Distribution Magic Link Power software and NEA series intelli-gent brand cabinet hardware products o?er customers safe, e?cient, and carbon-reducing smart energy solutions,including smart power distribution, smart energy carbon, and safe electricity products.
Smart Power Distribution Hard-ware and Software Projects
Through the development of an IoT gateway automatic device recognition module, the gateway can automaticallyrecognize device types, models, and quantities upon startup and automatically register them to the IoT platform.Once registration is completed, the devices immediately begin data collection and reporting, improving manual ef-?ciency by 400%.
Automatic Device Recognition Tech-nology for Software System Gateway
Using algorithm models tailored to various scenarios, this technology enhances the e?ciency of processing massivedata sets. It performs specialized modeling for holidays and non-holidays. The current model boasts an averageaccuracy of over 91% and has already been implemented in the system. Load forecasting is fundamental to energyplanning, economic operation, and energy management.
Precision Load Forecasting
Technology
Breakthroughs in R&D in the ?eld of intelligent power distributionIn 2024, LAZZEN introduced the "Comprehensive Household Power Management Solution" LAZZEN Magic Cube Tianqi SmartHome Comprehensive Box and the "Carbon-Neutral Residence Home" Cloud Residence Platform. These innovations enable so-phisticated automated control of household electricity and low-carbon operation of appliances. At the Haiyan factory, smart livingtechnology has been implemented across smart lighting, smart shading, and smart temperature control, enhancing e?ciency andenergy conservation.LAZZEN independently developed the Cloud Residence Platform, adopting a comprehensive cloud-native architecture that facil-itates seamless third-party ecosystem product integration. The platform focuses on green, low-carbon smart building scenarios,enables personalized business customization, and allows versatile deployment. While ensuring information security, it achievescost control and reliability. In 2024, multiple large-scale projects were successfully implemented, the Open API was developed, andcloud-to-cloud integration with customer platforms was achieved.
Smart Living
By integrating smart devices and advanced algorithms, smartliving achieves the goal of green buildings and carbon-neutralhomes. Through integration with photovoltaic storage systemsto residential renewable energy sources, smart devices collectdata and optimize electricity consumption patterns to improvegreen power utilization. Collaborating with Fudan Universityon the Home Health Calendar and AI algorithms delivers thebest living experience with minimal energy consumption. Itoffers three energy efficiency modes, including free setting,healthy comfort, and low-carbon energy-saving, helping usersprecisely manage energy consumption for signi?cant energysavings and environmental protection. By integrating ad-vanced technology and intelligent management, smart livingnot only enhances residential comfort but also achieves sub-stantial energy-saving and environmental protection bene?ts.
Green Smart Living
Green Smart Living
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Guangzhou Energy-Saving and Low-Carbon Model Room ExhibitionLAZZEN has established an energy-saving and low-carbon model room in Guangzhou to showcase its current strategicachievements. By integrating the photovoltaic-energy storage-charging system and smart circuit breakers, LAZZEN hasachieved intelligent management of the entire energy chain from production to consumption, providing users with amore sustainable and intelligent living experience. In the power generation segment, the model room is equipped with aphotovoltaic-energy storage-charging system, with 16 BIPV (Building Integrated Photovoltaic) panels installed on the roof.The energy e?ciency management module displays real-time power generation metrics. On the consumption end, smartcircuit breakers are used to accurately monitor the electricity usage of each circuit, allowing customers to dynamicallyoptimize their electricity usage patterns and achieve energy savings.
Whole-House Intelligent Control System BIPV Roof Photovoltaic Panel
Haiyan Smart Living-Dormitory ConstructionHaiyan Factory Smart Living Design Blueprint
Leverage smart circuit breakers to facilitateelectricity metering, provide high-powerappliance alerts, enable automatic pow-er-off when the room is unoccupied, andtrigger automatic power-on when occu-pied. After the restaurant closes, a one-click shutdown feature for smart circuitbreakers, smart switches, and air condi-tioning panels guarantees energy saving.
EnergyE?cien-cy Sys-tem
Enable remote, zoned, and timed shut-down of public area lighting to e?ectivelymanage energy consumption.
LightingSystem
To systematically address scienti?c ethics risks, LAZZEN ensures that all R&D activities and technology applications comply withethical standards. LAZZEN continuously monitors and adapts to the latest ethical standards, laws, and regulations, and conductsethical assessments before project initiation. We maintain a high level of transparency, promptly disclose R&D progress and ethicalreview results, and accept social supervision. This e?ectively prevents and addresses scienti?c ethics risks, ensuring compliant,healthy, and sustainable development of technological R&D.We have achieved two signi?cant outcomes in AI-related R&D, AI-based waveform analysis and electrical lifespan prediction soft-ware, and human pose estimation technology based on millimeter-wave and point cloud AI. The AI-based waveform analysis andelectrical lifespan prediction software aims to predict the remaining service life of contactors through real-time monitoring anddata analysis, enhancing equipment safety and reliability while reducing maintenance costs. The millimeter-wave radar pointcloud-based human pose recognition technology o?ers high privacy and precision in home application scenarios. Millimeter-waveradar can detect patients' vital signs and activities with medical-grade accuracy without using cameras, ensuring user privacy.
Potential IssuesRisk TypeRisk AnalysisMitigation Measures
Privacy Issues
Monitoring andPrivacy Inva-sion
Microwave radar can be used to monitor hu-man activities. If such technology is widelydeployed without control, it may infringe onpersonal privacy
?●Training academy organizes post-doctoral research personnel toconsider ethical standards duringthe technology design and appli-cation phases?●Implement transparent supervi-sion and review measures?●Strengthen data protection andprivacy safeguards
Data Collectionand Usage
If radar devices collect sensitive data (suchas location, behavior, and health status),strict compliance with data privacy regu-lations (GDPR) is required. Unauthorizedcollection, storage, or use of such data maylead to ethical issues, especially in cases ofdata misuse or leakage
Misuse and Abuse
Social andPsychologicalImpact
Microwave radar can detect human be-havior, such as movement, breathing, andheartbeat signals. If used for real-time track-ing or large-scale surveillance, it may haveprofound social impacts and raise publicconcerns about privacy and freedom
Haiyan Smart Living
Scienti?c Ethics
Microwave radar technology, as a physical principle (detecting objects through microwave signals), does not directly involve eth-ical issues. However, its application may lead to a series of risks and challenges related to scienti?c ethics, including privacy inva-sion, data misuse, health risks, environmental impact, and social inequality. To avoid these ethical risks, the research institute hasimplemented a series of measures to ensure that the application of the technology does not harm individual rights or public inter-ests, promoting social equity and environmentally sustainable development.
Scienti?c Ethics Risks
Scienti?c Ethics Risks Analysis of the Microwave radar technology
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LAZZEN is actively advancing its digital-intelligent transformation, steadily strengthening the information-based R&D capabilities,striving to improve the process platform, and adopting a data-driven operational model to continuously convert the achievementsof digital construction. We established the Digital Transformation Committee (DXMT), which possesses management capabilities indigital transformation planning, investment, project decision-making, and architecture governance. The committee's speci?c re-sponsibilities have been clearly de?ned to promote integrated digital construction and drive the implementation of the Company'sdigital transformation.In line with the digital transformation plan and project construction, we developed theDigital Transformation Committee Operat-ing Mechanism, formulating a speci?c work plan for digital transformation each year and holding committee meetings for review.In 2024, LAZZEN updated the relevant protocols and procedures of the operating mechanism and rede?ned the classi?cation andgrading standards for digital projects.
MarketingR&D
Digital Transformation
Committee (DXMT)
OperationSupply ChainDigital Technology
Digital Transformation Committee (DXMT) Structure
Digital Transformation Operational Mechanism
0102030405DemandReview
SolutionReview
ProcurementReview
Project Imple-mentation
Acceptance
Review
Overview of LAZZEN's Digital Project Classi?cation
The LAZZEN Hangzhou Bay Super Factory is driven by industrial internet data, introducing simulation technology, and leveragingdigital twin technology to build a platform that demonstrates the factory's production capacity, achieving online and o?ine virtu-
Scope of Digital Twin Business — Haiyan Park, Spot Welding Workshop, Electronics Workshop, Electroplating Workshop
Smart Future FactorySmart Factory
LAZZEN consistently upholds the vision of "Achieving Excellence in Low-Voltage Electrical Appliances and Building a New SmartElectrical Ecosystem". We are committed to transforming the LAZZEN Hangzhou Bay Super Factory into a sustainable, intelligent,and smart manufacturing park, integrating green manufacturing, intelligent manufacturing, and smart manufacturing to establishthe largest intelligent manufacturing center in the low-voltage electrical appliance industry. Following the "Dual Intelligence, OneInnovation" and "Dual Transformation, One Value Chain" business strategy, we continuously drive the digital-intelligent transfor-mation of the Hangzhou Bay Super Factory through four key dimensions: smart and intelligent factories, production, logistics, andagile supply chain. The factory has implemented core advanced processes such as mold making, injection molding, stamping,welding, electronics, and electroplating, along with a fully digital shared system covering the entire process from design, quality,sales, production to logistics, propelling LAZZEN's high-quality development.
SAP, PLM, MES, WMS, etc.Application Systems
Mobile B1, Marketing Five Perspectives, Product Line Operations Command Platform, etc.Data Platforms
Solidworks, Mold?ow, etc.Tool Software
Computers, Hardware, Servers, Firewalls, Penetration TestingBasic Maintenance
al-real synchronization, enabling real-time remote monitoringof the production process in the Haiyan component workshop,and realizing full transparency, measurability, and traceabilityacross the entire factory.In smart production, automated production lines are com-bined with cell lines, achieving mass customization and quickresponse to customer needs. By integrating 11 subsystemsin smart logistics, on-time automatic material delivery isachieved. Additionally, through the collaboration of SRM(Supplier Relationship Management), QMS (Quality Manage-ment System), WMS (Warehouse Management System), MES(Manufacturing Execution System), and TMS (TransportationManagement System), the agile supply chain is optimized,driving quality management and e?cient collaboration acrossthe supply chain, enhancing the factory's e?ciency, ?exibility,and market responsiveness, and supporting the Company'sbusiness strategy development.
2526
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Function ModuleFunctionRemarks
Digital Inspection
Manual Inspection
Quickly locate the current equipment by clicking on thedevice or production line, and inspect using keyboardoperationAutomatic Inspection
Set di?erent roaming inspection routes for di?erent needs,such as visiting exhibition routes, process inspectionroutes and key equipment quick inspection routesEnergy Data Access
Access and display data on energy sources such as water,electricity, gas, and heatPower Distribution Data Access
Access data from distribution boxes and cabinets, anddisplay power data for buildings, ?oors, and workshopsEnvironmental Monitoring
Monitor data on temperature, humidity, noise, etc., andtrigger alarms when exceeding the set thresholdSMS Noti?cation
Con?gure personnel information for automatic SMS alertsfor faults and warningsFault Alarm
Con?gure personnel information for automatic SMS alertsfor faults and warningsSurveillance ManagementIntegrated with electronic and electroplating camerasVideo AI Analysis
AI analysis in the electronics workshop to check for properattireEquipment Twin AnimationDetermined by the data status of on-site equipment
Equipment Management
Basic Equipment InformationManagement
Manage the linkage between workshop, production line,and equipmentEquipment Explosion DiagramSchematic diagram of equipment disassemblyDrawing Upload and Viewing
View associated drawings and documents for the equip-mentDetailed Equipment InformationManagement
Continuously improve information on electronics and spotwelding materialsScene Con?gurationDIY SceneAdjust the DIY scene when workshop equipment changesWarehouse LogisticsWorkshop AGV Logistics
Real-time display of AGV routes for electronics, spot weld-ing, and electroplatingOperations ManagementVarious Reports
Flexible report con?guration, displaying di?erent types ofreports for users with di?erent permissionsEquipment Layout
Equipment Layout Con?guration
Click on the relevant equipment in the layout diagram tojump to the scene location and display equipment details.The layout diagram can be dynamically generatedRisk Four-Color MapReal-time view of ?oor plans, safety channels, and routes
Digital Twin Business Functions
The ?nished product assembly workshop of LAZZEN's Hangzhou Bay Super Factory adopts a combination of automated produc-tion lines and cell lines to achieve mass customization and rapid response. This approach ensures the e?ciency of large-scaleproduction while accommodating the ?exibility required for small-batch, multi-variety products, fully meeting customer demands.In 2024, the factory completed the upgrade of the Industrial Control 311 lines, Electromagnetic Leakage Prototype line, Frame 728line, and 4 Molded Case 211 lines. These projects resulted in signi?cant improvements in line balancing and UPPH values.
Lean Production Line Upgrade
During the reporting period, theHangzhou Bay Super Factory ad-vanced the lean production lineupgrade based on product char-acteristics, from the perspectivesof production lines, workstations,and tooling. This effort furtheroptimized the ElectromagneticLeakage Prototype line by reduc-ing and eliminating 12 types ofnon-compliance with lean produc-tion requirements, such as ma-terial transfer, inventory, waiting,and heavy lifting. As a result, theproduction line adapted to mul-ti-variety, small-batch production,enhancing production ?exibility.
Comparison of the Electromagnetic Leakage Prototype Line Before and After Lean Produc-
tion Line Optimization
Prototype Line Improvement Team
Intelligent Production
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LAZZEN Hangzhou Bay Super Factory integrates 11 subsystems for automatic delivery from the automated warehouse to various?oors and workshops. By utilizing rail conveyor lines and AGVs, materials are delivered to the designated workstations with precisetiming, creating an advanced logistics distribution system. The Company employs small packaging trains instead of manual hy-draulic carts and has launched the AGV project for cross-workshop ?nished product (frame) warehousing, further enhancing logis-tics e?ciency.
Through SRM, QMS, WMS, MES, andTMS systems, LAZZEN Hangzhou BaySuper Factory advances quality man-agement, shares inventory and pro-duction data, and achieves e?cient up-stream and downstream collaboration.In 2024, LAZZEN completed 10 digitaltransformation projects, includingtwo for quality advancement, two forlogistics inventory and delivery, two forproduction data sharing, and four fore?ciency optimization.
AGV POC testing
LAZZEN's 2024 Supply Chain Digitalization Projects
During the reporting period
The product qualityPPM at LAZZEN Hang-zhou Bay Super Factorydecreased by
15.3
%
The e?ectiveproduction e?-ciency per capitaincreased by
20.8
%
The averageproduct deliverycycle was short-ened by
18.5
%
?●
SRM System(Supplier Relation-ship ManagementSystem)
?●First Pass YieldAlarm
?●VMI Material VerticalWarehouse Management(Vendor Managed Inven-tory)?●Development of Elec-tronic Kanban for HaiyanWorkshop LogisticsDistribution
?●Workshop Kanban?●System Calculation forInbound Caliber Cost, Price,and Quantity Di?erences
?●SMS Performance System Optimization?●
RPA Digital Employees (Robotic ProcessAutomation)?●Electronic Workshop MES Optimization(Manufacturing Execution System)?●Long-Term Improvement Tracking andOptimization for Equipment Anomaliesin EAM (Enterprise Asset Management)
Quality For-
warding
Logistics Inventory
and Distribution
ProductionData Sharing
E?ciencyOptimization
Workshop Logistics Distribution Electronic Display Boards
During the reporting period, LAZZEN addressed issuessuch as the lack of visual support for on-site-to-produc-tion line delivery, low delivery e?ciency, and di?cultiesin data integration. The company implemented visualelectronic display boards in each workshop, focusing ondelivery achievement rates and making the delivery pro-cess more transparent. This system allows managers tomonitor workshop delivery dynamics in real time, achievevertical management across di?erent levels, and providelong-term data support and improvements through dis-play board data monitoring and statistics.
Project-based Logistics Distribution Display Board
The workshop QCD (Quality, Cost, Delivery) visual management board rotates to display content related to e?ciency, quality, delivery,
and continuous improvement.
Honors and Certi?cations
2024 Jiaxing Green Factory2024 Typical Case of Industrial Waste-
water Recycling
2024 Zhejiang Provincial Water-Saving
Enterprise
2024 Jiaxing High-Tech R&D CenterIntelligent Manufacturing CapabilityMaturity Certi?cation2024 Zhejiang Provincial Future Factory
By utilizing project-based logistics distribution display boards, delivery personnel are guided in their operations andassisted in logistics information analysis. The displays core delivery indicators, delivery e?ciency metrics, and logisticsdistribution volumes. The system analyzes the data and pushes abnormal data alerts to the responsible personnel.
Smart Logistics
Agile Supply ChainSmall packaging train delivery
LAZZEN Hangzhou Bay Super Factory 2024 Honors and Certi?cations
Supporting of the UN SDGs
Climate Change andOpportunities
LAZZEN actively responds to carbon peaking and carbon neutrality goalsand addresses climate change by continuously implementing energy-savingand carbon reduction initiatives. We prioritize green and low-carbon devel-opment as a long-term goal, building a smart energy management platformto optimize energy management systems and improve energy efficiency.Through strengthening green ecological technology R&D and introducingnew equipment, we expedite the green transformation and expands into thenew energy market, providing customers with comprehensive low-carbonsolutions and establishing a smart electrical zero-carbon ecosystem.
Concept
?●
Addressing Cli-mate Change
?●EnergyManagement
?●Clean Technolo-gy OpportunitiesOur Actions
Key Performance
Total greenhouse gas emissions:
19,841.75 tCO
eClean energy consumption:
4,705.14 MWh
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LAZZEN has established a clear allocation of responsibilities for each organizational level under the Sustainable DevelopmentCommittee framework, progressively re?ning production processes and equipment, advancing carbon emissions management,and reducing carbon emissions to holistically implement climate change governance.
LAZZEN proactively tracks climate change and actively responds to the carbon peaking and carbon neutrality goals, emphasizingthe capability to address climate changes and drive green and low-carbon transformation. We follow theInternational Sustainabil-ity Standards Board's (ISSB) "IFRS S2 - Climate-related Disclosures framework to analyze and manage climate change issues, con-tinuously enhancing its climate change management structure and enhancing its response capacity
In alignment with China's carbon peaking and carbon neutrality strategic objectives, LAZZEN has adopted a proactive approachto systematically identify, evaluate, and manage climate-related risks and opportunities. LAZZEN has categorized di?erent risktypes and developed corresponding countermeasures based on the impacts of climate change to better address these challeng-es.During the reporting period, LAZZEN completed carbon inventory and veri?cation for the 2023 baseline year and initiated the 2024carbon inventory project to re?ne emission data for subsequent management. By 2025, LAZZEN plans to launch a zero-carbon fac-tory initiative, continuing its focus on carbon reduction and further enhancing sustainable development capabilities.
Risk TypeRisk Description and Impact AnalysisMitigation Measures
Physical
Risk
Acute Risk
Extreme weather events (e.g., heavy rain,typhoons, snowstorms, ?oods, and hightemperatures) can lead to production inter-ruptions, depreciation of ?xed assets, laborloss, and increased facility maintenance costs,impacting product delivery
Establish a regular meteorological informationtracking mechanism and develop emergencyresponse plans for extreme weather and sud-den environmental events; introduce a digitalplatform for real-time monitoring to provideearly warnings of safety hazardsChronic
Risk
Global warming a?ects production processes,logistics, and o?ce operations, leading toincreased operating costs
Develop a climate change emergency re-sponse plan, continuously monitor climatechange trends, and provide early warnings
TransitionRisk
Policy andLegal Risk
Increasing government requirements forclimate-related information disclosure putpressure on compliance management; carbonemissions from production and operationsneed stricter control, and overseas businessfaces increased pressure from greenhouse gasregulations
Improve the carbon emissions and productcarbon footprint management system, setclimate change management targets, contin-uously optimize the energy structure and en-ergy-saving measures, and strengthen greenand low-carbon technology research anddevelopment; monitor domestic and interna-tional greenhouse gas emission regulations torespond to new laws and regulatory require-ments in a timely mannerTechno-logicalRisk
The risk of failure when introducing ener-gy-saving equipment or clean technologiesand promoting low-carbon technologyresearch to achieve carbon reduction
Continuously improve equipment e?ciency,focus on low-carbon areas, conduct researchin green and low-carbon directions, andestablish fault tolerance mechanismsMarketRisk
Capital markets, customers, and other stake-holders are increasingly concerned about thecompany's carbon reduction actions, seekinggreen low-carbon solutions and requiring agreen supply chain, which can impact thecompany's market share
Monitor changes in carbon market policies,proactively invest in green technology re-search and development, and implementgreen supply chain initiatives to meet custom-er and market demands
Reputa-tion Risk
Stakeholders, such as customers, are in-creasingly concerned about the company'sperformance in addressing climate change.Failure to take proactive action may result innon-compliance with local regulations andstakeholder expectations, damaging the com-pany's image and reputation
Continuously advance the green and low-car-bon development path, optimize the com-pany's environmental management system,enhance climate change response capabili-ties, strengthen negative public opinion mon-itoring, and actively address and rectify issuesto reduce negative environmental impacts
?●Supervise and manage climatechange-related initiatives
Director of the Sustainable
Development Committee
?●Responsible for the manage-ment and deployment of taskscorresponding to ESG issues.
?●Monitor the climate risks andopportunities, and formulatecorresponding managementmeasures.
Members of the SustainableDevelopment Committee
?●Drive the implementation ofclimate change managementmeasures in accordance withthe climate change strategy.
Departments and
Subsidiaries
Climate Change Governance Committee Structure and Responsibilities
Addressing Climate Change
Climate Change Governance
LAZZEN remains committed to the green development philosophy, adopting the gradual reduction of carbon emission intensity asits long-term strategic direction. LAZZEN is dedicated to optimizing the energy structure by increasing the proportion of clean ener-gy in total energy consumption, phasing down fossil fuel usage, and maximizing renewable energy adoption. Additionally, throughtechnological upgrades and equipment retro?tting, the Company aims to enhance energy e?ciency and reduce operational car-bon emissions. Future initiatives include advancing zero-carbon factory projects and conducting carbon neutrality forecasting toaddress climate change challenges.
Climate Change Strategy
Climate Change Risk Management
Identi?cation and Countermeasures for Climate Change-Related Risks at LAZZEN
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Disclosure ItemUnit20232024
Total Greenhouse Gas EmissionstCO
e22,127.0219,841.75Scope 1 Greenhouse Gas EmissionstCO
e712.381,125.37Scope 2 Greenhouse Gas EmissionstCO
e21,414.6418,716.38
Greenhouse Gas Veri?cation Certi?cation
LAZZEN Supports the Construction of the Largest Single-Unit Desert PhotovoltaicPower Station in ChinaDuring the reporting period, Chi-na's largest desert photovoltaicpower station, the Xinjiang GreenDevelopment Midong District
3.5GW Photovoltaic Project, was
successfully connected to the grid.The project is located in the Dong-dao Haizi Desert Wetland area,covering approximately 200,000acres.LAZZEN provided core elec-trical protection solutions for theproject, including the NDWPG-4000HU frame circuit breaker andthe NDM3A-320VH molded case cir-cuit breaker. These products wereapplied to the low-voltage cabinetsof the booster transformer substa-tion, serving the photovoltaic gridconnection protection function.The total installed capacity of theproject reaches 3.5 million kilo-watts, with an annual utilization of1,740 hours, providing 6.09 billionkWh of clean electricity annually.This helps save 1.9488 million tonsof raw coal and reduces carbondioxide emissions by 6.0717 milliontons per year. The project plays asignificant role in supporting thenational carbon peaking and car-bon neutrality strategy, acceleratinglocal energy structure optimization,and promoting the development ofthe electricity market.
Xinjiang Green Development Midong District 3.5GW PV Project
LAZZEN has implemented various carbon emission reduction management measures, including energy-saving diagnostics, tech-nological innovation, motor replacement, and photovoltaic power station construction. LAZZEN also conducted e?ciency testingand evaluation on key energy-consuming equipment to further achieve energy-saving and emission reduction management goals.
During the reporting period, LAZZEN and Liangxin Electric Appliances (Haiyan) Co., Ltd. conducted a carbon inventory.
LAZZEN actively engages in carbon inventory and veri?cation work and sets corresponding climate change targets in line with thenational goals of "Carbon Peak by 2030" and "Carbon Neutrality by 2060".
YearClimate Change Target Description
2024
?●Conduct carbon emission data inventory and veri?cation work?●Establish a Sustainable Development Committee to address climate change2025
?●Disclose theLAZZEN Carbon Neutrality White Paper?●Set carbon neutrality targets2030
?●Respond to the national "Carbon Peak" goal, with a gradual reduction in corporate carbonemissions year by year2060
?●Respond to the national "Carbon Neutrality" goal, achieving a balance between carbon emis-sions and absorption
Climate Change Indicators and TargetsGreenhouse Gas Reduction
3536
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"First-Class Energy-E?cient Compressed Air Station"The compressed air system is equipped with variable-frequency energy-saving air compressors, each paired with awaste heat recovery unit, and energy-saving adsorption dryers. Additionally, PLC technology is used for group control ofall equipment in the compressor room, along with various energy-saving measures and devices. The system has beenawarded the title of "First-Class Energy-E?cient Compressed Air Station" by the Shanghai Institute of Quality Inspectionand Technical Research Institute.
Energy E?ciency Certi?cation Plaque for the Compressed Air StationCompressor Room
The types of energy consumed in LAZZEN's production mainly include electricity, natural gas, steam, and tap water, with electricityand steam being the primary energy sources. The company adheres to the Energy Conservation Law, theEnergy Law, theShanghaiEnergy Conservation Regulations, and other relevant laws and regulations to implement energy management. LAZZEN continu-ously optimizes its energy management system by introducing new energy equipment and promoting energy-saving and emissionreduction measures to enhance energy management e?ciency.
NDB2-63 Miniature Circuit Breaker withshort circuit protection, isolation func-
tion, and overload protection
LAZZEN conducts full lifecycle management for its products. To further address climate change and build a green supply chain,while enhancing the competitiveness in low-carbon and green products, LAZZEN will pursue carbon footprint certi?cation for theNDB2-63 Miniature Circuit Breaker. The certi?cation preparation work is expected to be completed by 2025.
Product Carbon Footprint
Energy Management
LAZZEN adopts a hierarchical energy management approachand has established and implemented an energy managementframework, including theEnergy Management ManualandEnergy Risk Management Measures. The Company has formedan energy management team and developed an energy auditmanagement framework and an energy measurement man-agement framework. LAZZEN has successfully obtained ISO50001 Energy Management System certi?cation.
ISO 50001 Energy Management System Certi?cation
Energy Governance
LAZZEN adheres to the mission and vision of "Excelling in Low-Voltage Electrical Appliances and Building a Smart Electrical Ze-ro-Carbon Ecosystem". We follow the energy management policy of "Customer-Oriented, Quality-Based, Scientific Innovation,Energy Conservation and Environmental Protection, Safety and E?ciency, Legal Compliance, Scienti?c Management, ContinuousImprovement". To enhance energy management e?ciency, we actively conduct energy audits. During the reporting period, LAZ-ZEN analyzed energy usage, identi?ed the energy e?ciency level, and pinpointed issues and weaknesses in energy managementand utilization. Through on-site testing and diagnostics, we identi?ed energy-saving potential and proposed practical energy-sav-ing measures and recommendations. This approach strengthens the Company's energy management capabilities, reduces energyconsumption costs, improves economic bene?ts, and promotes sustainable economic and environmental development.Additionally, the energy management team holds regular energy management meetings to analyze the impact of disposal pro-cesses and equipment operations on the comprehensive energy consumption of unit products. Relevant departments establish akey energy-consuming equipment ledger based on equipment model, power, operating time, and loss conditions, and implementeffective monitoring. During the reporting period, LAZZEN developed energy-saving and consumption reduction plans for keyenergy systems, primarily focusing on power distribution systems, compressed air systems, air conditioning systems, and certainproduction equipment.
Energy Management Strategy
To ensure stable energy supply, price stability, sustainable development, and the smooth operation of the energy sector, LAZZENhas established management systems such as theEnergy Risk Management Measuresand theRisk and Opportunity ManagementProceduresin compliance with theEnergy Conservation Lawand other relevant regulations. By implementing energy-saving andcarbon reduction measures, LAZZEN strengthens its ability to manage energy-related risks. The Company regularly conducts ener-gy monitoring and analysis, allocates energy quotas, and adjusts production plans and scheduling in real-time to further enhanceits energy management risk resistance.
Energy Impact and Risk Management
3738
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Energy Usage Monitoring and RegulationEnergy Saving and Alternative Energy Utilization1Real-Time Monitoring and AnalysisDeployed the real-time energy consumption trackingmodule of the energy management system(EMS) toclosely track energy consumption and usage data.Designated certified personnel to regularly inspectenergy metering instruments and report any abnor-malities promptly.
2. Energy Quota Allocation
Develop a dynamic energy quota allocation planbased on the importance of each workshop, produc-tion line, and urgent orders. Establish a supervisionmechanism for energy quota usage.
3. Production Planning and Scheduling Adjustments
Collaborate with the planning and manufacturing de-partments to flexibly adjust production plans basedon the severity and duration of energy shortages.
External Communication and CoordinationEmergency Support and Risk Prevention
1.Communication with Energy Suppliers
Negotiate for priority restoration or an increase inenergy supply to the factory. Discuss the possibility ofobtaining additional energy resources.
2. Reporting and Seeking Assistance from Relevant
Authorities
Establish direct communication channels with localeconomic and information technology committees toensure energy supply for the factory.
1. Ensuring Key Equipment Operation
Form a cross-functional maintenance team to inspectenergy equipment critical to safe production andkey processes. Prevent equipment failures that couldworsen energy shortages or cause safety incidents.Equip key equipment with backup power sources.
2.Risk Prevention and Emergency Drills
Develop corresponding risk prevention measures forvarious safety risks. Strengthen on-site safety man-agement and monitoring. Regularly conduct emer-gency drills for energy shortages.
1. Exploring Energy-Saving Potential
Adjust the operating parameters of production equip-ment to reduce energy consumption. Inspect and re-pair potential energy leakage points within the facilityto minimize energy loss.
2. Utilizing Alternative Energy Sources
Under the premise of safety and environmental com-pliance, promptly activate alternative energy equip-ment to ?ll energy gaps. For processes that can utilizealternative energy, conduct temporary energy conver-sion.
LAZZENEnergyEmergencyManagement
Measures
To enhance energy e?ciency and promote transparency in energy management, LAZZEN has implemented an Intelligent PowerDistribution Platform System and established a Smart Energy Management Platform. This system leverages industrial internettechnology and integrates with smart parks, digital twins, and Manufacturing Execution Systems (MES). The platform features datameasurement, operations management, energy consumption analysis, energy usage visualization, and system con?guration. Us-ing a layered and distributed system architecture, it enables real-time data collection from various energy consumption units with-in the facility. In case of abnormalities, the system triggers alerts, and cumulative data is analyzed to provide data-driven supportfor energy-saving and consumption reduction initiatives.During the reporting period, the installation rate of primary, secondary, tertiary, and quaternary metering meters in the power dis-tribution system reached 98%.With the Air Conditioning Intelligent Control System, total air conditioning electricity consumption inQ3 2024 decreased by 16% compared to Q3 2023.
Disclosure ItemUnit202220232024Total Energy Consump-
tion
Tons of Standard
Coal
-3,091.863,743.39Natural Gasm?46,21753,267.147,831.00Steamm?1,163.032,2342,272.82ElectricityMWh33,223.4139,710.9033,621.47
Direct Energy Con-
sumption
Tons of Standard
Coal
-20.0063.62Indirect Energy Con-sumption
Tons of StandardCoal
-3,071.863,679.77Energy ConsumptionIntensity
Tons of StandardCoal per Unit ofProduction
-0.01890.0129Clean Energy UsageMWh1,688.603,353.944,705.14
2024 Energy Management TargetAchievementCompany's energy target: 0.0189 tce per 10,000 RMBAchieved
Smart Energy Management and Energy Storage ManagementIntelligent Air Conditioning Control System
Energy Management Indicators and Targets
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The green innovation research covers various aspects, including materials, structure, and performance. The Company optimizeshigh-energy-consuming processes and energy-saving algorithms through new processes, new technologies, new equipment, andnew energy solutions. Green ecological design principles are integrated into product development, and life cycle assessments areconducted to optimize lightweight and low-carbon solutions. As a result, LAZZEN's products have been recognized by the Ministryof Industry and Information Technology as "Green Design Products".LAZZEN has established a green manufacturing management system team, responsible for improving equipment energy e?ciencyand developing photovoltaic projects while implementing clean production concepts. The Company prioritizes the use of non-tox-ic and low-toxicity raw materials and replaces oil-based paints with water-based paints for circuit board corrosion protection, sig-ni?cantly reducing VOCs, xylene, and acetone emissions. To further enhance clean production, LAZZEN has developed theClean-room Usage Speci?cationmanagement document, adopted clean production processes, and selected advanced environmentalprotection equipment to prevent fugitive emissions of welding fumes. Additionally, traditional oil-based ink printing machineshave been replaced with laser printers, signi?cantly reducing the pollutants generated in the printing process.As a result of these e?orts, LAZZEN has been awarded the "National Green Factory" demonstration title.
LAZZEN continues to accelerate its green transformation by strengthening green ecological technology R&D, expanding into thenew energy market, and providing customers with high-efficiency, energy-saving products and low-carbon solutions, therebybuilding a smart electrical zero-carbon ecosystem.
New Energy
Industry
Application Scenarios
Picture
Onshore Wind PowerO?shore Wind Power
WindPower
Ground-based PowerStation: Centralized,String-typeCommercial and Indus-trial PVResidential PVPhotovol-
taics
Large-scale Energy Stor-ageCommercial and Indus-trial Energy StorageResidential Energy Stor-age
EnergyStorage
Product NameProduct PictureTechnical Innovations
NDW2X-1600 Frame Circuit
Breaker
Designed with a front-mounted panel
structure and an optimized internalstructure, reducing product size by
18%.
NDC3Z Contactor
The contact support uses high-tem-perature-resistant and eco-friendlymaterials to replace non-recyclablematerials, which is expected to reducenon-recyclable material usage by 2,280
kg annually.
Green Environmental Technology Progress and Achievements (Partly)
Clean Technology Opportunities
Green Ecological Technology
The global energy revolution is accelerating, with clean energy and smart grids emerging as key directions for future energy devel-opment. Guided by the "carbon peaking and carbon neutrality" goals, LAZZEN continuously evaluates its innovation capabilitiesin clean technology and explores development opportunities. The Company is expanding its presence in the new energy market,developing green, energy-e?cient, and high-performance products as well as low-carbon solutions, thereby driving its green andlow-carbon transformation. LAZZEN remains committed to providing customers worldwide with advanced and reliable smart elec-trical solutions, collectively building a clean, low-carbon, safe, and e?cient future energy system.In new energy research and development, the Company adheres to the principle of "saturating resource investment and ensuringa 25-year product lifespan" as its core philosophy. Focusing on key innovation areas in new energy product development, LAZ-ZEN prioritizes customized product development, streamlines R&D processes by emphasizing key aspects, and ensures reliabilitythrough large-sample testing. During the new product development process, the Company deeply integrates into customer usagescenarios, maintaining close collaboration with clients to identify and resolve issues early, ensuring that new products are ready formass adoption upon market launch.Currently, LAZZEN's innovation in the new energy market revolves around two key aspects: optimizing power and functionality andenhancing product con?guration combinations.
Opportunities in New Energy Products
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LAZZEN Supports the Zero-Carbon Journey with Photovoltaic and Energy StorageElectrical System SolutionsDuring the reporting period, LAZZEN participated in the 17th International Solar and Smart Energy Exhibition. In recentyears, LAZZEN has secured over 40% of the low-voltage electrical appliance market share in the new energy segment,contributing to the shipment of more than 200GW of new energy power generation equipment. This e?ort further ad-vances industry technology and supports the achievement of carbon neutrality goals. For centralized photovoltaic (PV)applications, the Company has developed a 3.125MW large-unit solution and a 1+X modular small-unit solution. In stringPV systems, LAZZEN has introduced highly e?cient, reliable, and stable product solutions.In distributed PV applications, LAZZEN has launched a live-line reclosing circuit breaker solution, a self-reset overvoltageand undervoltage protection solution, and an intelligent distribution area solution. For commercial and industrial PV de-mands, the Company has introduced grid-connected protection cabinet solutions for 50–400kW and 500kW–1MW appli-cations, e?ectively meeting market needs.
LAZZEN participated in the 17th International Solar and Smart Energy Exhibition
The 4th-generation commercial nuclear power plant - Shandong Shidaowan Guohe Pressurized Water Reactor Demonstration Project, with an in-stalled capacity of 3,000MW and a total investment of RMB 42.3 billion. LAZZEN provided two-stage and three-stage DC miniature circuit breakers andmolded case circuit breakers, which were applied in booster stations, desalinated water systems, circulating pump rooms, and other systems.
Nuclear IslandConventional IslandAuxiliary SystemNuclear Power
AC Charging PileDC Charging PileSupercharging PileBattery Swap StationChargingStations
Commercial VehicleCommercial VehicleForkliftElectricVehicles
Inland River VesselSea-going VesselUnmanned Electric VesselElectric
Ships
Green HydrogenHydrogenEnergy
LAZZEN's 2024 New Energy Product Deployment
Supporting of the UN SDGs
Building a Green NewEcosystem
LAZZEN prioritizes environmental compliance management, actively as-sumes primary responsibility for ecological and environmental protection,and thoroughly implements resource control strategies. The company en-hances water conservation measures, promotes green packaging and circulareconomy models, and ensures the lawful and compliant treatment of emis-sions and waste. LAZZEN continuously optimizes wastewater, exhaust gas,noise, and waste treatment processes while strengthening the supervisionand control of hazardous chemicals, comprehensively improving its environ-mental compliance management e?ciency.
Concept
?●
Environmental Com-pliance Management
?●
ResourceManagement
?●PollutantEmissions
Our Actions
?●WasteDisposal
?●
ChemicalManagementKey PerformanceTotal environmental protection investment: RMB :
1.7
millionNo major administrative penalties imposed by ecological and environmentalauthorities due to environmental incidentsNon-hazardous waste disposal:
70.56
tons, with a
% recy-cling rate
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?●Regulatory Policy Review: Annually review and interpret newly issued or revised environmentallaws, regulations, and policy standards at the national and local levels, focusing on changes thatmay signi?cantly impact the company's production and operations.?●Preliminary Risk Identi?cation: Based on the company's business scope and operational model,identify potential environmental risk areas from a legal compliance perspective, and compile a listof potential risk points as the basis for further in-depth assessment.
Legal Review
?●
The EHS department conducts a quantitative evaluation of each risk point, determining the like-lihood of occurrence, potential impact level, possible types of environmental incidents, and theseverity of consequences.
EHS Identi-?cation andAssessment
Environmental Compliance Risk Assessment
?●
Cross-Departmental Communication and Collaboration: The EHS department communicates the
risk assessment results and response plans to all relevant internal departments through detailedbrie?ngs and training sessions. It also organizes cross-departmental meetings to facilitate jointparticipation in environmental risk management.?●
Integration into Daily Operations: The results of environmental risk assessments and correspond-ing mitigation measures are integrated into the company's daily operations. This includes strate-gic planning, production scheduling, procurement decisions, and performance evaluations, withspeci?c risk control indicators and operational procedures established accordingly.Internal Coor-dination andCommunica-tion
Emergency Response Plan System
Comprehensive Emergency Response Plan for Work Safety Accidents of
LAZZEN & Liangxin Electric Appliances (Haiyan) Co., Ltd.
Special Emergency Response Planfor Sudden Safety Accidents
Special Emergency ResponsePlan for Fire Accidents
Special Emergency Response Plan for
Typhoon, Flood, and Natural Disasters
LAZZEN strictly complies with national environmental protection laws and regulations, such as the Environmental Protection Lawand the Environmental Impact Assessment Law. LAZZEN continuously re?nes the environmental management framework andorganizational structure, clearly de?ning environmental management responsibilities at all levels to enhance environmental com-pliance capabilities.
ISO 14001 Environmental Management
Framework Certi?cation
ronmental risk assessment tools and methodologies to quantify each compliance risk point. LAZZEN evaluates the likelihood ofoccurrence, potential impact, possible environmental incident types, and severity of consequences to determine key priorities forenvironmental management and develop appropriate countermeasures.LAZZEN has established an environmental compliance emergency management framework based on theEmergency ResponsePlan for Sudden Environmental Incidents and related policies. An emergency rescue organization has been formed, and the Com-pany has implemented environmental risk prevention and emergency response measures, including regular inspections, main-tenance responsibility systems, and compliance with environmental risk control requirements outlined in project environmentalimpact assessments. Additionally, LAZZEN conducts at least two environmental risk and emergency management awareness andtraining sessions for employees each year, along with emergency drills for sudden environmental incidents to enhance prepared-ness and response capabilities.
Environmental Compliance Man-agement
Upholding the principle of environmental protection, LAZZEN has established a series ofinternal environmental management documents, including theEnvironmental, Occupa-tional Health, and Safety Management System, theEnvironmental Factor Identi?cation andAssessment Management Procedure, theResource and Energy Management Procedure,theWastewater Discharge Management Procedure, the Exhaust Gas Emission ManagementProcedure, and theEmergency Preparedness and Response Management Procedure. Thesedocuments form the foundation of the environmental management framework in 2024,LAZZEN revised its environmental management framework documents, updating primaryresponsible departments, adjusting applicable scopes, modifying specific departmentalresponsibilities, and incorporating relevant local standards.Currently, LAZZEN is certi?ed under the ISO 14001 Environmental Management Framework.
Environmental Compliance Governance
LAZZEN fully implements ecological and environmental protection initiatives, adhering to the "energy-saving and environmentallyfriendly" compliance management policy. The Company continuously adopts new processes, technologies, and equipment to up-grade or replace high-energy-consuming industrial equipment, prioritizing energy-e?cient and low-consumption products, equip-ment, and services to achieve energy conservation and resource optimization. LAZZEN designs and manufactures HSF (HazardousSubstance-Free) products, actively promoting HSF environmental concepts within its supply chain. LAZZEN continually enhancesthe environmental performance of its products, strategically planning and executing its environmental compliance managementframework to strengthen overall environmental governance e?ciency.
Environmental Compliance Strategy
To address environmental compliance risks, LAZZEN has developed several policy documents, including theEmergency ResponsePlan for Sudden Environmental Incidents, theEmergency Preparedness and Response Management Procedure, theIncident Inves-tigation and Handling Management Procedure, theRisk and Opportunity Management Procedure, andthe Company EnvironmentalAnalysis Management Procedure. In 2024, LAZZEN updated theHazard Identi?cation Management Procedure, adding risk assess-ment methodologies and re?ning its descriptions. TheEmergency Preparedness and Response Management Procedurewas alsorevised to include additional types of natural disasters and changes in regulatory authority names.LAZZEN has established an emergency response team (ERT) led by the EHS Safety Committee. This team consists of departmentheads or designated personnel from various departments. Each department regularly ?lls out and submits theRisk and Opportuni-ty Identi?cation and Assessment Form, while third-party organizations conduct environmental assessments and provide reports tocontinuously optimize environmental compliance and resource management processes.To ensure legal and regulatory compliance, LAZZEN regularly conducts environmental risk assessments, using professional envi-
Environmental Compliance Risk Management
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Type of Environ-mental Incident
Speci?c Environmental
Incident
Environmental Impact and Risk Response
Water PollutionEmergency Incident
?●Exceeding sewage dischargestandards
?●Sewage pipeline leakage causingriver pollution?●River accidents?● Large-scale leakage of the sew-age system
If an accident occurs at the factory's sewage treatment station,wastewater may be discharged directly into Jiaxing United Sew-age Treatment Co., Ltd. without proper treatment. The wastewa-ter may contain excessive levels of CODc, ammonia nitrogen, andheavy metals, exceeding the sewage plant's intake standards,potentially impacting Jiaxing United Sewage Treatment Co., Ltd.'swater qualityAir Pollution Emer-gency Incident
?●Fan failure
?●Terminal treatment device failure
If operations are not halted and repairs are not conductedpromptly, exhaust gas concentrations could increase multipletimes, potentially causing poisoning and a?ecting downwindareas at a considerable distance. Relevant equipment should bereplaced in time to prevent malfunctionsSoil Pollution Emer-gency Incident
?●Leakage during the transfer ofhazardous substances or solidwaste?●Leakage during the storage ofhazardous substances or solidwaste
If a solid waste leakage occurs within the factory premises, emer-gency measures such as closing the rainwater discharge valve,opening the emergency pool, and using emergency materials likesand and cotton cloth can be implemented to contain the impactwithin the factory areaNatural Disasters,Extreme Weather, orAdverse Meteorolog-ical Conditions
?●Natural disasters?●Extreme weather
Based on long-term meteorological data from the company's andthe park's location, the most likely extreme weather conditions inthe area are high temperatures and strong winds. During extremehigh-temperature conditions, LAZZEN implements preventivemeasures against high temperatures and strong winds to mitigateenvironmental risksRisk Analysis for Environmental Incidents"Zero-Waste City" Environmental Awareness CampaignDuring the reporting period, LAZZEN organized an environ-mental awareness campaign themed "Zero-Waste City" forits employees. The event introduced the origins and devel-opment of "Zero-Waste Cities" and "Zero-Waste Factories",helping employees recognize their role as both participantsand beneficiaries of zero-waste factory development. Weemphasized the importance and necessity of adhering tocircular economy principles and green development inproduction and operations, fostering the construction of asustainable and eco-friendly environment.Environmental Awareness Campaign
No.2024 Environmental Compliance Indicators and TargetsAchievement Status
1Hazardous waste environmentally compliant disposal ≥ 1 timeAchieved
Production exhaust emissions (hydrogen cyanide, sulfuric acid mist)comply with GB21900-2008 standards
Achieved
3Fire hazards ≤ 1 incidentAchieved4Chemical leakage incidents ≤ 1 incidentAchieved
LAZZEN 2024 Environmental Compliance Indicators, Targets, and Achievement Status
During the reporting periodThe total environmental investment amounted to RMB
1.7
million. LAZZEN incurred no major administrative penal-ties from environmental authorities due to environmental incidents, with a total penalty amount of RMB
.A total of2,355employees received environmental training. The total training duration was
hours.
Environmental Compliance Indicators andTargets
Energy-Saving Production Area – Fully Automated Silver Electroplating
Production Line, Establishing a "Dark Factory" Model
Paperless O?ce with Electronic OA System
Zero-Waste Factory Awareness Campaign
LAZZEN advocates for green operations and promotes a low-carbon lifestyle, consistently implementing ecological and environmen-tal protection principles in its production and business activities. In the production process, LAZZEN utilizes advanced Italian fullyautomated miniature circuit breaker assembly lines and Asia's third largest automated silver electroplating production line, reducingthe generation and hazardous impact of industrial solid waste while establishing a "dark factory" model to achieve energy conser-vation and consumption reduction. For green o?ce practices, we encourage employees to implement environmental measures bypromoting paperless operations. Meeting noti?cations, schedule management, expense reimbursements, and other processes areall completed through the OA electronic system, further reducing environmental impact and contributing to ecological protection.Additionally, we actively organize environmental training and activities, along with routine environmental awareness campaigns, tostrengthen employees' sense of responsibility for environmental protection.
Green Operations
During the preliminary phase of Hangzhou Bay Super Factory construction, the regional ecological environment was assessed asnon-sensitive, classifying it as a general area. LAZZEN strictly adheres to the Regulations on the Protection of Wild Plants and otherenvironmental laws and regulations, advocating employee awareness of environmental protection. LAZZEN actively conducts envi-ronmental awareness campaigns and strictly follows internal environmental compliance management policies throughout its pro-duction and operations, minimizing negative impacts on biodiversity and the environment.
Biodiversity
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LAZZEN continuously optimizes its resource management system, emphasizing the protection and e?cient use of water resources.LAZZEN implements various water conservation measures, prioritizes the use of eco-friendly packaging materials, and promotesresource recycling initiatives to enhance overall resource utilization e?ciency.
Water Usage Scenarios
LAZZEN strictly adheres to the national policies of resource conservation and environmental protection, striving to establish an envi-ronmentally friendly and green enterprise. By implementing the principles of cleaner production and circular economy, LAZZEN fullypromotes the creation of a water-saving enterprise, advancing towards sustainable development.
LAZZEN conducts water resource risk assessments and management to prevent water wastage and potential environmental im-pacts. To enhance water conservation management, LAZZEN has formulated various regulations, including theAnnual WaterConservation Work Plan,Water Usage Statistics System,Regular Maintenance System for Water-Saving Equipment and Pipelines,andWater Conservation Management Rewards and Penalties System. By combining inspection guidance with performance assess-ments, each department is required to regularly inspect its water usage. The water conservation leadership team conducts threemajor inspections each month to identify any violations or potential water usage hazards, ensuring timely recti?cation or correctivemeasures within a speci?ed period.
The electroplating workshop has adopted a counter?ow rinsing process for secondary waste-water reuse. A newly purchased industrial wastewater ?lter will further enable multi-stagerecycling, increasing wastewater reuse rates and reducing daily pure water consumption. Thesystem can process up to 6 tons of wastewater per day to meet reuse standards.The largest water-consuming unit is the air conditioning and cooling system. The coolingtower has already adopted an advanced closed-loop cooling system. Smart managementsystems have been installed in the ventilation system, and partitions have been added too?ce and production areas to prevent cooling loss, reducing cooling tower circulation andachieving signi?cant water and energy savings.
LAZZEN is considering launching a rainwater collection project to reduce reliance on themunicipal water supply. Once implemented, the system will provide a stable and sustainablewater source for factory landscaping, toilet ?ushing, and ?oor cleaning, especially during dryseasons. Additionally, recycling rainwater will help reduce pollution of natural water bodies.LAZZEN has upgraded workshop restrooms with water-saving valves, reducing fresh waterconsumption by an average of 4,000 m? per year.Smart water meters have been installed at various water usage points to enable real-timemonitoring and management of water consumption across the factory and its branches. Thissystem has successfully identi?ed and resolved multiple leakage issues, signi?cantly reduc-ing water waste. The system's alarm mechanism promptly detects abnormal water usage,preventing potential ?nancial losses.
LAZZEN actively promotes water conservation awareness through various initiatives, includ-ing displaying conservation slogans and organizing water conservation knowledge seminars.Posters and handbooks are distributed to educate employees on water-saving practices.Practical activities encourage employees to adopt water conservation measures in daily op-erations. A "Water Conservation Pioneer" initiative has been established, and strict rewardand penalty systems are in place for individual or departmental water usage compliance.
Water Conservation Improvement Plan
Water Conservation
Plan
Water Conservation MeasuresReuse of Electro-plating Rinse Waste-water
Water ConservationAwareness andEducation
Rainwater RecyclingInstallation of Wa-ter-Saving Valves
Smart Control Ret-ro?t for Air Condi-tioning Systems
Remote MonitoringSystem for WaterUsage
Resource Management
LAZZEN adheres to theWater Law of the People's Republic of Chinaand theWater Pollution Prevention and Control Law, empha-sizing water resource protection, implementing water-saving initiatives, and continuously improving water resource managemente?ciency.LAZZEN relies on two main water sources: municipal tap water and externally purchased steam. Tap water is primarily used forcooling system replenishment, pure water preparation, and domestic needs, while steam is mainly used for heating cleaning tanksin the electroplating process. Due to the signi?cant proportion of water lost through evaporation, the water recycling rate is high,and wastewater discharge volume is relatively low.
Water Resources
LAZZEN has established a comprehensive water measurement and conservation management framework, including theWater UsageMeasurement Management System,Water Conservation and Usage Statistics System,Energy Measurement Equipment ManagementProcedure, andMaintenance and Inspection Management System. Additionally, LAZZEN has formed a Water Conservation LeadershipTeam and a three-tier management network across leadership, departments, and workshop teams. Measures such as "daily inspec-tions, monthly assessments, and incentive-based implementation" ensure accountability for water conservation e?orts.LAZZEN has fully implemented water conservation initiatives by developing a long-term water-saving mechanism. These e?orts havesupported the e?ective execution of water conservation programs. In 2024, LAZZEN successfully applied for and achieved recognitionas a 2024 Zhejiang Province Water-Saving Enterprise and completed the water balance test for industrial enterprises in Jiaxing City.
Water Resource Management
Water Resource Management Strategy
Water Resource Risk Management
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The water resource reuse rate is 99.23%, the indirect cooling water circulation rate is 99.66%, the steam condensate recovery rate is
97.8%, the wastewater reuse rate is 59.7%, and the drainage rate is 43.2%.
Disclosure ItemUnit202220232024
Municipal Water PurchaseTons160,632189,648141,198Total Circulating/Recycled WaterTons——5,016
Total Water ConsumptionTons——146,214
RoHS and Recyclable Markings on Product Packaging
LAZZEN complies with theEnvironmental Protection Law,Water Pollution Prevention and Control Law,Air Pollution Preventionand Control Law,Soil Pollution Prevention and Control Law,Noise Pollution Prevention and Control Law, andthe Pollutant Dis-charge Permit Management Measures. LAZZEN implements pollutant discharge management in accordance with industry-speci-?ed emission standards and total pollutant discharge control indicators.
In accordance with the requirements of the regulatory system and the pollutant dis-charge permit, LAZZEN has established a series of pollutant emission managementframeworks, including theWastewater Discharge Management Procedure, theWasteGas Emission Management Procedure, and theNoise Emission Management Proce-dure. LAZZEN has wastewater treatment facilities and exhaust gas treatment systems,which undergo self-monitoring in strict accordance with pollutant discharge permit re-quirements. Additionally, quali?ed third-party monitoring agencies are commissionedto conduct environmental monitoring. In 2024, all environmental monitoring resultsmet emission standards.Furthermore, LAZZEN conducts risk assessment and analysis of pollutant emissions,formulating corresponding risk response measures and continuously enhancing pol-lutant discharge management and monitoring e?orts.
Pollutant Discharge Permit of Liangxin
(Haiyan)
Water Resource Indicators and Targets
LAZZEN has established management regulations for materialresources, including theProduct Material Scrap ManagementMeasures,Waste Management Procedures,Idle Material Pre-vention and Handling Management Measures,andScrap Han-dling Process Business Guidelines. In 2024, LAZZEN updatedtheProduct Material Scrap Management Measures, addingbranches for finished product scrapping, supplier discountprocessing, and resale of electronic materials. LAZZEN hasbuilt a recycling system for raw materials and packaging ma-terials, proactively assuming responsibility for the recyclingand resource utilization of discarded products. This ensuresthe e?ective circulation of obsolete products between manu-facturers, consumers, recycling companies, and dismantlingenterprises.For material transportation within departments, LAZZEN usesenvironmentally friendly electric handcarts, and all turno-ver tools are reusable plastic containers. Pallets are madeof high-density reusable plastic. The automated sorting andwarehouse storage system minimizes the use of corrugatedpaper, aligning with the green packaging philosophy.
Material Resources
LAZZEN adopts circular economy principles for idle materials and scrapped products, utilizing component dismantling and recy-cling, as well as inventory material discount sales.If materials become unusable due to company-related reasons and need to be scrapped or resold, they can be processed at a dis-counted price through supplier negotiations. LAZZEN follows the Material Scrap Application Process to handle inventory write-o?s.If scrapped products can be sold, they are processed in accordance with theScrap Handling Process Business Guidelines. Addition-ally, LAZZEN provides multiple recycling and trade-in services through its o?cial website and WeChat platform. Discarded productssent to the waste dismantling department are categorized based on component attributes and handed over to specialized third-par-ty organizations for recycling and reuse, promoting a circular economy model.
Circular Economy
Pollutant Emissions
Pollutant Emission Control
No.PollutantEmission TargetAchievement1WastewaterWastewater reuse rate reaching 40%–60%Achieved2Exhaust GasHarmless treatment of exhaust pollutantsAchieved3Noise
Factory noise levels meeting <60 dB during the day and<50 dB at night
Achieved
Pollution Emission Target
LAZZEN has formulated theWastewater Discharge Management Procedure to manage wastewater, conducting regular self-monitor-ing and source inspections. Wastewater is only discharged into the municipal pipeline network after being fully treated and meetingdischarge standards at the sewage treatment station. Each year, a professionally certi?ed third party is commissioned to test thewastewater, with results showing that all indicators are signi?cantly below the limits set by theComprehensive Wastewater Dis-charge Standards.In wastewater treatment, LAZZEN adopts reclaimed water reuse measures. The unit wastewater discharge from the electroplatingline has been reduced from 0.25t/m? to 0.23t/m?, achieving the reuse of high-concentration acidic and alkaline wastewater. Thereuse of silver plating rinse water reduces cyanide consumption, decreases the amount of silver ions in wastewater treatment, andallows silver recovery for reuse. Additionally, the grinding water recycling system reduces wastewater treatment by 6 tons per day,while also reducing grinding ?uid consumption and achieving a recovery rate of over 60%.
Wastewater Treatment
5354
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IndependentAssuranceStatement
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IndicatorIndex
Feedback
andSuggestionsAboutLAZZEN
Full LifecycleService
IndicatorUnit202220232024
Total Wastewater DischargeTon(s)144,568.8170,683124,482
IndicatorUnit2024
Chemical Oxygen Demand (COD)Ton(s)0.116Biochemical Oxygen Demand (BOD)Ton(s)0
Suspended SolidsTon(s)0Ammonia NitrogenTon(s)0.002Total Nitrogen (TN)Ton(s)0.026Total Phosphorus (TP)Ton(s)0.001
pHTon(s)6-9
LAZZEN has implemented multiple air pollution control measures, utilizing puri?cation technologies such as ROC zeolite bed cata-lytic combustion and UV photolysis. During the reporting period, LAZZEN enhanced its exhaust gas collection by installing additionalcollection hoods for newly added positions in workshops involving exhaust emissions, ensuring a "one-position, one-hood" setup tomaximize the collection area. For the DC workshop, the potting exhaust treatment system was upgraded from honeycomb activatedcarbon to granular activated carbon, increasing removal e?ciency by over 15%. Additionally, for VOC-containing exhaust from coatingprocesses, LAZZEN adopted an adsorption-catalytic combustion treatment process, achieving a treatment e?ciency of 99.5%.
Exhaust Gas Treatment Equipment
Measures for Mitigating Excessive Exhaust Emission Risks
Establish Routine Operation
and Maintenance Systemfor Air Treatment Facilities
Assign professional operation and maintenance personnel to conduct regular inspections, main-tenance, and repairs of the facilities. Replace vulnerable components in a timely manner, recordfacility operation parameters and maintenance status to ensure continuous optimal performance.Conduct RegularSelf-Monitoring
Regularly entrust quali?ed third-party testing agencies to conduct comprehensive air quality mon-itoring in accordance with national standards. Ensure the accuracy and reliability of monitoringdata and adjust air treatment processes and operational parameters accordingly.
Enhance EnvironmentalManagement and Emergency
Measures
Strengthen environmental management in production processes, optimize production techniquesto minimize air pollutant emissions. Develop emergency response plans for excessive emissions,such as reducing production loads or increasing air treatment chemical input and actively cooper-ate with environmental authorities in investigations and resolutions.
Wastewater Treat-ment Facilities andEquipment
IndicatorUnit202220232024Total Exhaust Gas Emissionsm?128,642,52077,185,512588,960,000
IndicatorUnit2024
Particulate Matterkg2Total Non-Methane Hydrocarbonskg991.008
VOC Emissionskg3,964.034LAZZEN has formulated theWaste Gas Emission Management Procedure. In 2024, we added new requirements for the collectionand treatment of waste gas from electroplating processes, as well as maintenance regulations for waste gas treatment equipment.Additional guidelines were established for employees working inside exhaust towers, and new local standards from Zhejiang Prov-ince were incorporated into emission regulations.LAZZEN has implemented risk management for waste gas emissions and developed a series of mitigation measures to address therisk of excessive emissions. According to environmental protection acceptance monitoring by a professional third-party agency, allwaste gas emission indicators meet the required standards.
Waste Gas Treatment
LAZZEN has established theNoise Emission Management Procedure.In 2024, we updated the regulations to include the primarynoise-generating equipment and the noise emission standards for the Hangzhou Bay Super Factory.LAZZEN conducts quarterly noise monitoring across the entire facility, setting management targets of <60 dB during the daytimeand <50 dB at night, both of which have been achieved. In terms of noise control measures, we continue to optimize the plant lay-out, select low-noise equipment, enhance equipment maintenance, and implement e?ective noise reduction measures such asvibration isolation and soundproo?ng for high-noise equipment. For example, sound-absorbing cotton is installed inside air com-pressor ba?es to ensure that factory boundary noise complies with emission standards. According to environmental acceptancemonitoring conducted by a professional third-party agency, the factory's daytime and nighttime noise levels meet the require-ments of theEnvironmental Noise Emission Standards for Industrial Enterprise Boundaries.
Noise Management
LAZZEN regularly monitors and inspects soil conditions, prioritizing soil pollution management. All industrial wastewater pipelinesare installed as overhead pipelines to prevent underground leaks that could lead to soil contamination.According to environmental acceptance monitoring conducted by a professional third-party agency, the soil pollutant concentra-tions in the Company's area are all below the screening values for Category II land use speci?ed in theSoil Environmental QualityStandard for Construction Land Soil Pollution Risk Control (Trial) (GB36600-2018).
Soil Pollutants
5556
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Independent
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Feedback
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Full LifecycleService
ImprovingManagementSystems
Establish and re?ne hazardous waste management regulations, de?ning the entire process fromgeneration to ?nal disposal and assigning responsibilities.Enhancing Per-sonnel Training
Conduct regular professional training for hazardous waste management personnel to ensurefamiliarity with waste characteristics, classi?cation methods, packaging requirements, and emer-gency response measures.
Optimizing StorageFacilities
Inspect and upgrade hazardous waste storage warehouses to meet national standards, ensuringleak-proof, loss-prevention, and rain-resistant features.
Strict Supervisionof Transport andDisposal
Select quali?ed and experienced hazardous waste disposal companies, establish detailed con-tracts, de?ne responsibilities, and strengthen transport monitoring.Establishing anEmergency Response
Mechanism
Develop emergency response plans, conduct regular drills, and enhance the company's abilityto handle environmental emergencies to minimize losses and impacts.
Risk Management Measures for Hazardous Waste Leakage
In 2024
ItemUnit2024Total Waste GeneratedTon(s)100.512Total Hazardous WasteTon(s)29.952Total Non-Hazardous WasteTon(s)70.56Hazardous Waste IntensityTon/RMB 10,0000.00008Non-Hazardous Waste IntensityTon/RMB 10,0000.00019
Recycled Waste VolumeTon(s)70.56
LAZZEN's non-hazardous waste recycling rate reached
%.
LAZZEN complies with the Solid Waste Pollution Prevention and Control Law, theGeneral Industrial Solid Waste Storage and Land?llPollution Control Standard, theHazardous Waste Storage Pollution Control Standard, and other relevant regulations to manage waste.Waste Disposal
LAZZEN primarily generates solid waste such as used oil ragsand gloves, hazardous chemical packaging waste, spent acti-vated carbon, laboratory waste liquids, waste oil, and generalpackaging waste. LAZZEN has established theWaste Manage-ment Procedureand theWaste Classification and TreatmentRegulations, which outline compliance requirements and dis-posal processes for general solid waste, hazardous waste, andfood waste. In 2024, these regulations were updated to clarifydepartmental responsibilities and expand the classi?cation ofhazardous waste. LAZZEN ensures that all waste is legally andcompliantly disposed of, preventing harm to the surroundingenvironment and human health while avoiding secondary
National Pollution Source Monitoring Data Management and Sharing
System
Waste Treatment
LAZZEN adheres to the principles of "resource utilization, reduction, and harmless disposal" in handling solid waste, fully imple-menting its environmental protection responsibilities.
Waste Disposal Strategy
No.Waste Disposal TargetAchievement Status1Legal disposal of hazardous waste >1 time/yearAchieved2Zero violations in hazardous waste disposalAchieved3Negative or zero annual growth rate of general industrial solid waste intensityAchieved4Negative or zero annual growth rate of industrial hazardous waste intensityAchieved
Waste Disposal Targets
LAZZEN's general industrial solid waste, including plastic materials, packaging paper, plastic foam packaging, and metal waste, isrecyclable. Every year, LAZZEN entrusts a professional third-party organization with sorting and disposal. The process involves col-lecting waste in workshops, transporting it to the general solid waste warehouse, packaging it, and then delivering it to paper millsfor processing.
General Waste
The Company's hazardous waste includes waste cutting ?uids, hazardous chemical packaging waste, wastewater sludge, and wastepaint packaging barrels. Each year, LAZZEN signs hazardous waste disposal contracts with quali?ed third-party organizations. Theentire waste transfer process is documented and veri?ed through the national solid waste management system.LAZZEN has implemented risk management measures for hazardous waste. These measures address potential risks associatedwith the collection, storage, transportation, and disposal of hazardous waste, such as leakage, soil and water contamination, andsevere environmental pollution incidents.
Hazardous Waste
pollution. Every year, the Company updates and submits its hazardous and solid waste management plans for approval by the localenvironmental authorities. Subsequent hazardous waste transfers are recorded and reported via the system platform.
5758
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Supply ChainResponsibilityManagement
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Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformance
Table
IndicatorIndex
FeedbackandSuggestionsAboutLAZZEN
Full LifecycleService
LAZZEN has established various chemical management regulations, including theChemical Management Procedure,"Five Pairs"Management Framework for Highly Toxic Chemicals (Explosive and Drug Precursor Chemicals) in the Electroplating ManufacturingDepartment,Safe Operating Procedures for Hazardous Chemicals in the Electroplating Manufacturing Department, andSafety Pro-cedures for Handling and Unloading Hazardous Chemicals in the Electroplating Manufacturing Department.LAZZEN has a dedicated hazardous chemical warehouse where chemicals are stored in designated zones based on their classi-?cation. The entire process, from storage and retrieval to usage, strictly follows the management requirements for highly toxicsubstances. Personnel responsible for managing highly toxic chemicals are required to have a thorough understanding of theirhandling procedures. Additionally, the storage management of highly toxic chemicals strictly adheres to the "Five Pairs" System,which includes, dual-person receiving and dispatching, dual-person bookkeeping, dual-person dual-lock storage, dual-persontransportation and dual-person usage.LAZZEN's hazardous chemical management is directly integrated into Zhejiang Province's Integrated Smart Governance Platformfor Key Materials (Highly Toxic Chemicals), allowing for government-linked oversight. LAZZEN conducts regular monitoring andproactively reports safety hazards, actively undergoing government inspections. It submits self-inspection risk points on the safetyproduction platform every month and ensures timely recti?cations. Furthermore, LAZZEN actively organizes training and assess-ments on hazardous and highly toxic chemicals, conducts emergency response drills, and strengthens employees' awareness ofsafety measures and risk management.
Emergency Drill for Hazardous Chemical Leakage in the Electroplating Workshop
During the reporting period, LAZZEN conducted an emergency drill forhazardous chemical leakage in the electroplating workshop. The drill simu-lated a malfunction of the water replenishment valve, causing the cyanidetank to overflow, with the liquid spreading to the adjacent spot-weldingworkshop. Relevant departments followed emergency response protocolsto handle the incident in compliance with safety regulations. All personnelinvolved in the drill followed instructions and managed the situation safely.Each team member ful?lled their respective duties, successfully completingall drill tasks. This exercise signi?cantly improved the e?ciency of the emer-gency response team in handling hazardous chemical leakage incidents.
Emergency Drill for Leakage in the Electroplat-
ing Workshop
Integrated Smart Governance Platform for Highly Toxic Chemicals
Highly Toxic Chemical Management Training
Emergency Drill for Anti-Theft and Anti-Robbery of Highly Toxic, Precursor, and Explosive Chemicals
Company Chemical Safety Training
Chemical Management
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Supply ChainResponsibilityManagementAboutLAZZEN
Supporting of the UN SDGs
Supply Chain Responsi-bility Management
LAZZEN upholds the concept of sustainable development by promoting cor-porate sustainability through supply chain management initiatives and hasestablished a closed-loop lifecycle management framework for suppliers,enhancing supply chain collaboration e?ciency while implementing di?er-entiated supplier management measures. In terms of environmental protec-tion, LAZZEN conducts regular reviews of suppliers' environmental initiatives,comprehensively evaluates their environmental performance, and builds adigital management framework to advance the development of a green sup-ply chain, providing valuable insights for the industry's sustainable growth.
Concept
?●
Supplier Management
?●Green and SustainableSupply Chain
?●
Building a Stable andSecure Supply Chain
Our Actions
Key Performance
% supplier compliance with the Supplier Integrity Agreement
% of suppliers have signed contracts that include environmentaland labor requirements
% suppliers have undergone social impact assessments
% suppliers have undergone social impact assessments
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AboutLAZZEN
Honors in
2024
Digital-Intelligent
New QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
Indicator
Index
Feedback
andSuggestions
LAZZEN upholds the principles of sustainable development and is committed to building a stable and responsible supply chain.We have established a series of regulatory documents, including theSupplier Admission Certi?cation Management Procedure,Supplier Tiered and Graded Management Measures, andSupplier Performance Management Measures, and have structured a Pro-curement Committee (PC) governance framework. In 2024, LAZZEN optimized theProcurement Committee Management System
and updated theSupplier Social Responsibility Commitment Letter, incorporating provisions related to human rights, environmen-tal safety, and relevant laws and regulations. These e?orts drive the standardization and e?ciency of supplier certi?cation, audit-ing, and rating processes.By re?ning supplier admission, performance evaluation, and tiered management rules, LAZZEN has enhanced the closed-loop li-fecycle management of suppliers, improved supply chain coordination and fostered a sustainable procurement platform. LAZZENhas also formulated a supplier performance assessment framework, evaluating suppliers across four key dimensions—business,delivery, quality, and technology—to facilitate tracking and control. Suppliers are categorized into ?ve levels: Strategic Suppliers,Preferred Suppliers, Quali?ed Suppliers, Restricted Suppliers, and Eliminated Suppliers. This di?erentiated management approachhas improved e?ciency and earned LAZZEN A-grade supplier certi?cation from multiple partners.
As part of its ongoing digital transformation of supply chain management, LAZZEN obtained Shanghai Green Supply Chain Man-agement Enterprise Certi?cation in 2023 and advanced the SMS Performance System Optimization Project and Quality QMS & MESOptimization Project in 2024, reducing overall product delivery cycles by 35% and signi?cantly enhancing supply chain e?ciencyand responsiveness.
Quality Management System Certi?cation (ISO 9001)Environmental Management System Certi?cation (ISO 14001)Quality Management System Certi?cation (IATF 16949)
Occupational Health and Safety Management System
Certi?cation (ISO 45001)Intellectual Property Compliance Management System
(GB/T 29490)
Hazardous Substances Management System Certi?ca-
tion (IECQ QC 080000)Information Security Management System Certi?cation
(ISO/IEC 27001)
Energy Management System Certi?cation (ISO 50001)
Supplier System Certi?cation List
Supplier System Certi?cation List
Chief Executive O?cerGeneral Manager of Supply
Chain System
Director of Supply ChainQuality and OperationsGeneral Manager of SupplyChain System
General Manager of Strategyand Finance SystemGeneral Manager of Opera-tions and Human ResourcesSystemGeneral Manager of IntelligentTerminal and DC ContactorProduct Line System
2024 Procurement Committee Organizational Structure
Supplier Management
Sustainable Supply Chain Governance
LAZZEN is dedicated to building a green and sustainable supply chain. In terms of management strategy, the company assigns re-sponsible experts to develop tailored strategies for di?erent product categories.LAZZEN has established green supply chain development objectives and formed a dedicated Green Supply Chain ManagementDepartment. LAZZEN has also developed a Green Information Platform, integrating fundamental information management, greenproduction, green material management, supplier management, green design, and green logistics into a comprehensive digitalsystem.
Sustainable Supply Chain Strategy and Goals
LAZZEN collaborates with suppliers to comply with international environmental standards and corporate social responsibilityregulations. The Company mitigates supply chain risks through the measures. Including diversi?ed supplier strategy, regular sup-plier performance evaluations, emergency response planning, compliance agreements, enhancing supplier communication andcooperation, supplier development and improvement programs and implementation of advanced supply chain managementframeworks. These initiatives ensure stable business operations and sustainable development, strengthening LAZZEN's resilienceagainst market ?uctuations and unforeseen events. By maintaining an industry-leading position and a strong corporate reputation,the company secures a solid foundation for long-term growth.
Sustainable Supply Chain Risk Management
In 2024
Total number of suppliers in 2024:
Supplier Integrity Clause signing rate:
%Percentage of suppliers with contracts includingenvironmental and labor requirement clauses:
%Number of suppliers certi-?ed with ISO 9001:
Number of suppliers as-sessed for social impact:
Number of suppliers certi-?ed with ISO 14001:
Number of suppliers assessedfor environmental impact:
Sustainable Supply Chain MetricsGeneral Manager of Marketingand Intelligent Power Distri-bution Product Line SystemGeneral Manager of Low-Volt-age Component Product Lineand Technical Quality System
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AboutLAZZEN
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-
being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
To protect the rights and interests of both parties and ensure compliance in supplier management, LAZZEN requires suppliers tosign theCon?dentiality Agreement, Integrity Cooperation Agreement, andEnvironmental (RoHS) Agreement. These agreementshelp safeguard fundamental rights and promote responsible business practices. During the supplier admission process, LAZZENcomprehensively evaluates environmental, social, and governance (ESG) factors. Suppliers are required to provide theSupplierSocial Responsibility Commitment Letter, Supplier Environmental Status Survey and Evaluation Form, andEnvironmental and Oc-cupational Health and Safety Requirements Notice.In terms of environmental protection, LAZZEN regularly reviews suppliers' environmental measures. To thoroughly assess environ-mental performance, LAZZEN has established an independentEnvironmental System Audit Form, which evaluates suppliers acrosssix key aspects: management systems, R&D, procurement, incoming material inspection, production, and logistics. This detailedassessment covers environmental management systems, hazardous substances control, and restricted materials to build a respon-sible supply chain system.LAZZEN has implemented a supplier lifecycle management framework, a fully digitalized workshop management framework,an equipment lifecycle management framework, and a comprehensive quality management framework. These digital and pro-cess-based systems help reduce material consumption, improve energy e?ciency, monitor the hazards of raw and auxiliary materi-als, and minimize waste generation. Additionally, LAZZEN has promoted the use of standardized returnable transit boxes, replacingtraditional cardboard packaging for certain materials, further advancing sustainable packaging and delivery solutions.
Awards and Honors
Shanghai Green Supply ChainManagement Certi?cation
Best Energy-Carbon Syn-ergy Exploration Trophy
Best Energy-Carbon Syner-gy Exploration Certi?cate
To ensure supply chain security, LAZZEN incorporates dual-source backups for critical materials and maintains both short-termand long-term supplier backup lists and also prioritizes contractor safety management by conducting regular safety training andsupervision, including lean improvement and quality enhancement guidance for suppliers. Contractors are required to complywith occupational health and safety regulations during projects. Furthermore, LAZZEN performs regular safety inspections of con-tractors' facilities and equipment to prevent accidents, ensuring a secure and stable supply chain.
ItemUnit202220232024Total Number of SuppliersNumber271257272Suppliers Signing the Integrity Agreement%—100100Percentage of Suppliers Signing Contracts with Environ-mental & Labor Requirements
%—100100Number of Suppliers Assessed for Social ImpactNumber—8383Number of Suppliers Assessed for Environmental ImpactNumber—120120Number of Suppliers Certi?ed for ISO 9001Number253241256Number of Suppliers Certi?ed for ISO 14001Number120120125Number of Suppliers Certi?ed for ISO 45001Number838383Number of Suppliers Identi?ed with Actual or PotentialMajor Negative Social Impact
Number000Number of Suppliers Identi?ed with Actual or PotentialMajor Negative Environmental Impact
Number000Total Number of New SuppliersNumber181515Percentage of Locally Sourced Suppliers%—1313Number of Suppliers TerminatedNumber—290
Launch of the Lean Quality Improvement InitiativeDuring the reporting period, LAZZEN launched a Lean Quality ImprovementInitiative, leveraging lean management tools and methodologies to preciselyidentify and eliminate ine?ciencies in the production process. This initiativeaimed to comprehensively optimize work?ows, leading to signi?cant improve-ments in both product quality and production e?ciency.To address identified issues, the Company developed 20 targeted improve-ment measures, covering areas such as equipment maintenance, operationalstandardization, and employee training. So far, 12 of these measures havebeen implemented.
Lean Quality Improvement Initiative
Defect rate reduction:
from 4.5% to 1.2%
Shortened produc-tion cycle: from 12days to 7 days
Lower productioncosts: reduced by 5%
Comprehensive leantraining: 3 company-widesessions, resulting in 30improvement suggestions
Green and Sustainable SupplyChain
To ensure an open and transparent procurement process, LAZZEN requires suppliers to sign anIntegrity Cooperation Agreement,which explicitly regulates procurement practices. An audit and reporting hotline is also provided for supervision. Additionally, dur-ing holidays, LAZZEN issues integrity initiatives to all suppliers, ?rmly prohibiting any form of unethical behavior and maintaining aclean procurement environment.
Transparent Procurement
Building a Stable and Secure SupplyChain
Supporting of the UN SDGs
Full Lifecycle Service
LAZZEN upholds the philosophy of "Customer Success at the Core, Quality asOur Honor", striving to become synonymous with industry-leading excellence.Certi?ed for its Information Security Management System (ISMS), the Compa-ny has strengthened its defenses by establishing a comprehensive frameworkthat covers device, network, data, and software/hardware security. This sys-tem integrates advanced security permission management capabilities andenforces granular data access controls. Additionally, LAZZEN has developedcomprehensive contingency plans for information security emergencies andconducts regular network risk assessments, information security training, andemergency drills. These initiatives ensure the protection of customer datawhile enhancing employee awareness of security and privacy practices.
Concept
?●
Product Quality
?●
CustomerService
?●Customer Privacy andSecurityOur Actions
Key Performance
% of the business scope is covered by quality management systemcerti?cationThe product inspection pass rate has increased to
99.1
%We conducted
information security audits
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Honors in
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Digital-IntelligentNew QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full Lifecycle
Service
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformance
Table
IndicatorIndex
FeedbackandSuggestions
LAZZEN adheres to the quality philosophy of "CustomerSuccess at the Core, Quality as Our Honor", "Building QualityCompetitiveness to Become the Industry Benchmark for HighQuality", "Compliance with Processes, Doing It Right the FirstTime, and Continuous Improvement", and "Establishing IPD(Integrated Product Development)-Driven Quality Require-ments and Standards to Form a Complete, E?cient, and Adap-tive Quality Management System". LAZZEN upholds a qualityculture centered on "Prevention First, Self-Management, DoingIt Right the First Time, and Continuous Improvement", with avision to achieve industry-leading competitiveness in productquality and strive to establish LAZZEN as the industry bench-mark for high quality. Through relentless innovation and opti-mization, LAZZEN aims to enhance product quality and deliverexceptional products and services to customers and society.Currently, the Company is certi?ed under the ISO 9001 QualityManagement System.
Quality Strategy and Goals
StrongExecution
DeepPromotion2024
Full integration ofproduct qualitymanagement withcorporate manage-ment
2025
Product qualityreaches indus-try-leading levels
EstablishingBenchmark
2026Product qualityachieves industrybenchmark stand-ards
Quality Training
Quality Incentive Evaluation ActivitiesKey Performance Indicators
Quality management framework certi?cation coverage:
%Product sampling pass rate improved from
96.6
% in 2023 to
99.1
% in 2024.
Product Quality
Quality Management
No.KPI Target1Customer Audit First Pass Rate100%2Customer Complaint Reduction Rate-30%3PONC (Price of Non-Conformance) Reduction Rate-6%4RoHS Complaint Issues at Client End05Defective Batch PPM Reduction Rate for Materials-25%6Incoming Material Quali?cation Rate98.50%7First Pass Rate for FAI (First Article Inspection)48.50%8Reduction Rate of Level 3 Quality Issues-30%9RoHS Non-Conformance Incidents for Incoming Materials15
Quality Management Indicators and Targets
In 2024, LAZZEN implemented a continuous quality manage-ment mechanism, supplemented by QCC (Quality ControlCircle) initiatives and improvement recommendations to op-timize business processes, strengthen project quality control,and establish a TOP Issues Improvement Initiative.
Product QualityImprovement
Key Quality
Improve-ment Mea-
sures
?●
Optimize business processes
?●Strengthen quality control for pro-jects
Improve the quality of new prod-uct projects
?●Establish a special project for TOPissue improvement
Improve the quality of mass-pro-duced products
?●
Align quality standards and improvechange e?ciency?●
Improve material quali?cation rates byproviding guidance to key suppliers
Enhance the quality level ofmaterials
?●
Re?ne inspection standards and sam-pling plans
?●
Enhance inspection e?ciency andquality
Improve the quality of materialinspections
?●Establish a core customer serviceteam and develop customized servicesolutions.
Increase satisfaction amongcore customers
?●Establish periodic reliability inspectionrules and processes and implementperiodic reliability testing services.
Enhance compliance testing formass-produced product quality
To strengthen quality risk control, LAZZEN conducts incoming material inspectionmanagement through QMS to ensure the quality of incoming materials. On-site qualityrisks are effectively controlled through first article inspection, in-process inspection,warehouse entry inspection, and pre-shipment inspection. Regular monthly qualitymeetings and annual management review meetings are held to assess product qualityrisks, the performance levels and trends of quality objectives, and to determine qualityimprovement directions. At the same time, by conducting regular internal audits andinspections to identify areas for improvement in quality management across businessdepartments, we promptly follow up on non-conformity corrections and enhance theconsistency of operations and quality management processes, thereby comprehen-sively improving the Company's quality management level.
Quality Risk Monitoring
6970
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AboutLAZZEN
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Digital-IntelligentNew QualityProduction
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Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformance
Table
IndicatorIndex
FeedbackandSuggestions
Product Recall Process
In 2024The number of productsrecalled was
The sales revenue affectedby recalled products was
The number of productrecall incidents was
LAZZEN After-Sales Service Five-Star Certi?cationCustomer Appreciation Letter
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尊敬的上海良信电器股份有限公司领导：
您好！
在此，我谨代表我司，向贵公司长期以来给予的坚定支持与深切合作表达最深切的感激之情。上海良信电器股份有限公司不仅是我司的重要合作伙伴，更是我们信赖与依靠的坚强后盾。在此，特别向贵公司的售后服务团队致以最诚挚的谢意。回首过去的一年，贵公司售后服务人员（祝曲波、彭悠忧、陈康康），以精湛的专业技能和高效的服务态度，为我司风电光伏储能项目筑起了一道坚实的售后保障防线。无论是烈日炎炎的盛夏，还是寒风凛冽的严冬，面对每一次紧急维修任务，贵公司售后团队总能迅速响应，精准施策，及时有效地解决各类故障，确保了我司工程项目的平稳运行与持续发展。尤其值得一提的是，贵司售后工作人员彭悠忧在乌兹别克斯坦卡州现场，因断路器故障导致无法合闸，他迅速响应并紧急从国内带备件前往现场，处理问题，同时又现场指导培训我们国外服务商人员对断路器的故障判断，以及对断路器的拆解组装。这样的事情还有很多，他凭借他丰富的经验及专业素养，多次在关键时刻力挽狂澜，为我司工程项目的顺利推进提供了不可或缺的助力，成为了我们学习的榜样和典范。此外，贵公司售后服务团队在长期为我司提供固定且全面的售后服务过程中，积累了丰富的实践经验，能够精准分析并总结常见故障类型，与我司工作人员共享高效解决方案，实现了沟通的无缝衔接与服务的精准对接，充分展现了贵公司服务的专业性与高效性。
展望未来，我司衷心希望与贵公司继续深化合作，携手并进，共同开创更加辉煌的明天。我们坚信，在双方的共同努力下，我们的合作关系必将更加紧密，发展前景必将更加广阔。
再次感谢贵公司及其售后服务团队的辛勤付出与无私奉献！期待在未来的日子里，我们能够继续携手共进，共创佳绩！
阳光电源股份有限公司风能客户服务中心2024年12月18日
In 2024LAZZEN organized a total of three quality incentive evaluation activities, with
candidates submitted. After eval-uation, ?ve individuals received ?rst-level incentives,
received second-level incentives, and 127receivedencouragement awards.The Company conducted a total of
quality training sessions, including
internal instructor-led sessionsand six sessions conducted by external instructors.
?●
Customers submit quality replacement requests, complaints, and returnapplications.
?●Non-quality returns: Information is audited and processed to issue re-call notices;Quality-related returns: Information is audited, recall noticesare issued, and on-site after-sales service is initiated.
?●
Conduct a preliminary inspection of the returned products.
?●Con?rm the quality analysis and handling plan for the returned prod-ucts. Based on three categories of quality issues—safety and majorimpact issues, batch issues, and general issues—decisions are madethrough meetings. Conduct a meeting for decision-making, completeproduct recall lists and notices, and initiate the recall process.?●Issue rework/repair plans for returned products and ship as needed.
?●Disassemble or dispose of the returned products.
?●Count and con?rm the quantity of returned products.
In 2024The overall customer satisfaction score was
93.11
.
LAZZEN has established management systems such as theCustomer Return and Recall Management Procedureand theNon-Con-forming Product Management Procedure, creating a comprehensive after-sales issue resolution process and emergency responseplan. These ensure that both standard and sample order returns and recalls are handled promptly, e?ectively, and reasonably,protecting both the Company's interests and the legitimate rights of customers. In 2024, LAZZEN revised theCustomer Return andRecall Management Procedure.
Product Recall
LAZZEN has established a comprehensive customer service system and an after-sales complaint handling mechanism to continu-ously enhance customer satisfaction. Additionally, LAZZEN strictly regulates distributor cooperation and actively organizes trainingprograms to strengthen standardized management and improve market competitiveness.
Customer Service
To further improve customer service quality, LAZZEN has focused on building a well-structured management framework. Thissystem includes a preemptive quality issue escalation and resolution mechanism, as well as an after-sales customer complainthandling mechanism. Through preventive management and rapid response measures, LAZZEN ensures that e?ective actions aretaken before issues arise and that any problems are swiftly resolved. This approach provides customers with more reliable andhigh-quality products and services, ultimately enhancing customer satisfaction.The Customer Complaint and After-Sales Handling Management Procedureoutlines the responsibilities of distributors/offices,the Customer Technical Service Department, various technical support departments, the Process Quality Department, and otherrelevant departments. We also set clear guidelines for record-keeping and follow-up actions to ensure a structured and e?cientcustomer service process.
Customer Service Management
2023
Score
2024
92.28
93.11
Year
7172
About This
Report
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
2024 "Star Plan" Dealer After-Sales Elite Training
In 2024, LAZZEN launched a 5-day"Star Plan" dealer after-sales course.The course covered product knowl-edge training on molded case circuitbreakers, dual power supplies, con-trol isolation switches, frame andmicro-circuit breakers, includingtheoretical learning, practical opera-tions, fault case sharing, and exami-nations.
2024 "Star Plan" Dealer After-Sales Elite Training Class
Honors and Awards
2024 Strategic Partner of theChina Survey and Design Asso-
ciation Electrical Branch
2024 Excellent Supplier of Vertiv
Technology
2023 Outstanding Partner of SungrowPower Supply Co., Ltd.
2024 Quality Supplier of ChinaSouthern Power Grid
Shuoguang Award - PreferredPartner in Government Pro-
curement for Construction
2023 Best New Supplier Award
of Goldwind
Best Service Award at theInovance Technology Supplier
Conference
2023 Best Collaboration Award
of Hopewind
Customer Service Honors and Awards
LAZZEN strictly adheres to national laws and regulations, including the Advertising Law, in managing the promotion of its productsand services and develops appropriate promotional content and marketing methods for its products and services. LAZZEN hasformulated a Dealer Manual that speci?es areas of dealership, product pricing and sales conditions, after-sales service and guar-antees, ensuring that cooperation between the dealers and the Company is conducted on a clear and fair basis. This helps build astable and win-win dealer network, improving market competitiveness and achieving mutual development goals.In 2024, LAZZEN conducted 25 channel policy brie?ngs covering more than 230 dealers,15 LCM system training sessions and 13 of-?ine brie?ngs on performance indicator adjustments.
Channel Policy Brie?ngs
Responsible Marketing
7374
About This
Report
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full Lifecycle
Service
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
LAZZEN strictly follows relevant laws and regulations, such as theData Security Lawand theCybersecurity Law, to strengthen its information securitydefenses comprehensively. LAZZEN has established an information security management framework covering key areas such as equipment security,network security, data security, and both software and hardware security, ensuring multi-dimensional protection for information security. The internaldigital platform is equipped with advanced security permission management functions to precisely implement data access control and permission allo-cation, e?ectively safeguarding data security and privacy. LAZZEN has obtained ISO 27001 Information Security Management System certi?cation.LAZZEN has established a comprehensive contingency plan for information security emergencies, covering critical domains such as network risk assess-ments, information security training, and simulated exercises. We conduct regular network risk assessments, systematically identifying and evaluatingpotential security threats throughInformation Security Risk Assessment FormsandAnnual Information Security Planning Documents. Based on theseevaluations, risk levels and impact scopes are determined, and corresponding response measures are formulated. To reinforce employees' awarenessand technical pro?ciency, we organize mandatory information security training programs aligned with industry best practices. Additionally, quarterlysimulated security breach drills are conducted to validate the e?cacy of emergency protocols, ensuring swift and coordinated responses to incidents.This proactive approach guarantees the secure, stable, and uninterrupted operation of business-critical systems.LAZZEN has implemented a multi-layered information security control framework, incorporating technologies such as aTrust VPN, WAF (Web ApplicationFirewall), situation awareness systems, and enterprise-grade antivirus software, to comprehensively safeguard data, software/hardware, networks, anddevices. Together, these measures form a robust barrier for information security and privacy protection.
Multi-layered Information Security Protection SystemRed Team Penetration Testing at LAZZENTo validate the e?ectiveness of its security defenses, LAZZEN conducted Red Team pen-etration testing to identify vulnerabilities and weaknesses in its security infrastructure.This initiative enabled the Company to develop improvement plans and mitigate poten-tial security risks. Validated through simulated adversarial exercises, LAZZEN's securitydefense architecture demonstrated the capability to pinpoint attack sources, identifymalicious actors, and successfully block attack attempts, ensuring the security and sta-bility of business-critical systems.
In 2024
LAZZEN conducted
information security audits
2024 LAZZEN Partner Summit: "Intelligence & Strategy,
Shared Growth & Success"
LAZZEN Joins as a Council Member of theCampus Service Development Council (2024)
Symposium on Hospital Electrical Safety & Smart Fa-cility Management, Discussing Innovative Solutions toElevate the Smart Healthcare Portfolio
"Insight to Innovation, Collaboration for Impact" SeriesIn 2024, under the theme "Insight to Innovation, Collaboration forImpact", LAZZEN organized 16 nationwide events covering fieldssuch as smart power distribution, intelligent living solutions, energystorage, wind power, and electrical safety in healthcare facilities.From Ningbo to Xiamen, Beijing to Zhuhai, Shanghai to Tianjin, andthe Xiong'an New Area, LAZZEN's footprint extended across China.Through brand salons, technical seminars, product showcases, andexecutive round tables, the Company engaged in in-depth exchang-es with industry experts, academic institutions, and enterprisepartners. These events focused on sharing cutting-edge practicesin new energy technology applications, smart energy systems, andgreen hospital construction, while jointly exploring emerging indus-try trends and technological advancements.
Exclusive Smart Energy Roundtable at the Hangzhou Bay Super
Factory
Data Security: Ensure the security of end-user devicesdevices through Leagsoft's Access Control and DesktopManagement Systems and Sangfor's Internet BehaviorManagement System and establish data backup andrecovery mechanisms, including core business databackup in the headquarters server room, an off-sitedisaster recovery data center, and regular disaster re-covery drills to ensure high availability and stability ofdata.Network Security: Leveraged Sangfor Situation Aware-ness System for real-time monitoring and analysisof internal network threats, enabling timely incidentresponse to maintain a secure internal environmentand enforced switch ACL policies, ?rewalls, and bastionhosts to isolate production zones, office zones, andinternet access points, ensuring secure access and au-ditability for critical business systems
Infrastructure Resilience: Equipped data centers with?re suppression systems, UPS power supplies, and cli-mate control systems (constant temperature/humidity)and implemented strict access controls, emergencyprotocols for catastrophic failures, and regular drills toguarantee uninterrupted operation of business-criticalsystems.
Software and Hardware Security: Implemented en-terprise-grade ESCT antivirus software for centralizedthreat detection and removal and utilized Leagsoft'sUniDesk system to control physical interfaces of termi-nal devices, preventing unauthorized external deviceaccess.
Customer Privacy and InformationSecurity
Supporting of the UN SDGs
Sustainable ComplianceGovernance
LAZZEN adheres to the philosophy of sustainable development, guided byParty-building principles, strictly complies with laws and regulations, andcontinuously improves corporate governance mechanisms. The Companystrengthens risk control and compliance management, fosters an ethicalwork environment, and promotes adherence to business ethics among sup-pliers and distributor partners, contributing to a healthy and orderly commer-cial ecosystem.
Concept
?●Sustainable Develop-ment Management
?●
CorporateGovernance
?●BusinessEthics?●Risk Control and Compliance
Our Actions
Key Performance
LAZZEN conducted one training session for the newly appointed ESG Com-mitteeThe Company organized
investor communication activitiesNo cases of corruption lawsuits have occurred
7778
About ThisReport
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-Intelligent
New QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformance
Table
Indicator
Index
FeedbackandSuggestions
Guided by ESG principles, LAZZEN remains steadfast on its sustainable development path. It actively enhances communicationand collaboration with stakeholders, incorporates diverse perspectives into decision-making, and ensures transparency in its sus-tainability strategies.
Aligned with the national carbon peaking and carbon neutrality goals, LAZZEN integrates ESG practices into daily operations underthe working guidelines of "Market-Driven Growth, Product Leadership, Quality & E?ciency Enhancement, and Performance Orien-tation". LAZZEN continuously re?nes its ESG strategy, implements targeted initiatives, and strives to maximize environmental andsocial contributions while achieving economic value.
LAZZEN has established a three-tier ESG management frame-work comprising governance, management, and executionlayers. During the reporting period, the Company restructuredits Sustainability Committee to optimize work?ows and ensurethe e?ective achievement of ESG objectives.
During the reporting period
LAZZEN conducted one training session for the new-ly appointed ESG Committee.
In developing its ESG management framework, LAZZEN systematically identi?es ESG-related risks and opportunities tied to busi-ness operations. Through risk inventories and materiality assessments, the Company clari?es risk impacts and root causes, em-beds ESG risk management into corporate governance, and enhances risk mitigation capabilities to ensure timely and e?ectiveresponses.
LAZZEN prioritizes stakeholder rights and demands, maintaining close two-way communication and standardizing ESG informa-tion disclosure processes to address key concerns. By actively incorporating stakeholder feedback, the Company integrates sus-tainability into its operations and strategic planning, driving progress toward long-term ESG goals.Stakeholder GroupsTopics of Interest Related to ESGEngagement and ActionsInvestors and share-holders
?●Corporate governance
?●Risk management?●Information disclosure?●R&D innovation
?●Earning release briefing Improvingbusiness performance
?●Enhancing R&D and innovation
Government andRegulators
?●Compliance with laws
?●Sustainable development
?●Anti-corruption?●Employee rights protection?●Social welfare
?●Daily communication?●Legal employment?●Social welfare
Customers
?●Product quality?●Customer service?●Customer privacy protection
?●Improving product quality?●Timely resolution of customer issuesSuppliers
?●Responsible supply chain management?●
Stable and secure cooperative relation-ships
?●Contract compliance in accordancewith laws?●Cooperation with integrity?●Improving systems and policiesEmployees
?●Employee Employment?●Employee career development?●Occupational health?●Work safety
?●Employee rights protection?●Enhancing communication channels?●Employee training and skill develop-ment?●Ensuring work safetyCommunity
?●Green production?●Community Welfare
?●Social welfare
?●Active communication and engage-ment with the community
Environmental
?●Environmental compliance management?●Resource management
?●Pollutant and waste emission manage-ment
?●Chemical management
?●Environmental information disclosureand auditing
?●Green factory
2024年公司可持续发展领域所获奖项
Awards and Honors
China Listed Companies Association
2024 Best Practice Case Award forSustainable Development of Listed
Companies
Sustainable Development Manage-ment
ESG Philosophy
ESG Governance Structure
ESG Risk Identi?cation
Stakeholder Communication
Southern Metropolis Daily2024 ESG InnovationPioneer Enterprise Award
Awards and Honors
7980
About ThisReport
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-
being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
Feedback
andSuggestions
In accordance with theCompany Law, Securities Law,and other relevant laws and regulations, LAZZEN has established an internalcontrol system for corporate governance, centered around theArticles of Association,with detailed guidelines such as theGeneralMeeting of Shareholders Rules, Board of Directors' Meeting Rules,andBoard of Supervisors Rules.This structure forms a deci-sion-making and operational system with the General Meeting of Shareholders, Board of Directors, Board of Supervisors, and themanagement layer as the main bodies.During the reporting period, LAZZEN revised certain provisions of the Articles of Association, improving governance clauses such asthose for the General Meeting of Shareholders, Board of Directors, and Board of Supervisors. The Company continually improvesits governance structure, standardizes operations, and enhances the quality of corporate governance, providing a favorable man-agement decision-making environment and strong support for the Company's standardized development.During the reporting periodLAZZEN organized
General Meeting of Shareholders
LAZZEN held
Board of Directors Committees meetings
LAZZEN held
Board of Directors meetingsLAZZEN organized
Board of Supervisors meetings
LAZZEN Material Issue Matrix
Energy Use and Resource Utilization
Clean Technology Opportunities
Circular Economy
Environmental ComplianceManagement
Climate ChangeResponse
Pollutant Emissions and Waste
Employee Training and Development
IndustryCollaboration
Occupational Health and Safety
Data Security and Customer PrivacyCorporate Governance
EnvironmentalSocialCorporate Governance
Impact Importance - Positive Impact
Impact Importance - Risk
Product Quality and Customer Service
Community Welfare
DigitalDevelopmentR&D Innovation andIntellectual Property
Employee Employment and Rights
Sustainable Supply Chain
Risk Compliance
ESG GovernanceTax RiskBusinessEthics
LAZZEN strictly adheres to laws and regulations to ensure the legal and compliant operation of its corporate governance structure.It places great importance on information disclosure, ensuring the authenticity, accuracy, and timeliness of the information, safe-guarding investors' right to know, and communicating with investors through multiple channels to enhance their understandingand trust in the Company. Additionally, the Company adheres to the leadership of the Party, fully utilizes the political core role ofthe Party organization, and ensures that the company moves in the right direction of development.
Corporate Governance
Based on the results of communication with various stakeholders and the own operational conditions, along with excellent industrycases, LAZZEN conducted in-depth research on the Shenzhen Stock ExchangeSelf-Regulatory Guidelines No. 17 for Companies Listedon Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation), Self-Regulatory Guidelines No. 3 for Companies Listedon Shenzhen Stock Exchange – Sustainability Report Compilation,andGRI Sustainability Reporting Standards,among other relatedregulations. With reference to expert opinions and suggestions, the Company ultimately determined material issues matrix for 2024.
Material Issue Analysis
Board Structure and GovernanceOrganizational Structure
Material Issue Analysis Process
Disclosure
?●
Finalize the 2024 materiality matrix based on the assessment results and disclose it after approval bythe Board of Directors.
MatrixConstruction
?●
Evaluated ?nancial importance and impact importance based on questionnaire feedback, expert in-sights, and industry benchmarks to determine the material issues assessment results.
Evaluation
?●Assessed the importance of issues through ongoing stakeholder engagement in daily operations andcentralized questionnaire distribution.
?●Collected 113 valid questionnaire responses
Identi?cation
?●Conducted a retrospective analysis of the previous year's materiality topic pool by integrating Stockexchange regulations, industry development trends, and company-speci?c operational performance.
8182
About This
Report
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformance
Table
IndicatorIndex
Feedback
andSuggestions
During thereporting periodLAZZEN madeof various announcements
compliant disclosures
To ensure transparency in company operations and protect the legal rights of share-holders, investors, partners, and the public, and to ensure that they fully exercisetheir rights to information, we strictly adhere to national laws and regulations andregulatory requirements, upholding principles of integrity and compliance. We dis-close information in a timely and compliant manner on designated websites.
LAZZEN places great importance on engagement with investors, always considering the protection of investor rights as an impor-tant responsibility. To this end, we continuously optimize the engagement mechanisms, actively expand engagement channels,and ensure the timeliness, accuracy, and transparency of information transmission. We enhance engagement with investors andshareholders through various channels, including General Meeting of Shareholders, earning brie?ngs, roadshows, on-site research,and conference calls, ensuring the protection of shareholders' engagement and legal rights.Key Performance Indicators
Investor Exchange Activities
Session(s)
Investor Relations Activity Records
Time(s)
Earnings Brie?ngs
Time(s)Interactive Platform Q&A with Investors
Time(s)
Telephone Communications
Time(s)
On-site Investor Visits & Conference Calls
Time(s)
LAZZEN actively communicates with the Shenzhen Stock Exchange's regulatory body to learn regulatory requirements and par-ticipates in seminars organized by the Small and Medium Investors Service Center to learn about listed company operations andmethods for communicating with small and medium investors. Additionally, the Company maintains active communication withsmall and medium investors through the investor relations interactive platform to ensure smooth communication channels ande?ectively protect the interests of small and medium investors.
Awards for Investor Relations During the Reporting Period
Awards and Honors
Panoramic NetworkInvestor Relations Gold Award (2023)
Awards and Honors
Jinmen Finance2024 Best Innovative Practice Award
in IR Data
Awards and Honors
China Listed Company Association4A Award for Performance of Board
Secretary
Board of Directors Composition
Board of Supervisors Composition
9 Board of Directors1 Female Director3 Independent Directors
3 Employee Supervisors2 Female Supervisors1 employee supervisor
Awards Received During the Reporting Period
Information Disclosure
Investor Relations
Investor Engagement
Protection of Small and Medium Investors' Interests
8384
About ThisReport
Message fromthe Chairman
AboutLAZZEN
Honors in
2024
Digital-IntelligentNew QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-
being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
Risk Management Organization of LAZZEN
Chairperson of the RiskManagement Committee
Product Risk Committee MemberInformation Security Risk Committee MemberBusiness Risk Committee MemberLegal Risk Committee MemberProcurement Risk Committee MemberLabor Relations Risk Committee MemberFinancial and Tax Risk Committee MemberIntellectual Property Committee MemberExecutive Secretary
"Three Lines of Defense" for Risk Prevention
?●Quality and Operations De-partments of each organi-zation
First Line of Defense
?●Risk Control Department
?●Finance Department
?●Quality and OperationsDepartment
Second Line of Defense
?●AuditingThird Line of Defense
The Company's Party General Branch Committee consistently centers on core operational tasks, fully leveraging the Party organ-ization's role as a ?ghting fortress and Party members' exemplary role as pioneers and models. By continuously enhancing Par-ty-building e?orts, it solidi?es a robust political foundation and organizational support for the LAZZEN's sustainable and stabledevelopment.Guided by the general requirements of "studying ideology, strengthening Party spirit, emphasizing practice, and creating newachievements", LAZZEN formulated an annual study plan, organizing in-depth study sessions on Xi Jinping Thought on Socialismwith Chinese Characteristics for a New Era and the spirit of the 20th CPC National Congress. Thematic education was carried outthoroughly, including developing implementation plans, organizing specialized Party lectures, and arranging visits to red educa-tion bases, to elevate Party members' ideological and political qualities and work ethics.In 2024, LAZZEN organized 16 theoretical study sessions and 5 special discussions, covering 109 Party members in total.
Strengthening the Foundation ThroughParty Building
LAZZEN places high importance on the management of compliance, risk, and tax, striving to establish and improve correspondingmanagement frameworks and operational processes to enhance risk prevention capabilities.
Risk and Compliance
Mechanism for Identifying Laws and Regulations with Signi?cant Impact on Operations
Revision of the Company Law?●Revise the Company's articles of associa-tion and related management frameworksin accordance with the revisedCompanyLawin 2024.
Regular Mechanism?●Annual review and update of laws, regula-tions, policies, and institutional documentsrelated to ROHS, intellectual property,information security, EHS (Environment,Health, and Safety), and energy modules.
LAZZEN closely integrates updates in laws and regulations, changes in regulatory requirements, and the evolution of the marketenvironment to timely update compliance management framework documents. This ensures better adaptation to dynamic exter-nal changes and further improves internal management levels.
Compliance Management
LAZZEN has established a comprehensive system for identifying, analyzing, and evaluating risks and opportunities, taking corre-sponding measures to strengthen internal controls, improve operational management, and enhance risk prevention capabilities,thereby promoting sustainable development.
Risk Control
LAZZEN has built a "Three Lines of Defense" risk prevention framework, establishing a comprehensive and centralized audit su-pervision network to prevent major risk incidents and support the achievement of strategic goals. During the reporting period,the Company revised theEnterprise Risk Management Framework,adjusting the risk management organizational structure andresponsibilities.
Risk Governance
LAZZEN continuously identi?es risks in key areas and implements risk prevention measures. Through performance evaluations,meeting follow-ups, and system processes, we ensure the formulation and implementation of risk response measures. Additional-ly, in accordance with theBasic Standards for Enterprise Internal Controland supporting guidelines, we prepare an internal controlrisk matrix based on actual conditions, regularly identifying, assessing, monitoring, responding to, and improving risks.We update legal education articles monthly and provide legal and risk management training for new employees to enhance com-pliance awareness and risk prevention capabilities. This ensures employees are pro?cient in risk management processes, improv-ing overall risk response levels.
Risk Identi?cation and Management
8586
About This
Report
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-Intelligent
New QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
Annual Risk Identi?cation Results During the Reporting Period
During thereporting periodLAZZEN experienced nonegative incidents related torisk or compliance.
Overall Objectives of the Audit Work
?●Supervise the compliance of business operations to prevent violations that may cause lossesto corporate assets and reputation.?●Evaluate the e?ectiveness and e?ciency of business operations and provide objective, impar-tial reports to the Board of Directors and management.
?●
Inspect the safety and integrity of corporate assets to reduce unnecessary waste and losses.
?●
Enhance risk awareness among all employees to minimize potential risks in daily operations.
LAZZEN has established a risk-oriented audit framework based on business cycles and key operational elements, fully utilizing ex-isting audit resources to inspect key risks in business operations. We have formulated theInternal Audit Systemand theDepartureAudit Management Framework.During the reporting period, we revised theInternal Audit System,adding principles for handlingcomplaints and reports, clarifying approval processes for audit projects, introducing special audits and internal investigation work-?ows, and updating audit templates.During the reporting period, the Audit Department established a "Audit & Business" dual-cycle model on top of the existing auditcycle, promoting the application of audit results and ensuring e?ective implementation of audit recti?cations. This achieves "inte-gration of business and audit", building a new ecosystem for enterprise risk management.
Internal Audit
Monthly Update Legal Education Articles
?●
Conduct pre-assessment of customer creditworthiness, payment terms, order release, and com-mercial bill acceptance through the Cash Flow Management Committee. During the process, busi-ness, legal, and lawyers handle non-litigation collections. Post-event, initiate lawsuits to controlrisks and reduce bad debt risks.
CustomerPayment Risk
?●
Regularly hold high-level quality monthly meetings. Assess risks in quality management systemsthrough regulations, internal audits, and management reviews.Quality and
RoHS Risk
?● For facial recognition expansion in the park, issue notices and organize consent agreements.
?●Conduct internal self-inspections and hold Risk Management Committee meetings in response tosoftware vendors' claims of pirated software usage. Implement resolutions through regulations andsigned documents.InformationSecurity Risk
?●Establish an intellectual property compliance management system to de?ne risk assessment pro-cesses, patent risk levels, and response strategies. Execute patent risk assessments through the IPD(Integrated Product Development) process. Annually review the e?ectiveness of risk control meas-ures through internal and external audits of the intellectual property compliance management sys-tem and make timely improvements.IntellectualProperty Risk
?●
Conduct background checks on job candidates. Timely update employee handbooks. Properlyhandle relocation of Haiyan employees, including workplace changes and contract entity updates.Labor DisputeRisk
Internal Audit Governance Framework
Sales and Receivables Cycle?●Product Pricing, Special Price Management,Credit Limits?●
Sales Orders, Freight Costs, Reverse Logistics
?●
Accounts Receivable, Other Receivables
Finance (Monetary Funds Cycle)?●Financial Budgeting
?●Monetary Funds, Notes Receivable
?●Fundraising
Materials (Production and Inventory Cycle)
?●
Real Estate, Production Equipment, O?ce Equip-ment?●
Inventory, Molds, Low-Value Consumables
?●
Scrap Materials
Procurement and Payment Cycle
?● Supplier Management
?●
Procurement Pricing and Allocation Ratios
?●
Accounts Payable
Human Resources (HR and Payroll Cycle)
?●Production Safety
?●Payroll Accounting
?●Employee Bene?ts?●Labor Services
8788
About This
Report
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformance
Table
Indicator
Index
Feedback
andSuggestions
Disclosure ItemUnit202220232024
Risk/Audit TrainingTime(s)144Total Employees Covered by Risk/Audit TrainingPerson200200200
Management Covered by Risk/Audit TrainingPerson05015Percentage of Management Covered by Training%010020
Total Employee Learning HoursHour(s)222Employees Trained in CompliancePerson2501,500
[1]
Compliance Training HoursHour(s)222
LAZZEN consistently adheres to the principle of tax compliance. To strengthen tax management and ensure lawful operations andhonest tax payment, the Company has established theTax Management Framework.This framework clearly de?nes the responsi-bilities and authorities of various departments and personnel in tax management, standardizing key processes such as tax registra-tion, tax ?ling, invoice usage and management, tax planning, and archival management.
Note: [1]Employee compliance training numbers are for company-wide training in 2023 , and management training in other years.
Tax Risk Response Measures
Training onPrevention of Commercial Bribery
LAZZEN upholds a strong sense of social responsibility and professional ethics, maintaining a zero-tolerance policy toward corruption,strictly enforcing anti-corruption policies to ensure integrity and transparency in its operations. LAZZEN ?rmly opposes all forms of mo-nopolistic behavior and unfair competition, adhering to market competition rules and fostering a fair and just business environment.
LAZZEN strictly follows national anti-corruption and integrity policies by formulating theIntegrity and Compliance ManagementMeasuresand establishing a comprehensive integrity management framework. A Sunshine Business Management Committee hasbeen set up to promote a culture of integrity. Any violations of laws, regulations, or Company interests are subject to investigationand action to prevent fraud and corruption, fostering a healthy business environment and ensuring the stable development. In2024, LAZZEN revised theIntegrity and Compliance Management Code, further clarifying ethical conduct standards.Guided by the principles of integrity and self-discipline, LAZZEN strengthen anti-corruption measures through institutional devel-opment, training, and supervision, aiming to build an ethical and transparent business environment to drive the Company's sus-tainable growth.The Sunshine Business Management Committee oversees employee conduct, integ-rity practices, and relevant business activities. All employees sign theIntegrity andCompliance Commitment, participate in anti-corruption training, and adhere to ethi-cal work practices, ensuring that all operations are conducted with transparency.During the reporting period, LAZZEN organized specialized training onPreventionof Commercial Briberyfor key internal positions. The training provided insights intodi?erent forms of commercial bribery and their legal risks, continuously enhancingemployees' awareness of anti-corruption measures.
Sunshine Operation Management Framework
Sunshine Operation Committee
Integrity and Anti-Corruption Management Measures
ManagementObject
Internal
Training and PromotionOA System: Con?ict of Interest Declaration ProcessAudit Email: Receiving Complaints and Reports
Regular AuditsInvestigation by External Experts
Employee HandbookCommitment LetterIntegrity Cooperation Agreement
ExternalControlMeasures
Bottom-LineMeasures
Supervision andInspection
Improving Systems andCompliance Building?●Established a comprehensive tax man-agement framework, clarifying manage-ment processes and responsibilities, andconducted dynamic risk assessments toformulate risk control measures.?●Adhere to lawful tax payment, ensuringthe authenticity and completeness oftax-related documents, timely and accu-rate tax declaration and payment, andstrict compliance with tax disclosureobligations, actively cooperating with taxregulatory authorities.
Leveraging Digital Risk Control toOptimize E?ciency?●
Utilize digital tools to improve tax trans-parency and reduce compliance costs.
?●
Regularly conduct self-assessments of taxrisks and collaborate with professionalconsulting firms to strengthen compli-ance reviews, ensuring standardized andsecure tax operations.
Building Long-Term Mechanisms
?●Committed to achieving the normali-zation and standardization of tax riskmanagement. Establish a sustainable taxrisk prevention and control mechanismthrough system improvement, techno-logical empowerment, and personnelcapability building, providing a solidfoundation for the steady development ofthe business.
Responding to Policies andEnhancing Capabilities
?●Continuously monitor and studY nationaltax policies, regularly conduct internal taxtraining, and promote the deep integra-tion of business, finance, and tax opera-tions. Optimize tax-related processes andenhance the professional capabilities ofits tax team to achieve rapid adaptationand compliant implementation of policychanges.
Tax Management
Business Ethics
Anti-Corruption
Anti-Corruption Governance and Strategy
8990
About ThisReport
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
LAZZEN continuously strengthens anti-corruption risk management by improving in-stitutional frameworks, enhancing supervision mechanisms, and standardizing busi-ness operation processes. Strict disciplinary measures serve as a strong deterrent,establishing a comprehensive Sunshine Business Management Framework that en-compasses prevention, supervision, and post-incident handling, fostering an organ-izational culture where employees "No Unwilling to Corrupt, Unable to Corrupt,NoCourage to Corrupt".LAZZEN places great importance on complaints and reports, establishing strict han-dling procedures with clear response timelines. Additionally, a protection mechanismfor whistleblowers has been implemented to safeguard their rights.
Comprehensive Anti-Corruption Management Framework
2024 Anti-Corruption Management Measures
Handling of Complaints and Whistleblowing Cases
Initiative Letter for Integrity During 2024National Day and Mid-Autumn Festival
Unwilling to CorruptUnable to CorruptNo Courage to Corrupt
Pre-EventPrevention
Integrity Culture
?●Rule-Setting: clearly define "code ofconduct red lines"?●
Personnel Screening: conduct back-ground checks for sensitive positions
?●Organizational culture: Managers ex-emplify integrity
?●Training and education: regular in-tegrity and legal education
?●
Contractual commitments: signIntegrity Commitment Letters andIntegrity Agreements
Establish Rules?●Responsible Body: Sunshine Busi-ness Ethics Committee?●Policy Document: developIntegrityManagement Guidelines?●Process Standardization: Replaceindividual discretion with pro-cess-oriented work?ows?●Digital Controls: implement IT-driv-en operations to reduce humanintervention
Rule of Law Education?●Integrity Cases Presentation:
conduct workshops on an-ti-corruption cases and re?ec-tion on economic crime cases?●Legal education: disseminateintegrity case studies andlearn from the experiences ofeconomic o?enders?●Public announcements: inter-nally announce and circulatetypical cases, and organizestudy sessionsIn-EventControl
Voluntary declaration?●Gifts/Benefits: report gifts/benefitsreceived proactively?●Conflicts of Interest: disclose con-?icts of interest?●Family/Friend Ties: Declare relation-ships & cooperate with investigations
Internal Checks?●System Alerts: embed data anoma-ly alerts into IT systems?●Departmental reviews: businessunits conduct self-inspections?●Rotation policy: rotate sensitiveroles periodically
Audit Mechanisms?●Audit Checks: regular/unan-nounced audits by InternalAudit?●Executive cngagement: com-mittee members engage part-ners regularly
Post-EventSupervi-sion
Whistleblower channels?●Audit mailbox?●Complaints to the Sunshine BusinessEthics Committee
Supervision and inspection?●Investigative measures?●Internal investigations: commis-sioned by the committee chair?●External investigations: engage fo-rensic experts or law enforcement
Penalties & Legal Action
?●Multi-Level accountability:
individual, managerial, andleadership accountability
?●Sanctions: warnings, termina-tion, ?nes, restitution
?●Legal consequences: referralto judicial authorities
?●Audit Department delivered akeynote speech titled Trans-parent Cooperation, SharedFuture at the Global PartnersConference, communicatingto all partners the Company'scommitment to transparent op-erations and the supplier codeof conduct, which emphasizes"no gifts, no kickbacks, no unfairadvantages, and zero tolerancefor violations, with accountabili-ty for any breaches."?●Risk Control Department organ-ized a specialized training ses-sion on Prevention of Commer-cial Bribery for key personnel,educating them on the variousforms of commercial briberyand the associated legal risks.
?●Audit Department revised the In-tegrity Management Guidelines,de?ning 3 core principles and 24speci?c behavioral standards forethical conduct.?●Audit Department organized an"Integrity and Self-Discipline:
Sailing with Integrity" trainingfor mid-level and senior manag-ers, culminating in a collectiveSunshine Business Pledge.?●Audit Department issued theIntegrity as the Cornerstone,Integrity for the Festive Seasonethical conduct guidelines dur-ing the Mid-Autumn and Nation-al Day holidays.
?●Audit Department conducted acompany-wide training and ex-amination on the Integrity Man-agement Guidelines, with allemployees signing the IntegrityCommitment Pledge.?●Audit Department launcheda Supplier Integrity Self-Dec-laration and Audit Program,combining voluntary supplierdisclosures with random auditsto detect violations and determisconduct.?●Audit Department reissued theIntegrity as the Cornerstone,Integrity for the Festive Seasonguidelines during the New Yearand Spring Festival holidays.
Complaint and WhistleblowingChannels?●Board of Directors (written or verbalsubmissions)?●Email: audit@sh-liangxin.com
Timeliness of Complaint and Whistleblowing HandlingWe complete investigations within one month, provide feedbackto the Sunshine Business Ethics Committee and the reported indi-vidual(s), and issue the Audit Investigation Report . The maximumduration of the audit investigation shall not exceed three months.For complaints and reports that are complex and require high pro-fessional expertise, professional institutions may be engaged toconduct external investigations.
Anti-Corruption Risk Management
Whistleblower Protection Mechanism
The Audit Department is obligated to maintain con?dentiality regarding the information of complainants and whistleblowers.According to theInternal Audit System,any audit personnel who violate con?dentiality principles or disclose whistlebloweridentities shall be subject to disciplinary actions and penalties.
We support anonymous complaints andwhistleblowing reports, which are investi-gated and handled with the same rigor asreal-name reports.Information related to complaints/reportsis restricted to a strict need-to-know basisand investigations are conducted confi-dentially and are not disclosed publicly.
9192
About ThisReport
Message fromthe Chairman
AboutLAZZEN
Honors in
2024
Digital-Intelligent
New QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
Feedback
andSuggestions
LAZZEN upholds the principles of integrity, transparency, and openness in cooperation, establishing collaborative mechanismswith partners and suppliers while ?rmly resisting commercial bribery. To ensure compliance and ethical business practices, LAZ-ZEN signsIntegrity Cooperation Agreements with partners, explicitly stating the whistleblowing email address. Periodic inspec-tions are conducted to reinforce the foundation of mutual trust and integrity. Additionally, suppliers are required to participate inanti-bribery training to promote stable and sustainable business development.
Supplier Integrity & Ethical Compliance Declaration Form
During thereporting period,LAZZEN did not report any cor-ruption-related lawsuits involv-ing suppliers or distributors.
Market Maintenance Clauses in theDistributor Agreement
In 2024
all distributors have signed the updated Distribu-tor Agreement incorporating anti-monopoly andfair competition provisions.No incidents of monopoly practices or unfair com-petition violations were reported.
During the reporting period
LAZZEN did not have any corruption-related lawsuits.
Disclosure ItemUnit2024Number of corruption lawsuits ?led and concluded by regulatory authorities against the issueror its employees
Case(s)0Number of anti-corruption and anti-bribery whistleblowing reportsCase(s)2Total number of directors covered by anti-bribery and anti-corruption trainingPerson5Percentage of directors covered by anti-bribery and anti-corruption training%55Total number of management personnel covered by anti-bribery and anti-corruption trainingPerson68Percentage of management personnel covered by anti-bribery and anti-corruption training%100Total number of employees covered by anti-bribery and anti-corruption trainingPerson1,600Percentage of employees covered by anti-bribery and anti-corruption training%80
Anti-Corruption Management Indicators
Anti-Corruption Management for Suppliers and Distributors
Integrity Cooperation Agreement
To safeguard a fair and equitable market environment, foster orderly market dynamics, and promote constructive collaborationbetween LAZZEN and our partners, we are committed to building a healthy and sustainable market ecosystem that lays a robustfoundation for long-term stability and growth. The contract between the Company and its distributors expressly requires both par-ties to adhere to the market maintenance provisions outlined in the Distributor Agreement and the Market Compliance Manage-ment Rules, safeguarding orderly market competition.
Anti-Monopoly and Fair Competition
Supporting of the UN SDGs
Uniting Hearts Toward aShared Vision
LAZZEN strictly adheres to laws and regulations in the employee recruitmentprocess, continuously improving the compensation and benefits system,expanding communication channels for employees, and optimizing the pro-motion and training processes to foster personal growth. We place great em-phasis on employee welfare, actively organizing diverse activities to enhanceemployees' sense of belonging and overall happiness. We strictly complywith national laws and regulations regarding production safety and occupa-tional health, ensuring the e?ective implementation of safety measures andimproving the e?ciency of safety production and occupational health man-agement.
Concept
?●Employee Management
?●
Work Safety andOccupational Health
Our Actions
Key Performance
Campus recruitment as a percentage of annual talent hiring
%Average employee satisfaction scores
6.10
points out of 7Employee work safety investment RMB
1.2432
million
9596
About This
Report
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-Intelligent
New QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a Shared
Vision
CollectiveGuardianship ofCommunity Well-being
Independent
AssuranceStatement
KeyPerformance
Table
IndicatorIndex
FeedbackandSuggestions
LAZZEN strictly adheres to theLabor Lawand relevant regulations, safeguarding employees' legal rights, continuously optimizingthe compensation system, clearly de?ning employee promotion pathways and training mechanisms, facilitating communicationchannels, providing a variety of employee bene?ts, and organizing diverse activities. LAZZEN The Company is committed to under-standing and addressing employees' needs, increasing their satisfaction and sense of belonging.
The company has established theHuman Resource Management Policyand related regulations, including anti-discriminationclauses to eliminate unfair treatment. We adhere to the principle of equal pay for equal work, strictly prohibit any form of discrim-ination, and resolutely oppose child labor and forced labor, thereby safeguarding employees' legal rights and fostering a fair, re-spectful, and inclusive workplace.All full-time employees must sign legally binding labor contracts upon onboarding to ensure standardized and compliant employ-ment management. The internal recruitment and deployment processes follow the principle of "merit-based selection, competen-cy prioritization; mutual consensus, seamless transition" to guarantee fairness and operational continuity. We encourage employ-ees to recommend suitable candidates, with corresponding reward policies.In 2024, we implemented clear policies and measures in talent acquisition and talent reserve, covering organizational manage-ment, personnel selection, performance management, and welfare subsidies. The regulations for recruitment-related expensesreimbursement and new employee training have been further re?ned.
Employee Data
Disclosure ItemUnit202220232024
Labor Contract Signing Rate%100100100Total Number of EmployeesPerson2,2702,5942,355By Gender
MalePerson1,5281,7351,637FemalePerson742859718By Employment Type
Labor contract employeesPerson2,2612,5612,259Labor dispatch employeesPerson0066OtherPerson193330
By Age
50 years old and abovePerson23252530 to 50 years oldPerson1,5141,6921,69730 years old and belowPerson733877624
By Region
Employees working in Mainland ChinaPerson2,2702,5942,355Employees working in Other CountriesPerson000
By Education
PhDPerson133MasterPerson109119142BachelorPerson1,1851,1821,188CollegePerson279406348College degree or belowPerson696884674
College degree orbelow
Total number of junior employeesPerson1,9982,3322,116Total number of middle managementPerson257246228Number of female middle managementPerson494634Total number of senior managementPerson151611Number of female senior managementPerson111
By Employee Profes-sional Category
Production personalPerson813989888Technical personalPerson582787657Sales personalPerson598649586Financial personalPerson353124Management personalPerson242138200Foreign employeesPerson000Minority ethnic group membersPerson666Disabled employeesPerson001VeteransPerson000New hiresPerson269461417
Employee Management
Employee Employment and RightsEmployee Employment Governance
During the reporting periodCampus recruitment accounted for
% of the annual talent hiring.LAZZEN promotes continuous innovation and business growthby formulating precise talent acquisition and e?ective talentmanagement strategies.Employee Employment Strategy
Employee Employment Strategy
?●Attract industry experts through social recruitment?●Select outstanding talents from top industry-aligned universities through management train-ee programs
Talent Acquisition
?●
Focus on building internal and external talent maps and talent pools, systematically manag-ing and planning talent resources to ensure LAZZEN can continuously attract and retain tal-ents
Talent Mapping
9798
About This
Report
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-Intelligent
New QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
Independent
AssuranceStatement
KeyPerformance
Table
Indicator
Index
Feedback
andSuggestions
LAZZEN provides targeted support for employees facing hardship, focusing on both professional and personal well-being. Duringthe reporting period, the labor union implemented the 2024 Spring Festival Relief Program, assisting 5 employees in need.To address ?exible workforce demands, we adopted ?exible employment models, including third-party task delegation and tem-porary labor contracts, to accommodate varying service durations and create more employment opportunities.
LAZZEN has developed management framework such as thePerformance Management System and the Compensation and Ben-e?ts Management System to conduct scienti?c salary management based on employee performance evaluations. The compen-sation package includes three components: stock option, salary, and bonuses to ensure fair and equitable remuneration. A talentincentive and evaluation system are established, market-oriented and customer-centered, combining cash compensation and em-ployee stock ownership. The Company continues to manage the sale of reserved shares in the employee stock ownership plan andperformance evaluation.In 2024, LAZZEN optimized the performance evaluation rules for the core team, incorporating ESG factors into the performanceappraisal system for executives, further re?ning the management measures for employee compensation and performance to en-hance the e?ciency of employee rights management.
LAZZEN implements a re?ned salary management strategy to cater to the speci?c needs and contributions of employees in dif-ferent business lines. By considering factors such as job responsibilities, professional skills, work performance, and market salarylevels, LAZZEN fully stimulates employees' work enthusiasm and creativity, promotes the stable development of talent, and helpsthe Company achieve its long-term strategic goals.
In 2024, LAZZEN achieved an average employee satisfaction score of 6.10 out of 7 across seven dimensions, including leadership,relationships, purpose, structure, attitude toward change, useful mechanisms, and rewards.
LAZZEN has established a labor union and employee repre-sentative congress, regularly convened Employee Represent-ative Congress and implementing an equal consultation andcollective contract framework. Through smooth democraticdialogue channels, we gather feedback from all employeesand improve the VOS Voice Community to ensure the e?ectiveimplementation of democratic management. We also activelypromote the factory a?airs disclosure framework, strengthendemocratic supervision, and legally mediate labor disputes.Channels for employee complaints about salary performance,evaluation management, and other issues are provided toensure the protection of employee rights and create a harmo-nious and stable work environment.
14th Session of the 7th Employee
Representative Congress
In 2024, LAZZEN collected 226employee requests through theVOS Voice Community and com-
pleted 40 suggestions.
Employee Internal Training System
Performance-Driven
PBC (Personal Business Commitment) + Job Responsibility
Lazzen TalentDevelopment Center
PanguAcademy
EdisonAcademy
RockAcademy
LeanAcademy
GanjiangAcademyWIN ProgramLazzen Talent Training
Lazzen CourseResource LibraryOnline LearningPlatformInternal TrainerResource Development
External ResourceIntroduction
Financial Assistance for Employees in Need & Flexible Employ-ment
Employee Rights Governance
Employee Rights Strategy
Democratic Communication
Employee Satisfaction
Employee Promotion and Training
LAZZEN implements a dual-track career development path, covering both professional and management positions, allowingemployees to make cross-channel promotions between di?erent career paths. The promotion system clearly de?nes the quali?-cations for promotion and requires employees to demonstrate their capabilities and adaptability through a defense session. Theevaluation standards are set based on the requirements of the training academy.LAZZEN also implement a management rotation system for cadres to promote the comprehensive development and experienceaccumulation. When employees are promoted to new positions or move across levels, they are required to participate in a defensesession. The frequency of these promotion defenses can be adjusted ?exibly based on actual circumstances. We will continue tooptimize employee promotion channels and management mechanisms in the future, providing employees with broader careerdevelopment opportunities.
Employee Promotion
Talent Development Center is responsible for planning and managing training activities, dedicated to creating a team of internaland external experts as instructors. This center undertakes developing and implementing training courses, systematically culti-vating a high-quality talent pool to support the Company's long-term development goals. Additionally, we focus on the training ofreserved talent and continuous development after employees are assigned to new positions, ensuring that they can meet new jobrequirements and constantly enhance their skills.Our internal training system is supported by the LAZZEN Training and Development Center, which consists of ?ve specialized acad-emies, each focusing on di?erent functional areas. Training activities are planned and implemented on a monthly and quarterlybasis, with a summary and review at the end of the year. We track the demand for new training programs in real time, managingand adjusting them according to the human resources system and speci?c regulations of each academy.
Employee Training
99100
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Message fromthe Chairman
AboutLAZZEN
Honors in
2024
Digital-IntelligentNew QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a Shared
Vision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
New Employee Onboarding TrainingDuring the reporting period, in order to help newly hired employees quickly familiarize understand the systems and pro-cesses, LAZZEN organized a comprehensive onboarding training program. Each session of the general training for newemployees covered 16 training courses. A total of 3 sessions were held, with 150 employees participating in the training.
2024 LAZZEN WIN24 Management Trainee Onboarding Training Program
Disclosure ItemUnit2024Employee Training InvestmentRMB'0002,000Total Number of Employees TrainedPerson39,241Number of Training SessionsNumber651By Gender
Number of Male Employees TrainedPerson29,038Number of Female Employees TrainedPerson10,203By EmployeeCategory
Number of Junior and Middle Management Employees TrainedPerson39,153Number of Senior Management Employees TrainedPerson88Total Training Hours for EmployeesHour(s)47,175By EmployeeCategory
Total Training Hours for Junior and Middle Management EmployeesHour(s)47,032Total Training Hours for Senior ManagementHour(s)143Total Number of Employees Who Received Performance Appraisal or Career DevelopmentAssessment
Person1,565
Employee Birthday Bene?ts
Women's Day Activity
Visit and Care for Retired Employees
LAZZEN values employee bene?ts and activities, and cares about the physical and mental health of its employees. We contributeto housing provident fund and various social insurance programs, including pension insurance, basic medical insurance, unem-ployment insurance, work injury insurance, maternity insurance. We also regularly organize comprehensive physical check-ups foremployees, ensuring 100% coverage.LAZZEN organizes diverse cultural and sports activities and implements comprehensive welfare policies to strengthen employees'sense of belonging. We also pay attention to the needs of female employees by setting up two Nursing Rooms, providing a private,warm, and convenient space for pregnant and breastfeeding female employees. The rooms are equipped with air puri?ers, waterdispensers, and small refrigerators, re?ecting LAZZEN's care for female employees.
Employee Bene?ts and Activities
Employee Bene?ts
?●Social Insurance and Housing Provi-dent Fund (Five Insurances and OneFund)?●Shanghai Residency Permit?●Subsidies for Club Activities?●Team Building Expenses
?●Annual Employee Health Check-ups?●Women's Care Programs
?●Financial Assistance and Donations forEmployees in Need?●
Visits and Support for Sick EmployeesEmployeeBene?ts
Employee Bene?ts
101102
About This
Report
Message fromthe Chairman
AboutLAZZEN
Honors in
2024
Digital-Intelligent
New QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-
being
Independent
AssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
Snake Dance Welcomes the New Year, Charting a New Chapter; Unity in Collaborationto Forge a New Landscape
2024 Opening Ceremony Banquet of LAZZEN
Shaoguang InitiativeDuring the reporting period, LAZZEN invited employees and their families to the Shanghai headquarters and led themon a tour of the Hangzhou Bay Super Factory. This allowed employees and their families to experience the technologicalpower brought by intelligent manufacturing and future factories, providing a close-up look at the path of product re-search, development, and production. This initiative deepened their understanding of the Company's culture and devel-opment history.
Shaoguang Initiative
LAZZEN places great importance on humanistic care, ?rmly believing that employees' well-being is inseparable from fostering apositive, e?cient, and creative team. By actively organizing various activities, it enriches employees' cultural life in their spare timeand nurtures their spiritual world.
Safety Committee Organizational Structure
Safety Committee
Safety TeamSafety Committee O?ce
Work Safety Standardization Certi?cate
Regularly analyze the safety production sit-uation, and determine the guidelines, goals,and indicators for safety production andoccupational disease prevention.
In accordance with national and localgovernment approvals and company reg-ulations, propose handling opinions fordepartments and personnel responsible formajor safety production accidents within thecompany.
Investigate responsibilities for other safetyproduction accidents within the company,discuss and decide on the handling of rele-vant responsible departments and person-nel, and assist in major safety productionmatters.
Define special funds, assessment, rewards,and penalties for safety production, occupa-tional disease prevention, and ?re emergen-cy response; study, coordinate, and resolvemajor safety production issues; reviewsolutions for major safety hazards and emer-gency rescue plans for production safetyaccidents and improve occupational healthand safety management and emergency res-cue systems.
Guide safety production and occupation-al disease prevention activities, conductpublicity and education, summarize safetyproduction and occupational health work,promote advanced safety production and oc-cupational disease prevention technologiesand management methods, and recognize,commend, and reward outstanding depart-ments and individuals in safety productionand occupational disease prevention.
Develop safety technical measures, occupa-tional disease prevention plans, annual keywork plans, and annual safety budget plans.
Employee Activities
Work Production and OccupationalHealth
LAZZEN is committed to establishing and improving standardized work safety processes, enhancing the work safety responsibilitysystem, and building smart work safety lines to optimize standardized processes and comprehensively ensure the safety of produc-tion operations.Work Safety
LAZZEN always adheres to the work safety policy of "safety ?rst, prevention foremost, and comprehensive management". Basedon the Work Safety Law of the People's Republic of China and other relevant regulations, a safety committee has been established,with clear responsibilities assigned at each level. The Company promotes standardized work safety processes, organizes annual
Work Safety Governance
In 2024, the "Opening Ceremony Banquet" celebrationwas scheduled for the morning of the eighth day of thefirst lunar month. Thousands of employees from theShanghai headquarters, Hangzhou Bay Super Factory,Xi'an Research Institute, and national o?ces gathered toembark on a new journey. The event featured speeches,drum performance, a kicko? ceremony, the distribution ofred envelopes, and other fun-?lled activities.With the sound of ?recrackers ringing in the air, symbol-izing prosperity and good fortune, Chairman Silong Ren,Director Ping Chen, and senior executives walked into theworkshop to warmly engage with all employees, extend-ing their blessings and greetings. Together with all mem-bers, they welcomed the new year with joy and determi-nation, striving to create new stories and achievements inthe year ahead.
safety months activities, and conducts regular work safety inspections.LAZZEN continuously explores smart work safety production lines, integrating ad-vanced technologies such as digital modeling, simulation analysis, and the Internetof Things (IoT) to establish dynamic digital twin virtual factories. We have introducedseveral high-precision imported devices, fully automated production lines, intelligentthree-dimensional storage equipment, and smart inspection equipment to reducesafety risks faced by employees during production, creating a safe, digital, and intelli-gent production line.Currently, Liangxin Electric Appliances (Haiyan) Co., Ltd. has obtained the Level 3Work Safety Standardization Certi?cate (Machinery), and LAZZEN has passed the Lev-el 2 Work Safety Standardization Certi?cate (Machinery).
Safety Committee Responsibilities
103104
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AboutLAZZEN
Honors in
2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
Independent
AssuranceStatement
KeyPerformance
Table
Indicator
Index
FeedbackandSuggestions
Disclosure ItemsUnit2024Safety production investmentRMB '0001,243.2Employee safety production liability insurance investmentRMB '00030Number of safety production accidentsCase(s)0Employee work injury insurance coverage rate%100Employee safety production liability insurance coverage rate%100Number of work injury accidentsCase(s)5Number of employees injured in work accidentsPerson5Number of work-related fatalitiesCase(s)0Number of employees who died due to work accidentsPerson0Number of factory buildings certi?ed under occupational health andsafety management systems
Number5
Number of employees who received safety trainingPerson1,742Total hours of safety training received by employeesHour(s)2,613Contractors: Number of work injury casesPerson0Contractors: Number of work-related fatalitiesPerson0
LAZZEN places great emphasis on employees' occupational health, establishing a comprehensive occupational health manage-ment framework. We adopt measures such as occupational disease hazard factor detection, protective equipment optimization,and occupational health education and training to strengthen the occupational health protection capabilities.
LAZZEN places great importance on the employee safety and health, and has formulated various occupational health managementdocuments, including theEnvironmental and Occupational Health Requirements Notice, the Occupational Health Exit PhysicalExamination Waiver Statement, and the Environmental, Occupational Health, and Safety Management System,while continuouslyupdating hazard source identi?cation documents. A well-established occupational health and safety production reporting systemhas been put in place. In 2024, the Company developed theOccupational Disease Prevention Management Procedures and theSafety Inspection and Hazard Identi?cation Management System.To improve the e?ciency of occupational health management, we have taken multiple optimization measures. In 2024, we en-hanced the distribution of labor protection supplies, installed AED devices, shortened the self-check period for safety manage-ment, and regularly organized training on violation case studies.
Occupational Health
Occupational Health Governance
To minimize the potential consequenc-es of emergencies, LAZZEN regularlyconducts work safety risk assessments.For emergencies such as falls fromheight and mechanical injuries thatmay cause personal harm or result inlosses for the Company, correspondingemergency preparedness and responsemeasures have been developed.In light of the irreversible impact onpersonnel injuries and property lossesin emergencies, and to improve theresponse capabilities of personnel,enhance team collaboration, LAZZENactively organizes specialized trainingand emergency drills. Specialized train-ings include forklift safety, accidentcase warning and lectures, and trainingon occupational diseases and hazardfactors. Emergency drills cover variousemergency scenarios, such as naturaldisasters and public health incidents,focusing on operation, coordination,and communication skills to compre-hensively improve the team's ability tohandle complex situations, minimizinglosses and injuries. Additionally, weorganize employees to watch safetyaccident videos as warnings to preventaccidents and ensure comprehensivesafety and health during production.
Emergency Training Scene
Work Safety Risk Management and Emergency Response Plans
In 2024
A total of
employees received professional ?rst aid training and obtained Red Cross First Aid Certi?cates.
LAZZEN conducted
safety production training sessions,
safety production inspections,
emergencydrills, and
property ?re drills.
105106
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Message fromthe Chairman
AboutLAZZEN
Honors in
2024
Digital-IntelligentNew QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a Shared
Vision
CollectiveGuardianship ofCommunity Well-
being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
No.Occupational Health Management Goals1No more than 1 incident of serious work-related injury (level 4 and above)2Zero occurrence of occupational diseases3Medical injury rate ≤ 1%
Disclosure ItemUnit2024Number of Employees in Occupational Disease Risk PositionsPerson503Number of Employees Participating in Occupational Disease Medi-
cal Examination
Person480Number of Employees Diagnosed with Occupational DiseasesPerson0Total Number of Employees Participating in Medical ExaminationsPerson1,742Percentage of Employees Participating in Medical Examinations%79.2
Hazardous Source Identi?cation and Evalua-
tion Table
LAZZEN Occupational Health and Safety Management System Certi?cation
LAZZEN actively conducts comprehensive identi?cation of occupational health risk factors and intervenes at an early stage. Basedon the Hazard Source Identi?cation and Risk Assessment Form, daily inspections are performed to identify and assess hazardoussources in production and business activities. This ensures the timely discovery of potential safety hazards, proper record-keeping,and tracking of improvement status, e?ectively reducing occupational health and safety risks.
Occupational Health Risk Management
Occupational Health Risk Assessment and Management Measures
Risk TypeManagement MethodSpeci?c Measures
Safety Produc-
tion Risk
Occupational Disease Preven-tion Management
?●Establish and implement an occupational disease prevention managementframework according to regulatory requirementsNoise Emission Management
?●Develop and execute a noise emission management framework to ensurecompliance with relevant standards
Labor Protection EquipmentManagement
?●
Establish a labor protection equipment management framework and main-tain clear issuance records?●Train personnel in each position to accurately collect, record, and correctlywear protective equipment
?●The EHS department regularly inspects wearing compliance and accuratelyrecords and provides feedback for corrective actions by the responsible de-partment
Emergency Inci-dent Risk
Emergency Equipment and
Training
?●Equipped 6 AEDs (4 in Shanghai, 2 in Haiyan)?●Conducted AED practical operation training for key personnel (security sta?,cafeteria sta?, equipment personnel, EHS related person in charge, etc.).Safety Manage-ment Risk
Safety Hazard Inspections
?●The EHS department conducts daily on-site safety hazard inspections?●Promptly record hazards and report to the responsible department for rec-ti?cation within a speci?ed periodOccupationalHealth Risk
Occupational Health Exam-inations and OccupationalHealth Monitoring
?●Regularly conduct occupational health examinations for employees in haz-ardous positions?●Prohibit employees with contraindications from working in hazardous posi-tions and transfer
?●Perform regular occupational health monitoring in accordance with regula-tory requirements
Occupational Health Indicators and Targets
In 2024, we implemented employeehealth risk management during the on-boarding process for new employees,requiring all new hires to provide phys-ical examination reports before joining.The requirements for the reports aredifferentiated based on employee lev-els and age groups.Currently, LAZZEN has obtained inter-national safety system certifications,including ISO45001 and OHSAS 18001.
SDGs对标
Collective Guardianshipof Community Well-being
LAZZEN actively participates in industry activities, contributing to societythrough social welfare and industry collaborations, engaging in industrystandard setting and government activities, and actively ful?lling its social re-sponsibilities. We are focused on the well-being of vulnerable groups, activelypromoting rural revitalization, leveraging our influence on further supportindustry transformation and the harmonious development of society.
Concept
?●IndustryCollaboration
?●CommunityWelfare
Our Actions
Key PerformanceParticipated in 12 policy presentationsIn 2024, the total charitable donations amounted to RMB363,000
109110
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AboutLAZZEN
Honors in
2024
Digital-Intelligent
New QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
LAZZEN actively engages in industry collaboration and university-enterprise cooperation, actively participates in industry forumsand government activities, attends industry conferences, and assists in drafting industry standards, promoting knowledge sharingand technological innovation to propel the progress and development of the industry.
To promote market activities in various industries and strengthen customer relationships, the Company actively organizes andplans large industry exhibitions, academic forums, and industry networking events based on the strategic objectives for 2024 toenhance the in?uence and market engagement.In 2024, LAZZEN hosted 60 industry market events in total, including 11 large-scale exhibitions, 24 industry forums, and 25 industrynetworking salons.
Smart Building Sustainable Development Conference and the Human
Habitat Technology and Innovation Forum
2024 Standards Promotion and High-Quality R&D and Standards Senior
Training Class Sharing and Exchange
NEEU Board Meeting
Meeting on the Low Voltage Circuit Breaker Selection Guidelines for
Wind Power Converters
Focusing on Green Energy and Exploring Future MobilityDuring the reporting period, LAZZEN showcased severalinnovative technologies and products at the ShenzhenInternational Charging Pile and Battery Swap StationExhibition. The highlights included the DC charging pilesolutions in the charging pile industry, the PX distributionexpert under the LAZZEN Magic Link Power? smart ener-gy management platform, and EX smart energy carbon.These e?orts further enhanced the Company's in?uencein the industry.
International Charging Pile and Battery Swap Station Exhibition
LAZZEN Showcased at the Energy Storage International Summit and Exhibition ESIE
2024 and Promoting Clean Energy Development
2024 Energy Storage International Sum-
mit and Exhibition
During the reporting period, LAZZEN showcased the energy storage systemcomponent solutions, innovations for high-altitude and high-temperature, andhigh-humidity applications, and multiple compact new products at the 2024 En-ergy Storage International Summit and Exhibition, aiming at assist customers inoptimizing energy usage and accelerating the development of clean energy, anddriving the application of energy storage in various scenarios.At the energy supply, transmission, and distribution ends, LAZZEN comprehen-sively demonstrated its layout in large ground-mounted energy storage systems,industrial and commercial energy storage systems, and household energystorage systems, providing one-stop safe, green, and efficient energy storagesolutions to better meet the energy storage needs in industrial and commercialscenarios and contribute to the global low-carbon energy development.
Industry Collaboration
Industry Exchange
No.Association NameNature and Participation
1Shanghai Electric Power Industry AssociationMember Unit
China Electrical Equipment Industry Association (Gener-al Association)
Director Unit
China Electrical Equipment Industry Association GeneralLow Voltage Electrical Appliances Branch
Deputy Chairman Unit4Zigbee Alliance (CSA Alliance)Participant
China Electrical Equipment Industry Association Electri-cal Accessories and Home Controllers Branch
Member Unit
6China Smart Home Industry AllianceChairman Unit7China Survey and Design AssociationDirector Unit
Architectural Electrical Branch of China ArchitectureSociety
Director Unit9New Energy Electrical Appliances AllianceDeputy Chairman Unit10New Energy Storage Industry AssociationMember Unit
Industry Associations
LAZZEN Participates in the Industry Associations (Partial)
111112
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Message fromthe Chairman
AboutLAZZEN
Honors in
2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full Lifecycle
Service
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
LAZZEN actively participates in community welfare and rural revitalization activities,establishing strong cooperative relationships with local residents, government agen-cies, and community organizations. We are committed to improving people's liveli-hoods, supporting the vulnerable, and aids those in need, and promoting the sustain-able development of the social economy, and achieving the long-term strategic goals.In 2024, we participated in the "Heart-to-Heart" and "Charity One-Day Donation"events, contributing to the charitable causes in Haiyan County, promoting the spiritof charity through concrete actions, and advancing charitable culture.
In 2024The total charitable donationsamounted to363,000
RMB
Tarim Oil?eld Power Generation Side Energy Storage Station ProjectIn recent years, the energy storage industry has ?ourished, with various large-scale energy storage stations being con-structed on the power generation side to serve as grid charging and backup facilities, thereby improving power gen-
Tarim Oil?eld Power Generation Side Energy Storage Station Project
LAZZEN actively participates in government activities to ensure that the development is aligned with policies, striving for a win-win situation of both economic bene?ts and social value. During the reporting period, LAZZEN participated in 12 policy promotionevents and 39 government inspections.
2024 Shanghai Climate Week · Pudong Forum – Green Development
and ESG Construction for SMEs
2024 Shanghai Intelligent Manufacturing Development Project Policy
Promotion
Government Activities
Formulation and Revision of National andGroup StandardsSerial No.Standard NumberStandard NameStandard Type1GB/Z 44074-2024
Low-voltage Switchgear and Controlgear and Their Assem-blies - Environmental Factors
National Standard2GB/T 14048.11-2024
Low-voltage Switchgear and Controlgear - Part 6-1: Multifunc-tional Electrical Converters (Switchgear)
National Standard3GB/T 14048.9-2024
Low-voltage Switchgear and Controlgear - Part 6-2: Multifunc-tional Electrical Converters - Control and Protection Switch-gear (CPS)
National Standard4GB/Z 14048.24-2024
Low-voltage Switchgear and Controlgear - Part 7-5: AuxiliaryComponents - Terminal Blocks for Aluminum Conductors
National Standard5GB/T 6829-2024
General Safety Requirements for Residual Current OperatedProtective Devices
National Standard6GB/Z 43963-2024
Guidelines for Electrical Clearance and Creepage Distances,and Solid Insulation Requirements for Equipment with RatedVoltages Above AC 1000V to 2000V, DC 1500V to 3000V
National Standard724D204-3Design and Installation of Substations Up to 20kVNational Standard8T/CECS 1574-2024
Guidelines for the Selection and Use of Low-voltage CircuitBreakers
Group Standard
9T/CEEIA 694-2024
Technical Speci?cations for Green Design Product Evaluation- Conversion Switchgear
Group Standard
10T/CEEIA 693-2024
Technical Speci?cations for Green Design Product Evaluation- Universal Circuit Breakers
Group Standard11T/CEEIA 782-2024Low-voltage Semiconductor (Solid State) Circuit BreakersGroup Standard12T/CEEIA 783-2024
Lifecycle Assessment Rules for Low-voltage Electrical Prod-ucts
Group Standard13T/CEEIA 784-2024
Carbon Footprint Evaluation Guidelines for Electrical Prod-ucts - Low-voltage Electrical Products
Group Standard14T/ASC 50-2024Smart Home Evaluation StandardGroup Standard
LAZZEN Participates in the Formulation and Revision of National and Group Standards in 2024
Community Welfare
Yunnan Honghe Prefecture Livelihood Demonstration Project – Electric VehicleCharging ProjectDuring the reporting period, LAZZEN took part in the EV charging infrastructure construction project in Honghe Prefecture,Yunnan Province, contributing to solving local EV charging challenges. The project covers 13 counties and cities in the pre-
Yunnan Honghe Prefecture Electric Vehicle Charging Infrastructure Construction Project
fecture, with 70 charging stations al-ready built and operational, and 30more sites under survey and design,awaiting construction. The electric-ity usage of the charging stationsis monitored by an intelligent dis-tribution platform, enabling smartearly warnings, quick fault analysis,and accurate fault location, furtherenhancing its convenience for thepublic.
eration quality. During the reporting period, LAZZEN'sengineers traveled to Kashgar, Xinjiang, to participate inthe Tarim Oil?eld Power Generation Side Energy StorageStation project, embarking on a journey of energy storageand power distribution in the western region.After completion, the energy storage station is expectedto save around 206,000 tons of standard coal equivalentin clean energy usage, reduce carbon dioxide emissionsby 745,000 tons, and lower carbon emission intensity by
35.26%.
113114
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AboutLAZZEN
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change and
Opportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
Independent
AssuranceStatement
KeyPerformance
Table
IndicatorIndex
FeedbackandSuggestions
AA1000 Independent Assurance StatementTo the Management and Stakeholders of LAZZEN:
Shanghai REALIZE ESG Corporate Services Co., Ltd. (hereinafter referred to as "REALIZE ESG") was commissioned by Shanghai Li-angxin Electrical Co., Ltd. (hereinafter referred to as "LAZZEN") to conduct an independent limited assurance on the LAZZEN 2024Environmental, Social, and Governance Report (hereinafter referred to as the "ESG Report") and to disclose the assurance resultsand conclusions to the readers and stakeholders of the ESG Report through this independent assurance statement.
?●
The assurance period is limited to the information and data disclosed in the ESG Report from January 1, 2024, to December 31,2024. Any related information outside the reporting period is not within the scope of this assurance.
?●The assurance covers the data and information in the ESG Report related to LAZZEN and its subsidiaries, excluding data and in-formation from LAZZEN's suppliers, partners, and other third parties.?●We assess the compliance of the ESG Report with the AA1000AS v3 principles of inclusivity, materiality, responsiveness, and im-pact, as well as the e?ectiveness and social impact of certain non-?nancial indicators.?●Information and data that have already been audited or veri?ed by independent third-party organizations are not subject to re-peated assurance.
Scope of Assurance
?●REALIZE ESG and LAZZEN are completely independent organizations, and all members of REALIZE ESG's verification teamhave no commercial relationship with LAZZEN that would lead to a con?ict of interest. The REALIZE ESG veri?cation team inde-pendently conducted this veri?cation.
?●
The veri?cation team of REALIZE ESG is composed of experienced ESG professionals who have undergone professional trainingon sustainability standards such as the Global Reporting Initiative (GRI) Standards, AA1000AS v3, ISO 14001, ISO 9001, ISO 26000,SA 8000, and the EcoVadis global supply chain rating. They possess a comprehensive understanding and practical experiencewith international guidelines, evaluation systems, and veri?cation standards, thereby ensuring the capability to conduct the veri-?cation.
Independence and Veri?cation Capability
?●The veri?cation process was conducted at the locations within the report's scope. During the process, REALIZE ESG adopted asampling veri?cation approach for the data and information in the report and only conducted sample interviews with internalstakeholders.
?●
Since there are no internationally recognized and universally applicable standards for assessing and measuring non-?nancialdata, the use of di?erent but acceptable information and measurement techniques may a?ect comparability with other organiza-tions.?●The data and information covered in the report are limited to LAZZEN's data and information for the current year, while historicaldata is not within the scope of this veri?cation.
Limitations
REALIZE ESG adopted Type 2 moderate assurance under AA1000AS v3, which includes evaluating LAZZEN's compliance with thefour AA1000AS v3 assurance principles: inclusivity, materiality, responsiveness, and impact.Assurance Standard
?●Report title: LAZZEN 2024 Environmental, Social, and Governance Report?●
Source: LAZZENSources of Information
?●
LAZZEN is fully responsible for the preparation and content of the ESG Report. REALIZE ESG's responsibility is to perform assur-
ance within the scope described and provide professional veri?cation opinions and an independent assurance statement to the
readers and stakeholders of the report.
?●Based on the limitations of the assurance scope, REALIZE ESG conducted an independent limited assurance on the matters with-
in the de?ned scope of the ESG Report in accordance with AA1000AS v3. REALIZE ESG assumes no legal or other responsibility for
any other inquiries or for any other parties reading this assurance statement.
?●
Any questions related to this independent assurance statement will be addressed by LAZZEN.
Responsibilities and Statements
?●Documenting key resource requirements, evidence collection, tasks, activities, deliverables, and timelines in an assurance plan.?●Understanding LAZZEN's overall ESG performance and related processes, verifying key organizational developments and policyimplementation, and reviewing supporting evidence in the report.?●Conducting interviews and reviewing documents to understand LAZZEN's major stakeholders, their expectations and needs, andthe channels of communication.?●Performing analytical review procedures on the ESG-related information, overall performance evaluation, and consistency veri?-cation to ensure consistency with the report's content.?●Verifying the report and process management related to the principles of inclusivity, materiality, responsiveness, and impact inAA1000 to con?rm the applicability of this statement.
?●Conducting sample checks on the reliability and quality of supporting evidence related to selected speci?c performance informa-tion and recalculating the selected speci?c performance information for veri?cation.?●Performing other procedures deemed necessary by REALIZE ESG.
Assurance Process and TasksTo collect evidence and form conclusions, the primary tasks of REALIZE ESG are summarized as follows:
Independent Assurance Statement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a Shared
Vision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
Indicator
Index
Feedback
andSuggestions
About ThisReport
Message fromthe Chairman
AboutLAZZEN
Honors in
2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Verification Institution: Shanghai REALIZE ESGCorporate Services Co., Ltd.
March 3, 2025, Shanghai, ChinaLead Veri?er:
IndicatorUnit2024
Total assetsRMB5,505,921,466.47Net assetsRMB3,977,356,624.49RevenueRMB4,237,866,195.50Net pro?t attributable to shareholders of the listed
company
RMB312,113,171.51Basic earnings per shareRMB/share0.28Net cash ?ow from operating activitiesRMB456,407,177.54
Inclusivity
The report re?ects that LAZZEN has implemented the following actions: identifying stakeholders during business op-erations, understanding stakeholders' expectations and key concerns, communicating in a timely manner on materialtopics, and transparently disclosing the communication outcomes.MaterialityLAZZEN collected stakeholder opinions, established a materiality analysis process, identi?ed ESG topics relevant tothe Company, and presented the evaluation results.
ResponsivenessLAZZEN responded to the material topics of concern to its key stakeholders and implemented corresponding policies,systems, and actions to address stakeholders' concerns.
Impact
LAZZEN demonstrated the capability to identify material topics and implemented a balanced and e?ective evaluationand disclosure approach. The Company has established a systematic process for monitoring, measuring, evaluating,and managing impacts, thereby enabling more e?ective decision-making and outcome management within the or-ganization. The report fairly and objectively re?ects the impact of material topics.
Economic Performance
IndicatorUnit2024
Addressing ClimateChange
Total greenhouse gas emissionstCO2e19,841.75Scope 1 GHG emissionstCO2e1,125.37Scope 2 GHG emissionstCO2e18,716.38
Gas Pollutant Emis-sions
Total emissions of exhaust gasm3588,960,000Particulateskg2Total non-methane hydrocarbonskg991.008Nitrogen oxideskg0SOxkg0VOC Emissionskg3,964.034
Water ResourceUsage
Municipal water consumptionTon(s)141,198Total Volume of Recycled/Reclaimed WaterTon(s)5,016Total Water ConsumptionTon(s)146,214
Energy Consump-tion
Total Energy ConsumptionTons of standard coal3,743.39Natural Gasm347,831.00Steam2,272.82ElectricityMWh33,621.47Direct Energy ConsumptionTons of standard coal63.62Indirect Energy ConsumptionTons of standard coal3,679.77Energy Use Intensitytce/unit0.0129Clean Energy UsageMWh4,705.14
Environmental Performance
?●REALIZE ESG did not identify any instances of non-compliance with the principles of inclusivity, materiality, responsiveness, andimpact as outlined in AA1000AP (2018) in LAZZEN's 2024 ESG report. The detailed veri?cation results are as follows:
Assurance Conclusion
Key Performance Table
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2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformance
Table
Indicator
Index
FeedbackandSuggestions
IndicatorUnit2024
Water PollutantEmissions
Total Wastewater DischargeTon(s)4,104Total Domestic WastewaterTon(s)120,378Chemical oxygen demand (COD)Ton(s)0.116Biochemical oxygen demand (BOD)Ton(s)0Suspended matterTon(s)0Ammonia nitrogenTon(s)0.002Total nitrogen (TN)Ton(s)0.026Total phosphorus (TP)Ton(s)0.001pH-6-9
Waste Emissions
Total amount of waste generatedTon(s)100.512Total amount of hazardous waste generatedTon(s)29.952Total amount of non-hazardous waste gener-ated
Ton(s)70.56Density of hazardous wasteTon/ RMB 10,0000.00008Density of non-hazardous wasteTon/ RMB 10,0000.00019Amount of waste recycledTon(s)70.56
Environmental
Investment
Environmental investmentRMB '0001,700
EnvironmentalCompliance
Amount of signi?cant administrative penaltiesimposed by ecological and environmentalauthorities due to environmental incidentsduring the reporting period
RMB '0000
EnvironmentalProtection Training
Total number of employees who receivedtraining
Number2,355Total training hours for employeesHour(s)24
IndicatorUnit2024
Corporate Govern-ance
Number of disclosure reportsNumber110Number of board of directors meetings heldNumber10Number of board of supervisors meetings heldNumber10ESG Governance
Number of ESG training sessions conductedNumber1Number of employees covered by ESG training%30Risk Complianceand Taxation
Risk/Audit trainingNumber4Total number of employees covered by risk/audit trainingNumber200Number of employees receiving compliance trainingNumber100Total number of employees covered by ?nancial and tax trainingNumber30Anti-Corruption
Number of concluded corruption litigation cases ?led by regula-tory authorities against the issuer or its employees
Number0Number of reported anti-corruption and anti-bribery incidentsNumber2
Corporate Governance Performance
IndicatorUnit2024
Anti-Corruption
Percentage of directors covered by anti-bribery and anti-corrup-tion training
%55Percentage of management personnel covered by anti-briberyand anti-corruption training
%100Percentage of employees covered by anti-bribery and anti-cor-ruption training
%80
Investor Relations
Investor Exchange ActivitiesSession(s)39Investor Relations Activity RecordsTime(s)8Earnings Brie?ngsTime(s)3Interactive Platform Q&A with InvestorsTime(s)61Telephone CommunicationsTime(s)60On-site Investor Visits & Conference CallsTime(s)39
IndicatorUnit2024
Innovation and R&D
Amount invested in R&DRMB 10,00032469.74Proportion of R&D investment to main business revenue%7.66Number of R&D personnelNumber594Proportion of R&D personnel%25.22Number of invention patents applied to main business oper-ations
Number348Number of invention patent applications during the report-ing period
Number127Number of invention patents granted during the reportingperiod
Number207Number of newly granted patents during the reporting periodNumber356Total number of patents heldNumber1,779Total number of copyrights heldNumber0Total number of trademarks and text registrations heldNumber701Total number of software copyrights heldNumber60Number of new patent applications ?led annuallyNumber456Number of new copyright applications ?led annuallyNumber0Customer satisfaction survey results%93.11Employee Employment
Proportion of labor contracts signed%100Total number of employeesNumber2,355By Gender
MaleNumber1,637FemaleNumber718
Social Performance
119120
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AboutLAZZEN
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full Lifecycle
Service
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
IndicatorUnit2024
Employee Employment
By Employee Type
Full-time employeeNumber2,259Dispatched employeeNumber66OthersNumber30By Age
50 years old and aboveNumber2530 to 50 years oldNumber1,69730 years old and belowNumber624
By EducationBackground
PhD degreeNumber3Master degreeNumber142Bachelordegree
Number1,188Junior collegedegree
Number348Junior collegedegree and below
Number674
By Employee Category
Junior levelNumber2,116Total number of middle manage-ment employees
Number228Number of female employees inmiddle management
Number34Total number of senior manage-ment employees
Number11Number of female employees insenior management
Number1
By Function
Production personnelNumber888Technical personnelNumber657Sales personnelNumber586Financial personnelNumber24Management personnelNumber200Foreign employeesNumber0Number of ethnic minority employeesNumber6Number of employees with disabilitiesNumber1Number of demobilized military personnelNumber0Number of new hiresNumber417Number of employees assisted through hardship supportprograms
Number5
Employee career development
Investment in employee trainingRMB 10,000200Total number of employees who received trainingNumber39,241Number of training sessionsNumber651Total duration of training received by employeesHour(s)47,175Total number of employees who underwent performanceevaluations or career development assessments
Number1,565
IndicatorUnit2024
Work Safety
Investment in safety productionRMB 10,000124.32Amount invested in employees' safety production liabilityinsurance
RMB 10,0003Number of safety production accidentsNumber0Coverage rate of employees' work-related injury insurance%100Coverage rate of employees' safety production liability insur-ance
%100Number of work-related injury incidentsNumber5Number of employees injured in work-related accidentsNumber5Number of fatal work-related accidentsNumber0Number of fatalities in work-related accidentsNumber0Number of factory buildings certi?ed with occupationalhealth and safety management systems
Number5Number of employees who received safety trainingNumber1,742Occupational Diseases
Number of employees in positions with occupational diseaserisks
Number503Number of employees who participated in occupationalhealth examinations
Number480Number of employees diagnosed with occupational diseasesNumber0Employee Health Examinations
Number of employees who participated in company-organ-ized health examinations
Number1,742Percentage of employees who participated in health exami-nations
%79.2
Supply Chain Management
Total number of suppliersNumber272Number of suppliers that have signed integrity clauses%100Percentage of suppliers with contracts including environ-mental and labor requirements
%100Number of suppliers that have undergone social impactassessments
Number83Number of suppliers that have undergone environmentalimpact assessments
Number120Number of suppliers certi?ed with ISO 9001Number256Number of suppliers certi?ed with ISO 14001Number125Number of suppliers certi?ed with ISO 45001Number83Number of suppliers identi?ed as having actual and potentialsigni?cant negative social impacts
Number0Number of suppliers identi?ed as having actual and potentialsigni?cant negative environmental impacts
Number0Total number of new suppliersNumber15Percentage of locally procured suppliers%13%Number of suppliers with terminated cooperationNumber0Amount invested in social welfare initiativesRMB 10,00036.3
121122
About This
Report
Message fromthe Chairman
AboutLAZZEN
Honors in2024
Digital-IntelligentNew QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
Indices of Guidelines Topics in Self-Regulatory Guidelines No. 17for Companies Listed on Shenzhen Stock Exchange—Sustainabili-ty Report (For Trial Implementation)
DimensionNo.TopicClauseChapter Reference
Environment
1Climate responseArticles 21-28Addressing Climate Change2Pollutant dischargeArticle 30Pollutant Emissions3Waste disposalArticle 31Waste Disposal4Ecosystem and biodiversity protectionArticle 32
Environmental Compliance Manage-ment5Environmental compliance managementArticle 33
Environmental Compliance Manage-ment6Energy utilizationArticle 35
Energy ManagementClean Technology Opportunities7Water resources utilizationArticle 36Resource Management8Circular economyArticle 37Resource Management
Community
9Rural revitalizationArticle 39Community Welfare10Social contributionsArticle 40Community Welfare11InnovationArticle 42Innovation-led Growth12Ethics of science and technologyArticle 43Digital-Intelligent Ecosystem Products13Supply chain securityArticle 45Supplier Management14Equal treatment of SMEsArticle 46
Corporate GovernanceRefer to 2024 Annual Report15Product and service safety and qualityArticle 47
Product QualityCustomer Service16Data security and customer privacyArticle 48
Customer Privacy and InformationSecurity17EmployeesArticle 50Employee ManagementSustainabili-ty-relatedgovernance
18Due diligenceArticle 52
Sustainable Development Manage-ment19Stakeholder engagementArticle 53
Sustainable Development Manage-ment20Anti-commercial bribery and anti-corruptionArticle 55Business Ethics21Fair competitionArticle 56Business EthicsGRI Standards (GRI 1: Foundation 2021) GRI Content IndexGRI StandardsDisclosureChapter Reference
GRI 2: GeneralDisclosures 2021
2-1Organizational details
About This ReportAbout LAZZEN2-2Entities included in the organization's sustainability reportingRefer to 2024 Annual Report
Indicator Index
GRI StandardsDisclosureChapter Reference
GRI 2: GeneralDisclosures 2021
2-3Reporting period, frequency and contact pointAbout This Report2-4Restatements of informationAbout This Report2-5External assurance
Independent Assurance State-ment2-6Activities, value chain and other business relationshipsAbout LAZZEN2-7EmployeesEmployee Management2-8Workers who are not employeesEmployee Management2-9Governance structure and compositionCorporate Governance2-10Nomination and selection of the highest governance bodyCorporate Governance2-11Chair of the highest governance bodyRefer to 2024 Annual Report2-12
Role of the highest governance body in overseeing the man-agement of impacts
Corporate Governance2-13Delegation of responsibility for managing impacts
Sustainable Development Man-
agement2-14Role of the highest governance body in sustainability reporting
Sustainable Development Man-
agement2-15Con?icts of interestBusiness Ethics2-16Communication of critical concerns
Sustainable Development Man-
agement2-18Evaluation of the performance of the highest governance bodyRefer to 2024 Annual Report2-19Remuneration policiesEmployee Management2-20Process to determine remunerationEmployee Management2-21Annual total compensation ratioRefer to 2024 Annual Report2-22Statement on sustainable development strategy
Sustainable Development Man-
agement2-26Mechanisms for seeking advice and raising concerns
Sustainable Development Man-
agement2-27Compliance with laws and regulationsEach Chapter Covers the Topic2-28Membership associationsIndustry Collaboration2-29Approach to stakeholder engagement
Sustainable Development
Governance2-30Collective bargaining agreementsEmployee ManagementGRI 3: MaterialTopics 2021
3-1Process to determine material topics
Sustainable Development Man-
agement3-2List of material topics
Sustainable Development Man-
agementGRI 201: EconomicPerformance 2016
201-1Direct economic value generated and distributedKey Performance Table201-2
Financial implications and other risks and opportunities dueto climate change
Addressing Climate Change201-3De?ned bene?t plan obligations and other retirement plansEmployee Management201-4Financial assistance received from governmentRefer to 2024 Annual ReportGRI 204: Procure-ment Practices2016
204-1 Proportion of spending on local suppliersNot Disclosed
GRI 205: Anti-cor-ruption 2016
205-1Operations assessed for risks related to corruptionBusiness Ethics205-2
Communication and training about anti-corruption policiesand procedures
Business Ethics205-3Con?rmed incidents of corruption and actions takenBusiness EthicsGRI 206: Anti-com-petitive Behavior2016
206-1
Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices
Business Ethics
123124
About ThisReport
Message fromthe Chairman
AboutLAZZEN
Honors in
2024
Digital-Intelligent
New QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full LifecycleService
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-
being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
GRI StandardsDisclosureChapter Reference
GRI 207: Tax 2019
207-1Approach to taxRisk and Compliance207-2Tax governance, control, and risk managementRisk and Compliance
GRI 207: Tax 2019
207-3
Stakeholder engagement and management of concerns relat-ed to tax
Risk and Compliance207-4Country-by-country reportingNot InvolvedGRI 301: Materials2016
301-1Materials used by weight or volumeNot Disclosed301-2Recycled input materials usedResource Management301-3Reclaimed products and their packaging materialsResource Management
GRI 302: Energy2016
302-1Energy consumption within the organizationEnergy Management302-2Energy consumption outside of the organizationEnergy Management302-3Energy intensityEnergy Management302-4Reduction of energy consumption
Energy Management
Clean Technology Opportuni-
ties302-5Reductions in energy requirements of products and services
Clean Technology Opportuni-
tiesGRI 303: Water andE?uents 2018
303-1Interactions with water as a shared resource
Resource Management
Pollutant Emissions303-2Management of water discharge-related impactsPollutant Emissions303-3Water withdrawalResource Management303-4Water dischargePollutant Emissions303-5Water consumptionResource Management
GRI 304: Biodiver-sity 2016
304-1
Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outsideprotected areas
Environmental Compliance
Management
GRI 305: Emissions2016
305-1Direct (Scope 1) GHG emissionsAddressing Climate Change305-2Energy indirect (Scope 2) GHG emissionsAddressing Climate Change305-3Other indirect (Scope 3) GHG emissionsNot Disclosed305-4GHG emissions intensityNot Disclosed305-5Reduction of GHG emissionsAddressing Climate Change305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other signi?-cant air emissions
Pollutant EmissionsGRI 306: Waste2020
306-1Waste generation and signi?cant waste-related impactsWaste Disposal306-2Management of signi?cant waste-related impactsWaste Disposal306-3Waste generatedWaste DisposalGRI 306: Waste2020
306-4Waste diverted from disposalWaste Disposal306-5Waste directed to disposalWaste DisposalGRI 308: SupplierEnvironmentalAssessment 2016
308-1New suppliers that were screened using environmental criteria
Green and Sustainable Supply
Chain308-2
Negative environmental impacts in the supply chain and ac-tions taken
Building a Stable and Secure
Supply ChainGRI 401: Employ-ment 2016
401-1New employee hires and employee turnoverEmployee Management401-2
Bene?ts provided to full-time employees that are not providedto temporary or part-time employees
Employee Management401-3Parental leaveEmployee Management
GRI 403: Occupa-tional Health andSafety 2018
403-1Occupational health and safety management system
Work Production and Occupa-
tional Health403-2
Hazard identi?cation, risk assessment, and incident investiga-tion
Work Production and Occupa-
tional Health
GRI StandardsDisclosureChapter Reference
GRI 403: Occupa-tional Health andSafety 2018
403-3Occupational health services
Work Production and Occupa-tional Health403-4
Worker participation, consultation, and communication onoccupational health and safety
Work Production and Occupa-tional Health403-5Worker training on occupational health and safety
Work Production and Occupa-tional Health403-6Promotion of worker health
Work Production and Occupa-tional Health403-7
Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationships
Work Production and Occupa-tional Health403-8
Workers covered by an occupational health and safety man-agement system
Work Production and Occupa-tional Health403-9Work-related injuries
Work Production and Occupa-tional Health403-10Work-related ill health
Work Production and Occupa-tional HealthGRI 404: Trainingand Education2016
404-1Average hours of training per year per employeeEmployee Management404-2
Programs for upgrading employee skills and transition assis-tance programs
Employee Management404-3
Percentage of employees receiving regular performance andcareer development reviews
Employee ManagementGRI 405: Diversityand Equal Oppor-tunity 2016
405-1Diversity of governance bodies and employees
Corporate Governance
Employee ManagementGRI 406: Non-dis-crimination 2016
406-1Incidents of discrimination and corrective actions takenEmployee ManagementGRI 407: Freedomof Association andCollective Bargain-ing 2016
407-1
Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk
Employee ManagementGRI 408: ChildLabor 2016
408-1
Operations and suppliers at signi?cant risk for incidents ofchild labor
Employee Management
GRI 409: Forced orCompulsory Labor2016
409-1
Operations and suppliers at signi?cant risk for incidents offorced or compulsory labor
Employee ManagementGRI 413: LocalCommunities 2016
413-1
Operations with local community engagement, impact assess-ments, and development programs
Community Welfare413-2
Operations with signi?cant actual and potential negative im-pacts on local communities
Not InvolvedGRI 414: SupplierSocial Assessment2016
414-1New suppliers that were screened using social criteria
Green and Sustainable Supply
Chain414-2Negative social impacts in the supply chain and actions takenSupplier ManagementGRI 416: CustomerHealth and Safety2016
416-1
Assessment of the health and safety impacts of product andservice categories
Product Quality
Customer Service416-2
Incidents of non-compliance concerning the health and safetyimpacts of products and services
Product Quality
Customer ServiceGRI 417: Marketingand Labeling 2016
417-1
Requirements for product and service information and labe-ling
Product Quality
Customer Service417-2
Incidents of non-compliance concerning product and serviceinformation and labeling
Product Quality
Customer Service417-3
Incidents of non-compliance concerning marketing communi-cations
Product Quality
Customer ServiceGRI 418: CustomerPrivacy 2016
418-1
Substantiated complaints concerning breaches of customerprivacy and losses of customer data
Customer Privacy and Informa-
tion Security
125126
About This
Report
Message fromthe Chairman
AboutLAZZEN
Honors in
2024
Digital-Intelligent
New QualityProduction
Climate Change andOpportunities
Building a GreenNew Ecosystem
Supply ChainResponsibilityManagement
Full Lifecycle
Service
SustainableComplianceGovernance
Uniting HeartsToward a SharedVision
CollectiveGuardianship ofCommunity Well-being
IndependentAssuranceStatement
KeyPerformanceTable
IndicatorIndex
FeedbackandSuggestions
Multiple-choice questions (Please check in the appropriate box)
Feedback and SuggestionsDear Reader,Greetings!Thank you very much for taking the time and attention to read the LAZZEN 2024 ESG Report. To provide you andother stakeholders with more valuable information and to e?ectively enhance the Company's ability and standardsin ful?lling environmental, social and corporate governance, we sincerely welcome your opinions and suggestions.
Open-ended questions
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2.How does the report respond to and disclose the concerns of stakeholders?
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3.How do you think LAZZEN is performing in terms of economic responsibility?
7.How do you think LAZZEN is performing in terms of community responsibility?
8.How clear, accurate, and comprehensive are the information, indicators, and data disclosed in this report?
9.Do you ?nd the content arrangement and formatting of this report convenient for reading?
Please provide your opinions or suggestions regarding LAZZEN ful?llment of social responsibility and this report.
4.How do you think LAZZEN is performing in terms of environmental responsibility?
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5.How do you think LAZZEN is performing in terms of safety management?
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6.How do you think LAZZEN is performing in terms of employee responsibility?
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