Sustainability Report
Sunwoda Electronic Co., Ltd.
2024
About This Report
Report DescriptionThis report is the fifth ESG report issued by Sunwoda Electronic Co., Ltd. (hereinafter referred to as"Sunwoda", "the Company" or "the Group") to all stakeholders.The reporting period is from January 1, 2024, to December 31, 2024 (hereinafter referred to as"this year" or "the reporting period"). Some data may extend beyond the above period (subject tospecific date annotations) to enhance the report's completeness.Scope andBoundary of Report
The scope of this report is consistent with the consolidated financial statements of SunwodaElectronic Co., Ltd. (stock code: 300207).ReportData Description
The financial data in this report is sourced from the Company's audited financial reports. Otherdata comes from the Group's internal documents and summarized statistical information. Unlessotherwise specified, all currency types and amounts mentioned in this report are denominated inRenminbi (RMB).There are no false records, misleading statements, or major omissions in this Report. TheCompany holds joint and several liabilities for the authenticity, correctness, and completeness ofthis Report.The Report is available in both Chinese and English. For slight discrepancies between theChinese and the English versions, the Chinese version shall prevail.Basis of PreparationThis report is developed in accordance with theSelf-Regulatory Guidelines No. 17 for CompaniesListed on Shenzhen Stock Exchange--Sustainability Report (For Trial Implementation)publishedby the Shenzhen Stock Exchange (hereinafter referred to as the "Shenzhen Stock ExchangeGuidelines"). Meanwhile, this report also references authoritative standards and guidelines suchas theSustainability Reporting Standardsby Global Reporting Initiative (GRI Standard 2021),the United Nations Sustainable Development Goals (SDGs), the "Ten Principles" of the UnitedNations Global Compact (UNGC), andIFRS Sustainability Disclosure Standardsof the InternationalSustainability Standards Board (ISSB), as well as key issue indicators from mainstream ESG ratingsin China and internationally.Processof Preparation
Based on ESG practices, this Report advanced by the process of "Project Initiation & Approval -Material Collection - Preparation & Revision - Management Review - Board Review - Disclosure".Frequent communications were made with stakeholders during the project initiation andapproval and the preparation and revision stages to study and demonstrate the frameworkstructure and content of the Report.Access of ReportThe electronic version of this Report can be view or download from the official website ofSunwoda Electronic Co., Ltd. (https://www.sunwoda.com/).The Company will keep improving and enhancing the disclosure level and the ESG managementcapability in the future. Any questions or suggestions on this report, please contact the Companyfreely:
Sunwoda Electronic Co., Ltd.Address: No. 2 Yihe Road, Shilong Community, Shiyan Sub-district, Bao'an District, Shenzhen,Guangdong Province, ChinaTel.: 86-0755-29516888Fax: 86-0755-29516999
CONTENTS
Innovation-driven,Circular Sustainability
Environmentally Friendly,Green Manufacturing
Excellence in Governance,Pursuing Perfection
People-OrientedShared Prosperity
Full Lifecycle Green SolutionsPioneer R&D Innovation
Message from the ChairmanAbout SunwodaAnnual TopicSustainability ManagementAppendix
Addressing Climate ChangePracticing Green ProductionFostering a Low-Carbon CultureConserving Biodiversity
Ensuring Stable OperationsBuilding an Intelligent EnterpriseSafeguarding Product Quality and Safety
Cultivating a Vibrant WorkplaceCreating Customer ValueEstablishing Responsible Supply ChainPromoting Industry DevelopmentConstructing a Beautiful Home
LIFECYCLEECOLOGY
ECOLOGYACCOUNTABILITY
ACCOUNTABILITYPARTNERSHIP
Message from the Chairman
In the passed 2024, faced with complex situations such as the slowingeconomic growth and the changing international trade pattern,Sunwoda guided by the vision of "To become a respected world-class new energy enterprise" and with the mission of "Innovationdrives the progress of new energy world" has deeply engaged inthe lithium battery field, so as to provide greener, faster, and moreefficient integrated new energy solutions for the society. In the pastyear, Sunwoda has achieved a breakthrough performance despitechallenging market conditions, achieving operating revenue of RMB
56.021 billion and a net profit attributable to shareholders of listed
companies of RMB 1.468 billion, with a year-on-year increase of
36.43%.
As a world-leading conpany in the lithium battery industry, Sunwodadefines the standard of success not merely in terms of short-termfinancial returns, but on the foundation of harmonious coexistence ofenvironment, society, and governance capabilities. ESG practices havebecome a crucial driving force for the Company's strategic upgrade,guiding Sunwoda towards a more sustainable and responsibledevelopment path.
In the new round of human social development and transformation,the concept of sustainable development serves as the core enginefor shaping the blueprint for change. The Company has announcedthe sustainability management strategy "LEAP toward a SustainableFuture" . This strategy integrates ESG management into the Company'soperations through focusing on four dimensions - Lifecycle, Ecology,Accountability, and Partnership - to continuously advance sustainabledevelopment and improve ESG management system to lay a strongfoundation for the Company's long-term growth. Additionally, Sunwodaenhanced the ESG governance by upgrading the Board StrategicCommittee to the Strategy and Sustainable Development Committee.This change further clarifies responsibilities and ensures effectiveimplementation and oversight of ESG principles from the strategicto the operational level, fully driving the achievement of sustainabledevelopment goals.
In response to customer's requirement in carbon reduction, Sunwodastrictly follows the "carbon peaking and carbon neutrality" strategyand the Science Based Targets initiative (SBTi) commitment to limittemperature rise to 1.5°C. We set corporate "dual carbon" goals andactively explore emission reduction pathways to systematically respondto climate change. Furthermore, we practice clean production andstrive to minimize environmental impact at every stage. In 2024, wepromoted comprehensive low-carbon production and operations andcompleted a total of 215 energy-saving management and technicaltransformation projects, achieving annual electricity savings of 66.748million kWh. Additionally, four subsidiaries have achieved PAS 2060carbon neutrality certification for their industrial parks.
Against the backdrop of the comprehensive implementation of theglobalization development strategy, Sunwoda remains committedto a deep understanding of policy trends and regards "Integrity"as the lifeline for the Company's steady and long-term progress,and "Innovation" as the primary driving force for leading corporatetransformation. Sunwoda bases its operations on integrity, alwaysadhering to global laws, regulations, and business ethics whileintegrating quality safety, consumer rights, and social responsibilityinto the core of its development. With a forward-looking vision, webreak boundaries. Through technological iteration, model upgrades,and ecological reconstruction, we drive industry value leaps. Sunwodais continuously exploring the forefront of new energy technologies,focusing on the research and development of innovative technologiessuch as solid-state batteries and sodium-ion batteries, andcontributing key strength to the progress of the new energy industry.Moreover, we regard digitalization as one of the group's four strategicmodernization pillars. We adhere to the digital strategy guidingprinciple of "customer-centric and business-oriented" by vigorouslycarrying out digital construction work to support the maximization ofbusiness value and the comprehensive layout of digital transformation,thus promoting the enterprise towards a new journey of high-qualitydevelopment.
Sunwoda is firmly committed to advancing excellence in corporatesocial responsibilities, working together with stakeholders to createa better future. We prioritize the wellness and health of "people",adhering to a people-oriented approach and considering the growthand development of employees as the cornerstone of corporatemanagement. The Company promotes responsible supply chainmanagement and collaborates with partners from all sectors of societyto empower each other and jointly carry out sustainable cutting-edgepractices. Additionally, as a company that practices social responsibility,Sunwoda is deeply engaged in public welfare and widely carriesout charitable actions. We are focusing on key impact areas such asvulnerable population support, educational advancement, medicalassistance, and disaster relief to drive social development, as well asproviding comprehensive support for high-quality rural developmentthrough educational, ecological, cultural, and healthcare interventions,demonstrating our commitment to social responsibility.Where there is a will, there is a way. The new energy industryundertakes the critical assignment of sustainable development forhuman civilization, and sustainable development is a strategic choicefor Sunwoda. We sincerely hope to collaborate with every ecologicalpartner to create a more prosperous, beautiful, and harmonious future,contributing to the grand blueprint for building a community with ashared future for mankind!
Strategic Guidance:
Advancing Towards a Sustainable Future
Customer-Centric Approach:
Building a Full-Chain Low-Carbon Ecosystem
Policy-Driven Insights:
Leading to High-Quality Development
Social Responsibility:
Collaborative Journey to Wellbeing
We actively practice a circular economy based on fully meetingcustomer's needs by deeply integrating green design concepts intoour product development system. We continuously increase R&Dinvestment in green clean technologies and establish a comprehensivelifecycle environmental management covering "raw materials -production - use - recycling". We also continuously improve the digitalplatform for battery passports and actively layout battery recycling,committing to achieving green management of products throughouttheir entire lifecycle. In 2024, we achieved deep collaboration with oursupplier partners across multiple dimensions such as strategy, goals,systems, resources, and digitalization, jointly promoting the greentransformation and sustainable development of the supply chain.
Chairman of the Board Wang Wei
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Sustainability ManagementEcologyAccountabilityPartnership2024 Sustainability ReportLifecycle
AboutSunwoda
CompanyProle
Sunwoda Electronic Co., Ltd. was founded in 1997 and listed on the Shenzhen Stock Exchange in 2011 (stockcode: 300207). In 2022, It successfully issued GDRs and was listed on the Swiss Stock Exchange (hereinafterreferred to as the "SIX Swiss Exchange"), making it a global leader in the lithium-ion battery industry.With its mission of "driving the global advancement of new energy with innovation", Sunwoda is deeplycultivating the lithium battery field and is dedicated to providing society with more green, rapid, and efficientintegrated new energy solutions. The company has established five major business segments: consumerproduct, power technology, energy technology, smart hardware, and ecological innovation of industry.With a vision of "based in Shenzhen and serving the world", Sunwoda has built multiple production bases invarious provinces across China, including Guangdong, Jiangsu, Zhejiang, Shandong, Jiangxi, Sichuan, andHubei, as well as in countries like India, Vietnam, Hungary, Morocco, and Thailand, with overseas marketingagencies in the United States, France, Germany, Israel, South Korea, and Japan.Guided by the vision of “becoming a respected world-class new energy enterprise”, Sunwoda activelyembraces national strategic opportunities and adheres to prudent operations, continuous innovation, andopen cooperation. The Company reinforces strategic leadership and accelerates the pace of globalization,digitalization, intelligence, and green development. After nearly thirty years of rigorous development,Sunwoda has not only established profound technological foundations in the lithium battery field with theindustry-leading manufacturing process, but also has diversified its business portfolio. The Company hasbecome a hidden champion in the 3C consumer battery sector, ranked among the top ten globally in installedcapacity of power batteries, among the top ten Chinese companies in global energy storage cell shipments,and among the global top five in energy storage system (DC side) shipments.
VietnamHungary MoroccoThailand
Paris in FranceHamburg in Germany
Seoul in South Korea
Tel Aviv in Israel
Tokyo in Japan
Benefiting from its innovative R&D endeavors, Sunwoda has emerged as a top performer in theglobal new energy industry. The company is widely recognized by the government, industry, andcustomers. It has not only won the Shenzhen Mayor's Quality Award, the Guangdong ProvincialGovernment Quality Award, the First Prize of Guangdong Science and Technology Progress Award,and the First Prize of China Industry-University-Research Cooperation Innovation Achievement Award,but has also been recognized as a National Technology Innovation Demonstration Enterprise and a"Digital Leading" Enterprise by the Ministry of Industry and Information Technology. Its lithium-ionbattery modules for smartphones have been designated as the national "Single Champion Productin Manufacturing". SEVB has been recognized as Provincial and Municipal Champion Enterprise inSpecialized Manufacturing. Additionally, it has consistently ranked high in various lists, such as China'sTop 500 Private Enterprises (No. 258) and the Global Top 500 New Energy Enterprises (No. 17). It hasalso been rated as a global Tier 1 EV battery manufacturer by the international agency Benchmark,and listed in BloombergNEF’s rankings of Global Tier 1 Energy Storage Manufacturers and BankableEnergy Storage System Providers. The company has also received honors from customers such asXiaomi, vivo, Li Auto, and Nissan.Looking to the future, Sunwoda aims to be a "pioneer" in the new energy sector by leveraging itsprofessional services and innovative technologies to facilitate the global energy revolution andcontribute to a green Earth!
HeadquartersBao'an District inShenzhen
R&D centers
production bases
overseas marketingagencies
Bao'an District in Shenzhen
Headquarters
Shenzhen and Huizou
R&D centers
India
production bases
Los Angeles in USASilicon Valley in USA
overseas marketing agencies
JiangsuHubei
SichuanShandong
JiangxiZhejiang
Guangdong
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Corporate CultureFinancial Performance
Company History
After nearly thirty years of rigorous development, Sunwoda has developed into a leading enterprise in the global lithium-ion battery field.
1997Sunwoda wasestablished.
2012
Sunwoda started theintelligent hardwarebusiness.
2008
Sunwoda started the R&Dof power battery BMS,modules, and PACK.
2016
Sunwoda establishedenergy storage businesssubsidiary .
2000Sunwoda commenced volumesupply to global key customers .
2014
Sunwoda consumer-gradelithium-ion battery cellsachieved mass production.2011Sunwoda was listedon the GEM board ofShenzhen Stock Exchange.
2017Sunwoda's first overseasbase was established inIndia.
2021Sunwoda's power battery business acceleratedexpansion, with two multi-billion RMB projectslaunched in Jiangxi and Shandong .2019
Sunwoda entered officialcooperation with global premiumautomotive OEMs .
2023
Sunwoda's first Europeanfactory established inHungary.
2018
Sunwoda's powerbattery cells wentinto production.
2022
Sunwoda was listed on the Swiss StockExchange, entering an essential phaseof globalization strategy.
2020
Nanjing productionbase commenced massoperations .
2024
Sunwoda's energy storage battery businessachieved significant growth, ranking amongChina's top 10 enterprises in global shipments.
Operating revenue
Netprotattributabletoshareholders of the listed
company
Tax amount
560.21
14.68
12.85
Mission
Core Values
Vision
Innovation drives the progress of newenergy world
Customer Success, Self Criticism, HonestyFirst, Passionate Endeavor, Team Work
To become a respected world-class newenergy enterprise
RMB 100 millionRMB 100 millionRMB 100 million
0506
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Business Units
Comsumer product is Sunwoda's traditionalcore business. The Company actively increasesR&D efforts, strengthens quality management,and integrates new technologies such asfast charging and dual battery cell solutionsinto designs for various brand smartphones.Currently, Sunwoda has achieved deepcooperation with leading global mobileterminal manufacturers, forming a large,stable customer base. Sunwoda's shipmentvolume of smartphone lithium batteries PACKconsolidates global leadership position . Thelaptop lithium battery business of the Companyserves leading global brand manufacturersand has gained recognition from numeroushigh-quality customers both domesticallyand internationally. Furthermore, Sunwoda isactively expanding its 3C lithiumion battery cellbusiness to increase battery cell self-supplyrates, thereby reducing supply risks caused bytechnical barriers and enhancing profitability.
Sunwoda began its power batterybusiness in 2008, with products coveringbattery cells, modules, BMS, and PACK.The Company is dedicated to providingcompetitive and scene-specific powerbattery solutions and energy storagecells for the new energy industry. Relyingon six core competitive advantages—advanced technology, exquisite smartmanufacturing, unparalleled quality,reliable delivery, open cooperation,and nearly three decades of experienceserving large clients—Sunwoda haswon recognition from numerousrenowned clients both domestically andinternationally, enabling its bulk supply toworld-class automotive companies.
Sunwoda Energy is a wholly ownedsubsidiary of Sunwoda specializing inintegrated lithium battery energy storageand application technology. It focuses onfive major business areas: power energystorage, industrial and commercial energystorage, household energy storage,network energy, and smart energy. Basedon customer needs and pain pointsin segmented markets, the Companyprovides innovative and competitive greenenergy products and solutions. It aimsto become an industry leader in energystorage products and solutions, investmentand operation, and channel and brandinfluence.
With advancements in key technologiesand increased policy support, thedevelopment of products in areas suchas smart homes, smart offices, smartwearables, and smart security systemsis significantly enhancing the intelligentexperience of people's lives. Leveraginga professional R&D and engineeringmanufacturing team, a top domesticacoustic laboratory, and a dedicated dust-free automated assembly workshop,Sunwoda provides clients with intelligenthardware product solutions, includingclean appliances, electric toothbrushes,and electronic pens. It offers a full-process solution from product design tomanufacturing and delivery.
Intelligent Manufacturing: Independentlydevelop intelligent manufacturing productionlines, innovatively apply Industry 4.0 andindustrial Internet technologies, and builda benchmark factory integrating intelligentmanufacturing, industrial Internet, and greenmanufacturing.Industrial Internet: Focus on the lithiumbattery and new energy industries, and builda platform foundation, intelligent supplychain collaboration platform, dual-carbonmanagement platform, and battery passportplatform with distinct industry characteristics.Third-Party Testing Services: Specialize inthe lithium battery and its upstream anddownstream fields, providing comprehensivetechnical services such as testing andanalysis, inspection and certification, standardtechnology research, collaborative innovationin R&D technology, and high-quality integratedsolutions.
Consumer ProductPower TechnologyEnergy TechnologySmart Hardware
Ecological Innovation
of Industry
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Highlighted Performance
Released and optimized sustainability andESG-related process and policy documents:
Number of product recalls due toquality issue:
Participants in the Sustainable SupplyChain Development Conference:
Amount involved in major safety and qualityliability incidents related to products and services:
Consistent implementation of carbonverication,carbonquotatrading,andcompliance:
Total number of employees:
R&D investment:
Internal sustainabilityculture activities held:
Customer satisfaction rate:
ParkscertiedforPAS2060carbon neutrality:
Percentage of female employees:
Total number of suppliers who signedthe Supplier Code of Conduct:
Employee coverage rate ofintegrity training:
Expenditure of Sunwoda Charity Foundation:
Installed photovoltaiccapacity:
Occupational health examination coverage ratefor frontline employees:
Annual electricity savingsachieved:
Major safety accidents causinginjuries and fatalities:
Patents related to cleantechnologies:
Representative products with ISO 14067Product Carbon Footprint declarationscompleted in 2024:
Investment in workplace safety:
R&D team members:
Number of suppliers covered byconictmineralsduediligence:
Number of operational sites that passed ISO27001 Information Security Management Systemsurveillance audit:
Distributed photovoltaic powergeneration:
Energy-savingimprovement projectscompleted:
Number of occupationaldisease cases:
Cumulative domesticpatent applications:
Percentageofverieduseofqualiedsmelters:
Number of participants whopassed the information securityexamination:
Investment in rural revitalization:
Proportion of greenelectricity usage:
Selected GBA BatteryPassport pilot projects:
consecutive years
MWten thousandkWhMWh
100+
54,292
3.33
92.89%
30.66%
3,266
100%
592.08
94.10
100%
6,674.8
5,812
8,389
1,117
94,800
7,265
100%
7,669
241.90
29.71%
billion
issueRMB
RMB
Long-term Sustainable Management
Harmonious Green Ecology
Strong R&D Capability
High-Quality Products and Services
Caring for Employees and Promoting Joint Development
Collaborating with Partners for Mutual Success
Comprehensive Social Care and Support
Robust Internal Governance
3,647.96ten thousandRMB
ten thousandten thousandRMBRMB
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Annual honors and awards
Fortune China
2024 Fortune China
ESG Impact List
China Enterprise DirectorsAssociation
Siemens ChinaExcellent Practicesfor Corporate Greenand Low-CarbonDevelopment 2024
Forbes ChinaForbes China 2024Annual ESG InspiredCase Studies
Southern Weekly
Ranked 3rd in ChinaCorporate Social
ResponsibilityLeaderboard 2023
Responsibility Management
Ministry of Industry andInformation TechnologyTypical ApplicationCases of AI-PoweredNew Industrialization
Chinese Association for
ArticialIntelligence
3rd Prize in the IntelligentManufacturing Category ofthe Innovative ApplicationsTrack, The 3rd PazhouAlgorithm Competition(South China Area)
Hithink
MSCI ESG
Excellence-Level
Smart Factory
Popular ListedCompany AwardBBBBAA
Fortune China
Fortune China Top50 Tech Companies
GuangdongFederation of TradeUnionsTitle of GuangdongCraftsman Academy
Zhaopin
China's Top 100 BestEmployers 2024
GuangdongAssociation for Quality
1st-Class Achievement
in Innovation
Publication
Competition
Securities Daily
Sci-Tech InnovationBest Practice ESGRating
National DataAdministration
Top 36 in "DataElement ×" CompetitionZhejiang Sub-Contest(Jinhua Area)
Lenovo
Excellence ApplicationAward in LenovoAIGC EmpoweredQuality ManagementInnovation Competition
Ministry of Industry andInformation TechnologyMinistry of Industry andInformation Technology
TMTpost
CDPWind
Intelligent ManufacturingDemonstration Factory
Best InternalGovernance ListedCompany
Chinese Society forElectrical Engineering
1st Prize in ChinaElectricity Science and
Technology Award -Technology ProgressAward
Human Resources and Social
Security Administration ofShenzhen Bao'an District
Top 10 Cases ofGovernment-School-Enterprise Cooperation inBao'an District
ZhaopinAward for Campus
Recruitment Best
Practices
China Academy of Information andCommunications Technology
2nd Prize in the 7thNational IndustrialInternet Data InnovationApplication Competition
Organizing Committee of WorldIndustrial Development Forum
2024 AILE Award - BestAI Practice Application
China Industry-University-
Research InstituteCollaboration Association
1st Prize in ChinaIndustry-University-Research CollaborationInnovation Achievement
Award
Haitou
MostInuentialEmployers 2025
51job
OutstandingHuman ResourceManagement Award
2024
R&D Innovation
Human Resources
Product Quality
Capital Market Honors
Rating approval
Digital and Intelligent Empowerment
Member of SiemensChina Zero-CarbonPioneer Initiative
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LEAP toward a Sustainable FutureIn recent years, amidst multiple challenges such as cyclical fluctuations in the industry and intensified internalcompetition within the domestic lithium battery sector, Sunwoda has formulated a strategic frameworkcentered on four key pillars: globalization, digitalization, intelligentization, and green development. TheCompany has firmly pursued the path of sustainable development and proactively launched a series ofinitiatives, gradually building globally competitive capabilities in sustainability.Establishing a comprehensive sustainable strategy systemSunwoda has established the “LEAP toward a Sustainable Future” strategy, outlining a strategic blueprintfor the Company’s globalization and sustainable development based on four pillars: Lifecycle, Ecology,Accountability, and Partnerships. Meanwhile, a four-tier sustainable management structure has beenestablished, covering decision-making, management, operation, and execution, with the Strategy andSustainable Development Committee under the Board of Directors ensuring the effective implementation of thestrategy. Additionally, the Company has restructured and integrated the Group’s sustainable development workmodel and organizational framework with a focus on strategy and system management. Senior executivesoversee sustainability-related performance, while sustainability task agreements are signed with variousfunctional departments and business units. LEAP serves as the framework for managing sustainability-relatedtopics.
To actively respond to the global sustainable development agenda and advance the company's green transition, Sunwoda held the "LEAPtoward a Sustainable Future" Sustainability Strategy Launch Event at its Guangming Campus in Shenzhen.The event was witnessed bySunwoda's founder, Mr. Wang Mingwang, together with the core management team. Mr. Liang Rui, Vice President and Chief SustainabilityOfficer of Sunwoda, served as the host of the event.In his opening speech, Mr. Wang Mingwang emphasized that the official release of Sunwoda's Sustainable Development Strategy marks asignificant milestone in the company's sustainability journey. It signifies a shift from passive compliance to proactive leadership in the fieldof sustainable development. Mr. Wang called on all employees to take this strategic blueprint as a guiding framework and to further refineand implement detailed action plans across all functions.Looking ahead, the company will stay aligned with the LEAP strategy, leveragingtechnological innovation as a driving force and embracing responsibility as a cornerstone. Together with employees, customers, partners, andsociety at large, Sunwoda will advance toward a sustainable future characterized by harmony between humanity and nature.
Deeply understanding policy trendsWith a focus on global sustainable development goals and regulations, Sunwoda integrates its unique sustainability culture and practices, aimingto lead the industry toward a new era of sustainable development and showcase China’s ESG strength to the world. In the process of globalization,Sunwoda adheres to international regulatory frameworks, such as theEU Batteries and Waste Batteries Regulation ,as the minimum compliancestandard. The Company conducts in-depth analysis of regulatory requirements and internally released the Action Guidelines on the EU Batteries andWaste Batteries Regulation, demonstrating a high level of compliance and forward-looking awareness. At the same time, the Company maintains adeep understanding of both domestic and international sustainability requirements, effectively responding to regulatory changes and market risks.Guided by policies, Sunwoda continuously strengthens its internal capabilities for sustainable development. In alignment with the national dual-carbon policy, the Company released its “dual-carbon” goals in 2022 and has since actively promoted green manufacturing models, establishing“near-zero carbon parks” and “carbon-neutral parks” to achieve effective carbon emission management in production and operations. TheCompany has conducted an in-depth understanding of the requirements under theEU Batteries and Waste Batteries Regulationand developed the“Sunwoda Digital Battery Passport Platform” to comprehensively collect and record battery lifecycle data, effectively addressing technical barriersfor exports to Europe. At the same time, the Company actively participates in international organizations and initiatives such as the United NationsGlobal Compact (UNGC), adheres to international sustainability standards, and continuously improves its own sustainability development system.
1218The documents and systems related tosustainable development and ESG have beenreleased and optimized.
The Company followed the LEAP strategy toconduct comprehensive topic management,covering critical internal topics.
Sunwoda jointly released a greenoutbound solution for ecosystemco-creation —Sunwoda BatteryPassport Platform – SiemensCarbon Footprint CollaborationEdition— with Siemens at the 7thChina International Import Expo.
Sunwoda engaged in-depthdialogues with the Catena-Xdelegation to jointly envisiona new blueprint for digitaldevelopment in the batteryindustry.
Sunwoda released the
Action Guidelines on the EUBatteries and Waste BatteriesRegulationand issuededitions of its regular ESGpolicy briefing.
Sunwoda held a roundtabledialogue on “SustainableDevelopment of the Full Value ofPower Batteries”, invitingpartners from the value chain todiscuss the impact of theEU Batteryand Waste Battery Regulations.
Sunwoda actively promotedthe development of China’sfirst group standardon battery full-lifecycletraceability data requirements.
The Company establishedthe Strategy and SustainableDevelopment Committee underthe Board of Directors and built afour-tier sustainable managementstructure.The Company defined a total of
sustainable developmentstrategic objectives, including“100%
compliancewith the EU Batteries and WasteBatteries Regulation BatteryPassport requirements for EVbatteries exported to the EU,LMT batteries, and industrialbatteries over 2KWh.”Sunwoda releases its sustainable development strategyCase
Annual Topic:
Sunwoda was selected for theGlobal Battery Alliance (GBA) 2024Battery Passport Pilot Project forthe first time, becoming one ofthe companies with projectsselected.
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Fully satisfying customer needsOutstandingly fullling social responsibilitiesSunwoda adheres to a dual-engine approach driven by technological innovation and business model advancement, with customer demands asthe core driving force. The Company carries out forward-looking research and development planning and continuously enhances its global marketperformance.In terms of sustainable development, Sunwoda has established a full lifecycle environmental management system, promotes green technologyinnovations such as ultra-fast charging, solid-state batteries, and silicon-carbon anodes, and develops multiple low-carbon products to support thezero-carbon transition. The Company actively focuses on the application of recycled materials in the battery industry and continuously reduces thecarbon footprint of its products.In addition, Sunwoda targets key ESG topics and collaborates with value chain partners to jointly address challenges such as climate change andlabor rights, while seizing sustainable development opportunities in the new energy industry.
As a leader in the new energy industry, Sunwoda deeply integrates social responsibility into the core of its business strategy, constructing asustainable development ecosystem for the new energy supply chain through the enhancement of internal and external capabilities and theoutward practice of responsibility. The Company is committed to becoming a respected corporate model.Internally, Sunwoda prioritizes employee development and continuously fosters a sustainable cultural influence by organizing multiple sustainability-related cultural initiatives to enhance the responsibility capabilities of all employees. Externally, in response to the Rural Revitalization Strategy,Sunwoda focuses its efforts on education improvement, cultural heritage, and ecological governance, offering support to areas such as Hexi SheEthnic Township in Heyuan and Yong’an Town in Du’an, Guangxi, exemplifying the corporate mission of responsibility in the new era.As a member of the United Nations Global Compact, Sunwoda actively engages in international dialogues, fulfilling its sustainability commitmentsthrough action. The Company transforms its green manufacturing experiences into replicable solutions, driving green transformation in countriesalong the Belt and Road through tangible collaborations such as technology standards output and the co-construction of low-carbon industrialparks, continuously promoting China’s green manufacturing image.
Sunwoda deployed a carbon footprint accounting platform and an ESG data management platform toempower sustainability management through digital capabilities.
Sunwoda respondedto customer sustainability-related requirements.
Sunwoda developed silicon-carbonanode battery technology with asilicon content of 10% and an energydensity of up to
Sunwoda achieved the industr-first application of liquid-coolingtechnology in mobile energystorage vehicle systems.
Sunwoda advanced batteryrecycling through its globalrecycling network, addressingfull lifecycle management needsacross the value chain.
Sunwoda provided integratedsolutions including comprehensiveenergy storage, “PV-storage-charging-testing”systems, andzero-carbon park services.
Sunwoda constructed smartservice stations integratingphotovoltaic power generation,distributed energy storage,electric vehicle charging, andbattery testing services.
Sunwoda was invited to participate in over authoritative domestic and international conferences and forums, including COP29,UNGC, and WEF.Sunwoda provided nearly job opportunities for persons with disabilities and was recognized as a provincial andmunicipal employment base for people with disabilities.Sunwoda advanced its employee equity incentive plan, with of core staff covered by equity incentives.Sunwoda launched itsrstmanagement trainee program to comprehensively accelerate the growth of outstanding young talents andcultivate a new generation of “Sunwoda-style” managers.Sunwoda recorded annual charitable donations of RMB million, benefiting a total of individuals.Sunwoda conducted sustainability-related training sessions and organized internal sustainability culture events, engaging over1,000 participants.Sunwoda received honors related to sustainable development.
100%
Wh/L
86%
5.9208
250,000
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Sustainability Management
Sustainable Development Strategy
Sustainability Management StructureTo deepen the implementation of its sustainable development strategy, Sunwoda continuously optimizes its sustainability management structure,ensuring a close integration of ESG practices with management and business activities to drive the Company's sustainable performance.The sustainability management structure of Sunwoda is led by the Board of Directors, with a Strategic Committee underneath. In 2024, the Board ofDirectors' Strategic Committee of Sunwoda was renamed the Strategy and Sustainable Development Committee, further clarifying its responsibilitiesfor ESG implementation from strategy to execution. Under this committee, a Sustainable Development Management Committee was established tofurther improve the sustainability management system. It serves as a permanent body that oversees Sunwoda's ESG resolution implementation, ESGrisks identification, as well as ESG strategies, goals, and plans preparation and implementation. The Company also appointed a Chief SustainabilityOfficer and set up an ESG Management Department under the Sustainable Development Management Committee to ensure standardizedsustainable development, advancing Sunwoda's high-quality development and enhancing its international image and market competitiveness insustainability.
Upholding the tenets of "Deeply understanding policy trends, Fully satisfying customer needs, and Outstandingly fulfilling socialresponsibilities",Sunwoda has formulated a sustainability development strategy themed "LEAP toward a Sustainable Future" . This strategy integratessustainability management into the Company's operations through four objectives - Lifecycle, Ecology, Accountability, and Partnership to advancesustainable development and strengthen sustainability management to lay a strong foundation for the Company's long-term growth.
Sunwoda establishes its sustainability management system in line with relevant system standards, such as ISSB, SA 8000, RBA Code of Conduct,ISO IWA 48, ISO 14001, ISO 45001, etc., combined with the actual management of the Company. It formulates theSocial Responsibility ManagementManualandSustainable Development Management Manual, which clearly define its sustainable development strategic planning, managementsystems, coordination mechanisms, performance evaluation frameworks, and practical approaches to environmental, social, and governance issues.Following the PDCA (Plan-Do-Check-Act) methodology, Sunwoda standardizes responsibilities at each level within its sustainability managementframework, effectively managing and tracking all sustainability initiatives, objectives, and actions across the organization.Simultaneously, Sunwoda cascades its sustainable development strategy throughout all relevant functional departments and business units, linkingit to executive performance metrics in a top-down approach that drives sustainable development strategy implementation and manages associatedrisks. Heads of business units and functional departments sign sustainable development commitment agreements, establishing key performanceindicators and targets based on their specific operational contexts. Guided by the Group's overarching sustainable development strategy, Sunwodahas established a series of ambitious goals spanning multiple dimensions, including greenhouse gas emissions reduction, battery recycling, andbattery passport initiatives, providing robust support for the efficient advancement of corporate sustainable development efforts.
Strategic Vision
Guiding Principles
Strategic Goals
Strategic Path
Key competencies
SDGs
Deeply understandingpolicy trends
Fully satisfyingcustomer needs
Outstandingly fulllingsocial responsibilities
Value chainempowerment
DigitalizationIntelligentizationInnovation and R&D
LifecycleEcologyAccountabilityPartnership
LEAP toward a Sustainable Future
? Battery passport? Green Products? Battery Recycling
? Operationalcarbon reduction? Renewableenergy? Environmentalcompliance
? Information
disclosure? Business conducts? Quality and safety
? Satisfaction of key
stakeholders? Sustainableprocurement? Communityimpact
Decision-making
LevelManagement
LevelOperational
LevelExecution
Level
Board of DirectorsStrategy and Sustainable Development CommitteeSustainable Development Management Committee
ESG Management DepartmentSpecialized Project Team
Sustainability Department/Group of Business Units
Provide management tools and empowerment
SupervisionReporting
ReportingGuidanceOverall planning andimplementationEnvironmentalManagementSustainableProcurementClimate ChangeResponse(Renewable Energy)OccupationalHealth & Safety
ResourceManagementInformationDisclosure
BiodiversityConservation
SupplierManagement
ProductRecyclingConictMinerals
InformationSecurity & PrivacyProtectionEmployeeRights &Benets
BatteryPassport
ConsumerproductEnergytechnology
PowertechnologySmarthardwareIntellectual
Property RightsRisk &Compliance
Ecological Innovation of Industry
BusinessEthicsCustomerServiceCommunityPhilanthropy & RuralRevitalizationEmployeeTraining &Development
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Communication with Stakeholders
Sunwoda attends to the impact of its operations on various stakeholders. By actively identifying stakeholders, sorting out their core concerns,clarifying communication methods, and keeping abreast of their demands and expectations, the Company continuously improves its sustainabledevelopment performance. Through practical actions, the Company actively creates economic, social, and environmental value for variousstakeholders such as governments, consumers, employees, customers, shareholders, and industry partners, thus continuously contributing tosustainable development.
Robust governanceAnti-corruption and businessethicsInformation Security andPrivacy ProtectionAddressing climate changeEnvironmental compliancemanagement
R&D and innovationResponsible supply chainmanagementInformation Security andPrivacy ProtectionOccupational Health andSafetyIndustry cooperation
Talent management anddevelopmentOccupational Health andSafetyProduct quality and safetyAnti-corruption and businessethicsInformation Security andPrivacy Protection
Robust governanceAnti-corruption and businessethicsR&D and innovationIndustry cooperationAddressing climate change
R&D and innovationHigh-quality products andservicesIndustry cooperationIndustry cooperation anddevelopmentResource management andcircular economyCleantech opportunities
High-quality products andservicesResponsible supply chainmanagementAddressing climate changeResource management andcircular economyCleantech opportunities
R&D and innovationHigh-quality products andservicesRural revitalization and socialcontributionAddressing climate change
Institutional investigationPolicy implementationRelevant websitesMeetingsOfficial correspondence andinformation disclosure
Supplier evaluation and auditSupplier exchanges andtrainingSupplier conferencesInternal communicationplatformTrade unions and workers'congressesEmployee assessment andpromotionEmployee training
General Meeting ofShareholdersRegular / temporaryannouncements Investorrelations websitesPerformance briefing Email,phone, and researchInteractive platformRoadshows
Industry associationsAdvocacy organizationsForums and eventsExchanges and visitsCustomer service and feedbackchannelsCustomer satisfaction surveySymposiums and visitsSocial media interaction
Charitable donationsExchanges and visitsCommunity and public welfareactivitiesVolunteer services
The Company adheres to thebusiness code of conduct,continuously optimizes internalcontrol and compliancemanagement, pays taxes infull, provides employmentopportunities, improvesenvironmental management,discloses information in atimely manner, cooperates withinspections and supervisionthrough regular reports andannouncements, and advocatesfor green and environmentallyfriendly concepts.
The Company improves thesupplier access and supervisionmechanism, establishes amutually beneficial value chainpartnership with high standardsof supplier managementand an efficient procurementsystem, actively holds supplierconferences, conducts on-siteaudits, and works together tocreate a sustainable supplychain.
The Company strengthens theprotection of employees' basicrights and interests, establishesinternal communicationchannels and platforms foremployees, builds a systematiccareer advancement path andtraining activities for employees,and carries out a variety ofteam-building and employeecare activities. In addition,occupational health andsafety management is beingcontinuously enhanced to ensurethe physical and mental well-being of employees.
The Company regularlypublishes sustainabledevelopment reports, financialreports, and other information,holds shareholder meetingsin a timely manner, reports onwork progress, and protectsinvestors' rights and interests.
The Company actively carriesout partnerships with varioussocial sectors, jointly promotesindustry innovation andsustainable developmentthrough participation instandard policy formulation,strategic cooperation projects,and hosts expert researchvisits.
The Company continuouslyimproves customer satisfaction,actively responds tocomplaints and suggestions,ensures product quality,promotes product innovation,emphasizes informationsecurity and privacy protection,and provides customers withhigh-quality products andservices.
The Company conducts publicwelfare projects in collaborationwith various parties throughcharitable foundations,supporting rural revitalizationprojects in education,healthcare, and other fields,and actively engaging involunteer services to assistcommunity development.
Government and regulatorsSupplierEmployeesShareholders and investorsPartnersCustomersPublic and communityStakeholderCategoryKey Issuesof Concern
CommunicationChannels
Main ResponseMethods
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EnvironmentSocialGovernance
Financial materiality
Impact materiality
Double Materiality Assessment
Assessment Method
Assessment Results
To effectively identify, understand, and respond to the concerns of stakeholders regarding the Company's sustainable development practices,Sunwoda regularly conducts a comprehensive materiality assessment of sustainability issues. In 2024, through policy analysis, extensive researchwith internal and external stakeholders, and other methods, Sunwoda carried out the identification and analysis of ESG material issues, providing areference basis for the Company to systematically advance its ESG work and disclose relevant information. Based on the judgment criteria for impactmateriality and financial materiality as outlined in the Shenzhen Stock Exchange's Guidelines, and referring to international authoritative guidelinessuch as ISSB and GRI, Sunwoda conducted stakeholder surveys on the material issues and carried out a double materiality assessment.
The double materiality assessment was conducted through various methods such as questionnaire surveys, interviews, and expert evaluations.During the reporting period, Sunwoda conducted assessments through online questionnaire surveys and in-depth interviews, engaging withinternal management, customers, suppliers, government agencies, industry associations, and other stakeholders. More than 800 online surveyquestionnaires were collected, and 15 in-depth interviews were conducted with senior executives and heads of major departments. This assessmentgathered a comprehensive understanding of internal and external evaluations of the significance of ESG topics, and an extensive analysis wasperformed by referencing opinions from internal and external ESG experts.
Based on the combined assessment of impact and financial materiality, the Company identified 10 issues as both financially and impact material.The following results were comprehensively assessed by the internal finance department of the Company, the ESG Management Department,and other relevant departments, as well as external industry experts, based on insights from the Company, the industry, and both domestic andinternational perspectives. These results were ultimately reviewed and approved by Sunwoda's CFO, the Sustainable Development ManagementCommittee, and the Board of Directors. All issues identified as financially material to the Company have been disclosed in the relevant chapters ofthis report in accordance with the four elements of "Governance—Strategy—Risk Management—Metrics and Targets" to comprehensively presentSunwoda's management and action initiatives on key ESG issues.
Based on theGuidelinesand referring to Sunwoda's sustainability context and business realities, combined with stakeholder feedback, theCompany identified and updated 18 sustainability-related topics in 2024: 7 environmental, 7 social, and 4 governance. The Company also identifiesand analyzes the existing and potential impacts, risks, and opportunities related to sustainability issues (Detailed information is available in theAppendix: Analysis of Sustainable Development Issues and Their Impacts, Risks, and Opportunities).
Understand the Company's activities andbusiness relationshipsInterpret domestic and internationalsustainability standards, the Company'sbusiness operations and value chain, andindustry conditions to understand thesustainability context in which the Companyoperates.
Develop an issueinventoryIdentify and screen relevant sustainabilityissues in conjunction with the realityof the Company and stakeholdercommunication, and analyze theexisting and potential impacts, risks, andopportunities related to sustainabilityissues.Assess and conrm issue materialityEvaluate and rank the impact andfinancial materiality of issues based on theCompany's situation, industry developmenttrends, and authoritative domestic andinternational studies, forming a doublemateriality matrix, and defining theboundaries of material issues.
Review and reportHighlight the issues of higher materialityduring the reporting period after reviewand confirmation by the Board ofDirectors.
A comprehensive assessment is conductedby integrating positive and negativeimpacts, actual and potential impacts, andevaluating from multiple dimensions suchas impact scale, scope, likelihood, andirremediability, which assesses whetherthe performance of the Company'ssustainability-related topics will havesignificant impacts on the environment,economy, and society.
The Company comprehensively evaluates the likelihoodof impact and the degree of financial impact over short-term, medium-term, and long-term time horizons.It assesses the influence of relevant issues on theCompany's business model, operations, and financialindicators across multiple dimensions, includingresource availability and relational dependency.
Impact materialityFinancial materiality
AssessmentProcess
Addressing Climate Change
Note: The Company defines its time horizons as short-term(up to and including 1 year), medium-term (from 1 to 5 yearsinclusive), and long-term (beyond 5 years).
EnvironmentalCompliance ManagementResource Management andCircular EconomyRural revitalization and socialcontribution
Information Security and PrivacyProtectionIntellectual Property Protection
Biodiversity conservation
Emissions and wastemanagementAnti-corruption andbusiness ethics
Clean TechnologyOpportunities
High-quality productsand servicesResponsible SupplyChain Management
Energy managementand utilization
Industry cooperation
Talent development andmanagementOccupational Health and Safety
Stable Governance
R&D and Innovation
high
high
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Sustainable Development ImpactSunwoda's Sustainable Development Strategy
The Company actively responds to national and local strategicdeployment for rural revitalization by carrying out the "Caring Canteen"project and the "Cultivation and Reading Garden" project in HongyuanVillage, Houmen Town, focusing on the development of vulnerablegroups and contributing to rural revitalization.
Complying with applicable local labor standards, the Company providesemployment opportunities, especially prioritizing local hiring.The company adheres to lawful employment practices and has issued theRegulations on Child Labor Rescue, Minor Workers and Female EmployeeProtection, explicitly prohibiting child labor and forced labor to safeguardemployee rights.Committed to building a multi-level, all-round talent pipeline system, theCompany has established a comprehensive performance evaluation system andprovides employees with clear career development paths.A people-oriented approach has been adopted to focus on employees' physicaland mental health and work-life balance.
Decent Work andEconomic Growth
The Company values the protection of employees' health, with a 100%rate of occupational health check-ups for employees.By implementing assistance programs such as the "Sunshine GuardianProgram", "Tongxin Garden: Children's Care Space Project", and"Sunshine Guardian Plan", the Company supports sick children care,family assistance, and medical aid.
Good Health andWell-being
The Company established the "Sunwoda Future Scholarship" - the"Dreams Set Sail" to support the development of education.The company prioritizes talent cultivation and development byestablishing a comprehensive training system. This includesmanagement trainee programs, degree advancement initiatives, andprofessional skill certification schemes to foster employee growth.
Quality Education
The Company advocates equal employment and prohibits limits onfemale employees' legitimate rights and interests in labor contractsor employment contracts or discrimination against female employeesin salary adjustments or job promotions. The proportion of femaleemployees accounts for 30.66%.Gender Equality
The Company follows the PDCA principle to promote waterconservation, carry out water conservation projects, and implementwater resource conservation management through methods such aswastewater recovery from pure water machines, concentrated waterrecycling, and the installation of water-saving devices and automaticsensor water-saving devices.Sunwoda Boluo Park has achieved the goal of zero industrialwastewater discharge by building its own industrial wastewatertreatment station and reusing reclaimed water.
Clean Water andSanitation
AordableandClean Energy
The Company expands the layout of photovoltaic power generation,aiming to achieve 100% renewable energy usage by 2050.Clean technology innovation has been positioned as one of the corestrategies to promote power technology and energy technologyresearch and development.
Actions
Actions
Investment in R&D amounts to RMB 3.33 billion.The Company establishes a diverse and open R&D model, building efficientand stable partnerships with upstream and downstream partners, researchinstitutions, etc., so as to create a good collaborative innovation ecosystemand solidly advance research projects.
Industry,Innovation, andInfrastructure
Adhering to the principle of "fairness and justice", the Company prohibitsany discrimination based on race, color, religious belief, gender, age andplace of origin.5,841 ethnic minority employees and 56 disabled employees have beenemployed.
ReducedInequalities
Sunwoda provides green mobility and integrated energy storage solutionsto society. Through innovative applications such as "PV-storage-charging-inspection" smart stations, shared energy storage projects, and mobileenergy storage vehicles, the company contributes to sustainable urbandevelopment.100% compliance in pollutant disposal throughout the year, with noenvironmental accidents.
Sustainable Citiesand Communities
Sunwoda has established a recycled materials subsidiary to advancebattery recycling, completing the closed-loop battery industry chain.The Company has built a digital battery passport platform and establisheda high-quality management model for the entire product lifecycle.The sustainable management of natural resources and hazardouschemicals has been strengthened to reduce pollutant emissions.The Company organized and held sustainable development activities.
ResponsibleConsumption andProduction
The Company released the "Carbon Peak and Carbon Neutrality" goals andjoined the Science Based Targets initiative (SBTi).The Company was certified by ISO 14064 and carries out greenhouse gasinventory and carbon verification every year.Sunwoda has maintained high-quality carbon verification processes andcarbon allowance trading in the Shenzhen carbon market for 11 consecutiveyears, achieving a 100% compliance rate.4 subsidiaries were certified by PAS 2060 for carbon neutrality.Low-carbon projects have been carried out in the supply chain.The Company promotes employees' awareness of low-carbon practices andunderstanding of the significance of "carbon peak and carbon neutrality" work.
Climate Action
With Investment in R&D resources, the Company develops environmentallyfriendly products and production processes, aiming to reduce environmentalimpact.The Company prioritizes biodiversity conservation by establishing acomprehensive site selection assessment system. Our operations, bothdomestic and overseas, have demonstrated no negative impact onbiodiversity, strictly adhering to ecological protection redlines.
Life on Land
The Company implements anti-corruption practices in all business activitiesfrom internal management to external cooperation and prohibits any form ofcorruption, bribery, abuse of power, favoritism, and malpractice.The Company promotes a clean and honest corporate culture, continues todeepen the integrity awareness of all employees via all kinds of activities,and creates a sound working atmosphere.It is prohibited to employ child labor and forced labor. The Companyimplements management of critical minerals and supply chain labor.
Peace, Justice,and StrongInstitutions
The Company actively participates in industry exchanges to promote thestandardization and technological advancement within the industry.The Company engages in active cooperation with global partners, includingthe United Nations Global Compact (UNGC) and the Global Battery Alliance(GBA), to work together for mutual benefits and support the achievement ofsustainable development goals.
Partnerships forthe Goals
No Poverty
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Sunwoda actively engages in both domestic and international sustainable development initiatives. The Company has joinedkey external organizations and frameworks including the United Nations Global Compact (UNGC), Global Battery Alliance (GBA),Science Based Targets initiative (SBTi), ISSB International Sustainability Disclosure Standards Early Adopter Partner, and theChina ESG Alliance. Through these commitments, Sunwoda contributes its distinctive strengths to advancing global sustainabledevelopment.
Sunwoda actively participates in the formulationof sustainable development standards, drivingthe standardization of ESG practices within theindustry chain. The Company offers scientificapproaches for the sustainable developmentof the industry and demonstrates professionalleadership in green transformation, particularlyin areas such as product carbon footprint andlow-carbon development.
In 2024, Sunwoda participated in or reviewed 9national, industry, local, and group standardsrelated to sustainable development, as well as 1white paper.
InitiativeParticipation
GlobalAdvocacy
StandardsDevelopmet
2024
itemitem
The 29th United Nations ClimateChange Conference (COP29)
United Nations Global Compact"Caring for Climate" Initiative
UN Global Compact SDG AmbitionAccelerator
2024 Asia-Pacic Carbon Summitand World Low-Carbon Cities Forum
Global Battery Alliance (GBA)
At the 29th United Nations Climate ChangeConference (COP29), Sunwoda was invitedto collaborate with supply chain partners inexploring green solutions.
Sunwoda was invited to attend and speak at the12th annual high-level meeting of the UnitedNations Global Compact (UNGC) "Caring forClimate".
Sunwoda participated in the UN Global CompactSDG Ambition Accelerator to promote theestablishment of ambitious corporate goals andbuild sustainable development resilience.
Sunwoda shared its sustainability best practicesat the 2024 Asia-Pacific Carbon Summit and WorldLow-Carbon Cities Forum, contributing expertise ingreen technology integration and circular economymodels to advance climate-smart urbanization.Sunwoda joined the Global Battery Alliance (GBA)to participate in the global battery passportpilot project and promote the full life cyclemanagement of batteries.
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Innovation-driven,Circular SustainabilityAs one of the world's leading battery manufacturers, Sunwoda deeplyintegrates green design concepts into its product development system,responding to the global demands for sustainable products, operations, andproduction. It continuously enhances the construction of the battery passportdigital platform, actively engages in battery recycling, and practices the circu-lar economy. Throughout the early, mid, and late stages of the product lifecy-cle, Sunwoda actively provides society with green solutions, comprehensivelypromoting the "Four Transformation" development strategy (globalization,digitalization, intelligentization, and green development), and contributing toglobal sustainable development.
Response to SDGs:
Key ESG Topics in this Chapter:
Resource management and circular economyCleantech opportunitiesR&D and innovationIntellectual Property Protection
LIFECYCLE
Green Design and Technology
Green Solutions
Full Lifecycle Green Solutions
Sunwoda always adheres to the corporate mission of "Innovation drives the progress of new energy world" and takes clean technology innovation asone of the core strategies, committed to offering customers green solutions throughout the entire lifecycle of its products.
Continuously improving product energy efficiency and reducing energy consumption per unit output are key actions for Sunwoda to achieve thegoals of "carbon peak and carbon neutrality" and implement sustainable operations. To this end, the Company has deeply integrated green low-carbon technology and sustainable development design concepts from the very beginning of product design.In 2024, Sunwoda continuously increased its investment in scientific research and development in the field of green clean technology. The Companyhas established environmental management requirements covering the entire lifecycle from "raw materials - production - use - recycling," deeplyembedding the concept of green design into the product development system, and striving to achieve green management throughout theproduct lifecycle. During the research and development stages of product design and process design, the Company integrates regulatory controlrequirements and external customer needs by embedding directions for green design, including increased proportion of recyclable materials,improved energy efficiency, and enhanced proportion of reusable materials after disassembly, while setting targets for key indicators.In addition, Sunwoda has positioned itself at the cutting edge of green technology innovation, pursuing visionary and breakthrough advancementsin green low-carbon technologies such as solid-state battery technology and silicon-carbon anode battery technology. Through the development ofvarious eco-friendly, low-carbon products, the Company is actively driving the evolution of product lifecycle toward enhanced sustainability, greaterefficiency, and reduced environmental impact.
Beyond product services centered on 3C batteries and power batteries, Sunwoda continues to explore customized, multi-domain green, low-carbonsolutions. Through comprehensive energy storage, integrated "PV-storage-charging-testing" services, and zero-carbon parks, the Company meetsvarious application scenario needs of customers and supports the green and low-carbon transformation of various industrial chains and regions.
Sunwoda is accelerating the development of multiple generations of solid-state batteries. Todate, the Company has successfully completed the development of its first-generation semi-solid-state batteries, initiated pilot production testing for second-generation semi-solid-state batteryprototypes, and achieved laboratory validation for its advanced third-generation all-solid-statebatteries. Compared to traditional liquid batteries, solid-state batteries offer higher energy densityand enhanced safety. This innovation is expected to enable further reductions in battery size andweight, consequently enhancing the driving range and energy efficiency of new energy vehicles.This technological progression plays a crucial role in the Company's strategy to support deepdecarbonization across the transportation industry.
Sunwoda is dedicated to developing its Flash Charging Battery, a power battery solution thatcombines extended range capability, ultra-fast charging for efficient energy replenishment,enhanced safety features, exceptional durability, and superior value retention. LeveragingSunwoda's proprietary flash-charging high-conductivity network material technology, enhanced-safety nickel-rich cathodes, and advanced high-conductivity electrolytes, this battery effectivelytackles common challenges in new energy vehicles related to driving range, charging speed, andsafety performance. The 6C Flash Charging Battery 3.0 product series from Sunwoda includes theLFP Xinxingchi battery and the 6C NCM Xinxingyao battery. The former offers a peak 6C average fast-charging capability of over 4.5C, while the latter has an ultra-fast-charging performance that cancharge from 10% to 80% SOC in just 10 minutes, significantly reducing charging time for new energyvehicles and enhancing convenience.The "Xinyue" is an energy storage battery cell specially designed for the TWh era, with a cell capacityof up to 625Ah and an energy density exceeding 430Wh/L, representing an 8.8% improvement overthe 314Ah cell. Through continuous breakthroughs in "lithium" technology, "Xinyue" battery cellscan achieve a cycle life of 15,000 cycles, flexible "zero degradation" for 3-5 years, a service life of 25years, and a total lifecycle cost reduction of over 13%. "Xinyue” technology significantly enhancesspace utilization and increases energy density by 5%.
Sunwoda's silicon-carbon anode battery technology can be applied to consumer batteries. Thissilicon-carbon anode battery with a silicon content of 10%, has a measured energy density of up to773Wh/L.
The detachable dry cell battery, equipped with a built-in high-voltage lithium-ion polymer battery, isdesigned for easy disassembly, reducing safety risks such as deformation, leakage, and fire duringbattery removal by non-professionals. Sunwoda collaborates with North American customers todevelop detachable dry shell batteries to facilitate safe and convenient removal and replacementof batteries during maintenance, thus effectively reducing battery damage and scrapping due toimproper maintenance.
Green Technology
Green Products
Battery Passport Digital PlatformWith the successive issuance of relevant domestic and international regulations and policies such as theEU Batteries and Waste Batteries Regulation
and theAction Plan for Establishing a Comprehensive New Energy Vehicle Power Battery Recycling and Utilization System, the new energy batteryindustry is facing unprecedented challenges and opportunities.As a leading global battery manufacturer, Sunwoda actively responds to policy initiatives and demonstrates outstanding leadership and innovativepractices in battery passports. The Company actively builds a digital platform for battery passports, leveraging its industry advantages to promoteplatform construction. By integrating digital technologies such as blockchain, the Internet of Things, and artificial intelligence, it achieves end-to-endmonitoring and data management for the industry chain.In 2024, Sunwoda successfully took the lead in establishing China's digital platform for battery passports, providing strong technical support for thebattery lifecycle management. Currently, the digital platform for battery passports has launched pilot operations for certain products. In additionto the statistical management of product names, types, and due diligence, the platform can also conduct traceability management for key rawmaterials, such as positive and negative electrode materials and electrolytes. By combining authoritative carbon footprint accounting standards fromboth domestic and international sources, it enables the precise tracing of product carbon footprints and emissions. This provides a digital solutionto the challenges of traceability and regulation in the new energy battery industry, contributing significantly to the sustainable development of theglobal battery industry.
Solid-StateBattery Technology
6C FlashCharging Battery 3.0Product Series
Next-Generation Xinyue625Ah Ultra-LargeEnergy Storage BatteryCells
Silicon-CarbonAnode Battery Technology
Collaboratingwith Customers toDevelop DetachableDry Cell Batteries
Early Stage
Mid Stage
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On November 6, 2024, at the 7th China International Import Expo(CIIE), Sunwoda advanced the industry's "Battery Passport" project andcollaborated with Siemens to release "Sunwoda Battery Passport Platform- Simens SiTANJI Joint Solutions ", an eco-creation green overseas solution.This platform realizes full-lifecycle value chain management of batterysales, covering carbon footprint accounting, traceability, transparencyand international certification. The development of this solution andvalue-added service aims to support global new energy enterprises insteadily advancing their green low-carbon transformation and achievingsustainable international expansion.
In July 2024, at the EU Battery Passport Standards and Supply Chain Data Technology Seminar hosted by the Industrial and InformationTechnology Bureau of Bao'an District, Shenzhen, and the Bao'an District Enterprise Service Center, PTL collaborated with Catena-X, the ChinaIndustrial Association of Power Sources, and other organizations, to discuss the technical standards for full-life-cycle data managementof new energy batteries under the EUNew Battery Lawand international cooperation, promoting the sustainable development of batterypassport technology and global energy transition.Moreover, Sunwoda has successfully held practical trainings for battery passport generation, issuing battery passports to 12 vehiclemanufacturing enterprises, new energy battery production enterprises, and upstream and downstream companies in the industry chain,thereby enhancing the battery full life cycle management capabilities of the value chain.
In addition, Sunwoda is spearheading the development of China's first group standard for battery life cycle traceability management datarequirements. The Company has engaged in in-depth exchanges with industry peers at multiple international seminars to jointly explore theinternational cooperation and development path of battery passport technical standards. In 2024, Sunwoda vigorously promoted the applicationof battery passports through various means, including hosting practical training for battery passport generation and participating in internationalexhibitions and forums, to enhance the transparency of the global battery value chain.
Advanced Energy Storage SolutionsThe 2024 Government Work Report first proposed developing new energy storage and accelerating the construction of a new energy system."Developing new energy storage" as a "new driving force" for China's economic development has gained widespread recognition, providing a policybasis for the application development of "energy storage +".In the energy storage field, Sunwoda has over twenty years of profound technical accumulation and precise strategic planning. It focuses on five corebusiness segments: power energy storage, industrial and commercial energy storage, residential energy storage, network energy, and smart energy.The Company has successfully offered established solutions for over thirty diverse scenarios, backed by a comprehensive portfolio of successfulimplementations. During the reporting period, the Company vigorously created multi-scenario mobile energy storage solutions and implementedcomprehensive energy storage projects, which not only met the diversified energy needs of economic and social development but also propelled theachievement of "carbon peak and carbon neutrality" goals.
Sunwoda Launches Battery Passport PlatformCase
Sunwoda Diligently Promotes Battery PassportsCase
Sunwoda Selected for the Global Battery Alliance 2024 Battery Passport PilotCase
Sunwoda Joins CATARC ADC Battery ID Task ForceCase
Sunwoda actively engages in global initiatives to foster sustainable and responsible green battery supply chains worldwide. Following itsofficial membership in the Global Battery Alliance (GBA) in 2023, the company has been actively participating in GBA's Battery Passport PilotProgram.Two battery passport projects co-developed by Sunwoda with leading Chinese automakers have been jointly selected as Top 10 Pilot Projectsin GBA's "2024 Battery Passport" initiative. Recognized for their outstanding performance in carbon footprint accounting, supply chaintraceability, and information disclosure, this achievement marks international endorsement of Sunwoda's efforts to advance transparency andsustainability across the battery value chain.
During the reporting period, Sunwoda participated in the 2024 ChinaBattery ID Research Task Force organized by Automotive Data of ChinaCo., Ltd (CATARC ADC), actively contributing to the development of theChina Battery ID Platform. In December 2024, the task force releasedthe first batch of pilot achievements, with the company's pilot projectbeing selected as one of the Top 10 National Pilot Projects. Thismilestone release represents China's inaugural battery ID achievements,establishing new benchmarks for both domestic and global batteryindustries. It marks a groundbreaking step in the digital transformationof China's battery sector, embodying strategic advancements in lifecycletraceability and circular economy practices.
The Global Battery Alliance (GBA) is the first globalbattery association established by the World EconomicForum (WEF). It actively engages in battery passports,traceability systems, andESG-related actions,aiming to create asustainable, responsible,and fair global batteryindustry chain by 2030.
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Sunwoda Smart Energy signed a cooperation agreement for a 400 MW/800MWh shared energy storage project with Zaozhuang High-tech Zone,Shandong. The project will be constructed in three phases, with the firstphase planned to start construction in the fourth quarter of the year andexpected to be connected to the grid and reach production capacity byMay 2025. The project will create an efficient energy use environmentfor Zaozhuang City, helping it to become a model city for low-carbondevelopment as soon as possible.
The project is located in the Sunwoda R&D Base Industrial Park in Guangming District, Shenzhen, covering a total area of approximately 350square meters. It functions as an integrated energy station combining photovoltaic power generation, distributed energy storage, electricvehicle charging, and battery testing services. After the project is completed, the annual power generation is expected to be approximately35,600 kilowatt-hours, saving 14.24 tons of standard coal each year and reducing emissions by 32.04 tons. This project has contributed to theconstruction of Shenzhen "Supercharging City" in Guangming District. A tripartite product form is built with flexible deployment to adapt tomore application scenarios and deliver greater ecological value.
Sunwoda Smart Energy has reached a joint venture cooperation agreement with Zaozhuang High-tech Investment Group Co., Ltd., focusingon the Photovoltaic-Storage-Charging (Swapping)-Testing Smart Station Project. The goal is to build a green, low-carbon, circular economicsystem in Zaozhuang City and empower the development of urban new energy infrastructure. The project is expected to complete theconstruction of no less than 20 photovoltaic-storage-charging-testing smart stations throughout the year, all adopting Sunwoda SmartEnergy's new integrated solutions for photovoltaic power generation, energy storage, charging, and testing. These solutions incorporateSunwoda's flexible liquid cooling supercharging technology, energy storage technology, and intelligent testing technology, providingconvenient supporting services to alleviate the energy replenishment anxiety of new energy vehicle owners in Zaozhuang City.
Sunwoda has established an integrated energy project in the second phase of the Nanjing Park factory, combining photovoltaic powergeneration, distributed energy storage, liquid-cooled supercharging, and battery testing services into one system. The PV-Storage-ChargingMicrogrid System effectively addresses the issue of insufficient distribution capacity through photovoltaic + energy storage peak shaving andvalley filling. Additionally, the supercharging technology, combined with Sunwoda's supercharging batteries, enables a quick 10-minuterecharge, helping to enhance charging speed, reduce range anxiety, and meet user charging needs, supporting "zero-carbon" travel for parkusers. The project is expected to generate approximately 24,000 kilowatt-hours of electricity annually, reducing carbon emissions by 21.6 tons.
Sunwoda has developed multi-scenario mobile energy storage solutions. In 2024, the new "Xinjiyuan" mobile energy storage vehicle waslaunched. As the first liquid-cooled, 10-meter mobile energy storage vehicle with the world's largest capacity in the industry so far, "Xinjiyuan"represents a bold innovation by Sunwoda in the energy storage field, bringing a new path for the development of new mobile energy storage.It is also the first time that liquid cooling technology has been applied to mobile energy storage vehicle systems in the industry, resulting inenhanced safety and reliability.Additionally, the operating temperature range of the "Xinjiyuan" mobile energy storage vehicle is -30°C to 55°C, adapting to various climatesand scenarios. Based on various uninterrupted power supply needs, it can be applied to power supply for non-stop operations in the powergrid, emergency rescue power supply, major event power assurance, peak period highway services, road rescue, and temporary constructionpower supply, providing timely and stable power assurance.
In June 2024, the "Jinhua Wuyi 200MW/400MWh Grid-side Energy Storage Project", the largest grid-side independent energy storage project inZhejiang Province, was successfully commissioned in a single phase, marking the implementation of the first batch of large-capacity energystorage projects in China. This project fully adopts Sunwoda's new Noah x2.0 liquid-cooled energy storage technology. Through this product,the energy storage system will be able to accept grid dispatching. The grid's capacity to integrate renewable energy can effectively alleviatethe intermittency and uncertainty from renewable energy, such as wind and solar, thereby enhancing the grid's flexibility and resilience. Thisachievement lays a solid foundation for building a more stable and sustainable energy ecosystem.
Green Travel SolutionsWith outstanding technological innovation capabilities, Sunwoda continues to launch innovative technologies and products, improving productperformance to meet the stringent requirements of long-distance travel and high-load transportation. It significantly enhances the vehicle's rangeand lifespan, injecting strong momentum into the development of green travel tools and promoting the progress of the new energy vehicle industry.Meanwhile,theCompanyisdevelopinganintegrated"photovoltaicstorage，andtesting"solution,whichcombinesphotovoltaicpowergeneration,energy storage systems, and charging facilities to support zero-carbon transportation business. This solution effectively integrates energy resources,improves energy utilization efficiency, and provides green and convenient charging services for electric vehicles, promoting the transportationindustry's transition to carbon reduction and sustainability.Shenzhen Sunwoda Photovoltaic-Storage-Charging-Testing Integrated Smart StationCase
Zaozhuang Photovoltaic-Storage-Charging (Swapping)-Testing Smart Station ProjectCase
Nanjing Park Photovoltaic-Storage-Charging Microgrid SystemCase
Shared Energy Storage Project in Zaozhuang High-tech Zone, ShandongCase
10-meter Integrated Mobile Energy Storage VehicleCase
Sunwoda Noah x2.0 Liquid-Cooled Energy Storage System Empowers Grid FlexibilityCase
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Green Packaging and Logistics
Sunwoda comprehensively incorporates the concept of carbon neutrality throughout all aspects of park planning, investment, construction,management, and operation. The Company has compiled theSunwoda Zero-Carbon and Near-Zero-Carbon Park Construction and OperationGuidelinesto standardize the construction and implementation of zero-carbon parks. Sunwoda is committed to driving local low-carbontransformation and high-quality development through its zero-carbon park solutions.In 2024, Sunwoda reached a cooperation agreement with the government of Xinye County, Henan Province, to jointly develop a zero-carbonindustry park and promote the construction of energy storage demonstration projects, supporting the zero-carbon development of local industrialproduction. Furthermore, Sunwoda and its subsidiaries have signed agreements for "Source-Grid-Load-Storage Integration" projects in areas suchas Pujiang Jinhua, Boluo Huizhou, Lishui Nanjing, Shifang Deyang. These projects promote applications around zero-carbon park scenarios acrossmultiple regions and industries, extending "energy storage +" applications and helping to achieve carbon reduction goals.
To standardize internal packaging materials management, Sunwoda has established a green packaging lifecycle management system,systematically advancing the low-carbon transformation of packaging materials in accordance with internal documents such as thePackagingDesign Specification. The Company follows the closed-loop management logic of "procurement-production-recycling," continuously optimizingpackaging development, monitoring packaging materials usage during the production phase, promptly identifying and resolving material wasteissues, and advocating for the recycling and reuse of packaging materials.In procurement, Sunwoda prioritizes FSC (Forest Stewardship Council)-certified eco-friendly packaging materials and requires the EU RoHS Directive/HF materials environmental certification labels, ensuring that materials are non-toxic and harmless from the source. At the same time, the Companyhas established inventory classification and coding rules for easy identification, tracking, and statistical analysis by the system, with each packagingcategory and specific material having a unique code. In the internal production stage, Sunwoda prioritizes the use of PP material turnover boxes forintersection turnover, which can be reused multiple times to minimize the loss of packaging materials.
In addition, Sunwoda actively builds a green smart logistics system, prioritizing local procurement to reduce transportation distances and promotelow-carbon transportation of products. In 2024, the Company independently developed the SLS intelligent logistics system. It achieves optimalloading rates in system allocation schemes through technical means, resulting in dual breakthroughs in transportation route optimization andloading efficiency. Regarding the transition to new energy transportation vehicles, the Company systematically implements the replacement ofconventional vehicles with clean energy alternatives, such as electric heavy-duty trucks. In 2024, the Zhejiang production base achieved a significantmilestone with the official launch of a new energy vehicle fleet on two core transportation routes from Lanxi to Suzhou and Changzhou, substantiallyreducing carbon emissions compared to traditional diesel vehicles and contributing to value chain decarbonization. In international logistics,a "Mainland-Hong Kong Truck Pooling + Sea-Rail Intermodal Transport" model was implemented, with 100% of sea transport on certain routesconverted to rail transport at the final delivery stage, decreasing carbon emission intensity per unit of cargo.
In Boluo, Huizhou, Sunwoda has built one of the region's first near-zero-carbon smartparks. The park features rooftop distributed photovoltaic systems, energy storage powerstations, and distributed gas power generation equipment with internal combustionengine power generation capabilities, complemented by a high-efficiency cooling machineroom utilizing water storage and charging piles. Through a digital platform, integratedmanagement and scheduling of "PV, storage, and charging" have been achieved, reducingthe park's overall energy consumption by 10%-20%, with green energy accounting for80% of total energy consumption. This achievement realizes the original research anddevelopment goal of "multi-energy complementarity and integrated optimization," creatingthe region's first "near-zero-carbon smart park."
As the Company's first Carbon Neutral Industrial Park, Sunwoda Lanxi IndustrialPark exemplifies its commitment to green development and efforts to achievelow-carbon and zero-carbon goals. From its initial design, Lanxi IndustrialPark has adhered to the concept of a garden-style low-carbon industrial park,implementing green and low-carbon principles throughout the entire process,from building materials and operation management to energy utilization andgreen production lines. Since commencing operations in 2020, the park hascontinuously optimized digital factory management and intelligent logisticsconstruction, establishing a green energy system of Source-Grid-Load-StorageIntegration. In terms of energy-saving and carbon-reduction technologies,the park promotes water recycling, rooftop distributed photovoltaic powerstations, energy storage facilities, and waste heat recovery, among otheraspects. Among them, the photovoltaic solar panels installed on the rooftopsof the park buildings can generate up to 6.3 million kilowatt-hours of electricityannually. The recovery of waste heat from the production process can reducecarbon emissions by approximately 4,678 tons each year. Additionally, the Parkintroduces external renewable electricity, renewable energy certificates, andcarbon offsets to complement the energy storage system regulation, achieving100% green electricity coverage in the Park.On March 26, 2024, three wholly-owned subsidiaries within the LanxiIndustrial Park (Zhejiang Liwinon Energy Technology Co., Ltd., ZhejiangSunwoda Electronic Co., Ltd., and Zhejiang Xinwei Electronic Technology Co.,Ltd.) obtained PAS 2060 Carbon Neutrality Certification, achieving "carbonneutrality" in 2023.
Sunwoda advances resource recycling and comprehensive utilization, practicing green and low-carbon concepts in packaging, logistics, andrecycling. On the one hand, the Company actively manages sustainable packaging materials and advocates low-carbon transportation of products;on the other hand, the Company is vigorously laying out a battery recycling network to create an intelligent recycling system for retired batteries,driving standardized development in the sector while advancing the industry sustainable development and growth in corporate economic benefits.
In 2024, tailored to specific product characteristics, the Company's Intelligent Hardware Division innovatively developed a de-plasticizationpackaging solution that substitute plastic components with biodegradable materials like paper-plastic inner trays and corrugated partitions.After six standardized tests (drop/vibration/temperature and humidity storage/burst resistance/static pressure/stacking tests), this solutionsignificantly reduces plastic usage per product while ensuring transportation safety.
Zero Carbon Park Solutions
Sunwoda "Near-Zero-Carbon Smart Park" in HuizhouCase
Sunwoda Lanxi Carbon Neutral Industrial ParkCase
Deplasticization Packaging Solution for the Intelligent Hardware DivisionCase
Green Packaging, Logistics, and Recycling
End-of-Life Stage
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In recent years, driven by the global sustainable development concept, policy standards forbattery recycling have become increasingly stringent in both the international and domesticenvironments. Relevant policies such as theEU Batteries and Waste Batteries Regulation andthe Interim Measures for the Management of Recycling and Utilization of Power Batteries forNew Energy Vehicleshave established higher requirements for the standardization and scaleddevelopment of battery recycling.In response to policy requirements and precisely aligning with market demands, Sunwodahas established a material recycling company and strategically deploying battery recyclingcapabilities. The Company provides comprehensive services, including lithium battery recyclingoperations and lithium material monitoring, meeting customer requirements for battery lifecycle management. Sunwoda aims to ensure 100% compliance with the recycling requirementsof theEU Batteries and Waste Batteries Regulationfor all batteries exported to the EuropeanUnion, including SLI batteries, LMT batteries, industrial batteries, and electric vehicle batteries.With its advanced recycling system and efficient, intelligent disassembly technology, the materialrecycling company has achieved efficient utilization and recycling of end-of-life batteries.Sunwoda is committed to creating a large-scale ecological circular model strategically centeredon the circular economy model of "mining-production-use-recycling". This model forms a closed-loop process from raw materials to recycling and reuse, minimizing resource consumption andenvironmental pollution. Starting with key metals such as nickel (Ni), cobalt (Co), and lithium(Li), the Company employs chemical metallurgy technology to purify and synthesize precursormaterials required for battery anodes and cathodes, processes them into electrode materials,and assembles them into standardized cell units. These are integrated into battery PACKs andsystems through modular design to meet end-user application needs. After battery systemretirement, precious metal components are recovered through physical disassembly andchemical extraction technologies, regenerated into precursor raw materials, and reintegratedinto the production process, achieving a closed-loop resource flow. Sunwoda is also committedto developing a small circular system for lithium battery products, forming a closed-looprecycling industry chain through comprehensive management of battery design, production,sales, and recycling processes. This system deeply integrates the circular economy concept withindustrial development through vertical industrial chain collaboration and horizontal ecologicalcompliance requirements, assisting the Company in transitioning from a linear economy to asustainable circular economy.
Small-scaleClosed-loopSystem for LithiumBattery
Chemical Metallurgy
Raw materials
Co/Li/NiRecycling Loop
PrecursorPACK/Systems
Cathode materialsCell
Sunwoda BatteryLifecycle Ecosystem
At the technical level, Sunwoda is replacing manual operations with machine automation to achieve an intelligent and flexible disassembly of end-of-life power batteries. By innovating intelligent pre-treatment processes, disassembly efficiency is improved and costs are reduced. The Companyhas developed innovative extraction processes to enhance material recovery rates, simplify extraction procedures, and lower costs. For example,the Company uses leachate from recycled materials as the raw material to re-prepare precursors, thereby avoiding unnecessary separation andpurification steps. Additionally, the Company actively develops cutting-edge battery recycling technologies, strengthening the diversified applicationof both physical and hydro-metallurgical recycling. Through technologies such as vacuum low-temperature drying, cathode material repair andregeneration, and solid-phase extraction techniques, it meets market demands for efficiency, environmental protection, rapid processing, and lowenergy consumption, contributing to battery life cycle management.Sunwoda's current battery recycling adopts the "1+N+X+Y" model. The Company actively deploys its recycling sector nationwide to align with therelevant needs of the industrial chain. Based on advanced technology research and development, it has formed a pyramid layout centered on large-scale regeneration factories, local physical disassembly plants, and recycling points, radiating across the national battery industry chain.
headquarter andR&D center51050
Recycling and Circular Economy
Shenzhen Guangming R&D Center
Domestic R&D and Manufacturing Base
Manufacturing BaseTesting and R&D Center
Moreover, in the battery recycling field, Sunwoda actively participates in drafting multiple industry standards, committed to enhancing thetransparency and standardization of the battery recycling industry. Through continuous technological innovation and practical exploration, it injects"Sunwoda vitality" into the sustainable development of the battery recycling industry and contributes "Sunwoda strength" to the future advancementof green energy.
Jiangxi Physical Processing Base
Shandong Physica BaseShandong NCM Wet Process BaseJiangxi LFP Wet Process Base
Mass production achievedMass production scheduledMass production scheduledMass production scheduled
Battery Design
Battery Production
Battery Sales
Battery Recycling
Battery life monitoringFeedback loop for productdesign optimization
Battery material recyclingBack into production asfeedstock
recycling plants
physical dismantlingplantsrecycling points
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Pioneer R&D Innovation
To meet diverse customer needs and to create full-lifecycle green products, Sunwoda continuously develops new quality productive forces, enhancesR&D capabilities, improves innovation abilities, and reinforces intellectual property protection. Through these efforts, the Company meticulouslydesigns a series of green products and solutions that lead the industry towards green, low-carbon development, injecting new vitality into themarket.
Sunwoda is customer demand-oriented and innovation-driven, dedicated to providinggreener, faster, and more efficient integrated solutions for new energy through its technologicaladvantages and resource accumulation, contributing to global green and low-carbondevelopment.The Company possesses robust R&D capabilities, with an advanced and comprehensive R&Dframework and management structure that ensures R&D innovation through substantialinvestment. In 2024, Sunwoda's investment in research and development reached RMB 3.33billion, with R&D investment accounting for 5.94% of main business revenue, 91.8% R&Dinvestment dedicated to clean technology development. Sunwoda has built an exceptional R&Dtalent pool. As of the end of the reporting period, its R&D team comprised 8,389 professionals,including 134 doctoral and 1,541 master's degree holders, many of whom are recognized ashigh-caliber talents in Shenzhen.Externally, the Company cultivates an open innovation ecosystem, facilitates technologicalexchange and cooperation, and partners with various stakeholders to advance the clean energytransition. Internally, Sunwoda is committed to fostering a culture of innovation, inspiringemployee creativity, and collectively driving technological innovation and development,contributing to a sustainable and harmonious future for all.
Forging R&DCapabilities
Sunwoda has built a complete R&D system for the whole battery industry chain. The company has built five R&D teams for consumer products, powercell research institute and power battery system, energy science and technology battery, intelligent hardware, energy storage research instituteand intelligent manufacturing, focusing on the three major fields of consumer batteries, power batteries and energy science and technology, andbringing a series of innovative achievements for the industry, including “flash charge battery 3.0”.Sunwoda continuously enhances its innovation ecosystem construction and actively carries out innovative research and forward-looking exploration.The Company's innovation ecosystem encompasses the entire value chain, from upstream materials to downstream recycling. Sunwoda alsointegrates technologies such as green, intelligent manufacturing, and AI to empower new industrialization, achieving energy conservation, resourceefficiency, productivity enhancement and profitability improvement in R&D across fields such as technological infrastructure, industry applications,equipment products, and support systems. In core areas such as material systems, system structures, and green manufacturing, the Companyadheres to independent innovation and is committed to developing more competitive products and technologies.
R&Dinvestment（RMB100million）R&D personnel No. (Person(s))Proportion of R&D personnel (% )
202220232024
27.4227.1133.308,3648,4428,389
18.6517.7915.45
Optimizing the R&D Framework
Three Key Areas of Innovation R&D
Sunwoda continues to enhance the in-house productionsupply rate of battery cells in the consumer battery field.The Company has mastered core technologies such asfundamental charging and discharging protection andintelligent management of battery parameters throughindependent R&D. Its independently developed powermanagement system has already been applied to mobilephone batteries and notebook computer batteries.Furthermore, the Company has successfully developedhigh-capacity, high-voltage mobile phone batteries, a newgeneration of fast-charging PC batteries, and silicon anodeconsumer batteries with 5~10C fast charging capabilities.
Sunwoda has launched integrated solutions such as CTP, CTB,and CTC in the research and development of power batteriesto meet the diverse needs of end customers. The Companyhas introduced a "fast charging battery" compatible withboth 800V high voltage and 400V standard voltage systems,achieving mass production and commercial applicationof ultra-fast charging 4C battery products. With proven 5Cbattery mass production and partnerships with leadingautomakers, the company is positioned to dominate thehigh-power EV market, as evidenced by its 6C battery rollout,maintaining parity with industry-leading standards in lithiumiron phosphate 4C batteries.
Sunwoda's energy storage products are continuously upgrading, with its leading product portfolio covering grid energy storage,residential energy storage, and commercial & industrial energy storage. The Company has mass-produced 314Ah/280Ah batteries,which can ensure a reliable and safe operation of power stations and commercial energy storage facilities for up to 20 years.Additionally, the Company is accelerating R&D in energy storage products and has reached comprehensive cooperation withSuzhou PotisEdge and Tongkun Holding Group in the fields of energy storage cells and distributed photovoltaic energy storageand charging systems.
Comsumer BatteryPower Battery
Energy Techonolgy System
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Sunwoda's self-developed "AI Intelligent Tuning System" has been recognized by the Ministry of Industry and Information Technology anddesignated as the national "Outstanding Case of AI Empowering New Industrialization". The system achieves intelligent tuning of productionequipment through data-driven deep learning, enhancing the scientific rigor, efficiency, and reproducibility of the tuning process. Thisinnovation demonstrates Sunwoda's substantial expertise and innovative capabilities in the field of artificial intelligence.
Sunwoda's Self-developed "AI Intelligent Tuning System"Case
Consumer Battery R&D Team
Intelligent Manufacturing R&D Team
Energy Storage R&D Team
Centered on battery research and development for consumer products,the team is responsible for the development of batteries and their controlsystems, power management systems and associated software, as well asbatteries for smart terminal products. Through independent research anddevelopment, the team has mastered core technologies in battery safetyprotection and monitoring, as well as intelligent management of batteryparameters, and holds leading-edge capabilities in the development andmanufacturing of consumer lithium-battery modules within the industry.Its product range includes batteries for mobile phones and digital devices,laptop computers, power tools, portable power banks, electric bicycles,electric scooters, motorcycles, wireless earbuds, robotic vacuum cleaners,smartwatches, drones, speakers, and additional portable power banks.
Smart Hardware R&D TeamCentered on lithium-battery-powered intelligent hardware productiontechnology, the team is responsible for the development of productionlines for intelligent hardware products, such as VR wearable devices,all-in-one VR systems, drones, electronic pens, smart speakers,translation devices, self-balancing scooters, storytelling robots, andcleaning appliances for household use.
Centered on lithium-battery production automation technology, theteam specializes in the research and development of automatedproduction lines and equipment related to battery manufacturing.Their products encompass manufacturing lines for consumerelectronics lithium-battery cells, automotive power cells, modules,and PACKs, as well as associated laser welding equipment. Theteam boasts robust capabilities in full-factory automation design,development, integration, and implementation.
Centered on lithium-battery energy storage integration andapplication technology, the team is responsible for developing energystorage product solutions for various applications, including gridenergy storage, industrial and commercial energy storage, residentialenergy storage, network energy, and smart energy. Additionally, theteam provides solutions for two business scenarios: the "source-grid-load-storage cloud" integrated zero-carbon park and the "PV-storage-charging-testing" integrated zero-carbon mobility. Theterminal products encompass industry-leading offerings such aslarge-capacity energy storage systems, mobile energy storagevehicles, high/low-voltage stacked residential energy storage all-in-one units, high-voltage backup power systems for data centers, andultra-high-power flexible charging systems.Power Cell and Power Battery System R&D Team
Centered on advanced lithium-battery integration technology, the team isresponsible for providing battery PACK solutions for electric vehicles (EVs)of various types, including HEV, BEV, EREV, and PHEV, for new energy vehiclemanufacturers. The team focuses on innovations in chemical systems,structural design, and ensuring safety throughout the entire lifecycle,continuously researching and developing new technologies such as 6C/8Cflash charging, silicon-based anodes, lithium manganese iron phosphate(LMFP), sodium-ion batteries, solid-state batteries, and lithium-metalbatteries. Its products encompass power cells, power battery modules,battery management systems (BMS), and power battery systems.
Five MajorR&D Teams
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In March 2024, the 15th China Industry-University-ResearchCooperation Innovation Conference was held in Beijing,recognizing outstanding organizations and individualswho made significant contributions to thedeep integration of industry, university,and research in 2023. The project titled"Key Technologies and Applicationsof Composite Phase Change Materialsfor Thermal Safety of Power BatterySystems," jointly undertaken by Sunwoda,Guangdong University of Technology,and other partners, was awarded the"First Prize of the 2023 China Industry-University-Research Cooperation InnovationAchievement Award".
Cultivating a Culture of Innovation
Sunwoda continuously strengthens its R&D innovation network. The Company has developed a diversified and open R&D model, activelycollaborating with upstream and downstream partners and research institutions while continuously introducing external innovative resources tostimulate innovation vitality. In the realm of industry-university-research cooperation, Sunwoda has established partnerships with several well-known universities to promote breakthroughs and innovations in related fields.
Sunwoda is dedicated to cultivating a culture of innovation by enhancing R&D momentum and encouraging employees to maximize theirinnovative capabilities. The Company has established innovative incentive frameworks, such as theManagement Regulations on Innovation andthe Management Regulations on the Reward for Technical Innovation, to foster a favorable innovative atmosphere. Additionally, Sunwoda hasintroduced a series of awards, including Patent Master, Technology Star, Improvement Award, and Innovation Award, to honor individuals and teamswho have achieved outstanding accomplishments in their work this year, thereby motivating and stimulating employees' innovative enthusiasm andpromoting technological advancement.Sunwoda has jointly established a postdoctoral innovation practice base with South China University ofTechnology and was approved by the Human Resources and Social Security Department of GuangdongProvince to set up a postdoctoral research workstation in 2013.The Company's postdoctoral researchers maintain close ties with universities and research institutions.Since the establishment of the workstation, Sunwoda has collaborated with several prestigious domesticuniversities, including Tsinghua Shenzhen International Graduate School, South China University ofTechnology, University of Science and Technology of China, and Dalian University of Technology, recruiting atotal of 85 researchers. Currently, 78 postdoctoral researchers have completed their programs, while sevenremain active. Among them, 18 have been recognized as Category C high-level overseas talents in Shenzhen,and two as reserve high-level talents in Shenzhen.Sunwoda has collaborated with universities to establish several joint laboratories. For example, the Sunwoda-South China University of Technology Joint Laboratory for Advanced Energy Storage Technology mainlyfocuses on cutting-edge energy storage technologies. Nankai University-Sunwoda Joint Laboratory forAdvanced Battery focuses on core materials and technologies for sodium-ion batteries. Dalian University ofTechnology Sunwoda Joint R&D Center concentrates on carbon neutrality innovation technologies amongothers.As of the end of the reporting period, Sunwoda has undertaken strategic research collaborations withnumerous prestigious domestic universities and research institutions, including Songshan Lake MaterialsLaboratory, Peking University, Tsinghua Shenzhen International Graduate School, Beijing Institute ofTechnology, Sun Yat-sen University, South China University of Technology, Dalian University of Technology, andCentral South University. These partnerships span multiple technical domains, including battery thermal safetytechnology, battery materials, and hydrogen energy, and other critical areas.
Postdoctoral ResearchWorkstation
Industry-University-Research CooperationPlatform
The collaborative project "Key Technologiesand Equipment for Photovoltaic-EnergyStorage Thermal Hazard Protection,"participated by Sunwoda, won the firstprize in the China Electricity Science andTechnology Award - Technology ProgressAward in 2024. The project, led by ShanghaiJiao Tong University and in partnership withSunwoda, mainly addresses the thermalhazards induced by the interactive effectsduring the grid integration process ofphotovoltaic-storage systems, providingsafety assurance for the development of thephotovoltaic and energy storage industries.The Company also strengthens cooperation with upstream and downstream partners. In 2024, Sunwoda Power Technologysigned the Strategic Cooperation Framework Agreement on Solid-State Batteries with XTC New Energy Materials (Xiamen)Co., LTD. The agreement is aimed at establishing a deep strategic partnership, taking advantage of both parties' market andtechnological strengths in their respective fields, and promoting the industrialization and implementation of a series of newenergy battery materials for solid-state batteries.
On November 22, 2024, the finals of Sunwoda's Second InnovationCompetition, themed "Creating Boundless New Future", were held inthe multimedia hall of Longtian School. The competition attracted104 innovative project proposals from various departments,spanning multiple fields such as battery research and development,intelligent manufacturing, material innovation, and energy storageapplications. The projects - categorized into product innovation,equipment innovation, and material innovation - facilitated in-depthsharing and exchanges among subsidiaries.Sunwoda attaches great importance to intellectual property protection and has establisheda sound intellectual property management system to safeguard its brand reputation andcompetitive advantage while preventing infringement on others' intellectual property.The Company has formulated institutional documents such as theManagement Regulations onIntellectual Property Risks, the Management Regulations on Trademarks, and theManagementRegulations on Patent Acquisition, implementing standardized management throughout theentire process of intellectual property creation, management, application, and protection. Duringthe reporting period, Sunwoda revised theManagement Regulations on Intellectual PropertyRightsto encourage technological innovation and its application and protection, improve patentoutput quality, and cultivate high-value patents.The Company regards enhancing patent competitiveness as an important part of its futurestrategy, widely promoting patent awareness to ensure every employee thoroughly understandsthe significance of patents to the Company's competitiveness. In 2024, the Company conducted43 specialized theme training sessions, providing training on relevant themes for personnelin research and development, intellectual property, marketing, and project management toenhance their intellectual property literacy and professional capabilities.Sunwoda is strengthening its construction of the patent risk prevention system. Regardingrisk incident response mechanisms and processes, the Company has established a rapidresponse and efficient emergency mechanism to ensure timely and effective measures in patentdisputes, thereby minimizing potential losses. Concurrently, the Company has achieved unifiedmanagement and optimized allocation of internal and external resources, ensuring that allresources can be fully utilized in patent risk prevention and control. Sunwoda also actively recruitsinternational expertise to improve its patent risk management and its global intellectual propertyrisk response capabilities.During the reporting period, the Company achieved outstanding results in intellectual property.The number of domestic and international patent applications continued to demonstratestrong growth. By the end of the reporting period, the cumulative number of domestic patentapplications reached 7,265, and the cumulative number of PCT international patent applicationsreached 148, with clean technology-related patents amounting to 5,812. Furthermore, theCompany has also made significant achievements in domestic and international trademarkstrategy, further consolidating Sunwoda's brand influence and market position, with 321registered trademarks in China, 64 international registrations, and 8 Madrid System trademarks.
Intellectual PropertyProtection
Collaborative Project Won the First Prizein the China Electricity Science andTechnology Award - Technology ProgressAward
CaseReceived the China Industry University-Research Cooperation Innovation AchievementAwardCase
"Creating Boundless New Future" - Sunwoda's Second Innovation CompetitionCase
Fostering an Innovative Ecosystem
How to Protect Innovation withPatents, Patent Risk Prevention andResponse Strategies
Patent Invalidity and Litigation inthe Battery Sector, Fundamentals ofPatents and Trade Secrets
Patent Basics, Utilization of PatentInformation, Patent Risk Investigationand Response, High-Value PatentMining and Layout in TechnologicalInnovation, High-Value PatentTraining
Marketing and ProjectManagement Personnel
Intellectual PropertyPersonnel
R&D Personnel
Key Personnel
Key Personnel
Key Personnel
Training Themes
Training Themes
Training Themes
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Response to SDGs:
Key ESG Topics in this Chapter:
Addressing climate changeEnvironmental compliance managementEnergy management and utilizationResource management and circular economyEmissions and waste managementBiodiversity conservation
Environmentally Friendly,Green ManufacturingGuided by its vision of "becoming a respected world-class new energy enter-prise", Sunwoda is actively undergoing a green transformation, continuouslystrengthening its green development e?orts, and is committed to providinggreener, faster, and more e?cient new energy solutions for society. Sunwodaproactively responds to climate change, practices clean production, and contin-uously promotes energy conservation and emission reduction across its entirevalue chain, striving to minimize environmental impact at every stage andcontributing to the global transition toward a cleaner, more sustainable future.
ECOLOGY
Addressing Climate Change
Sunwoda, adhering to its core vision of green development, is dedicated to the national goals of "carbon peaking and carbon neutrality". TheCompany deeply embodies the development philosophy that "lucid waters and lush mountains are invaluable assets" and integrates climate changeresponse into every aspect of corporate operations, taking comprehensive measures to proactively explore innovative pathways for sustainabledevelopment.
Sunwoda actively responds to the "carbon peaking and carbon neutrality" strategy and continuouslyimproves the construction of the "dual carbon"(carbon peaking and carbon neutrality) managementframework. A comprehensive "dual carbon" management system has been established based onthe ESG governance framework, with a three-tier management structure consisting of the Strategyand Sustainable Development Committee, the Sustainable Development Management Committee,and the ESG Management Department. Through this system, Sunwoda actively collaborates withspecialized project teams and sustainability departments/teams across business sector to implementclimate change management responsibilities. The Company employs a top-down approach to drivethe achievement of its dual carbon goals. Members of Sunwoda's climate-related governance bodypossess specialized expertise in climate policy and sustainable development. The company's VicePresidentandChiefSustainabilityOcerhasparticipatedinmultipleinternationalclimatechangeconferencesandacademicexchanges,providingscienticandprofessionalguidanceanddecision-making support for the organization's climate governance initiatives.To comprehensively manage climate change-related initiatives, Sunwoda has developed internalmanagement frameworks such as the Sunwoda Action Plan for Carbon Peaking and Carbon Neutralityand the Sunwoda Organizational Level Carbon Emission Management Manual, based on strictcompliance with relevant laws and regulations such as the Energy Law of the People's Republicof China and the Environmental Protection Law of the People's Republic of China. These systemsstandardizeSunwoda'sworkowsandstandardsforclimatechangeresponse,encompassingthe complete carbon management cycle from planning and implementation to monitoring andimprovement, closely aligning with the Company's overarching goals of "carbon peaking and carbonneutrality" and enhancing its core competitiveness in the low-carbon economy. Each subsidiary alsoactively responds to the Company's directives. For example, Zhejiang Liwinon prepared and publishedthe Greenhouse Gas Emission Reduction Management Regulations in 2024, further providing practicalguidelines for Sunwoda's greenhouse gas management initiatives.
Asacompanycommittedtocorporatesocialresponsibilityandsustainabledevelopment，Sunwondarmlybelievesinitsresponsibilityandcapability to address climate change and achieve the goals of "carbon peak and carbon neutrality". Based on its overall business and sustainabledevelopmentstrategies,theCompanyactivelyidentiesclimate-relatedrisksandopportunities,formulatesclimateactionstrategies,andenhancesclimate resilience. At the same time, guided by the Science Based Targets initiative (SBTi) and in conjunction with its own business situation andfuture development expectations, Sunwoda proactively formulates science-based carbon targets and decarbonization pathways, demonstrating itscommitment to emission reductions.
Strategy
Governance
timesQuarterly meetings ofsustainable development:
timesMeetings of Sustainable DevelopmentManagement Committee:
timesOnlineandOineSustainableDevelopment-related Trainingsessions:
2024
Aligned with its "carbon peaking and carbon neutrality" goals, Sunwoda has enhanced action plans in eight strategic areas: industrial layout, energystructure,energyconservationandemissionreduction,carbontradingandosets,operationalmanagement,digitaltransformation,pollutionandcarbonreduction,andcapacitybuilding.TheCompanyhasidentied30specicmeasurestocomprehensivelystrengthenitsclimatechangeresponse capabilities and assist in decarbonization across the value chain.
Signicant Climate Risks and Opportunities
Responses to Climate Challenges and Opportunities
Acute Risks
Chronic Risks
The frequency and severity of extreme or acute weather events caused by climate change—suchashurricanes,extremerainfallandsnowfall,oods,andhightemperatures—maythreateninfrastructureandxedassets,suchasthemanufacturingfacilitiesofSunwodaanditssubsidiaries. These events can lead to asset damage and depreciation, increased maintenancecosts and insurance expenses, supply chain disruptions, and workforce constraints.Ataresult,thesefactorscouldcompromisetheCompany’sabilitytofulllitsobligationsandcauseaseriesofdirectorindirectnanciallosses.
Against the backdrop of increasingly stringent global carbon reduction policies, majormarkets such as Europe, North America, and East Asia are accelerating their carbon neutralitycommitments. For example, theEU Battery and Waste Batteries Regulationand other relatedpolicies impose stricter requirements on carbon footprint disclosure, product recycling, andsustainable supply chains. Concurrently, China's ongoing promotion of its "carbon peakingand carbon neutrality" objectives will also impose more stringent regulations and higheremission reduction pressures on the battery industry. Consequently, companies in this industrymay encounter higher compliance costs for carbon emissions. In this evolving landscape,Sunwoda's key customers are progressively raising their requirements for green manufacturingcapabilities, production processes, and product carbon footprint disclosure. The Company must,therefore, allocate additional resources to meet these compliance requirements and maintain itscompetitiveness in the green supply chain.Confronting climate change challenges, Sunwoda, as a key player in the new energy industry,can seize development opportunities by providing green products, optimizing low-carbon supplychains, facilitating energy transition, and driving technological innovation. These strategiesinclude developing lifecycle-based green solutions, integrating renewable energy throughoutthesupplychains,enhancingenergyeciency,andincreasingclimateresilience.TheCompanycontinues to drive production process innovation, develop next-generation battery technologies,and optimize intelligent battery management systems to further secure its competitive advantagein the power battery and energy storage markets. In addition, Sunwoda should actively enhanceinformation transparency, regularly disclose progress on climate change-related initiatives, andmaintain communication and collaboration with stakeholders to jointly promote the developmentof a green industrial chain in the future.
Chronic climate risks such as rising average temperatures, prolonged droughts, and rising sealevelscausedbyclimatechangemayadverselyaectthephysicaloperationsandequipmentlifespan of Sunwoda's production bases located in climate-vulnerable, water-stressed, andlow-altitude areas. These impacts include increased utility costs, higher cooling expenses, andaccelerated equipment deterioration under high temperatures, leading to elevated operatingcosts and potentially undermine the Company's operational stability.
Physical Risks
Transition Risks
Transition Opportunities
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Toeectivelyadvanceitsclimatechangeinitiatives,SunwodastrictlyfollowstheGreenhouseGasProtocol (GHG Protocol) and the relevant requirements of ISO 14064-1:2018, formulating internalmanagement systems such as the Carbon Emissions Management Manual at the OrganizationalLevel. The Company regularly conducts greenhouse gas inventory assessments for Scope 1, 2, and3acrosstheGroupanditssubsidiariesandentruststhirdpartiesforindependentverication.Thepractices set a benchmark for carbon management in the industry. In 2024, Sunwoda obtained atotal of 21 ISO 14064 declarations, covering 100% of its stable operating production bases.In addition, to enhance the Company's ability to collect and calculate greenhouse gas emissionsand carbon footprint data, Sunwoda organized the "Carbon Footprint Data Collection,Accounting, and Application Training" in 2024, with 170 carbon management personnel engagedin this single training session, to further solidify the foundation of the Company's carbonmanagement.Atthesametime,Sunwodaactivelyfulllsitscarboncomplianceobligations.Sincebeingincorporated into the Shenzhen carbon market as a regulated entity, Sunwoda has completedcarbonverication,carbonquotatrading,andcomplianceworkinahigh-qualitymannerfor11consecutive years. In the most recent compliance cycle, the carbon intensity per unit of industrialadded value in its regulated facilities decreased by 9% year-on-year, with a surplus of 8,070 tonsof CO
in carbon quotas. Both Sunwoda Electronic Co., Ltd. and Shenzhen Sunwinon ElectronicCo.,Ltd.successfullyfullledtheirannualcarboncompliancerequirements.
Carbon Emission Managementthe carbon intensity per unitof industrial added value inits regulated facilities sawa year-on-year decrease of9%
a surplus in carbon quotastotaling
8,070
tons of CO
In September 2024, Sunwoda organized the "Greenhouse Gas Emission Management Training", providing systematic training to relevantdepartments on data collection and management considerations for greenhouse gas inventory and auditing, and enhancing employees' datamanagement abilities and analytical awareness. The training also analyzed and illustrated the requirements related to the EU Battery andWaste Batteries Regulation, helping employees further understand the latest industry dynamics.
Sunwoda Value Chain Decarbonization Path
☉Emission Scope ☉Emission Reduction Path
As early as 2022, Sunwoda released the Sunwoda Action Plan for Carbon Peaking and Carbon Neutrality,and has been progressively enhancing its dual carbon management system. Meanwhile, as a member ofthe Science Based Targets initiative (SBTi), Sunwoda upholds its corporate vision of becoming "a respectedworld-class new energy company", strictly follows the carbon peaking and carbon neutrality declarationas well as the SBTi commitment to limit global warming to 1.5°C. The Company methodically executes itsoperations according to established emission reduction pathways. In 2024, Sunwoda set emission reductionobjectives for Scope 1, Scope 2, and Scope 3 based on the 2023 data, and internally cascaded these targetswith direct links to senior executive performance. Concurrently, the Company conducts SBTi (bi-) weekly andmonthly meetings to track the progress of emission reduction work, ensuring the implementation of variousmanagement measures.
Indicators andGoals
Sunwoda actively carries out climate change risk management and progressively incorporates it into theoverallriskmanagementsystemoftheCompany.Itidentiesclimaterisksandopportunitieswithsignicantpotentialimpactsandclariestheirspeciccategoriesandeectsbythoroughlyanalyzingitsbusinesscharacteristics, evaluating internal and external environments, and incorporating expert insights. These arecategorizedandevaluatedfortheirparticulareects,withclimateriskfactorsintegratedintocorporateriskcontrol mechanisms. Dedicated personnel maintain ongoing communication with business units to identifyand preliminarily assess climate-related risks, regularly coordinating with the Company's risk managementresponsible team. For key risks and opportunities, Sunwoda comprehensively assesses their impacts on assetvalue, production and operation, product services, market layout, etc., and then takes proactive measures toimprove risk management and capitalize on low-carbon opportunities.
RiskManagement
Greenhouse Gas Emission Management TrainingCase
Electricationof
Equipment
Reduction of Fossil Fuel
Use
Selection of Low-CarbonRefrigerants and FireExtinguishersScope 1
Promotion of Energy-Saving TechnologicalUpgrades
Procurement of Green
Electricity and GreenPowerCerticates
Development of Renewable
Energy ProjectsScope 2
Utilization of Renewable
Materials
Support for Suppliers' Low-
carbon Development
Replacement of New Energy
Transportation EquipmentReduction in High-Carbon Transportation
RatioOptimization in Transportation
EciencyScope 3
? To achieve operational-levelcarbon peaking by 2029? To achieve operational-level
carbon neutrality by 2050
? To add 1.38GWp of photovoltaic
installed capacity before 2040? To achieve 100% renewable
energy use before 2050
? By 2030, to help reduce socialtransportation carbon emissionsby 6.84 million tons? By 2040, to help reduce socialtransportation carbon emissionsby 42.37 million tons
Sunwoda's "Carbon Peaking andCarbon Neutrality" Goals:
Clean Energy Transition
Goals:
Support for Social CarbonReduction Goals:
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20232024
880,010.62872,270.66982,970.59982,488.44
20.5417.54
102,959.97110,217.78
During the reporting period, LanxiIndustrial Park and Yichang IndustrialPark passed PAS 2060 carbon neutralitycertification, collectively obtaining 4certifications, thereby becoming amongtherstindustrialparkstoachievecarbonneutrality.
In product carbon footprint management, Sunwoda has introduced a digital carbon footprint accounting platform to collect and account for carbonfootprint data of key products.
Sunwoda strictly adheres to the Energy Law of the People's Republic of China, the Energy ConservationLaw of the People's Republic of China, the Renewable Energy Law of the People's Republic of China, andother laws and regulations, continuously improving its energy management system and implementingenergy management practices company-wide. To systematically carry out energy conservation and carbonreductioninitiativesandeectivelypromotetheCompany's"carbonpeakingandcarbonneutrality"plan,Sunwoda has established an Energy Conservation Committee chaired by the Chairman. This committeedrivestop-downenergyeciencyimprovementinproductionoperationsandoverseesenergy-savingtechnologicaltransformationprojects.In2024,SunwodafurtherrenedtheorganizationalstructureofitsEnergyConservationOcebyestablishingspecializedteamsforenergyconservationmanagement,systemcompliance,andenergyconservationtechnologytopromoterenedenergymanagementandempower business units to enhance lean production capabilities. On this basis, Sunwoda regularly optimizesand improves the construction of the energy management system according to the PDCA operation cycleprinciple,implementingacontinuousimprovementprocessthroughgoalplanning,eectiveproceduralimplementation, internal audit checks, and systematic enhancements. In 2024, an additional 8 subsidiariesunderSunwodapassedISO50001energymanagementsystemcertication.
Product Carbon Footprint
Optimizing EnergyManagementFramework
100%
Obtained ISO 14067 productcarbonfootprintcertication:
companiescertiedinenergy managementsystems.
ISO14001certicationcoverage across matureproduction facilities:
subsidiaries passedprovincial-level "GreenFactory"certicationsubsidiaries applied tobe designated as cleanproduction factoriesReceived honors such as"Zhejiang Provincial GreenFactory", "Huizhou Waste-FreeFactory" and "GuangdongOutstanding ContributionEnterprise for Carbon Reductionand Pollution Control".
Carbonfootprintlabelcerticationinthe Guangdong-Hong Kong-MacaoGreater Bay Area:
Practicing Green Production
A robust environmental management system is central to a company's practice of green production.Sunwoda strictly complies with the Environmental Protection Law of the People's Republic of China andother national laws and regulations and formulates internal environmental management systems such asthe Environment, Health, and Safety Manual, the Environmental Pollution Control Management Regulations,and the Environmental Pollution Prevention Management Regulations in line with the relevant requirementsof ISO 14001, ensuring a standardized and orderly conduct of environmental management work. In 2024,Sunwoda's25majorsubsidiariespassedISO14001environmentalmanagementsystemcertication,achieving 100% coverage across all stably operating production facilities. Other newly established or under-construction manufacturing facilities are also actively developing environmental management systems inaccordance with ISO 14001 requirements.To comprehensively monitor and evaluate its environmental management performance, Sunwoda regularlyconducts internal and external environmental audits. The Company has established objectives to ensure thatall production activities at mature operational manufacturing facilities fully comply with local environmentallawsandregulationsandobtainenvironmentalmanagementsystemcertication.Annually,theCompanyperforms an internal environmental audit that encompasses 100% of the production bases in all businesssectors, to assess the environmental impact of production operations. To ensure the comprehensiveness andobjectivity of the environmental audits, Sunwoda also regularly entrusts third-party organizations for externalaudits. These include at least one annual sampling audit of the environmental impact for each businesssector and a full-coverage audit across all business sectors every three years.Based on this foundation, Sunwoda places great emphasis on the proactive management of environmentalperformance. The Company links the quarterly performance bonuses and year-end bonuses of personnelat the level of general manager and above to environmental performance, allocating a 5%-10% weightingto environmental performance indicators. Monthly and quarterly performance assessments motivateemployees to implement environmental compliance measures.To boost employees' awareness of environmental compliance and management, the Company regularlyorganizes trainings for environmental engineers across all parks. These training sessions addressenvironmentallawsandregulations,environmentalfactoridentication,systeminternalaudits,andotherrelevant topics. Environmental engineers in each park will subsequently act as internal trainers, responsiblefor educating safety management personnel in each business unit to fully implement the core concepts andoperational processes of the environmental management system.Sunwodaemphasizesenergyeciency,continuouslyoptimizingtheenergymanagementsystem,adoptinginnovative energy-saving technologies, and enhancing energy-saving awareness to improve energyutilizationeciency.
EnvironmentalManagementSystem
EnergyManagement
Scope 1 Indicator (tons of CO2 equivalent)Scope 2 Indicator (tons of CO2 equivalent)Scope 3 Indicator (tons of CO2 equivalent)GHG Emission Intensity (tCO2 e/million revenue)
2024
20242024
products products
Under the guidance and support of the Electronic Information Department of the Ministry of Industry and Information Technology, China'sLithiumBatteryCarbonFootprintAccountingSystemV1.0hasbeenociallyreleased.Asaparticipatingdraftingenterprise,Sunwodadeeplyengagedintheresearchworkofthissystem.ThisrepresentsChina'srstcarbonfootprintaccountingsystemforaspecicindustrysubsector,encompassing multiple critical elements including lithium battery carbon footprint calculation methodologies, standard frameworks, andbackgrounddatabases,holdingsignicantimportanceforadvancingresearchonlithiumbatterycarbonfootprintaccountingmethodsandenhancing service capabilities within the industry.Building upon this foundation, participating drafting entities have developed the Lithium Battery Carbon Footprint Background DatabaseV2.0. Through this database, enterprises can accurately assess their products' carbon emission levels, formulate targeted emission reductionmeasures, and improve both the low-carbon performance and market competitiveness of their products.
Lithium Battery Carbon Footprint Background DatabaseCase
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At the same time, Sunwoda prioritizes the establishment of energy-saving goals, adopting a strategic approach that begins with long-termobjectivestoecientlyadvanceenergymanagementinitiatives.TheCompany'senergy-savingmanagementdepartmentregularlycoordinatestheenergydemandplanningofeachbusinessunitandformulatestheGroup'sannualenergy-savinggoals,quantiesenergy-savinggains,andensures the rational allocation of energy resources. In addition, Sunwoda incorporates energy management metrics into employee performanceevaluations,promotingecientenergymanagementthroughasystematicevaluation-basedenergy-savingmanagementassessmentframework.In 2024, Sunwoda released the Energy Conservation Assessment Management Measures, comprehensively upgrading its energy-saving assessmentstandards and conducting a comprehensive assessment of employees and teams based on three key metrics (intensity, total consumption, andenergy-savingamount)andvedimensions(energy-savinggoals,energy-savingcompliance,managementeectiveness,improvementinitiatives,and monitoring practices). Meanwhile, based on its energy-saving management assessment framework, Sunwoda has established a performancecontract assessment mechanism that assigns a 5%-10% weighting to energy performance indicators, further strengthening the assessment incentiveeect.
Building on its systematic energy management system, Sunwoda has also established a strategic energy-saving model of "1 Organization, NSupports,N+1Foundations,"whichrealizesthescienticuseofdata,standardizedoperationofenergysaving,andintegratedapplicationoftechnology, and promotes the company to reduce the energy consumption of production and operation cost in all aspects, and to build a customer-satisedgreenandlow-carbonproductionsupplychain.
Medium and Long-Term Strategic Planning Goals for Energy Conservation2024
Base Year4% year-
on-yearreductionin energyintensity4% year-on-year reductionin energyintensity
3% year-on-yearreductionin energyintensity4% year-on-year reductionin energyintensity
3% year-on-yearreductionin energyintensity
20262028202520272029
Organization
Supports
Foundations
Energy Conservation and Eciency ImplementationSunwoda embraces the operational philosophy of "strengthening energy-saving management in manufacturing, promoting energy-savingtechnologicaltransformation,andusingdigitaltechnologiestoimprovefactoryenergyeciency".TheCompanyconstantlyfocusesonannualenergyconservation targets through multiple measures to comprehensively promote the implementation of energy-saving and consumption reduction workfrom dimensions such as energy information platform construction, equipment upgrades, technology optimization, and organizational training.In 2024, Sunwoda implemented an energy monitoring and visualization platform in accordance with ISO 14064 standards, achieving real-timemonitoring,verication,tracking,andfeedbackofenergyconsumptiondata,providingprecisedatasupportforenergy-savingandconsumption-reductioneorts.ThiscentralizedenergymanagementsystemhasformedahierarchicalstructurewiththeGroupheadquartersastheprimarycontrol center and subsidiaries/business units as sub-control monitoring hubs, capable of executing 24-hour data energy monitoring for key energy-consuming equipment, workshops, etc., to optimizing energy allocation and reduce unnecessary energy consumption.Toensuretheecientadvancementofenergy-savingandconsumption-reduction,SunwodahasintegratedtheGroup'stechnicaltalentresources,established an Energy Conservation Project Review Expert Committee, and issued the Management Regulations for the Energy Conservation ReviewExpert Committee. This Expert Committee is responsible for providing comprehensive support in project technology, evaluation management, systemconstruction,andenergy-savingstandarddevelopmentforvariousparksandbusinessunits.Thisinitiativeaimstoeectivelyidentify,evaluate,andimplement various energy-saving technological transformation projects in parks and business units, ensuring the smooth implementation of projects.On the other hand, it strategically optimizes the Company's layout of the energy-saving and emission-reduction framework, providing strong supportforSunwoda'ssustainabledevelopmenteorts.During the reporting period, Sunwoda completed improvements on 215 energy saving projects, of which 83 energy-saving technical plans wereformulatedand132energy-savingprojectswereidentied,withanannualpowersavingof66,748,000kWh,asavingof8,203.3tonsofstandardcoal, and a reduction of carbon dioxide emissions of 35,817 tons.
Sunwoda proactively improves the construction of energy management systems and comprehensivelyupdates and upgrades the relevant policy documents for energy management. Currently, Sunwodahas formulated 18 energy management policies and procedures, including the Energy ManagementRegulations and Energy Benchmarking and Performance Management Regulations, providingstandardized operational guidelines for the Company's energy management activities.Toeectivelyadvanceenergymanagementinitiativesandenhancethetransparencyofenergysystemoperations, Sunwoda regularly organizes audits such as energy management system reviews, internalaudits, management reviews, and external surveillance audits. In 2024, based on the Sunwoda EnergyManagementSystemMaturityEvaluationStandard(2024AEdition),theEnergyConservationOceconducted documentary and on-site evaluations of energy management practices across the Group'sparks and business units (subsidiaries). This comprehensive assessment yielded 30 summary reportsoutliningimprovementopportunitiesandidentied339on-siteimprovementopportunities,with164prioritized as key improvement projects for 2025.
Energy Management SystemMaturity Assessment:
Business Units/Subsidiaries
SupportSunwoda toachieve carbonpeak by 2029
2024
Energy Management Department
EnergyManagementGroup
SystemComplianceTeam
EnergyTechnology
Group
Energy Conservation Committee
Vice Chairman
Energy Management Department
Energy Management GroupEnergy Technology Group
Sunwoda Energy Steward
Cockpit Platform
Energy Conservation ExpertReview Committee
ISO 50001 EnergyManagement SystemEnergyEciencyProjectDeployment PlatformTechnology Assurance
Framewor
Industrial BenchmarkingEnergyeciency
managementEnergy monitoringProject implementation
☉Renewable energy use ☉Energy management system ☉Energy digitalization and intelligence ☉Energy-saving training and publicity
☉Energy-saving assessment system evaluation ☉Lawandregulationidentication ☉Water-saving system ☉Supplier green production ☉Energy-saving digital transformation ☉Facility technology optimization ☉Energy-saving excellent case promotion platform
System Compliance Team
Medium- and Long-Term Development(2024-2029)
Adopt "1" organization, "N" supports, "N + 1" foundations strategy implementation plan,
create energy-saving standardized, lean and intelligent operation mode
☉Energy management center construction ☉Personnel technical development
Business Units and Subsidiaries
Energy Conservation devisionEnergy Conservation Executor
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Winter Fresh Air Cooling as Alternative to Air Conditioning
The Company utilizes economizer mode operation by deactivating air handling unit coil circulation and fully openingtheoutdoorairdampers,eectivelyreducingtheairconditioningenergyconsumption.Currently,theCompanyhasimplemented 10 related measures, expecting to save 2.5 million kWh of electricity annually, equivalent to 307 tons ofstandard coal and 1,392 tons of CO2 emissions reduction.
Waste Heat Recovery from Air CompressorsWaste heat recovery units were installed to the air compressor stations to recover waste heat for heating tap water to 75°C,with a recoverable capacity of up to 1,070 kilowatts. This reclaimed thermal energy can further be applied to replace part oftheheatingfordehumidiersandpreheatingoffreshairforovens,eectivelyreducingenergyconsumptionandmeetingheating power requirements.
Reduced Pressure Operation of Chilled Water SystemBy increasing the local booster pump, the supply pressure of the chilled water to the anode mixing workshop tanks isreduced from 0.6 MPa to 0.5 MPa, eliminating the need for one chilled water circulation pump. It is expected to save 2million kWh of electricity annually, equivalent to 246 tons of standard coal and 1,114 tons of CO2 emissions reduction.
Energy Saving through Parallel Operation of TransformersTheparalleloperationoftransformerseectivelyreducesthewasteofenergycausedbytransformerno-loadloss.Atpresent, the company has stopped operation of 10 transformers, is expected to save 430,000 kWh of electricity, saving 53tons of standard coal, reducing carbon dioxide emissions of 295 tons.
Energy Conservation Awareness and TrainingLighting Renovation
Todeepenenergy-savingeorts,Sunwodaencouragesall employees to actively participate in energy-saving andemission reduction actions. In June 2024, Sunwoda's EnergyConservationOceorganizedthe"GreenTransformation,EnergyEciencyCampaign"Week,aligningwiththenational energy-saving promotion week theme and theCompany's energy-saving management needs. Throughdiverse measures such as poster displays and prize-winning quizzes, employee participation and awarenessofgreenactionswereeectivelyenhanced.Thiseventcovered 18 parks and 28 business units/subsidiaries acrossthe Group, attracting over 30,000 participants.Transition to Clean Energy
The transition to clean energy is both an inevitable trend and is crucial for enterprises amid the global advocacy for sustainable development andactive response to climate change. As an industry leader, Sunwoda actively responds to the call for clean energy transition and continuously exploresthe comprehensive application of clean energy in the production process.The Company will gradually increase the proportion of clean green energy such as wind and solar power, promoting a low-carbon energyconsumption structure. In 2024, the Company's green electricity usage accounted for 29.71%.
In green electricity trading, to ensure a stable supply for the Group's electricity needs while meeting customer demand for green electricity, Sunwodaactivelyoptimizesitselectricitytradingstrategy.Throughprecisemarketanalysisandexibletradingmethods,theCompanyeectivelymitigatesprice volatility risks, supporting its steady progression in clean energy transition.
Sunwoda places a high priority on energy saving awareness and actively conducts energy-saving training and activities for employees. The Companyhas formulated the Individual Energy Conservation Management Regulations to provide practical direction for environmentally responsible behaviorand encourage the practices of green concepts. A specialized empowerment training framework on energy-saving systems, processes, technology,and compliance is established at the same time, with energy-saving awareness training periodically. In 2024, Sunwoda delivered three energy-saving empowerment training sessions for managerial-level personnel, reaching 271 participants across 22 business units. The company regularlypublishes energy-saving publicity tweets through the enterprise public number, recognizes outstanding energy-saving employees, and raises theawareness of energy-saving among employees.
94.10
336,094
94,800
29.71%
Total installed capacity ofphotovoltaic power:
Total purchased green electricityandgreencerticates：
Self-consumed photovoltaicelectricity：
Proportion of greenelectricity usage:
MW
MWh
MWh
Replacement of Central Air Conditioning Equipment
TheCompanyreplacedconventionalequipmentwithhigh-eciencymagneticbearingcentrifugalchillerstoenhancethecooling capacity. Currently, the newly installed water-cooled units have a cooling capacity of 1,400 tons of refrigeration,which is expected to achieve an annual electricity saving of 2.48 million kWh, equivalent to 304 tons of standard coal and1,378 tons of CO2 emissions reduction.Central Air Conditioning Intelligent Control System RenovationThe Company adopts new intelligent control software to replace the outdated central air conditioning system, achievingvariable frequency operation of the water pumps and smart chiller sequencing, which is expected to save 1.6 million kWh ofelectricity annually, equivalent to197 tons of standard coal and 890 tons of CO2 emissions reduction.Lighting RenovationIn2024,theCompanyupgradedtohigh-performanceLEDlightingsystems,introducing35,387setsofhigh-eciencylightingunits,achievinglowenergyconsumptionwhileensuringsuperiorluminousecacyandquality.Itisexpectedtosave 3.18 million kWh of electricity annually, equivalent to 390 tons of standard coal 1,771 tons of CO2 emissions reduction.
2024 Key Energy-Saving Technical Transformation Projects
Hosts the "Green Transformation, Energy Eciency Campaign" WeekCase
Equipmentoptimization
TechnicalImprovement
Proportionofgreenelectricityusage=(Totalpurchasedgreenelectricityandgreencerticates+Self-consumedphotovoltaicelectricity)/(Totalexternalelectricityprocurement + Self-consumed photovoltaic electricity)
Photovoltaic power installed capacity and photovoltaic power generation encompass both utility-scale photovoltaic systems and distributed photovoltaicinstallations.
2024
2024 GoalsCompletion Status
Decreased energy costs
RMB 30 millionRMB 49.3936 millionSaved electricity
41.0959 million kWh66.748 million kWh
Saved standard coal5,050.68 tons8,203.3 tons
Year-on-year reduction in the Group's energy intensity4%4.02%
Year-on-year reduction in the Group's energy consumption6%11.11%
Energy-saving projects (management + technological transformation)≥260items215items
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Sunwoda maintains continuous oversight of water consumption during the production processand actively promotes water resource management. Strictly abide by the relevant laws andregulations such as the Water Law of the People's Republic of China and the Water ConservationRegulations (2024), following the PDCA principle, the company formulates internal systemssuch as the Management Regulations on Water Conservation and closely monitors water usageactivities in daily operations.Currently, Sunwoda relies exclusively on municipal water supplies for all its water usage, mainlyused for employee domestic consumption, canteen operation, and production processes likeboilers, steam generation, HVAC systems, process cooling towers, and manufacturing mixingprocesses.Duringthereportingperiod,theCompanyhadnosignicantdirectorindirectimpacton local water resources in its practices, from water withdrawal, consumption, discharge tostorage.
Sunwoda prioritizes pollutant and waste management, strictly adhering to relevant laws andregulations on pollution discharge management, and continuously improving the emissions of exhaustgas, wastewater, and waste. Sunwoda formulated and publicly released the Waste Emission ReductionTarget of Sunwoda to clarify the emission targets and emission reduction pathways for variouspollutants and wastes for all subsidiaries by 2024, providing guidance for emission reduction work.Water Resource ManagementPollutant
and WasteManagement
2024 Water Resource Management Measures and Outcomes
The Company recovered and reused EDI-concentratedwater by returning it to the raw water tank to optimizeeciency.Theremainingwastewaterwasdirectedtothe boiler cooling pool, and additional water storagetanks, booster pumps, and pipelines were installed toensure the completeness of the wastewater recoveryinfrastructure.The Company has installed new RO concentratedwater collection tanks with dedicated piping to VOCemission treatment scrubbers.
41 water circulation pumps have been installed atShilongzai Park to enhance water resources recyclingeciency.
Outdated faucets have been replaced with water-savingxturesequippedwithautomaticsensorstoeectivelyreducewaterconsumption.
Ultrapure Water SystemWastewater Recovery
Concentrated WaterRecovery and Utilization
Circulation PumpInstallation
Water-Saving Fixturesand Automatic SensorInstallation
cubic meters ofwater saved monthly.
Achieved
99.09%
water reuserate through circulation pump systems,
Water-saving devices improve watereciencyby
compared totraditional faucets.
Specic MeasuresProjectOutcomes
Main Exhaust Gas CategoriesMain Testing IndicatorsMain Treatment Methods
subsidiaries were awardedthe title of "Water-SavingEnterprises".
Exhaust Gas Emission
Target
Wastewater Emission
Target
2024 Waste Emission Target100%Compliant Emissions
100%Compliant Emissions
The amount of general waste generated per unit of production isreduced by5% compared to the previous yearThe amount of hazardous waste generated per unit of productionis reduced by
5%
compared to the previous year
Exhaust Gas ManagementSunwoda strictly complies with the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution and theComprehensiveEmissionStandardsforAirPollutants（GB16297-1996）aswellasotherlaws,regulations,andindustrystandards.TheCompanyactively carries out air pollutant control work within its operational scope, strictly controls air pollutant emissions during production operations andtheir impact on the surrounding environment, continuously enhances its environmental competitive advantage, and establishes a model for greendevelopment.Following the requirements of the environmental impact assessment documents and the local ecological environment bureau, Sunwoda regularlyinspects and maintains the exhaust gas facilities, timely replaces activated carbon, and ensures gas emission standards. The Company also regularlyengagesqualiedthirdpartiesforon-sitetestingandatmosphericpollutionemissiontestingreportsissuancetoensurecompliancewithrelevantstandards. In 2024, the results of the third-party testing of Sunwoda's atmospheric pollutants meet the approval of the environmental impactassessment and statutory emission standards.Main Exhaust Gas Treatment Facilities and Methods
cubic meters of EDIconcentrated water recovered monthly.
Paint Spray EmissionsCyclone Tower + Spray Scrubber + Dry Filtration + RTO
Coating Waste GasCondensation Recovery + Zeolite Rotor AdsorptionInjection Process EmissionsWet Scrubbing + Activated Carbon AdsorptionDispensing / Coding / Silk ScreenPrinting / Pad Printing / Injection
Molding
Activated Carbon AdsorptionWelding FumesBag Filter Collection / Dry Filtration + Activated Carbon Adsorption
Organic Waste Gas
Wet Scrubbing + Dry Filtration + Activated Carbon AdsorptionConcentration + Thermal Desorption and Catalytic OxidationParticulate MatterGravity Precipitation / Bag Filter Collection / Pulse-Jet CleaningBoiler / Thermal Oil Heater ExhaustLow-NOx CombustionSewage Treatment Plant Odor EmissionsWet Scrubbing + Biotrickling Filter
Non-methane Total
Hydrocarbons,VOCs, ParticulateMatter, SO
, NO
X
,H
S, NH
2024
with daily recycled water volume of79,878.0 cubic meters.
CompletedCompletedCompleted
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Exhaust Emission Reduction MeasuresPrinciple of Comprehensiveand Classied CollectionPrioritize Process Equipment withIntegrated Emission Capture andAdvanced Treatment Systems
Implement ContainmentStrategies for Emission Sources,including closed, collection,purication and otheroperational measures
The exhaust collection system is designed comprehensively based on factors such as gas properties,owrate,concentration,generationamount,andairvelocitytoensureeectiveexhaustcapture.The polluted gases collected by the gas hood are transported through pipelines to thepuricationdevicefortreatmentandthendischargedaftermeetingstandards,ensuringhighcollectioneciencyandminimizingfugitiveemissions.Solid waste (including hazardous waste) containing volatile materials or odors is stored andtemporarily stored in a closed design, and the waste gas is discharged after being collected andtreated to meet standards. The waste gas generated by sewage collection and treatment units(such as anaerobic pools, aeration pools, sludge pools, etc.) is collected in a closed manner anddischargedaftereectivetreatmentmeasures.
Toeectivelyreducetheemissionsfromsprayingcoatingprocesses(containingpaintmistparticlesandVOCs)andassociatedwastegases,Sunwoda's subsidiary Zhejiang Winone has introduced self-cleaning anti-clogging RTO treatment and zeolite rotor adsorption technology totreat the two types of waste gas separately. Through the combination of adsorption treatment and high-temperature oxidation, these systemsultimately convert pollutants to water and carbon dioxide.The self-cleaning anti-clogging RTO device has undergone multiple third-party environmental assessments since its implementation. Itsemissions consistently meet the current waste gas emission standard requirements, with non-methane hydrocarbon concentration generallybelow 20 mg/m? and as low as 5 mg/m?.
In Sunwoda's Boluo Park, a self-built industrial wastewater station and water reclamation facility have been established to provide acomprehensive industrial wastewater treatment and recycling system. After being processed through the park's industrial wastewater station,theindustrialwastewaterentersthereclaimedwaterfacilityforadvancedpurication.Thistreatedwastewateristhenutilizedinthecoolingtower makeup of air conditioning systems, enabling secondary resource utilization and ultimately reaching zero industrial wastewaterdischarge.
In lithium battery cell production, NMP (N-Methyl-2-pyrrolidone) cleaning solution is required for equipment maintenance to clean the cathodeslurry mixing equipment and material transfer pipelines, generating NMP waste liquid, known as cathode waste liquid.Sunwoda collaborates with upstream and downstream industry chain partners to conduct green recovery and reuse of cathode waste liquidbyextractinghigh-valueclariednewNMPliquidfromthecathodewasteliquidforreuseinbatteryproduction.Alldiscardedrawmaterialscanberecycledanddonotentertheenvironment,maximizingresourceclassicationandrecyclingandalsocreatingeconomicandenvironmentalbenets.
Wastewater ManagementAbiding by the Law of the People's Republic of China on Prevention and Control of Water Pollution and other relevant laws, Sunwoda strictly managesthe discharge of industrial wastewater and domestic sewage by building sewage treatment facilities and conducting regular monitoring to ensurecompliance with the wastewater quality standards. The Company's 3C battery, energy storage products, and PCB board manufacturing facilities donot generate industrial wastewater discharge. The cell production plants are equipped with dedicated sewage treatment stations, achieving 100%collectionofproductionanddomesticsewageand100%complianceforeuentwaterquality.The Company's industrial wastewater treatment facilities are operated and managed by professional environmental service providers, with dailyoversight conducted by the subsidiary's safety department to ensure the normal operation of wastewater treatment equipment. In accordance withtheenvironmentalimpactassessmentrequirements,theCompanyregularlycontractsqualiedthirdpartiesforon-sitetestingandsewagetestingreports, with results consistently meeting the standards set by the environmental impact assessment approvals and relevant regulations.The company's domestic sewage is mainly generated by the employees' life. Living sewage through the plant septic tank, grease trap and otherwatertreatmentfacilities,accordingtotherequirementsoftheEIAapprovalforreuseoraccesstomunicipalsewageocialwebsite;partofthelivingsewagebytheparklifesewagestationqualiedtreatmentforreuseinthearea,suchasforgreenwatering,toiletushingwater.
Zhejiang Winone Coating Waste Gas TreatmentCase
Cathode Waste Liquid RecoveryCase
Boluo Park Achieves Zero Industrial Wastewater DischargeCase
Main Wastewater Treatment Facilities and Methods
Main Wastewater CategoriesMain Testing IndicatorsMain Treatment Methods
Domestic SewageA2O+ArticialWetland
Fenton Oxidation + A3O + MBRFenton Oxidation + A2O + Multi-stage Filtration + ROIndustrial Wastewater
Sand Filtration + Carbon Filtration + Security Filtration +
Ultraltration+ROGrating + Regulating Tank + Coagulation Sedimentation
+ AO + MBR + Fenton + FiltrationRegulating Tank + Mixed Sedimentation + Fenton Oxidation +
Mixed Sedimentation + A2O + MBR
pH, chemicaloxygen demand,5-day biochemicaloxygen demand,suspended matter,total nitrogen, totalphosphorus, etc.
WasteManagement
Sunwoda strictly complies with the Law of the People's Republic of China on the Prevention and Control of EnvironmentalPollution by Solid Waste and other national laws, as well as the Standards for Pollution Control in the Storage ofHazardous Waste and other industry standards. It has established management systems including the Regulations ontheManagementofGeneralWasteandImplementationRulesforSolidWasteControlbasedonclassicationstandardssuchastheClassicationandCodesCatalogueforSolidWasteandtheNationalCatalogueofHazardousWaste,clarifyingtherequirementsforwasteclassication,collection,storage,transportation,anddisposal,whilecontinuouslypromotingwastereductionanddisposaleorts,practicingtheconceptofgreendevelopment.To continuously reduce the environmental impact of waste emissions, annual waste reduction targets are set anddelegated to various business units and sectors each year, with progress tracked to ensure goal achievement.For hazardous waste reduction management, Sunwoda takes targeted actions through multiple dimensions, suchasmaterialselection,processoptimization,andemployeetraining,toadvancewastemanagementeortsthroughvarious initiatives. In terms of material selection, Sunwoda prioritizes the use of green and environmentally friendly rawmaterials and auxiliary materials to reduce the generation of hazardous waste. In terms of manufacturing processes,Sunwoda continuously optimizes production techniques to minimize raw materials and auxiliary materials consumptionto reduce waste generation. In addition, the company requires relevant personnel to participate in hazardous wastetraining to enhance employee safety awareness.For general waste management, Sunwoda promotes waste reduction and recycling through system development,classicationcontrol,andawarenessenhancement.Fromaproceduralperspective,Sunwodacontinuouslystandardizeon-sitewasterecyclingeorts.Atthesametime,theCompanyhasestablishedanextendedproducerresponsibilityframework,incorporatingwaste-generatingunitsintoauniedmanagementforrecyclingandreuse,emphasizingtheaccountabilityofproducersforproperwastehandling.Inaddition,Sunwodainsistsonstrengtheningtheclassicationcontrolofgeneralwaste,establishingacomprehensiveclassicationoperationsystemfromproductiontodisposal,therebyimprovingtherecyclingrateofgeneralwaste.Toeectivelyboostemployees'awarenessofwasterecycling,Sunwoda organizes awareness campaigns through multiple channels. In 2024, Sunwoda carried out a cross-departmentalresourcesharingactivityforidleocefurnituretoimprovetheCompany'swasteutilizationrate.
Sunwoda hasobtained thehighest levelof platinumcerticationforzero waste tolandll.5960
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"Starting from Sunwoda, Carbon-Reduced Future" Earth Day Hiking ActivityCase
"Green Future Together" Themed Series of ActivitiesCase
Main Waste Management Methods
Fostering a Low-carbon CultureThroughthesystematicimplementationofgreenoceinitiatives,Sunwodadeeplyintegratesustainabledevelopmentconceptsintodailyoperations,comprehensivelypromotingenvironmentalpracticesincludingenergyconservation,resourceeciency,andpaperlessoceprocedures.In daily communication, the Company encourages remote conferences to reduce unnecessary business travel. In business document communication,the Company vigorously promotes electronic contracts and invoices and encourages online document signing and online cost settlement in businesstransactions, thereby reducing paper usage. In meeting scenarios, the Company encourages electronic documents to replace traditional papermeetingmaterials,enhancingoceeciencywhileeectivelyavoidingpaperwaste.Additionally, Sunwoda actively fosters a sustainability-oriented workplace environment by integrating green culture into corporate operations. TheCompany continues to promote diverse employee activities themed around green culture, including knowledge competitions, video contests, andgreen travel challenges, to raise employees' awareness of green, low-carbon, and environmental protection and encourage practical implementationof low-carbon principles.
In May 2024, in response to Earth Day and in response to the global theme of "Planet vs. Plastics", Sunwoda's Sustainable Development Center,Trade Union, and Party Committee jointly held the "Starting from Sunwoda, Carbon-Reduced Future" hiking activity at Shiyan Lake WetlandParkinBao'anDistrict,Shenzhen,attractingover200participants.Intotal,theCompanysuccessfullyoset3tonsofgreenhousegasemissionsfrom the activity through the United Nations Clean Development Mechanism (CDM) voluntary emission reduction project, achieving "carbonneutrality"fortheeventandobtainingcerticationforthecarbon-neutralevent.
During Sunwoda's sixth cultural festival, the SustainableDevelopment Center and the Corporate Culture Department jointlyinitiated the "Green Future Together" themed series of activities,employing a dual-track approach that includes two onlineinteractionsandthreeoineparkactivities,fullystimulatingparticipants' enthusiasm for low-carbon. The activities spanall domestic parks and bases of Sunwoda, with a wide impact,attracting enthusiastic participation of over 1,000 employees.In addition, to encourage employees to actively practice a low-carbon lifestyle, Sunwoda has also introduced a low-carbon travelincentive program, allowing employees to have their exclusive"low-carbon planet" and actively use green, low-carbon travelmethods in daily life in line with the operational guidelines toaccumulate corresponding carbon reduction credits, contributingto a green, low-carbon home. The online activity ran for 15 days,encompassing all Sunwoda Group bases, with participation fromover one thousand employees.
Photo from the Hiking Event
Event venue
Photo from the Hiking Event
Battery recycling experienceCultural Festival Activities
Conserving BiodiversitySunwodahasalwaysplacedahighpriorityonbiodiversityconservationandrmlyobservesecologicalprotectionredlines.Duringsiteselection,theCompany uses a comprehensive site evaluation framework to avoid setting up production bases and operational points in nature reserves or areaswith rich biodiversity outside protected zones. Currently, all business units and production bases of Sunwoda are located in established industrialparks on land designated for industrial and commercial use.SunwodastrictlyfollowstheStateCouncilGeneralOce'sOpinionsonFurtherStrengtheningBiodiversityProtectionandotherrelevantlawsandregulations, actively responds to the Ministry of Ecology and Environment's China's Biodiversity Conservation Strategy and Action Plan (2023-2030).TheCompanysystematicallyreviewsitsproductionandoperationalprocessesandidentiespotentialriskfactorstominimizenegativeimpactsonbiodiversityfromgreenhousegasemissionsandpollutants.Duringthereportingperiod,nosignicantbiodiversityimpactswereidentiedinanyofSunwoda's production and operation, products, and services.
Waste contaminated media (rags,gloves), waste empty containers(adhesive bottles, empty alcohol barrels),waste organic solvents (laboratoryreagents), waste acids (for experiments),spent mineral oils (for environmentalfacility maintenance), spent activatedcarbon (for exhaust gas facilityreplacement), etc.
General waste and household garbage
Full-process control is adopted, from rawand auxiliary materials to hazardous wastegeneration positions, and then to hazardouswaste collection, storage, and transportation,with records in each link and transfer manifestsaccording to national regulationsTheCompanysignedcontractswithqualiedhazardous waste disposal facilities, withregularly scheduled collection and disposalbycertiedthird-partyserviceproviders,prioritizingresourcerecoveryandbenecialreuse where applicableBusiness contracts have been signed withsuppliers for the disposal of general wasteand household garbage. Professionalwaster management service providers wereresponsiblefortheclassicationandtreatmentof general waste and household garbage.Regulartrainingsonwasteclassicationbusiness knowledge were organized forcleaningsta
Stored in designatedhazardous wastestorage with processingcompleted within 1-3months
Household garbagewas collected anddisposed of daily, withperiodic collection andrecycling of generalwaste based ongeneration volumes,occurring no less thanthree times weekly
Hazardouswaste
Generalwaste
TypeMain Waste CategoriesProcessing CycleTreatment
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Response to SDGs:
Key ESG Topics in this Chapter:
Robust governanceAnti-corruption and business ethicsInformation Security and Privacy ProtectionHigh-quality products and services
ACCOUNTABILITY
Excellence in Governance,Pursuing Perfection
Sunwoda strictly complies with the laws and regulations of China and othercountries where the Company does business, and fully adheres to variousinternational business standards and practices. The Company achieves e?cientmanagement through top-notch corporate standards. With a product culturecentered on ultimate quality and safety, Sunwoda safeguards the health andsafety of its customers. By reshaping the R&D chain, production chain, andsupply chain with information technology and intelligent systems, the Companyis committed to leading the entire industry toward a greener and better futurein renewable energy.
Ensuring Stable Operations
Sunwoda strictly adheres to all applicable laws and regulations, continuously improving its corporate governance structure with clearly definedresponsibilities, close interdepartmental coordination, and efficient operations. The shareholders' meeting fully safeguards shareholders' rightsand interests and deliberates on significant matters. The Board of Directors acts diligently and responsibly with specialized committees to promotestrategy implementation. The Board of Supervisors actively fulfills its oversight duties. There is close collaboration, smooth information flow, andefficient operations across all levels.
Corporate Governance
Investor RelationsManagement
Corporate GovernanceStructure
Directors and Board of Directors
Information Disclosure Management
Investor Relations Management
The Company values the construction of the Board of Directors and continuously optimizes its governance structure, continuously improves theoperational mechanism of the Board of Directors, enhances information communication and supervisory functions, and regularly conducts trainingand exchanges for directors to improve their governance competencies.Sunwoda emphasizes the diversity, independence, and effectiveness of the Board of Directors. In 2024, the shareholders' meeting reviewed andapproved the Proposal for Resignation and Eligible By-election upon Expiration and Supplementary Election of Independent Directors, adding onefemale independent director. Currently, the Board of Directors consists of seven directors, including three independent directors. The seven currentdirectors of the Company possess extensive expertise and experience in management, accounting, and law.Sunwoda has established four specialized committees: the Strategy and Sustainable Development Committee, the Remuneration and AppraisalCommittee, the Audit Committee, and the Nomination Committee. Each specialized committee has at least two independent directors responsible forrelated work. Except for the Strategy and Sustainable Development Committee, which is chaired by a director, the other committees are chaired byindependent directors, with the Remuneration and Appraisal Committee being chaired by a female independent director, laying a solid foundationfor evidence-based decision-making of the Board of Directors.
To ensure compliance with information disclosure, Sunwoda has formulated theManagement Regulations on Information Disclosure, firmly rejectsinsider trading, and standardizes the external information disclosure process. During the reporting period, the Company reviewed and improvedmultiple corporate governance-related issues, strengthened control measures, and enhanced the level and quality of information disclosuremanagement, effectively protecting the legitimate rights and interests of investors.As of 2024, Sunwoda has maintained an A-level rating for information disclosure from the Shenzhen Stock Exchange for eight consecutive years.To improve the corporate governance structure and standardize investor relations management, Sunwoda has developed theManagementRegulations on Investor Relationsbased on relevant laws and regulations and its own circumstances. The Company adheres to the principles of"fairness, justice, and openness," upholding the concept of fully and compliantly disclosing information to ensure that all investors have equalopportunities. At the same time, Sunwoda interacts and communicates with investors through multiple channels and at multiple levels, and presentsthe Company's actual situation objectively, truthfully, accurately, and completely with an honest, trustworthy, and efficient attitude, so as to improveinvestors' understanding and recognition of the Company and effectively safeguard their right to be informed, especially small and mediuminvestors.
Sunwoda strictly complies with relevant laws and regulations and strengthens communicationand interaction with investors and potential investors to enhance investors' understandingand recognition of the Company and improve the corporate governance. The Company hasestablished theManagement Regulations on Investor Relations and theInformation DisclosureManagement Systemto build a comprehensive investor management framework, systematicallysafeguarding investors' rights and protecting their right to know and participate in significantmatters of the Company.
Board of Directors
Time(s)
Audit Committee
Time(s)
Board of Supervisors
Time(s)
Remuneration and AppraisalCommitteeTime(s)
General Meeting of ShareholdersTime(s)
Nomination CommitteeTime(s)
Independent Directors Special MeetingTime(s)
Strategy and SustainableDevelopment CommitteeTime(s)
General Meeting of
Shareholders
Board of Directors
General Manager
Board ofSupervisors
2024
Departments
Secretary of the Board
of Directors
Strategy and SustainableDevelopment Committee
Remuneration and Appraisal
Committee
Decision-Making Committee
Nomination Committee
Audit Committee
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Sunwoda maintains an unwavering commitment to business ethics principles and actively supervises the implementation of business ethicsacross the Company and among its employees. In 2024, Sunwoda released theManagement Regulations on Compliance Red Lines in Key Areastosystematically elaborate on the formal policies against bribery and corruption. The Company also establishes a comprehensive suite of businessethics policies, including theManagement Regulations on Business Ethics, theManagement Regulations on Conflicts of Interest, theManagementRegulations on Integrity and Ethical Behaviors, theManagement Regulations on Anti-Bribery, and theManagement Regulations on Anti-Fraud.Together, these policies form an integrated integrity governance framework that spans the entire business value chain, and ensure the achievementof objectives for full compliance with the code of business conduct across the Company's operations and throughout its supply chain.Sunwoda's integrity and compliance governance architecture is structured across four levels: decision-making, management, execution, andsupervision. The Board of Directors exercises decision-making functions, and functional departments led by the General Manager, Chief ComplianceOfficer, and Compliance Management Department are mainly responsible for overseeing business ethics and corruption issues. These departmentsdevelop and implement integrity and compliance rules and regulations, and cooperate with various business departments to jointly promoteintegrity and compliance governance. The Audit Center formulates internal audit plan based on the Company's annual business objectives, conductsinternal audits on all business modules, independently and impartially investigates violations, and implements integrity and compliance supervision.At the same time, the Audit Committee under the Board of Directors receives quarterly reports from the Audit Center to ensure the enforcement of therequirements of integrity and compliance governance.
Key InvestorCommunicationChannels
Business Ethics Management
Integrity and Compliance Governance Framework
Sunwoda engages with investors through various channels, adhering to the principles of fulland compliant disclosure, equal opportunities for investors, honesty and integrity, operationalefficiency, and interactive communication.
Investors Offline Communication
Time(s)
Problem Solved
Issue(s)
Risk andComplianceManagement
Integrity andBusiness Ethics
Sunwoda always regards risk and compliance management as the cornerstone of sustainabledevelopment, upholding compliant operations and integrity-based governance. Under theleadership of the Audit Committee, the Company has established a compliance managementframework with "three lines of defenses" composed of various business departments/subsidiaries, functional centers, and the Risk Control and Audit Center, providing a solidorganizational guarantee for the effective operation of compliance management.The Audit Committee of the Board of Directors functions as the strategic oversight layer,coordinating both internal and external audits, and directly reporting to the Board of Directorsto ensure the independence and authority of internal and external risk and compliancemanagement. The Risk Control and Audit Center, as the oversight and assurance layer, monitorsthe risk status of various business modules in real-time through intelligent audit models and riskearly-warning platforms.In terms of governance framework enhancement, Sunwoda has supplemented and revised theCompliance Management Measuresby introducing definitions and clear role assignments forspecialized compliance OWNER, clarifying the division of responsibilities in various compliancedomains, and ensuring that compliance accountability is assigned to specific responsibledepartments and personnel. Under this framework, heads of first-level departments serve asprimary compliance officers, with their responsibilities formalized through signed compliancecommitment letters. The Company also published theManagement Regulations on ComplianceRed Lines in Key Areas, establishing prohibitive compliance requirements in 13 areas to ensure aclear and traceable compliance bottom line for employees. In 2024, Sunwoda signed 11 OWNERcompliance commitment letters, and incorporated compliance veto criteria into departmentalperformance indicators to avoid violations arising from failure to fulfill due diligence obligationsor inadequate compliance management.Anti-corruption initiatives and business ethics frameworks contribute significantly to Sunwoda'sgovernance and operational efficiency, bringing substantial social and economic benefits to theCompany. In 2024, Sunwoda's anti-corruption management efforts focused on multiple aspectssuch as policy development, investigation protocols, mechanism enforcement, and integrityculture construction, forming a multi-faceted and multi-level fraud prevention and controlsystem, and providing a solid guarantee for the Company's high-quality development.
Sunwoda has issued theFifteen Integrity Red Lines for Employees, which clearly prohibits bribery,leaking trade secrets, and using one's position for personal gain, among other fifteen integrityviolations. These guidelines have been communicated through the official website, integrity WeChatofficial account, internal emails, and offline training for all employees.Sunwoda has revised theRegulations on Reward and Punishment, adding new penalty standardsand measures to ensure that every instance of fraud or misconduct can be addressed accordingto established guidelines. The Company has also drafted theApplication Form for Exemption orMitigation of Penaltyto encourage employees to actively cooperate with investigations. Employeeswho demonstrate proactive cooperation may receive lenient or reduced penalties.
Red Line Management
Penalty Mechanism
First Line of DefenseSecond Line of DefenseThird Line of Defense
Institutional InvestorsSmall and Medium Investors
General Meeting of
ShareholdersRegular and temporaryannouncementsPerformance briefingInvestor HotlineInteractive Q&AInvestor ResearchRoadshows
2024
Decision-making LevelAudit Committee
Management Level
Business Departments(Execution Level)
Compliance and OtherFunctional Departments(Management Level)
Audit Center (Supervisory Level)Compliance riskidentification and policyimplementation
Planning and coordination
Risk monitoring, audit &investigation, and complianceaccountability & enforcement
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Furthermore, the Company has established a comprehensive integrity management mechanism across three stages - prevention, audit monitoring, andcontinuous optimization - to ensure that integrity culture development becomes a normalized and systematic practice throughout the organization.
In supplier management, Sunwoda requires suppliers to sign the Basic Principles for Cooperationwith Suppliers at the start of cooperation, which explicitly stipulates compliance with integritystandards and anti-commercial bribery requirements. Sunwoda also conducts legal complianceand business ethics audits of suppliers based on the Supplier Code of Conduct, requiringsuppliers to continuously standardize their internal anti-corruption management procedures.In addition, Sunwoda continuously updates the Sustainable Development Assessment Form forSunwoda Suppliers in its supplier evaluations, incorporating anti-corruption into due diligenceand assessment considerations. Meanwhile, the Company proactively conducts integrityinterviews with suppliers in routine communications and requires transparent cooperationwith suppliers through supplier conferences, announcements in the SRM system, etc. Sunwodaconsistently verifies the integrity performance of relevant suppliers during the cooperationprocess. Any supplier involved in corruption or fraudulent activities that harm Sunwoda's interestswill face penalties based on the severity of the violation and contractual provisions. For those withserious violations, suppliers will face penalty such as qualification level downgrades, payment ofliquidated damages, and termination of cooperation.
Zhejiang Liwinon was awarded thetitle of "Outstanding Organization inClean Governance Initiatives of PrivateEnterprises in Zhejiang Province for 2024".
The Company provided online integrity training for both new and existing employees, andencouraged self-directed learning to improve the coverage of integrity training.By utilizing big data technology, the Company has established an audit data analysis model forreal-time monitoring and analysis of data across all business modules, improving audit efficiencyand accuracy and promptly detecting, investigating, and correcting corrupt practices.The Company utilized data mining and risk analysis to identify potential issues, such as abnormaltransactions and violations, and provide technical support for specialized audits and fraudinvestigations.In September 2024, the Audit Center distributed the Integrity Self-Assessment to all employeesthrough OA, requiring employees to evaluate themselves against the Company's ethical standardsand integrity regulations.In September 2024, the Audit Center released the 2024 Sunwoda Integrity Examination for AllEmployees through the Sunwoda Learning Platform, requiring all employees to participate in theintegrity examination, with exam results linked to employee evaluations and promotions.The Company regularly assesses the effectiveness of the management mechanism for businessethics and integrity behavior based on audit results and employee feedback. For identified issuesand shortcomings, the Company has developed specific improvement measures and tracked theimplementation effects, such as re-testing of audit issue rectifications.The Company continuously updates and improves the training content on business ethics andintegrity behavior based on industry dynamics and the Company's actual situation. Variousactivities, such as special lectures, early-warning education activities, integrity examinations, andintegrity self-assessments, have been adopted to enhance employees' awareness of integrity andself-discipline.The Company has established a whistleblower reward mechanism to recognize employees whoexcel in business ethics and integrity.
Prevention
Stage
IntegrityTraining
Big Data
Audit
IntegrityAssessment
Feedback andImprovement
Education and
Training
IncentiveMechanism
Fostering a Culture of Integrity
Sunwoda strengthens its integrity culture through diverse activities, including prison visits,educational base activities, and special lectures, enhancing employees' self-discipline awarenessand optimizing the integrity culture development, thus providing strong support for theCompany's long-term development.To prevent corruption at its source, the Company implemented mandatory integrity training fornew employees in 2024.Meanwhile, the Company provides regular integrity training throughdiverse, multi-level, and multi-channel approaches, including in-person sessions, online videocourses, integrity compliance examinations, and specialized training for sensitive and high-riskpositions, achieving 100% coverage of all personnel (including both permanent employees andcontracted staff). Even departing employees receive integrity reminders via exit interviews andtext messages.
To vividly show the harms of illegal activities, the Companyorganized over 110 employees from key job positions to visitShenzhen Prison for integrity warning education. During theactivity, employees gained a profound understanding ofthe serious consequences of illegal activities by visiting theliving areas of inmates, listening to case explanations, andwatching videos of inmates sharing their experiences. Thisexperience strengthened their awareness of integrity, self-discipline, and legal compliance.
In 2024, Sunwoda organized two special trips for visitingand learning at the integrity education bases, allowingemployees to receive integrity education through on-sitevisits. These activities enhanced their awareness of integrity.A total of over 80 participants attended the two specialactivities.
Prison Visit for Early-Warning EducationCase
Visits to Integrity Education Bases in Jinhua and Dongjiang, HuizhouCase
members of the Board ofDirectors received in-personanti-bribery and anti-corruption training
management personnel
received in-person anti-bribery and anti-corruptiontraining
coverage of employeeswho received online andin-person anti-bribery andanti-corruption training
93,701100%
Thestatisticsformanagementpersonnelwhoreceivedin-personanti-briberyandanti-corruptiontrainingincludeemployeesattherst-linemanagement level and above.
AuditMonitoring
Stage
Improvement
andOptimization
Phase
articles were publishedthrough the "Integrity in Sunwoda" and"Integrity in Liwinon" WeChat officialaccounts, with readership exceeding100,000
2024
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The Company has utilized AIGC to empower business, with a strategic focus on R&D operations. By implementingAI-enhanced simulation technologies, it accelerates R&D processes, enhances the maturity of digitalization, anddrives digitalization across the enterprise.
To comprehensively enhance employees' awareness and prevention capabilitiesregarding duty-related crime risks, Sunwoda invited a senior prosecutor fromthe People's Procuratorate of Boluo, Huizhou, to give a special lecture on "Risksand Prevention of Duty-Related Crimes in Enterprises" at the Huizhou Boluo Park.Using real cases and legal analysis, the lecture highlighted the dangers and legalconsequences of job-related crimes, enhancing employees' legal awareness andrisk prevention capabilities. This event attracted over 120 employees.
To continuously implement transparent procurement policies, the Procurement Center invited the Audit Center colleagues to conductspecialized integrity training for procurement titled "Building an Integrity Culture, Forging a Disciplined Team". To manage delivery risks in thesupply chain, the Procurement Center collaborated with the Logistics Center to deliver specialized training on "Critical Customs Compliancein the Procurement Process". To enhance the effectiveness of integrity education in procurement bidding, the Procurement Center produced avideo on "Bid Opening Integrity and Disciplinary Guidelines" which was distributed to all procurement units across the group.
8,000+
Integrity Self-Assessment
Person(s)
20,700+Integrity Examination
Person(s)
Specialized Audits
Item(s)
Supplier Integrity Interviews
Time(s)
96.77%
Examination Pass Rate
Whistleblowing Mechanism
Fair Competition
Digital Strategy Planning
Sunwoda has established and implemented the Management Regulations on Whistleblowing,Acceptance, and Investigation and the Anti-Fraud Management Regulations, among otherpolicies, to promptly identify illegal and compliance issues, ensuring the Company operates inaccordance with applicable laws and regulations. The Company encourages and stimulatesboth internal and external personnel to actively report on "adverse environment, unethicalconducts," or other illegal and non-compliant behaviors that may occur within the organization.Multiple reporting channels, both online and offline, have been established, along with a robustaccountability mechanism to detect various corruption issues in a timely manner, safeguardingthe Company's compliance and orderly development. Concurrently, Sunwoda maintains azero-tolerance policy toward any form of retaliation against whistleblowers. The Company hasestablished a Whistleblower Protection Policy that establishes protective measures to safeguardthe legal rights and interests of whistleblowers.
Sunwoda strictly complies with the applicable laws and regulations, international treaties, regulatory requirements, and guidelines related to anti-unfair competition and anti-monopoly in all jurisdictions of operation. These include, but are not limited to, the Anti-Unfair Competition Law ofthe People's Republic of China, the Anti-monopoly Law of the People's Republic of China, the Provisions on Prohibiting Monopoly Agreements, theProvisions on Prohibiting Abuse of Dominant Market Positions, and the Provisions on Prohibiting Abuse of Intellectual Property to Exclude or RestrictCompetition.The Code of Conduct for Compliance established by Sunwoda's Legal and Compliance Center incorporates compliance requirements related to anti-unfair competition and antitrust. This ensures that Sunwoda and all employees comply with applicable antitrust and anti-unfair competition lawsand regulations, as well as the Company's Management Regulations on Business Ethics during market competition. These measures help preventmonopolistic or unfair competition behaviors, improve corporate governance, enhance intrinsic value, and optimize operating costs.
Sunwoda adheres to a "customer-centric and business-oriented" approach in its digital strategy and vigorously carries out digital transformationinitiatives. The Company has set six goals, focusing on business intelligence, data assetization, product standardization, industrial interconnection,software localization, and intelligent security system, all aimed at maximizing business value.
Reporting Channels
Email: jubao@sunwoda.comPhone: 0755-23053561 or18126270617 (WeChat Account)Website: www.sunwoda.com/jubaoMailing address: Sunwoda AuditCenter, No.2 Yihe Road, ShilongCommunity, Shiyan Sub-district,Bao'an District, ShenzhenReal-name Reporting: Head ofSunwoda Audit Center, Yihe Road2, Shilong Community, ShiyanStreet, Bao'an District, Shenzhen
Safeguarding Product Quality and Safety
In today's era of global digital transformation, digitalization has become increasingly importantfor enterprise development. Sunwoda regards digitalization as one of the Group's four strategicmodernization pillars, and prioritizes its digital initiatives, laying out digital transformation todrive high-quality development.DigitalTransformation
The Company implements end-to-end traceability across the entire battery industry chain and a digital platform forbattery passports, deepening industry connectivity and transparency.
The Company has established a data governance framework and utilized AI and data-driven approaches to driveoperations, accelerating data assetization.
Software localization has been accelerated to break through underlying technologies and achieve risk control inindustrial software.
The Company implements product standardization initiatives and enhances product/project managementframework to respond rapidly to evolving business needs.
The Company has established a global safety operation command center and built a data security protectionsystem and a cloud intelligence computing center, ensuring digital security.
BusinessIntelligence
DataAssetization
ProductStandardization
IndustrialInterconnection
SoftwareLocalizationIntelligenceSecurity System
Special Lecture on Duty-Related CrimesCase
Specialized Integrity Training for ProcurementCase
Theintegrityself-assessmentdataincludesocestaonly.
Theintegrityexaminationdataandpassratestatisticsencompassbothproductionworkersandocesta.
Audit Center Integrity Highlights
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Digital and Intelligent Empowerment
Sunwoda regards intelligent manufacturing technology as a critical driver for product quality upgrades. Through the integration of advancedinformation technologies and manufacturing technology, the Company has achieved automation, intelligence, and efficiency in the production process.Drawing on over 20 years of experience in the manufacturing industry, the Company has developed the "ABCDEFG" seven major intelligentmanufacturing technologies and established an advanced manufacturing architecture. With its intelligent manufacturing platform as thecore, Sunwoda enables deep interaction between multiple platforms and systems, successfully creating an ecological platform that integratesindustrialization and informatization, providing solid support for intelligent manufacturing.
Building on its practical implementation experience, Sunwoda has constructed a distinctive digital value chain ecosystem founded on the eight coretechnologies of "Internet + Internet of Things + Big Data + Cloud Computing + AR/VR + AI + Digital Twin + Blockchain". This system, centered on smartproduction chains, smart R&D chains, and smart supply chains, forms a tripartite end-to-end system that helps the Company build world-classintelligent factories and explore intelligent and advanced solutions for the industry.In 2024, Sunwoda applied digital and intelligent empowerment across multiple business operations. In R&D, the Company deployed FMEA (FailureMode and Effects Analysis) and integrated digital tools into R&D project management, significantly improving R&D efficiency. In the productionprocess, the Company launched an advanced Warehouse Management System (WMS) and, at the same time, promoted the co-creation andapplication of a Manufacturing Execution System (MES) for digital management in processing, improving equipment processing precision,production efficiency and product quality. In the supply chain management, the Company integrated advanced planning and scheduling conceptsand technologies into supply chain management, achieving automation, intelligence, and collaboration in planning through digital means,improved planning accuracy and execution efficiency.In addition, the Company has achieved the integration of business systems and the construction of data models. By integrating over 50 operationalsystems and consolidating previously fragmented data across various business segments, Sunwoda has developed over 500 data model assets.These data models provide comprehensive and accurate data support for the Company's decision-making, enabling data-driven businessoperations and management optimization.Leveraging AI and digital tools, the Company has built a big data-driven intelligent tuning self-learning system for production equipment, as well asan industrial knowledge management platform based on AI large models and knowledge graphs. These innovations have been implemented in thelithium-ion battery intelligent manufacturing production line, facilitating data-driven predictive maintenance. Through strategic deployment acrossoperations, AI technologies have driven significant improvements in quality and efficiency across the Company's operations.
Moreover, Sunwoda employs digital intelligence to support the overall operation and maintenance. The Company is building an industrial internetoperating system and promoting smart park projects.AI
DigitalTwinBig Data
EdgeComputingCloudComputing
RadioFrequencyTechnology
5G
In 2024, Sunwoda introduced a big data-driven intelligent tuning self-learning system for production equipment. During the productdevelopment phase, the Company established a monitoring system for equipment parameters and product quality data. This system employsreinforcement learning algorithms to train intelligent agents capable of autonomous tuning operations. Additionally, it ensures coordinatedparameter settings among different workstations, equipment, and production lines, ensuring the efficient and stable operation of the entireproduction system.
In 2024, Sunwoda advanced the construction of its smart park projects. The Company has established a 3D visualized digital twin system forthe parks, achieving comprehensive monitoring and management of key functions such as security, energy efficiency, traffic, environment,assets, and facilities. This project supports intelligent, refined, and efficient management, and enhances security monitoring.
In 2024, Sunwoda established an industrial knowledge management platform based on AI large models and knowledge graphs. This platformintegrates intelligent recommendation systems and large model technology, enabling rapid analysis of historical data and real-time feedback,efficiently generating process plans that accelerate product development.
Big Data-Driven Intelligent Tuning Self-Learning SystemCase
Promoting Smart Park ProjectsCase
Industrial Knowledge Management Platform Based on AI Large Models and Knowledge GraphsCase
ABCDEFG
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ISO 27001 Information SecurityManagement System CertificationGerman TISAX CertificationPassed Level 4 Assessment ofNetwork and Information SecurityModule
Sunwoda attaches great importance to information security management and insists on internalizingexternal regulations to ensure compliance. The Company has established an Information SecurityCommittee, which serves as the highest decision-making body for information security and is chairedby the Chairman of the Board. To ensure comprehensive coverage of information security management,the Company has decentralized the security organizational structure of each business department andsubsidiary. This structure clarifies responsibilities at all levels, ensuring systematic and effective informationsecurity management. In 2024, Sunwoda continuously refined its five-year strategic plan for informationsecurity, setting information security management requirements based on its own business situationand operational strategy, and optimizing multiple group security management systems to safeguardinformation security. Additionally, Sunwoda expanded its information security governance framework toinclude two additional entities: Sunwoda Vietnam and Zhejiang Xinwei Electronic.The Company has also optimized and adjusted its early warning and response measures for personnel,processes, and equipment from the perspectives of data leakage prevention and network threatmitigation. These improvements achieved comprehensive reinforcement of security policies and formed acomprehensive defense-in-depth architecture to enhance the Group's overall security posture. Furthermore,Sunwoda actively supports the information security network development at Sunwoda Vietnam, ZhejiangLixin, and Winone Pujiang Industrial Park to ensure operational resilience across the Company's expandingbusiness footprint.In privacy protection, Sunwoda continuously follows up on regulatory and customer requirementsand improves privacy protection processes, privacy notices, and other related standards to ensurecomprehensive implementation in related business systems. The Company has formulated thePrivacyProtection Management Regulationsto standardize privacy protection related to data collection, storage,use or processing, deletion, destruction, and cross-border storage and provision of personal information inits domestic and overseas operations.In 2024, Sunwoda successfully passed the ISO27001 information security management system surveillanceaudit, with 13 operational sites achieving certification. During the reporting period, the Company expandedits certification scope to four additional subsidiaries: Xinwei Intelligence, Superstar, PTL, and XinweiElectronic, further enhancing the information security awareness of all employees and the Company'smanagement capabilities.
InformationSecurity andPrivacy Protection
Information Security Defense StrategyTo better protect information security and safeguard customer privacy, Sunwoda actively implements acomprehensive information security protection system built upon two complementary pillars: securityawareness cultivation and security device interception. This multi-layered approach integrates awarenesswith hardware to create a robust information security framework.On one front, the business departments of the Group actively carry out information security training focusedon software development security and email security. These initiatives employed diverse forms such asemail delivery, micro-learning videos, assessment exams, Wechat official account blogs, informationsecurity week activities, offline training, and empowerment activities. This multi-channel approach deliversinformation security knowledge and concepts to every employee, continuously enhancing informationsecurity awareness.On the technical front, Sunwoda effectively intercepted external attacks with advanced security equipmentand an efficient response mechanism when facing external network threats, ensuring data security andbusiness continuity. In 2024, the Company successfully blocked 2 external network attack incidents throughsecurity equipment. There were no incidents of business system breaches or successful attacks throughoutthe year.
Information security training
Time(s)
Participant No.
Person(s)
7,669Assessment exam
Person(s)
WeChat blog
Article(s)
21,220Article views
Person(s)
In July 2024, Sunwoda detected large-scale scanning and vulnerability exploitation attacks initiated from external sources during routinesecurity monitoring. The attacks were successfully blocked through real-time monitoring and identification, interception by security equipment,and multi-system coordination of perimeter defense devices and perception devices. Follow the incident, analysis and remediation wereconducted to strengthen overall information security capabilities.
Product Quality and SafetySunwoda highly values product quality and safety. By establishing quality management systems and processes, strengthening hazardous substancemanagement, and promoting a quality-oriented culture, the Company enhances its product competitiveness and cultivates a positive corporatesocial responsibility image.
Sunwoda is dedicated to providing customers with products and services of excellent quality. From rawmaterial procurement and production to finished product inspection, strict standards are implementedat each link. A comprehensive quality management system has been established to achieve zeroquality-related product recalls and major production safety incidents. The Group, by introducingadvanced quality concepts and management tools, forming professional teams, conducting trainingaudits, and optimizing management processes, has established a sophisticated quality managementframework. A Quality Center has been set up as the dedicated management body for product quality,undertaking the group’s sustainable development goals, responsible for the construction, operation,and quality-related work of the Company's quality system to ensure its efficient operation andsystematically control quality-related risks. These measures effectively reduce product defect rates andenhanced product stability and reliability, provide high-quality products to customers, and establish astrong brand image.The Company has established a comprehensive product quality management system and regularlyrevises relevant regulations to align with actual management needs. In accordance with theQuality& HSF Manual and the Internal Audit Management Regulations, Sunwoda conducts an annualcomprehensive internal audit of the quality management system to promptly identify issues and takecorrective actions. The Company's ISO 9001/IATF 16949 Quality Management System certificationscover 100% of its mature production bases, while the IECQ QC 080000 Hazardous Substance ProcessManagement System covers 100% of its mature production bases in the consumer electronics and smarthardware sectors.
QualityManagementSystem
Cyberattack Prevention by Lanxi Network Shield Operation in 2024Case
In 2024, Zhejiang Winone,Zhejiang Sunwinon, andShenzhen IntelligentIndustry obtained ISO 9001and QC 080000 systemcertifications.2024
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Quality Management System
Basicsupport
Qualityimprovement
Qualitycontrol / data
collection
Quality
analysis
Quality-drivendecision-
making
To achieve intelligent quality control decision-making through the QMS platformSPC management, Real-time monitoringQuality data collection and analysis, KPI management
Customer complaint 8D analysisCorrective and preventive actions statistics
Supplier qualitymanagement
Incoming materialquality
In-processquality
Finished productquality
After-sales
system
Datacorrelation? Supplier deliveryreport? Suppliermonthlyperformance
? Supplier 8Dreport? Claim records
? Material standardmanagement? Sampling planconguration? Defect codemanagement
? Inspection
standardmaintenance? Incominginspection? Overdue
inspection? Non-
conformance
review
? Equipment andgauge ledger? Measurement
System Analysis(MSA)
? First article? Quality patrolinspection? Drop-in testing? Nonconformity
review
? QC Equipmentdata? IPQC Equipment
data? QA Equipmentdata
? Outgoinginspection? Product hold/quarantine? Return
inspection? Nonconformityreview
? Customer
complaintledger? Customerreturn ledger? Major quality
incidents
? OA: Reviewresults? ERP: Deliverynote / Supplier/ Customerinformation? MES: Workorders,Shippinginformation,Process records? Dispatch:
Receivinginformation
? Data source:Datainterconnection? Auto fetch: Automaticdata acquisition? Decision rules: Rulemaintenance? Auto alert: Decisionmechanism
Sunwoda has established a comprehensive and mature management system and processes.Through the daily management mechanism of 'three rates' (completeness rate, improvementrate, and compliance rate), the Company conducts in-depth analysis of various processes.The Company identifies key improvement measures based on pain points in operations andestablishes a dedicated inspection team at the operational level to conduct on-site specialinspections and standard teach-ins. This enhances employees' compliance with standards andprocesses and on-site management capabilities.Sunwoda has independently developed a Quality Management System (QMS) to improveefficiency and standardize quality management. This system enables the recording, statisticalanalysis, and traceability of quality data throughout the entire lifecycle, facilitating efficient digitalmanagement and providing strong support for future big-data-driven quality alerts.
QualityManagementProcess
Targeted Quality Management InitiativesSunwoda consistently implements Lean Six Sigma and QCC initiatives to improve product orbusiness processes comprehensively, achieving significant enhancements in process efficiency,quality, customer satisfaction, and financial performance.
In 2024, Sunwoda conducted Six Sigma training to enhance employees' skills and quality and improve the Company's quality management.495 employees participated in the Yellow Belt training, with a total duration of 84 hours. 371 employees participated in the Green Belt training,totaling 216 hours. Additionally, Sunwoda organized approximately 250 capability-building and coaching sessions, strongly supportingproject implementation.
The Sunwoda Quality Centerteam’s project was awardedthe "Demonstration-levelPrize" at the 2024 "ChinaQuality Innovation andQuality ImprovementAchievement ExchangeSeries" event.
Six Sigma TrainingCase
Time(s)
The amount involved in major safety and quality liability accidentdamages related to products and services during the reporting periodRMB
Number of product recalls due toquality issues
Standardmanagement
Equipment and gauge
management
Inspection dataupload
Infrastructure
2024
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Hazardous Substance Management
Non-Conforming Product Control
Sunwoda continuously strengthens hazardous substance control across the entire value chain. The Company has established relevant systems,including the Hazardous Substance Management Regulations, theTechnical Standards for Environmental Management Substances, and theHSFRisk Assessment and Management Regulations, which provide detailed regulations and guidelines for hazardous substance management inprocesses such as raw material procurement, new product development, production, packaging, storage, and transportation, ensuring that productquality meets regulatory and customer requirements. During the reporting period, the Company revised these documents to better align with actualmanagement needs.In material certification, Sunwoda actively implements hazardous substance control and conducts risk assessment and review of material hazardoussubstance compliance through the GPCM system.Only after the review is passed can the material be used in the product to ensure the safety ofproduct hazardous substance control.
Sunwoda establishes a non-conforming product control process to manage product quality strictly. During the reporting period, Sunwoda did notexperience any product recalls due to product quality issues, nor did it face any penalties from regulatory authorities for violations of laws andregulations related to product and service quality and safety.
Non-conformingproduct controlprocess
To remove from the stockingarea and label for isolation
Once materials that do notcomply with hazardoussubstance control are foundduring the production, theCompany will immediatelystop using the material andquarantine inventory, work-in-progress and finishedproducts. If it involves client-end products, Sunwoda willimmediately execute theproduct recall procedure.For suppliers with non-compliance environmentalincidents, their performancefor the month will be rated asD. Before the implementationof relevant improvementmeasures, the introductionof new products from suchsuppliers is prohibited.
Sunwoda reviews thecompliance of hazardoussubstances in productauxiliary materials usedin the production processand conduct regularsampling tests during use.
For imported materials,the Company regularlyconducts samplinginspections to ensurecompliance.During the new materialintroduction phase,the Company reviewswhether new materialsmeet the hazardoussubstance managementrequirementsof Sunwoda'sTechnical Standardsfor EnvironmentalManagement Substances.Non-conforming materialsare prohibited.
New material introductionmanagement
Imported materialmanagement
Auxiliary materialmanagement in production
Non-conforming material
treatment
In 2024, Sunwoda deeply implemented QCC activities through threeapproaches of project initiation, capability-building and coaching,and presentation competitions, achieving remarkable results. TheCompany submitted a total of 495 projects throughout the year, with494 closed, achieving a closing rate of as high as 99%. 114 capability-building and coaching activities were carried out throughout the year,totaling 403 hours and 3,131 participants. Through QCC activities, it isexpected to achieve financial benefits of RMB 37.5 million.Regarding presentation competitions, the Company successfully heldthe 13th and 14th Group QCC Presentation Competitions, covering 4sessions for team leaders and engineers, and organized 27 internalpresentation competitions within the business units.
QCC (Quality Control Circle) ActivitiesCase
To mark the batches of unqualifiedproducts and indicate the non-conformity
To identify non-conformingproducts. If harmful substancecontent non-complianceis involved, expand theinvestigation to the supplychain
To provide temporarymeasures and assesswhether risky productshave been distributedTo provide long-term correctivemeasures for the root cause andconduct a horizontal investigation
Process 1
Process 2
Process 3
Process 4
Process 5
Reporting and conrmation
Identication
Isolation
Treatment
Improvement
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In 2024, Sunwoda held a Quality Month event themed "Strengthening Quality Support and Building a New Corporate High Ground". Duringthe Quality Month, the Company organized a series of quality-related activities. Among them, the online quality knowledge quiz attracted6,935 participants, an increase of 74% compared to last year. The 6th Quality Competition saw 8,357 participants, a year-on-year increase of89%. Additionally, Sunwoda promoted and popularized quality-related videos, with 35 videos themed with quality science popularization,knowledge transfer, tool application, topic sharing, and cultural promotion, as well as 25 outstanding works from the quality-related shortvideo contest. On the "Quality Intelligent Charging Station", Sunwoda's senior executives took the lead in studying quality and safety-relatedlearning materials.
Quality Knowledge Lecture
Quality competition
Quality Month posterQuality Knowledge Lecture
DimensionContent2024 Actions and Performance
The Company designed 120 promotional materials, covering variousforms such as online promotions, posters, and videos. It distributed 28sets of staircase slogans, 30 poster frames, and 46 banners to variousbusiness units to ensure a company-wide promotion of a quality-oriented culture. Additionally, Sunwoda published 20 official WeChatposts and promotional posters related to quality and safety, with over170,000 cumulative views.Creating a strong quality-oriented culture through diversepromotional methods
The Company conducted the "Quality Knowledge Lecture" andother related training sessions, with a total of 6 sessions and 1,627participants. The Company conducted the "Morning Star QualityKnowledge Training Series" with a total of 3 public classes and acumulative training attendance of 268 people."Quality Knowledge Lecture""Morning Star Quality KnowledgeTraining Series"
A total of 572 proposal improvement activities participated in the 4thProposal Improvement Rating Conference.27 projects from 20 suppliers participated in the 2nd Supplier QCCPresentation Conference.The 4th Proposal Improvement RatingConferenceThe 2nd Supplier QCC PresentationConference
Reducing the Charge/Discharge Defect Rate of the D8X ProjectBattery won the gold award.The paperDeveloping a New Device for Battery Leakage Detectionto Reduce Labor Costs was awarded the Silver Prize.2024 Shenzhen Quality ManagementTeam/Quality Trustworthy TeamExperience Exchange Meeting
Sunwoda successfully held the Quality Month event themed"Strengthening Quality Support and Building a New Corporate HighGround".Quality Month eventQuality Star selection
Quality and Safety Month Event Successfully HeldCaseSunwoda is committed to fostering a comprehensive and in-depth quality-oriented cultureand atmosphere through multi-dimensional initiatives. During the reporting period, the Groupcomprehensively advanced the construction of quality-oriented culture from five major aspects:
quality culture promotion, multidimensional cultural activities, quality specialized training, qualityimprovement competitions, and quality brand building. The integration of quality concepts andculture with Sunwoda's business strategy was deepened, promoting the Company's qualityculture construction and supporting the sustainable development of the Company's operations.
Fostering a Cultureof Quality
Quality culture
promotion
Multidimensional
culturalactivities
Qualityspecialized
training
Qualityimprovementcompetitions
Quality brand
building
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Response to SDGs:
Key ESG Topics in this Chapter:
Talent management and developmentOccupational Health and SafetyResponsible supply chain managementIndustry cooperationRural revitalization and social contribution
PARTNERSHIP
People-Oriented,Shared Prosperity
Sunwoda prioritizes the wellness and health of "people", adhering to apeople-oriented approach and considering the growth and development ofemployees as the cornerstone of corporate management. The Companypromotes responsible supply chain management and collaborates with partnersfrom all sectors of society to empower each other and jointly carry out sustain-able cutting-edge practices. Additionally, as a corporate citizen committed tosocial responsibility, Sunwoda is deeply involved in public welfare and widelycarries out charitable actions to create shared value for the whole society.
Cultivating a Vibrant WorkplaceSunwoda adheres to a "people-oriented" management philosophy and has established a Human Resources Center to continuously strengthentalent development and management, with the goal of achieving industry-leading key stakeholder satisfaction in alignment with the Company'svision and mission. The Company adopts the compensation management system and performance management system as leverage to stimulateemployees' value-creation capabilities. The Company uses the competency management system to drive employees' capability enhancement andcareer development. A healthy and happy work environment is built through diverse employee engagement activities. Through comprehensive talentmanagement activities, Sunwoda promotes human capital growth and the achievement of its vision and mission.Human Resource Management Strategic System
HumanEciencyImprovement
RecruitmentandDeploymentCompetencyManagementMotivationManagementWorkplaceClimateManagementEmployeeRelations
CompensationManagement
AbilityAssessmentCompetencyModelQualicationCompetencyCertication
TalentReviewTalentSuccession
Pipeline
IDP
PerformanceObjectivesPerformanceEvaluationFeedback andImprovementCadre Team/Expert Team/Worker TeamHuman Resource Information Management System / Human Resource Control System
Job GradeManagementTotalCompensationManagementIncentiveMechanismDesign
LaborRelationsEmployeeWellbeingWorkforceStability
erformanceManagement
Vision and Mission
alentDevelopment
StrategicCulture
ProcessOrganization
PersonnelManagement
Corporate Strategies andCore Business ProcessesCorporate Business Objectives
and Key Performance
Corporate StrategicObjectives
Work AnalysisOrganizational Structure
Corporate Values
Employees Rights andInterests Protection
Sunwoda always prioritizes the protection of employees' rights and interests,standardizing management in areas such as recruitment and dismissal, compensationandbenets,workinghoursandholidays.TheCompanyhasestablisheddiversedemocraticcommunicationchannelstolistentoemployees'voicesandeectivelysafeguard their legal rights and interests.Responsible Employee Framework
Diversity and Equality
Sunwoda is committed to building a legal, fair, and inclusive employment management system, strictly adhering to theLabor Law of the People'sRepublic of China,the Labor Contract Law of the People's Republic of China, and other laws and regulations. Sunwoda continuously formulates andimproves its human resource management system and various employment protection mechanisms, respecting and safeguarding employees' legalrights and interests. During the reporting period, Sunwoda achieved a 100% labor contract signing rate.Sunwoda consistently maintains ethical hiring practices, pledging to comply with the core conventions of the International Labour Organizationwhilesafeguardingemployees'laborandhumanrights.TheCompanyprohibitstheemploymentofchildlabor,forcedlabor,humantracking,and slavery. The Company has established regulations forChild Labor Rescue, Juvenile Workers, and Female Employees Protection,with a strictrecruitment review mechanism to ensure the elimination of child labor and underage workers, reinforcing employment compliance at the source andmaintaining zero tolerance for forced labor.In addition, Sunwoda has formulated and strictly implemented theAttendance Management Regulations, standardizing the overtime approvalprocess, and strictly adhering to the national statutory working hours and holiday regulations, thereby safeguarding employees' rights to rest andleave. The Company has established theManagement Regulations on Reward and Penalty,clarifying the rules for employee misconduct related toprofessional conduct, personal behavior, attendance, and moral conduct, standardizing employee behavior, and establishing an appropriate andpositive value orientation.
Sunwoda is committed to creating an equal, diverse, and innovative work environment, with zerotolerance for any discrimination, striving to build a corporate culture based on honesty, mutual trust, andinclusiveness. In recruitment, compensation, training, promotion, and other aspects, the Company strictlyfollows the principles of fairness and justice. Sunwoda resolutely eliminates discrimination or unfairtreatment of employees based on age, disability, ethnicity, gender, marital status, nationality, politicalaliation,race,religion,orunionmembership.TheCompanyensuresequalpayforequalwork,eectivelysafeguarding employees' legal rights and interests and creating a diverse, equal, and fair workplace.In protecting the rights and interests of vulnerable and underrepresented groups, Sunwoda has establishedwelfarepoliciesforemployeeswithdisabilitiesandoerstargetedsupportactivitiesduringimportantholidays. For female employees, the Company carries out various types of care activities to safeguard theirrights and interests.
In 2024, Sunwoda was honoredwith the provincial andmunicipal employment basefor people with disabilitiesrecognition.
By GenderPerson(s)
By AgePerson(s)
By education backgroundPerson(s)
By professional disciplinePerson(s)
Male
Under 30
Below associate's degree
Production
Technical
Bachelor
Adminis-trative
Sales
Finan-cial
MasterPhD
30-50 years oldOver 50
Female37,645
27,454
32,313
36,856
8,389
9,550Associate9,974
7,961755
2,308147
25,976862
16,647
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As of the end of the reporting period
In 2024, Sunwoda's trade union carried out several innovative initiatives to promote the protection of female employees' rights. It collaboratedwith the Guangming District Federation of Trade Unions to provide free breast and cervical cancer screenings for female employees. Meanwhile,onInternationalWomen'sDay,activitiessuchasonlineraesandDIYcraftcourseswereorganizedbasedonthedieringneedsoffemaleemployees in production lines and functional departments. These services and activities ensured the physical health of female employees,enriched their work-life experiences, and enhanced their sense of happiness and belonging.
In 2024, Sunwoda continued to support for employees from vulnerable groups. Sunwoda collaborated with the China Disabled Persons'Federation to donate necessary living items to disabled employees. At the same time, the Company arranged psychological counselors tooermentalhealthcounselingforemployeeswithdisabilities.Thesemeasuresfacilitatedbetterworkplaceintegrationandqualityoflifeimprovementsforaectedpersonnel.Through a needs-based assessment framework, Sunwoda delivers customized support plans for employees with disabilities. This targetedapproach ensures optimal resource allocation while demonstrating the Company's commitment to precision care for special needs groups.
Breast and Cervical Cancer Screenings
Flower Delivery Activities on the Production Line
Handicraft DIY Activities
Compensation and Benets Framework
Sunwoda strictly complies with relevant national laws and regulations andhasformulatedtheRemunerationandBenetManagementRegulations.TheCompanyhasestablishedascienticperformancemanagementsystemcombiningobjective-based management with a dual evaluation mechanism that integrateskey performance indicators with core competency capabilities, optimizing thecompensation management system. In 2024, Sunwoda updated its compensation andbenetsmanagementpolicy,enhancedemployeewelfarestandards,strengthenedthe incentive mechanism, and promoted talent retention.
Thecoveragerateofthe"vesocialinsuranceandone housing fund" for the Company's regular full-timeemployees was100%, and the coverage rateof commercial insurance was also100%.
SunwodaoersacomprehensivebenetssystemgovernedbyitsRemunerationandBenetsManagementRegulationsandtheManagementRegulations on Social Security and Housing Accumulation Funds, ensuring the system's fairness and transparency. The Company’s comprehensiveframeworkextendstoallfull-timeemployeesandcontractworkers,ensuringequitableaccesstohigh-standardbenetsthatsignicantlyimproveemployeesatisfaction.Sunwodafullycoversthenationalstatutoryvesocialinsuranceandonehousingfundforfull-timeemployees,aswellascommercial insurance including accident insurance and life insurance, ensuring that employees enjoy stable social security. For special groups suchasinternsandre-employedretirees,Sunwodaprovidescommercialinsurancesuchasaccidentinsuranceandlifeinsurancetoeectivelysafeguardthe legal rights and interests of workers and comprehensively protect employees' health and safety.
Sunwodaalsoprovidesallregularemployeeswithdiversiednon-salarybenets,suchas:
Inaddition,Sunwodacontinuestoreneitsmid-andlong-termincentivemechanisms.In2024,Sunwoda stepped up the equity incentives. During the reporting period, the Company introduceda Type II restricted shares plan, granting 14.5933 million shares to 726 employees. The Companyhas completed the stock incentive plan with 981,000 shares to 642 employees.Position-based payBasesalary
Performance bonuses, commissions,project bonuses, quarterly bonuses,overtime compensation, year-end bonuses
Shares, options, dividendrights, etc.
86%The Company's equity incentivehas coverage of core personnel
Five social insuranceand one housing fundStatutoryBenets
Non-statutorybenets
Department benets
Personal benets
Statutory holidays
Full coverage of pension insurance, medical insurance, unemployment insurance,work-related injury insurance, maternity insurance, and housing provident fundStatutory holidays and paid leave in accordance with national regulations
Monthly budgetMonthly discretionary activity budget allocated to the department
HolidaybenetsGifts or subsidies for festivals such as Spring Festival and Mid-Autumn Festival
Annual healthcheck-ups
Annual health check-ups for employees
Year-Endcelebration fund
Funds for year-end appreciation events or celebrations
Commercialinsurance
Additional commercial insurance for employees
Performancerewards
Merit-based incentives for employees demonstrating exceptional contribution
Travel fundAnnual travel activity funds for the department
Diversesubsidies
Multi-faceted allowances structure including night shift allowances, accommodationallowances, catering allowances, seniority allowances, and more than ten other items
Housing andcommuting support
Housing subsidies, transportation subsidies, etc.Specialized talentretentionbenets
Housing for talents, government subsidies, etc.
Highlighted Performance
Variable
pay
Long-termincentives
Female Care InitiativeCase
Care for Employees from Vulnerable GroupsCase
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2024
Democratic Management
Sunwoda has established and strictly implemented internal governance frameworks such as the Management Regulations on Freedom ofAssociation and Collective Bargaining of Sunwoda and the Management System of Sunwoda Workers' Representatives Convention. The Companyis committed to strengthening the democratic supervision mechanism, and respects every employee's right to freely form and participate in tradeunionsandengageincollectivebargaining,eectivelysafeguardsemployees'legitimaterightsandinterests.Sunwoda ensures smooth communication between employees and management through Workers' Representatives Convention, employeedialogue forums, employee reception days, etc. The Company regularly convenes the Workers' Representative Convention according to establishedprocedures,withsignicantissuesundergoingdemocraticdecision-makingprocessesfollowedbypublicdisclosure.Duringthereportingperiod,Sunwoda held 120 employee dialogue sessions and 30 employee reception days, collecting 300 suggestions from dialogue sessions. To addressthese issues, the Company prioritized these concerns through systematic categorization and analysis, clarifying the nature of the problems and theresponsible departments and following up on their resolution.Collective agreements were formed through processes such as topic collections and discussions, coordination between labor and management,conveningtheWorkers'RepresentativesConventionfordeliberation,signing,publicdisclosure,andregulatoryling.Theseagreementsexplicitlyaddressissuescloselyrelatedtoemployees'rightsandinterests,likeemployeecompensation,insuranceandbenets,andlaborsafetyandhealth.In 2024, the Company initiated the Workers' Representatives Convention, where participants signed the updated collective contract. During this periodand in the future, if there are adjustments to policies, regulations, or internal rules, Sunwoda would promptly initiate collective bargaining to ensurethecontinuedadaptabilityandeectivenessoftheagreement.
Sunwoda attaches great importance to employee satisfaction and dedication. The Company conducts dedication/satisfaction surveys every yeartocomprehensivelyevaluateemployeeengagementfrommultipledimensions,suchascompensationandrecognition,leadershipeectiveness,professional development opportunities, and culture alignment, providing data support and decision-making basis for continuously optimizinghuman resource management and enhancing employee happiness and satisfaction. In 2024, the survey score reached 4.25 on a 5-point scale. TheCompany will continue to track engagement and satisfaction performance, taking proactive improvement measures to create an increasingly positiveand inclusive workplace environment for employees.
Sunwoda fully respects and supports all legal forms of group activities organized by employees,without any interference. The Company embraces a "people-oriented" approach by optimizingcommunication channels for employees and improving its formal grievance resolution system.Sunwoda has set up a union hotline at 51880, allowing employees to provide feedback and seekassistance conveniently. The Company has also established a specialized team for employees tofacilitate independent third-party grievance resolution when necessary.
In December 2024, Sunwoda held the The First Session of the 2nd Workers' Representatives Convention in order to implement the democraticmanagement mechanism. One of the primary agendas was to sign the collective bargaining agreement and deliberate on multiple issuesrelated to employees' rights and interests, such as reward and punishment management regulations, safety reward and punishmentmanagement details, and the reform plan for Sunwoda employee catering.
Signing of the collective agreementOn-site voting
100%
100%
Labor dispute settlement rate
Mediation success rate
Formal grievance resolution channels
Online channels
Team communicationchannels
Oine channels? Employee wellbeing
system? OA? Enterprise WeChat
? Panels? Employee ReceptionDay
? On-site grievancemechanism? Phone? Email? Mailbox
Sta Training and Development
Talent Acquisition and Retention
Promotion and Assessment
Sunwoda adheres to the principles of "equity and procedural fairness" in its employee recruitmentand dismissal processes. The Company employs data-driven workforce planning methodologiestoanticipatetalentrequirementswhilecontinuouslyincreasingeortstoattracttalentthroughdiversiedchannelstoeectivelyaddressfutureorganizationalcapabilities.Sunwoda'srecruitment channels mainly include social recruitment and campus recruitment. Among them,social recruitment is conducted through various methods such as internal referrals, externalrecruitment platforms, targeted recruitment fairs, talent markets, and outsourcing.In addition, to align with its global industrial layout, Sunwoda actively promotes local talentstrategies in overseas recruitment. In response to the job demands of local industrial parks, theCompany has equipped a professional local HR team responsible for talent acquisition to betteralign with local business needs. For positions that require overseas assignments, Sunwodaadheres to the principle of "adaptability" by recruiting domestically. Once employees are familiarwith the relevant work content, they will be arranged for overseas assignments. The Companyprovides support for employees' integration into the local environment.Sunwoda prioritizes talent development and is committed to building a multi-level, structuredsuccession talent framework. During the reporting period, the Company continuously optimizedits comprehensive talent architecture, categorizing employees into managerial, professionaltechnical,andoperationalspecialistcategories,establishingauniedandsmoothcareerprogression pathway, and clarifying a promotion mechanism oriented towards value creation. Byestablishing a comprehensive evaluation standard that includes ethics, performance, experience,and competency, Sunwoda provides clear promotion guidance for employees. The Companyhas standardized the promotion appraisal process and established a three-tiered appraisalmechanism at the company, sector, and department levels.The Company has also established a comprehensive performance appraisal system covering allemployees, with monthly, quarterly, and annual assessments. For non-managerial employees,a dual-dimensional appraisal model of "self-assessment + supervisor evaluation" is adopted.Performance ratings and corresponding multipliers are determined using key metrics, includingattendance and work indicators, which directly inform variable compensation calculationswithin the Company's pay-for-performance framework. At the same time, the annual employeeassessment adopts a 360-degree evaluation method, comprehensively assessing employeeperformance throughout the year, rating performance levels, and ensuring that assessmentresults are closely linked to employee annual awards, promotions, performance bonuses, andother development indicators.
Campus recruitment hired
employees
Recruitment of peoplewith disabilities
job opportunities
Veteran recruitment sessionsparticipatedsessions
Overseas recruitmentsessions participatedsessions
137%
Campus recruitmentincrease compared to theprevious year
During the reporting period
The First Session of the 2nd Workers' Representative ConventionCase
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Promotion and AssessmentTalent Development System
Learning Platform Development
To better promote the implementation of the Company's overall development strategy and human resourcesstrategy, in 2024, Sunwoda optimized and upgraded the employee training and development strategicplanning and empowerment system. This enterprise-wide system encompasses all full-time personnellevels and features targeted capability-building programs, including strategic business acumen, criticalcompetency development, leadership acceleration, technical and functional expertise enhancement, andnew employee integration. The framework is supported by optimized processes and resource infrastructureacross diverse operational contexts, with particular emphasis on strategic business priorities and high-potential talent development, helping Sunwoda's "strategies" implementation.In internal training, Sunwoda focuses on supporting strategic implementation, business development, andthe enhancement of human capital as core objectives. A series of training programs have been developedforemployeesandmanagementatdierentpositionsandlevels.Thetalentempowermentsystemcoversvariousareas,includingnewemployeeonboardingtraining,technicalprociencyprograms,andleadershipadvancement,utilizingblendedonlineandoineformatstoensureexibilityandeectivenessintraining.For external stakeholders, Sunwoda provides tailored and professional technical and management trainingsolutions for clients and partners that closely align with business expansion and customer service strategies,helping external collaborators enhance their capabilities and achieve mutual development.
Additionally, Sunwoda deeply implements its digital strategy, integrating digitalization into the corporate training system, creating a technology-enabled,data-drivenlearningplatformthatpromotesrenedtrainingmanagementandpersonalizedlearningpaths,thusprovidingstrongsupportfor employee growth and corporate development.
In 2024, Sunwoda piloted the development of a knowledge management system in the R&D field, accumulating over 30,000 knowledgeentries and conducting specialized training covering more than 100 participants. The Company simultaneously launched a knowledge-sharingplatformatthegrouplevel,workinginconjunctionwiththeknowledgemanagementsystemtoenhancetheeciencyofknowledgeacquisition, sharing, application, and reuse at Sunwoda.
The "Sunwoda Learning Platform" is a learning platform independently developed by Sunwoda, primarily addressing key issues such ascustomer compliance verification, and information security management through digital training delivery. The third phase of platformdevelopment was launched in 2024, adding features such as points management, job learning pathways, and external training. Through thesefeatures, the Sunwoda Learning Platform provides employees with a clear growth path, bridging the gap between theoretical learning andpracticalapplicationandhelpingenterprisesbuildanecientlearningorganizationthatfullysupportsbusinessinnovationandsustainabledevelopment.
Xindong R&D Knowledge Management Empowerment ConferenceXinwei R&D Knowledge Management Empowerment ConferenceStrategicscenariosCoreCapabilityDomains
Empowerment
for leaders
ProcesssupportResourcesupport
Technical/Skill developmentNew employees
Digitalization, intelligentization, internationalization, yong workforce ,advanced training classes...
Frontline ManagementMiddle managementManagement transformation,team management
Cultural inheritance,management discussions, caseanalysis
Learning development
SunwodaLearningPlatform
Knowledgesharingplatform
Case studies
repository
Venue andequipment
Learning deliveryLearning assessmentInternal trainer managementProject managementKnowledge management
R&DQualityProjectManufacturingEngineering
…IPD R&Dinnovation
SixSigma
Projectmanagement
Leanproduction
Experienceinheritancein equipmentupgrades
Strategy implementation supportFocus on key strategic businesses andleadership talent developmentOrganizational empowerment orientedtowards business and positionsSystematical business operational capabilityenhancementBased on the Company's integratedleadership competency frameworkTiered certification system for capabilitydevelopment, strengthening middlemanagement capacityPosition-oriented skill empowermentExamination-driven training to enhancecapabilities of both new and existingpersonnelCultural value transmission and new talentcultivationCreating an inclusive environment wherenewcomers from diverse backgrounds feel athomeOrganizational capability enhancementthrough digital enablementImproveorganizationallearningeectiveness
participantsparticipants
positionsH
1,812 pretests879 courses
6,827certicates17rst-leveldepartments,
executing 721 items
171,000
+
30,100
+
+
Platform operationPhase III development
Creditapplication
Learning map
application
Training datavisualizationGovernment
subsidyreview
Group-wideGovernanceof External
TrainingIn-house training tracking
Online course learningSolving Five Major ChallengesExam management
Issuanceofjobqualication
certicates
100%Employee trainingcoverage rate in 2024 :
Sunwoda Knowledge Management System and Knowledge Sharing PlatformCase
Sunwoda Learning PlatformCase
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2024
Talent Succession Pipeline
Sunwoda has established a multi-level training and development plan, establishingsystematic leadership development pathways that build a robust talent pipeline whileenhancing leadership capabilities throughout the organization.
StageTraining projectsMain tasks
Foundationbuilding: fromnew recruit tooperational teammember
Morning Star GraduateDevelopment ProgramEmployee onboardingtraining
Corporate cultureorientation andintegration fornew employees
Professionaldevelopment: fromteam member to keycontributor
Managementtraineeprogram
Development of professionalcompetencies and projectmanagement abilities
Leadership transition:
from key contributor toteam leader
Leadershiptransformationprogram
Leadership successionplanning and developmentManagement role transitionenablement
Advanced leadershipdevelopment: fromteam leader todepartment director
Leadershipadvancementprogram
Professional capabilityenhancementBusiness operationssimulation training
Executiveleadership
Executivedevelopmentprogram
Strategic leadership philosophycultivation and advancedmanagement studies
Sunwoda launched the Morning Star Graduate Development Program, which focuses on cultivating professional awareness as the core ofgeneral knowledge and skills and professional technical capabilities centered on job requirements for graduates, enhancing their professionalqualities and accelerating their transition from academic to corporate environments.During the reporting period, 141 people joined the Program. The Company adopts a four-step training model to foster a "star" by strengtheningprofessional skills, enhancing communication abilities, and assisting in discovering and nurturing young talents.The opening ceremony of Sunwoda's "Management Trainee Program (Phase I)" was held at Longtian School of Shenzhen Xin'an Middle School(Group). This program is a key talent initiative for the company's future development, aiming to select outstanding young individuals, empowertheir growth through on-the-job practice, mentorship, and systematic training, and entrust them with important responsibilities in the future.Nearly 200 participants, including group executives, mentors, and trainees, attended the ceremony. Vice presidents and above were appointedas mentors, and a traditional apprenticeship ceremony was conducted. After speeches by mentor and trainee representatives, founder WangMingwangpresentedagstothreetraineeclassesandexpressedexpectationsforthetrainees.ThisprogrammarksasignicantstepinSunwoda's talent development strategy, reserving core strengths for future growth.
Over100Sunwodamanagementtraineesunderwentatwo-dayintensivetrainingattheLanxiIndustrialPark.Ontherstday,participantsvisited the ancient Youbu Town (1,000-year history) to experience local morning tea culture and enhance teamwork through six check-in pointtasks. They then toured Liwei and Lixin Industrial Parks to gain in-depth understanding of full business processes. Evening activities includeda running camp promoting healthy work concepts. On the second day, CEO Xiang Haibiao lectured on "Career Planning", systematicallyexplaining career development methods by sharing personal experiences and growth cases. This training combined cultural immersion,operational practice, and professional guidance to accelerate trainee development, injecting new vitality into the company's talent pipeline.224,117
Total training hours
hours
First Management Trainee Program LaunchedCase
Trainees Conducted Lanxi Training Integrating Cultural Experience and Professional LearningCase
"Morning Star" Graduate Development ProgramCase
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Industry-Education Integration Model
Sunwoda deeply practices the strategy of integrating industry and education, guided by industrial demand and merging educational resourceswith corporate practices. Sunwoda has established a department dedicated to cultivating new craftsmen through practices such as the "Four-PillarModel" and the "Triple Blue Plans." This integrates industry and education, deeply connecting corporate production standards and technical skillrequirementswitheducationalteachingprocesses,formingatrainingsystemcharacterizedbyuniedstandards,resourcesharing,andadual-mentor model. The Company comprehensively enhances the quality of skilled talent training through joint curriculum design, textbook development,and training base construction, providing high-quality, job-ready talent support for the development of industrial chain clusters and creating a win-win new situation for school-enterprise cooperation and skill training.
The "Triple Blue Plan" is applicable not only to the preliminary training of interns from vocational secondary schools, technical colleges, andundergraduateinstitutionsbutalsototheadvancedtrainingoftechnicians,technicalsta,andassistantengineerscurrentlyemployedatSunwoda.Through strategic partnerships with educational institutions, the Company implements early-stage talent development programs that integrateindustry requirements, student career trajectories, and industrial cluster workforce needs. This approach incorporates industry-relevant resourcesinto academic environments through collaborative curriculum development, dual-instructor systems, and joint training facilities, enabling deepengagement from educational institutions, enterprises, and students to achieve synergistic development outcomes. For example, the LithiumBattery Excellence Engineer Joint Training Program with Dongguan University of Technology features a "Three Co-creation Model" where partnersjointly develop and implement industry-relevant coursework, co-supervise graduation projects, and collaboratively optimize operational processes,establishing an excellence engineering talent community that pioneers innovative "new craftsman" development methodologies.
The Company develops occupational standardsbased on the technical skills and professionalcompetenciesrequiredbyspecicjobpositionsorjob families, ensuring standards align with actualworkplace requirements.
Guided by high-quality curriculum requirements, theCompanyselectsanddevelopsagroupofhighlyqualied,specialized, and capable technical experts and educators,empowering both corporate mentors and school teachers,and strengthening its dual-instructor teaching workforce.This emphasizes cooperation with educational institutions tobuild a dual-instructor team through mutual integration.
The Company collaborates with educational institutionsto build integrated industry-education curricula based onestablished occupational standards, aligning teachingstandards with occupational standards, teaching contentwith industry needs, and teaching processes withproduction processes.
According to the technical skills and professionalqualities required by occupational positions (groups),the Company has established three types of trainingbases as preliminary and transitional stations forcultivating new craftsmen, solidifying a high-qualityand rapid growth platform.
Sunwoda collaborates with multiple vocational/technical and undergraduate institutions to develop teaching materials and practical trainingmaterials,amongwhichvelithiumbattery-relatedtextbooks,includingIntroductiontoEngineeringThinkingandMethodsandMaterialsandDesign of Lithium-Ion Batteries, have become standard instructional resources for undergraduate engineering excellence programs.
TheInitiativeadoptsatrainingmethodthatcombinesoineclassroominstructionwithactionlearningprojects,involving240employeesacross 11 business units, with 11 practical instructors participating, resulting in 107 proposal improvement reports.
Curriculum-Informed Instructor Development
Position-Based Standard SettingStandard-Based Curriculum Development
Job-Oriented Training Environment Establishment
Four-Pillar
Model
Asasupportandexpansionoftheindustry-educationintegrationtrainingmodel,Sunwodaoerseducationaladvancementopportunitiesandexternalcerticationofprofessionalskillsforallfull-timeemployees,ensuringthat all employees have the opportunity to participate, thereby aiding in developing and training more high-skilled talents. At the same time, the Company provides a variety of support methods, through skills competitions,new apprenticeships, and other innovative measures, to strengthen internal publicity and encourage employeestoparticipateinacademicqualicationimprovementandexternalqualicationcertication.
To provide employees with broader career development opportunities and improve their overall talent capabilities, Sunwoda partners withseveral schools to establish pilot classes for the modern apprenticeship system and carry out educational advancement initiative. The Companyhas collaborated with Shenzhen Vocational School of Continuing Education and Training and Guangdong Communication Polytechnic toestablish a dual-system vocational college program. The school-enterprise partnership has jointly built training facilities, conducted dual-instructor training, organized company visits, and produced 13 integrated industry-education textbooks. Meanwhile, the Company has alsopartnered with The First Vocational Technical School of Shenzhen to establish a Dream Craftsman Class. As of the end of the reporting period,after three years of joint training, 21 individuals successfully graduated from the dual-system vocational college program and obtainednationally recognized credentials, with 18 individuals continuing their employment with Sunwoda, representing a retention rate of 78%.
Dream Craftsman ClassDual-System Vocational College Program
Gold Team Leader Excellence InitiativeCase
Educational Advancement InitiativeCase
Developing Educational Materials Adopted as Official Undergraduate EngineeringCurriculum ResourcesCase
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TheCompanysupportsandencouragesallemployeestoparticipateindegreeprogramsandexternalqualicationcerticationassessmentsandprovidescerticationsofvocationalskilllevelformultiplepositions.Foremployeeswhopassthecertication,theCompanyoerscorrespondingsubsidies and rewards to motivate continuous learning and growth.In2024,SunwodaobtainedthequalicationforindependentevaluationofprofessionaltitlesinlithiumbatteryengineeringattheassociateprofessorlevelandbelowinShenzhen,andconductedtherstbatchofindependentevaluation,with35individualsbeingawardedtitles.TheCompanypromotedthedevelopmentoftechnicalandskilledtalents,implementing"singleevaluation,dualcerticates",with17individualsobtainingbothcerticates(professionaltitlecerticateandvocationalskillqualicationcerticate).
In 2024, Sunwoda hosted the "Revitalization Cup" BatteryManufacturing Professional Skills Competition in JiangxiProvince, providing a platform for employees in the batterymanufacturing industry to showcase their skills and engagein learning and communication. This competition hasreceived widespread attention and positive responsesfrom all sectors of society, with a total of 86 participants.The competition focuses on the intelligent operationand maintenance of the smart production line for newenergy battery PACK, a typical battery manufacturingprocess, which aims to assess contestants' comprehensiveabilities related to the network planning design, securityprotection planning, intelligent manufacturing operationand maintenance integration, debugging, data collectionand monitoring, security alarm indicators and thresholdsystems, equipment and production line health assessment,production line working environment early warning, andreal-time operation monitoring, as well as their adaptabilityand professional qualities in practical scenarios. In the end,the contestant from Nanchang Sunwoda emerged as thechampion in the employee group.
In 2024, Sunwoda established a new apprenticeship professional skills training program, piloting it in two major business departments andbuildingafour-in-onetrainingsystemof"onlinecourses+oinetheory+practicaloperation+on-the-jobtraining",withatotalof286peoplecompleting the training.
Independent Evaluation of Professional Titles
Theoretical Knowledge Examination for Maintenance Machinists
Comprehensive Competency Evaluation of BatteryManufacturing TechniciansPractical Skills Evaluation for Battery Testing Technicians
A total of1,193
employees registered for thevocationalskillqualicationcertication,with1,001
passing, including
seniortechnicians.
"Revitalization Cup" Battery Manufacturing Professional Skills CompetitionCase
Modern Apprenticeship Training ProgramCase
During the reporting period
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Employee Wellbeing
Sunwoda has established a "three-in-one" corporate culture communication system, forming a multi-dimensional communication matrix throughocialWeChataccounts,shortvideoaccounts,andthesemi-annualpublicationSunwodaPeople.Ontheculturaldisseminationfront,theWeChataccounts and video channels deliver weekly high-quality content and monthly themed cultural initiatives to promote corporate culture; while theSunwoda People publication deepens cultural heritage through its "Craftsmanship Legacy" special edition, showcasing employee excellence.Additionally, the Corporate Culture Department collaborates with multiple business units to create a cultural promotion matrix through 11communication sub-programs. Throughout the year, 213 articles were published, generating over 850,000 total views and clicks.In developing feedback mechanisms, the Company conducted an enterprise-wide corporate culture survey with three assessment dimensions:
"concept recognition", "activity engagement", and "environment satisfaction", collecting 5,195 valid responses. By establishing a "request-response-improvement"closed-loopmechanism,employeesuggestionsweretransformedintospecicculturalinitiatives,indeedevolvingcorporateculture from "one-way delivery" to "bilateral engagement." This approach builds development consensus through active listening and enhancesorganizational warmth through continuous improvement.In 2024, Sunwoda comprehensively launched the "Spring Rain Nurtures Hearts" employee care program, establishing a multi-dimensionalhumanistic care system. Throughout the year, the Company meticulously organized 28 distinctive activities across 5 major categories, includingthe sixth "Cultural Festival" showcasing employee talents, the "Innovation Competition" stimulating employee creativity, the "Choral Competition"fostering team resonance, company-wide sports events strengthening team cohesion, and prestigious annual ceremonies and celebrations.During the reporting period, the Company developed 17 specialized care initiatives, creating a comprehensive care network covering over 50,000employeesacrossallnationalindustrialparks.Statisticsshowthattotalonlineandoineparticipationintheseculturalactivitiesexceeded50,000person-times, with all Sunwoda employees jointly participating in and practicing the corporate culture. This created a vibrant environment where"springrainnurturessilently,andcaretoucheshearts,"eectivelyenhancingemployees'senseofbelongingandorganizationalcohesion.
To improve the quality of catering services and ensure that employees can enjoy a healthy, delicious, and safe dining experience, Sunwodaestablished the Catering Supervision Committee, provided professional training for committee members and supervisors, dedicated tocomprehensive supervision and optimization of catering services through a series of measures. In 2024, the Catering Supervision Committeeencouraged employees to actively participate in catering supervision and learn more dietary knowledge by conducting activities such as the"Clean Plate Campaign" and hosting the "3rd Chef Competition" .
In 2024, Sunwoda held the 3rd Sports Meeting. The event attracted active participation from employees across various departments. The sportsmeetingincludedtrackandeldevents,funevents,andteamtug-of-war.Thismeetingnotonlyenhancedemployees'physicaltnessbutalsofurther promoted collaboration and friendship among teams, fostering a spirit of striving for progress.
Sunwoda organized internal and external cultural performance activities involving over 60 employees. Through various forms such assinging and dancing, skits, and short plays, the corporate culture was integrated into the performances to enrich employees' recognition andunderstandingofSunwoda'sphilosophythroughthesediverseexpressions.Theactivityeectivelyenhancedteamcohesionandcreatedawarm and positive working atmosphere.
3rd Chef CompetitionCatering Supervision Committee Inspection Visits
Catering Supervision CommitteeCase
3rd Sports MeetingCase
Cultural PerformanceCase
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Targeting employees' children, Sunwoda launched the "Tongxin Cooperation" series projects, including brand activities such asthe "Sunshine Youth Growth Camp" and the "Sunshine Youth Summer Camp," actively assist remote employees in overcomingthe challenge of childcare during the summer, and provide diverse opportunities for science education and communication tosafeguard the healthy growth of teenagers.? Sunshine Youth Growth CampSunwoda has held the "Sunshine Youth Growth Camp" for three consecutive sessions, inviting employees' children toreunite with their parents at Huizhou Park. During the camp, the Company provides a variety of courses for the children,including summer homework guidance, music, dance, painting, handicrafts, and safety education, caring for the growth anddevelopment of the children.
OccupationalHealth and Safety
Sunwoda builds a comprehensive occupational health and safety management system andregularly conducts safety training and emergency drills. The Company creates a safety cultureatmosphere while strengthening emergency response protocols and occupational diseaseprevention measures, ensuring that every employee works and grows in a healthy and safeenvironment.Improving Management SystemSunwoda strictly adheres to the Law of the People's Republic of China on Prevention and Control of Occupational Diseases, the Fire Protection Lawof the People's Republic of China, the Work Safety Law of the People's Republic of China, and other laws and regulations, continuously improvingits occupational health and safety management system. The Company has established a PDCA management process for occupational health andsafety,continuouslyimprovingthequalityandeciencyofitsmanagementpractices.Duringthereportingperiod,25subsidiariesobtainedISO45001OccupationalHealthandSafetyManagementSystemcertication.Sunwoda accelerates its digital transformation of work safety by launching the EHS digital platform. This platform features automatic informationretrieval and updates and automatic task reminders in the "dual prevention mechanism," "holiday safety control," and "special permits management"modules.In2024,theCompanyconstantlystrengthenedsmartmanagementandpromotedtheintegrationofsafetyandrecontrolwithAIvideomonitoring,makingsignicantprogressintimelyeliminatingrehazardsandmonitoringroadsafetyandemployeemisconducts.In addition, Sunwoda continued to strengthen the occupational health and safety management of suppliers by regularly conducting audits ofsuppliers' occupational health and safety management systems. During the audit process, if any non-conformities are found with the supplier,Sunwodawillpromptlyinformthesupplierandconrmtheissuesidentiedintheaudit,ensuringthatthesupplierhasaclearunderstandingandacknowledgment of the non-conformities. At the same time, the Company will strictly review the corrective actions submitted by the supplier andprovide guidance when necessary to assist the supplier in completing the closed-loop improvement.
The environment where theorganization operatesScope of Occupational Health and Safety Management System
Expected outcomes of theoccupational health and safetymanagement system
Leadership and sta
participation
Theneedsandexpectationsofstaand other stakeholdersInternal and external issues
AP
PD
DC
Improvement
Planning
Support and
Operation
Performance
evaluation
? Sunshine Youth Summer Camp
Additionally, to enrich the summer life of employees' children and enhance employees' sense of belonging and happiness, theParty Committee and the Trade Union of Sunwoda jointly organized the 2024 "Friends with Children" Sunshine Youth SummerCamp, which continued the excitement and fun of previous years, introducing new activities such as safety science education,city exploration, and caring visits to elderly communities. In the caring visits to the elderly communities, children participatedinaseriesofinteractiveactivities,includingdeliveringowersandgifts,storytellingbyelderlypartymembers,singingrevolutionary songs, and handcrafts such as fan painting, all to provide care and companionship for the elderly.
"Tongxin Cooperation" Series ProjectsCase
Sunshine Youth Growth Camp
Sunshine Youth Summer Camp
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Work Safety
Safety Management Structure
Risk Identicationand HazardIdentication
Optimizing Emergency Management
Emergency response procedures
Sunwoda has established a Work Safety Committee. The Committee is chaired by theChairman, with the General Managers of each subsidiary serving as the primary responsiblepersonsforworksafety.Theyoverseeworksafety,reprotection,environmentalprotection,and other related matters. The Work Safety Committee bears ultimate responsibility for theCompany's comprehensive safety management system and is responsible for coordinatingandguidingtheimplementationofworksafetyeortsacrosstheenterprise.Sunwoda strictly abides by key national policies, integrates and optimizes about 50documents related to work safety, including the Environment, Health, and Safety Manual,the Emergency Response and Response Management Regulations, and the ManagementRegulations for Fire Emergencies, in conjunction with the Work Safety Law of the People'sRepublic of China and the Company's own situation, to strengthen the standardization ofwork safety management.Intermsofworksafety,Sunwodahassetanoverallgoalof"preventionrst,eliminationofpotential hazards, implementation of measures, technical safeguards, resolute preventionof major and extremely major accidents, containment of larger incidents and rigorousprevention of mass incidents." The Company formulates corresponding medium- and long-termworksafetygoalsandplanseveryveyearsbasedonactualconditions,andhasestablished an annual work safety goal of zero major production safety accidents. Sunwodaisgoal-orientedandiscommittedtoenhancingmanagementeciencyandensuringworksafety by implementing various measures.The Company links safety performance to performance evaluation. Each month, Sunwodasupervises the safety performance of each subsidiary and ties the quarterly and annualbonuses of general managers and above to safety performance. Monthly performanceassessments and quarterly statistics are conducted in accordance with the requirementsof documents such as theRules on Environmental, Health, and Safety PerformanceMeasurement and Assessment,theManagement Rules on Work Safety Rewards andPenalties,ensuring that work safety goals and responsibilities are implemented at all levels.
Sunwodaconductsacomprehensiveidenticationandupdateofoccupationalhealthandsafetyrisksannuallytoensurethetimelinessandeectivenessofthemanagementsystem.Whentherearechangesinprocesses,equipmentupdates, or other related changes, relevant risk information will be updated in real time to ensure that risk controlmeasures are always aligned with actual conditions.Toeectivelymanageworksafety,Sunwodahasestablishedadualpreventionmechanismworkingleadershipgroup and a hidden danger investigation and management system, while regularly organizing comprehensive riskidenticationandassessmentwork,organizingtheestablishmentandimplementationofdualpreventionmechanismforsafetyriskclassicationandcontrolandhiddendangerinvestigationandmanagement,identifyingtheinternalrisksofthecompanyandestablishingthefour-colorchartofsafetyrisksineachareaandthepostrisknoticationcard.Fortheidentiedrisks,thecompanyformulatescontrolmeasuresaccordingtotheactualsituationtoreducethesafetyrisks.Sunwoda regards regular safety inspections as a fundamental aspect of safety management, has established amonthly safety inspection system, conducting comprehensive safety audits of production equipment and operatingprocedures each month. In response to the potential production peak during the holiday period, the Company willorganize a comprehensive safety inspection before the holiday to identify risks in advance and ensure production safetyduring the holiday. Additionally, the Company also conducts special safety inspections and cross-departmental jointinspections,focusingonspecicequipmentoroperationallinkstothoroughlyinvestigatepotentialissues.
Sunwoda has formulated and updated internal regulations such as the Emergency Response and Response Management Regulations, theManagement Regulations for Fire Emergencies, the Emergency Rules for Severe Weather, the Emergency Rules for Non-Work Safety Incident, and theRulesforFireghtingEquipmentandEmergencySuppliestoensuretheymeetactualmanagementneeds.TheCompanyhasestablishedasafetyemergencyorganization,whichincludessixfunctionalgroups,suchasthecommandteamandcommunicationteam,toensuretimelyandeectivehandling of sudden work safety accidents.For production safety, the Company has developed the Emergency Plan for Work Safety Accidents, prepared emergency supplies, assigned dedicatedpersonnel for management, and regularly conducts daily inspections, maintenance, and updates or scrapping of emergency supplies. Sunwoda hasestablished emergency response procedures to ensure the smooth and orderly conduct of emergency response work.
Chairman of the Work Safety Committee/FireSafety Committee (Chairman of the Board of
Directors)Executive Vice President
Fire Safety CommitteeVice President of the Work Safety Committee/
Fire Safety CommitteePrimary responsible person for Work Safety/
Fire Safety in subsidiariesManagement Team of subsidiaries
4,189
26,745
Investment in work safety
RMB3,647.96 ten thousandNumber of major production safety,casualty accidents
Organized safetyinspectionsRectiedsafetyhazards
2024
Fostering a Culture of Work SafetySunwoda builds a work safety education and training system to create an enterprise-wide culture of safety awareness.
Work safety education and training systemThree-level work safety
education for newemployees
Work safety education foremployees returning or
transferring positions
Monthly online safetytrainingexamforallsta
Work safety promotionbefore and after shifts
During the reporting period
Incident occurrence
Communication team
On-site emergencyresponse
Evacuation and alertteam
Report to the safetydepartment
Rescue and disasterrelief team
Report to departmentleaders
Medical rescue teamLogistics support teamLift alertSite clearancePost-incident
handlingWork injurydeclarationComprehensive
Implementation of theFour No-Exemption
Principles
Activate emergency response
plan (on-site personnel)Incidenteectivelycontrolled
or not
Incidenteectivelycontrolled
or notEmergency recovery
Incident investigation
Closure
Immediately
No
No
Yes
YesPark security departmentrequests external support(119/110/120)Transfer commandauthority to government
Activate internal special/comprehensive emergency
plan
Incident control
The statistics of investment in work safety does not include Sunwoda Vietnam.
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SunwodaprovidesemployeeswithconvenientaccesstosafetyknowledgethroughvariouspromotionalchannelssuchasocialWeChataccounts,short videos, and bulletin boards, enhancing employees' safety awareness and creating a culture where "everyone talks about safety, and everythingis for safety".The Company organizes activities such as Fire Safety Month and Safety Month every year. Incentive mechanisms have been established to stimulateemployees' participation in safety management. An online safety exam is conducted for all employees once a month, covering multiple themesincluding safety knowledge, occupational health, and mental health. To improve employee participation, Sunwoda incorporates exam completionratesintotheassessmentsystemandsetsupaprize-basedincentivemechanism,eectivelyincreasingemployeeengagement,withaparticipationrate of over 98% in 2024.In addition, the Company actively conducts emergency training and drills to enhance employees' safety and emergency capabilities. In 2024, theCompanycarriedoutaseriesofsafetyactivities,includingannualredrills,EmergencyResponseTeam(ERT)drills,volunteerreghtertraining,vehicle injury emergency drills, radiation emergency drills, and chemical spill emergency drills.
Fire Safety Month activities
Emergency Response Team (ERT) drills
First aid training
Work Safety Month activities
Occupational Health Promotion Week
Hazardous Chemicals Training
Radiation emergency drills
Safety knowledge competition
Guarding Occupational HealthSunwodaplacesgreatimportanceonthephysicalandmentalhealthofitsemployees.Toeectivelypreventandcontroloccupationalhealthrisksand protect employees' occupational health rights, Sunwoda has established a series of regulations, including the Regulations for OccupationalHealth Management, the Regulations for Occupational Health Labor Protection, and the Rules for the Control of Labor Protection Supplies, tocomprehensively promote and implement occupational health protection measures.Regular workplace hazard evaluations in the working environment every year to ensure that the environmental conditions of the workplace meetnational and industry safety standards, thereby safeguarding employees' health and safety at the source. For employees engaged in positionswith occupational disease hazards, Sunwoda strictly organizes regular health screenings in accordance with the requirements of the TechnicalSpecicationsforOccupationalHealthSurveillance,establishescomprehensivehealthrecords,promptlyidentiesandaddressespotentialhealthissues. The Company also uses an information platform to implement online management of occupational health examinations, improvingmanagementeciencyandtransparency.Sunwoda optimizes the usage of personal protective equipment (PPE) and implements strict control over special labor protection products withthe"ThreeCerticatesandOneMark"(ProductionLicenseCerticate,ProductQualityCerticate,SafetyAssessmentCerticate,andSafetyMark).For positions with occupational disease hazards, the Company clearly requires that the rate of personal protective equipment usage by employeesreaches 100%. By strengthening training and education, Sunwoda ensures that employees fully understand the importance of PPE and the correctwearing methods. The Company also regularly conducts on-site inspections to check employees' PPE wearing status and the usage of laborprotection products, promptly correcting non-compliant behaviors.The Company conducted a series of training and activities related to employee occupational health, such as the "Occupational Health PromotionWeek" event, training on the use of hazardous chemicals, safety management training for special equipment, radiation safety and protection training,etc., to enhance employees' awareness of occupational health and self-protection capabilities.
Occupational disease health checkrate for front-line employees100%Occupational disease
case
100%1,41353,860Training coverage on risks and protectivemeasures for all operational processes
Emergency drillsTotal participation of
emergency drillstimesperson-times
During the reporting period
During the reporting period
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The Company places great importance on employee mental health. To proactively identify and assist employees with poor mental health, Sunwodalaunched the "Peace-of-Mind" Program for employees, dedicated to maintaining the physical and mental well-being of employees.
In2024,the"Peace-of-Mind"Programforemployeesprovidedtrainingforpersonnelinspecicfunctionaldepartmentsandfrontlinemanagerstohelpthempromptlyidentifyemployeesexperiencingmentalhealthconcernsandoertimelycareandsupport.Atthesametime,theCompany uses internationally recognized mental health scales to conduct mental health assessments for employees, making preliminaryjudgments about their mental health status and implementing graded and categorized intervention measures. Additionally, the Companyestablished mental health consultation meeting rooms on the production line and conducted free mental health clinics, thereby enhancingemployee well-being.
Peace-of-Mind Program for Employees Free Clinic Activities
Creating Customer ValueSunwodaconsistentlyupholdsthecustomer-rstphilosophyandiscommittedtoprovidinghigh-qualityservicestomeetcustomerneedsandenhancecustomersatisfaction.Intheeldofcustomerservice,Sunwodahasbuiltacomprehensiveandmulti-tieredservicesystemthateectivelysafeguards customer rights through responsible marketing management, laying a solid foundation for the Company's long-term development.
CustomerRelationshipManagement andQuality Service
ResponsibleMarketingSunwodaadherestothe"customer-rst"principleandiscommittedtobuildingstrongcustomerrelationships through multiple channels. The Company has established theCustomer ComplaintsHandling Procedureandthe"2485"responseprotocol,whichclariestheresponsibilitiesandresponsetimesforeachnodeintheentireprocesstoimprovetheeciencyofhandlingcustomercomplaints.
Sunwoda incorporates responsible marketing into its sustainable development strategy andobjectives. The ESG management department regularly inspects and evaluates the Company'smarketing activities to ensure that marketing practices comply with ESG standards. At the sametime, to enhance employees' awareness of responsible marketing, the Company regularly holdsresponsible marketing training.
Quality complaints from customersCustomer evaluationCustomer acceptance
Customer satisfaction
Cause analysisImprovement plan
NoYes
Improvements
First responsewithin 2 hours
Emergencymeasures andsecond response
within 24 hours
Cause analysis,countermeasureformulation, and thirdresponse within 48 hours
Long-term solutions andpreventive measures
within 5 daysSunwoda establishes various customer feedback channels, including a customer service hotline, an online customer service platform, and emailfeedback. The customer service hotline is available 24/7, ensuring that customers can contact Sunwoda whenever needed. Moreover, the informationonfeedbackchannelsismarkedonSunwoda'socialwebsiteandproductpackagingforeasycustomeraccess.To enhance communication with customers and improve service levels, Sunwoda regularly conducts customer satisfaction surveys. The Companyadopts two forms of surveys: questionnaires and telephone interviews, covering multiple dimensions such as product quality, performance,timeliness of delivery, and after-sales service. The Company uses statistical software to analyze the survey results and issues a Corrective andPreventiveReportbasedonthendings,assigningspecicresponsiblepersonstoaddresscustomerissues.Sunwoda has implemented a real-time feedback and tracking improvement mechanism. On one hand, customer evaluations are used to improveservices and products, with regular summaries and analyses of customer feedback to identify common issues and make improvements to productdesign or production processes. On the other hand, customer ratings are also considered one of the important indicators for internal assessments.For departments related to customer satisfaction, such as sales and after-sales, the handling of customer feedback and the improvement ofcustomer satisfaction are included in the employee performance evaluation system to encourage employees to prioritize customer satisfaction.Sunwodavaluesthecondentialityofcustomerinformationandstrictlyadherestothecondentialityagreementssignedwithcustomers.IntheManagement Regulations on Business Ethics, Sunwoda stipulates that all employees responsible for business must participate in informationcondentialitytrainingtoensureeectiveprotectionofcustomerprivacy.Topreventinformationleakagebetweendierentprojects,theCompanyhasestablisheddedicatedinformationprotectionmeasuresandstrictinformationisolation.Forcertaincustomerswithspecicneeds,theCompanyhasalsospeciallyequippedindependentproductionareastofurtherensurethecondentialityofcustomerdataandproductionprocesses.
Sunwoda regularly organizes employees to participate in marketing skills and compliance trainingto improve their professional quality and sense of responsibility. The training content includesproduct knowledge, marketing skills, laws and regulations, and professional ethics, urging thatemployees can consciously comply with relevant laws and regulations as well as the Company'srules and regulations, avoiding violations during the marketing process. The training also helpsemployees to accurately and professionally introduce product information to customers.
Through case analysis and early-warning education, employees can deeply understand the harmand consequences of improper marketing behaviors such as misleading, exaggerating, and fraud.At the same time, typical cases from the industry are selected for analysis, guiding employeesto establish correct marketing concepts and enhancing their awareness of compliance and riskprevention, so as to fundamentally eliminate the occurrence of improper marketing behaviors.
Marketing Skillsand ComplianceTraining
Case Analysis andEarly-Warning
Education
"2485" Response ProtocolPeace-of-Mind Program for EmployeesCase
Customer satisfaction
92.89%
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In 2024, Sunwoda Energy Technology collaborated with third parties to conduct MTC workshops. More than 260 participants, includingthe President of Sunwoda Energy Technology, senior executives at all levels, regional and business line leaders, and all sales members,participated in the training. This training enhanced customer-centric awareness, helping to provide accurate marketing solutions.
In 2024, Sunwoda launched the CRM system on the Sunwoda Learning Platform, providing online marketing training for sales personnel. Thetraining standardized processes related to customer communication, visit reports, weekly reports and formats, contract reviews, and orderreviews, and utilized IT tools to regulate the sales behavior of sales personnel, reinforcing their sense of responsibility.
MTC Marketing Training
Establishing Responsible Supply ChainOn the basis of ensuring that suppliers meet requirements for robust operations, sustainable supply, stable quality, and technological innovation,Sunwoda continuously strengthens responsible supply chain management, further emphasizes its capabilities in sustainable development,globalization, digital transformation, and smart manufacturing, collaborates with partners to pursue a sustainable future.
Supply Chain ResilienceSunwoda respects the UNGC's Ten Principles. To comply with EU battery regulations and customer requirements, the Company has launched the"Low-Carbon Development in the Supply Chain" initiative, integrating the "Carbon Peaking and Carbon Neutrality" requirements into supply chainmanagement. This initiative aims to create outstanding case studies and develop mature solutions.In accordance with the SA8000 Social Accountability Standard, theResponsible Business Alliance (RBA) Code of Conduct, and relevant lawsandregulations,Sunwodahasestablishedandcontinuouslyoptimizeditssustainablesupplychainsystem.TheCompanyhasrenedsuppliermanagement processes and developed a series of policies and internal documents, including theSustainable Supply Chain Manual, the SupplierManagement Process, the Supplier Code of Conduct, the Sustainable Supply Chain Operation Mechanism, the Guidelines for Sustainable SupplyChain Policy Implementation,and the Supplier Audit Report (Sustainability). These measures aim to better control suppliers' sustainable developmentand performance, fostering collaborative development across the entire value chain and ensuring the Achievement of Objectives for ManagingSuppliers to Meet the Company's Sustainable Procurement Requirements.ToeectivelyimplementtheGroup'ssustainabledevelopmentstrategyandexecutevariousinitiativeswithinthesustainablesupplychain,theGroup Procurement Center has coordinated across all business segments to establish a specialized organization for supply chain sustainability—theSupply Chain ESG Subcommittee. This subcommittee coordinates and synchronizes sustainable supply chain development work across all businessunits,continuouslypromotingtheecientoperationandreneddevelopmentofsupplychainmanagement.Additionally,Sunwodacontinuouslyoptimizes the complaint mechanism for sustainable supply chain development, enhancing the transparency of supply chain management.Based on this, Sunwoda has built a digital platform for supply chain management (SRM) to implement supplier management, performancemanagement, sourcing management, contract management, and procurement execution. The Company also developed multiple automationmodules, online collaboration between the procurement and supplier ends, and deep integration with enterprise OA, ERP, SCCP, and other systems,furtherimprovingoperationaleciencyandsupplychaintransparencyandenhancingSunwoda'ssupplychainmanagementcapabilitiesandriskresistance.
2024 Supply Chain Management Measures of Subsidiaries (Selected)
The 3C Liwinon sector has included 23 supplierswith an emission proportion of over 90% in themanagement scope of the Liwinon SupplierCarbon Reduction Program. These suppliershave signed emission reduction commitmentletters pledging to reduce the carbon footprintof products supplied to Lithium Power by 34%by 2030. Based on these commitments, Liwinonhas established audit protocols for annualvericationandrequiressupplierstodevelopplans for 100% renewable energy utilization forproducts supplied to Liwinon. As of 2023, 11 ofthese suppliers have already completed theirrenewable energy transition plans.
The Power Technology sectorhas established a supplier ESGmanagement system accordingto the RECD strategy. It uses theSunwoda Supplier SustainableDevelopment Evaluation Formfor regular supplier reviews,invites third-party institutions forsupplier audits, and accepts third-party sustainable developmentcerticationssuchasRBAandRMIas appropriate.
The Intelligent Hardwaresector has issued theSupplierBattery Safety ManagementPlanfor promotion, signed theSupplementary Agreement to theQuality Assurance Agreement,and launched a monthly self-inspection action named theBattery Safety Checklist, achievinga 100% coverage rate for a totalof 16 battery suppliers.
Procurement Manager Training Program (MTC) WorkshopsCase
CRM System Marketing TrainingCase
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Concurrently, Sunwoda actively engages in supply chain risk management to strengthen supply chain resilience. The Company includes theSupplierRisk Assessment Formin theSupplier Evaluation and Monitoring Management Process and conductsrisk assessments based on its needs. TheCompanyusesSRMsystemauditsandothermethodsforcomprehensiverisktracksandcontrols,suchassupplierqualications,deliveryquality,materialcertications,pricing,inventory,andtheimpactofnaturaldisasters,aimingtominimizesupplychainrisksandensuresupplychainsecurity.Supply chain resilience management
? Sign supply agreements with
exclusive suppliers.
? Increase material sources andimplement quota allocations.Conduct regular supplier capacitysurveys and analyze the matchbetween supply and demand.? Adjust quotas based on supplyconditions.
? System monitoring and earlywarning for timely response topurchase plans and timely orderdelivery, along with reports to ensureprocurement personnel's quickconrmationandtreatment.? Set safety stock in the system basedonmaterialcategoriestoosetdemanductuationrisks.
ContractMaterial supply sourcesManagement system
SupplierManagement
Sunwoda has established a series of practical evaluation and management methods for suppliermanagement, from development to cooperation, ensuring compliance with laws, regulations, and customerrequirements. The Company also proactively shares industry knowledge and best practices with suppliers topromote the sustainable development of the supply chain jointly.In 2024, Sunwoda released the supplier evaluation model—the SUCCESS Supplier Evaluation System.In addition to requirements for robust operations, sustainable supply, stable quality, and technologicalinnovation capabilities, this system emphasizes new suppliers' capabilities for green and sustainabledevelopment, global expansion, digital transformation, and smart manufacturing, further strengtheningsupply chain accountability.
Sustainable
supplyGlobalexpansion
StablequalitySUCCESSsupplierevaluationsystem
Digitaltransformationand smartmanufacturing
TechnologicalinnovationSteadyoperationGreen andsustainabledevelopment
Second-tier suppliermanagement, core resourcesand technologies control, riskresilienceOverseas expansion, overseassupply network, sharedinternational experience
Specialized roles andresponsibilities, proactive qualitymanagement, implementabledesign quality, digitalmanufacturing qualityAutomation, informatization,intelligentization, greening,specialization
Patent layout, R&D investment,open collaboration andtechnological co-innovation,meeting customer needs withtechnologyFinance, business organization, risk
management
ESG strategy and system, carbonreduction initiatives, responsibleprocurement
Supplier Qualication
Supplier Audit
Sunwoda follows theSupplier Development Procedureinthesupplierqualicationprocess,focusingonESG-relatedqualicationindicators,settingbaselinesforprimarycategories,andevaluatingnewsuppliersbasedonthesebaselines.Toeectivelymanagethesocialandenvironmentalimpacts of the supply chain, the Company requires all new suppliers to sign theSupplier Code of Conduct, which covers ESG management systems,integrityandbusinessethics,ISOcertications,humanrights,andenvironmentalaspects.Sunwodaalsostipulatesenvironmentalmanagementrequirements for production materials in documents such as theQuality Assurance Agreementand theSupplier Material Environmental DeclarationCommitment Letter. Relevant suppliers are required to sign and adhere to these documents as needed.
Sunwoda continuously optimizes the supplier audit mechanism and implements graded and categorized supplier management. The Company hasestablished a complete audit process to ensure suppliers comply with and adhere to the Supplier Code of Conduct.
Forkeyqualiedsuppliers,Sunwodawilltrackandmaintainthesupplier'sISOcerticationsystemandconductannualaudits,aswellason-siteaudits based on business needs. For suppliers' non-conformities, the Company will notify suppliers of the issues and require improvement plansforreviewandconrmation.Sunwodawillprovidenecessaryguidanceandassistancetosuppliersduringtherecticationprocess.Forsuppliersfailingtomeetthestandardsafterrectication,theCompanyhasestablishedexitmechanism,whichincludessupplierfreezing,categoryfreezing,qualicationcancellation,andblacklisting.In addition, Sunwoda promotes the company's Supplier Code of Conduct and other supply chain ESG management policies to suppliers, andregularly conducts behavioral assessments to track performance. During the reporting period, Sunwoda has upgraded the CSR part of the supplier'sannual audit form to sustainable development audit content, and the independent CSR audit form to a sustainable development form. The companyhas added aSupply Chain Sustainable Development Manualto provide operational guidance for supplier sustainable development audits.
To comply with relevant laws and regulations as well as Sunwoda's customer requirements for environmental management substances, such asEU REACH Regulation(EU Regulation No. 1907/2006),EU RoHS Directive(2011/65/EU), China'sAdministrative Measures on the Control of PollutionCaused by Electronic Information Products, and other legal regulations and customer requirements, suppliers are required to fully implement ahazardous substances management system. The Company has establishedTechnical Standards for Environmental Management Substances,requiring raw material suppliers to hold valid industrial "three wastes"(waster water, waster gas, solid waster) discharge permits, sign contractswithqualiedthirdpartiesforthetransportationofhazardouswaste,andmaintaindetailedtransportationliststoensurestrictcompliancewithregulations on wastewater, exhaust gas, and hazardous solid waste treatment.
CertiedwithISO14001,ISO45001,ISO9001,andothersystemcerticationsBusinessethics,anti-discrimination,workinghours,compensationandbenets,anti-childlaborandforcedlabor, occupational health and safety, environmental protection, etc.Managementsystem
ESG riskassessment
Sunwodaclariestheobjectives,scope, schedule,and personnelarrangementsof the auditto ensure anorderly audit.
Suppliers conductself-assessmentsaccording to theaudit standards,prepare relevantmaterials, and getready for the on-site audit.
Sunwodaintroducesthe audit'spurpose andprocess,clariesboth parties'responsibilities,and buildsan auditcommunicationmechanism.
Sunwodareviews thesupplier's qualitymanagementsystemdocuments toensure theycomply withaudit standardsand regulatoryrequirements.
Sunwoda conductson-site inspectionsof productionprocesses,equipment andfacilities, andmanagementrecords to verify theimplementation ofsystem documents.
Sunwoda
summarizes
auditndings,
proposes
improvement
suggestions, and
communicates
with suppliers
toconrmaudit
results.
Audit plan
Supplier self-assessment
On-site auditonboarding
Systemdocumentationreview
On-site audit
Audit summaryand closingmeetingSupplier audit process
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Sunwoda Sustainability Audit Items
Main content of theSupplier Code of Conduct
In 2024, Sunwoda revised its audit evaluation criteria in accordance with theSustainability Management Manual. Among these, the on-sitesustainability audit report has added 30 audit items across 11 audit areas, including child labor and underage labor, forced labor, freedom ofassociation and communication, working hours and wages, business ethics, chemical safety, accommodation and canteens, equipment safety andhealth, environmental protection, climate change, and circular economy, based on the original CSR audit report. These include whether biodiversity isintegratedintosustainabilitymanagementforboththeCompanyanditssuppliers,certicationoftheproportionofrenewablematerialsused,whetherthe circular economy is incorporated into the Company's sustainability management and supply chain management, and whether carbon footprint hasbeen conducted. Additionally, 25 audit items across 9 areas have been revised, including forced labor, discrimination and discipline, working hours andwages,resafety,chemicalsafety,equipmentsafetyandhealth,accommodationandcanteens,environmentalprotection,andmanagementsystems.
CategoryContentRequirements
Legal compliance and
business ethics
Suppliersshouldfulllcorporatesocialresponsibilitiesandoperatein compliance with laws and regulations, ensuring that all businessactivities adhere to the highest standards of integrity. Whistleblowerscan access multiple reporting channels and report through theSunwodaocialwebsite.
Compliance with regulations, businessintegrity, absence of improper advantages,information disclosure, intellectual property,and other requirements.Suppliers should respect employees' human rights, practice goodemployment behavior, and treat them with dignity and respect. Thissection applies to all employees, including temporary workers, foreignlaborers,studentworkers,contractsta,directemployees,andanyother types of employees.
Against forced labor; prohibition of childlabor and underage labor; legal workinghours;wagesandbenets;prohibitionofdiscrimination, harassment and abuse;freedom of association and collectivebargaining rights, etc.
Health and safety
Suppliers should provide employees with a healthy, safe, hygienic, anddecentworkingenvironment.Necessaryandeectivehealthandsafetypermits should be obtained and adhered to, and working conditionsshould meet or exceed regulatory requirements and industry standards.
Occupational health and safety, emergencypreparedness, work injuries and illnesses,industrial hygiene, health and safetycommunication, etc.
Suppliers should protect the environment and develop environmentallyfriendly technologies, products, and businesses to reduce impactson climate change, water security, soil pollution, biodiversity, primaryforests, and indigenous communities. They should also continuematerialreuseandrecyclingtofulllenvironmentalresponsibilitiessuch as protecting natural resources and reducing the carbon footprintof product life cycles.
Possess valid discharge permits,environmental permits, and reports; strictlyimplement regulations on wastewater,exhaust gas, and hazardous solid wastetreatment; manage the environment of high-pollution outsourcing process factories; andsearch the environmental performance ofsub-suppliers and outsourcing factories (e.g.,hazardous substances, restricted substances,exhaust gases and noise, pollution preventionand resource protection, circular economy,biodiversity, etc.) through the IPE website.Sunwoda also appoints environmentalspecialists to review suppliers' environmentaldataformaterialcertication.Suppliers should adopt or establish management systems related tothe scope of this Code.
Management systems, responsibleprocurement, etc.
Human rights and
labor
Environment
Governance and
supply chain
Supplier training
Sunwoda actively carries out sustainability training for suppliers to enhance their capabilities in robust operations, digital transformation, and cleandevelopment. It collaborates with multiple partners to build a sustainable supply chain in the industry.
In September 2024, Sunwoda held a Supply Chain Sustainability Conference at its headquarters in Shenzhen. Wang Mingwang, the founderof Sunwoda, and other senior executives, along with representatives from more than 10 suppliers, attended the event in person. Meanwhile,representatives from over 100 suppliers actively participated in the conference through online platforms to jointly explore sustainabledevelopment in the supply chain.At the conference, Sunwoda provided an in-depth interpretation of its enterprise sustainable development strategy and supply chainsustainability management initiatives. The Company also expressed its deep commitment to implementing the strategy by developing greencore technologies, proactive and ahead-of-time investment layouts, and empowering collaborative development across the entire industrychain. Moreover, invited suppliers were encouraged to share their experiences and insights on sustainable supply chain development based ontheir own development situations.
Sunwoda'sConsumerProductSectorconvenedasupplierconferencetobuildasustainablesupplychainbyrearmingmanagementstandards in supplier evaluation, supplier integrity, and ESG collaborative promotion.During the meeting, the Company promoted its transparent procurement policy and established dual integrity reporting channels for both theCompany and executive management, reinforcing the construction and training of supply chain integrity. The Company also communicated itssupply chain ESG management policy to suppliers, urging them to advance energy conservation, emissions reduction, renewable energy use,and recycled materials ratios, among other collaborative supply chain ESG initiatives.
Supply Chain Sustainability ConferenceCase
Supplier Conference for Consumer Product SectorCase
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Procurement
Sunwoda is dedicated to building a safe, compliant, and sustainable battery supply chain system. Through systematic responsibility governance,risk control, and multi-party collaboration mechanisms, the Company comprehensively traces sources for harmful substances in raw materials andconictminerals,ensuringtransparencyandtraceabilityinthesupplychain.Additionally,theCompanypromotestheeectiveimplementationofhuman rights protection and environmental responsibility across the entire chain.Sunwoda has established a responsible minerals management system guided by the Strategy and Sustainable Development Committee andsupervisedbytheSustainableDevelopmentManagementCommittee.Thissystemclearlydenesthecollaborativeresponsibilitiesofvariousdepartments, including the Sustainable Development Centre, Procurement Center, Quality Center, and various Business Departments. The Companystrictly adheres to theOECDDueDiligenceGuidanceforResponsibleSupplyChainsofMineralsfromConict-AectedandHigh-RiskAreasand theChina Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters'Chinese Due Diligence Guidelines for Mineral Supply Chaintoformulate itsResponsible Mineral Procurement Policyandsupportingmanagementsystems.Themanagementrequirementsforconictmineralsareintegratedintotheentireprocess,includingsupplierqualication,procurementcontracts,andperformanceevaluation.Simultaneously,asupplychain data tracking mechanism has been established to trace the full lifecycle of key materials such as tantalum, tin, tungsten, gold (3TG), cobalt,lithium, nickel, and natural graphite, ensuring that the supply chain for raw materials complies with international standards.Sunwodarequiressupplierstodeveloptheirduediligencepoliciesandmanagementsystemsinaccordancewiththeve-stepframeworkfromtheOECDDueDiligenceGuidanceforResponsibleSupplyChainsofMineralsfromConict-AectedandHigh-RiskAreas. They must appoint seniormanagement representatives for due diligence on the sources and supply chains of the aforementioned minerals, identify, assess, and takeappropriate measures to mitigate risks. Suppliers are also required to publicly disclose their annual supply chain due diligence reports. Recordsrelatedtoconictmineralduediligenceshouldberetainedforatleasttenyears.Forhigh-riskmineralssuchas3TGs,cobalt,andmica,suppliersaremandatedtopurchaseproductsfromsmelterscertiedbytheResponsibleBusinessAlliance(RBA)andauditedbytheResponsibleMineralsInitiative(RMI).Foruncertiedsuppliers,Sunwodawillfacilitatetheirparticipationin the RMI Responsible Minerals Assurance Process (RMAP), enhancing their compliance capabilities through technical guidance and resourceintegration.
2024 Investigation Results for Responsible MineralsDuring the reporting period, Sunwoda released the2024 Investigation Report for Sunwoda ResponsibleMinerals, conducting due diligence on a total of 1,117 suppliers, involving 284 smelters using 3TGs, cobalt,andmica.Nounqualiedsmelterswerefound.Amongthese,278smelters(98%)havecompletedtheauditprocess, and 6 (2%) are currently undergoing audit.
Sunwoda's measures for responsible minerals procurement in 2024
Regularduediligenceisconductedonsupplierstwiceayear.Therstisaninitialannualinvestigation,andthesecondisaconrmationone.Thescopeoftheinvestigationcoverssuppliersofmetalmaterials,metal-containing components/modules, metal mixtures (such as solder paste), and other materials.Annual duediligence
Sunwoda has established an internal transparent and controllable supply chain system to identify thecomplianceofsmelters/reneries.TheCompanyinvestigatesreasonableorigincountriesandconsolidatesall investigation data, using optimal data analysis and processing methods to analyze the information andidentifyqualiedsmelters,smeltersunderaudit,andsmeltersincommunication.In2024,theCompanycontinued optimizing data processing methods and promoted their use throughout the entire Group.
Dataprocessing
In2024,SunwodareneditsManagement Regulations on Responsible Minerals Procurement,clarifyingdepartmental roles in mineral management and detailing due diligence requirements. These regulationsinclude investigations during the new material introduction, annual checks, and investigation resultstreatment,steeringthesupplychainawayfromconictminerals.Sunwoda has established long-term cooperation with most suppliers. At the initial stage of collaboration,Sunwoda fully communicates with suppliers and signs the BasicCooperation Guidelines for Suppliers, whichincorporates the Company's responsible mineral procurement policy and requirements for suppliers, includingrequiring suppliers to establish their mineral policies and conduct due diligence in the supply chain to ensuretheuseofqualiedsmelters.
Managementregulationestablishment
Sunwodarequiresthesupplychaintoencouragenon-compliantandnon-auditedsmelters/reneriesidentiedbytheRBA/RMItoactivelyparticipateinauditprogramstoachievecompliance.Thecompanyleverages the collective power of RBA/RMI members to drive positive change and take action against supplierswhodonotusequaliedsmelters.Investigationresultprocessing
TheQualityCentercompilesSunwoda'sannualconictmineralsinvestigationreportandreleasesitontheocialwebsiteafterapproval.Publishingannualinvestigationreport
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Promoting Industry Development
Sunwoda actively participates in activities organized by industry associations, such as standard policy formulation, topic research, forums,exhibitions, and technical cooperation, by leveraging its development advantages and experience. In recent years, the Company has continuouslyenhanced its external communication. In 2024, Sunwoda received over 10 visits from domestic and international high-level leaders, contributingtothehigh-qualitydevelopmentoftheindustry.Concurrently,theCompanycontinuedtoexpanditsindustryinuenceandglobalpresence,participating in multiple major industry events during the reporting period.
Additionally, Sunwoda leveraged its technological expertise and industry experience to lead or contribute to multiple standards developmentinitiativesin2024.Theseeortsencompassedlithiumbatterygreensupplychainframeworks,safetytechnologyspecications,andcarbonfootprintquanticationmethodologies.Sunwoda'sactiveparticipationinvariousstandardformulationshelpstocombinetechnologicalinnovationwithstandardization, facilitating the green, standardized, and professional development of the industry and promoting innovation and progress.
To promote the exchange of new energy storage technologies, Sunwoda held the 2024 New Energy Storage Technology Development Forumthemed "Exploring New Quality Productive Forces and Creating New Development in Energy Storage." The event convened over 200 industryand enterprise representatives to provide more driving forces for the development of the new energy storage industry and assist Shenzhen inbecoming a global digital energy pioneer city.
As a designated "Industry Chain Anchor Enterprise" in the lithium battery industry chain of Guangdong Province, Sunwoda was invited toparticipate in the 19th China International Small and Medium Enterprises Expo and the strategic cooperation signing ceremony betweenleading industrial chain orchestrators and innovative specialized small and medium enterprises. Sunwoda continuously plays a crucial roleintechnologyresearchanddevelopment,productmanufacturing,andmarketexpansioninthenewenergyeld,promotingthecoordinateddevelopment of the industry chain through the integration of upstream and downstream resources.
In September 2024, Sunwoda participated in the Summit and attended the closed-door meeting on energy themes at the China-NigeriaEconomicandTradeCooperationandTradeConference.TheCompanyintroducedenergystoragesolutionstotheNigeriangovernmentocersand enterprises, committed to promoting multi-party communication within the industry and providing clean solutions for industrial upgradingand transformation in more regions.As a representative of global unicorn enterprises, SEVB was invited to attend the "2024 Shenzhen Global Investment Promotion ConferenceUnicorn Enterprise Cooperation Development Exchange Meeting" co-hosted by the Industry and Information Technology Bureau of ShenzhenMunicipality, Service Bureau for Small and Medium-Sized Enterprises of Shenzhen Municipality, Shenzhen Science and Technology InnovationBureau, Nanshan Government, and Longhua Government, as well as participated in the themed roundtable forum on "How to Create anOptimal Ecosystems for the Growth of Unicorn Enterprises".
2024 New Energy Storage Technology Development ForumCase
SEVB Invited to Attend the 2024 Shenzhen Global Investment Promotion ConferenceCase
Participation in the Forum on China-Africa Cooperation SummitCase
Participation in the 19th China International SME ExpoCase
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In2024,Sunwodaparticipatedinthedraftingandrevisionoftheindustrystandardfortherstsystematicspecicationofbatterylifecycletraceability management data requirements (i.e., battery passport) in China. The Battery Passport Guidelines, after a year-long development,technicaldeliberations,andprofessionalreview,hasbeenociallypublished.ThislandmarkstandardwillenableenterprisestorespondmoreeectivelytothebatterypassportrequirementsoftheEUbatteryregulations,achievelow-carbonmanagementofnewenergybatterylifecycles, so as to enhance the international competitiveness of the battery industry.
In April 2024, SEVB co-hosted the 2024 Electric Vehicle FastCharging Technology Summit with EIDC and took the lead inestablishing the Electric Vehicle Fast Charging Alliance. At thesummit, the drafting of theIndustry Standard for Electric VehicleFast Charging Technologywasociallylaunched.SEVBwillworktogether with representatives from upstream and downstreamof the new energy vehicle industry chain to participate in thestandard formulation and explore the innovative development ofelectric vehicle supercharging technology.
Constructing a Beautiful HomeSunwoda strategically integrates social resources, focusing on key impact areas such as vulnerable population support, educational advancement,medical assistance, and disaster relief to drive social development. Sunwoda also places great importance on rural revitalization, providingcomprehensive support for high-quality rural development through educational, ecological, cultural, and healthcare interventions, demonstrating itscommitment to social responsibility.
In2012,Sunwoda,withtheapprovaloftheBureauofCivilAairsofShenzhenMunicipality,establishedtheShenzhenSunwodaCharityFoundation(hereafter "Sunwoda Foundation"), focusing on public welfare services in areas such as vulnerable population support, educational advancement,healthcare assistance, and disaster relief, to support the development and progress of public welfare and charity.
Public Welfare
Sunwodaactivelyfulllsitscorporatesocialresponsibility,workinghandinhandwithemployeesand partners to build a harmonious society. In 2024, Sunwoda, together with its subsidiaries anddepartments, promoted public welfare concepts and encouraged employees to engage in andcarry out public welfare activities, contributing to the construction of a harmonious society.
Charitable InsitutionShenzhen Charitable Donation Index -
Corporate Philanthropy Leaderboard
Shenzhen Advanced Unit forVoluntary Blood Donation
Philosophy and Purpose of Sunwoda Charity Foundationthe Sunwoda Foundation'sannual public welfare andcharity expenditureRMB
5.9208
million
Totalbeneciaries
ten thousand
Gratitude, Integration, Charity, Harmony
Through small acts of kindness, to promote the spirit of charity,enhance public awareness, and create a harmonious society
Philosophy
Purpose
Charitable Donations
Educational Advancement InitiativesThe Sunwoda Foundation prioritizes educational public welfare, establishing the "Sunwoda Future Scholarship" program aimed at providing learningsupport for rural primary and secondary school students and college students majoring in new energy to promote the steady advancement ofeducation and foster educational equity and progress. In 2024, the Sunwoda Foundation actively carried out various educational assistance activities,supporting education development through charitable canteens, teaching excellence funds, and school-enterprise cooperation.
? Sunwoda funded the construction of charitable canteens and
other infrastructure for rural schools to improve the schoolenvironment;? Teaching excellence funds are set up for rural teachers to promoteand support the development of education.
? The Company encourages students majoring innew energy to explore innovation by setting upscholarships and grants in universities, sponsoringcollege student entrepreneurship competitions, andcultivatingtalentsintheeld.
Little Sunshine Caring
Program
Future EngineerTraining Program
Data statistics include all donation amounts disbursed by Sunwoda through Sunwoda Charity Foundation in 2024.
Formulation of the Battery Passport Industry Standard PolicyCase
SEVB led the formulation of the Industry Standard for Electric Vehicle Fast Charging TechnologyCase
By the end of 2024
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By the end of 2024Overview of Sunwoda Future Scholarship ProgramHealthcare Assistance
? Sunwoda New Energy Technology Innovation Scholarship? The 19th "Challenge Cup" Series Competition Support Program of South ChinaUniversity of Technology - "Sunwoda" Cup? Sunwoda-Huanghai New Energy Technology Innovation Scholarship? Sunwoda-Huanghai Teaching Excellence Award? "Sunwoda-Huanghai" Cup - iCAN Innovation and Entrepreneurship Competition? Sunwoda-Huanghai Club Support Program? Sunwoda Teaching Excellence Award? Sunwoda Virtue and Excellence Scholarship? Sunwoda Diligence-Love-Wisdom-Courage TeachingExcellence Award and Scholarship? Sunwoda Teaching Excellence Award and Scholarship? Sunwoda Future One-on-One Assistance
South China Universityof Technology
Dalian University ofTechnology
Jinling High SchoolLishui CampusBoluo SecondarySchoolGuantian SchoolShanhou Primary SchoolNo. 1 Middle School ofTongren Guizhou
Total donated:
RMB
2.56
million
Teachers and students covered:
2.1 ten thousand
the "Sunwoda Future Scholarship" program
Awarding Institution: Sun Yat-senUniversityAward Name: Yat-sen EducationContribution Award
The Sunwoda Foundation has made healthcare assistance one of its core public welfare sectors.The Company has created the "Sunwoda Hope Program," which includes the "Sunshine GuardianProgram" and the "Courage Support Program," caring for patients with major diseases throughfamily support and medical assistance. By building a comprehensive and multi-level supportsystem, Sunwoda Foundation brings warmth and hope to patients and families. The SunwodaFoundation also supports children from disadvantaged families who need hematopoietic stemcell transplants through the "Sunwoda Children's Transplant Assistance Program", providingsupport for 7 children.
The total number of families
helped by the Sunshine
Guardian Program:
? To provide temporary assistance to families andindividualsfacingsignicantillnessesandaccidents,alleviatingtheirnancialpressures
? To build children's care spaces, mobile kitchens, etc.,to provide care and financial support for sick children,safeguarding their healthy and happy growth
Sunshine Guardian ProgramCourage Support Program
In 2024, Sunwoda continued to optimize and upgrade the Pediatric Care Space project at People's Hospital of Shiyan, Bao'an District, and the
SeventhAliatedHospital,SunYat-senUniversity,settinganexampleforchildren'scarespacesinhospitalsthroughongoingoptimizationof
space operation services. These two care spaces were open for a total of 563 days in 2024, hosting 66 child-centered activities, including the
parent-child picture book reading activity themed "Be the Master of Your Emotions" on Reading Day and the DIY activity "Transforming Infusion
Sets into a Brave Fish," enriching the hospitalization experience for sick children. Among them, the Pediatric Care Space project at People's
Hospital of Shiyan, Bao'an District won the "Outstanding Project" award at the 5th Volunteer Service Project Competition in Bao'an District in
2024.
Served hospitalized children and
their families
5,353
Parent-child painting activity at People's Hospital of ShiyanPediatric Care Space at People's Hospital of Shiyan
By the end of 2024
Creating Pediatric Care Spaces in HospitalsCase
In 2024, the Company served hospitalized children and their families covering 5,353 visits. Of these, 1,320 were activity services and 4,033 were daily support services.
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The Sunwoda Foundation actively carries out medical trainingto comprehensively enhance the diagnostic and treatmentcapabilitiesofpediatricmedicalsta.InNovember2024,the Sunwoda Foundation, in collaboration with the People'sHospital of Shiyan, launched the "Sunwoda Voice Program- Narrative Medicine Capability Enhancement" program.This project aims to cultivate empathy and communicationskillsamongmedicalsta,improvethequalityofmedicalservices, enhance doctor-patient relationships, and promotethe development of medical humanities. As of the end of thereporting period, the project has trained and empowered 357healthcare professional.
In August 2024, the Sunwoda Foundation, in collaboration with corporate culture department, launched the "Charity Night Market - SunwodaSpring Rain Action" event, raising funds through charity sales and matching donations from foundation members, totaling a donation of RMB34,382. Together with the Spring Rain Action, the Sunwoda Foundation also initiated the "Sunwoda Care Action: 2024 Sanitation Worker HeatRelief Program".Foundationstavisitedvariouslocations,includingShilongTownandYuanzhouTowninGuangdong,theDevelopmentZoneinLanxiCity,Zhejiang, and the Development Zone in Lishui District, Nanjing, and delivered carefully prepared care packages to a total of 500 sanitationworkers in the form of "a cooling gift package + a tribute letter = comprehensive care". Through this practical action, sincere respect andgratitude are expressed to the sanitation workers.
Sanitation Worker Heat Relief Program (Lanxi Station)
Sanitation Worker Heat Relief Program (Boluo Station)
Sanitation Worker Heat Relief Program (Shenzhen Station)In 2024, the Sunwoda Foundation, in collaboration with Sunwoda's industrial parks in Boluo, Nanjing, Lanxi, and Nanchang, delivered carepackages, holiday greetings, and blessings to healthcare workers at hospitals surrounding the Sunwoda parks on "National Doctors' Day"and"InternationalNursesDay"toexpressgratitudefortheirhardworkandselessdedication.Duringtheevent,theSunwodaFoundationextended greetings and best wishes to a total of 3,109 nursing professionals and over 953 medical practitioners.
Sunwoda Caring Action for HealthcareProfessionals in 2024 Nurses DaySunwoda Caring Action for 2024 National Doctors' Day
In 2024, the Sunwoda Foundation carried out its fourth Spring Festival heartwarming visit activity. In Heshan Village, Shenli Village, and TuguaxuVillage in Yuanzhou Town of Huizhou City, Guangdong Province, Sunwoda delivered care packages, supplies, and New Year blessings to 56elderly individuals and families in need, fostering social inclusion and community support.
Delivering GoodnessThe Sunwoda Foundation has established the "Sunwoda Love Journey Program." This program is dedicated to supporting rural development througheducational, ecological, cultural, and healthcare revitalization. Additionally, it actively develops the "Community Connection Program" that focuses onsanitationworkersandmedicalsta,contributingtotheconstructionofharmoniousandinclusivecommunities.
Sunwoda Voice Program - Narrative Medicine Capability Enhancement ProgramCase
Sanitation Worker Heat Relief ProgramCase
Conducts Heartwarming Spring Festival Visit ActivityCase
Conducts Tribute to Healthcare ProfessionalsCase
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After the earthquake in Jishishan County in Linxia Prefecture, Gansu Province, the Sunwoda Foundation provided immediate assistance anddonated funds for post-disaster reconstruction. In 2024, the Foundation, in collaboration with the Gansu Yishan Yishui Center for Environmentaland Social Development, promoted the Climate Change Response - Community Livelihood Improvement Project. Through a "Foundationfunding+communitycontribution"cooperationmodel,200aectedhouseholdsinGanhetanVillageandMeipoVillageofDahejiaTown,Jishishan County, received solar water heaters, helping villagers reduce energy costs and improve their quality of life.
Employee Volunteers
Sunwoda strives to cultivate a culture of social engagement by organizing diverse public welfare activities and encouraging employees to activelyparticipate in public service and contribute to society, thereby promoting the construction of a harmonious society.
Sunwoda Volunteer Service Team
Respect for the elderly at the Double Ninth Festival
Sunwoda Volunteer Service Team
Gained social recognition
Disaster Relief
Sunwoda is committed to advancing to the front lines of disaster response, actively participating in disaster relief, disaster rescue assistance, andpost-disasterreconstruction,therebyfulllingitscorporatesocialresponsibility.TheSunwodaFoundationhasestablishedthe"SunwodaArkSupport"publicwelfareprojecttoprovidetimelymaterialsandfundstoaectedcommunities,helpingdisaster-strickenareasrestoreproductionandlifeandbuild a more resilient disaster response system.Post-Disaster Reconstruction in Jishishan County:
Climate Change Response - Community Livelihood Improvement ProjectCase
In July 2024, the Sunwoda Foundation launched the "Love Continues Life- Sunwoda 2024 Youth Charity Action", calling on employees from variousSunwoda industrial parks to actively respond to the voluntary blood donationappeals from blood centers and blood stations in various cities, contributingto the voluntary blood donation in China. This event attracted a total of 681participants, among which 222 people participated in blood donation and176peoplenisheddonation,withatotalblooddonationvolumeof59,650milliliters.
In October 2024, the Sunwoda Foundation led 25 employees toparticipate in the "Walking for Love - Sunny Doll Charity Hiking"event, focusing on caring for children with blood tumors, and joinedTencent's Step Donation Campaign. Sunwoda employees activelysupported the cause with their actions, raising awareness of bloodtumors and bringing happiness to these children. After the hikingevent, the Sunwoda team walked a total of 377,145 steps, donating atotal of RMB 4,868.52 for charity.
Rural Revitalization
Sunwoda closely follows the national rural revitalization strategy. By continuously makingeortsinkeyareassuchaseducational,cultural,andecological,theCompanyempowersruraldevelopmentinallaspects.In2024,Sunwodacarriedoutdiversiedruralrevitalizationactivitiesin places such as Zhangxi She Ethnic Township in Dongyuan County of Heyuan City, Yong'an Townin Du'an County of Guangxi, and Lingyun County in Baise City of Guangxi, to assist in the goal ofcommon prosperity.Rural Revitalization Honorary Awards for the Sunwoda Foundation
Investment in rural revitalization:
RMB
2.419
millionThrough the SunwodaFoundation
Bronze Award for Red Cotton Cup in 2023Guangdong Poverty Alleviation and Assistance
"Charitable Enterprises (Organizations)"in Maoming City's 2023 "6·30" RuralRevitalization Campaign
Rural Work Leading Group ofthe Guangdong Provincial CPCCommittee
Rural Work Leading Group of theMaoming Municipal CPC Committee
2024 Youth Charity Action - Sunwoda Voluntary Blood Donation DayCase
"Walking for Love - Sunny Doll Charity Hiking Event"Case
2024
Totalbeneciaries:over
210,000 people125126
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Cultural Revitalization
Healthcare Revitalization
Sunwoda continuously participates in cultural revitalization and promotes the construction of a culturally strong nation. On one hand, the Companyactively advances the construction of cultural infrastructure, solidifying the hardware foundation for cultural development. On the other hand,Sunwoda collaborates with various social entities to actively support and organize diverse cultural activities, enhancing cultural soft power andpromoting cultural excellence, which is done through a "combination of soft and hard power" approach, providing comprehensive support forcultural revitalization.
Sunwoda extends its commitment to healthcare accessibility by bringing medical assistance programs to rural communities, providing higher-qualitybasichealthcareservicesandecientlypromotingsustainabledevelopmentofruralhealthcaresystems.
To further enrich the cultural life of the people, the Sunwoda Foundation supports the construction of the Maoming Jinzhang Chen Art Museum,aiming to preserve Lingnan calligraphy and painting art, promote the prosperity and development of Chinese painting, and carry forward theexcellent traditional Chinese culture.
To better meet the medical needs of rural residents and addressthe shortcomings of medical hardware facilities at the ZhangxiShe Ethnic Township Health Center in Dongyuan County ofHeyuan City, the Sunwoda Foundation, along with other socialforces, donated funds to purchase ambulances and other medicalequipment for the Center. Additionally, to promote the well-beingand happiness of the elderly, the Sunwoda Foundation alsoestablished a senior service station in Tuguaxu Village to create abetter living environment for rural seniors.
Construction Support Project for Maoming Jinzhang Chen Art MuseumCase
Building Rural Medical InfrastructureCase
Educational Revitalization
Ecological Revitalization
Sunwoda is committed to empowering rural revitalization through education. The Company has carried out multiple projects for teachinginfrastructure construction and educational public welfare, continuously improving the infrastructure and teaching environment of rural schools andhelping students grow up healthily.
Ecological revitalization is an important component of rural revitalization. Sunwoda, through community ecological garden renovation, sewagetreatment, and other public welfare projects, meticulously manages the community environment at the rural-urban boundary, creating a warm homefor residents and contributing to the sustainable development of rural areas.
Toeectivelyimprovethequalityoflifeforteachersandstudentsandtocomprehensivelyoptimizethecampuslearningandlivingenvironment, the Sunwoda Foundation donated a charitable canteen with a total area of 513 square meters to Shantou Primary School inLingmenTown,eectivelyimprovingthediningconditionsfor766teachersandstudents.
Sunwoda Charitable CanteenDonation Ceremony for Sunwoda Charitable Canteen Project
To further enhance the football skills of rural youth, the Sunwoda Foundation fully supports the implementation of the "Sunwoda Rural CampusFootball Revitalization Program" at Lingyun Experimental Primary School in Lingyun County of Baise, Guangxi. This Program aims to assist ruralstudents in participating in the children's football training camp and study tour activities jointly organized by SEVB and VfL Wolfsburg FootballClub, donating a batch of football training equipment to the school to inspire children's love for football and support the development of youthfootball education in rural areas.
To improve the living environment of Shanhou Village, the Sunwoda Foundation strongly supported the sewage treatment project in ShanhouVillage, Lingmen Town, Dianbai District. Through the construction of sewage treatment facilities and laying sewage collection pipelines, alongwith ecological restoration and environmental protection education, this project comprehensively improved the living environment for villagersand revitalized the ecological vitality of Shanhou Village.
Charitable Canteen ProjectCase
Rural Campus Football Revitalization ProgramCase
Ecological Revitalization in Lingmen Town · Sewage Treatment Project in Shanhou VillageCase
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Indirect energy consumptiontce- - 198,162.46Combined energy consumption intensity
tce/million dollars
of revenue
- - 4.30Clean energy usetce- - 94,982.53Proportion of clean energy use to total energyconsumption
%--39.47
Clean energy use byenergy type
Petroleumtce- - 42,174.68
Percentage of naturalgas use
%--44.40Solar energy
tce- - 11,659.26Share of solar energy use%--12.28Others
tce--41,148.59Percentage of other uses%--43.32Greenhouse gasemissions
Scope ItCO
e 34,948.81 102,959.97110,217.78
Scope IItCO
e 603,471.48 880,010.62872,270.66
Total GHG emissions (Scope I + Scope II)tCO
e 638,420.29 982,970.59982,488.44
Total water withdrawal
Cubic meter3,319,597.00 3,697,300.00 6,513,024.00Total displacementCubic meter5,128,696.22Industrial wastewater discharge
Cubic meter974,815.00 362,306.00 52,472.50
Wastewater pollutantdischarges
Biochemical OxygenDemand (BOD) dischargein wastewater
Ton
37.9914.173.29Chemical OxygenDemand (COD) dischargefrom wastewater
Ton
123.6953.075.69Ammonia and nitrogen(NH3-N) emissions fromwastewater
Ton
3.274.894.01Discharge of suspendedsolids (SS) fromwastewater
Ton
29.397.315.79Total phosphorus(TP) discharge fromwastewater
Ton
0.360.761.36Total Nitrogen (TN)Emissions fromWastewater
Ton
3.413.223.9Total emissions
Cubic meter-- 4,934,989,756.00
The statistics on solar clean energy consumption cover both the company's centralized and distributed photovoltaic (PV) self-consumption.
Thestatisticsonothercleanenergyconsumptionincludethecompany'spurchasedgreenelectricitycerticates.
Total greenhouse gas emissions include scope 1 and scope 2 greenhouse gas emissions. The calculation of Sunwoda's greenhouse gas emissions refers to the Greenhouse Gas Protocol (GHG Protocol)andISO14064-1:2018relatedrequirements.The2023datainthisreporthasbeenadjustedafterverication,andthediscloseddataissubjecttothisupdatedversion.The2022datawillnotberestated.
During the reporting period, the company consistently upheld its environmentally sustainable principles and advanced water resource management with water conservation measures. All water intakewassourcedfrommunicipalwatersupplies.Themetricpreviouslytermed"WaterUsage"for2022and2023hasbeenrectiedto"TotalWaterIntake."Sunwoda'stotalwaterintakeincreaseddueto expanded statistical coverage and production capacity growth.
Duringthereportingperiod,thecompanycontinuedtooptimizeindustrialwastewaterdischargereductionmeasures,resultinginasignicantdecreaseinindustrialwastewaterdischargevolume.
Duringthereportingperiod,thecompanypersistentlyimplementedcleanproductionpracticesandeectivewastewatertreatmentmeasures,achievingsubstantialreductionsinBODandCODemissions.
During the reporting period, the unit of measurement for historical metrics was adjusted from "ton" to "cubic meter."
Key Performance Table
Economy
Environment
IndicatorUnit202220232024
Revenues
RMB tenthousand
5,216,226.934,786,222.70 5,602,063.41NetprotattributabletoshareholdersoftheCompany
RMB tenthousand
106,801.44 107,619.83 146,824.06Earnings per shareRMB/share 0.62 0.58 0.79Gearing% 64.68 59.07 63.44Total tax payments
RMB tenthousand
90,600 112,300 128,488
IndicatorUnit202220232024
Number of incidents in which penalties wereimposed for violating environmental protectionlaws and regulations
Item- - 0
Amount of penalties for major administrativepenalties imposed by ecological andenvironmental and other relevant authorities forenvironmental incidents during the reportingperiod
RMB ten thousand- - 0
Stationary source diesel fuel usageTon- -1.01
GasolineusageforocialvehiclesLiter192,033.15 191,512.76 294,028.53
Dieselusageforocialvehicles
Liter7,735.97 3,773.00 27,632.34
Natural gas usage
Cubic meter15,679,081.00 14,178,905.76 31,710,282.33
Total purchased electricity usage
MWh918,076.83 929,540.59 1,355,444.37Market-based purchase of green powerMWh- - 1,520
GreenpowercerticateprocurementvolumeMWh--334.574
Purchased steam usageGJ- - 579,568.70
Combined energy consumptiontce- -240,658.80
Direct energy consumptiontce- - 42,496.34
Duringthereportingperiod,theCompanyremainedcommittedtoitsenvironmentallysustainableprinciples,consistentlyimplementingenergyeciencyinitiatives.Theexpandedscopeofstatisticalcoveragecoupledwithproductioncapacityexpansionresultedinincreasedgasolineanddieselconsumptionbyocialvehicles.
Duringthereportingperiod,thecompanyremainedsteadfastinitscommitmenttoenvironmentallysustainableprinciples,continuouslyadvancingenergyeciencyinitiatives.However,Sunwoda experienced increased natural gas consumption due to adjustments in statistical reporting methodology and the commissioning of new production facilities and equipment under capacity expansion.
During the reporting period, the company maintained its adherence to environmentally sustainable development principles and persistently implemented energy conservation measures. Sunwoda'stotal purchased electricity consumption rose owing to revised statistical reporting parameters and the operational commencement of new manufacturing complexes and equipment following production capacity expansion. The disclosure metric has been updated from "Electricity" to "Total Purchased Electricity Consumption," with historical data remaining unrevised.129130
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Society
IndicatorUnit202220232024Total number of employees People44,842 47,448 54,292
Number of employeesby gender
Male People30,833 32,519 37,645
Female People14,009 14,929 16,647Number of employeesby age
Over 50 years old People163 695 862
30 to 50 years People21,590 22,572 25,976Under 30 People23,089 24,181 27,454Number ofemployees by type ofemployment
Full-time labor contract People44,641 46,531 50,287Full-time labor dispatch system People22 6 55Concurrent job People- - 0Others
People179 911 3,950
Number of employeesby type of function
Production personnel People28,656 31,396 36,856
Technical personnel People8,364 8,442 8,389
Sales personnel People498 628 755Financial personne People270 327 331
Administrative personnel People7,054 6,655 7,961
Number of employeesby education level
PhD degree People107 133 147
Master's degree People1,360 2,002 2,308Bachelor's degree People7,467 8,338 9,550Junior college degree People7,319 7,503 9,974Below junior college degree People28,589 29,472 32,313Number of employeesby region
Mainland China Jobs People44,799 47,399 53,948Hong Kong,Macao ,Taiwan People11 16 26Overseas Work People32 33 318Number of minority employees People10,826 5,275 5,841
The geographic breakdown of employee headcount is calculated based on employees' primary work locations.
During the reporting period, changes in statistical methodology resulted in a reduction of senior management headcount. Historical data will not be restated.SeniormanagementisdenedaspersonnelatGeneralManagerlevelandabove.
Exhaust air pollutantemissions
Emissions of sulfur oxides(SOx) from exhaust gases
Ton< LOD0.11 2.75Emissions of nitrogenoxides (NOx) fromexhaust gases
Ton
7.325.59 22.53Emissions of particulatematter (PM) from exhaustgases
Ton
1.336.83 7.34Emissions of volatileorganic compounds(VOCs) from exhaustgases
Ton
0.785.64 18.18Non-methanehydrocarbon (NMHC)emissions from exhaustgases
Ton
8.3818.20 16.92
Ozone-depletingsubstance (ODS)emissions from exhaustgases
Kilograms oftrichlorou-oromethaneequivalent
- - 1.50Total hazardous waste
Ton1,231.86 1,619.72 2,622.33Volume of hazardouswaste by disposalmethod
Incineration with energyrecovery
Ton-- 1,720.34Incineration withoutenergy recovery
Ton -- 281.51LandllTon--41.73Others
Ton --578.75Total non-hazardous waste
Ton2,868.61 4,482.57 45,810.81
Volume of non-hazardous waste bydisposal method
Incineration with energyrecovery
Ton--4,013.15Incineration withoutenergy recovery
Ton -- 10,872.95LandllTon --1,459.95Recycling/reuseTon2,669.32 3,586.06 22,242.59OthersTon- -7,222.17Total use of packaging materials formanufactured goods
Item-- 97,150,695
During the reporting period, the company consistently adhered to environmentally sustainable principles and advanced waste management and reduction initiatives. The expansion of statistical coverage scope and increased production capacity resulted in a rise in Sunwoda's total hazardous waste volume.
During the reporting period, the company continued to promote comprehensive utilization of hazardous waste, progressively increasing recycling volumes. Other disposal methods for hazardous wastenowincorporateintegratedrecyclingquantities.Datashowssignicantvariationscomparedto2023duetomethodologicaladjustments.
During the reporting period, the company persistently enhanced comprehensive utilization of non-hazardous waste, steadily augmenting recycling volumes. Expanded statistical coverage and production capacity expansion contributed to an increase in Sunwoda's total non-hazardous waste volume.
Packaging material statistics encompass 48 types of consumables including PE bags, ABS reels, EVA boxes, adhesive tapes, wooden boards, and wooden crates.
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Number of employees with disabilities People-- 56
Number of employees at management level
People --76Number of employeesat management levelby gender
Male People4,609 4,468 52Female People1,079 1,142 24Percentage of female employees at management level%
23.4120.3631.58Average Employee Satisfaction/Employee EngagementScore
Point --4.25Employee Satisfaction Survey Coverage
% --92.07
Percentage of employees covered by OHSMS% --100Occupational healthand safety training
Percentage of employeescovered
% --98
Number of persons trained People -- 408,217Total duration of trainingHour -- 865,011Physical examination rate for occupational diseases offront-line employees
% -- 100
Numberofemployeessueringfromoccupationaldiseases
People --0Number of major security incidentsItem --0Number of employees who died as a result of work-related injuries
People --0Employee Workers' Compensation Insurance Coverage% --100
Amount invested in employee workers' compensationinsurance
RMB tenthousand
--133.89Workplace safety liability insurance coverage% --100Employee safety liability insurance input amount
RMB tenthousand
--192.09Total hours of training received by employeesHour26,757 290,233 224,117
Length of timeemployees receivetraining, by gender
MaleHour --110,498.75FemaleHour --113,618.25NumberofR&Dsta People8,3648,442 8,389Amount of R&D investment
RMB 100million
27.4227.11
33.30
Amount of R&D investment as a percentage of mainbusiness revenue
%
5.265.66
5.94
Customer Satisfaction%-- 92.89Product testing pass rate
%- - 99.29
Number of product recalls for quality reasonsItem- 00Amount involved in major liability accidents damagesrelated to safety and quality of products and services thatoccurred during the reporting period
RMB tenthousand
- - 0Number of data security incidentsItem- 00Amount involved in data security incidents
RMB tenthousand
- - 0Number of customer privacy breachesItem- - 0
Amount involved in customer privacy breaches
RMB tenthousand
- - 0Total number of suppliers
Supplier5,218 4,020 4,309Number of suppliers byregionmeasure word
Mainland China Supplier4,740 3,512 3,970
Hong Kong, Macau, Taiwanand Overseas
Supplier478 508 339
Number of key vendors Supplier- - 2,486
Number of non-key suppliers Supplier- - 1,823
Total number of vendors that have signed the vendorcode of conduct
Supplier- - 3,266
Number of vendor trainingssubstandard- - 113
Total number of new vendors Supplier- - 977
Numberofsupplierscertiedtotheenvironmentalmanagement system
Supplier- - 1,973
Numberofsupplierswithcertiedoccupationalhealthand safety management systems
Supplier- - 1,333
Numberofsupplierswithcertiedqualitymanagementsystems
Supplier- - 2,411
Amount of rural revitalization inputs
RMB tenthousand
- - 241.90
Number of people reached by rural revitalization People- - 215,912
Amount spent on public charity
RMB tenthousand
686.90 1,453.30 592.08
Number of employee volunteering trips People- - 3,178Number of hours of volunteer activitiesHour1,980 870 1,507
GovernanceIndicatorUnit202220232024Number of incidents of litigation or major administrative penalties resulting fromthe company's unfair competition behavior during the reporting period
Item- 00Amount involved in litigation or major administrative penalties due to unfaircompetition by the company during the reporting period
RMB tenthousand
- 00 Internal Disciplinary Measures for Employee Misconduct and Fraudpeople--25
During the reporting period, changes in statistical methodology resulted in a reduction of senior management headcount. Historical data will not be restated.SeniormanagementisdenedaspersonnelatGeneralManagerlevelandabove.
The employee satisfaction survey excludes 3C Lithium Wei and Huizhou New Energy business units.
The work safety liability insurance for 2024 was procured in November 2024, with policy period covering November 2024 to November 2025. The companyannually purchases work safety liability insurance for employees.
Product inspection pass rate is calculated based on post-production quality checks.
Supplier-relateddatareectsquantitiesasofthereportingperiodend.
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Report Index
GRI IndexGRI standardDisclosuresLocation
GRI 2: General disclosures 20212-1Organizational detailsAboutthisReport,CompanyProle2-2Entities included in the organization's sustainability reportingAboutthisReport,CompanyProle
2-3Reporting period, frequency and contact pointAbout this Report2-4Restatements of informationNot involved
2-5External assuranceIndependentVericationReport
2-6Activities, value chain and other business relationshipsCompanyProle
2-7EmployeesCultivating a Vibrant Workplace
2-8Workers who are not employeesEmployees Rights and Interests Protection
2-9Governance structure and composition
Sustainability Management Structure,Governance, Corporate Governance2-10Nomination and selection of the highest governance bodyCorporate Governance2-11Chair of the highest governance bodyCorporate Governance2-12Role of the highest governance body in overseeing thef impactsCorporate Governance
2-13Delegation of responsibility for managing impacts
Sustainability Management Structure,Governance2-14Role of the highest governance body in sustainability reportingSustainability Management Structure2-15ConictsofinterestEnsuring Stable Operations2-16Communication of critical concerns
Communication with Stakeholders, EnsuringStable Operations2-17Communication of critical concerns
Sustainable Development Strategy, EnsuringStable Operations2-18Evaluation of the performance of the highest governance body
Sustainability Management Structure,Ensuring Stable Operations2-19Remuneration policiesEmployees Rights and Interests Protection2-20Process to determine remunerationCultivating a Vibrant Workplace2-21Statement on sustainable development strategySustainable Development Strategy2-22Policy commitments
About this Report, Sunwoda’s SustainableDevelopment Strategy, Addressing ClimateChange, Establishing Responsible SupplyChain
GRI standardDisclosuresLocation
2-23Embedding policy commitmentsSustainability Management Structure2-24Processes to remediate negative impactsSafeguarding Product Quality and Safety2-25Mechanisms for seeking advice and raising concerns
Communication with Stakeholders, EnsuringStable Operations, Cultivating a VibrantWorkplace2-26Compliance with laws and regulations
Conserving Biodiversity, Ensuring StableOperations, Cultivating a Vibrant Workplace2-27Membership associationsAddressing Climate Change2-28Approach to stakeholder engagement
Communication with Stakeholders, InvestorRelations Management2-29Collective bargaining agreements
Integrity and Business Ethics, EmployeesRights and Interests ProtectionGRI 3: Material Topics 20213-1Process to determine material topicsDouble Materiality Assessment3-2List of material topicsDouble Materiality Assessment3-3Management of material topicsDouble Materiality AssessmentGRI 201: Economic Performance 2016201-1Direct economic value generated and distributedCompanyProle,KeyPerformanceTable201-2Financial implications and other risks and opportunities due toclimate changeAddressing Climate Change201-3DenedbenetplanobligationsandotherretirementplansEmployees Rights and Interests ProtectionGRI 203: Indirect Economic Impacts203-1Infrastructure investments and services supported
CompanyProle,EarlyStage:GreenDesignand Technology, Building an IntegrityEnterprise, Constructing a Beautiful Home203-2SignicantindirecteconomicimpactsPioneer R&D InnovationGRI 205: Anti-corruption 2016205-1Operations assessed for risks related to corruptionIntegrity and Business Ethics205-2Communication and training about anti-corruption policies andproceduresIntegrity and Business Ethics205-3ConrmedincidentsofcorruptionandactionstakenIntegrity and Business EthicsGRI 206: Anti-competitive Behavior 2016206-1Legal actions for anti-competitive behavior, anti-trust, and monopoly practicesIntegrity and Business Ethics135136
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GRI standardDisclosuresLocation
GRI 306: Waste 2020
306-1Wastegenerationandsignicantwaste-relatedimpactsPollutant and Waste Management306-2Managementofsignicantwaste-relatedimpactsPollutant and Waste Management306-3Waste generatedPollutant and Waste Management
306-4Waste diverted from disposalPollutant and Waste Management306-5Waste directed to disposalPollutant and Waste ManagementGRI 308: Supplier Environmental Assessment 2016
308-1New suppliers that were screened using environmental criteriaSupply Chain Resilience308-2Negative environmental impacts in the supply chain and actions takenSupplier ManagementGRI 401: Employment 2016401-1New employee hires and employee turnoverKey Performance Table401-2
Benetsprovidedtofull-timeemployeesthatarenotprovidedtotemporaryorpart-time employees
Employees Rights and Interests ProtectionGRI 403：Occupational Health and Safety 2018403-1Occupational health and safety management systemOccupational Health and Safety403-2Hazardidentication,riskassessment,andincidentinvestigationOccupational Health and Safety403-3Occupational health servicesOccupational Health and Safety
403-4
Worker participation, consultation, and communication onoccupational healthand safety
Occupational Health and Safety403-5Worker training on occupational health and safetyOccupational Health and Safety403-6Promotion of worker healthOccupational Health and Safety403-7
Prevention and mitigation of occupational health and safetyimpacts directlylinked by business relationships
Occupational Health and Safety403-8Workers covered by an occupational health and safetymanagement systemOccupational Health and Safety403-9Work-related injuriesOccupational Health and Safety403-10Work-related ill healthOccupational Health and SafetyGRI 404: Training and Education 2016404-1Average hours of training per year per employeeKey Performance Table404-2Programs for upgrading employee skills and transition assistanceprogramsStaTrainingandDevelopment404-3
Percentage of employees receiving regular performance andcareer developmentreviews
StaTrainingandDevelopment
GRI standardDisclosuresLocation
GRI 301: Materials 2016
301-1Materials used by weight or volumeKey Performance Table301-2Recycled input materials used
End-of-Life Stage:GreenPackaging,Logistics,and Recycling301-3Reclaimed products and their packaging materials
End-of-Life Stage:GreenPackaging,Logistics,and RecyclingGRI 302: Energy 2016302-1Energy consumption within the organizationKey Performance Table302-2Energy consumption outside of the organizationKey Performance Table302-3Energy intensityKey Performance Table302-4Reduction of energy consumptionEnergy Management302-5Reductions in energy requirements of products and services
Full Lifecycle Green Solutions, AddressingClimate ChangeGRI 303: Water and Euents 2018303-1Interactions with water as a shared resourceWater Resource Management303-2Management of water discharge-related impactsPollutant and Waste Management303-3Water withdrawalKey Performance Table303-4Water dischargeKey Performance Table303-5Water consumptionKey Performance TableGRI 304: Biodiversity 2016304-2Signicantimpactsofactivities,productsandservicesonbiodiversityConserving BiodiversityGRI 305: Emissions 2016305-1Direct (Scope 1) GHG emissions
Addressing Climate Change, KeyPerformance Table305-2Energy indirect (Scope 2) GHG emissions
Addressing Climate Change, KeyPerformance Table305-3Other indirect (Scope 3) GHG emissions
Addressing Climate Change, KeyPerformance Table305-4GHG emissions intensity
Addressing Climate Change, KeyPerformance Table305-5Reduction of GHG emissions
Addressing Climate Change, KeyPerformance Table305-6Emissions of ozone-depleting substances (ODS)
Addressing Climate Change, KeyPerformance Table
305-7Nitrogenoxides(NOx),sulfuroxides(SOx),andothersignicantairemissions
Addressing Climate Change, KeyPerformance Table
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ChapterGuidelinesCorresponding Chapter
Chapter I General ProvisionsArticles 1 - 10About This ReportChapter II Disclosure of Sustainability FrameworkArticles 11 - 19
Sustainability Management, SustainabilityImpact, Dual Materiality Analysis
Chapter IIIDisclosure ofEnvironmentalInformation
Section 1 AddressingClimate Change
Addressing climatechange
Articles 20 - 28Addressing Climate Change
Section 2 PollutionPrevention andEcosystem Protection
Pollutant EmissionsArticle 30Pollutant and Waste ManagementWaste DisposalArticle 31Pollutant and Waste ManagementEcosystem andBiodiversityConservation
Article 32Conserving BiodiversityEnvironmentalcompliancemanagement
Article 33Environmental Management SystemSection 3 ResourceUtilization and CircularEconomy
Energy UtilizationArticles 34 - 35Energy ManagementWater ResourceUtilization
Article 36Water Resource ManagementCircular EconomyArticle 37
End-of-Life Stage: Green Packaging,Logistics, and Recycling
Chapter IVDisclosure of SocialInformation
Section 1 RuralRevitalization andSocial Contribution
Rural RevitalizationArticles 38-39Rural RevitalizationSocial ContributionArticle 40Social Welfare
Section 2 Innovation-Driven andTechnological Ethics
Innovation-DrivenArticle 42Pioneer R&D Innovation
Technology EthicsArticle 43
Not applicable (The entity has not engagedinscienticresearchintechnologyethics-sensitiveeldssuchaslifesciencesandarticialintelligence,buthasoptimizedmanagement in terms of data security.Please refer to 3.2.2. Information Securityand Privacy Protection for more details.)
Section 3 Suppliersand Customers
Supply Chain RiskManagement
Articles 44 - 45Establishing Responsible Supply ChainEqual Treatment ofSmall and Medium-Sized Enterprises
Article 46
Not applicable (The balance of accountspayable at the end of the reporting periodless than 50% of total assets. Please refer tothe annual report for more details.)Product and ServiceSafety and Quality
Article 47
Full Lifecycle Green Solutions, SafeguardingProduct Quality and Safety, CreatingCustomer ValueData Security andCustomer PrivacyProtection
Article 48Information Security and Privacy ProtectionSection 4 EmployeesEmployeesArticles 49 - 50Cultivating a Vibrant Workplace
Index of Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange--Sustainability Report (For Trial Implementation)GRI standardDisclosuresLocation
GRI 405: Diversity and Equal Opportunity 2016
405-1Diversity of governance bodies and employeesEmployees Rights and Interests Protection405-2Ratio of basic salary and remuneration of women to men
Employees Rights and Interests Protection,Key Performance Table
GRI 406: Non-discrimination (2016)406-1Incidents of discrimination and corrective actions takenEmployees Rights and Interests ProtectionGRI 407: Freedom of Association and Collective Bargaining 201607-1
Operations and suppliers in which the right to freedom of associationand collective bargaining may be at risk
Employees Rights and Interests Protection,Supplier ManagementGRI 408: Child Labor (2016)408-1
Operationsandsuppliersatsignicantriskforincidentsofchild labor
Employees Rights and Interests Protection,Supplier ManagementGRI 409: Forced or Compulsory Labor (2016)
409-1
Operationsandsuppliersatsignicantriskforincidentsof forced or compulsory labor
Employees Rights and Interests Protection,Supplier Management
GRI 413: Local Communities 2016413-1
Operations with local community engagement, impact assessments, anddevelopment programs
Environmental Management System
GRI 414: Supplier Social Assessment 2016414-1New suppliers that were screened using social criteriaSupply Chain Resilience
414-2Negative social impacts in the supply chain and actions takenSupplier Management
GRI 416: Customer Health and Safety 2016416-1Assessment of the health and safety impacts of product and service categoriesSafeguarding Product Quality and Safety
416-2
Incidents of non-compliance concerning the health and safety impacts ofproducts and services
Safeguarding Product Quality and Safety
GRI 417: Marketing and Labeling 2016417-1Requirements for product and service information and labeling
Safeguarding Product Quality and Safety,Creating Customer Value, Key PerformanceTable
417-2
Incidents of non-compliance concerning product and service information andlabeling
Safeguarding Product Quality and Safety,Creating Customer Value
417-3Incidents of non-compliance concerning marketing communications
SafeguardingProductQualityandSafety，Creating Customer ValueGRI 418: Customer Privacy 2016418-1
Substantiated complaints concerning breaches of customer privacy and lossesof customer data
Creating Customer Value, Key PerformanceTable139140
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Sustainability Issues
Material IssuesIssue ExplanationA-share Guidelines
CorrespondingChapter
Governance (G)
1Robust governance
Enhance corporate governance structure (including, butnot limited to, increasing the number of independentdirectors and Supervisory Committee members) andimprove the diversity of the Board of Directors to reducepotential governance risks.Improve corporate sustainability/ESG governancestructure and standardize the management processesfor sustainable development and ESG-related matters.Operate legally and compliantly, actively monitor,evaluate,andaddresspotentialrisks,suchasnancialandlegalrisks,toaneectiveinternalcontrol.
Communication withStakeholdersArticles 52, 53, 55, and 56 ofthe Guidelines
Accountability
Anti-corruption andbusiness ethics
Uphold the correct values and principles and adhereto standards and norms to prevent corruption risks;formulate anti-corruption policies and take actionagainst corruption incidents, reporting unethical,illegal, and dishonest behaviors.Strengthen the protection of trade secrets and preventunfair competition and monopoly to promote andfoster a fair market competition environment.
Anti-Commercial Bribery andAnti-CorruptionAnti-unfair competitionDue DiligenceArticles 52, 55, and 56 of theGuidelines
Accountability
Information Securityand Privacy Protection
Ensure information security, including that of theCompany, clients, and employees, to protect clientprivacy and use client data responsibly.
Data Security and CustomerPrivacy ProtectionArticle 48 of the Guidelines
Accountability
Intellectual PropertyProtection
Value intellectual property protection, establish andimprove the Regulations on IP Management, andstrengthen the application, protection, and utilizationof intellectual property to promote technologicalinnovation and achievement transformation.
Innovation-DrivenArticle 54 of the GuidelinesLifecycle
ChapterGuidelinesCorresponding Chapter
Chapter VDisclosure ofSustainabilityGovernanceInformation
Section 1SustainabilityGovernanceMechanism
CorporateGovernance
Article 51
Sustainability Management, EnsuringStable Operation
Due DiligenceArticle 52
Integrity and Business Ethics, ResponsibleProcurement, Dual Materiality AssessmentCommunication withStakeholders
Article 53Communication with Stakeholders
Section 2 BusinessConducts
Anti-CommercialBribery and Anti-Corruption
Article 54Integrity and Business Ethics
Anti-UnfairCompetition
Article 56Integrity and Business Ethics
Chapter VI Supplementary Provisions and Interpretation
Article 57Index
Article 58Third-PartyVericationReport
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Material IssuesIssue ExplanationA-share Guidelines
CorrespondingChapterSocial (S)
12R&D and innovation
Increase R&D investment and promote technologicalinnovation to develop new products, technologies,and services with social value, thus enhancing corecompetitiveness.Focus on the ethical issues in sensitive areas of cutting-edge technology research, and adhere to ethical normsinscienticresearch,technologydevelopment,andotherscienticactivities.
Innovation-DrivenTechnology EthicsArticle 42 and Article 43 ofthe Guidelines
Lifecycle
High-quality productsand services
Strictly control product quality and safety to ensurecompliance with relevant standards and regulations,and strengthen quality management systems toproduce responsible and safe products.Oerhigh-qualitycustomerservice,valuecustomerneeds and feedback, and actively resolve customerissues to enhance customer satisfaction.
Product and Service Safetyand QualityArticle 47 of the Guidelines
AccountabilityPartnership
Responsible supplychain management
Enterprises optimize supply chain management toensure stability and sustainability by integrating ESGfactors throughout the entire process of supplier access,evaluation, and management. This continuouslyreduces operational risks and creates a responsiblesupply chain.Promote responsible mineral management and pledgetonouseofmineralsfromconict-aectedandhigh-riskareasthatinvolvearmedconict,widespreadviolence, or other risks harmful to the people.
Supply chain securityEqual Treatment of Small andMedium-Sized EnterprisesDue DiligenceArticle 45 and Article 52 ofthe Guidelines
Partnership
15Industry cooperation
Actively engage in industry exchanges and cooperationand treat small or medium-sized enterprises equallyto promote industry development and technologicalprogress as well as collaborative and sustainabledevelopment among industry partners.
Article 40 and Article 46 ofthe Guidelines
Partnership
Talent managementand development
Safeguard the legitimate rights and interests ofemployees through complying with labor regulationsand providing reasonable working conditions aswellascompensationbenetstocreateafavorableworking environment. Advocate for employee diversityandequality,respectindividualdierencesandcultural backgrounds of employees, and eliminatediscrimination and prejudice to establish an inclusiveand open working environment.Value employee training and development throughdiversiedtrainingcoursesandcareerdevelopmentopportunities to help employees enhance skills andcapabilities to realize the joint development of personaland enterprise values.
EmployeesArticle 50 of the GuidelinesPartnership
Occupational Healthand Safety
Prioritize employee health and safety by continuouslyimproving the work safety system and providing safetytraining and protective measures to prevent workplaceaccidents and occupational diseases and ensure thephysical and mental well-being of employees.
Partnership
Rural revitalization andsocial contribution
Actively involved in rural revitalization, public welfare,and charitable causes, paying attention to vulnerablegroups and social issues and establishing goodcommunication and cooperation with communities toprovide donations and support various public welfareactivities,therebyfulllingcorporateresponsibility.
Rural RevitalizationSocial ContributionArticle 39 and Article 40 ofthe Guidelines
Partnership
Material IssuesIssue ExplanationA-share Guidelines
CorrespondingChapterEnvironment (E)
Addressing climatechange
Enterprises take proactive measures to addressclimate change. They can participate in global climategovernance through carbon emissions reduction,energyeciencyimprovement,andothermeasurestomitigate the impact on the global climate and addressthe climate change crisis.
Addressing climate changeArticles 21- 28 of theGuidelines
Ecology
Environmentalcompliancemanagement
Build formal environmental management structuresand procedures to ensure that business activitiescomply with environmental regulatory requirementsand encourage continuous environmentalimprovement.
Environmental compliancemanagementArticle 33 of the Guidelines
Ecology
Energy managementand utilization
Plan, implement, inspect, and improve the energyusage of an organization or system through a series ofstrategiesandmeasurestoachieveeectiveutilizationand conservation of energy.
Energy UtilizationArticle 35 of the Guidelines
Ecology
Resource managementand circular economy
Focus on the utilization of water and other resources,resource conservation, and circular managementduring production and operation processes.Value reusable or recyclable materials to reduceresource consumption and waste generation.
Water Resource UtilizationCircular EconomyArticle 36 and Article 37 ofthe Guidelines
Lifecycle, Ecology
Emissions and wastemanagement
Control and manage emissions and waste from theentity during production and operation to reducenegative environmental impacts.
Pollutant EmissionsWaste DisposalArticle 30 and Article 31 ofthe Guidelines
Ecology
Biodiversityconservation
Prioritize biodiversity conservation and take measuresto protect the ecological environment and mitigatespecies extinction, thereby promoting ecologicalbalance and sustainable use of natural resources.
Ecosystem and BiodiversityConservationArticle 32 of the Guidelines
Ecology
Cleantechopportunities
Expand the precise strategic layout, investment, anddevelopment of clean and low-carbon technologiesand clean energy, promote the use of clean energy toseizegreentransformationopportunities,andoerlow-carbon transformation solutions for the valuechain.
Article 20 and Article 35 ofthe Guidelines
Lifecycle
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IssueFour elementsLocation
Correspondingpage number
R&D and Innovation
GovernanceLifecycle-Pioneer R&D Innovation
StrategyLifecycle-Pioneer R&D Innovation39-42Impact,Risk and OpportunityManagement
Lifecycle-Pioneer R&D Innovation39-44Metrics and TargetsLifecycle-Pioneer R&D Innovation
High-quality products andservices
GovernanceAccountability-Quality Management System
StrategyAccountability-Quality Management System
Impact,Risk and OpportunityManagement
Accountability-Quality Management Process76-82Metrics and Targets
Accountability-Quality Management System, SafeguardingProduct Quality and Safety
76-82
Responsible Supply ChainManagement
GovernancePartnership-Establishing Responsible Supply Chain110-116
StrategyPartnership-Establishing Responsible Supply Chain110-116Impact,Risk and OpportunityManagement
Partnership-Establishing Responsible Supply Chain110-116
Metrics and TargetsPartnership-Establishing Responsible Supply Chain110-116
Talent development andmanagement
GovernancePartnership-Cultivating a Vibrant Workplace85-101StrategyPartnership-Cultivating a Vibrant Workplace85-101Impact,Risk and OpportunityManagement
Partnership-Cultivating a Vibrant Workplace85-101Metrics and TargetsPartnership-Cultivating a Vibrant Workplace85-101
Occupational Health andSafety
GovernancePartnership-Cultivating a Vibrant Workplace102-103StrategyPartnership-Cultivating a Vibrant Workplace102-107Impact,Risk and OpportunityManagement
Partnership-Cultivating a Vibrant Workplace102-107
Metrics and TargetsPartnership-Cultivating a Vibrant Workplace102-107
Stable Governance
GovernanceAccountability-Ensuring Stable Operations65-72
StrategyAccountability-Ensuring Stable Operations65-72
Impact,Risk and OpportunityManagement
Accountability-Ensuring Stable Operations65-72
Metrics and TargetsAccountability-Ensuring Stable Operations65-72
Double Materiality Index Table
IssueFour elementsLocation
Correspondingpage numberAddressing ClimateChange
GovernanceEcology-Addressing Climate Change
StrategyEcology-Addressing Climate Change
Impact,Risk and OpportunityManagement
Ecology-Addressing Climate Change
Metrics and TargetsEcology-Addressing Climate Change50-51
Environmental ComplianceManagement
GovernanceEcology-Environmental Management
StrategyEcology-Environmental Management
Impact,Risk and OpportunityManagement
Ecology-Environmental Management
Metrics and TargetsEcology-Environmental Management
Resource Managementand Circular Economy
Governance
Ecology-Water Resource ManagementLifecycle-Full Lifecycle Green Solutions
Strategy
Ecology-Water Resource ManagementLifecycle-Full Lifecycle Green Solutions
29-38Impact,Risk and OpportunityManagement
Ecology-Water Resource ManagementLifecycle-Full Lifecycle Green Solutions
29-38Metrics and Targets
Ecology-Water Resource ManagementLifecycle-Full Lifecycle Green Solutions
29-38
Clean TechnologyOpportunities
Governance
Lifecycle-Full Lifecycle Green SolutionsLifecycle-Pioneer R&D Innovation
29-38
39-44Strategy
Lifecycle-Full Lifecycle Green SolutionsLifecycle-Pioneer R&D Innovation
29-38
39-44Impact,Risk and OpportunityManagement
Lifecycle-Full Lifecycle Green SolutionsLifecycle-Pioneer R&D Innovation
29-38
39-44Metrics and Targets
Lifecycle-Full Lifecycle Green SolutionsLifecycle-Pioneer R&D Innovation
29-38
39-44
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◆Physical risks: Extreme weather can cause shutdowns and production halts, decreasing production capacity and consequently reducingrevenue. Long-term climate change leads to rising energy prices and increased operational costs. ◆Policy and legal risks: As enterprises venturing overseas face increasingly stringent laws and regulations related to the environment,carbon emissions, and carbon footprints, the Company has to invest heavily to mitigate compliance risks or may face related penaltiesupon violations. ◆Business continuity: Vigorously implementing preventive measures against physical risks such as extreme weather enhances Sunwoda'sresilience against risks and ensures the continuity of production and operations. ◆Efficiency improvement and cost saving: Clean technologies and digital transformation will facilitate production and operationaleciency. ◆Policy incentives: The government provides "dual carbon"-related subsidies or tax incentives, enabling the Company to leverage suchpolicies to advance low-carbon transformation and business growth. ◆Market competitiveness: Developing low-carbon products and green solutions to meet domestic and international market demands,breaking through "green barriers" and exploring new markets.
? Lifecycle? Ecology◆Enterprises directly alleviate the pressure on the global climate system by reducing carbon emissions and improving
energy efficiency. They contribute to the mitigation of global warming, protect the ecological environment from theimpact of extreme weather events, assist global climate governance, and promote global ecological balance.
Impact ScopeImpact Cycle
OwnoperationsShort-termmid-termLong-termupstream anddownstreamvalue chaincommunitiescommunitiesIssueTypeSDGs
ImpactMateriality
FinancialMateriality
CorrespondingChapterDescription
◆The Company should strictly comply with environmental regulations, establish and improve environmental management structuresand procedures, reduce environmental risks, and encourage continuous environmental improvement to minimize the negative impactscaused by business operations. ◆Legalrisks:Failuretocomplywithenvironmentalregulationsorstandardsmayleadtoseriouslegalconsequences,includingnes,penalties, and even potential legal litigation and enforcement risks. ◆Operational risks: Non-compliance may lead to production halts, delays, or supply chain disruptions, thereby affecting overalloperationaleciencyandbusinessoutcomes.
◆Reputationrisks:Beingexposedasanon-compliantenterprisemaydamagebrandreputation,aectrelationshipswithcustomers,investors, and partners, and lead to a decline in market share. ◆Expanding into international markets: Some countries and regions increasingly demand higher environmental standards forimported products in global trade. By strengthening environmental compliance management, Sunwoda can ensure its products meetinternational environmental standards, facilitating smooth entry into international markets and expanding global business. ◆Driving technological innovation: To meet environmental compliance requirements, the Company continuously engages intechnological innovation and transformation.
? Ecology
Addressingclimate change
Impact
Risk
Opport-unities
Opport-unities
Analysis of Sustainable Development Issues and Their Impacts, Risks, and Opportunities
Environmentalcompliancemanagement
ImpactRisk
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Impact ScopeImpact Cycle
OwnoperationsShort-termmid-termLong-termupstream anddownstreamvalue chaincommunitiescommunities
IssueTypeSDGs
ImpactMateriality
FinancialMateriality
CorrespondingChapterDescription
◆TheCompanyshouldenhanceenergymanagementbyecientlyutilizingenergy,advocatingfortheuseofrenewableenergysources,and reducing reliance on fossil fuels to lower greenhouse gas emissions and promote the green transformation of the energy structure.
◆The Company should optimize water resource management, promote resource recycling, reduce resource consumption and wastegeneration,mitigateenvironmentaldamagecausedbyresourceextraction,improveresourceeciency,andcontributetoasustainableresource system.
◆Costrisks:FluctuationsinenergypricesmaysignicantlyimpacttheCompany'soperationalcosts,especiallyforenergy-intensiveindustries.Failuretoeectivelymanageenergyeciencywillleadtoincreasedcostsandimpactprotability.
◆Resourcescarcityrisks:Inwater-scarceregions,excessivewateruseorwastagemayleadtowatershortages,aectingprojectoperations and future development plans. Cost risks: Fluctuations in resource prices and supply chain disruptions may lead to increasedoperationalcosts,especiallyinprojectsreliantonsubstantialnaturalresources.IneectiveresourcemanagementmayexposetheCompany to high resource acquisition costs.
◆Costreductionandeciencyimprovement:Byoptimizingenergymanagement,theCompanycanimproveenergyutilizationeciency,reduceenergyconsumption,andlowercosts.Itcanalsofurtherimprovetheoperationaleciencyandreliabilityoftheenergysystem,enhancing Sunwoda's competitiveness. ◆Cooperationandinvestment:Energymanagementandutilizationinvolvemultipleeldsandprocesses,necessitatingextensivecollaboration between the Company and governments, research institutions, upstream and downstream enterprises, etc. The Companycanintegrateresourcesforjointenergyprojectdevelopment,technologicalR&D,andmarketexpansion,achievingmutualbenets.
◆Resource optimization and conservation: By implementing advanced resource and environmental management systems, the Companycanoptimizeresourceusage,boostproductioneciency,reduceoperatingcosts,andminimizenegativeenvironmentalimpacts. ◆Brand enhancement: As a pioneer in the circular economy, demonstrating the Company's commitment to environmental protection andresource management can enhance corporate image, attract eco-conscious investors, customers, and partners, and secure a favorableposition in the green economy transition.
? Ecology
? Ecology
◆The Company should strictly control the discharge of sewage, exhaust gases, and waste, optimize the management of "three wastes",reduce the pollution of hazardous substances to the environment, and protect water and soil quality, maintaining ecological balanceand creating a healthy living environment for local residents. ◆Regulatory risks: As local governments have strict regulations and standards on pollutant emissions, failure to comply with theserequirementsmayresultinsubstantialnesorpenalties,andevenleadtosupplychaindisruptions,aectingtheCompany'soperationsand business expansion. ◆Reputation risks: Excessive pollutant emissions or improper treatment may attract media and public attention, damaging theCompany'sbrandimageandaectingthecondenceofpotentialpartnersandinvestors. ◆Financial risks: Investments in governance and emission reduction technologies may increase operational costs, especially underincreasinglystringentenvironmentalprotectionrequirements.Moreover,thelong-termeectsofpollutantemissionsmayleadtoanincrease in environmental remediation costs. ◆Costsavingsandeciencyimprovement:Byoptimizingthe"threewastes"managementprocess,theCompanycanachieveresourcerecycling, thereby reducing raw material procurement costs and waste disposal costs. ◆Market competitiveness enhancement: Companies excelling in emissions and waste management can attract more consumers andinvestors,broadeningnancingchannelsandreducingnancingcosts.
? Ecology
Energymanagement andutilization
Resourcemanagement andcircular economy
Emissionsand wastemanagement
Impact
Impact
Impact
Risk
Risk
Risk
Opport-unities
Opport-unities
Opport-unities
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Impact ScopeImpact Cycle
OwnoperationsShort-termmid-termLong-termupstream anddownstreamvalue chaincommunitiescommunities
IssueTypeSDGs
ImpactMateriality
FinancialMateriality
CorrespondingChapterDescription
◆Measures should be taken to protect biodiversity, maintain ecosystem and species diversity, and promote harmonious coexistencebetween humans and nature throughout the entire process from site development to operational production. ◆Operational risks: Stricter biodiversity protection regulations may lead to more complex approval procedures and higher compliancecosts,therebyaectingproductionprogressandprotability. ◆Policy support and subsidies: Local governments may introduce support policies and subsidies, enabling the Company to reduce costsandobtainnancialsupportforbiodiversityprotectionprojectsandrelatedbusinessdevelopment.
◆Market demand and brand value enhancement: With increasing consumer awareness of environmental protection and sustainabledevelopment,companieswithastrongrecordofbiodiversityconservationwinacompetitiveedgeanddierentiatethemselvescompetitively, helping to enhance brand value and market share.
? Ecology
◆The Company should increase investment in clean and low-carbon technologies and reduce product carbon footprints to seizeopportunities in green transformation. This would include providing low-carbon solutions for the value chain, promoting thedevelopment of a green economy, and contributing to societal green transformation.
◆Economic risks: The introduction and application of clean technologies often require high initial investments, such as equipmentprocurement,infrastructureupgrades,andemployeetraining.Intheshortterm,thismaystraincorporatenances,especiallywhenthereturn on investment is uncertain. ◆Technical risks: The development and implementation of clean technologies rely on rapidly evolving science and technology, posingrisksoffailedupgradesorunmetexpectations,whichmayimpacttheoperationaleciencyandprojectoutcomesoftheCompany. ◆Marketrisks:Marketacceptanceofcleantechnologiesmaybeuncertain,especiallywhentraditionalmethodsaremorecost-eective,posing potential challenges for market promotion and customer acceptance.
◆Costsavings:Inthelongrun,cleantechnologiescanimproveenergyeciency,reduceresourcewaste,loweroperationalcosts,andenhance enterprises' overall resource management capabilities. ◆ Innovation and market expansion: By developing and applying clean technologies, the Company can seize the initiative in the low-carbon product market, explore new business opportunities, and establish technological innovation leadership within the industry. ◆Brand and reputation enhancement: Adopting clean technologies can bolster the Company's reputation in sustainable development,attractmoreenvironmentallyconsciouscustomers,investors,andpartners,andenhancebrandinuence. ◆Policy incentives: As governments worldwide vigorously support the application of clean technologies through tax reductions,subsidies,andgreennancingprograms,todrivethetransitionofenterprisestowardcleantechnologies,theCompanycanleveragethese policies to drive business growth and sustainable development.
? Lifecycle? Ecology
Biodiversityconservation
Cleantechopportunities
Impact
Impact
Risk
Risk
Opport-unities
Opport-unities
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Impact ScopeImpact CycleOwnoperationsShort-termmid-termLong-termupstream anddownstreamvalue chaincommunitiescommunities
IssueTypeSDGs
ImpactMateriality
FinancialMateriality
CorrespondingChapterDescription
◆The Company should increase investment in research and development, promote technological innovation, and develop new productsand technologies with social value, enhancing core competitiveness and ensuring that R&D activities comply with social standards. ◆Technical risks: Innovation projects may face technical R&D failure or unmet expectations, leading to resource waste and investmentlosses,aectingtheCompany'snancialperformanceandinnovationcapabilities,andimpactingotherbusinessoperations. ◆Market risks: Even if technological innovation succeeds, new products or services may not gain market recognition or customeracceptance, especially in cases of rapidly changing consumer demands or intense competition. ◆Compliance and intellectual property risks: In a rapidly evolving innovation environment, the Company may face intellectual propertydisputes or compliance issues, particularly when collaborating with international competitors or developing new technologies, whichmayaectcorporatereputationandoperations. ◆Industry leadership: Continuous innovation enables the Company to maintain its technological and market leadership and set industrybenchmarks, attracting more strategic partners and investors and enhancing its overall competitive advantage. ◆New market development: Innovation helps the Company enter new market sectors and meet growing customer demands, especiallyin achieving a larger share in emerging markets such as green products, smart manufacturing, and sustainable development. ◆Resourceeciencyimprovement:Newtechnologiesandprocessesdrivenbyinnovationcansignicantlyimproveresourceutilizationeciency,reduceoperatingcosts,andsupporttheCompany'ssustainabledevelopmentstrategy. ◆Policysupportandincentives:Aslocalgovernmentsmayprovidepolicybenets,taxreductions,andnancialsubsidiesforinnovationprojects, the Company can leverage these policy incentives to further accelerate its innovation pace.
? Lifecycle
◆The Company should strictly control quality and safety through comprehensive quality management and customer service systemsto safeguard the rights and interests of customers and consumers, providing them with safe, high-quality products and satisfactoryservices. ◆Quality Issues: Non-compliant products or services may result in customer complaints, returns, or even legal disputes, damaging theCompany's reputation. ◆Safety hazards: Safety hazards in products or services may endanger customer safety, resulting in severe legal consequences andnanciallosses. ◆Brand enhancement: Consistently providing high-quality and safe products and services helps enhance brand image and attract morecustomers. ◆Marketexpansion:High-qualityproductsandservicescanopenupnewmarkets,meettheneedsofdierentcustomers,andexpandbusiness scope.
? Accountability? Partnership
R&D andinnovation
High-qualityproducts andservices
Impact
Impact
Risk
Risk
Opport-unities
Opport-unities
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Impact ScopeImpact CycleOwnoperationsShort-termmid-termLong-termupstream anddownstreamvalue chaincommunitiescommunities
IssueTypeSDGs
ImpactMateriality
FinancialMateriality
CorrespondingChapterDescription
◆The Company should integrate ESG factors into the entire process of supplier access, evaluation, and management to optimizesupply chain management and ensure its stability and sustainability. This would reduce environmental and social risks, promote thedevelopment of supply chain partners, and advocate responsible procurement, ultimately contributing to a fair and sustainable globalsupply chain system.
◆Disruptionrisks:Supplychaindisruptions(suchasnaturaldisasters,marketuctuations,orsupplierissues)mayleadtomaterialshortagesorcostincreases,aectingtheCompany'sproductionschedulesandoperationalstability. ◆Compliance and reputation risks: Non-compliant partners in the supply chain for environmental or social responsibility standards mayexpose the Company to compliance issues and reputation risks. For example, being found using non-compliant materials or supplierswill harm the Company's brand image. ◆Cost risks: Supply chain management requires continuous resource investments, such as supplier screening and sustainableprocurementpractices,whichmayleadtoshort-termincreasesinoperatingcostsandimpactnancialperformance. ◆Qualitycontrolrisks:Thecomplexityofthesupplychainmakesqualitycontrolmoredicult.Productqualityissuesmayaectcustomersatisfaction and the Company's reputation and potentially lead to legal disputes. ◆Supply chain optimization: By introducing digital management and big data analysis, the Company can optimize supply chainprocesses,improveeciency,reducecosts,ensurethesustainabilityandreliabilityofrawmaterials,andenhanceoverallcompetitiveness. ◆Collaborationandmutualbenets:Establishingstrategicpartnershipswithsupplierstopromotesustainabledevelopmentandinnovative solutions can enhance market competitive advantages. ◆Transparency and compliance: Implementing transparent and traceable supply chain management helps the Company to demonstrateits commitment to environmental and social responsibility, bolstering trust among customers and investors and aligning withincreasingly stringent global sustainability requirements. ◆Risk management: Building a resilient supply chain can enhance the Company's ability to respond to external uncertainties, mitigatethe impact of supply disruptions, and ensure the continuity and stability of business operations.
? Partnership
◆The Company should actively participate in industry exchanges and collaborations to promote industry development, standardsformulation, and technological advancement and facilitate coordinated sustainable development among industry partners, collectivelyaddressing industry challenges and enhancing the overall competitiveness of the industry. ◆Risksfrommisalignedcooperationobjectives:Dierententerprisesmayhavevaryinggoalsandinterestsinindustrycollaborations,whichmayleadtoconictsanddisputesduringthecooperationprocess,potentiallyhinderingtheprogressofcollaborativeprojects. ◆Culturalandmanagementdivergencerisks:Dierencesamongcompaniesmayresultincommunicationbarriers,coordinationdiculties,andlowdecision-makingeciency,increasingmanagementcostsandrisksofthecollaboration. ◆Risks of technology and data breaches: Enterprises may need to share certain technical or patent-related information in collaboration.Inadequateinformationsecuritymanagementmayleadtodatabreaches,causingsignicantlossestotheenterprise. ◆Corporate innovation promotion: Engaging in industry exchanges and university-industry-research cooperation helps enterprisesaccelerate the adoption and application of new technologies, enhancing its innovative capabilities. ◆Brand image enhancement: Industry events are crucial platforms for enterprises to showcase their strengths and achievements insustainable development. Hosting or participating in such events helps enterprises spread advanced ideas and technologies, shapingthe image of a sustainable leader.
? Partnership
Responsible supplychain management
Industrycooperation
Impact
Impact
Risk
Risk
Opport-unities
Opport-unities
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Impact ScopeImpact CycleOwnoperationsShort-termmid-termLong-termupstream anddownstreamvalue chaincommunitiescommunitiesIssueTypeSDGs
ImpactMateriality
FinancialMateriality
CorrespondingChapterDescription
◆The Company protects employees' legal rights by adhering to relevant laws and regulations and providing a positive work environmentand career development opportunities, so as to unleash employees' potential and creativity and contribute to a harmonious society.
◆The Company should care for employee health and safety through a comprehensive work safety system to prevent workplace injuriesand occupational diseases, protect labor resources, and ensure the physical and mental well-being of employees.
◆Talentattritionrisks:Failuretooercompetitivecompensationandbenets,goodcareerdevelopmentopportunities,andapositiveworkenvironmentmayleadtotalentloss.ThelossofkeypersonnelmaysignicantlyimpacttheCompany'soperationsanddevelopment. For example, the departure of core technical talent may lead to technology leaks and project stagnation, while theresignationofseniorexecutivescouldaectstrategicdecision-makingandoperationalmanagement.
◆Injuryaccidentswillleadtooperationaldisruptions,resultingindecreasedsales,reimbursementforcompensationtoaectedworkers,and litigation costs if the Company is found liable.
◆Corporate innovation: A diverse and multifaceted talent team can boost the Company's productivity and creativity, contributing tobusiness growth. ◆Eciencyimprovement:Reducingemployeeturnovercancutrecruitmentandtrainingcostsandhelptomaintainworkeciency.Talentreserve: Continuous employee development programs help cultivate internal talent, meeting the Company's future development needsand reducing reliance on external recruitment. ◆Corporate image enhancement: Companies valuing employee development are more likely to attract top talent and establish a strongemployer brand. ◆Employeemotivation:Aneectivetrainingsystemprovidesemployeeswithclearcareerdevelopmentpaths,encouragesinternalpromotions, and motivates employees.
◆Building a strong employer brand will attract more customers and business opportunities, thereby enhancing the Company's marketcompetitivenessandprotability.Improvingemployeeperformanceandproductivitywillreduceemployeeabsenteeismandturnoverrates,thusincreasingworkeciencyandquality.
? Partnership
? Partnership
◆The Company should actively engage in rural revitalization and public welfare to support vulnerable groups, promote communitydevelopment, and enhance social cohesion, facilitating social equity and harmony
◆Policy support and capital guidance: The government highly values the integrated development of rural revitalization and ESG andhasintroducedaseriesofsupportivepolicies,suchasscalsubsidies,taxincentives,andloaninterestsubsidies,whichcanreduceenterprises' operational costs. ◆Industrial upgrading and innovation opportunities: As ESG requirements encourage enterprises to help rural areas develop green,ecological,andsustainablecharacteristicindustries,enterprisescanleveragetheirtechnical,nancial,andmanagementadvantagesto promote the upgrading of rural industries, increase their industrial added value and market competitiveness, and achieve a virtuousinteraction between economic development and environmental protection.
◆Economic pressure and increased costs: Rural areas require substantial upfront investment in infrastructure construction, environmentalgovernance, and ecological protection. Traditional rural industries also may need transformation and upgrading to align with ESGstandards, involving costs related to technological updates, equipment renewal, and personnel training. ◆Social participation and cooperation challenges: Rural revitalization and social contributions involve multiple stakeholders withdierentinterestsandgoals,potentiallyleadingtoslowprojectadvancementorconictsanddisputes.Thecooperationmechanismsbetweenruralareasandexternalenterprises,socialorganizations,andnancialinstitutionsarenotyetperfected.Theylackeectivecommunication,coordination,andcooperationplatforms,whichmayimpacttheowandallocationeciencyofsocialcapitalandresources to rural areas. ◆Environmental and ecological protection pressure: The ecological environment of rural areas is relatively fragile. If the relationshipbetween economic development and ecological protection is not adequately handled during rural revitalization, it may cause damageto the rural ecosystem, such as excessive exploitation of natural resources, pollution of soil and water sources, etc., which not onlyviolatesESGprinciplesbutalsomayaectruralsustainability.
? Partnership
Talentmanagement anddevelopment
OccupationalHealth and Safety
Rural revitalizationand socialcontribution
Impact
Impact
Impact
Risk
Risk
Risk
Opport-unities
Opport-unities
Opport-unities
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Impact ScopeImpact CycleOwnoperationsShort-termmid-termLong-termupstream anddownstreamvalue chaincommunitiescommunities
IssueTypeSDGs
ImpactMateriality
FinancialMateriality
CorrespondingChapterDescription
◆The Company should establish a robust corporate governance structure and a sustainable development/ESG governance structure. ThiswillenhancetheCompany'sscienticandtransparentdecision-making,ensurelawfulandcompliantoperations,andcreatelong-termvalue for society. ◆Internalgovernancerisks:Animperfectcorporategovernancestructuremayleadtolengthy,inecientdecision-makingprocessesordecisionslackingscienticbasisandforesight,whichwillcausetheCompanytomissdevelopmentopportunitiesormakewronginvestmentdecisions,aectingitslong-termdevelopment.IfthemanagementoftheCompanylacksessentialprofessionalknowledge,skills,andexperience,ordoesnotprofoundlyunderstandandsucientlyvalueESGconcepts,theymayfailtoeectivelyleadanddrive the Company's ESG practices, troubling to cope with the complex and changing market environment and increasingly stringentregulatory requirements. ◆External compliance risks: Failure to promptly understand and comply with the latest ESG laws and regulations may expose theCompanytohazardssuchassubstantialnesandlegallawsuits,causingsignicanteconomiclossesandreputationaldamage. ◆Strategic planning opportunities: ESG concepts provide the Company with a more comprehensive and long-term strategic planningperspective, encouraging the integration of environmental, social, and governance factors into decision-making processes. ◆Riskmanagementopportunities:AsoundgovernancestructureandeectiveESGmanagementsystemcanhelptheCompanybetteridentify, assess, and respond to various risks. By preventing and controlling risks, the Company can reduce potential losses and enhanceoperational stability and risk resilience. ◆Innovation development opportunities: Robust governance can create a conducive environment for innovation, encouraging innovativethinkingandpracticeswithintheCompany,drivinginnovationintheeldofsustainabledevelopment,andexploringnewmarketsandbusiness areas.
? Accountability
◆TheCompanyshouldupholdthecorrectvaluesandprinciplestoformulateandstrictlyenforceanti-corruptionpolicies,eectivelypreventing corruption risks and preventing unfair competition and monopolistic behaviors, thereby contributing to a fair, transparent,and favorable market competition and business environment. ◆Legalrisks:Unfaircompetitionorcorruptionmayleadtolegalproceedings,nes,anddisruptionsintheCompany'sregularoperation. ◆Reputation risks: Exposure to corruption or unfair competition may damage corporate reputation, reducing trust from clients andpartners, and hindering business development. ◆Financialrisks:Corruptionmayleadtoresourcewasteandnanciallosses,aectingthenancialhealthoftheCompany. ◆Corporate reputation and brand value enhancement: The Company should establish a positive image and elevate the brand valueand market competitiveness to increase user stickiness, encourage long-term stable relationships, and enhance user loyalty andsatisfaction, promoting sustained business growth. ◆Internalmanagementandoperationaleciencyoptimization:Strengtheninganti-corruptionandbusinessethicsrequirestheCompanyto establish a sound internal management system and governance structure, clarifying the responsibilities of various departments andpersonnel.ThishelpsimprovetheoverallmanagementlevelandoperationaleciencyoftheCompany.Simultaneously,italsoreduceseconomic losses and additional costs caused by corrupt practices, thereby lowering the Company's operational costs.
? Accountability
Robustgovernance
Anti-corruptionand businessethics
Impact
Impact
Risk
Risk
Opport-unities
Opport-unities
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Impact ScopeImpact CycleOwnoperationsShort-termmid-termLong-termupstream anddownstreamvalue chaincommunitiescommunities
IssueTypeSDGs
ImpactMateriality
FinancialMateriality
CorrespondingChapterDescription
◆TheCompanyshouldestablisharobustinformationsecuritymanagementsystemtoeectivelypreventinformationleakagerisksandsafeguardthesecurityandcondentialityofinformationfortheCompany,customers,employees,andotherparties.
◆The Company should establish and improve the regulations on IP management and strengthen the application, protection, andutilizationofintellectualpropertytoeectivelyprotecttheCompany'sinnovationachievementsandcorecompetitiveness,promotetechnological innovation and achievement transformation, and drive long-term industry development.
◆Data leakage risks: Inadequate data security measures may allow sensitive information to leak, resulting in customer losses and legalliabilities. ◆Compliancerisks:Failuretocomplywithdataprotectionregulationsmayresultinpenaltiesfromregulatoryauthorities,aectingtheCompany's normal operations.
◆Legalrisks:AstheregulationsonIPmanagementvarysignicantlyacrossdierentcountriesandregions,theCompanymayinfringeonothers'intellectualpropertyorfailtoeectivelyprotecttheirownrightsincross-borderoperationsandcollaborations,leadingtolegaldisputesandnanciallosses. ◆Data security risks: In the digital era, data security related to intellectual property is prone to losses, which may even disrupt theCompany's regular operation.
◆Corporate reputation and brand value enhancement: Strictly protecting user information security and privacy demonstrates theCompany's social responsibility and ethical business practices. It helps build long-term stable relationships and increases user loyaltyand satisfaction, thereby expanding market share. ◆Internalmanagementandoperationaleciencyoptimization:StrengtheninginformationsecurityandprivacyprotectionrequirestheCompany to establish a sound internal management system and governance structure, which helps improve overall management andoperationaleciency.Meanwhile,italsoreduceseconomiclossesandadditionalcostscausedbydatabreachesandsecurityincidents,lowering the Company's operating costs.
◆Market competitiveness: Protection of intellectual property helps increase product added value and enhances the Company's marketcompetitiveness, and has a positive impact on revenue growth. ◆Revenuesourcesexpansion:Intellectualpropertycanbeusedascorporateassetsfornancing,licensing,ortransfer,generatingadditionalrevenuesourcesfortheCompanyandimprovingitsnancialconditionandoperationalexibility.
? Accountability
? Lifecycle
InformationSecurity andPrivacy Protection
IntellectualProperty Protection
Impact
Impact
Risk
Risk
Opport-unities
Opport-unities
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AppendixSunwoda Electronic Co., Ltd.Message from the ChairmanAbout SunwodaAnnual TopicSustainability ManagementEcologyAccountabilityPartnership2024 Sustainability ReportLifecycle
Independent Verication Statement
Independent Verification Statement
| T?V S?D |
Certification and Testing
| (China) Co., Ltd. | |
| No.151 Heng Tong Road, | |
| Shanghai 200070 |
| Page 1 of 4 | |||
| Tel: +86 21-61410123 | |||
| Fax: +86 21-61408600 | |||
| Web: www.tuvsud.com | |||
ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 1 of 4
Verification Statement
：
| EIV2 076537 0215 Rev. 00 |
To the management and stakeholders of Sunwoda Electronic Co.,Ltd.T?V S?D Certification and Testing (China) Co., Ltd. (hereinafter referred to as “T?V S?D”) has been engaged by SunwodaElectronic Co.,Ltd. (hereinafter referred to as “Sunwoda” or “the Company”) to perform an independent third-partyverification on 2024 Sustainability Report ofSunwoda Electronic Co.,Ltd. (hereinafter referred to as “the Report"). During
this verification, T?V S?D's verification team strictly abided by the contract signed with Sunwoda and providedverification regarding the Report in accordance with the provisions agreed by both parties and within the authorizedscope stipulated in the contract.This Independent Verification Statement is based on the data and information collected by Sunwoda and provided toT?V S?D. The scope of verification is limited to the given information. Sunwoda shall be held accountable forauthenticity and completeness of the provided data and information (contains assumptions, projections, and/or historicalfacts).Scope of Verification
Time frame of this verification:
? The Report contains the data disclosed by Sunwoda during the reporting period from January 1
st, 2024 toDecember 31
st
, 2024, including governance, environmental and social information and data, methods formanagement of material issues, actions/measures and the Company's sustainability performance during thereporting period.Physical boundary of this verification:
? The on-site verification sampling took place at below listed location:
No.2, Yihe Rd, Shilong Community, Shiyan St, Boan District, Shenzhen, Guangdong, ChinaScope of data and information for the verification:
? The scope of verification is limited to the data and information of Sunwoda and all companies under its
operational control covered by the Report.The following information and data are beyond the scope of this verification:
? Any information and contents beyond the reporting period of this Report; and? The data and information of Sunwoda’s suppliers, partners and other third parties; and? The financial data and information disclosed in this Report that have been audited by an independent third party
are not verified again herein.
Limitations? The verification process is conducted in the above scope and places. Sampling and verification are adopted for
the data and information in the Report by T?V S?D, and only the stakeholders within the Company are
interviewed; and? The Company's standpoint, opinions, forward-looking statements and predictive information as well as the
historical data and information before January 1
st, 2024 are beyond the scope of this verification.? T?V S?D's verification conclusions are based on the analysis of the data and information collected by T?V S?D
and may not identify all problems and conditions, nor constitute a guarantee of the credibility or status of the
subject of verification.Basis for the Verification
Independent Verification Statement
| T?V S?D |
Certification and Testing
| (China) Co., Ltd. | |
| No.151 Heng Tong Road, | |
| Shanghai 200070 |
| Page 2 of 4 | |||
| Tel: +86 21-61410123 | |||
| Fax: +86 21-61408600 | |||
| Web: www.tuvsud.com | |||
ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 2 of 4
Verification Statement
：
| EIV2 076537 0215 Rev. 00 |
This verification process was conducted by T?V S?D's expert team with extensive experience in the governance,environmental, social and other relevant areas and drew the conclusions thereof. The verification conforms to thefollowing standards:
? AA1000 Assurance Standard v3 (AA1000AS v3), Type 1 assurance engagement with a moderate level of
assurance.? Sustainability report verification programme operation rule (CCB_EIV_GR_002E Rev02)
In order to perform adequate verification in accordance with the contract and provide reasonable verification for theconclusions, the verification team conducted the following activities:
? Preliminary investigation of the relevant information before the verification;? Confirmation of the presence of the topics with high level of materiality and performance in the Report;? On-site review of all supporting documents, data and other information provided by Sunwoda; tracing and
verification of key performance information;? Special interview with the representative of Sunwoda’s management; interviews with the employees related to
collection, compilation and reporting of the disclosed information; and? Other procedures deemed necessary by the verification team.
Verification ConclusionsAccording to the verification, we believe that the data and information presented in Sunwoda's report are objective,factual and reliable, without systematic problems, and can be used by stakeholders.Meanwhile, the content of thereport complies with the relevant requirements of Self-Regulatory Guidelines No. 17 for Companies Listed on ShenzhenStock Exchange—Sustainability Report (For Trial Implementation)” (hereinafter referred to as the Guidelines) .The verification team has drawn the following conclusions on this Report:
Inclusivity
Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For TrialImplementation) and Self-Regulatory Guidance No. 3 for Companies Listed on ShenzhenStock Exchange—Preparation of Sustainability Report, Sunwoda has thoroughly identified bothinternal and external stakeholders of the organization, including government and regulatorybodies, shareholders and investors, customers, employees, suppliers, partners, as well as thepublic and local communities. The Company has established a systematic stakeholderengagement mechanism to regularly gather and respond to stakeholders’ genuine concerns,thereby continuously enhancing its sustainable development governance and the quality ofinformation disclosure.
Materiality
| In accordance with the relevant requirements of Self-Regulatory Guidelines No. 17 for |
| In accordance with Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen |
Stock Exchange—Sustainability Report (For Trial Implementation) and Self-RegulatoryGuidance No. 3 for Companies Listed on Shenzhen Stock Exchange—Preparation ofSustainability Report, Sunwoda has established a clear assessment mechanism fordetermining the financial materiality and impact materiality of sustainability topics. For topicsdeemed financially material, The Company provides systematic disclosures based on the four
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Independent Verification Statement
| T?V S?D |
Certification and Testing
| (China) Co., Ltd. | |
| No.151 Heng Tong Road, | |
| Shanghai 200070 |
| Page 4 of 4 | |||
| Tel: +86 21-61410123 | |||
| Fax: +86 21-61408600 | |||
| Web: www.tuvsud.com | |||
ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 4 of 4
Verification Statement
：
| EIV2 076537 0215 Rev. 00 |
the verification statement.
Signature:
On Behalf of T?V S?D Certification and Testing (China) Co., Ltd.
Zhu WenjunT?V S?D Sustainability Authorized Signatory OfficerApril 10
th
, 2025Shanghai, ChinaNote: In case of any inconsistency or discrepancy, the simplified Chinese version "Independent Verification Statement CN" of thisverification statement shall prevail, while the English translation is used for reference only.
Independent Verification Statement
| T?V S?D |
Certification and Testing
| (China) Co., Ltd. | |
| No.151 Heng Tong Road, | |
| Shanghai 200070 |
| Page 3 of 4 | |||
| Tel: +86 21-61410123 | |||
| Fax: +86 21-61408600 | |||
| Web: www.tuvsud.com | |||
ID: CCB_EIV_F_10.03E Version: 2 Effective Date: 08 Feb 2025 Page 3 of 4
Verification Statement
：
| EIV2 076537 0215 Rev. 00 |
pillars of governance, strategy, risk management, and metrics & targets, ensuring that the
report content is highly material and decision-usefulness.Responsiveness
| pillars of governance, strategy, risk management, and metrics & targets, ensuring that the |
| Sunwoda has comprehensively disclosed its management strategies and performance |
outcomes on material topics of concern to stakeholders. The Company has established a
systematic communication mechanism to effectively address the concerns and expectations
of various stakeholders.
Impact
body under the Board’s Strategy and Sustainable Development Committee to oversee The
Company’s work across environmental, social responsibility, and corporate governance (ESG)
areas. The committee is responsible for formulating ESG strategies, policies, and annual work
plans, reviewing and promoting the preparation of the sustainability report, and regularly
evaluating the implementation of related initiatives to ensure that ESG practices are deeply
integrated with The Company’s business operations.
To support daily management and cross-functional coordination, Sunwoda has appointed a
Chief Sustainable Development Officer and set up an ESG Management Department. The
Company also incorporates sustainable development goals into the performance evaluation
of key management personnel, reinforcing the execution loop.
This governance mechanism ensures that The Company can identify and respond to issues
with significant impact on governance, the environment, and society, aligning with the “Impact”
principle in the AA1000 AccountAbility Principles (AA1000 AP), and continuously advancing
high-quality sustainable development.
Recommendations on Continuous Improvement? The verification team has communicated improvement recommendations to Sunwoda's management during the
on-site engagement process.Statement on Independence and Verification Capability
T?V S?D is a trusted partner of choice for safety, security and sustainability solutions. It specializes in testing,certification, auditing and advisory services. Since 1866, the company has remained committed to its purpose of enablingprogress by protecting people, the environment and assets from technology-related risks. Today, T?V S?D is present inover 1,000 locations worldwide with its headquarters in Munich, Germany. Through expert teams represented by morethan 26,000 employees, it adds value to customers and partners by enabling market access and managing risks. Byanticipating technological developments and facilitating change, T?V S?D inspires trust in a physical and digital world tocreate a safer and more sustainable future.
T?V S?D Certification and Testing (China) Co., Ltd. is one of T?V S?D's global branches and has an expert team whosemembers have professional background and rich industrial experiences.T?V S?D and Sunwoda are two entities independent of each other and both T?V S?D and Sunwoda and their branchesor stakeholders have no conflict of interest. No member of the verification team has business relationship with theCompany. The verification is completely neutral. All the data and information in the Report are provided by Sunwoda.T?V S?D has not been involved in preparation and drafting of the Report, except for the verification itself and issuance of
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Reader Feedback Form
Dear Reader,Hello!Thank you for taking the time to read the "Sunwoda 2024 Sustainability Report" amidst your busy schedule. To better meet your needs,provide you with more valuable information, and enable Sunwoda to continuously improve its sustainability performance and enhanceits ability to fulll social responsibilities, we sincerely hope that you can oer us your valuable opinions on our report. Your perspectivesand insights are of utmost importance to us.
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2.Please evaluate the extent to which this report reects Sunwoda's signicant impact on the economy, environment, and society:
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3.Please evaluate how this report responds to and discloses the concerns of stakeholders:
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4.Please evaluate the completeness of the information, indicators, and data disclosed in this report:
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5.What suggestions do you have for Sunwoda's sustainability work?
__________________________________________________________________________________________________________________________We sincerely thank you for your support and assistance to Sunwoda.
: 0755-29516888sunwoda@sunwoda.comwww.sunwoda.com
The right of ?nal interpretation belongs to Sunwoda Electronic Co., Ltd
:
:
No. 2 Yihe Road, Shilong Community, Shiyan Sub-district, Bao'an District,Shenzhen, Guangdong Province, ChinaSunwoda Electronic Co., Ltd.