ENVIRONMENTAL, SOCIALAND GOVERNANCE REPORT
STOCK CODE: 300316
The crystal of technology enjoysgreat prestige in the world
Compliance Operation 23Business Ethics 31Risk Management 28Privacy and Information 35Security
Supply Chain Security 79Coordinated Industrial 82DevelopmentEnvironmental Compliance 41Management
Addressing Climate 48ChangeGreen Industry 43Development
E?cient Resource 51Utilization
Employee Rights and 91Bene?tsEmployee care 110Employee Development 97Innovation-driven 67Quality Management 71IP Protection 70
Public Welfare 123Rural revitalization 125
Sound Operations andLean Management
2177398965121
Striving for Win-winCooperation and Buildinga Promising FutureMeeting a Green andFlourishing Future
United in Strength andPeople-CentricIgniting Innovationand AdvancingTogether
Staying True to OriginalAspiration, Feeding Backthe Society with Gratitude
About This Report 012024 Major Events 09About JSG 05Highlights in 2024 12
ESG Management 13Chairman Message 032024 Honors 11
ESG Performance 127Reader Feedback 133Index of Indicators 131Company Development History 07
目录
CONTENTS
010402050306
Customer Service 74
Occupational health and 113safety
0102
This is the 4th Environmental, Social, and Governance (ESG) Report published by Zhejiang Jingsheng Mechanical& Electrical Co., Ltd. This Report discloses the Company's development practices and major achievements ineconomical, environmental, social, and corporate governance responsibilities for the year 2024 in an attempt tocommunicate effectively with various stakeholders and systematically respond to stakeholder expectations andrequirements.
Time FrameThe Report covers the period from January 01, 2024, to December 31, 2024. To enhance the comparability andperspectiveness of the Report, some content appropriately refers to previous and subsequent years.Basis for CompilationUN Sustainable Development Goals (SDGs) 2030Global Reporting Intiative GRI StandardsGuidelines No. 17 of Shenzhen Stock Exchange for Self-Regulation of. Listed Companies—Sustainability Report (Trial)
Chinese National StandardGuidelines on Social Responsibility Reporting (GB/T36001-2015)Data SourceThe data in this Report comes from the raw data of the Company's actual operation, public data from governmentdepartments, annual financial data, relevant internal statistical reports, third-party questionnaires and third-partyevaluation interviews. The financial data in this Report is in CNY. In case of any inconsistency between this Reportand the Financial Report, the Financial Report shall prevail.Report TerminologyFor the purpose of presenting the economic, social and environmental responsibilities of Zhejiang JingshengMechanical & Electrical Co., Ltd. (hereinafter referred to as "JSG", the "Company" or "we") and its subsidiaries, thefull names and abbreviations of some of the subsidiaries covered in this Report are as follows:
About This Report
Report AcquisitionThis Report is published in electronic format and can be accessed on the Shenzhen Stock Exchange website (http://www.szse.cn) and CNINFO (www.cninfo.com.cn). The Report is available in both English and Chinese. In the eventof any discrepancy in the interpretation of the two texts, the Chinese version shall prevail.
Huixiang E&H refers to Hangzhou Huixiang Electronic Hydraulic Technology Development Co., Ltd.Jingchuang Automation refers to Zhejiang Jingchuang Automation Equipment Co., Ltd.JingHuan Electronic refers to Inner Mongolia JingHuan Electronic Materials Co., Ltd.Jinghong Precision refers to Zhejiang Jinghong Precision Machinery Manufacturing Co., Ltd.Jingyu New Materials refers to Zhejiang Jingyu New Materials Co., Ltd.Jingrui Electronic refers to Zhejiang Jingrui Electronic Materials Co., Ltd.Jingsheng Photonics refers to Zhejiang Jingsheng Photonics Technology Co., Ltd.Jingxin Green Diamond refers to Zhejiang Jingxin Green Diamond Technology Co., Ltd.Meijing New Materials refers to Zhejiang Meijing New Materials Co., Ltd.Ningxia Jingchuang refers to Ningxia Jingchuang Intelligent Equipment Co., Ltd.Ningxia JingHuan refers to Ningxia Jinghuan New Material Technology Co., Ltd.Ningxia Xinjingsheng refers to Ningxia Xinjingsheng Electronic Materials Co., Ltd.Qiushi Semiconductor refers to Zhejiang Qiushi Semiconductor Equipment Co., Ltd.ZVISION Optoelectronics refers to Hangzhou ZVISION Optoelectronics Technology Co., Ltd.Qiushi Chuangxin refers to Zhejiang Qiushi Chuangxin Semiconductor Equipment Co., Ltd.* See the Company's 2024 Annual Report for the scope of the specific holding subsidiaries covered in this Report.
0304
Chairman Message
2024 is a crucial year for JSG to anchor its "advancedmaterials, advanced equipment" strategy and drive high-quality development through innovation. We adhere tothe core values of "Honesty and optimism, Loyalty anddedication, Struggle orientation, Partner accomplishment,Pioneering and innovation, Co-creation of brilliance". Withtechnological breakthroughs as the spear and responsibilityas the shield, we continue to make breakthroughs inthe semiconductor and PV fields, and strive towards themission of "To become a leading equipment supplier ofsemiconductor materials, to facilitate high-tech industrydevelopment for green intelligent manufacturing". We havebuilt an ESG management system covering the entire valuechain, promoted the parallel transformation of technologyand green, and achieved a deep integration of technologyleadership, ecological co construction, and social value.The core belief we always adhere to is striving for excellenceand achieving partnership. In the challenges posed by therestructuring of the global semiconductor industry chainand changes in the supply and demand of the globalPV new energy industry, the company actively seizedopportunities and promoted the development of newbusinesses, forming three core business boards coveringsemiconductor equipment, semiconductor substratematerials, semiconductor consumables, and components,laying a solid foundation for the company's steadygrowth. We have predicted the downward cycle of the PVindustry and effectively balanced the risks and benefitsof the PV equipment business through scientific riskcontrol and lean manufacturing management, creatingmaximum value for shareholders and employees. At thesame time, the company is targeting the new track of thesilicon carbide industry, rising late and quickly standingout with differentiated technological innovation, preciseproduct positioning, full industry chain technology layout,and intelligent manufacturing, winning a leading positionin the industry. In addition, we continue to deepen ourcollaboration with long-term strategic partners, workingtogether to build a healthy and sustainable industryZhejiang Jingsheng Mechanical & Electrical Co., Ltd.ChairmanDr. Cao Jianwei
ecosystem. This deep cooperation is not only a reflection of trust, but also a powerful driving force for us to continuouslyoptimize our services and enhance our competitiveness.Our unwavering pursuit is to explore and innovate, and create brilliance together. The company always adheres tothe dual wheel drive of technological innovation and deep exploration of customer needs, and fully promotes researchand development innovation. In 2024, the company will lead the industry development with a series of cutting-edgetechnologies. In the field of semiconductor equipment, we have achieved breakthroughs in the localization of high-endequipment such as 12 inch vacuum epitaxy and advanced packaging three-axis thinning machines, and our productperformance has reached the international advanced level; Innovative fully automated large-size silicon carbidegrowth and processing technology helps accelerate the upgrading of the silicon carbide industry; The semiconductordiamond wire slicing technology and the new generation polishing technology are driving the global leading process ofsemiconductor large silicon wafer equipment. In the process of rapid development and intensified competition in the PVindustry, the company has taken the lead in launching core efficiency improving EPD equipment and cost reducing silverremoval component equipment through continuous research and development technology innovation. Innovativeproducts have greatly enhanced the company's competitiveness and ability to withstand cyclical fluctuations, laying asolid foundation for rapid development in the next cycle.Talent oriented, organization based is the cornerstone of our stable development. JSG always regards talentas the most valuable asset, and constructs a full cycle talent development system of "talent introduction,cultivation, and retention" with the values of "honesty, optimism, loyalty, and dedication". The company usesJingsheng Academy as a platform to regularly conduct specialized training. Through different fields and levelsof professional courses, it establishes a process decentralization and accountability mechanism, implements acapability appointment system, and uses value creation to drive management, promoting the career developmentof technical cadres and continuously cultivating professional talents for the company. In 2025, the company willcontinue to focus on upgrading its operational capabilities and plan to carry out improvement projects based onrisk management and process performance. By combining employee empowerment, talent development, andexcellent team building, driven by a future oriented vision and strategic decision-making, the company will build anindustry-leading human resources ecosystem and organizational effectiveness system.Looking back on eighteen years of hard work and perseverance, my original intention remains unchanged. We deeplyunderstand that only by putting customers at the center, innovation as the driving force, and talent as the foundation,can we stand at the forefront of change. Looking ahead to the future, JSG will take ESG as its strategic guidanceand deepen its three major commitments: firstly, technology first, accelerate the localization of semiconductorequipment, upgrade PV technology, and contribute to global carbon neutrality; Secondly, collaborative development,working together with customers, employees, and communities to build a community of responsibility and promotethe development of the industrial chain; Thirdly, we will operate steadily, driven by both digitalization and greenmanufacturing, to create a hard technology benchmark with a long-lasting foundation.Finally, on behalf of the board of directors, I would like to express my heartfelt gratitude to every fighter, partnerand social supporter! Let us take the vision of "The crystal of technology enjoys great prestige in the world" andjoin hands to embark on a new journey of high-quality development.
0506
About JSG
Zhejiang Jingsheng Mechanical & Electrical Co.,Ltd. was established in 2006 and went public in 2012. It is a leading "advancedmaterials and equipment" high-tech enterprise. The Company has a research and management team centered aroundprofessors and PhDs, as well as technical research platforms such as the national postdoctoral research workstation andthe national enterprise technology center, and multiple professional research institutes. Our main business products involvesemiconductor equipment, semiconductor substrate materials, and semiconductor consumables and components.In the field of semiconductor equipment, the Company is a leading enterprise in the domestic integrated circuit level 8-12 inchlarge silicon wafer growth and processing equipment; Successfully deployed advanced process and packaging equipment suchas 8-12 inch silicon atmospheric pressure epitaxy, 8-12 inch vacuum epitaxy equipment, and thinning machines, and obtainedmarket recognition; 6-8 inch silicon carbide epitaxial equipment achieves domestic substitution, leading the industry in marketshare; PV equipment technology and scale are globally leading. In the field of semiconductor materials, the Company's sapphirematerial technology and scale are globally leading; The technology and scale of 6-8 inch silicon carbide substrate are at theforefront in China. In the field of semiconductor consumables and components, the technology and scale of semiconductor
2 major equipmentmanufacturing bases Shangyu, Hangzhou2 major semiconductorcomponent basesShangyu, Fukushima (Japan)3 major materialmanufacturing basesShangyu, Hohhot, Yinchuan
4 major R&D centersShangyu, Hangzhou, Hohhot, Tokyo(Japan)2 overseas officesMalaysia, SingaporeGlobal businessEurope, Southeast Asia, Middle East,North America
Company Profile
Global presence
VisionMissionValues
· The crystal of technology enjoys
great prestige in the world
· To become a leading equipmentsupplier of semiconductormaterials
· To facilitate high-tech industrydevelopment for greenintelligent manufacturing
· Honesty and optimism· Loyalty and dedication· Struggle orientation· Partner accomplishment· Pioneering and innovation· Co-creation of brilliance
Total number of employees
6,000+
Total R&D personnel
1,500+
Number of doctors40+
Owned patents1,000+
Core business areas
A
leading
gem
materia
l
e
nterp
r
ise in
bo
th
technology
and
scale
SiC
eq
u
ip
mentand
materialleading
enterpriseA leading
equipm
ent
enterprise
in
bothtechnology
and
scaleLeading
enterprise in
-
inch
IC
crystalmaterials
and
equipment
LED
substr
ate
materialCondu
ctive
m
a
te
ri
a
l
S
e
m
i
-
in
s
u
l
a
t
i
n
g
m
a
t
e
r
i
a
l
T
r
a
n
s
p
a
r
ent
window
material
PV
equipment
IC
industry
equipment
AI
O
SiCSi
quartz crucibles are leading domestically, while the technology and scale of PV quartz crucibles are leading globally. At the sametime, the Company's processing capability and mass production scale of semiconductor precision components such as largevacuum chambers, large high-precision frames, and precision transmission spindles are among the top in China.
0708
2006
Shangyu JingshengMechanical & ElectricalEngineering Co., Ltd.established2007
Developed the first domesticfully-automatic mono crystalsilicon growth furnace andachieved batch sales2008Successfully developedthe largest fully-automaticCzochralski mono crystalpuller in China
2017Acquired 10%shares andjointly established theZhonghuan AdvancedSemiconductor MaterialsCo.,Ltd with Zhonghuan Developed a 12-inch semiconductorsuperconducting magneticfield mono crystal pullerInvested in semiconductorprecision partsbase throughJingHong PrecisionEstablished JSG JapanCo.,Ltd.,starting the pathof international R&D forsemiconductor equipment
2009Successfully developed thefirst domestic dual-sourceJSH450 multicrystal ingotfurnace
2014
Established JingRuiElectronic, with a productioncapacity of 12 million piecesof sapphire slicing andpolishing projects
2018Successfully developed a 6-inch SiC crystalgrowth furnaceEstablished PRIMET Japan Co., Ltd.,expanding into the high-end semiconductorprecision component fieldEstablished Qiushi Semiconductor, initiatingthe development of semiconductor CVDequipment2016The 8-inch zone meltingsilicon mono crystal pullerpassed the national 02 specialproject acceptanceEstablished JingchuangAutomation, starting theequipment service journey
2021Successfully developed a 12-inchsemiconductor hard-axis Czochralski siliconmono crystal pullerSuccessfully developed the processexhaust gas treatment equipment for thesemiconductor industryDeveloped the first 8-inch silicon waferthinning machineDeveloped the first chip-end LPCVD, officiallyentering the IC manufacturing field
2010Underwent a shareholdingreform to become: ZhejiangJingsheng Mechanical &Electrical Co., Ltd.
2013Established JingHuanElectronic to engage in thesapphire crystal materialbusiness
2019Successfully developed various equipmentfor G12 silicon wafers, double-side grindingmachines for 8-12 inch silicon wafers, andpolishing machines for 6-8 inch silicon wafersAchieved full coverage of 8-inchsemiconductor silicon wafer growth, slicing,polishing, and CVD processing equipment
2015Acquired ZVISIONOptoelectronics, aiding inthe creation of automatedintelligent production linesThe 300mm Czochralskisilicon mono crystal pullerequipment passed thenational 02 special projectacceptance
2022Crystal Laboratory successfully grew the first150kg deep red rubySuccessfully developed a fully-automaticdiamond growth furnace JSG celebrated its tenth anniversary of listingSuccessfully developed an 8-inch N-type SiCcrystal
2023JSG's Technology Center was recognized as anational enterprise technology centerMeijing New Materials became the firstcompany in China to develop and mass-produce 42-inch quartz cruciblesThe School of Mechanical Engineering ofZhejiang University held the inaugurationceremony of "Jingsheng Building"JSG's annual output of 300,000 siliconcarbide substrates project launched
2011Successfully developed thedomestic first gas-cooledmulticrystalline siliconcasting furnaceSuccessfully developed thefirst sapphire silicon growth
2012Listed on the GEM of theShenzhen Stock Exchange
2020Jointly established the Ningxia Xinjingshengwith Lens TechnologySuccessfully grew a 700Kg level sapphirecrystalCompleted the technical identification ofthe third-generation semiconductor CVDequipmentSuccessfully developed a 12-inch precisiondouble-side polishing machine
Company Development History
0708
0910
2024 Major Events
January
Subsidiary JingHong Precisionwas selected as a smartfactory in Zhejiang Province
March
JSG relocated its headquarters to the Innovation Center
JSG released three new products: 8-inch double-chip silicon carbideepitaxial furnace, 8-inch silicon carbide measurement equipment, and 12-inch fully automatic thinning and polishing equipment
April
Dr. Cao Jianwei, Chairman ofJSG, was honored as a "2024Model Worker of ZhejiangProvince"
September
JSG participated in the 12th CSEAC
Meijing New Materials and Qiushi Semiconductorwere recognized as national specialized, refined,differential, and innovative "Little Giant"enterprises
July
Dr. Zhu Liang, Vice President of JSG, was namedamong the first "Excellent Engineer of ZhejiangProvince"
Jingsheng Photonics exported cell equipment tooverseas customersJSG was selected as a key laboratory in ZhejiangProvince
May
JingHuan Electronic's 1,000kg-class ultra-large sapphiresilicon set a new record
June
JSG participated in the 17th(2024) SNEC InternationalPhotovoltaic PowerGeneration and Smart EnergyConference & Exhibition
December
The Japan Materials ResearchInstitute was established
JSG showcased its productsat the 2024 Semicon Japan
November
JSG won the first 10GW batch orderfor battery cutting edge passivation(EPD) equipment
October
JSG achieved an "A" rating ininformation disclosure fromthe Shenzhen Stock Exchangefor 11 consecutive years
1112
2024 Honors
ESG Key Performance in 2024
ESG荣誉
ESG Honors
National Level
Provincial Level
◆MSCI ESG rating upgraded to BB◆
Achieved an "A" rating in information disclosure from the Shenzhen Stock Exchange for 11consecutive years
2024 Key Honors
◆
5 subsidiaries listed as Specialized,Refined, Special, and Innovative LittleGiants◆ Top 500 Chinese Private Enterprises 2024
◆Top 500 Chinese ManufacturingEnterprises 2024◆Included in the Hurun China 500 list forfive consecutive years◆Ranked the top position in terms of tax
contribution in the Chinese electronicspecial equipment industry for sevenconsecutive years◆Top 100 Electronic InformationCompetitive Enterprises 2024◆Top 500 Private Enterprises in R&DInvestment 2024◆ 2024 Outstanding Equipment Enterprise
◆
Established Zhejiang Postdoctoral Workstation
◆ Top 100 Manufacturing Enterprises in Zhejiang Province 2024
◆Top 100 Fastest Growing Enterprises in Zhejiang Province 2024◆Listed in the "Leading Enterprises of Private Economic Headquarters in Zhejiang Province"in 2024◆
Top 500 High-Tech Enterprises with Innovation Capability in Zhejiang Province
Highlights in 2024
Economy and governance
Total asset
3,155,018 CNY 10,000
Tax paid during 2024138,383 CNY 10,000
Revenue1,757,661 CNY 10,000
Net profit attributable to parent company
250,973 CNY 10,000
independent directors
NOreported incidents of anti-corruption
100%employees receiving anti-corruption trainingSocial
Number of female managers59 Persons
Number of female executives17 Persons
Total employees6,111 Persons
Number of disabled employees
7 Persons
Number of minority employees274 Persons
R&D personnel1,588 Persons
R&D investment
111,919 CNY 10,000
Cumulative number of patents as of December 31, 20241,069 pcsCustomer satisfaction97%
NOcustomer complaints
Donation750 CNY 10,000
Environmental
Planned investment in PV projects in next 3 years1,500 CNY 10,000
Total expected PV power generation
1,816 '0000 kWh
Investment in environmental protection3,582 CNY 10,000
Total wastewater circulation201,212 m
Total recyclable waste
2,062 ton
Cumulative PV investment as of December 31, 2024
7,427 CNY 10,000
Cumulative PV power generation as of December 31, 2024
1,676 '0000 kWh
1314
ESG Management
ESG Management
JSG aims to "become a leading equipment supplier of semiconductor materials, facilitate high-tech industrydevelopment for green intelligent manufacturing", actively assuming responsibilities to shareholders, theenvironment, customers, employees, and the community. JSG builds its ESG management philosophy startingfrom six dimensions: robust governance, environmental protection, technology R&D, collaboration with multipleparties, caring for employees, and contributing to the society.
Climate change is a global challenge that humanity must collectively address. As an industry-leadingsemiconductor and photovoltaic intelligent manufacturing company, we firmly believe that seizing opportunitiesin clean technologies and driving green innovation are essential to accelerate global carbon neutrality. In 2024, weelevated clean technology initiatives to become a core component of our ESG development strategy. Collaboratingwith partners across various sectors, we are committed to advancing the transformation towards clean energy andpromoting low-carbon, green development.
JSG's ESG management philosophy
Robust governanceProtecting the environmentTechnology R&D? Business Ethics? Actively creating shareholdervalue? Solid corporate governance
and operations
? Empowering new energyproducts? Promoting green operationand production? Actively Adopt and MitigateClimate Change
? Continuous innovation? Promoting industrydevelopment
Collaboration with multiple partiesCaring for employeesContributing to the society? Becoming the mosttrusted partner forcustomers? Stable supply chain
? Comprehensive employeetraining system? Transparent promotionpaths? Caring for employeehealth and life
? Focusing on vulnerable
groups
? Conducting publicwelfare donations andactivities
Strategic direction for clean technology opportunity
? Set the greenhouse gas emission reduction targets of carbon peak in 2030 and
carbon neutrality in 2055, with 2022 as the base year? Scientifically eliminate and replace old equipment and upgrade processes toreduce energy consumption and emissions during the operation process? Give priority to clean energy sources such as photovoltaic power generation,promote the transformation of the energy structure, and gradually get rid of thedependence on fossil energy
? Plan the optimal path, use recyclable packaging materials and utensils, and work
together with suppliers to achieve low-carbon and energy-saving goalsLow-carbon
? The Company provides intelligent factory solutions for the semiconductor industry, PV
industry and compound substrate industry to meet customers' digital and intelligent
production mode needs? Build an industrial digital brain, and create an intelligent manufacturing mode to achieve
lean, intelligent manufacturing and management with highly intelligent advanced
manufacturing and efficient organizational managementIntelligent
? Build a globally leading green intelligent high-tech manufacturing enterprise integrating
intelligent equipment for semiconductors, photovoltaics, etc., new materials, and provide
an ecological environment for low-carbon, energy-saving and sustainable developmentManufacturing
? Increase investment in green product R&D, and focus on the development of "advanced
materials and advanced equipment" in green energy fields such as photovoltaic power
generation and LED lighting? Adhere to sustainable development as the focus of the Company's development? Build a green manufacturing system to contribute to the national new energy green
industryGreen
1516
ESG Management Structure
JSG places significant emphasis on ESG risk management and governance standards. The Company has progressivelyenhanced its ESG management system, establishing a three-tier ESG management organizational structure of"decision-making - management - execution", with the board of directors as the decision-making level, the strategy andinvestment committee under it as the management level, and the ESG working group composed of heads of functionaldepartments as the executive level. It uses the internal three-line defense mechanism to ensure the compliance andeffectiveness of ESG management, and effectively guarantee that the Company fulfills its ESG commitments.Board of Directors
Material Topic AnalysisJSG has identified and confirmed the ESG material topics for 2024 by considering the macro policies anddevelopment trends, taking into account the development of its own ESG work and the focuses of its stakeholders,referring to international authoritative standards, benchmarking against the focuses of ratings such as MSCIESG, and communicating with external experts and projects. The Company responds to stakeholder demandsand disclosures through the entire process of topic identification and screening, to stakeholder research,comprehensive analysis of the results, and ultimately to the formation of a material topic matrix. The analysisresults of material topics provide an important reference for the Company's future ESG management work.
Materiality for company's risks and opportunities
2124
Materiality for ESG impact
Governance topicsEnvironmental topicsSocial topics
Employee rights,development, and healthProduct quality and safetyTechnology R&D andinnovationTransparent procurementCustomer serviceLeading industrydevelopmentPublic welfareGender equality
Energy and resourcemanagementGreen logistics (includingpackaging, transportationand warehousing)Clean technologyopportunitiesSource of raw materialsEmission managementSupply chain management(including environmentalrequirements)Addressing climate risksChemical management
Corporate governanceDigital transformationInformation security andprivacy protectionRisk managementIP protectionBusiness ethics and anti-corruptionESG managementCompliance withinformation disclosure
JSG is committed to understanding itsoperations, external environment, andstakeholder relationships to enhance its ESG
Following domestic and international standards and policies,based on industry policy analysis and benchmarking againstpeers, 24 topics related to the Company have been identifiedand summarized.
Company Business AnalysisTopic Identification and Screening
Communicate with internal and externalstakeholders through online questionnaires andother tools, covering employees, customers,investors, suppliers, service providers, governmentand regulatory agencies, media, industryassociations, and cooperation institutions.
Based on the results of stakeholder research, combined withexpert analysis, the material topics are adjusted, the Board ofDirectors reviews the completeness and accuracy of materialtopics, determines their financial materiality and impact,sorts them forms a matrix of material topics, and responds totopics of concern to stakeholders in the Report.
Stakeholder SurveyComprehensive Analysis of Results
It is the highest ESG governance and decision-making body responsiblefor setting ESG strategies and long-term plans, making decisions onESG-related risks, and reviewing external disclosures.Oversees the development of overall and specialized strategic plans,reports regularly to the Board, and coordinates, guides, and supervisesmajor ESG matters and decisions.Develops ESG management policies, handles communications andinformation disclosures, reports progress and outcomes to theStrategy and Investment Committee, and coordinates daily ESGmanagement across departments.
BoardofDirectorsStrategy andInvestmentCommitteeESG Working Group
1718
Stakeholder identificationStakeholder identificationCommunication and responseCommunication and responseExpectations and requirementsExpectations and requirements
●?
Active R&D innovation
●?
Compliance informationdisclosure
●?
Smooth investorcommunication channels
●?
IP training and protection
●?
Establishing a system ofintegrity and ethics
●?
Stable business growth
●?
Protection of shareholderequity
●?
Investor relationsmanagement
●?
Intellectual PropertyProtection
●?
Adherence to business ethics
●?
Internal system publication
●?
Internal online communicationplatforms
●?
Skill training and careerdevelopment guidance
●?
Organizing various employeeactivities
●?
Equity compliance assurance
●?
Comprehensive compensationsystem
●?
Smooth promotion system
●?
Enrich employee activities
●?
Internal control system
●?
Learning and implementingvarious regulatory provisions
●?
Promoting rural revitalizationand realizing "Carbon peakingand Carbon neutrality" goals
●?
Law-abiding businessoperations
●?
Compliance with regulatoryrequirements
●?
Response to nationaldevelopment policies
Employees
Investors andshareholders
Government andregulatory authorities
●?
Supplier assessment,exchange, and training
●?
Transparent procurement
●?
Resource sharing
●?
Supply chain management
●?
Anti-corruption
●?
Mutual benefit and win-winresultSuppliers(service providers)
●?
Collaborative R&D
●?
Exchange visits
●?
Enterprise forums
●?
R&D innovation
●?
Brand collaboration
●?
Industry upgradePartners
●?
Comprehensive qualitymanagement system
●?
Technical discussions
●?
Customer service hotline andcustomer surveys
●?
Satisfaction surveys andfeedback
●?
Product responsibilitymanagement
●?
Industry communication andcooperation
●?
Smooth communicationchannels
●?
Improving customer satisfactionCustomers
●?
Social welfare
●?
Rural revitalization
●?
Volunteer services andcommunity activities
●?
Targeted assistanceCommunity and Public
JSG attaches great importance to stakeholder communication. As a group that mutually influences and sharesmutual benefits with the Company, the expectations and demands of stakeholders are an important reference forthe Company's sustainable development work. The Company regularly understands the expectations and feedbackof internal and external stakeholders such as investors, the government, customers, employees, suppliers, and themedia through various channels.
Stakeholder Communication
1920
SDGs
Responding to the UN Sustainable Development Goals (SDGs)JSG supports the United Nations 2030 Agenda for Sustainable Development and promotes the realization of the UNSustainable Development Goals (UN SDGs 2030) through its actions.
Corresponding Chapters: Chapter 5JSG adheres to an equal employment policy, o?ers fair compensation and bene?ts,and creates a harmonious and equal working environment.SDG 10：Reduced inequalities
Corresponding Chapters: Chapter 2, Chapter 6JSG adheres to the environmental protection and low-carbon design concepts, andcontributes to the promotion of clean energy technology and innovation, creatinggreen energy for the world. In addition, JSG actively organizes public welfare activitiesto return the society with various practical actions.
SDG 11：Sustainable cities and communities
Corresponding Chapters: Chapter 1It establishes a governance system with clear accountability, compliance, andefficiency, strengthens business ethics management, pays attention to informationsecurity and intellectual property protection, and maintains the sustainable operationand development of the company.
SDG 16：Peace, justice, and strong institutions
Corresponding Chapters: Chapter 1, Chapter 3, Chapter 4JSG empowers technological innovation through industry-academia-researchcooperation, assisting in the collaborative development of specialties andindustries. It establishes honest, transparent, and mutually trustworthyrelationships with suppliers, creating a responsible supply chain andpromoting cooperation for mutual benefits across the entire industry chain
SDG 17: Partnerships for the goals
Corresponding Chapters: Chapter 2, Chapter 3JSG firmly grasps opportunities in clean technology, increases investments in greentechnology, continuously monitors its greenhouse gas emissions, increases the use ofclean energy, and constantly improves its energy-saving and emission-reduction e?orts.
SDG 13：Climate action
Corresponding Chapters: Chapter 4, Chapter 5JSG consistently enhances its employee training, creating a training brand systemcentered around Jingsheng Academy. For several years, it has conducted varioustraining activities such as new employee training, team leader leadership training,"Porter Cup", "Lu Ban Cup", etc., empowering employees. The Company hasestablished long-term educational support partnerships with universities, whichvigorously support national R&D personnel.
SDG 4：Quality education
Corresponding Chapters: Chapter 5It values the rights of female employees, practices equal pay for equal work amongmale and female employees, and focuses on the development of female employees.SDG 5：Gender equality
Corresponding Chapters: Chapter 2, Chapter 5JSG continuously improves its occupational health and welfare system, implementsvarious health and safety measures, and fully guarantees the physical and mentalhealth of its employees.
SDG 3：Good health and well-being
Corresponding Chapters: Chapter 5JSG provides employees with market-competitive salaries, develops and implementslong-term compensation incentive programs.
SDG 8：Decent work and economic growth
Corresponding Chapters: Chapter 3, Chapter 4It insists on innovation-driven, independent R&D, and is committed to leading thedevelopment of the global PV equipment industry with innovative technologies andproducts
SDG 9：Industry, innovation, and infrastructure
2122
Compliance Operation 23Risk Management 28Privacy and Information Security 35
Business Ethics 31
Sound Operations andLean Management
JSG is committed to establishing an exemplary governance model by developinga robust governance structure and a comprehensive internal control and riskmanagement system, upholding business ethics, and fostering an environment thatensures information security. These initiatives serve as the foundation for stabledevelopment, enabling the Company to project a responsible corporate imageand create long-term, stable, and sustainable value for shareholders, customers,employees, and a broader range of stakeholders.
2324
Compliance Operation
JSG strictly abides by theCompany Law of the People's Republic of China, theSecurities Law of the People's Republic ofChina, theCode of Corporate Governance for Listed Companies, and the legal regulations of the Securities RegulatoryCommission and the stock exchanges. It has established a governance structure composed of the General Meeting ofShareholders, the Board of Directors, the Board of Supervisors, and the management team, and continuously improvedvarious governance systems and the working rules of the three mechanisms, to promote standardized operations andenhance corporate governance, ensuring the protection of the legal rights of the Company and its stakeholders.
The Board of Directors of the Company has established four specialized committees: Nomination, Compensationand Assessment, Audit, and Strategy and Investment. The rules of procedure for each committee have been revisedand improved, operating strictly according to the rules of procedure of each specialized committee, providingscientific and professional advice for the decision-making of the Board of Directors.
Operation by the Board of Directors, the Board of Supervisorsand the General Meetings of Shareholders
Composition and Responsibilities of the three Mechanisms
Key PerformanceIn 2024, the Company held 1 General Meeting of Shareholders, 6 Board Meetings, and 6 SupervisoryMeetings. A total of 56 resolutions were considered.
Committee
Name
Key ResponsibilityCommittee Independence
AuditCommittee
Understand the progress of business operations andmajor issues;Guide internal audit work and review the Company'sfinancial statements and business data;Proposing the appointment or replacement ofexternal audit firms;Overseeing the Company's internal audit system andits implementation;Managing communication between internal andexternal audits;Review the Company's financial information and itsdisclosure.
Ms. Fu Qi is the chairperson, and Mr.Zhao Jun and Mr. Pang Baoping arecommittee members;The Committee consists of 3independent directors, with 100%independence.
Strategy andInvestmentCommittee
Review the long-term development strategy and majorinvestment and financing decisions of the Company,in light of the development of the industry in whichthe Company operates and its own developmentsituation.
The Committee consists of Mr. CaoJianwei (chairperson), Ms. QiuMinxiu, and Mr. Zhou Zixue.
NominatingCommittee
Advise and make recommendations to the Boardof Directors on the selection of directors (includingindependent directors), General Manager andother senior management of the Company, and beresponsible to the Board of Directors.
The Committee consists of Mr.Zhao Jun (chairperson), Mr. PangBaoping, and Mr. He Jun;The Committee includes 2independent directors.RemunerationandEvaluationCommittee
Review the compensation policy and assessmentschemes for the directors and senior management ofthe Company, evaluate and review the work situationsof the directors and senior management accordingto performance evaluation standards, review theimplementation of the Company's restricted stockincentive plan.
The Committee consists of Mr. PangBaoping (chairperson), Ms. Fu Qi,and Mr. Mao Quanlin.The Committee includes 2independent directors.
Organization chart of the Company
General Meeting of Shareholders
Board of DirectorsBoard of SupervisorsNominating Committee
Remuneration andEvaluation Committee
Audit Committee
Strategy and Investment
Committee
? The Board of Supervisors, according to the powers conferred by the Articles of Association,
supervises the company's operations, management and decision-making, and safeguards thelegitimate rights and interests of the company and its shareholders.? The Board of Supervisors consists of shareholder representatives and an appropriate proportionof employee representatives. The Chairman of the Board of Supervisors is elected by a majority ofall supervisors, and employee representatives are democratically elected by company employeesthrough the employee representative assembly, employee assembly, or other democratic forms.Board ofSupervisors
Board ofDirectors
GeneralMeeting ofShareholders
? The Board of Directors of the Company is a permanent decision-making body, mainly exercisingthe powers granted by laws, regulations, Articles of Association, and the General Meeting ofShareholders, and is accountable to the General Meeting of Shareholders.
? The General Meeting of Shareholders of the Company decides on the business policies
and investment plans of the Company, and reviews important matters of the Company.
Committee Responsibilities and Independence under the Board of Directors
2526
?Remuneration and Evaluation Committee
The Remuneration and Evaluation Committee established under the Company's Board of Directors is responsiblefor formulating the evaluation standards for the Company's directors and senior management personnel andconducting appraisals, formulating and reviewing the remuneration policies and plans for directors and seniormanagement personnel, and continuously improving the evaluation and remuneration management systemsfor the Company's directors and senior management personnel to ensure the fairness and rationality of theremuneration of the Company's directors and senior management personnel. The remuneration policies andplans comprehensively consider the average annual salary level of the industry in which the Company is locatedand the current situation of the Company. The annual salaries of the Company's directors and senior managementpersonnel are linked to the indicators of ESG-related topics such as compliance operation, business ethics, productinnovation and R&D, talent attraction and retention, product quality, and customer complaints, so as to fullymobilize the work enthusiasm of directors and senior management personnel and strengthen the constraints ofresponsibility objectives.
JSG, in accordance with relevant laws and regulations and theArticles of Association, has established governancesystems such as theIndependent Director Work Systemand theSpecial Meeting Work System for IndependentDirectorsto promote the diversity and professional balance of the Board of Directors. The members all possessrich industry experience and professional capabilities in engineering, accounting, law, and other fields, ensuringthe comprehensive governance and insight ability of the Board of Directors, making reasonable decisions,improving risk response capabilities, protecting investors' interests, and enhancing the professionalism ofcorporate governance.
JSG strictly follows theCompany Law of the People's Republic of China,Securities Law of the People's Republicof China,Measures for the Administration of Information Disclosure by Listed Companies, and other laws andregulations, and formulates the "Information Disclosure Management System" and other systems to proactivelydisclose the relevant information in a truthful, accurate, timely, fair, complete and effective manner, effectivelyguard against the risk of information disclosure, and adequately safeguard the shareholders' right to know, inparticular the small and medium-sized shareholders. Since its listing, the Company has consistently achieved an"A" rating in the Shenzhen Stock Exchange's annual information disclosure assessments for 11 consecutive years,reflecting its professionalism and the high recognition of its governance practices by regulatory bodies.All information that needs to be disclosed is announced through the designated information disclosure media,Securities Times and CNINFO (www.cninfo.com.cn).
Key PerformanceIn 2024, the Company paid a total of 1,883.97 CNY 10,000 in remuneration to directors andsenior management.
Key PerformanceIn 2024, the Company's Board of Directors consists of 9 directors, including 3 independentdirectors and 2 women directors.
Key PerformanceIn 2024, the Company disclosed 71 announcement documents, including 4 regular reports,
and there were no incidents of violations of information disclosure regulations resulting inpenalties.The Company has received an "A" rating for annual information disclosure from the Shenzhen
Stock Exchange for 11 consecutive years.
Independence and Diversity
Information Disclosure
Independence and diversity of the members of the Board of Directors
TypeNameGender
Professional AbilityIndustryExperience
RiskManagement
FinancialManagement
ChairmanCao JianweiMale√Non-independent directorQiu MinxiuFemale√Non-independent directorHe JunMale√Non-independent directorMao QuanlinMale√Non-independent directorZhu LiangMale√Non-independent directorZhou ZixueMale
√√Independent directorZhao JunMale√Independent directorFu QiFemale√Independent directorPang BaopingMale√
2728
Protecting Investors' Rights and InterestsJSG has established internal systems such as theInvestor Relations Management Systembased on laws andregulations like theGuidelines for Investor Relations Management of Listed Companiesand theGuideline No. 2 forthe Self-Regulatory Supervision of Listed Companies on the Shenzhen Stock Exchange - Standard Operation ofCompanies Listed on the GEM. It continuously improves public, fair, transparent, and multi-dimensional investorcommunication channels, and actively engages in communication and interaction with investors, showcasing itscore competitiveness and comprehensive influence to the vast investors.
JSG strictly always attaches great importance to enterprise risk prevention, continuously improves its corporategovernance structure, enhances its risk management systems, establishes a sustainable and regular riskmanagement operation system, clarifies responsibilities and powers at all levels of risk management, sets up acomplete risk management process, and takes effective measures to prevent and resolve all kinds of risks to ensurethe steady and sustainable development of the Company.
The Company always attaches great importance to investor returns. Based on the profit distribution policy oftheArticles of Associationand relevant regulations, it establishes a continuous, stable, and scientific returnmechanism for investors through share repurchase, increased cash dividends, and optimized dividend timing.It shares development achievements with investors, protects the interests of all shareholders, strengthens themarket's confidence in the Company's sustainable and high-quality development, and safeguards the legitimaterights and interests of long-term investors.
Investor communication activities
Regularreports and interimannouncements
GeneralMeeting ofShareholders
On-site visitRoadshow
Company
website
Analystmeeting
One-to-onecommunication
Performance
briefing
Annual reportbriefing
Telephoneconsultation
Mediainterviews and
coverage
Key PerformanceSince the year of listing, the Company's cash dividend rate has been maintained at over 20%, with acumulative dividend amount exceeding CNY 3.2 billion (including the 2024 profit distribution).
Risk Management
In September 2024, the Company held the 2024 Management System Release Conference. Nearly 200attendees were present, including the Company's chairman, vice presidents, other executives, experts,system leaders, subsidiary management teams, core group cadres, and representatives from subsidiaryprocess system departments. The conference marked the official release of the upgraded managementsystem, which not only encompasses the Group's headquarters' management functions but also integratessubsidiaries under unified management. The newly added risk identification and management mechanismsfurther promote optimal resource allocation and efficient collaboration within the group, achievingcomprehensive integration from strategic planning to daily operations.
Holding a management system release meeting to continuously improve the Company'smanagement
Case
2024 management system release conference
Risk management process
Riskidenti?cation
Riskassessment
Targetsetting
Riskcontrol
Risksupervision
Riskgovernance
010203040506
2930
Potential risks
The company's main business products include emiconductor equipment, semiconductor substratematerials, and semiconductor consumables & components . There is a risk of cyclical fluctuations due tothe impact of terminal industry demand and industry policies in the semiconductor industry.The company adheres to technological innovation, actively extends the product categories in thesemiconductor equipment subdivision field by continuously increasing the research and developmentefforts of new products, expands the semiconductor substrate material business with broad marketdemand and development prospects, prospectively lays out the domestic replacement market forcore consumables and key components in the semiconductor industry chain, gradually improves thesupporting system of the industry chain products, diversifies business development to reduce the impactof industry fluctuations on the company's performance, and continuously improves the company's corecompetitiveness and risk resistance ability.
Industry fluctuation risk
???Potential Risk
???
Response Measure
The company adheres to a dual wheel drive R&D model of technological innovation and deep exploration of customerneeds, and has established a complete R&D control system from design and production, process improvement,product certification testing, project development application, and other aspects. By strengthening research onnational industrial policies and industry development trends, continuously paying attention to industry developmentdirections and technological frontiers, collecting and analyzing customer needs, market dynamics, competitiveenterprises, and new product and technology information, and based on this, studying and determining the goals,directions, and path planning of the company's new product research and development, actively cultivating, reserving,and introducing high-level R&D technical talents, ensuring the sustainability of the company's R&D innovation.
The semiconductor industry has broad development prospects. With technological progress and thecontinuous improvement of the industrial chain ecology, there are more and more new entrants in variouslinks such as equipment, materials, consumables, and components. In addition, the leading enterprises inthe industry have implemented an integrated strategy based on their brand, scale, technology and otheradvantages, extending and expanding upstream and downstream of the industrial chain. The competitionin the industry continues to increase.The company continues to pay attention to the development of cutting-edge technology in the industry,grasp the development trend of the industry, make a forward-looking layout and reserve according to itsown research and innovation, constantly launch innovative products, continue to maintain the high qualityand progressiveness of the company's products, strengthen technical services, achieve cost reduction andefficiency increase for customers, ensure and gradually improve the market share of core products, andconstantly improve the company's comprehensive competitiveness.
Market competition risk???
Potential Risk
???Response Measure
???Response Measure
The industry in which the company operates is technology intensive. The company has been focusing on theresearch and development, production, and sales of semiconductor equipment, materials, consumables, andcomponents for many years, emphasizing independent research and technological innovation, and combiningmarket demand orientation with forward-looking forecasting for product development. With the continuousimprovement of industry technology, the requirements for products are constantly increasing. If the companycannot quickly launch new products that meet market demand according to the plan, it may affect the marketcompetitiveness of the company's products and have a negative impact on the company's business development.
Technology R&D risk???Potential Risk
The company has a group of core technology and R&Dpersonnel with rich industry experience and innovativecapabilities. They have a deep understanding of thegrowth and processing technology of hard and brittlematerials, which is the foundation for the company'scontinuous technological and product innovation.The demand for high-end technical talents in thesemiconductor industry continues to be scarce, andthe competition for talents among manufacturers isgradually intensifying. If a large number of core technicalpersonnel are lost, it may lead to the diffusion of thecompany's core technology, thereby reducing thecompany's technological advantages and innovationcapabilities, and ultimately affecting the company'sbusiness development.
The company integrates the development of thecompany and its employees by building a goodcareer development platform for technical talents,strengthening corporate culture construction,improving the salary incentive system, andcontinuously implementing equity incentives, inorder to attract and recruit talents and maintainthe stability of the talent team. The company signsa confidentiality agreement with its key technicalpersonnel to clearly define non compete obligationsand responsibilities, in order to minimize oreliminate the loss of key technical personnel andthe resulting risk of technology diffusion.
Risk of loss of technical personnel???Potential Risk
???
Response Measure
The PV industry is subject to short-term cyclicalfluctuations, and downstream customers of thecompany may adjust the progress of expansionprojects based on their expectations of theindustry situation and their own developmentsituation. There is a certain degree of uncertaintyin the execution of contracts that have been signedbetween the company and customers but have notyet been fulfilled. Some downstream customersmay cancel orders or request delayed deliveryand payment, and the company has the risk ofunfulfilled orders.
In the process of market development, the companystrengthens due diligence and other channelsto understand the business situation of targetcustomers, focusing on developing large and high-quality customers with large scale, strong operatingstrength, and good financial conditions. The currentorder customers are mostly industry leaders andcompetitive listed companies or large enterprises.At the same time, the company implements strictcustomer credit management system, signsstandardized commercial contracts, implementsstable account term management, continuouslytracks customer financial status, strengthenscollection, and reduces order fulfillment risks.
Order fulfillment risk???Potential Risk???Response Measure
3132
Business EthicsJSG places a high emphasis on adhering to principles and norms of business ethics throughout its production,operation, and management processes, insists on fair competition, and strictly carries out anti-corruptionmanagement. JSG actively constructs an integrity and ethics system, using self-examination, public supervision,and oversight from other relevant parties to ensure lawful and compliant operations. The Company also continuesto carry out integrity publicity, education and training to enhance employees' awareness of integrity and lay a solidfoundation for building a transparent and fair business environment.
Fair Competition
JSG is committed to establishing transparent cooperation relationships with upstream and downstream suppliers andpartners. In business operations, it practices the principles of fairness, justice, and openness, opposes unfair competitionbehaviors like price monopolies. In 2024, the Company has no negative incidents that violate fair competition.The Company advocates for compliance in its promotional activities, continually standardizing the process of brandinformation release to ensure accuracy, timeliness, and compliance. The Brand Promotion Department has developed andimplemented the Brand Promotion Information Release Management Process, assigning specific responsible persons forplanning, execution, inspection, and analysis to ensure the standardization of external brand communications.Additionally, JSG regularly conducts training on anti-unfair competition laws and regulations for its employees to strengthencompliance awareness. In 2024, the Company improved thePartner Integrity Cooperation Agreement, continuouslypromoted transparency in business activities and fostered a fair competitive business environment, thereby solidifying itsrole as a defender of sound market economic order.
JSG's integrity and ethics system
Employees：Caring and respect，Establish a platform for value creation and sharing
Supplier：Establish a partner supply chainCustomer：Respect each other, abide by integrity, respond quickly, exceedcustomer needs and achieve win-win resultsSociety：Develop JSG's business Contribute to the societyShareholder：Effectively protect the interests of shareholders, especially thoseof minority shareholders
Corporateintegrity andethics system
Equal Treatment of SMEsJSG strictly complies with relevant regulations and upholds the integrity management principles, and places high importanceon collaborations with small and medium-sized enterprises (SMEs). Through sound internal management, a rigorous suppliermanagement system, and a robust financial framework, the Company ensures timely payments to SMEs. In 2024, there wereno instances of overdue payments to SMEs, reflecting the Company's support for these enterprises and highlighting JSG'sefforts in maintaining good commercial reputation and promoting collaborative development within the industry chain.Integrity in Professional Conduct
Organizational structure and responsibilities of anti-corruption management
JSG strictly adheres to laws, regulations, and the requirements of securities markets and regulatory bodies.The Company has established and publicly disclosed management systems such as the Anti-Corruption Policy,
designating the Board of Directors as the highest supervisory authority on anti-corruption matters. The InternalAudit Department operates as a permanent institution, collaborating with the Regulation Office and variousfunctional departments to form a comprehensive organizational structure. Through the implementation ofspecific internal control procedures and mechanisms, JSG effectively prevents and addresses fraudulent activities,strengthens integrity and compliance governance, reduces operational risks, and standardizes business conduct,thereby providing a strong foundation for the Company's steady development.
Oversees the development and implementation of anti-corruption and anti-bribery policies, ensuring alignment with legal regulations and corporategovernance standards.Manages anti-corruption and anti-bribery efforts, reviews and supervisesthe effectiveness of the anti-corruption management system and relatedpolicies, and reports findings to the Board of Directors.A dedicated body under the Board responsible for tasks such as anti-corruption audits, handling reports, and conducting investigations. Itregularly updates the Audit Committee on audit results and reported casesto ensure effective policy enforcement.Regulation Office：Ensures the enforcement of decisions regarding responsiblepersonnel, maintaining accountability within the organization.Functional departments ：Each department is responsible for its own anti-corruption initiatives, monitors compliance among its members, andcollaborates with the Audit Department and other relevant bodies to upholdanti-corruption standards.Regulation
Office
Functionaldepartments
Board of Directors
Audit Committee
Audit Department
3334
The Company strengthens anti-corruption management by conducting audits and corruption risk assessmentsacross all business departments, focusing on business ethics, enhancing internal controls, and ensuring externaloversight to prevent corruption. Annual audits target high-risk areas, while other departments perform self-assessments, ensuring comprehensive coverage of all operational aspects over a three-year cycle with continuousauditing throughout the year.
?Anti-corruption risk audit
JSG's Integrity Practice Complaint Channel
Integrity promotion and training
The Company actively fosters an anti-corruption corporate culture, clearly defining the red lines of corruptionbehavior to employees. Upon hiring, the Company signs anIntegrity Commitmentwith employees and conductsanti-corruption training for new employees. In addition, the Company regularly conducts effective communicationand training on the Company's anti-corruption policies, procedures, relevant measures, and regulations in variousforms, such as the release of employee handbooks, company rules and regulations, publicity, announcements onthe local area network, warnings of negative incidents, and special training on clean and honest work, to ensurethat there are no acts of improper transfer of benefits in the Company's business activities.?Whistleblowing and whistleblower protection mechanism
In 2024, the Company conducted training activities on the interpretation and prevention of occupational crimes. Throughthe analysis of real cases and the promotion of laws and regulations, employees gained a deep understanding of theseriousness and harmfulness of occupational crimes. This training made employees remain alert in their thoughts, realizingthat integrity in professional conduct is not only a company requirement but also the legal bottom line. This activitystrengthened the Company's integrity culture construction and enhanced employees' awareness of the rule of law.
Carrying out training on the interpretation and prevention of duty-related crimes, andstrengthening the construction of the Company's integrity culture
Case
Integrity training
Key PerformanceIn 2024, the Company had no anti-corruption reporting incidents, conducted one practice withintegrity and anti-corruption training, and the employee coverage rate of anti-corruption trainingreached 100%
Note
.
JSG WeChat official account0571-89905290（ext. 8081）
ia@jsjd.cc
Audit Department of Zhejiang Jingsheng Mechanical& Electrical Co., Ltd., No. 500 Shunda Road, LinpingDistrict, Hangzhou City, Zhejiang Province
Online reporting channelWhistleblowing hotline
Whistleblowing email
Address of complaint by letter or
in person
The Company has established and improved a mechanism for reporting corruption, set up reporting channelssuch as hotlines, emails, and anonymous mailboxes to encourage all internal and external stakeholders of theCompany to promptly contact the Company when they discover any fraudulent behavior by the Company'semployees or partners. The Company stipulates that investigators should strictly keep confidential the identityinformation of whistleblowers and the content of their reports during and after the investigation process, andshall not disclose the relevant materials of whistleblowers of fraud and the investigation without authorization(except for publicly announced information). Any act of retaliation is strictly prohibited. Those who violate theregulations by disclosing information or taking retaliatory actions against whistleblowers or investigators will beseverely punished, and measures such as dismissal and termination of the labor contract will be taken. If the lawis violated, the case will be transferred to the judicial authorities for handling.
Note: All employees in 2024 were full-time staff; the Company did not employ outsourced, part-time, or intern personnel.
3536
JSG strictly abides by laws and regulations such as theNational Security Law of the People's Republic of Chinaand theCybersecurity Law of the People's Republic of China, has formulated systems like theInformation SecurityManagement Manual, Information Security Audit Management and Control Procedure, and added managementfiles such asConfidential Area Management and Control Procedure, Information Data Management and ControlProcedureandBaseline Security Management and Control Procedure, etc. It has continued to build an informationsecurity management system and established an information security management system model to safeguardinformation privacy and security against ISO 27001.
The Company has established an organizational structure for information security management, forming a three-tier structure of "Board of Directors-Information Security Management Committee-Information Security WorkingGroup", with the Chairman of the Board of Directors and the Vice President of Operations serving as the Directorof the Information Security Management Committee (ISMS) and the Executive Deputy Director of the ISMS,respectively. This leadership drives the heads of multiple departments such as the R&D Center, Sales Center, and ITDepartment, along with security officers, to collectively promote privacy and information security work.
Information security management system model
Privacy and Information Security
Organization chart of information security system
Board of Directors
Information Security Management CommitteeInformation Security Working GroupTo strengthen information and data security, the Company has adopted a multi-dimensional strategy tocomprehensively enhance the level of information security protection. At the management level, the Company hasformulated documents such as theInformation Data Management and Control Procedure, the Baseline SecurityManagement and Control Procedure, and the Information Security Emergency Response Process. In terms oftechnical protection, the Company has deployed a file encryption system and is in the process of implementinga network access control system. Moreover, the Company has taken measures to improve employees' awarenessof information security. These measures include providing information security training for new employees, usingpromotional posters for publicity, setting up computer screensavers as reminders, and regularly conductinginformation security-themed publicity on the intranet.
The Company has planned and implemented theJSG Security Service Implementation Plan, comprehensivelytested the Company's network security protection capabilities, improved the monitoring and emergency responseabilities for network security incidents, and continuously refined an information security management system andoperational system that adapts to business development and meets the needs of secure growth.
Screensaver reminder Fraud prevention promotion
Information security requirements and
expectations
Information security management
StakeholdersStakeholders
Disposal
Planning
Inspection
Implementation
Establishment
Maintenance andimprovement
Implementationand operation
Monitoring and
review
3738
The Company strictly complies with the requirements of thePersonal Information Protection Law of the People'sRepublic of China,the Data Security Law of the People's Republic of Chinaand theCybersecurity Law of thePeople's Republic of China, strengthens the management of data compliance, and carries out compliance riskassessment, compliance review and compliance training for the collection, use, transmission and handling of theprivacy of its employees, visitors and partners in the course of its daily operations, so as to safeguard the privacyand information security of the Company and its customers.
Information security training site
Data security inspection content
The Company enforces strict data control, conducts daily data security inspections to assess potential risks in datastorage, transmission, and processing, promptly identifies and fixes vulnerabilities, and establishes systems suchasData Backup Strategy Execution FormandData Backup and Recovery Registration Formto prevent data loss ordamage due to hardware damage, software failures, human errors, virus infections, etc., thus ensuring the securityand integrity of the Company and customer data.
Network security penetration project with "four major measures and nine tasks"Phase 1:Phase 2:
Investigation and cleanup of data leakage channelsSimulation of malicious attacksTask One: Security policy verificationTask Two: Failure detectionTask Three: Penetration test
Task Four: Data exfiltration testTask Five: Attacker team evaluationTask Six: Sensitive information collection
Phase 3:Phase 4:
Normal securityOther security
Task Seven: Consulting and planning
Task Eight: Full traffic threat detectionTask Nine: Emergency response
Key PerformanceIn 2024, the Company had0 data security incidents and 0 customer privacy disclosure incidentsIn 2024, the Company conducted12 information security trainings for newemployees and 6 special trainings on information security and privacy protectionData TypeInspection ContentData stored in data serverData centers, servers, storage devices, etc.Business data
File sharing, and virtual machinebusiness system dataBackup dataBackup data of various business systems
published 23 information security tips on the corporate websiteproduced10 roll-up copies for information security awareness promotion.
3940
2024 Environmental, Social and Governance (ESG) Report
Environmental Compliance Management 41Green Industry Development 43E?cient Resource Utilization 51
Addressing Climate Change 48
Meeting a Green andFlourishing Future
JSG aims to To become a leading equipment supplier of semiconductor materials,to facilitate high-tech industry development for green intelligent manufacturing.The Company is well aware that environmental management is fundamental, andactively responding to climate change is its responsibility. It pays close attentionto the efficient utilization of water resources and energy, fully promotes greenoperations, and protects biodiversity and ecosystems. JSG also continuallystrengthens environmental awareness among all employees, steadfastly advancingtoward sustainable environmental and business development.
4142
2024 Environmental, Social and Governance (ESG) Report
JSG strictly adheres to laws and regulations such as theEnvironmental Protection Law of the People's Republic ofChinaand theFire Protection Law of the People's Republic of China, as well as environmental laws relevant to thecountries or regions where it operates. With reference to international standards such as ISO 14001 environmentalmanagement system, the Company has established an Environment, Health, and Safety (EHS) managementsystem and an EHS management team, formulated the EHS Environmental Management Manual to define itsenvironmental management philosophy and policies, and established a sound environmental management systemto continuously reduce the impact of company operations on the environment.
Environmental Compliance Management
? Establish green concepts? Promote clean production? Facilitate high-tech industry development forgreen intelligent manufacturing? Achieve sustainable development ofenvironment and business
Environmental management philosophy
? Comply with environmental regulations? Fully participate in control? Prevent environmental pollution? Continuously improve environment
Environmental management policy
JSG practices clean production, implements green concepts, sets environmental management objectives basedon its own development characteristics, and tracks and inspects the achievement of the targets every year. TheCompany decomposes tasks to involve all employees in environmental control and energy-saving initiatives.This approach ensures the effective operation of the environmental management system and includes assessingsuppliers' environmental protection efforts to collaboratively enhance the environment and build a green, low-carbon industrial ecosystem.
Environmental Management
Objective
Index
2022Achievement
2023Achievement
2024AchievementRecycling utilization rate ofgeneral solid waste
≥80%82%86%85%Three-waste emission compliance
rate
100%100%100%100%Solid waste disposal compliance
rate
100%100%100%100%Identification of importantenvironmental factors andeffective control rate
100%100%100%100%Major environmental pollution
accident
0000Administrative punishment for
environmental protection
0000
2024 environmental management objectives and achievementsEnvironmental Management
Objective
Index
2022Achievement
2023Achievement
2024AchievementClean energy utilization rate≥60%≥60%≥60%≥60%Recovery rate of total recyclable
waste
≥80%80%82%81%
To manage environmental risks effectively, JSG has developed management systems such as theEmergencyPlan for Environmental Pollution Incidents. The Company advances environmental protection infrastructure,monitoring, and emergency management, and employs environmental impact assessments to identify, evaluate,and prevent environmental risks across all subsidiaries, supporting the Company's green and sustainabledevelopment.
The Company attaches importance to the compliance, standardization, and leadership of its environmentalmanagement system. While obtaining ISO 14001 Environmental Management System and ISO 50001 EnergyManagement System certifications, it continuously promotes the construction of a standardized environmentalmanagement system across the entire plant area. Additionally, three subsidiaries achieved ISO 14001 certification,and JSG has been rated as a unit with an A-level environmental protection credit rating by the Department ofEcology and Environment of Zhejiang Province for several consecutive years.
Key Performance
In 2024, JSG conducted internal environmental risk audits, identifying 29 minor issues , all of which wererectified, achieving a 100% correction rate.
4344
2024 Environmental, Social and Governance (ESG) Report
ISO 14001 Environmental Management System Certificate
ISO 50001 Energy Management System
Certificate
JSG is committed to its mission of "To become a leading equipment supplier of semiconductor materials,to facilitate high-tech industry development for green intelligent manufacturing", focuses on a sustainabledevelopment strategy driven by the dual engines of "advanced materials" and "advanced equipment", andcontinually enhances its collaborative industrial layout of "equipment + materials". By increasing investmentin technological innovation, JSG aims to improve the autonomy and controllability across the entire supplychain of semiconductor components and consumables. The Company strives to achieve digital and intelligentconnectivity among its equipment, offering customers with comprehensive intelligent factory solutions thatintegrate automation, digitalization, and AI big data, all within a green and low-carbon development modeldriven by clean energy.
Green Industry Development
JSG's core business lies upstream in the green energy industry chain. Leveraging its capability to supply corePV equipment across the entire industry chain - from silicon wafers and cells to modules - and its advantages inautomation and consumables, the Company continues to drive industry cost reduction, efficiency improvement,and technological upgrades through innovative products. JSG leads and deepens collaborations across theupstream and downstream industrial chains, promoting the co-construction of a green industrial ecosystem.
Leading PV Equipment Supplier with Technological and ScaleAdvantages
Monocrystallinesilicon ingot
Silicon waferCellModulesPoly-silicon
Silicongrowthequipment
CropperSquarerGrinderSlicer
Pre&Sep&Final cleaning
integrated machine
Silicon wafersorting and boxingequipment
Dryclean
PECVD(POLY)
EPD
Di?usion (anneal)ALD
Module equipment
4546
2024 Environmental, Social and Governance (ESG) Report
Note: The value was calculated based on theAnnouncement on the Release of 2022 Electricity Carbon Dioxide EmissionFactorsissued by the Ministry of Ecology and Environment and National Bureau of Statistics of the People's Republic of China(Announcement [2024] No. 33), theConstruction and Operation of PV Power Generation in 2021andConstruction and Operationof PV Power Generation in 2022published by the National Energy Administration, the annual average power generation per GWof installed PV capacity obtained according to theCumulative Solar Power Generation in 2022published by the National Bureauof Statistics, as well as the expandable PV installed capacity mentioned earlier.
As a global leader in the supply of full-automatic monocrystalline silicon growth furnaces, JSG offers products suchas full-automatic crystal growth equipment, crystal processing equipment, wafer processing equipment, and wafersorting and testing equipment. These products enhance efficiency and yield through highly integrated automation,establishing a comprehensive core equipment system for the entire silicon wafer manufacturing process andcontinuously leading technological iterations in the industry.
?Silicon wafer segment: Technological leadership driving industry transformation
Key achievements
At the beginning of 2024, the Company set a goal of pursuing progress while ensuring stability cleantechnology investment (i.e. R&D investment) in combination with the overall plan of R&D work for the year,which was successfully achieved by the end of the year. The full-automatic mono crystal puller, a coreprocess equipment in the PV industry chain produced by the Company, has cumulatively reduced
greenhouse gas emissions by 400 million tons of CO
equivalent annually.
Introduction to silicon wafer products and equipment
Crystal processingRing cropper, circulardiamond wire squarer,rounding and grindingintegrated machine,diamond wire slicer, etc.
Crystal growthFull-automatic monocrystal puller
Wafer processing and
inspectionPre&Sep&Final cleaningintegrated machine,silicon wafer sorting andboxing equipment, etc.
Key achievementsFully-automatic mono crystal puller and series products:
Recognized as a "Single Champion Product" in manufacturing by the Ministry of Industry and Information Technology; Listed as a national key new product by four ministries.Fully-automatic PV mono crystal puller:
Internationally leading in both technology and scale.
?Cell segment: Differentiated innovation driving efficiency breakthroughs
?Module and consumables segment: Intelligent whole-line solutions
The company has focused on advancing high-efficiency battery technologies and successfully developed a seriesof core equipment, including PECVD (Plasma-Enhanced Chemical Vapor Deposition), diffusion furnaces, annealingsystems, single-chamber multi-boat ALD (Atomic Layer Deposition) equipment, and edge passivation devices(EPD) for cell cutting. Notably, the tubular coating equipment compatible with both BC (Back Contact) and OPCon(Optimized Passivated Contact) technology routes, along with the EPD devices, have achieved differentiatedcompetitive edge in performance through innovative design and process optimization.
From the module perspective, the Company has developed a production line for module equipment that includesmultiple processes such as string welding machines, layout machines, automatic frame loading machines, andglue dispensing testers. Its innovative de-silvering module equipment significantly reduces silver consumption inthe module production process, greatly lowering production costs. Additionally, the continuous development ofthe PV industry has rapidly increased the demand for consumables. JSG innovatively develops high-quality quartzcrucibles by optimizing crucible dimensions, purity, and crystal pulling time to reduce consumable costs in siliconwafer production. The Company also leads tungsten wire diamond wire technology, breaking through carbon steelwire diameter limits to meet the cutting needs of large-size and thin silicon wafers.
In 2024, the battery cutting edge passivation EPDequipment developed by the Company received a bid-winning notification from a top 5 solar cell manufacturer,securing the first 10GW batch order. The Company hasdeveloped innovative EPD technology in collaboration withthe customer, and adopted an industry-first airflow methodto shorten airflow paths and increase exchange rates.The pure ALD mode effectively repairs cell cutting surfacedamage and extends the lifecycle of TOPcon products.
JSG's cell cutting edge passivation EPD equipment received 10GW batch orderCase
4748
2024 Environmental, Social and Governance (ESG) Report
JSG leverages cloud computing and big data applications to achieve automation and intelligence across its equipmentchain. By focusing on integrating the industrial digital brain of future factories with intelligent manufacturing bases,JSG offers clients comprehensive intelligent factory solutions based on differentiated competitive strategies. It alsocontinues to lead industry innovation by introducing highly intelligent products such as the ring cutter, Pre&Sep&Finalcleaning integrated machine, and silicon wafer sorting and boxing equipment. These innovations, through highlyintegrated automation, enhance efficiency and yield, reduce costs, and support clients' green, efficient, intelligent, andsustainable development. This, in turn, drives the global PV manufacturing industry's shift towards intelligence andsustainability, contributing to the realization of "carbon peaking and carbon neutrality" goals.
Provider of Comprehensive Green and Intelligent FactorySolutions
In June 2024, JSG participated in the 17th SNEC (2024) International Photovoltaic Power Generation andSmart Energy Conference & Exhibition, showcasing its intelligent factory solution for the entire PV industrychain". The Company offered clients new perspectives on green, efficient, and intelligent developmentthrough lean manufacturing, digitalization, and AI big data solutions. This initiative supports the PVindustry's transition from manufacturing to intelligent manufacturing, promotes digital transformation inPV manufacturing, and contributes to global energy transformation.
Showcasing intelligent factory solution for the entire industry chain at SNEC ExhibitionCase
Communication and negotiation with customers at the
exhibition siteThe Company presented at the SNEC Exhibition booth
JSG's intelligent solution
Equipment interconnectivity
achieves data uploading
Data visualization and process
transparency
Automated behavior and decisionmaking based on predictive
capabilities
Automated and informational
factory
Digital factoryIntelligent factory
DescriptionDiagnosisForecast
Integrated products: Achieve internal intelligent integration within equipment;Integrated factories: Enable intelligent integration between equipment and integration of productionprocesses.
From an innovation perspective, JSG collaborates with downstream strategic customers in areas such asproduct technology, process, automation, and intelligent manufacturing models:
Advantages of intelligent solution
Addressing Climate ChangeIn the face of global climate change challenges, JSG regards addressing climate change as a fundamentalresponsibility. The Company actively aligns with national "carbon peaking and carbon neutrality" strategies,practices green development concepts, and integrates climate change considerations into corporate strategies anddecision-making processes. Guided by standards such as the Guidelines No. 17 of the Shenzhen Stock Exchangefor the Self-regulation of Listed Companies - Sustainability Report (Trial) of Shenzhen Stock Exchange and theGuidelines No. 2 International Financial Reporting Sustainability Disclosure Standard – Climate-Related Disclosurespublished by International Sustainability Standards Board, JSG identifies and addresses climate-related risks andopportunities. The Company employs multiple measures to reduce greenhouse gas emissions, enhance climateresilience, and promote a green, low-carbon industrial transformation.?Strengthening climate governanceTo effectively address climate change, JSG has incorporated climate governance into its Environmental, Social,and Governance (ESG) framework. The Company has established an ESG governance structure that clearly definesthe responsibilities of various organizational levels in addressing climate change. This structure operates under amanagement framework of "Board oversight, Strategic and Investment Committee management, and ESG WorkingGroup execution," aiming to enhance the proactivity and sustainability of climate actions.
4950
2024 Environmental, Social and Governance (ESG) Report?Identifying risk and opportunity
In compliance with both domestic and international standards, JSG systematically reviews its environmentalperformance. Considering its business operations and industry characteristics, the Company classifies climate-related risks into transition risks, associated with the shift to a low-carbon economy, and physical risks, stemmingfrom climate change impacts. JSG has identified and analyzed potential significant risks and opportunities,enhancing its adaptability and resilience to climate change.Risk CategoryDescriptionResponse Measure
Physical
risk
Acute risk
Extreme weather such astyphoons, high temperatures,flooding, etc., with increasedfrequency and severity,may damage buildingsat production and officeoperation sites, affectingnormal production operations.
Develop emergency response plans to minimizelosses from natural disasters.Conduct regular infrastructure maintenance to
bolster resilience against extreme weather.
Extreme weather like typhoons,high temperatures, andflooding may affect employeecommuting safety, therebyimpacting normal productionoperations.
Focus on employee life, health, and safety,
provide protective gear for employees, and equippersonnel working in high temperatures withcooling devices.Implement extreme weather alerts and offer
training on health, safety, and climate changeawareness to enhance risk response capabilities.
Extreme weather may affectsupply chain stability anddisrupt normal production anddelivery.
Rely on existing circular pickup routes and real-
time monitoring systems to actively track weatherforecasts for supplier locations and areas alongroutes; develop emergency plans for businessdisruptions due to weather events like typhoons,and use AI algorithms to predict transportationrisks, dynamically adjust pickup routes andreduce risks of sudden supply interruptions.
Chronicrisk
Global warming, rising sealevels, and other climateanomalies pose challenges tolong-term and stable businessoperations.
Continuously monitor operational site risks,
conduct proper planning and risk managementfor new project site selection, construction, anddaily operations, considering chronic climatechange risks.
Risk CategoryDescriptionResponse Measure
Transitionrisks
Policy risk
The implementation ofregulations like the ShenzhenStock Exchange's "Guidelines",sustainable regulations inEurope, the US, and otherregions, as well as carbonfootprint requirements, hasraised the standards forinformation disclosure andcarbon management.
Pay attention to policies and regulations related
to climate change, formulate climate responsestrategies, and collect greenhouse gas emissiondata every year to effectively respond to policychanges.
Market risk
Customers are increasinglyinclined to choose productsfrom companies with strongESG records and are raisingrequirements for suppliers.
Seize opportunities in clean technology, actively
develop green, low-carbon products, andproactively meet customers' ESG requirementsfor suppliers and product supply.Address climate change as a key topic and
communicate with stakeholders throughsustainability reports, stakeholder surveys, etc.
Technologyrisk
Failure to identify andadopt green, low-carbontechnologies in a timelymanner may result in outdatedproduct carbon performance,potentially reducing productvalue or losing orders.
Improve equipment efficiency, enhance product
manufacturing efficiency, and continuouslybuild recognized environmental and energymanagement systems both domestically andinternationally.Promote green, low-carbon design and
application in products to enhance green R&Dcapabilities.
OpportunityType
Climate Change Opportunity
Description
Opportunity Response
Marketopportunity
The market demand for energyconservation and emissionreduction is rising, leading to anincrease in demand for low-carbonproducts.
Seize the clean technology opportunities, launch
various green products and provide customers withauto + digital + AI big data solutions, driving theglobal PV manufacturing industry's smart and greendevelopment to meet market demands.
Energymanagement
Reduce fossil energy consumption,increase the use and proportionof clean energy, and continuouslyoptimize the energy structure.
Expand the use of renewable energy such as PV,
introduce smart energy management systems toassist in the Company's energy usage structuretransformation.
5152
2024 Environmental, Social and Governance (ESG) Report
OpportunityType
Climate Change Opportunity
Description
Opportunity Response
Climate changeadaptation
Deploy plans in advance to addressclimate change, mitigating andavoiding financial losses caused byclimate risks.
Plan emergency response measures for naturaldisasters and climate change and conduct capacity-building activities to increase business operationstability and earn customer recognition and long-term partnerships.?Climate change indicators and targets
As a leading high-end equipment manufacturing enterprise in the international PV industry, JSG actively respondsto and promotes the achievement of national "carbon peaking and carbon neutrality" goals. The Company takeson the responsibility of advancing green development, conducting greenhouse gas (GHG) inventories based on
domestic and international accounting standards, and setting targets of carbon peak by 2030 and carbonneutrality by 2055 , with 2022 as the baseline year. These targets guide future measures to reduce GHG emissions.
Note: 1. It contained the GHG emission in JSG's operation and production in 2022, 2023 and 2024; 2. The value was calculatedbased on the "Notice on the Management of Greenhouse Gas Emission Reporting for the Power Generation Industry from2023 to 2025" issued by the Ministry of Ecology and Environment of the People's Republic of China (HBQHH [2023] No. 43),the "Guidelines for Greenhouse Gas Emission Accounting and Reporting for Electronic Equipment Manufacturing Enterprises(Trial)" and the "Guidelines for Accounting Methods and Reporting of Greenhouse Gas Emissions for Machinery and EquipmentManufacturing Enterprises (Trial)".
CategoryUnit202220232024Total greenhouse gas emissionstCO
146,478276,046308,561Greenhouse gas emission intensitytCO
/CNY10,000 revenue0.140.150.18
Greenhouse gas emissions
JSG is committed to promoting efficient resource utilization by regularly monitoring energy consumption,analyzing potential for energy and water savings, and implementing energy-saving and emission-reductioninitiatives. The Company strives to minimize pollutants' impact on air, water, soil, and other environments,effectively enhancing resource efficiency and protecting the ecological environment.
Efficient Resource Utilization
The energy consumed by the Company includes diesel, gasoline, and purchased electricity, with electricitybeing the primary energy source. To continually reduce energy consumption and improve energy efficiency, theCompany has established theEnergy and Resource Management Specification, set energy-saving targets andactively engaged in various energy-saving activities. Measures such as equipment replacement, process upgrades,and prioritizing clean energy adoption are implemented to achieve emission reduction goals, promote energystructure transformation, and foster harmonious development between the Company and the environment.
Energy Management
JSG's energy-saving and consumption-reduction action strategyEnergy saving in production: Prioritize energy-efficient and low-energy auxiliary equipment. In 2024, projects like"Plate Heat Exchanger Cooling" and "Cooling Water Dehumidification" were initiated to enhance energy efficiency.Energy saving in operation: Eliminate the diesel forklifts to reduce diesel usage and give priority to electricvehicles for business travel to reduce gasoline consumption.Energy structure optimization: Continuously increase the proportion of clean energy used by expanding powergeneration systems and implementing PV projects.
In 2024, Jingyu New Materials implemented thesmart energy efficiency enhancement projectsof "Plate Heat Exchanger Cooling" and "CoolingWater Dehumidification", establishing a low-carbon refrigeration model through dual-pathtransformation. From December to March eachyear, the 296kW plate heat exchanger systemreplaces the 772kW ice machine, improvingunit energy efficiency by approximately
2.6 times, achieving gradient energy
efficiency optimization. The "Cooling WaterDehumidification" project, active in April, May,October, and November, saves 200kW of coolingpower and 100kW of electric heating power.Upon project completion, annual electricitysavings of 1.76 million kWh are achieved,equivalent to 557 tons of standard coal, reducingCO
emissions by 1,024 tons.
Carrying out equipment energy-saving improvement project to help reduce emissions andconsumptionCase
Energy-saving improvement projects of "Plate
Heat Exchanger Cooling" and "Cooling Water
Dehumidification"
5354
2024 Environmental, Social and Governance (ESG) Report
CategoryUnit202220232024
Diesel consumptionLitre166,05634,71025,526Gasoline consumptionLitre31,08415,08020,625
Energy consumption
Building rooftop PV power station
CategoryUnit202220232024
Purchased electricityconsumption
Kilowatt-hour(kWh)
255,969,990484,010,108541,025,999Operating incomeCNY 10,0001,063,8311,798,3191,757,661
Purchased electricityconsumption intensity
kWh/CNY10,000revenue
240.61269.15307.81Floor area of all plants10,000 m
89.14128.88142.03Purchased electricityconsumption intensity
MWh/10,000 m
2,871.553,755.513,809.24
Electricity consumption
To efficiently promote energy-saving and emission-reduction, and optimize energy structure, the Companyhas fully utilized the existing rooftops and sheds of each factory area to promote rooftop PV power generationthrough measures such as building power generation systems and laying PV panels. Currently, rooftop distributedPV power stations have been established in three parks located in Zhejiang, Inner Mongolia, and other regionsto continuously improve energy efficiency and the proportion of clean energy, seize the opportunity of cleantechnology, and continue to explore and apply more green technologies.Key PerformanceAs of December 31, 2024, the Company had invested a total of CNY74.27 million in PV projects, with a total
available PV power generation of 16.76 million kWh.In 2024, the Company's PV power generation reached 14.82 million kWh, with the PV installation areaexceeding 116,000m
, saving 4,860 tons of standard coal, reducing CO
emissions by 8,623 tons, SO
emissions by about 385 tons, and NOx emissions by about 222 tons.Future plan: In 2025, the Company plans to invest an additional CNY15 million in PV projects and plans to
invest a total of CNY 40 million in the next three years for the construction of rooftop PV power generation
projects, with an expected increase in total available PV power generation of 18.16 million kWh.
JSG is committed to minimizing water resource waste. In subsidiaries with high water consumption , theCompany sets water usage and conservation targets. Measures such as introducing and improving watertreatment equipment, exploring water-saving processes and technologies, and optimizing equipmentefficiency are implemented to promote green production. The water resources used by the Company primarilycome from municipal tap water and treated recycled/reclaimed water, serving the needs of production,operation, and daily life.
PV LayoutWater Resource Usage
PV power generation of the Company (Unit: 10,000 kWh)Cumulative PV power generation laying area (Unit:
10,000 m
)
202220222023202320242024
1,038
1,482
11.6
CategoryUnit202220232024
Purchased municipal waterm
922,3233,028,7933,096,422Consumption intensity of water
resources
t/CNY10,000revenue
0.871.681.76
Water consumption
5556
2024 Environmental, Social and Governance (ESG) Report
In 2024, the subsidiary Jingrui Electronic began using a reclaimed water system, investing a total of CNY 330,000 forthe year. The ultrapure water station's waste water and some Class 100 clean water were connected to the reclaimedwater system, producing 300 tons of reclaimed water per day. With stable output, it is estimated to save CNY 404,800annually in costs, and save up to CNY 3 million wastewater index fees during stable operation periods.
Subsidiary Jingrui Electronic used reclaimed water system to promote water resource recyclingCase
Jingrui Electronic reclaimed water system
Currently, Jinhong Precision has commissioned a set of reclaimed water facilities, with a total investmentof CNY 980,000 and a daily processing capacity of 70 tons/day, saving an average of 2,000 tons of water permonth. The process is as follows:
Subsidiary Jinhong Precision launched water conservation project to reduce water resourceconsumptionCase
???
High-conductivity nickel plating lineCustom ultrafiltration + reverse osmosis filtration system (first-order two-stage) and a zero discharge concentration system,producing 4.8 tons/hour of fresh water. As the wastewater of thelow-conductivity nickel plating line can be reused after simpletreatment, the inflow to the concentration device is estimated atabout 5.25 tons.
???Oxidation lineDesigned a system consisting of "raw water collection tank --neutralization reactor -- multimedia filter -- reverse osmosisequipment", producing 5 tons/hour of fresh water in a first-ordertwo-stage integrated process.
???
Low nickel and air conditioning condensate waterThe main pollutants in condensate water are particulatesuspensions and metal ions, which after simple pretreatment canbe reused in the raw water tank of the ultrapure water station.
Water conservation project workflow ofsubsidiary Jinhong Precision
JSG is committed to strict compliance with relevant pollution discharge laws and regulations, continuallyimproving and refining the management of three wastes. The Company actively invests in and manages wastetreatment, with dedicated departments overseeing the handling of wastewater, waste gas, solid waste, andhazardous waste. Efforts are made to reduce emissions of waste gases, wastewater, and waste materials, whileusing environmentally friendly packaging to promote a circular economy and minimize environmental impact.
Three Wastes Management
The Company has formulatedCode of Waste Water Management, established a waste water reuse system to collectand treat various types of waste water. Measures such as equipment upgrades and secondary reuse of treatedwaste water are implemented to minimize discharge and reduce environmental pollution. The Company's wastewater primarily consists of domestic and industrial waste water. Domestic waste water originates from office andresidential areas, while industrial waste water mainly comes from the use of purified water and the preparation ofconcentrated water.
?Waste water management
Key PerformanceIn 2024, the total waste water discharged by the Company was 1,026,122 cubic meters, and the totalvolume of recycled waste water was 201,212 cubic meters.
?Waste gas treatmentThe Company's waste gas mainly include acidic organic gases and particulate matter from production processes,as well as vehicle exhaust during operations. The Company has developed the Code of Waste Gas Management andemployed measures like activated carbon adsorption and spray devices to effectively collect and treat production-related emissions. Additionally, the Company actively promotes green commuting by prioritizing the use ofelectric vehicles and has installed charging facilities within the plant area to reduce exhaust emissions. Theseefforts ensure that emissions during production and daily operations comply with national and local standards,preventing environmental pollution caused by non-compliant emissions.
Emission CategoryAmount (Total Approved) ConcentrationNitrogen oxides≤8.874t/a≤300mg/m
Sulfur dioxide≤1.896t/a≤200mg/m
2024 waste gas emission and management
5758
2024 Environmental, Social and Governance (ESG) Report
?Waste treatment
Adhering to the principles of reduction, resource utilization, and harmlessness, the Company has formulated theSolid Waste Management Systemand collaborated with qualified third parties to classify and dispose of wastematerials. Our management practices ensure that environmental monitoring and waste recycling statistics areconducted scientifically and reasonably, maintaining compliance with relevant safety standards to ensure bothcompliance and traceability. Additionally, the Company offers various training programs to promote the use ofrecycling bins and recyclable packaging. These initiatives aim to reduce excessive packaging waste generatedduring product packaging and transportation, thereby fostering the development of a circular economy andachieving meticulous management of waste materials.
Waste management
CategoryUnit202220232024Total recyclable wasteTon1,800 1,5002,062Total general solid wastesTon6001,100 2,915Total general solid waste recycledTon1,200140 920
Key PerformanceIn 2024, the legal and compliant disposal rate of hazardous waste by all subsidiaries of the Groupreached 100%, including 83 types of waste such as waste packaging materials, waste cutting fluid,sludge, and waste acid, totaling 1,966 tons.
Hazardous waste treatment work?ow
Emission CategoryAmount (Total Approved) Concentration
Particulate matter≤1.14t/a≤30mg/m
Dust≤1.240t/a≤5.0mg/m
Fluoride≤0.045t/a≤0.3mg/m
Hydrogen Chloride≤0.545t/a≤3.2mg/m
Non-Methane Total Hydrocarbons≤1.000t/a≤5.0mg/m
In January 2024, Ningxia Jingchuang organized hazardous chemical safety training, focusing on the MSDSand emergency measures of hazardous chemicals, with 162 employees participating in the training, with a100% pass rate in the assessment.
Ningxia Jingchuang conducted hazardous chemical (MSDS) training to enrich employees'professional knowledgeCase
Hazardous chemical training site
In September 2024, Jingrui Electronic's EHSDepartment organized training for employeeson solid waste classification, legal cases, currenttypes of solid waste in the Company, and transferprecautions. A total of 17 people participated in thetraining, with a 100% pass rate in the assessment.
Jingrui Electronics conducted solid waste training to enhance employees' solid wastecompliance awarenessCase
Solid waste training site
5960
2024 Environmental, Social and Governance (ESG) Report
JSG always integrates the concept of green operation throughout the entire chain of corporate development,driving technological innovation and management upgrades with the original intention of environmentalprotection. The Company enhances environmental awareness through systematic energy-saving initiatives,manages energy consumption of office air conditioning and lighting systems, implements green office measures,and leverages intelligent manufacturing solutions to establish a digital green logistics network and automatedgreen production lines. By integrating efficient transportation with low-carbon processes, it aims to reduce carbonemissions across all operations - from daily office activities to manufacturing. This comprehensive approachcontributes to building a green operational system and sets a replicable benchmark for low-carbon transformationin the industry.
Green Operation
JSG always adheres to the original intention of environmental protection, and adopts measures such as installingfresh air systems, waste sorting, and paperless office to improve the resource utilization rate of office environmentand operation process. The Company has planned a series of specialized training covering in-depth interpretationsof environmental protection policies and regulations, identification and management of environmental risks, andthe latest knowledge on environmental protection technologies and processes, to enhance the environmentalawareness and responsibility of all employees.
?Green office management
? Stagger air conditioning
usage during summer andset temperature controls
? Install charging stationsin the parks
? Conduct waste sorting,implement the "three reductionsand four separations" method,and periodically carry outenvironmental inspections
? Reduce printing devices,
centralizing to one device perfloor and promoting double-sided printing
? Install fresh air systems in all
areas to effectively ventilatework areas and improve theworking environment
Green operation measures of the Company
Charging stations of the CompanyEnergy-saving promotion banners
In 2024, Ningxia Jingchuang organized three focused annual environmental protection training sessions,with a total of 128 person-times completing the training. Employees' awareness of environmentalprotection was significantly enhanced, allowing them to conscientiously comply with environmentalregulations and actively participate in the Company's environmental protection efforts. Frontlineproduction staff mastered basic operations for hazardous waste collection and storage, effectivelyreducing environmental pollution during production processes; all departments increased their focus onenvironmental work, and environmental management systems were effectively implemented, significantlyimproving the Company's level of environmental management.
Ningxia Xinjingsheng conducted environmental protection training to enhance employees'environmental awarenessCase
Ningxia Xinjingsheng's environmental protection training site
6162
2024 Environmental, Social and Governance (ESG) Report
The Company adheres to the green circular development strategy of "carbon peaking and carbon neutrality",continuously optimizing and innovating the full-chain management of production and supply based on leanmanufacturing principles. It aims to transform "silo operations" into "continuous flow" by implementing precisematerial distribution, WMS intelligent warehouse management, intelligent loading, and route planning, therebyestablishing a fully traceable intelligent manufacturing model. This approach realizes efficient, agile, and lean-flexible digital factory management.
?Biodiversity protection
?Intelligent and green lean manufacturing
Biodiversity protection measures
With the global increase in attention to biodiversity, the Company endorses the "Kunming-Montreal GlobalBiodiversity Framework", strictly adheres to national laws and regulations such as the Opinions on FurtherStrengthening Biodiversity Conservation, the Soil Pollution Prevention and Control Law of the People's Republic ofChina, and the Groundwater Management Regulations. The Company continuously monitors the potential impactsof its operations and business activities on biodiversity, constructs ecological fishponds at operational sites,actively engages in afforestation activities, and strives to protect the surrounding ecological environment. Beforeestablishing manufacturing facilities, the Company conducts environmental assessments in accordance with lawsand regulations to ensure that subsidiaries are not located within ecological red lines and that there are no nearbynatural reserves. In 2024, the Company did not identify any significant adverse impacts on biodiversity.
Ecological pool of the Company
Implement tree planting and carry out green
environmental work
Develop ecological landscape belts, renovateecological fishponds, and use filtration
systems to improve water quality
Intelligent manufacturing model with full process traceability
QMS
| Milk Run60% of the products off the production line are shipped onthesame dayLoading for storage & unloading for outboundFinished product shipment |
Inventory days: 2.5 days
6364
2024 Environmental, Social and Governance (ESG) Report
The Company insists on green logistics. Inside the plant, circulating vehicles follow planned routes and timewindows to pick up goods. Real-time monitoring is implemented along delivery routes, achieving integrateddelivery and pickup, reducing waiting times and energy consumption within the plant, and improving spatialutilization of production areas.
The Company has fully completed the lean automation upgrade of production lines, and effectively implementeda series of lean improvements such as automatic vacuuming on seed crystal lines, RGV automatic circulationon crucible lines, automatic lifting of rotary plate valves, and automatic strapping and packing of compositeboxes, to rapidly enhance plant capacity. Additionally, the Company requires suppliers to stock according toSRM requirements and use standardized green recyclable packaging for boxing, effectively reducing solid wastegeneration in the park and building a new advantage in green intelligent manufacturing. Furthermore, theCompany has designed foolproof and ergonomic workstations to ensure work safety. Equipped with fixturesand inspection tools to ensure effective control of key points, the number of assembly staff is reduced by 35%,significantly lowering labor intensity, and further setting a new industry benchmark.
Advantages of lean and automated production in smart factories
Circulating pick-up route
Key Performance
The Company has established 7 circular pickup routes, improving overall transportation efficiency by over
40%, reducing transportation mileage by 40% to 70%, and achieving an annual reduction of 3,000tons in carbon emissions.By using standardized green recyclable packaging for boxing, the Company expects to complete full
truckload loading and unloading within 15 minutes, improving loading and unloading efficiency by over
50% and vehicle loading rate by over 30%.The plant's daily production capacity has increased by 20%, the total working hours per unit of mono
crystal puller have improved by 20%, and the solid waste output has decreased by 83%.
Circulating packaging and boxing
Lean automation upgrade of production line Automatic vacuuming on seed crystal line
Automatic strapping and packing of composite boxes
Through the interconnection of various businesssystems, the Company achieves end-to-end integrated fine management, enhancingthe quality and efficiency of manufacturingdevelopment.
Leveraging cloud computing and big data,the Company constructs an industrial digitalbrain. Through highly intelligent advancedmanufacturing and efficient organizationalmanagement, it achieves lean manufacturing andmanagement, creating a sustainable competitiveadvantage.
6566
2024 Environmental, Social and Governance (ESG) Report
Innovation-driven 67IP Protection 70Customer Services 74
Quality Management 71
Igniting Innovation andAdvancing Together
JSG focuses on technological R&D and quality leadership as its core strategy.The Company is committed to promoting the high-quality development of the PVand semiconductor industries through technological innovation and excellentmanagement. JSG strives to continuously create high-quality products andimprove its customer service system, contributing to the sustainable developmentof the entire industry chain and advancing it to a higher level.
6768
2024 Environmental, Social and Governance (ESG) Report
JSG has always placed research and development at the core of its high-quality development process. TheCompany adheres to a dual-driven model of technological breakthroughs and deep exploration of customer needs,continuously strengthening R&D investment to enhance its R&D strength and innovation capability. This approachensures the sustainability of the Company's core competitiveness, aiming to create greater value for customers.
JSG is dedicated to building a comprehensive R&D system, focusing on strategic R&D, product and technologyR&D, and process and technical support R&D. By thoroughly studying national industrial policies and industrydevelopment trends, and keeping abreast of the latest developments in the PV and semiconductor industries,the Company collects and analyzes customer demands, market dynamics, competitive landscapes, and newtechnological information to accurately define R&D objectives and roadmap planning. On this basis, JSG hasestablished core technology development platforms and product commercialization platforms, continuouslydeveloping new products and technologies that meet market demands and align with the Company's strategy.These efforts ensure the Company's leading position in the industry and provide high-quality capacity support tothe nation and the industry.
Innovation-driven
R&D Management
JSG continually optimizes its R&D organizational structure, operating national-level postdoctoral researchstations, national enterprise technology centers and other research platforms, to enhance the construction of itsresearch platform system. In 2024, the Company restructured its R&D center into 10 major equipment researchinstitutes, 2 advanced laboratories, 3 professional R&D departments, 1 technical application department, and 1Japan R&D center. Compared to 2023, 2 new equipment research institutions and 1 Semiconductor TechnologyApplication Department were added. Additionally, in 2024, the Company received approval for the Provincial KeyLaboratory of High-Performance Silicon Material Equipment, was honored as one of the Top 100 Enterprises inElectronic Information Competitiveness for the year, and 4 of its subsidiaries, Qiushi Chuangxin, Ningxia JingHuan,Jingyu New Materials and Ningxia Jingchuang were recognized as "National High-Tech Enterprises."
R&D Platform
Key Performance
In 2024, the Company invested CNY 1,119.19 million in R&D, accounting for 6.37% of operating revenue.The R&D team consisted of 1,588 personnel, representing 26% of the total workforce, including 46 PhDholders and 476 master's degree holders.
Scientific research platform construction system
Scientific research platform
construction system3 professional R&Ddepartments2 advancedlaboratories
1 Japanese R&dCenter10 equipmentresearch institutes
1 technicalapplicationdepartmentKey PerformanceIn 2024, the Company added 2 subsidiaries, Zhejiang Meijing New Materials Co., Ltd. and Zhejiang QiushiSemiconductor Equipment Co., Ltd., which were selected as the national-level specialized, refined,differential, and innovative "Little Giant" enterprises.As of December 31, 2024, 5 subsidiaries of JSG have been selected as national-level specialized, refined,differential, and innovative "Little Giant" enterprises.
JSG is committed to driving continuous breakthroughs in various application fields through technological R&D,ensuring stable and high-quality development. As a leading domestic high-tech enterprise in "advanced materialsand advanced equipment", the Company leverages years of in-depth understanding of technologies and processesin the PV and semiconductor fields. It continues to increase investment in technological R&D, achieving multiplescientific research breakthroughs and providing strong support for industry development.
Scientific Research Breakthrough
In May 2024, JingHuan Electronics' latest innovative achievement,a 1,000kg-class ultra-large-sized sapphire crystal, successfullycame out, once again breaking the world record for the researchand development of ultra-large-sized sapphires. This is anotherbreakthrough following the establishment of the world record fora 750kg-class crystal in 2020, and it also represents the confidenceand strength in the technology of ultra-large-sized sapphires andthe mass-production process.
JingHuan Electronic set new record with 1,000kg sapphire crystalCase
1,000kg-class ultra-large-sized
sapphire crystal
6970
2024 Environmental, Social and Governance (ESG) Report
In August 2024, JSG's R&D team successfully developedthe WGP12T thinning and polishing equipment, enablingstable processing of 12-inch, 30μm ultra-thin wafers.While ensuring wafer surface flatness and roughness,the Company effectively addressed challenges such asdeformation, cracks, and contamination during the thinningprocess, truly realizing the efficient and stable processingtechnology of 30μm ultra-thin wafers. This breakthroughsignifies JSG's important progress in semiconductorequipment manufacturing, providing strong support fortechnological advancement and independent control ofChina's semiconductor industry.
JSG achieved stable processing of ultra-thin wafers, providing strong support for theindependent control of China's semiconductor industryCase
New WGP12T thinning and polishing equipment
In 2024, JSG introduced several new equipment models, including the 8-inch double-chip silicon carbideepitaxial equipment, 8-inch silicon carbide measurement equipment, and 12-inch fully-automatic thinningand polishing equipment. These additions expanded JSG's semiconductor equipment portfolio, promotingthe industry's advancement towards high-end, intelligent, and environmentally friendly technologies.? Silicon carbide epitaxial furnaceThe Company developed 8-inch double-chip silicon carbideepitaxial equipment capable of processing two 8-inchwafers simultaneously in a single chamber, increasingunit capacity by 80%. It features the latest epitaxy dopingprocess package, fully automated loading module, and AIbig data analysis platform EAP interface, enabling large-scale epitaxy production based on the C2C model.? Silicon carbide measurement equipmentUtilizing Fourier transform infrared spectroscopy andgrazing incidence phase-shifting interferometry, JSGdeveloped SiC epitaxy optical measurement equipment andSiC wafer surface morphology measurement equipment fornon-contact measurement of SiC materials. The EM200A-ZJS equipment incorporates two self-developed algorithmsto calculate buffer and epitaxy layers, allowing users toadjust based on specific processes and wafer structures.The FM200A-ZJS equipment supports customized dataanalysis functions and user-defined sorting standards formeasured wafers.
JSG released multiple new equipment models, accelerating the green and intelligentdevelopment of semiconductor equipmentCase
8-inch double-chip silicon carbide epitaxial
equipment
SiC epitaxy optical measurement equipment
Scientific and Technological Ethics
JSG adheres to scientific and technological ethical norms. Throughout the R&D and business operations, ithas always been pursuing independent innovation. Based on intellectual property rights, the Company doesnot develop or use scientific and technological means that may cause harm to the natural environment, lifeand health, public safety, and ethical and moral principles. It is committed to promoting social progress andpositive development through research and development innovation. In the future development process, theCompany will still attach great importance to the norms of scientific and technological ethics, ensuring that everytechnological breakthrough meets the requirements of scientific and technological ethics and contributing to thestable and healthy development of society.
JSG adheres to an independent intellectual property strategy, placing significant emphasis on the managementand protection of intellectual property (IP). The Company has established an IP management system centeredaround policies such as theMeasures for the Protection of Intellectual Property RightsandPatent ManagementProcedure, continuously standardizing IP management practices to foster technological innovation and thedevelopment of proprietary IP.
IP Protection
IP protection management process
Key PerformanceAs of December 31, 2024, the Company has a total of 1,069 valid patents, including 256 inventionpatents (including 13 international patents). During the year, 323 new patents were authorized,comprising 105 new invention patents (including 6 international patents).
Patent layoutPatent retrievalPatent application
Patent early
warning
Patent activities
7172
2024 Environmental, Social and Governance (ESG) ReportThe Company places high importance on independent research and technological innovation, implementingtheMeasures for the Management of Patent Award Selectionand establishing an incentive mechanism for IPapplications. These initiatives focus on inventive creations and adhere to principles of objectivity, fairness, justice,and transparency in selecting and rewarding R&D personnel who contribute patents, effectively motivatingemployee innovation and enhancing patent quality. This approach perpetuates the Company's culture of valuingresearch and maintains a robust research environment with favorable R&D conditions.
JSG upholds the principle of quality supremacy, formulating and optimizing a series of systems, including thePlanning and Control Procedure for Product and Service Realization, Quality Objective Management Procedure,and Product Protection and Control Procedure, to construct a comprehensive quality management system. TheCompany employs intelligent and information-based methods to collect data, focusing on full-process quality riskcontrol to achieve zero-defect quality management.
JSG has established and continually refined its quality management system, integrating international qualitystandards into its product quality management. The Company applies the PDCA (Plan-Do-Check-Act) managementprinciple to enhance strategic planning, goal decomposition, process management, and personnel training.This comprehensive approach promotes continuous improvements in market share, customer satisfaction, andmanagement optimization.
JSG has established clear principles for full lifecycle quality management, implementing the APQP methodologyacross the entire process, including product concept, design and development, process development, production,and on-site validation. The Company systematically advances project quality planning and execution, continuouslyimproving risk management, proactive management, compliance monitoring, data management, and informationcollection and application to ensure comprehensive lifecycle quality control.
Four dimensions of patent award selection
Key PerformanceIn 2024, the Company awarded a patent award of CNY 2.04 million.
Key Performance
In 2024, the Company added 4 new quality system management documents, optimized and revised 26quality system management documents.
Key PerformanceIn 2024, the Company did not experience any quality or safety-related adverse events.
Quality Management
Quality Management System
Quality Management Process
Technicaladvancement
Marketcompetitiveness
Patent quality
Patentprotection
The Company safeguards the dual driversof demand and innovation through thereputation of its products and services,using quality as the foundation to establishan internationally leading position in theautonomous semiconductor equipment chain.
Quality strategy
Guided by quality costs and centered oncustomer satisfaction, JSG strives forexcellence with zero-defect management,aiming to build a reputable product line andachieve outstanding commercial reputation.
Quality policy
ISO 9001:2015 quality management system
certi?cate
7374
2024 Environmental, Social and Governance (ESG) Report
In October 2024, Huixiang E&H successfully hosted its first "Quality Month"event under the theme "Pursuing Zero Defects, Surviving on Quality,Developing through Quality". The initiative included a variety of specializedtraining activities, such as "Reviewing Past Quality Incidents", "QualityExperience Sharing", and "Quality Incident Warnings", helping employeesgain deeper insights into the importance of quality and enhancing theirquality awareness and skills. Additionally, a series of competitive events wereorganized, including quality contests, quality knowledge competitions, anddaily quizzes on quality system fundamentals. These efforts reinforced theCompany's "Quality-driven enterprise" strategy, strengthened the foundationof quality management, enhanced employees' quality consciousness, andpropelled the Company toward continuous improvement and innovation.
Subsidiary Huixiang E&H launched ?rst "Quality Month" event to strengthen quality managementCase
Quality Month activity site Quality Month award site
Key PerformanceIn 2024, the Company conducted a total of 20 quality training sessions, with a cumulative training time of25 hours.
Customer Service
JSG adheres to a customer-first service philosophy and regards customer satisfaction as the core standard formeasuring service effectiveness. The Company has established a series of systems likeCustomer ComplaintManagement Process, Customer Satisfaction Management Process, Customer Training Management Process
andProblem Solving and Customer Care Procedureto optimize the complete customer service processcomprehensively. These efforts provide high-quality service to customers, significantly enhancing their trust andloyalty, and laying a solid customer foundation for the Company's long-term development.Customer Communication and FeedbackJSG attaches importance to customer feedback and holds regular customer satisfaction surveys to ensure timelyawareness and implementation of customer suggestions or comments. It conducts quarterly satisfaction surveyplanning and monthly satisfaction research for project and spare parts customers, and regularly holds satisfactionweekly meetings to address customer issues, with relevant department heads analyzing causes, following up onprocesses, and implementing improvement measures to achieve an early detection, feedback, and closing loop forissues in all processes.
Product lifecycle quality management procedurePre-salesIn-productionPost-productionAfter-salesPre-production
Risk control
Quality Planning and Control ProcedureInternal Audit Management Procedure
Product Monitoring andMeasurement Control Procedure
Data Analysis and Evaluation
Process
Information Collection andApplication Management
ProcedureRisk and Opportunity Control ProcedureAssociated Production Management Specification
Quality Problem Handling ProcessQuality Cost Management Process
Pre-managementCompliance monitoringData managementInformation collection applicationMarket & customer demand research
Log of Problems (LOP)Process standard optimizationInternal audit (VDA6.3/6.5)
Data ANALYSIS (Plato, trend
chart)
Customer requirement
collectionDesign Failure Mode and Effects Analysis
(DFMEA)
SOC pre-management and control
Principle of "three inspections"and "three don'ts"
Management improvementEquipment benchmarkingProduction Part Approval Process (PPAP)
Supplier/customer associated productionBackend data monitoringManagement standardizationTechnical iterative optimizationProcess Failure Mode and Effects Analysis
(PFMEA)
7576
2024 Environmental, Social and Governance (ESG) ReportProduct or service complaint management process
Key PerformanceIn 2024, the customer satisfaction rate was 97%, with no customer complaints.
In November 2024, at the 7th China International PV and EnergyStorage Industry Conference, JSG was awarded the "Joint EffortAward" by its partner, TW Solar, winning high praise from thepartner.
JSG won the "Joint E?ort Award" from TW Solar, earning high praise from partners
Case
JSG won the "Joint Effort Award" from TW Solar >>
Customer Training
JSG values empowering customers, establishes training processes, and specifies the needs identification, trainingplan, implementation, and continuous improvement during customer training. It provides comprehensivetraining on equipment technical specifications, operation instructions, and common fault handling to ensure theachievement of the expected training outcomes.
●?
Customercomplaints areintegrated into theBPM system formanagement
●?
Cases of validatedmeasures areexpandedhorizontally anddocumented
●?
Validate post-implementationeffects using tests,variance analysis,pareto diagrams,histograms, etc.
●?
Develop permanentmeasures usingresponse tablessuch as the PDCAmethod, networkdiagrams, etc.
●?
When receiving complaintletters from customersor discovering safety andmajor quality incidents, itis required to report themto the Quality ManagementDepartment by e-mail ortelephone within 2 hours onworking days and 6 hours onnon-working days
●?
Quality and safety incidentsare also reported to theGroup Quality Committee
●?
Analyze the causes of qualityproblems by means of variousquality tools and developurgent measures
●?
Set up a team to analyze andimprove important problems/quality accidents according to8D method
●?
QA of the Quality Departmentsends the received questionsto the relevant departmentalstaff at the same time
●?
QA of the Quality Departmentcommunicates with therelevant sales person or after-sales service leader to confirmwhether the customer needsa response letter to deal withthe problem
Question presentation
Closure confirmation
Information transfer
Preventive measures
Cause analysis
Effect verificationMeasure formulation
PDCA customer training process
●?
Coordinate customer training contentbased on needs;
●?
Identify essential training needs based onequipment installation progress;
●?
Prepare the customer training plan.
●?
Organize the summary and review oftraining evaluations;
●?
Develop and implement improvementplans;
●?
Share accumulated knowledge andexperience.
●?
Conduct customer training according tothe plan;
●?
Timely adjust and resolve issuesencountered during the training process;
●?
Responsible for feedback and reportingon problem resolution progress.
●?
Issued training questionnaires to obtaincustomers' evaluations of the training,including evaluations of trainers'competence, course content, and trainingeffectiveness.
Plan (P)
Action (A)
Do (D)
Check (C)
7778
2024 Environmental, Social and Governance (ESG) Report
Supply Chain Security 79Coordinated Industrial Development 82
Striving for Win-winCooperation and Buildinga Promising Future
JSG always adheres to the values of "Achieving Partnerships and Co-CreatingBrilliance". By working hand-in-hand with various parties, JSG closely collaborateswith a broad range of supplier partners in technological innovation and culturalco-construction, maintains close cooperation and contact with universities andassociations among other entities, integrates exchanges, enhances organizationalresilience, and boosts the Company's market competitiveness. It expands therealms of industry cooperation, aiding the Company in achieving precise andsustainable development.
7980
2024 Environmental, Social and Governance (ESG) Report
Supply Chain SecurityJSG insists on "focusing on the deployment of the innovation chain along the industry and supply chains, continuouslyenhancing scientific and technological support capabilities". It has developed and refined a system of managementprocesses encompassing the entire lifecycle of suppliers, includingNew Supplier (Resource) Development ManagementProcedure, Supplier Management Process, Supplier Admission Management Process, Supplier Audit Process, SupplierPerformance Evaluation Process,andSupplier Exit Management Process. This system forms a management processcentered around "PDCA", creating a flexible and resilient supply chain management system to ensure the safety andstability of the domestic supply chain while actively responding to the strategic trend of going global.
To ensure effective control over ESG risks of suppliers, the Company continuously optimizes the supplier performanceevaluation process. It maintains a "Qualified Supplier List" and incorporates ESG factors in the supply chain assessmentsand supplier on-site audit criteria using theSupplier On-Site Inspection Scoring Formto evaluate suppliers andissue corrective recommendations, ensuring the stability of the supply chain and compliance with ESG requirements.Additionally, the Company emphasizes product traceability management, requiring suppliers to provide aCommitmentto Non-Use of Banned Substances, which includes terms from theRequirements of Concentration Limits for CertainRestricted Substances in Electrical and Electronic Products, to ensure that the products or services provided do notcontain substances harmful to the environment and human health. For suppliers that excel in assessments, the Companyimplements rewards such as increasing purchase volumes and upgrades to qualified suppliers; for those performing poorlyover three months and showing ineffective improvements, exit management measures are also employed.
?Sustainable supply chain management
Supplier management process
Supply chainstrategicmanagement
Supplier qualitymanagement
Supplier riskassessment
Purchase ordermanagement
SupplierperformancemanagementFlexible supply chain procurement strategy
Demand
GeneralizationStandardization
Concentrated
Multi-purchase unifiedPurchasingconcentrated
Group purchasing
Managementconcentrated
Integrate supply-side
operationsStreamline the number
of suppliers
Supply sourceconcentrated
Purchasing + ManagementSupplier
?Transparent procurement management
Key PerformanceIn 2024, the Company had a total of 1,386 suppliers, of which 100% of the suppliers signed agreements thatincluded environmental and labor requirements; 94% of the suppliers conducted social impact assessments;and 94% of the suppliers conducted environmental impact assessments.
Supplier performance evaluation indicatorsQualification, safety andenvironmental protection
certificatesWork SafetyHazardouschemicalsmanagement
Performance
Environmental
protectionSuppliermanagement
Operatingconditions andfinancial risksGreen and safewarehousing andlogisticsQualitymanagementsystem
Technical level andproduct design and
innovationRaw material andproduct traceabilitymanagementProduct design
The Company advocates for transparent procurement, treating integrityas the red line for supply chain construction. In accordance with anti-bribery laws and regulations from China and other countries and regions,such as the U.S.Foreign Corrupt Practices Actand the UK'sAnti-Bribery Act, it has established and signed the supplier code of conductofPartners Integrity Cooperation Agreementwith suppliers, clearlydefining responsibilities for integrity in procurement. The Companyprovides suppliers with an open, accessible SRM system for tenderingand quoting. It offers reporting channels for partners, with dedicatedpersonnel responsible for investigation and handling, and sets breachmanagement measures for partners with integrity issues. Additionally,the Company regularly conducts integrity training, updates the qualifiedsupplier list timely, and strictly enforces ethical business managementrequirements, truly practicing transparent procurement.
Measures for handling violations insupplier transparent procurement
Pay liquidated
damages
ImmediatelyterminatecooperationReport thesupplier'sillegal acts tothe competentauthorities
Key PerformanceIn 2024, 100% of the Company's suppliers signed the supplier code of conduct.
8182
2024 Environmental, Social and Governance (ESG) Report
Institute of Crystal Materials,
Shandong University
Jointly built a "Crystal Material Equipment Research Center"
?Empowering the supply chain cooperation circle
The Company focuses on supply chain empowerment management. For the professional capabilities ofprocurement staff, the Company conducts targeted training for procurement line employees from theperspectives of demand side, internal, and supplier angles, integrating modern supply chain managementpain points. For supplier capability development, the Company actively conducts internal review meetingson supplier performance, holds annual supplier conferences, and collaborates with various parties to shareexperiences and perspectives, jointly innovating and launching new products and technologies that meetmarket demands. The Company builds an outstanding and sustainable supply chain system through acombination of internal procurement empowerment and external cooperative exchanges.Key PerformanceIn 2024, the proportion of the Company's purchasers who have passed sustainable procurement trainingreached100%.
JSG held its annual Supplier Innovation Conference in 2024, where it outlined future product layouts and plans,and shared experiences and provided empowerment support on improving supplier quality management,supply chain capability transformation, and development. Additionally, in various sub-forum sessions of theconference, senior company leaders engaged in one-on-one discussions with supplier representatives on supplychain innovation strategies and the construction of efficient delivery systems. The successful completion of thisconference has profound implications for strengthening the value of the supply chain, building a more efficientand mutually beneficial supply chain cooperation circle, and paving the way for a future of superior quality,better benefits, and higher efficiency in the supply chain network innovation and development.
JSG's 2024 Supplier Innovation Conference successfully concluded, discussing sustainableinnovation ecosystemCase
Summary Speech by Chairman
Dr. Cao Jianwei
2024 Supplier Conference siteJSG's senior leaders communicatewith suppliers
JSG, as a leading enterprise in the industry, always practices the social responsibilities of a leading company,gathering collective efforts to lead industry development and demonstrate corporate responsibility. TheCompany maintains good cooperation and communication with the government, universities, and upstream anddownstream of the industrial chain, fostering high-quality technical talents in the industry, promoting industrialchain standardization and technological innovation. Together with various industry parties, it empowers globalenergy transformation through lean intelligent manufacturing and open cooperation, writing a new chapter ofhigh-quality development in the "Chinese solution" global journey.
Coordinated Industrial Development
JSG firmly believes that talent cultivation is one of the key factors driving industry development. It attaches greatimportance to talent cultivation, tirelessly explores new models of industry-academia cooperation, links academicresources from universities with its own technical experience and capabilities, and maintains close contact andactive cooperation with universities. The Company has established a postdoctoral station and collaborates withuniversities on joint talent development projects. This not only helps the Company achieve technological upgradesand improve talent echelon construction but also trains professionals for the industry, promoting high-qualityindustry development.
University-Industry Cooperation
School of MechanicalEngineering, ZhejiangUniversity
?Established "Innovation Research Center of Mechanical and ElectricalEquipment"?Carried out the "Joint Training Program of Full-time Professional DegreeMaster's Degree"?Completed the scientific research project of "Development of 12-inchCzochralski Hard-axis Mono Crystal Silicon Growth Furnace"School of Management,Zhejiang University
Support Zhejiang University's EMBA mutual talent cultivation
Cooperative academyCooperative project
8384
2024 Environmental, Social and Governance (ESG) Report
In November 2024, JSG, in collaboration with the Zhejiang University EMBA Finance Association and ProfessorHan from the School of Management of Zhejiang University, launched a "Zhejiang University EMBA" mutual talentcultivation event. This initiative is an important component of the Zhejiang University EMBA program, aimedat mutual visits, research, and learning through diverse, in-depth, and comprehensive training. The Companyleader conducted a session on "Lean Management", explaining the core concepts and practical methods oflean management in depth and with clarity. Furthermore, the Company detailed JSG's development history,core technologies, and product applications. Through vivid explanations and rich displays, participants deeplyand intuitively understood the cutting-edge technologies of the semiconductor industry, further fostering andpromoting the technical capabilities of industry skilled talent.
Supported Zhejiang University's EMBA mutual talent cultivation, exploring high-qualityindustry talent development
Case
Zhejiang University's mutual talent cultivation program site
Based on advanced technology and extensive industry experience, JSG consistently maintains strong cooperation withgovernment agencies, industries, and non-profit organizations, and continually participates in setting and researchingnational, industry, and group standards. It fully leverages its exemplary role in the PV and semiconductor industry topromote the standardization of lean manufacturing and industry development, driving high-quality development of theindustry's technological innovation capability.
Standard Setting
Key Performance
By the end of 2024, the Company had led or participated in the formulation of 4 new national, industry,and group standards, accumulating a total of 23 standards.
StandardStandard No.Standard Type
Terminology for Integrated Circuit (IC) Manufacturing
Equipment
GB/T 40577-2021NationalHigh Purity Alumina for Sapphire Mono CrystalGB/T 34213-2023National
Monocrystalline Sapphire BarGB/T 31092-2022NationalCzochralski mono crystal puller for PVSJ/T 11854-2022IndustryPositive-pressure Float Zone Crystal Growth FurnaceSJ/T 11853-2022Industry
TDR Series mono crystal pullerT/ZZB 0044-2021GroupMulticrystalline Silicon Casting FurnaceT/ZZB 0061-2016GroupChemical Vapor Deposition (CVD) Epitaxial Equipment forPreparing Silicon Carbide Semiconductor Materials
T/ZJATA 0017-2023GroupQuartz Crucible for Growth of Photovoltaic
Monocrystalline Silicon
T/ZS 0596—2024GroupSemiconductor Industry Nitrogen Oxide Emission
Requirements
T/CIECCPA 007—2024GroupHigh Purity Quartz Sand for Semiconductor Quartz
Crucible Production
T/QGCML 4167—2024GroupHigh Purity Quartz Crucible for Semiconductor Silicon
Mono Crystal Production
T/ICMTIA CM0038—2024Group
Standards jointly prepared by the Company (partial)
As the global energy system rapidly transitions to low carbon, JSG, a leader in technology and scale within thedomestic PV industry, is deepening its internal circulation system to tap into the potential of the local market.At the same time, it integrates advantageous resources to actively respond to the trend of developing newgrowth poles with a global layout. This strategy forms a new economic ecosystem of synergistic development ofboth internal and external circulations, establishing a new benchmark for high-quality overseas expansion andcontributing to the sustainable and high-quality development of the global PV and semiconductor fields.
Industry Development
8586
2024 Environmental, Social and Governance (ESG) Report
Focused on the R&D and manufacturing of high-end equipment in the solar energy field, JingshengPhotonics successfully exported three of its latest devices in July 2024: PECVD, LPCVD, and tubelow-pressure phosphorus diffusion furnaces to overseas customers. It continuously expands intointernational markets, provides global customers with PV full-industry chain intelligent factorysolutions with high-quality products and efficient services, injecting new vitality into the developmentof global clean energy.
Jingsheng Photonics' products went global, embarking on a new journey for global cleanenergy developmentCase
Group photo of Jingsheng Photonics' cell equipment shipment
JSG leverages its strengths to actively participate in major international exchange activities such as alliances,forums, and summits, maintaining proactive communication and cooperation with companies within theindustry and enhancing linkage with associations. In 2024, the Company participated in SEMICON China, SEMICONJapan, SEMICON Europe, SNEC International Photovoltaic Exhibition, China International PV and Energy StorageIndustry Conference, CSEAC, International Conference on Silicon Carbide and Related Materials (ICSCRM) andother domestic and international exchanges. It continuously shared cutting-edge technological achievementsand experiences, and joined forces with top domestic and international industry resources to contribute to thesustainable, low-carbon development of the global industry.
Communication at Home and Abroad
In March 2024, the Company showcased several new products at SEMICON China 2024 in Shanghai andheld a new product launch event themed "Innovative Chips, Intelligent Manufacturing, Leading the Way".Not only did it display the Company's cutting-edge technology and innovation achievements, but it alsoserved as an important window for linking and exploring global semiconductor industry developmentopportunities, exchanging ideas with industry experts from around the world and creating morepossibilities for the localization of the semiconductor industry.
JSG participated SEMICON China in Shanghai, actively exploring domestic and internationalcooperation to aid industry developmentCase
Exhibition site of the Company at SEMICON China in Shanghai
?Domestic participation
8788
2024 Environmental, Social and Governance (ESG) Report
In October 2024, the International Conference onSilicon Carbide and Related Materials (ICSCRM2024) was held in Raleigh, North Carolina, USA.Jingrui Electronic (SuperSiC) debuted, introducingits independently developed 8-inch silicon carbidesubstrates and the latest R&D achievements duringthe product presentation session. This showcasedtheir R&D strength and technological progress incrystal growth defect and stress control, laying thefoundation for expanding international marketsand the global application of their products.
Jingrui Electronic showcased at ICSCRM 2024, strengthening exchange and cooperationwith domestic and international peers
Case
Presentation site of 8-inch silicon carbide substrate
product
In November 2024, the SEMICON Europa opened grandly in Munich, Germany. Jingrui Electronic (SuperSiC)participated with 6-8 inch SiC substrate wafers and 8-inch crystal ingots. As a significant player andcontributor to the global third-generation semiconductor industry chain, its presence at the SEMICONEuropa not only showcased its technological R&D and innovation capabilities but also expressed itsdetermination and confidence to discuss cost-reduction and efficiency-enhancement strategies with globalupstream and downstream partners.
Jingrui Electronic participated in SEMICON Europa in Munich, Germany, discussing thefuture of power semiconductor materials with global industry colleagues
Case
SEMICON Europa
In December 2024, SEMICON Japan, a semiconductor industry equipment exhibition, was held in Tokyo,Japan. The Company presented integrated circuit equipment for 8-12 inch large silicon wafers, as wellas innovative achievements in sapphire materials, silicon carbide materials and equipment, diamondmaterials, and semiconductor components to semiconductor equipment suppliers, manufacturers,and professionals from around the world. Among the exhibits, the upgraded horizontal silicon carbideepitaxial equipment not only featured new overall disassembly components but also offered customizedconsumable batch cleaning services, achieving cost reduction and efficiency enhancement in siliconcarbide epitaxial growth, thus boosting high-quality wafer production and continuously empoweringindustry innovation development.
Participated in SEMICON Japan 2024, promoting domestic semiconductor equipment andmaterials to go globalCase
Exhibition site of the Company at SEMICON Japan 2024 in Tokyo, Japan
?International exchange
8990
2024 Environmental, Social and Governance (ESG) Report
Employee Rights and Bene?ts 91Employee Development 97
Employee care 110Occupational health and safety 113
United in Strength andPeople-Centric
Talent is the core driving force for sustainable development. JSG consistently practicesthe value of "Struggle orientation and partner accomplishment", puts talent strategyat the forefront of corporate development, and improves the training system andlong-term incentive mechanism by building a multi-dimensional growth platform andcareer development channel. Additionally, the Company develops comprehensiveequity protection mechanisms and occupational health and safety management,implements diverse welfare policies, genuinely enhances employee sense ofbelonging, cares for the physical and mental health of employees, and achieves asymbiosis of employee value and corporate development.
9192
2024 Environmental, Social and Governance (ESG) Report
Key Performance
As of December 31, 2024, the Company had a total of 6,111 employees, with a 100% labor contractsigning rate and 6.67% core employee turnover rate
Note
; there were no incidents of forced labor, child labor,or other violation events involving employee rights.
Employee Rights and Benefits
Equal Employment
JSG respects and protects the rights of every employee, always considering the selection, cultivation, and retentionof talent as the foundation for propelling substantial corporate development and as a critical topic for sustainabledevelopment. The Company strictly adheres to the United Nations Global Compact, Universal Declaration ofHuman Rights, Declaration on Fundamental Principles and Rights at Work by the International Labour Organization,and fully implements the laws and regulations such as the Labor Law of the People's Republic of China, the LaborContract Law of the People's Republic of China, and the Law of the People's Republic of China on the Protectionof Women's Rights and Interests, as well as national employment policies. This efficiently manages and developshuman resources, enhances employee satisfaction and capabilities, and promotes robust corporate development.
JSG implements an equal, non-discriminatory employment policy, and provides detailed explanations of its legalcompliance in prohibiting child labor, resisting forced labor, and protecting democratic rights, actively fosteringdemocratic and harmonious labor relations. The Company takes a zero-tolerance approach to any form ofdiscrimination and unfair competition. The labor management system developed by the Company covers not onlythe entire Company but also suppliers and contractors, aiming to maintain a healthy order in the labor market.
The Company values talent development and hasestablished a talent development management strategy.For campus recruiting, social recruiting, online
submissions and other external channels, the Company
strives to ensure that job information is transparent andthe recruitment process is fair and equitable, avoidingany form of discrimination. Additionally, the Companyencourages internal referrals and the healthy internalmobility of outstanding talents, clearly defining theresponsibilities, requirements, and compensationbenefits of various positions. It also posts internal hiringnotices to all employees through the intranet, establishesa talent referral mechanism andImplementationStandard of Internal Referral Bonus for Recruitmentof Internally Recommended Positions, and sets up the"Bo Le Award" and bonuses, to stimulate employees'enthusiasm for referring talents for nearly 65 positionsacross 17 business lines, thereby broadly attractingtalents of diverse backgrounds and professional fields toempower the Company and supporting the creation oflong-term sustainable commercial and social value.
Internal hiring poster
"Bo Le Award" and internal referral poster
Key Performance
In 2024, the Company has 116 employeesthrough internal referrals, and 51employees won the "Bo Le Award".
Employee gender structure
84.03%
15.97%
Male 5,135 peopleFemale 976 people
Staff position structure
64.03%
25.99%
6.05%
1.90%
2.03%
Financial personnel116 peopleSales personnel124 peopleProduction personnel3,913 people
R&D personnel1,588 peopleAdministrative personnel370 people
Education degree of research personnel
29.97%
2.90%
23.43%
43.70%
PhD 46 peopleMaster 476 peopleBachelor 694 peopleDiplomacy and below372 people
Age structure of research personnel
29.41%
7.18%
63.41%
31-40, 467 peopleAged 30 and below1,007 peopleAged above 40114 people
Note
: Core employees refer to those with a job level of 7 and above at JSG.
9394
2024 Environmental, Social and Governance (ESG) Report
Diversity and Inclusion
JSG fully recognizes, accepts, and values the differences and uniqueness between individuals, understanding theimportance of a diverse and inclusive workplace culture in attracting excellent talent. The Company insists onequal pay for equal work, protects women's rights, and resolutely opposes discrimination and harassment basedon race, culture, religion, age, disability status, or gender. The Company provides ample welfare and care for femaleemployees, with facilities such as nursing rooms, and also closely monitors the development of disabled personsamong other groups, offering suitable, equal job and promotion opportunities, allowing them to fully utilize theirtalents and achieve self-worth.
Key Performance
Nursing room of Qiushi Semiconductor
Note 1
: Management positions include employees at level 5 and above within JSG;
Note 2
: Senior executives include positions such as Director, Deputy Director, General Manager, Vice General Manager, President andVice President.
In 2024, the Company:
had 274 employees from minority ethnic groups and 7 employees with disabilities;had 173 newly hired female employees, bringing the total number of female employees to 976. Among them,59 are in management positions
Note 1, and 17 are senior executives
Note 2.
In March 2024, the Company hosted a series of colorful festival activities themed "Vibrant Spring - Be Your MostBeautiful Self", including DIY workshops, coffee-making classes, and women's lectures, providing all femaleemployees with exquisite desserts and gifts. This demonstrated the Company's care for women, deepening theirsense of belonging and identity, and creating an equal, harmonious, and female-friendly corporate atmosphere.
Caring for female employees, celebrating women's dayCase
Coffee making teaching experience
? Co?ee making:
The Company invited professional instructors to lead female employees in experiencing latte art, teachingthe skills of hand-grinding coffee, allowing employees to enjoy the fun of coffee making.
?DIY experience:
DIY experience site
The Company organized DIY activities for female employees, including fan and handbag crafting, whereeveryone shared laughter and joy, spending a warm and meaningful holiday together.
9596
2024 Environmental, Social and Governance (ESG) Report
Case?Female health lecture:
Female health lecture
The Company invited professional teachers toimpart health knowledge and skills, encouragingfemale employees to cultivate good living habitsand self-protection awareness. Additionally, theCompany disseminated information on workplacediscrimination and harassment, DEI (Diversity,Equality, and Inclusion), and related systemsfor inclusive management among employees,enhancing women's self-protection awareness andsafeguarding their physical and mental health.
?Workers' CongressThe Company always adheres to the principles of"equality, democracy, openness, and consultation",regularly convenes the Workers' Congress to listento and understand employees' needs, and jointlydiscusses labor management-related matters, to fostera more harmonious and united corporate culture, andenhance the Company's cohesion and creativity. In2024, discussions were held regarding the annual tradeunion fee income and expenditure status, and normsfor the use of union fees.Deliberative materials of 2024 Workers' Congress
The Company always prioritizes employee feedback, and has established an employee communication platformwith employee sharing service center as the core, facilitating an upward feedback mechanism through variouscommunication channels such as regular symposiums, soliciting opinions, and an employee mailbox. It has setup a formal employee grievance handling mechanism and process, allowing employees to provide feedbackanonymously or openly on issues such as employment, discrimination, welfare protection, and working conditions.The responsible personnel listen to, respond to feedback and suggestions, and keep the personal information ofthe responders confidential, responding to and resolving employee issues promptly, collaboratively, and efficiently,and regularly publicizing the results of the issues handled, thereby safeguarding the legitimate rights and interestsof employees.
?Employee feedback mechanism
Employee feedback and communication channel
JSG's employee service center structure
Employee Service Center
Employee affairsTalent service
Administrativeservice
IT serviceFinancial service
? Employee satisfaction survey? Employee mailbox: 0575-82333726? Complaint mailbox: syhrssc@jsjd.cc
? Symposium? Solicitation of comments? Employee mailbox? Windows of Employee Service Center
Online Offline
Windows of Employee Service Center andinformation bulletin board
Online feedback of service window
ShangyuHangzhouHohhot
9798
2024 Environmental, Social and Governance (ESG) ReportKey Performance
In 2024, the Company received 166 feedback through online and offline employee communicationchannels, with a feedback handling rate of 100%; there were no incidents of leakage of employeeinformation or feedback/complaint content.Furthermore, the Company conducts an annual employee satisfaction survey to identify common issues andcontinuously improve and empower management. In October 2024, based on previous feedback on administration,human resources, cafeteria, etc., the Company further refined the satisfaction survey questionnaire, and addedtopics such as information security, performance assessment, employee development, and work environment,to genuinely research employees' views and suggestions on Company operations and their own development,thoroughly analyze employee opinions, propose and implement corrective measures.Key PerformanceIn 2024, the Company conducted the2024 JSG Employee Questionnaire Survey, covering 100%of employees, with a satisfaction score of 4.54 out of 5; The survey identified 15 suggestions forimprovement in administration, environmental safety, information, human resources, etc., with 14measures proposed and implemented, achieving a correction rate of 93%.
JSG places talent development strategy at the core of the enterprise, viewing human resources as the key strategicasset for sustainable development. The Company has established a systematic talent cultivation mechanism andcareer growth paths, supported by a scientific and rational compensation incentive system, and relies on the"competition-based training, combining training with practice" model to forge PV and semiconductor equipmenttalent with innovative and practical capabilities. This solidifies the foundation for talent cultivation, builds the"Crystal Craftsman" pyramid, ensuring that "a strong base leads to a high peak," and injects a continuous stream oftalent into the sustainable development of the PV and semiconductor industry.
Employee Development
Compensation IncentivesJSG strictly adheres to the wage management laws of each operational location, continuously enhancescompensation levels, optimizes the incentive system, and guides and encourages employees to create more workresults, achieving mutual wins for the Company and employees.
The Company has legally established a competitive, scientific, and rational compensation system, committingnot to differentiate starting pay and rewards based on employee gender, religion, political, marital status, etc.It integrates a variable compensation mechanism that allocates salaries based on employee performance andcontribution, to better attract, develop, retain, and motivate high-performing employees, igniting creativity andenhancing the company's overall competitiveness.
The Company continually improves its performance management mechanism, forming a system that evaluateswork performance, with regular performance assessments and feedback processes. Performance managementserves as a tool to break down and achieve business goals, with performance indicators set according to therequirements of each business unit and role. Additionally, assessment results are linked to quarterly bonuses,excellent performance allowances, promotion evaluations, and other incentives, thus encouraging employees toimprove work efficiency and create more excellent work results.
?Compensation performance system
Employee compensation composition
Fixed salaryVariable salary
Standard job salary
Duty allowance
Stock incentiveSpecial patent bonusMerit bonusOvertime pay
Key measures of performance appraisal personnel management
Determine annual performance indicators and target breakdown semi-annuallyPerformance assessment details are agreed upon with core department personneland regularly determined by management, with full communication and signedconfirmation by all employeesHRBP collects performance result feedback and handles appeals according to theassessment frequency of each business departmentRegular performance discussions are conducted between performance evaluatorsand employeesAccording to the appraisal frequency of each business department, HRBP tracksand implements continuous performance improvements, and forms monthlyperformance improvement analysis report and quarterly performance analysisreport to continuously improve the Company's performance appraisal mechanism
99100
2024 Environmental, Social and Governance (ESG) Report
The Company has established an incentive mechanism that includes promotion and salary increases, stockoptions, and bonus incentives, actively providing employees with reasonable and material returns, therebymotivating and retaining key talent. In response to the Company's strategic development needs, since 2015, theCompany has implemented three phases of stock option plans and one phase of an employee stock ownershipplan, benefiting over a thousand participants, effectively allow employees to share the Company's developmentachievements and promoting mutual progress between employees and the Company.
?Incentive and commendation mechanism
Bonus incentive: Performance bonus, year-end bonus, special bonus (for R&Dpositions), patent bonus, excellence award, and assistance fund.
Stock incentive: Core talent stock incentive plans.
Promotion and salary increase: Annual salary increase; twice-a-year promotionopportunities.
Employee incentive mechanism
JSG held the 2024 Annual Award Ceremony themed "Striving for success and forging ahead". Awards werepresented to teams and individuals from the group and its subsidiaries who made exceptional contributionsin 2024. These included the Patent Gold Award, Patent Excellence Award, Technology Innovation Award,Technological Progress Award, and Management Progress Award. A total of over CNY 5 million in prizemoney was distributed, aiming to express gratitude for the hard work of outstanding employees, set amodel for all employees, and further stimulate their enthusiasm and work potential.
Held 2024 Annual Award Ceremony to commend outstanding award-winning employees
Case
JSG's 2024 Annual Award Ceremony siteCapacity DevelopmentTalent is the core driving force for JSG's stable advancement and key to achieving strategic goals and promotinginnovative development. JSG has established a comprehensive talent development system that covers allemployees, focusing on core capabilities such as leadership, expertise, and general skills. Utilizing the platformof JSG Academy, the system precisely matches the needs of different categories and levels of employees andconducts diverse training activities. Combining online and offline methods, it comprehensively supports employeegrowth, creating a solid talent formation for the Company's long-term development.Key PerformanceIn 2024, the Company invested CNY 1.63 million in training, achieving a 100% coverage rate, and anaverage duration of 22 hours per employee.
The Company organizes the selection and commendation of outstanding employees, carries out the annualaward and commendation conference, and recommends outstanding employees to the election of regional modelworkers, so that the positive work performance and professionalism of employees are fully affirmed by society as awhole, and employees are helped to obtain a sufficient sense of professional satisfaction and achievement.
101102
2024 Environmental, Social and Governance (ESG) Report?Jingsheng Academy
Jingsheng Academy is subordinate to JSG Group's HR Center and is an important part of JSG's talent developmentplatform. The Company has established theCode of Management for JSG Academy, clarified related responsibilitiesand specific steps for educational training, continuously developed and enriched training resources, and created acorporate university-type of continuous vocational training and career pathways for employees. It adopts methodslike integrated internal and external training, competition-based training, simulation-based training, lecture-basedlearning, examination-driven learning, and integrated training and practice, supplementing and deepening someof the weak links in the employee knowledge system, and enhancing the capabilities and skill levels of staff acrossvarious positions.
JSG's training system platform
Organization chart of Jingsheng Academy
Talent Development Committee
Human Resources CenterPresident of Jingsheng Academy
Academic deanTraining specialistInternal training teamExternal training institution
Key PerformanceIn 2024, JSG Academy conducted 45 training sessions, with an average duration of 8.6 hours per person.
Internal training certificationTheme training camp
Counseling
External channel
Training system platform
Videocourse
Courseware
Lecturerteam
Lecturer
CulturalpromotionOnline course
Coursework/project practiceCoursework sharingOfficial account of Jingsheng
AcademyNew employee trainingThematic training
?Management trainee program
JSG organizes the Management Trainee Program annually guided by theCode of Management Trainee Camp andContinuous Training. The Program selects new graduates from campus recruitment as management trainees,focusing on professional orientation and capability enhancement, offering a two-year management trainingperiod. Trainees are required to complete at least two professional training camp courses during their tenureand are comprehensively developed through internships, job rotations, and final presentations to cultivateprofessional skills, communication abilities, teamwork, and innovation. The objective is to transform them intohigh-quality talents capable of independently handling job responsibilities, thereby achieving the corporate goal of"Empowering employees, accomplishing the Company" and sustainable development.JSG conducted 2024 new employee orientation activitiesCase
In July 2024, under the theme "Converging everyonetogether, advancing with momentum", JSG held a week-long orientation for the 2024 cohort of new employees,including an orientation conference, managementtrainee training, and research center orientation, withover 200 new graduates participating. Leaders fromvarious departments conducted sessions on Industry andProducts, Grassroots Perspective, and Role Transition forall new employees, accelerating the induction into JSG'scorporate culture and enhancing the newcomers' sense ofbelonging and loyalty to the Company.Orientation group photo of 2024 fresh graduates
The president of JSG Academy taught over 50 managementtrainees courses such asProcess Management, Identificationof the 7 Types of Waste, Methods and Tools for RootCause Analysis,andEffective Communication, instillingthe corporate ethos of "rigorous struggle". The Companyinvited former management trainees to share their careerexperiences and signed project initiation documents with thenew trainees, marking the start of their professional careers.
2024 management trainee training themed "Emerging talents brings a promising future"
Group photo of 2024 management trainees
The Company detailed the training paths, organizationalstructure, management principles, project managementprocesses, patent fundamentals, and professionalsolutions required for positions at the R&D Center, helpingnew employees grasp the basic knowledge relevant totheir positions and laying a solid theoretical foundationfor their integration into new roles.
R&D Center orientation training themed "Forging ahead with dream oriented"
Orientation training site of R&D Center
103104
2024 Environmental, Social and Governance (ESG) Report
?Leadership trainingThe Company advocates for continuous learning among managers, offers training matched to all levels for manyyears, constantly strengthens leadership and management skills, and continuously enhances their sense of missiontowards team management, thus better equipping them to identify, retain, and lead talents, helping all managersto continuously broaden their horizons, break boundaries, and improve their comprehensive business capabilitiesand strategic thinking to better shoulder greater responsibilities.
The Company is committed to creating a high-quality mentor team, fully utilizing the mentorship potential of high-tech talents through one-on-one guidance, thus facilitating the rapid growth of young employees. In July 2024,a pairing ceremony themed "Core Craftsmanship, Bright Future" was held for new employees to better integratethem into teams and enhance their job skills.
Paring ceremony site
JSG leadership training system and course setting
Role recognition and ability enhancement
of team leadersQuality and capability enhancementtraining of team leadersTime management and efficient execution
Team buildingHigh-efficiency executive power
……
How to become a coaching leader
How to improve team cohesionRoland Berger Skill Model
……
Current managers' leadership trainingNew managers' leadership training
Key Performance
? Current managers' leadership training:
Since 2019, the Company has continuously conducted leadership training for current managers for6 years.In 2024, 4 sessions were held, covering 237 management personnel, totaling 10 hours.? New managers' leadership training:
Since 2019, the Company has continuously conducted leadership training for new managers for6 years. In2024, 3 sessions were held, covering 59 management personnel, totaling 9 hours.
Organized series of leadership trainings to assist new managers with role transitionCase
In March 2024, the Company provided leadership trainingto 14 new managers, which included topics like becominga coach-style leader, enhancing team cohesion, andthe Roland Berger Skill Model. By integrating internalcases, group discussions, and sand table simulations,the Company imparted its management and leadershipphilosophies, assisting new managers in transitioning fromindividual contributors to managers.New leader training site/teaching materials
Conducted quality and capability enhancement training for team leaders, strengtheningtheir management skillsCase
In August 2024, Ningxia JingHuan specially invited theParty Secretary of the School of Mechanical Engineeringat Ningxia University to conduct a quality and capabilityenhancement training for over 60 team leaders andsection chiefs. The training included basic managementknowledge, case studies, and group discussions forinteractive learning, enhancing the team leaders' detailedmanagement capabilities, solidifying the foundationfor cultivating "gold medal" excellent team leaders, andenhancing their fundamental, exemplary, and leading rolesin the Company's development, continuously driving newprogress and achievements in the Company's operations.Team leader training site
105106
2024 Environmental, Social and Governance (ESG) Report
?Professional and academic advancementThe Company values continuous education and personal growth of employees, and sets provisions in the trainingmanagement system for supporting academic and professional certification attainment. In 2024, in collaborationwith the China Certification Center, China Association for Quality Inspection, and Shangyu District VocationalJunior College Social Training and Examination Center, the Company organized key personnel from R&D,equipment, and safety departments to participate in various professional continuing education courses. A total ofCNY 74,240 was invested in these courses, with 122 individuals earning professional certificates and a total of 454employees holding professional titles.
SNTraining time
Business
line
Training content
Trainingorganization
Trainee
1January 2024R&D
Basic knowledge trainingof vacuum gauge &technical exchange
MKS
Hangzhou Jingsheng - R&D,Process, After-sales, Assembly,Quality, Procurement, SPE, relevantpersonnel of various projects2March 2024Equipment
Knowledge of qualitymanagement & quality
inspection
CAQIQuality related personnel3April 2024Equipment
High-altitude worktraining
Sheng'An Academy
Personnel involved in high-
altitude work4May 2024
JingruiQuality
Internal auditorqualification training
ShengwenTechnology
Quality related personnel5June 2024Equipment
High-altitude worktraining
Sheng'An Academy
Personnel involved in high-
altitude work6June 2024Equipment
Safety training for
production andoperation personnel
Street OrganizationWorkshop safety officers7June 2024EquipmentFirst aid training
Red Cross inShangyu District,Shaoxing
Volunteers8June 2024
JingHuanSecurity
Safety managementawareness and capabilityenhancement training
Safety expertsof NingxiaAutonomous Region
Key personnel, departmentheads, and safety managementpersonnel of Ningxia JingHuan9August 2024Equipment
Low-voltage electrician
training
Social Trainingand ExaminationCenter of ShangyuVocationalSecondary School
Personnel involved in live
operations
2024 external professional education promotion training
SNTraining time
Business
line
Training content
Trainingorganization
Trainee
September2024
Equipment
High-altitude worktraining
Sheng'An Academy
Personnel involved in high-
altitude work11October 2024
JingHuanSystem
Audit capabilityenhancement trainingof quality, safety, andenvironmental system
China SystemCertification Center
Internal auditors of Ningxia
JingHuan
November2024
Equipment
High-altitude worktraining
Sheng'An Academy
Personnel involved in high-
altitude work
December2024
Equipment
Hazardous chemicalsoperation certificatetraining
Sheng'An Academy
Personnel handling hazardous
chemicals
Organized employees to obtain professional certi?cates, supporting career development forspecialized positionsCase
In July 2024, the subsidiary company Ningxia Jingchuang provided exam fees support and organizedprofessional training for employees who need certifications for special positions (such as electricians,forklift operators, etc.). A total of 11 employees obtained electrician and forklift certificates, with a totaltraining cost of CNY8,800.
Forklift licenseSpecial operation certificate of electrician
107108
2024 Environmental, Social and Governance (ESG) Report
Organized external professional certi?cate training to enhance audit capabilities of quality,safety, and environmental system
Case
In October 2024, Ningxia JingHuan entrusted the China System Certification Centerto organize training for all internal auditors to improve their quality, safety, andenvironmental system audit capabilities. This training covered the improvement ofquality, safety, and environmental system audit capacity, and 11 internal auditorsreceived internal auditor certificates, effectively improving the professional capabilitiesof the internal audit team.
Internal auditor certificate>>
Development Path
JSG has established a scientific talent development system, set up a full-cycle professional growth mechanismadhering to a performance-oriented principle, and formed a working mechanism and process of evaluatingperformance as the standard and providing regular performance evaluation and feedback to employees, providingall employees with performance evaluation and promotion opportunities twice a year. The Company offers three-sequence mode, allowing employees to develop towards technical experts and business talents through differentsequence, achieving a synergy between individual career goals and corporate strategic objectives, continuouslyenhancing organizational talent density and core competitiveness.
Additionally, the Company implements a differentiated cultivation strategy for the R&D team, establishes a dual-pathcareer development model for professional engineers primarily based on multiple choices, supplemented by projecttraining, competitions, and quality development measures to ensure targeted planning, enabling R&D talents to growalongside the Company and fostering a healthy ecosystem of talent growth and strategic organizational development.
Development path map of JSG's three-sequence talents
R-sequence R&D class
Project management talents
Technical experts
P-sequence production class
Technical talents
M-sequence managementfunctional class
Management talents
Business talents
Two-path development path of JSG's R&D personnel
Senior EngineerIntermediate engineer
Project leader
EngineerAssistant Engineer
Deputy director
Chief engineerDirectorTechnical pathManagement path
Seniorfellowsystem
ProjecttrainingQualityexpansion
PorterCup
Lu BanCupProjectcompetition
"Passing down the spirit of Craftsmanship from generation to generation" - JSG held theseventh "Lu Ban Cup" Skills CompetitionCase
In December 2024, JSG held the seventh "Lu Ban Cup" Skills Competition themed "Taking flight and embarking on a grandjourney". The competition required four teams, composed of mechanical engineers from the R&D Center and processengineers, measurement engineers, CNC engineers, and technicians from the manufacturing workshop, to designand produce high-precision, functional crafts within five days. The event aimed to train participants in design skills andmanufacturing techniques through competition, enhancing their awareness of process standardization and teamwork.Ultimately, the work "JingHong Takes Flight" stood out for its precision craftsmanship and beautiful design, winningthe competition. This work fully demonstrated the excellent abilities in mechanical processing, assembly, welding,and surface treatment, while also strengthening the project collaboration skills of the teams, embodying the"Craftsman Spirit" always advocated by JSG.
Staff participating in the "Lu Ban Cup" studied carefully
Staff participating in the "Lu Ban Cup" studied carefullyAll participants of "Lu Ban Cup" competition
109110
2024 Environmental, Social and Governance (ESG) Report
JSG's 19th "Porter Cup" concluded, ensuring the development of innovative, high-quality talent
Case
The "Porter Cup" is a longstanding and significant event at the JSG R&D Center. In October 2024, the three-day event concluded, marking its nineteenth edition. Themed "Forging ahead, leading innovation", theCompetition brought together over 40 mechanical and process engineers from the R&D Center. Through the"Porter Cup" competition, the Company helped employees quickly master project management knowledgeand grow into outstanding project leaders, while also strengthening the comprehensiveness of the R&Dteam, improving team collaboration, and thereby enhancing the overall R&D and operational efficiency ofthe Company.
19th "Porter Cup" Competition site
All participants of the 19th "Porter Cup" Competition
Pursuing dreams and keeping ?ghting, JSG hosted the 2024 New Youth Endurance ChallengeCase
JSG has been holding the Youth Endurance Challenge forten consecutive years. In September 2024, the Companyconducted the "Pursuing Dreams - JSG 2024 New YouthEndurance Challenge", with top executives, heads ofR&D, and over 200 new R&D staff completing a 30kmexpansion challenge together. All participants reachedthe finish line after more than six hours, successfullycompleting the challenge. The three teams with theshortest completion times were awarded honorarytrophies, displaying a spirit of striving for excellence andcompetition.
New Youth March Challenge
JSG has fully considered the needs of employees and set up an influential welfare plan to provide welfare benefitsfor all employees, including but not limited to: social insurance, welfare holidays, holiday benefits, subsidies, andemployee activities. The Company advocates a healthy lifestyle, encouraging employees to maintain balanceddiets, moderate exercise, and regular sleep patterns. It organizes sports competitions and other activities to meetemployees' material and spiritual needs for work and life, creating a happy and harmonious work atmosphere.
Employee Care
Key Performance
In 2024, the Company achieved a 100% coverage rate for social insurance, a 100% rate for laborcontract signings. Employees have the option to join the union upon employment, with a union coveragerate of 96%.
111112
2024 Environmental, Social and Governance (ESG) ReportJSG's employee welfare system
Welfare typeContentBene?cial group
Basic welfare
? Five social insurances and one
housing fund
? All members? Meal supplements provided in sta?
canteens? Periodic physical examination? Dormitory available? Shuttle bus available? Supplementary commercialinsurance
? Frequent business travelers
Varioussubsidies
? Transportation subsidy
? All members? Travelling subsidy? High-temperature subsidy
Holidays
? Annual leave? All employees? Welfare leave? All employees? Various statutory holidays
? All employees, and all female employees onWomen's Day
Welfare typeContentBene?cial group
TradeUnionwelfare
? Employee wedding gift
? All Trade Union members? Employee childbirth gift? Employee hospitalized visit? Natural disaster visit? Funeral expenses of activeemployees? Trade Union holiday bene?ts
Other
? Employee purchasing
? All members? Cafe bar? Gym
Employee cafe barEmployee gymStaff badminton match
Staff badminton matchStaff canteenStaff dormitory of JingHong PrecisionSports Center
Staff badminton matchpromotional posterEmployee purchasingpromotional poster
Employee gym
113114
2024 Environmental, Social and Governance (ESG) Report
Occupational Health and SafetyJSG strictly follows theSafety Production Law of the People's Republic of Chinaand is committed to providing a safe andhealthy work environment for its employees. The Company has legally established and continually improves an occupationalhealth and safety management system, sets safety management goals, and tracks the achievement of these goals. Itconstantly strengthens supervision and management of safety production, identifies and controls occupational healthand safety risks, regularly reviews and updates emergency response plans for incidents, and has obtained the ISO 45001Occupational Health and Safety Management System certification, effectively ensuring the health and safety of its employees.Key Performance
In 2024, the Company invested a total of CNY 13.85 million in safety production.2024 safety management objectives and achievements
Safety Management ObjectiveIndexAchievementIdentification and effective control rate of major hazard sources100%100%Major production safety accidents/personal injury accidents00
Rectification rate of hidden safety hazards100%100%Complete rate of safety facilities and equipment100%100%Special equipment inspection qualification rate/personnel
certificate holding rate
100%100%Incidence of occupational diseases00
ISO 45001 Occupational Health and SafetyManagement system certi?cation
Safety Management OrganizationJSG consistently adheres to the philosophy of safety production. Under the EHS management system, JSGhas established a Joint Safety Production Committee and a Safety Execution Team, implemented top-downoccupational health management, meticulously planned safety management and audit work, and incorporatedsafety management objectives into the entire safety production process.Safety management organizational structure
中级工程师中级工程师中级工程师Board of DirectorsChairman
Joint SafetyProductionCommittee
Safety ExecutionTeam
Implement theprinciple of "safety first,prevention foremost,and comprehensivemanagement", enforce allrelevant laws, regulations,rules, and standards,study important issueson safety production,and report safety work tosuperior authorities andlocal safety committeesin a timely manner;
Implementcomprehensivemanagement of safetywork of companiesin the joint area, andbe responsible forcoordinating, guidingand supervising safetyproduction work;
Review and approvethe safety productionpolicies, objectives,management plans,regulations, safetymeasures, and plans ofthe affiliated companiesand supervises theirimplementation.
?Responsibilities of joint safety production committee
115116
2024 Environmental, Social and Governance (ESG) Report
Safety Emergency Response and Awareness TrainingJSG vigorously promotes the construction of a safety culture, formulates and strictly implements emergencyresponse plans and annual safety training programs. The Company regularly organizes employees to participatein various types of emergency drills and training, supplemented by diverse assessment methods such as Q&A,tests, practical operations, and certifications. This approach enhances all employees' awareness of productionsafety, strengthens their self-rescue and emergency skills in dealing with environmental incidents, minimizesaccident hazards, reduces the impact of unforeseen events, and enhances employees' practical safety productioncapabilities, creating a safe enterprise.
Key PerformanceIn 2024, the Company conducted over 340 safety training sessions, including approximately 116 specialemergency drills, with a total of about 10,645 participants, completing 100% of the planned annualtraining according to schedule.
Conducted the Safe Production Month activity to enhance all-employee awareness of safetyproduction
Conducted three-level safety training to fortify the safety frontline for new employees
Case
Case
In June 2024, JSG and its subsidiaries implemented multiple measures to closely follow the theme of Safe ProductionMonth, which is "Everyone cares about safety and everyone can respond to emergencies", to effectively grasp all thework, implement the safety issues, and to organize and carry out a series of activities for safe production month. Allsubsidiaries have carried out fire evacuation of all employees, special drills for natural gas leakage in canteens, etc. InJune, a total of 35 emergency drills were organized, with a total of 1,578 participants.
In 2024, JSG and its subsidiaries strictly implemented thepre-job safety access mechanism for new employees,and carried out 24-hour three-level safety training andeducation for new employees and transferred personnel.The company-level training covers the company-level,department-level, and team-level trainings, and adoptsthe "theory + practice + assessment" model to ensurethat employees can only take up their posts after 100%mastering safety norms, effectively improving thesafety literacy of all employees and consolidating thefoundation of corporate safety production.
?Diligently implement national guidelines, policies, laws, and regulations on safety production and theCompany's safety management regulations;? Implement the work requirements conveyed by the Joint Safety Production Committee, and improve the
supervision and management of safety, environmental protection, fire safety, special equipment, occupationalhealth, and other safety supervision work in each regional company;
? Participate in formulating and revising various regulations on safety production and supervise their execution;
? Assist the Company leaders in organizing safety production meetings, regularly organize department heads formajor safety inspections, organize accident investigations, and implement the principle of "no leniency";
? Be responsible for organizing the Company's safety production publicity, education, and job safety skills
training, supervising the implementation of the three-level safety education for employees;
? Be responsible for organizing the compilation and improvement of emergency plans for production safety
accidents, environmental and hazardous waste accidents, and organizing emergency plan drills;
? Organize the Joint Safety Production Committee to hold a safety special meeting semi-annually, the SafetyExecution Team to hold a safety special meeting quarterly, and each area to organize a safety special meetingmonthly, regularly collaborating with various departments for on-site safety production inspections.
?Responsibilities of safety execution team
Three-level safety training.
Series activities for safe production month
117118
2024 Environmental, Social and Governance (ESG) Report
Enhancing ?re?ghting practical skills to strengthen safety for all employeesCase
To further solidify employees' fire safety literacy, the Company conducted comprehensive fire trainingdrills. Through a "theoretical instruction + scenario simulation" dual-track approach, they enhanced thelevel of emergency response. Practical exercises included escaping from fire, operating fire extinguishers,and providing first aid to the injured. The training also covered fire case studies, causes of fires, evacuationsign recognition, and escape route planning. All participating employees passed the practical assessment,effectively mastering the abilities to "raise an alarm, evacuate, extinguish fires, and self-rescue," providingstrong security for the Company's safety production. A total of 124 emergency drills were organized, with atotal of 4,459 participants.
Fire safety drill training
Building emergency medical skills to protect the health and safety of all employeesCase
From March to June 2024, JSG and its subsidiaries jointly conducted special training on first aid skills tocomprehensively enhance employees' emergency response capabilities, adding practical assurance to theCompany's safety measures. In March, Jingyu New Materials organized full staff training on cardiopulmonaryresuscitation (CPR), focusing on the process for handling sudden cardiac arrests. Concurrently, QiushiSemiconductor invited emergency responders from the Linping District Red Cross to give on-site lessonson using first aid kits and trauma bandaging, disseminating CPR skills, with 64 individuals passing theassessment and obtaining first aid certificates. In June, JSG specially invited experts from the Zhejiang RedCross to provide training, with 30 people earning first aid certificates, achieving a 100% pass rate.
CPR training
Paramedics teach on site of Zhejiang Red Cross Society and Linping District Red Cross
119120
2024 Environmental, Social and Governance (ESG) ReportOccupational Health Management
JSG prioritizes employee health and safety, strictly adhering to theLaw of the People's Republic of China on Work SafetyandtheLaw of the People's Republic of China on Prevention and Control of Occupational Disease. The Company has establishedand continually improves various occupational health management systems, such as theOccupational Hazard Preventionand Control System, Occupational Hazard Notification System, Occupational Hazard Reporting System, andOccupationalHealth Operation Standardsfor specific posts. Through graded management of safety and health, JSG continuouslyidentifies, controls, and prevents occupational health and safety risks, prioritizing process optimization for positions with highlabor intensity, potential periodic fatigue, and occupational hazards to reduce health and safety risks for employees.
Occupational health management measures
? Employees are informed about occupational hazards and their effects, protective
measures, and emergency procedures through the posting of occupationaldisease hazard notification cards at affected workstations and the placement ofhazard information and warning signs.Occupational hazardnotification
? Identify and monitor occupational disease hazard factors consistently, establisha list of high-risk positions for occupational diseases, and continually improveroutine monitoring and management? Purchase and maintain safety, health, and environmentally friendly equipmentand facilities, including special equipment inspections, to continuously conducthazard protection maintenance and repairsOccupational hazardprevention and controlmanagement
? Depending on the hazard factors of different positions, provide labor protection
supplies that meet local occupational health and safety protection requirements,including safety helmets, noise-reducing earplugs, specialized masks, safetyshoes, protective goggles, and cut-resistant gloves.Provision ofprotective gear andsafety equipment
? Standardize the work injury accident investigation and handling processes,
immediately transport the injured to medical facilities and establish an accidentinvestigation team to investigate and formulate corrective and preventivemeasures, continuously monitoring the implementation of these measures.Work injury accidenthandling
? Ensure full-cycle coverage of pre-employment, during employment, and post-
employment medical examinations for employees in positions with occupationalcontraindications
? Establish and maintain employee occupational health surveillance records? Organize periodical health examinations for all current employeesEmployee healthcheck-up
? The Company develops an annual safety training plan, which includes occupational
health training on topics such as noise and sound protection, proper use andwearing of on-site labor protection equipment, dust hazards, and protectivemeasures and requirements for dust control facilities
Occupational health
and safety training
The Company places high importance on employee occupational health and safety, strictly complies with nationalregulations and standards, and fully implements noise protection and on-site labor protection usage requirements. Noiseprotection involves regularly equipping employees with standard-compliant earplugs and other protective gear, ensuringcorrect wear and use. Additionally, to address dust hazards, the Company has installed dust removal facilities, such as localexhaust systems and dust collection devices, and maintains them regularly to ensure their normal operation. In dust-relatedwork areas, employees are required to wear dust masks, protective goggles, and other labor protection supplies, effectivelyreducing the risk of dust exposure. This ensures that the work environment meets occupational health standards andgenuinely protects the health and safety of employees.
Organized occupational health training to improve employees' protection abilityCase
In November 2024, JingHuan Electronic organized an occupational health site training, focusing on occupationalhealth regulations, correct use of labor protection supplies, emergency response measures, and typical accidentcases. A total of 18 employees participated the training, with a 100% pass rate in the assessment.
Occupational health training site
Key PerformanceIn 2024, a total of 117 person-times participated in occupational health-related training, with a 100%pass rate in the assessment.
121122
2024 Environmental, Social and Governance (ESG) Report
Public Welfare 123Rural revitalization 125
Staying True to OriginalAspiration, Feeding Backthe Society with GratitudeJSG is always grateful to the society, and actively organizes public welfareactivities to repay the society through various practical actions. The Companyfocuses on education, sports, and healthcare among other sectors, conducting avariety of charitable activities to continuously contribute its strength and supportthe vibrant development of society. JSG employees actively participate in blooddonation, make donations to elementary schools and universities to supportthe development of talents across various age groups, and assist in agriculturalsupport to facilitate the smooth implementation of the rural revitalization.
123124
2024 Environmental, Social and Governance (ESG) Report
Public WelfareJSG is keenly aware of the symbiotic relationship between corporation and society and always actively practices socialresponsibility with gratitude. By sponsoring sports events, donating money to schools, and organizing blood donations, etc.JSG not only effectively feeds back to society but also highlights its commitment to corporate social responsibility and theconcept of citizenship. These efforts make positive contributions to the construction of a more harmonious and caring socialenvironment, and contribute JSG's power to the promotion of social sharing and sustainable development.JSG fully supports the development of education
The Company establishedthe "JSG Education RewardFund", donating CNY 100,000to Binjiang ElementarySchool in Shangyu District,Shaoxing City, to support thedevelopment of the school'seducational and sportsprograms.
The Company donatedCNY 100,000 to the BowenElementary School tocultivate more outstandingstudents, and promoteeducational equity andsocial development.
The Company participatedin the donation to ZhejiangUniversity EducationFoundation, totaling CNY7,000,000, to promote thecultivation of talents inuniversities and help thecultivation of national high-tech talents.
Donation to BinjiangElementary School
Donation to BowenElementary School
Donation to ZhejiangUniversity EducationFoundation
January 2024December 2024December 2024
JSG sponsored the Marathon activity
Case
Case
In April 2024, JSG sponsored and participated inthe 2024 Shaoxing ? Shangyu Half Marathon andthe eighth Shaoxing ? Shangyu Cao'e River HalfMarathon, along with the third Shaoxing ? ShangyuMarathon for Thousands of PhDs and Young Talents.The Company continued its sponsorship for thesecond consecutive year with a contribution of CNY300,000, demonstrating its commitment to thedevelopment of local sports and showcasing itscorporate social responsibility.Marathon activity site sponsored by JSG
Marathon activity site sponsored by JSG
JSG organized employee's blood donation event
Case
In October 2024, the Company organized a blood donation event, with a total of 200 employees activelyparticipating in the blood donation. Over the years, the Company has organized several blood donationevents, with employees conveying a spirit of love and charity to society, contributing to the continuation oflife, and helping build a more harmonious and caring social environment.
Employee's blood donation event
Key PerformanceIn 2024, the Company's total donations amounted to CNY 7.5 million.
125126
2024 Environmental, Social and Governance (ESG) Report
JSG continuously purchased grapes from Hongxing Village to support rural revitalization
JSG held the sixth Lamb Roast Festival
Case
Case
JSG supported Tonghe Village of Jinkouhe District to consolidate poverty alleviation achievementsCase
In September 2024, JSG signed a "Village-Enterprise Pairing" donation agreement with the Red Cross of ShangyuDistrict, Shaoxing, and Tonghe Village in Jinhe Town, Jinkouhe District. The Company donated the first installmentof CNY 20,000 to support the area's efforts in consolidating poverty alleviation outcomes and promoting ruralrevitalization. This contribution showcases the Company's commitment to corporate social responsibility, helping tobuild a harmonious society and drive rural revitalization. Moving forward, JSG plans to explore more support modelstailored to the sustainable development of Tonghe Village using its resource advantages.
JSG actively fulfills its social responsibilities by continuously purchasing grapes from the grape plantationin Hongxing Village, Pujiang County, Jinhua City, Zhejiang Province, as employee benefits, thus aidinglocal rural revitalization efforts. In 2024, the Company renewed its grape purchase agreement withHongxing Village, acquiring a significant quantity of high-quality grapes for distribution to employees. JSGwill continue to explore additional methods to support rural revitalization, actively contributing to themodernization of agriculture and rural areas and achieving mutual development with the community.
In December 2024, the Company purchasedspecialty lamb meat from Ningxia and organizedthe sixth Lamb Roast Festival, a traditional culturalevent for all employees. This event not only boostedemployee job satisfaction but also supportedrural industry development, contributing to localeconomic growth and increased income for farmersin alignment with the rural revitalization strategy.
Purchase farmer products from Pujiang
Lamb Roast Festival
Rural Revitalization
JSG actively responds to the national strategy for rural revitalization, leveraging its technological and resourceadvantages to promote rural economic development and facilitate coordinated development between urban andrural areas. The company continuously works to consolidate and expand the achievements in poverty alleviation,contributing to the creation of a better rural environment.JSG Purchased special agricultural products to spread warmth during the Spring FestivalCase
On the eve of the Spring Festival in 2024, the Company proactively connected with Shanqian Village inWangcunkou Town, Suichang County, Zhejiang Province. JSG purchased over 7000 gift boxes containinglocal specialties such as dried bamboo shoots, ecological pork, and traditional sugar cakes as SpringFestival benefits for employees. This initiative helped open up market channels for local farmers, effectivelyaddressing issues of unsold agricultural products, and supporting the socio-economic development of therural area, thus fostering a better future together.
Centralized procurement of special agricultural products as employees Spring Festival benefits
127128
ESG Performance
Financial indicatorsData itemUnit202420232022Operating incomeCNY 10,0001,757,6611,798,3191,063,831Net pro?t attributable to parent
company
CNY 10,000250,973455,751292,437Total assetCNY 10,0003,155,0183,680,8362,888,928Amount of tax paid during the reporting
period
CNY 10,000138,383165,275150,184
Economy
Business ethics
Data itemUnit202420232022
Number of reported incidents of anti-
corruption
/000Coverage rate of employees receiving
anti-corruption training
%100%100%100%
Diversity of the Board of DirectorsData itemUnit202420232022Members of the Board of Directors Persons999
Number of female directorsPersons222Number of independent directorsPersons333
Governance
Three wastes management (waste water, waste gas, solid waste)Data itemUnit202420232022Total recyclable wasteTon2,0621,5001,800Total general solid wastesTon2,9151,100600Total general solid waste recycledTon9201401,200Total wastewater dischargem
1,026,122958,057763,947Total wastewater circulationm
201,21245,90733,569
Water resourceData itemUnit202420232022
Purchased municipal waterm
3,096,4223,028,793922,323Consumption intensity of water
resources
t/CNY10,000 revenue1.761.680.87Water circulation
m
88,375,46934,571,43029,567,698Energy consumption and greenhouse gasData itemUnit202420232022
Diesel consumptionLitre25,52634,710166,056Gasoline consumptionLitre20,62515,08031,084Renewable energy consumptionKWh8,389,02111,764,9757,948,948Purchased electricity consumptionKWh541,025,999484,010,108255,969,990
Total greenhouse gas emissionstCO
308,561276,046146,478Greenhouse gas emission intensity
tCO
/CNY10,000revenue
0.180.150.14PV power generation'0000 kWh1,4821,038345
Environment
Safety and environmental investmentData itemUnit202420232022Amount of green environmental
protection investment
CNY 10,0003,5823,8332,875Amount of safety production investmentCNY 10,0001,385904855
129130
Employee Retention
Data itemUnit202420232022
Core employee turnover rate%6.673.395.56Average years of employment of core
employee: Male
Year/person9.718.778.76Average years of employment of core
employee: Female
Year/person8.837.858.89
Employee diversity
Data itemUnit202420232022Total employeesPersons6,1117,4957,688Number of disabled employeesPersons753Number of minority employeesPersons274304378
Female employee development
Data itemUnit202420232022
Number of female employeesPersons9761,1651,032Number of female management
Persons595734
Number of female executives
Persons17159TrainingData itemUnit202420232022
Total number of trained employeesPersons6,1117,4957,688
Total training hours of employeeshr2217.523
R&D
Data itemUnit202420232022Total number of R&D personnelPersons1,5881,6781,354Proportion of R&D personnel in total employees%25.9922.3917.61
R&D investmentCNY 10,000111,919114,54079,633
Intellectual property
Data itemUnit202420232022Cumulative number of patents as of December 31,
2024
Pcs1,069914644Cumulative number of invention patents as of
December 31, 2024
Pcs25617281Number of new patents in 2024Pcs323345141Number of new invention patents in 2024Pcs1059215
Industry development
Data itemUnit202420232022
Cumulative number of standards led or
participated
Pcs231918Supply chain
Data itemUnit202420232022Total number of suppliers/1,3861,5041,094Percentage of suppliers signed Supplier Code of
Conduct
%100%100%100%Percentage of suppliers with clauses that includeenvironmental and labor requirements
%100%100%100%Percentage of suppliers conducted social impact
assessments
%94%93%91%Percentage of suppliers conducted environmental
impact assessments
%94%94%92%Percentage of purchasers trained in sustainable
procurement
%100%100%100%Note
: Core employees refer to those with a job level of 7 and above at JSG.Note
: Female management refer to those with a job level of 5 and above at JSG.Note
: Senior executives are selected for the positions of director, deputy director, general manager, vice general manager,president and vice president.
SocietySociety
131132
Index of IndicatorsSelf-Regulatory Guidelines for Shenzhen Stock Exchange Listed Companies No. 17—Sustainable
Development Reporting (Trial) (April 2024) Benchmarking Index TableIndexCorresponding section of this reportClimate change tackling
Climate change tackling
ESG PerformancePollutant discharge
Efficient resource usage
ESG PerformanceWaste disposal
Efficient resource usage
ESG PerformanceEcosystem and biodiversity protection
Not involved. The company's operational sites are not located within keyprotected areas, and its production and business activities do not havesignificant negative impacts on ecosystems and biodiversity. Therefore,this issue has not been included as an ESG topic by Yealink.Environmental compliance
management
Environmental compliance management
ESG PerformanceEnergy usage
Efficient resource usage
ESG PerformanceUsage of water resources
Efficient resource usage
ESG PerformanceCircular economy
Efficient resource usage
ESG PerformanceRural revitalization
Rural revitalization
ESG PerformanceContributions to the society
Social welfare
ESG PerformanceInnovation-driven
Innovation-driven
ESG PerformanceEthics of science and technology
Not involved. The company's core business does not involve gene editing,artificial intelligence ethics, or other related fields. There are no topicsrelated to technological ethics in its business activities, and this issue
has not been included as an ESG topic by Yealink.Supply chain security
Supply chain securityESG Performance
Self-Regulatory Guidelines for Shenzhen Stock Exchange Listed Companies No. 17—Sustainable
Development Reporting (Trial) (April 2024) Benchmarking Index TableIndexCorresponding section of this report
Equal treatment to small and medium-
sized enterprises
Business ethicsESG PerformanceSafety and quality of products and
services
Quality managementCustomer servicesESG PerformanceData security and customer privacy
protection
Privacy and Information Security
ESG PerformanceEmployees
Employee rights and benefitsEmployee development
Employee careOccupational health and safety
ESG PerformanceDue diligence
Business ethicsClimate change tacklingCommunications with stakeholdersESG ManagementAnti-commercial bribery and anti-
corruption
Business ethicsESG PerformanceAnti-unfair competition
Business ethicsESG Performance
133134
2024 Environmental, Social and Governance (ESG) Report
133134
Reader FeedbackDear Reader,Greetings!Thank you very much for taking time to read the 2024 Environmental, Social and Governance (ESG) Report. In orderto provide you and other stakeholders with more valuable information and effectively promote the Company'sability and level of ful?llment of corporate social responsibility, we sincerely look forward to your comments andsuggestions.Choice Questions (please tick in the appropriate box)
1.What is your overall evaluation of this Report?
□Very Good □ Good □ Medium □ Relative Poor □ Poor
2.How are the report responses and disclosures to stakeholder concerns?
□Very Good □ Good □ Medium □ Relative Poor □ Poor
3.How do you think JSG is doing in terms of economic responsibility?
□Very Good □ Good □ Medium □ Relative Poor □ Poor
4.How do you think JSG is doing in terms of environmental responsibility?
□Very Good □ Good □ Medium □ Relative Poor □ Poor
5.How do you think JSG is doing in terms of safety management?
□Very Good □ Good □ Medium □ Relative Poor □ Poor
6.How do you think JSG is doing in terms of employee responsibility?
□Very Good □ Good □ Medium □ Relative Poor □ Poor
7.How do you think JSG is doing in terms of community responsibility?
□Very Good □ Good □ Medium □ Relative Poor □ Poor
8.Are the information, indicators and data disclosed in the Report clear, accurate and complete?
□Very Good □ Good □ Medium □ Relative Poor □ Poor
9.Do you ?nd the organization and layout of this Report easy to read?
□Very Good □ Good □ Medium □ Relative Poor □ PoorOpen-ended QuestionDo you have any comments or suggestions on the ful?llment of social responsibility by JSG and this Report?