About This ReportThis report provides a detailed disclosure of China Resources Microelectronics Limited's practices and performance in the areas ofeconomic, environmental, social, and governance (ESG) responsibilities in 2024. It aims to facilitate effective communication withstakeholders and systematically address their expectations and requirements.
Preparation BasisSustainable Development Goals (SDGs) of the United Nations
Sustainability Reporting Standards (GRI Standards) of the Global Sustainability Standards Board
International Financial Reporting Sustainability Disclosure Standards No. 1 - General Requirements for Disclosure of SustainabilityandInternational Financial Reporting Sustainability Disclosure Standards No. 2 - Climate-related Disclosuresissued by International SustainabilityStandards BoardSelf-Regulatory Guidelines for Listed Companies No. 14 - Sustainability ReportandS&T Innovation Board Self-Regulatory Guidelines No. 13- Sustainability Reporting issued by Shanghai Stock ExchangeGuide to Corporate Sustainability Reporting in China issued by Chinese Academy of Social Sciences
Data SourceAll financial data in this report is derived from CR Micro's official documents and statistical reports. Financial data presented in this reportare denominated in Renminbi (RMB) unless otherwise specified.
Preparation Process
This report was prepared following a structured method comprising industry benchmarking, questionnaire administration, dataaggregation, cross-verification, manuscript development, executive committee deliberation, and board-level ratification, in order toensure its completeness, authenticity, and impartial presentation.
Access to this ReportThis report is published in Chinese language in both print and digital formats. The digitalversion is available for download on CR Micro's official website (https://www.crmicro.com/responsibilityReport/index.html) or obtainable via email request to the address (crmic_hq_zj_gw@crmicro.com). To minimize environmental impact from printing, we encouragereaders to preferentially access the digital version.
Reliability AssuranceThe Company pledges to ensure that this report doesn't contain any false records, misleading statements, or material omissions, and isresponsible for the authenticity, accuracy, and completeness of this report.
Reporting Period
This report marks CR Micro's fourth publicly released Sustainability Report, following eight previously published Corporate SocialResponsibility (CSR) Reports.
Reporting PeriodThis report covers the period from January 1, 2024 to December 31, 2024. To improve the comparability andperspectiveness, some sections of this report may extend appropriately to previous and subsequent years.
Scope of OrganizationThe scope of organization of this report covers China Resources Microelectronics Limited and its major subsidiaries. For the convenienceof expression and reading, the terms "CR Micro", "CRM", "the Company", and "we/us" are used throughout this report to denote ChinaResources Microelectronics Limited. The terms "China Resources Group" and "the Group" refer to China Resources (Holdings) CompanyLimited. The other primary units involved will adopt standardized abbreviations as listed in the table below.
CSMC Technologies Fab2 Co., Ltd.China Resources Microelectronics (Chongqing) Limited
Wuxi CR Micro-Assemb Tech. Ltd.Wuxi China Resources Huajing Microelectronics Co., Ltd.
Wuxi DIS Microelectronics LimitedResources West Microelectronics (Chongqing) Limited
CRM ICBG (Wuxi) Co., Ltd.SIPLP Microelectronics (Chongqing) LimitedGreat Team Backend Foundry (Dongguan), Ltd.Runpeng Semiconductor (Shenzhen) Co., Ltd.China Resources Semicon Microelectronics (Shenzhen) Co., Ltd.
Runxin Microelectronics (Dalian) Co., Ltd.CR Runan Technologies (Chongqing) Co., Ltd.
CR ShanghuaChongqing CR MicroCR AnshengCR HuajingWuxi DISRunxi MicroCR Micro ICXipan MicroDongguan JiequnRunpeng SemiCR SemiconRunxin MicroCR Run'an
Full Corporate NameStandardized Abbreviation
Table of Contents
Leadership MessageAbout CR Micro
Sustainability Management19Six Responsibility Sectors25Responsibility Topic 1
Staying True to Our Mission:
Charting a New Chapter for the Semiconductor Industry
Responsibility Topic 2Contributing to Semiconductor ESG Guidelines:
Pioneering Sustainability Industry Development
Future OutlookAnnex
Strengthen PartyBuilding LeadershipStandardize CorporateGovernanceEnhance Complianceand Risk Control
Economic ResponsibilityAdvance Toward World-ClassExcellence
Employment andBenefitsTraining andDevelopmentCare and Health
Employee ResponsibilityMake a Remarkable Life
Focus on Innovation-Driven DevelopmentImprove ProductQualitySupply High-QualityService
Customer ResponsibilityLead Excellence inQuality
Promote IndustryWin-WinDevelopmentMaintain Fair TradesRefine Supply ChainSystems
Partner ResponsibilityCollaborate for Good Business
Improve EnvironmentalManagementTake Actions on GreenProductionResponse to ClimateChange
Environmental ResponsibilityCo-Create an Eco-FriendlyEcosystem
Tighten SafetyProductionDevote to PublicWelfare and CharityBuild a HarmoniousCommunity Together
Public ResponsibilityEnhance Social Welfare
Topic Index of Six Responsibility Sectors
Dear friends,2024 marks a pivotal year for CR Micro in implementing its "14th Five-Year Plan"strategy - a critical period for consolidating resilient development foundationsand achieving qualitative growth in operations. Amid complex externalchallenges and volatile market conditions over the past year, the Company hasresponded proactively with long-term planning. We have enhanced the efficacyof sci-tech innovation investments, strengthened strategic implementation andbusiness layout, deeply integrated national strategy servicing with high-qualitycorporate development, continuously improved corporate governance, activelyshouldered environmental protection and green development responsibilities,reinforced safety management and talent cultivation, and deepened strategicpartnerships and industrial dialogues - all driving comprehensive high-qualityand sustainability. Key initiatives include:
Leadership Message
Leadership Message
In advancing technological self-reliance and product excellence, CR Micro focuses on breakthroughs in core technologies andaccelerates market application expansion to build a "moat" of independent innovation.Driven by high-potential applications such asautomotive electronics and industrial control, we advance process innovation and product generation upgrades, achieving R&D efficiencyimprovements and effective commercialization of innovations. Through key project initiatives, industry-academia-research collaborations,and systematic development of four core technological capabilities, we have achieved multiple breakthroughs in critical core technologies.Our complementary 12-inch advanced and 8-inch specialized production lines enhance product competitiveness, with increasing customerprojects in automotive electronics, industrial control, and AI servers. We successfully completed the first phase of our equity incentive plan,motivating R&D talent to jointly create long-term corporate value. We maintained #1 market share among domestic MOSFET manufacturers,rose to #2 in China's MEMS rankings, and achieved record revenues for IPM/IGBT modules. In 2024, the Company was honored with the"Second Prize of National S&T Progress Award" and "China Excellent Patent Award". Our products were selected as "Central Enterprises'Scientific and Technological Innovation Achievements", and we obtained the CNAS Laboratory Accreditation Certificate as well as thehighest-level ISO 26262 Functional Safety Management System certification. These accolades fully demonstrate our strong technologicalinnovation capabilities and fruitful achievements in independent innovation.
In environmental protection and green development, CR Micro integrates eco-friendly concepts into corporate development strategies,accelerating green industrial transformation and building an "ecological bridge" that enhances both efficiency and environmentalprotection. We continuously improve our environmental management system, actively respond to carbon peak and neutrality goals,enhance energy and carbon emission management systems, strengthen greenhouse gas emission control, and proactively addressclimate change. Meanwhile, we implement water resource management and water stress testing, develop circular economy, phase outhigh-energy-consuming obsolete equipment, and innovate energy-saving technologies to accelerate green transformation. During thereporting period, CR Micro Chongqing was awarded the "National Green Factory" title and Huahong Grace received the "Municipal GreenFactory" recognition.
In the employee care and talent cultivation, CR Micro adheres to the "people-oriented" philosophy, focusing on employee competencytraining and talent team building. We comprehensively support employee growth and development, creating a "growth pod" that ensurescomfortable living and continuous progress for our staff. By implementing the requirements of "youthfulness, professionalism, market-orientation, and internationalization", promoting diverse and inclusive culture, caring for employees' lives, strengthening the talent-driven enterprise strategy, and deepening talent recruitment, cultivation and retention mechanisms, we have achieved a furtherimprovement in both the quantity and quality of talents. Our continuously expanding talent team provides strong momentum formicroelectronics development, stimulates innovation vitality, and achieves optimal integration of reform and innovation. At the "NewQuality Workplace · Reconstructing Growth "2024 China Annual Best Employer Awards Ceremony, we were awarded the "Most New-Quality Spirit Employer" prize.
In serving major strategic deployments and enabling industrial chain synergy: CR Micro has deepened its regional layout across the"Yangtze River Delta + Chengdu-Chongqing Twin-Cities + Guangdong-Hong Kong-Macao Greater Bay Area", driving high-quality, efficientconstruction of major projects to generate new growth momentum for high-quality development. Leveraging the Yangtze River Delta'sindustrial cluster advantages, we established a technologically leading mask manufacturing and third-generation semiconductor R&Dbase, with our high-end mask production line commencing operations. In the Chengdu-Chongqing region, we focus on high-end industrialcontrol and automotive electronics markets, building a full-chain power device ecosystem. Our Chongqing 12-inch wafer fab and advancedpackaging/testing base are ramping up production. Using the Guangdong-Hong Kong-Macao Greater Bay's geographical strengths, weestablished a product/application innovation center, with Shenzhen's 12-inch specialized power IC production line achieving operationalreadiness. Additionally, we actively collaborate with upstream/downstream partners to construct an industrial ecosystem, fosteringsynergistic development across the value chain.In ensuring safety production and contributing to society, CR Micro prioritizes production safety while remaining committed to oursocial roots. We diligently fulfill social responsibilities as the "gatekeeper"of employee safety and public welfare. We continuouslyimprove safety management systems and implement safety accountability to provide employees with secure and healthy workingenvironments. Upholding the vision of a global community of shared future, we actively engage in public welfare initiatives, safeguardingpeople's livelihoods and fulfilling our public responsibilities through rural revitalization support, job creation, charitable donations,and community development programs. In 2024, our "WarmCore"series ESG brand continued its signature campaigns including"WarmCore Education Aid"and "WarmCore Sci-Tech Education", consistently delivering positive social impact.
During the reporting period, CR Micro deepened ESG management and practices, mapping out a "new blueprint" for sustainability. Weestablished an efficient and collaborative ESG management framework and have published CSR/sustainability reports for 12 consecutiveyears (including this edition), benchmarking against advanced domestic and international standards to continuously improve informationdisclosure quality and transparency. For two consecutive years, we received an "A" rating for information disclosure from the ShanghaiStock Exchange. In 2024, the Company was included in the "Central Enterprises ESG Pioneer 100 Index" and won the "Yinghua A-ShareValue Award" , "ESG Public Welfare Pioneer" and "Golden Dawn" ESG Leadership Award, empowering our high-quality sustainability.Spring winds bring messages, warm sunshine accompanies; the future is promising and full of hope. In recent years, affected by divergingdownstream market demands and weak consumer electronics demand, the global semiconductor industry has entered an adjustmentcycle. CR Micro will make every effort to focus on stable growth, quality improvement, cost reduction and efficiency enhancement.Centering on the goals of further comprehensive reforms, we will steadfastly implement the innovation-driven development strategy,promote deep integration of technological and industrial innovation, and emphasize key tasks such as investment management andstate-owned enterprise reform. We will strive tirelessly to become the world's leading provider of power semiconductor and smart sensorproducts and solutions. Meanwhile, we will continue to deepen ESG theoretical exploration and practical integration, building valuerealization platforms for shareholders and employees with green concepts, firm steps and open attitudes, while contributing CR Micro's"core"strength to public welfare.
He Xiaolong, the Chairman of ChinaResources Microelectronics Limited
China Resources Microelectronics Limited2024 Sustainability Report
About CR MicroCompany Profile
China Resources Microelectronics Limited is a high-tech enterprise under China Resources Group responsible for microelectronicsbusiness investment, development and operation management. Having integrated Chinese semiconductor companies such as HuakeElectronics, China Huajing, and CSMC Technology, the Company has become a comprehensive semiconductor enterprise with significantinfluence in China after years of development and series of integrations. Since 2004, it has been repeatedly rated as one of China's Top100 Electronic Information Enterprises by MIIT.The Company was listed on the STAR Market on February 27, 2020 (stock abbreviation: "CRM", stock code: "688396"), becoming the firstred chip company in mainland China. As an IDM semiconductor company with full industrial chain capabilities including chip design, maskmanufacturing, wafer fabrication, as well as packaging & testing, CR Micro adheres to its "Two Rivers Three Regions" layout, optimizingresource allocation by combining regional, market and application advantages, with business operations spanning Wuxi, Shanghai,Chongqing, Hong Kong, Dongguan and Shenzhen. Currently, the Company's main businesses can be divided into two business sectors:
Products & Solutions, and Manufacturing & Services. With self-developed product designs and controllable manufacturing processes,the Company has established strong product technology and manufacturing process capabilities in both discrete devices and integratedcircuits, forming advanced specialty technologies and serialized product lines.In the future, the Company will continue to drive corporate development by leveraging its core strengths, enhancing key technologiesand integrating internal and external resources, further transforming into a comprehensive integrated product company and striving tobecome the world's leading provider of power semiconductor and smart sensor products and solutions.
Business Layout
CR Micro
MEMS sensors, smoke sensors, photoelectric sensors2 8-inch lines and 3 6-inch lines; 2 12-inch lines
Covering 6-inch, 8-inch, and 12-inch mask productionrequirementsIC packaging, device packaging, module integration, advancedfan-out packaging, wafer backside metallization
Power devices/modules
MOSFET、IGBT、SBD、FRD、SIC、GaNPower ICs
Power management ICs, BMS, motor driver
ICs, signal chain ICsProducts &Solutions
PowerSemiconductor
HMI MCUs, security MCUs, general-purpose MCUs
SmartControlSmartSensorWaferFabrication
Packaging &TestingMaskManufacturing
Manufacturing& Services
About CR Micro
China Resources Microelectronics Limited2024 Sustainability Report
本图仅为示意图，不代表真实地图
Operating Area
CR Micro National Business Network
Organizational Structure
CR Micro belongs to the Technology and Emerging Industries sector of China Resources Group. To address development challenges,align organizational structure with strategic goals, meet capital market expectations, and deepen SOE reforms, the Company benchmarksagainst international semiconductor leaders by integrating product and manufacturing resources, optimizing headquarters structure, andadopting platform-based operations to promote specialized development of product and manufacturing businesses.
Shareholders' Meeting
Board of Directors
President
Strategy and Sustainability CommitteeAudit and Compliance Committee
Nomination CommitteeRemuneration and Assessment Committee
Power DeviceBusiness Group
Integrated CircuitBusiness Group
Foundry Business Group
Packaging/Testing
Business Group
Technology Research InstituteOperation Center
Domestic holding platformIC design servicesIC product design companiesWafer fabrication and packaging/testingmanufacturing bases(Including third-generationsemiconductors)Operation centerInvestment platformAdvanced mask
Power device R&D and designcenterPower device epitaxy center8-inch and 12-inch power devicewafer production linesPower semiconductor packagingand testing base
Product and application industrializationtechnology innovation centerMarket sales and application service centerSensor R&D CenterSouthern headquarters and global innovationcenter12-inch specialty power IC manufacturingand R&D base
Yangtze River Delta
Greater Bay AreaChengdu-Chongqing Twin Cities
Establishing a nationally leading maskmanufacturing base in both technologyand scale in Wuxi, along with a third-generation semiconductor R&D andmanufacturing base; leveragingShanghai's talent advantages toenhance existing businesses
Yangtze River Delta
Expanding power device business,focusing on high-end industrialcontrol and automotive electronicsmarkets, building an automotive-gradepower semiconductor industrial baseand automotive chip ecosystem inChongqing
Yangtze River Delta
Establishing technology and applicationindustrialization innovation centers,optimizing sensor, module and systemsolution businesses, and creatingadvanced wafer manufacturing andR&D bases
Greater Bay Area
Strengthening
Expanding
Optimizing
Manufacturing CenterMarketing DepartmentStrategic Development DepartmentHuman Resources DepartmentOffice of the Board of DirectorsInvestment Management DepartmentFinance DepartmentLegal and Compliance DepartmentAudit DepartmentDiscipline Inspection DepartmentInspection DepartmentParty-Mass Affairs DepartmentIntelligence and DigitalizationDepartmentEHS (Environment, Health andSafety) Department
About CR Micro
China Resources Microelectronics Limited2024 Sustainability Report
Corporate Strategy
Corporate Culture
MissionCR Micro "core"makes life better
Vision: Become the global leading product and solution supplier of power semiconductor and intelligent sensorLeverage IDM advantages to strengthen
product businessFocus on forward-looking layout to
master core technologiesBreak through high-end applications to lead
market segments
Build efficientorganizationsEnsure businessdevelopment
Two-Rivers regional layoutThree-Region focused developmentOptimize resource allocationSupport leapfrog growth
Strategicinitiatives
Strategicsafeguards
CR spirit
The dedication spirit of devoting
oneself to the countryThe innovation spirit of being a
pioneerThe perseverance spirit ofsteadfast advancementThe striving spirit of continuous
self-improvement
Keep in mind the original mission, stand up atcritical moments, and step forward in times of crisisCourage to take
responsibility
Break path dependence and conventional thinking,use innovation as the engine, inspire each other, anddrive transformation with entrepreneurial spiritDevelop vision and pattern for the future, nocompromise, no discount, deliver what is promisedBoost morale, enhance urgency, step out of comfortzone, meet challenges, and define oneself throughendeavor
Honors in 2024
Best Capital Market Communication AwardMost Innovative IR TeamTop 10 China IC Design CompaniesSci-Tech Innovation Achievement AwardHigh-Quality Development Award2024 Most Innovative Product AwardNational S&T Progress AwardYinghua A-Share Value AwardBest Board SecretaryTop 10 Power Device EnterprisesYangtze River Delta Pioneer 50ESG Excellence Case - Social Governance PracticeTop 10 China Semiconductor MEMS Companies
ESG Public Welfare PioneerESG "Golden Dawn" Leadership Award"Information Disclosure Excellence Unit" Award4A-level Board SecretaryBest Board Secretary of STAR Market Listed Companies2024 Best Practice Case of Listed Companies' Board OfficeMost Valuable Investment Award
Jinmen FinanceASPENCOREChina Resources GroupChina Resources GroupNew Business StateSASACChina Fund NewsSTAR Market DailyChina Media GroupChina TimesShanghai Stock ExchangeSASACChinese Academy of Social SciencesResponsibility Cloud Research InstituteSecurities Market WeeklyWuxi Listed Companies AssociationChina Association for Public CompaniesChina Association for Public CompaniesNational Business DailyChina Association for Public CompaniesCailian Press
A-rating for Information Disclosure of STAR Market ListedCompanies (2023-2024)
Cross-border Roadshow Platform forListed Companies
China Semiconductor IndustryAssociation (CSIA)
China Semiconductor IndustryAssociation
Listed in "Central Enterprises Listed Companies ESG Pioneer100 Index (2024)"
2024 Outstanding Sustainability Practice Case of ListedCompanies
4th Place in Semiconductor Industry Social ResponsibilityDevelopment Index
JanuaryFebruary
March
Award NameAwarding Authority
Implement performance-based incentivesComply with market rules
Emphasize innovationand entrepreneurship
Reshape corporate
culture
Party buildingSupervision and
regulation
Innovation andentrepreneurship
EfficientexecutionPassionateendeavor
MayJuneJuly
AugustSeptemberOctoberNovember
December
About CR MicroChina Resources Microelectronics Limited2024 Sustainability Report
2024 Milestones - CR Micro in 2024
The inauguration ceremony and firstequipment move-in for Wuxi DISHigh-End Mask Factory were officiallyheld in Xinwu District, marking a newphase in the project's construction andsetting Wuxi DIS on a transformativedevelopment path.
CR Micro, as a primary contributor, wonthe Second Prize of the 2023 NationalS&T Progress Award for the project"Key Technologies and Applications ofPower MOS and High-Voltage IntegratedChips". Supported by national keyprojects, the project established anew charge-balance theory for powerMOS devices, overcame high-voltageintegration bottlenecks, and createdthree internationally advanced powersemiconductor mass-productionplatforms, serving over 200 globalenterprises and elevating China'scompetitiveness in high-end powerchips.
At the 18th China Semiconductor IndustryAssociation (CSIA) Discrete Device AnnualConference & 2024 SemiconductorDevice Innovation and IndustrialDevelopment Forum in Chengdu, CRMicro was honored as a "2023 Top 10Power Device Enterprise in China"for itssustained innovation and excellence inpower semiconductors.
The 5th China MEMS ManufacturingConference, hosted by the ChinaSemiconductor Industry Association,was held in Suzhou. CR Micro,leveraging its domestically largestMEMS sensor mass production linewith high CMOS production linecompatibility, coupled with China'sleading MEMS surface and bulksilicon processing technologies,was honored by being rankedsecond in the "China MEMS Top 10Enterprises"list. This recognitionfully demonstrates the Company'soutstanding technologicalcapabilities and leadership positionin the MEMS field.
Chongqing CR Micro Laboratory passedthe evaluation by the China NationalAccreditation Service for ConformityAssessment (CNAS), earning CNASlaboratory accreditation for its technicalcapabilities, management systemoperations, and facility conditions,demonstrating nationally and internationallyrecognized testing competence.
The State-owned Assets Supervisionand Administration Commission (SASAC)released the Central Enterprises' Sci-TechInnovation Achievements Product Catalog(2023 Edition), featuring CR Micro's "SiCJBS Devices and Series Products"and "SiCMOSFET Devices and Series Products"asselected innovations in the electroniccomponents category.The Power Device Business Grouphosted its 2023 Agent Conferencein Chongqing, attended byrepresentatives from over 30 agenciesnationwide. Under the theme "Strivingwith Determination · Toward a ‘Core'Future Together", the conferencehonored outstanding agents andexplored new opportunities forcollaboration and growth.
The 2024 TrendBank Third-Generation Semiconductor AnnualSummit - "SiC & GaN Industry Forumand Aurora Awards Ceremony"washeld in Shenzhen. Dubbed theindustry's "golden benchmark", theAurora Awards recognized CR Microas both a "Top 10 SiC IDM Enterprisein China"and "Top 10 GaN DeviceEnterprise (Runxin Micro)". Theseaccolades not only affirm CR Micro'sexceptional achievements in third-generation semiconductors but alsohighlight its pioneering role in drivingtechnological innovation and buildinga trusted industry ecosystem.
Wuxi DIS High-End Mask Projectcompleted critical equipmentinstallation and debugging, achievingfull production line integration anddelivering its first 90 nm high-endmask product. This milestone signifiesa technological leap forward, solidifyingWuxi DIS's progress toward becomingChina's leading open mask provider inboth technology and capacity.The Power Device Business Groupachieved a research breakthrough withits paperSuper Junction MOSFET withan N-dot Region in the P-pillar for SoftReverse Recoveryaccepted by ISPSD2024 - the world's most influential andlargest academic conference in powerdevices, where industry and academiacompete to present groundbreakingwork.
January
March
May
July
October
December
NovemberAugust
June
CR Micro spearheaded the launch
and workshop forCASS-ESG 6.0:
Semiconductor Industry Guidelines
in Shanghai. CR Micro played a
pivotal role in formulating theCASS-
ESG 6.0 Semiconductor Industry
Guidelines,collaborating with
upstream and downstream partners
to delve into technical discussions
and construct a comprehensive
content framework. This effort
injected strong momentum into
advancing the sustainability of
China's semiconductor industry and
refining ESG disclosure standards.
April
CR Micro held a "Dual-Core, OneForce"thematic seminar, engaging a broadrange of participants across functionsand levels. The discussions centered onhow to enhance core capabilities, boostcore competitiveness, and develop newquality productive forces in the inauguralyear of full-scale deployment for advancedproductivity.
CR Micro, in collaboration with the JiangsuProvincial Department of Education, theJiangsu Provincial Department of S&T, andthe Collaborative Innovation Center forSolid-State Lighting and Energy-EfficientElectronics of Nanjing University, jointlyorganized the "Jiangsu Education-IndustryDialogue and Collaboration Event -Conference on Collaborative Innovation andIntegrated Industrial Chain Developmentof High-Efficiency Semiconductor Devicesand Materials". This event aims toestablish a university-industry integrationplatform to jointly promote technologicalinnovation, breakthroughs, and coordinatedindustrial chain development in the fieldof high-efficiency semiconductor devicesand materials, accelerating Jiangsu'stransformation into a globally influentialindustrial technology innovation hub.
CR Micro launched the inauguralsession of its "SemiconductorExperts Public WelfareLecture"series - "A Vast Worldin Tiny Chips". In collaborationwith the Board Office and HRDepartment, the "WarmCore Sci-Tech Education"initiative assembleda diverse lecturer team spanningboard operations, HR, qualitymanagement, production, productR&D, and process development.With expertise and passion, theyignited children's dreams of sciencein mountainous regions.
About CR Micro
China Resources Microelectronics Limited2024 Sustainability Report
Responsibility Topic 1Staying True to Our MissionCharting a New Chapter for the Semiconductor Industry
Responsibility Topic 1Staying True to Our MissionCharting a New Chapter for theSemiconductor Industry
With the rapid development of information technology, the semiconductorindustry has demonstrated robust growth momentum globally. Currently, theCompany adopts an integrated operational model encompassing chip design,mask manufacturing, wafer fabrication, and packaging/testing. Backed byits "Two Rivers, Three Regions"development blueprint, CR Micro vigorouslypromotes technological innovation and strategic emerging industry layout,heralding its ambition to become a first-class semiconductor enterprise.
"Core"Engine:
Deep Integration Across the Full Industrial Chain Drives Unified,High-Efficiency Operations
"Core"Structure:
Precision "Two Rivers, Three Regions"Layout to Build IndustrialHigh GroundCR Micro traces its origins to 1983, when the former Fourth and Seventh Ministries of Machinery Industry, MOFERT, and China Resourcesjointly established Hong Kong Huake Electronics. Through decades of integrating Chinese semiconductor corporates such as HuakeElectronics, China Huajing, CSMC Technology, and AVIC Microelectronics, it evolved into an Integrated Device Manufacturer (IDM) withend-to-end operating capabilities encompassing chip design, mask manufacturing, wafer fabrication, and packaging/testing.
Adhering to industry and market dynamics, CR Micro has implemented a targeted comprehensive layout, forming its"Two Rivers, Three Regions"development strategy - "Yangtze River Delta + Chengdu-Chongqing Twin Cities + GreaterBay Area". This region-specific approach avoids redundant capacity expansion while consolidating robust support forproduction and R&D.Leveraging its full-chain IDM strengths, CR Micro pursues both "organic and inorganic"growth. Excelling in Products & Solutions andManufacturing & Services, it capitalizes on its IDM model, specialty process platforms, and high customer stickiness. The 6-inch and8-inch production lines have maintained industry-leading utilization rates, while the 12-inch capacity ramp-up has successfully metvolume targets, driving the Company's overall revenue growth.
Runxi Micro Factory Tour Passage
Runxi Micro High-End Power Device Wafer Production LineCR Run'an factory
Yangtze River Delta (WuxiCore): Focuses on technologicalbreakthroughs, materials, andthird-generation semiconductors,leveraging existing production linesto enable new replacements. Itoperates the world's largest 6-inchwafer line and China's first fullyself-funded 8-inch line. Key facilitiesinclude: domestic holding platform,IC design services, IC product designcompanies, wafer and packaging/testing bases (including third-generation semiconductors), high-endmask production, operations center,and investment platform.
Chengdu-Chongqing (ChongqingCore): Specializes in power discretedevices with scaled compoundsemiconductor manufacturingcapabilities, housing a PowerSemiconductor Innovation Center.As the Company's growth engine,the Chongqing base successfullytransitioned from foundry to product-oriented operations, securingcustomers in the new energy sectorand laying a solid foundation fordevelopment.
Greater Bay Area (Shenzhen Core):
Focuses on IC integration byestablishing a Product and ApplicationIndustrialization TechnologyInnovation Center, a Marketing,Sales, and Application Service Center,a Sensor R&D Center, a SouthernHeadquarters and Global InnovationCenter, as well as a Shenzhen-based 12-inch specialty power ICmanufacturing and R&D base.
Yangtze
RiverDelta
Chengdu-ChongqingTwin Cities
GreaterBay Area
1112
China Resources Microelectronics Limited2024 Sustainability Report
"Core"Breakthroughs:
Independent Innovation Empowers Transformation,Pioneering Strategic Emerging Industries
With key projects across the "Two Rivers, Three Regions"achieving targets, CR Micro has seen successive major project commencements.Its IDM model further enhances advantages in product development and iteration, solidifying its foundation in strategic emergingindustries.
China's booming semiconductor market has fueled rapid growth in local foundry services. CR Micro is advancing 12-inch production lines.Capitalizing on the new energy vehicle surge, the Company has positioned automotive chips as a future growth driver, expanding customeroutreach in new energy sectors and developing proprietary manufacturing processes to penetrate the market of new energy vehicle chips.
Benefiting from its advanced operational model, scientific strategic layout, and strong R&D capabilities, the Company has consistentlyranked third among domestic semiconductor manufacturers in China, second in MEMS product enterprises, and first in MOSFET (metal-oxide-semiconductor field-effect transistor) products. In 2024, the Company secured 10 new national key technology projects, and itssubsidiary Wuxi DIS was honored with the national-level "little giant"title for specialized and innovative SMEs. Additionally, the Companywon one "Second Prize of the National S&T Progress Award"and two "China Patent Excellence Awards". Meanwhile, by strengtheningindustry-academia-research collaboration, the Company successfully established 5 joint laboratories and 5 innovation consortiums,significantly enhancing its overall capabilities and advancing toward its goal of becoming a world-class semiconductor enterprise withglobal competitiveness.Accelerate R&D to Forge Original Manufacturing Processes
Reap Abundant Innovation Achievements Through Sustained Efforts
Semiconductorsector:
The Wuxi DIS high-end mask project successfully achieved mass production; Runxi Microcompleted the construction of its 12-inch production line with a capacity of 30,000 wafersper month; CR Micro Anhui Advanced Packaging and Testing Base steadily increased output,with both capacity building and production meeting planned targets; Runpeng Semi's 12-inchproduction line equipment was installed, debugged, and put into operation as scheduled.
New energy
vehiclesector:
In the new energy vehicle sector, the Company's series of automotive-grade products andmodules, including MOSFETs, IGBTs, SiC MOS, and power ICs, have entered the supply chainsof leading domestic automakers and Tier 1 automotive component suppliers through solutionbundles. These products are applied in multiple core systems such as power control, bodyelectronics, and advanced driver-assistance systems.
2024
Secured
10 new nationalkey technology projects
Successfullyestablished5 jointlaboratories
Successfullyestablished
innovation consortiums
1314
China Resources Microelectronics Limited2024 Sustainability Report
Responsibility Topic 1Staying True to Our MissionCharting a New Chapter for the Semiconductor Industry
Responsibility Topic 2Participating in the Formulation of Semiconductor Industry ESGGuidelinesStriving to be A Pioneer in Sustainability Industry Development
Responsibility Topic 2Participating in the Formulation of SemiconductorIndustry ESG Guidelines
In today's rapidly evolving global technology landscape, the semiconductorindustry has become a key driver of national economic growth and technologicalinnovation. However, with rising environmental compliance costs and stricter ESGsupervision, implementing new ESG regulations for the industry is imperative.As a pillar of the industry, CR Micro actively participated in discussions and thedrafting of CASS-ESG 6.0: Semiconductor Industry Guidelines, contributingcritical insights to the industry's ESG development and leading the way towarda sustainable future.
Unresolved Industry Challenges DemandImmediate Standardization
Facilitating Guideline Development and EstablishingBenchmark Practices
Semiconductor product manufacturing involves complex processes, high consumption of chemical materials and energy, and inherentlyfaces significant environmental protection pressures. With increasingly fierce technological competition, rapidly changing market demands,rising R&D costs, shorter product life cycles, and tightening export controls on key technologies, ESG management difficulties haveintensified. Effectively reducing carbon emissions, properly balancing economic development, social responsibility, and environmentalprotection, and achieving high-quality and sustainability of the industry have become critical challenges that semiconductor enterprisesmust address.Meanwhile, societal attention to labor rights protection and supply chain transparency continues to grow, and the semiconductorindustry faces stricter social scrutiny in fulfilling social responsibilities and optimizing supply chain management. Regulatory agenciesare integrating environmental protection and social impact into corporate development strategies to achieve coordinated economic,environmental, and social development. Investors are also more inclined to choose companies with outstanding ESG performance whenmaking investment decisions to effectively reduce risks and secure long-term stable returns.However, varying interpretations and implementation differences in ESG practices across industries not only increase regulatorychallenges but also make it difficult for investors to accurately assess the ESG performance of semiconductor companies. Leading thedevelopment of unified and clear ESG industry standards and management guidelines for the semiconductor industry has become anurgent priority. The establishment of new standards will also provide semiconductor companies with a more comprehensive, clear, andactionable framework, further enhancing the transparency and standardization of industry disclosures and meeting the demands ofregulators and stakeholders to oversee, assist, and assess corporate sustainability practices.
1516
Striving to be A Pioneer inSustainability Industry Development
Supporting guideline discussions and setting benchmark examples. Against the backdrop of growing global emphasis on sustainability,CR Micro has joined hands with industry peers to participate in and promote the compilation, release, and implementation of theCASS-ESG 6.0: Semiconductor Industry Guidelines,collectively building a solid foundation for ESG development and striving to create a moreharmonious and sustainable industry ecosystem.As a key contributor, CR Micro hosted the launch and expert workshop forCASS-ESG 6.0: Semiconductor Industry Guidelinesat itsShanghai headquarters. Collaborating with industry partners such as AMEC and Wind, the Company engaged in in-depth technicaldiscussions and comprehensive content development, proposing core ESG issues for the semiconductor industry and sharing bestpractices. These efforts provided valuable insights for refining and finalizing the guidelines, improving industry ESG disclosure standards,and advancing the sustainability of China's semiconductor enterprises.
The Company's notable achievements and practical experience in ESG management were carefully distilled and highlighted as benchmarkcases in the CASS-ESG 6.0 semiconductor industry guidelines, providing valuable references and inspiration for peers.
China Resources Microelectronics Limited2024 Sustainability Report
Deepening ESG Management and Demonstrating ResponsibilityThe Company's participation in drafting the semiconductor industry guidelines reflects its commitment to ESG industry exchange anddevelopment, as well as recognition of its decades of experience and outstanding achievements in social responsibility management.Against the backdrop of growing ESG awareness, CR Micro has deeply integrated into the ESG ecosystem, driving innovation and practicein ESG management to higher standards through organizational structure, institutional development, and internal alignment.
Moving forward, CR Micro will continue to fully implement the new development philosophy, leveraging technologicalinnovation to solve environmental challenges and responsible actions to advance toward becoming a world-leadingsupplier of power semiconductor and intelligent sensor products and solutions. While driving robust business growth,the Company will remain committed to the core principles of sustainability, continuously deepening the scope andimpact of ESG practices to contribute solid efforts toward building a greener, more harmonious, and sustainablefuture.
In December 2024, the Company's Director, ChiefFinancial Officer, and Board Secretary, Wu Guoyi,participated in the "ESG Investment Value of ChineseListed Companies"roundtable organized by the SSEand China Fund News, presenting the Company'soutstanding ESG practices and forward-thinkingconcepts.
In August 2024, the 2023 Annual Sustainability WorkConference was held, featuring an award ceremony forsustainability pioneers. 9 ESG work coordinators fromfunctional departments, 6 outstanding business unitcases, and 2 outstanding business unit reports wererecognized with 2023 ESG Pioneer Individual, Case,and Report Awards.
The Company established the "Board Strategy and Sustainability Committee"for the purpose of creating a two-tier ESG governance system that links management and execution for collaborative efficiency.
Organizational Structure
The Company optimized and upgraded theSocial Responsibility Management System of China ResourcesMicroelectronics Limitedto enhance the quality and efficiency of social responsibility management. TheCompany formulated internal policies such as theCR Micro External Donation Management Regulations,clarifying key donation directions, principles, methods, management approval procedures, and improvingpublic welfare-related operating mechanisms.
System Development
The Company integrated the sustainability report compilation mechanism, motivating business units toactively explore outstanding materials and participate deeply in report compilation. Simultaneously, promotedindependent sustainability report preparation by each business unit to disclose their respective highlightsand responsibility performance. The Company hosted annual ESG work conferences to review achievements,recognize excellence, select model cases, and foster a positive atmosphere for full employee participation inESG efforts.
Internal Integration
The Company responded to the high standards of the Shanghai Stock Exchange regarding corporatesustainability, proactively and standardly disclosing responsibility practices. The Company actively participatedin ESG roundtables organized by the Shanghai Stock Exchange, China Fund News, and other institutions toshare CR Micro's ESG management experiences and highlights. To date, the Company has consecutivelypublished sustainability/social responsibility reports for 12 years, comprehensively showcasing its multi-dimensional responsibility practices and achievements in economic, environmental, social, and corporategovernance fields.
Regulatory Response
1817
Responsibility Topic 2Participating in the Formulation of Semiconductor Industry ESGGuidelinesStriving to be A Pioneer in Sustainability Industry DevelopmentChina Resources Microelectronics Limited2024 Sustainability Report
2019
Sustainability Management
Strengthening Responsibility Structures
CR Micro shoulders the mission of "empowering a better life with CR Micro", upholds the vision of "becoming a world-leading supplier ofpower semiconductor and intelligent sensor products and solutions", and adheres to the values of "integrity, performance-driven, people-oriented, and win-win cooperation". By implementing six major social responsibility strategies, the Company pursues the unification ofeconomic, social, and environmental benefits while strengthening its core business to build a sustainable brand image for CR Micro.
Phase 12023(Comprehensive
Integration,StrengtheningFoundations)
To achieve higher-level and higher-quality development, the Company integrates social responsibility into its corporate strategyformulation, daily business operations, and functional management processes. Based on practical considerations and phased research, itestablishes social responsibility development goals, builds a social responsibility framework and institutional system, and plans focused,implementable social responsibility pathways.
Improve the sustainability governance structure and supporting work systems,establish a sustainability indicator system and management mechanism, andencourage business groups to participate in sustainability initiatives, laying thegroundwork for the Company to deepen unified ESG awareness.
Responsibility Strategy
Formulating Responsibility Plans
Accountability to
Shareholders
Responsibility
Philosophy
Accountability
to Partners
Accountability
to the Public
Economic ResponsibilityBuilding Value-Driven CRMicroCreating Optimal CorporateValueEmployee ResponsibilityBuilding People-Oriented CRMicroEnsuring Happy Work andLife BalanceEnvironmental ResponsibilityBuilding Green CR MicroPromoting Green EcologicalCivilization
Responsibility
EvaluationContinuousPromotionDevelop a responsibility indicator system to createstandardized scientific assessment tools
Sustainability Management
In advancing social responsibility management, the Company prioritizes institutional development as a key driver for improvingsocial responsibility performance. By establishing, optimizing, and refining social responsibility standards, it continuously promotesthe institutionalization, standardization, and normalization of sustainability efforts, enhancing the quality and effectiveness of socialresponsibility management.
Develop a mature reporting mechanism for business groups, enabling each businessgroup to independently compile sustainability reports. Departments/businessgroups clarify their roles and goals in sustainability and autonomously advancerelated work (from 2023 to 2025, the Company's business groups continue todevelop and submit their independent sustainability reports).
Engage in comprehensive communication with stakeholders, deeply integratesustainability into corporate management, business processes, and corporateculture, elevate sustainability efforts to rank among top-tier domestic semiconductorenterprises, establish an influential sustainability brand, and build leadership insustainability.
Responsibility System Improvement
Social Responsibility System
Development Framework
Implement specialized socialresponsibility management policies
CR Micro Social ResponsibilitySystem Development Framework
Accountability toEmployees
Accountability tothe Environment
Accountability to
Customers
Customer ResponsibilityBuilding Satisfied CR MicroEarning Trust ThroughDedicationPartner ResponsibilityBuilding Win-Win CR MicroCreating New Opportunitiesfor CollaborativeDevelopmentPublic ResponsibilityBuilding Harmonious CRMicroPromoting Social Harmony
Phase 22024-2025(SystematicAdvancement, Quality
Upgrade)
Phase 3(2026-2030)(LeadershipConsolidation,ExemplaryBenchmarking)
Strengthen foundational management
systems
Establish responsibility implementationand evaluation mechanismsImprove responsibility supervision
systems
China Resources Microelectronics Limited2024 Sustainability Report
2221
The Company actively enhances its ESG governance structure, building on its existing social responsibility management framework toclarify management levels and divisions of labor. It establishes a two-tier ESG governance system (management and execution layers),providing a solid foundation for top-down ESG implementation.Under the Board of Directors leadership, functional departments and subsidiaries fulfill their respective roles, holding regular meetingsto discuss ESG policies and their relationship with production, markets, and customer service.Relevant departments maintain highawareness of ESG topics during production and service processes, setting annual goals in areas such as safety management, greenand low-carbon initiatives, and volunteer public welfare. Progress and outcomes are reported to management, followed by review andevaluation to ensure goal attainment and advance ESG implementation.Additionally, the Company refines executive compensation metrics by incorporating ESG-related "binding items"in performance tasks,such as major safety incidents, social stability, and environmental events, linking assessment results to compensation.
Improving Governance Structure
Management AgenciesBoard of DirectorsStrategy and Sustainability
Committee
Main ResponsibilitiesCoordinate and lead corporate-wide sustainability and ESG initiatives, research policies, andprovide recommendations; review sustainability and ESG-related reports.Formulate sustainability work plans, with responsible departments and business groupsresponding to create a green and low-carbon-centric sustainability system.
E
Carbon Neutrality Task ForceOperation Center
Manufacturing CenterEHS (Environment, Health and
Safety) Department
S
Human Resources Department
Marketing Department
Technology Research Institute
Intelligence and Digitalization
DepartmentLabor Union
G
Office of the Board of Directors
Discipline Inspection Department
Party-Mass Affairs Department
Audit DepartmentFinance Department
Legal and ComplianceDepartment
Promoting Responsibility Integration
During the reporting period, the Company aligned with international and domestic ESG disclosure standards, national macro policies,and industry regulations. Through methods such as surveys, internal workshops, and expert consultations, it gathered feedback frominvestors and stakeholders on ESG management and disclosure. Using a dual-dimension approach - "financial materiality"and "impacton ESG"- the Company developed a material topic management model and disclosed details as required.
Identifying Key Responsibility Topics
Topic Identification and Assessment ProcessUnderstand companyactivities and backgroundsof business relationships
Establish a List of Material
Issues
Assess and confirm themateriality of issues
Report IssuesSummarize the processes,methodologies, andconclusions of dualmateriality analysis fortopicsDisclose relevant contentsin accordance with therequirements ofSelf-Regulatory Guidelinesfor Listed CompaniesNo.13 - Preparation ofSustainability Report.
Conduct importanceassessments ofenvironmental, social, andgovernance impactsFinancial MaterialityAssessmentIntegrate impact andfinancial significance result
Based on the 21 topicsoutlined in the Self-Regulatory Guidelinesfor Listed CompaniesNo. 14 - SustainabilityReportissued by SSE, theCompany identified otherpotentially significanttopics.Identify relevant impacts,risks, and opportunities foreach topic, and compileinto a corporate topicinventory
Understand companyactivities and businessrelationshipsUnderstand theexternal objectiveenvironmentKnow about majoraffected stakeholders
Topic Assessment Results
Importance to environment, society, and governance
Financial impact significance（Medium）
(High)
(High)
Developing circulareconomy
Response to climatechangeEnvironmental compliancemanagementWater stress managementClean technologyopportunitiesOptimizing customerservice
Improving corporategovernance
Operational complianceEnhancing risk control
Business ethics and anti-
corruptionConducting due diligenceAnti-Unfair competition
Leading industrialdevelopmentEqual treatment ofsmall and medium-sized enterprisesProtecting employees'rights and interestsBuilding responsiblesupply chainsStrengthening stakeholdercommunication
Contributing to ruralrevitalization
Philanthropic initiativesSafeguarding ecologicalsecurity
Valuing intellectual
propertyAdhering totechnological ethics
Biodiversity
conservation
Data security and customerprivacy protection
Reducing pollutantemissionsConserving energy andresourcesTechnologicalinnovation and R&DDelivering high-qualityproductsControversial procurementmanagement
Board of Directors
Strategy and Sustainability Committee
Sustainability ManagementChina Resources Microelectronics Limited2024 Sustainability Report
2423
On August 5, 2024, CR Micro held the 2023 AnnualSustainability Work Conference themed "Focusing onResponsibility Integration, Advancing Sustainability",recognizing outstanding ESG work coordinators fromfunctional departments, business unit cases, and reports.
On November 7, 2024, the State-owned AssetsSupervision and Administration Commission of theState Council hosted the State-owned Enterprise SocialResponsibility Forum, releasing the "Central EnterpriseListed Companies ESG · Pioneer 100 Index (2024)"whereCR Micro was listed for the first time, ranking 29th.
On August 7, 2024, the Finance Program Center of ChinaMedia Group held the ESG China · Yangtze River DeltaCorporate Social Responsibility Summit, where CR Microwas selected as one of the "China ESG Listed CompaniesYangtze River Delta Pioneer 50"for its excellent ESGperformance.
On November 19, 2024, ESG China · The 7th BeijingResponsibility Exhibition was held in Beijing, where theChinese Academy of Social Sciences research teamreleased theBlue Book of Corporate Social Responsibilityfor the 16th consecutive year. CR Micro was again listed,ranking 4th in the semiconductor industry's socialresponsibility development index for two consecutiveyears.
The Company establishes diversified communication mechanisms and channels to disseminate its responsibility philosophy and dynamicperformance based on its operational reality, enhancing stakeholders' understanding and support. A "Social Responsibility Column"is setup on the official website, and ESG-related work information or event updates are promptly disclosed on the official WeChat platform andmainstream media websites to enhance stakeholders' understanding and support.
The Company continuously promotes responsibility and capacity building by organizing thematic education and awareness training onESG concepts, key topics, and risk management for headquarters' functional departments, subsidiaries' designated departments, andEHS departments to enhance the comprehensive quality and capabilities of social responsibility personnel. It organizes participationin internal and external social responsibility exchanges, benchmarks responsibility management, practices, and communication withCR Group and other leading enterprises, and hosts sustainability work conferences to select and recognize outstanding cases fordepartmental learning.
Enhancing Responsibility Competence
Strengthening Responsibility Communication
In 2024, the Company continued to improve its diversified internal and external communication platforms, maintaining an open mindsetto deeply study the concerns of stakeholders including government, investors, customers, employees, partners, communities, andthe environment. It listened to their expectations and appeals, incorporating relevant feedback into the Company's decision-makingprocesses and translating them into corporate social responsibility action goals and plans.
Stakeholder Appeals and CR Micro's Responses
StakeholdersTopics of concernCommunication methods and performance
Government andregulatory agencies
Compliance with laws andregulationsLawful tax paymentSupport for local development
Practice integrity and compliance managementProactive tax complianceResponse to major policies
Shareholders andinvestors
Improvement of corporategovernanceInvestor protectionFair access to information
Perfection of governance structureStandardization of the governance through the GeneralMeeting of Shareholders, Board of Directors, and Boardof SupervisorsCompliance disclosure information
Customers
Satisfaction with diverse demandsAssurance of product qualitySupply of high-quality serviceEnhancement of customersatisfaction
Promotion of innovation and R&DEnhancement of quality managementService quality assuranceTimely response and resolution of customer requests
Suppliers andindustry
Supply chain managementAdherence to business ethicsIntegrity and reciprocityContribution to industrydevelopment
Improvement of supplier management mechanismsImplementation of transparent procurementDriving partner successParticipation in industry exchanges and cooperation
Employees
Protection of employees' rightsand interestsSupport for employee growthHealth and safetyBalance of work and life
Optimization of labor managementPerfection of career development systemsPrioritization of employee occupational health and safetyEnrichment of employee activities
Communities
Active community engagementVolunteer activitiesAssistance to disadvantagedgroups
Conduct of public welfare projectsAdvancement of rural revitalizationConstruction of volunteer service teams
Environment
Environmental managementWater resource utilizationLow carbon and energyconservationEcological conservation
Environmental monitoringPractice of energy conservation and emission reductionGreen low-carbon developmentPromotion of resource conservation
Sustainability Management
China Resources Microelectronics Limited2024 Sustainability Report
Our Actions:
Our Performance:
Strengthen Party Building LeadershipStandardize Corporate GovernanceEnhance Compliance and Risk Control
Operating Revenue (RMB 100 million)
Number of R&D Personnel
R&D Investment (RMB 100 million)
Total Assets (RMB 100 million)
2022
2022
2022
2022
100.60
1,413
9.21
264.58
99.01
101.19
11.67
291.07
1,7311,597
11.54
292.15
2023
2023
2023
2023
2024
2024
2024
2024
Economic ResponsibilityAdvance Toward World-Class Excellence
Advance TowardWorld-Class Excellence
CR Micro integrates Party leadership with corporate governance, upholdingParty-building responsibilities and laying a solid foundation. It continuouslyimproves internal governance, operates with integrity and compliance,strengthens risk management, enhances governance standards whileensuring standardized operations, and modernizes its governance systemand capabilities.
Economic Responsibility
China Resources Microelectronics Limited2024 Sustainability Report
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CR Micro adheres to the Party's political leadership over state-owned enterprises, deeply studies and implements Xi Jinping Thoughton Socialism with Chinese Characteristics for a New Era, actively conducts thematic education, improves Party institutions, strengthensintegrity building, effectively promotes the deep integration of Party leadership with corporate governance, and the deep integration ofParty building with production and operations, creating a new era of high-quality Party building leading high-quality development.
The Company fully understands the general requirements of "studying theory, strengtheningParty spirit, emphasizing practice, and creating new achievements", advancing theoreticalstudy, investigation and research, development promotion, and inspection and rectificationin an integrated manner. It organizes grassroots Party branches to deeply study the spirit ofthe Third Plenary Session of the 20th CPC Central Committee through formats like "threemeetings and one lesson"and thematic Party day activities, fostering a reform atmosphereand development momentum aligned across all levels.
Conducting Thematic Education
Integrating into Corporate Governance
Strengthening Party Building Leadership
13 directly affiliated Party organizations, including 5 directly affiliated Party committees, 1 directly affiliated Party
general branch, and 7 directly affiliated Party branches; 39 grassroots Party branches with a total of 1,018 Partymembers, including 24 probationary membersConducted12 "First Topic"study sessions; organized 13 centralized study sessions and 9 thematic seminars for the
Party committee center group focusing on topics such as the spirit of the Third Plenary Session of the 20th CPC CentralCommittee and Party discipline education, discussing and formulating 15 action items
As of the end of 2024, the Company had:
ImprovingParty BuildingSystems
ImplementingParty BuildingAccountability
The Company signed Party building responsibility agreements at all levels, rigorously implementedParty building performance evaluations and annual supervision, and enhanced the application of Partybuilding assessment results to raise accountability awareness among Party organization leaders.
The Company adheres to the "Two Unwavering Principles", deepening the implementation of decision-making mechanisms such as "Three Major and One Important"and "pre-meeting deliberation". It hasoptimized and refined CR Micro'sThree Major and One Important Decision-Making SystemandList ofMajor Operational and Management Matters for Preliminary Party Committee Deliberation, promotingthe deep integration of Party leadership with modern corporate governance.In 2024, the Party Committee held 26 meetings, deliberating on 158 "Three Major and OneImportant"items, including 36 pre-meeting deliberation items.
The Company's Discipline Inspection Commission oversees a dedicated department to enforce supervision and discipline, targetingmisconduct such as duty-related violations, crimes, and "profiteering at the enterprise's expense". It conducted integrity education,solicits integrity-themed works, and created a strong internal atmosphere of compliance and integrity through methods such as settingup dedicated columns for promotion, compiling promotional materials, and sending integrity reminders before holidays.
Cultivating Integrity Culture
IntegratingCorporateCulture
SupportingTechnological
Innovation
The Company formulated a specialized plan to strengthen the inheritance of the "red gene"inmicroelectronics, detailing implementation measures. It organized Party members to studyTheHistory of China Resources, reflecting on its revolutionary legacy and national spirit.The Company advanced the construction of ideological and cultural communication platforms,launching a "Theme Education"column on its intranet to promote the decisions of the Party CentralCommittee and higher-level Party committees.Aligning with the integrated circuit industry's characteristics, it built a distinctive Party building brandfor CR Micro, championing patriotism and corporate loyalty.The Company developed a "Promote Growth, Win Strategy"thematic activity plan, outlining 17implementation measures focused on key initiatives for the latter half of its 14th Five-Year Plan andannual business priorities.Party organizations and employees implemented 66 "Excellence in Post"projects covering R&D,process optimization, capacity expansion, and lean management.
The Company researched and formulated an implementation plan for Party discipline education, strengthening top-level design and coordinated execution. It expanded the scope of learning to include all Party members, probationaryParty members, and youth league members, broadening the audience for warning education.It conducted political ecosystem analysis and portrait evaluation, with superiors urged to hold political dialogues withsubordinates to cascade accountability.Units involved in incidents were required to convene special meetings for root-cause analysis and self-criticism.
Highlight Initiatives
The Company's discipline inspection department conducted integrity education sessions for young cadres and employees.
China Resources Microelectronics Limited2024 Sustainability Report
Economic ResponsibilityAdvance Toward World-Class Excellence
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CR Micro continuously improved its corporate governance framework, strengthening board construction to establish a clear and robustsustainability governance architecture. It advanced compliant information disclosure, prioritized investor rights protection, enhancedinvestor relations management, and created long-term sustainable value for stakeholders.
CR Micro refined its governance system with four specialized board committees providing advisory support for major decisions, ensuringprofessional and efficient deliberations. Independent directors and the board secretary enhanced decision-making fairness and rationality,forming a legally defined, transparent, coordinated, and balanced governance framework that drives continuous improvement.
The Company established a sound legal person governance structure, business-aligned organizational design, and effective incentivemechanisms to ensure lawful and scientific operations by Shareholders' Meetings, the board, and management. During the reportingperiod, all meetings functioned smoothly with full compliance in convening and voting procedures.
Optimizing Governance Structure
Standardizing the Governance through the General Meeting ofShareholders, Board of Directors, and Board of Supervisors
Standardizing Corporate Governance
As the supreme authority, the Shareholders' Meeting exercisedpowers lawfully. The Company timely revises theRules ofProcedure for Shareholders' Meetings, convenes and assemblesShareholders' Meetings in accordance with requirements, and iscommitted to safeguarding the legitimate rights and interests ofall shareholders, creditors, and other stakeholders.
Shareholders' Meeting
Shareholders' Meeting
Strategy and Sustainability CommitteeAudit and Compliance Committee
Compliance Information Disclosure
Board of DirectorsImplementing the Company Law of the People's Republic of China and Governance Code for Listed Companies, the CompanyenactedImplementation Plans for Authority of Boardof Directors and optimized its deliberation processes. In accordancewith the director selection procedures stipulated in theArticles of Association,the Company adhered to the principles ofindependence, diversity, and professionalism, selecting directors with strong professional capabilities, good conduct andreputation, and rich management experience from multiple aspects including "age, gender, educational background,professional experience, skills, and term of service"to participate in corporate governance decision-making.The Company actively conducted effectiveness assessments on Board of Directors, conducting satisfaction surveysamong external directors for three consecutive years, collecting feedback, and achieving the highest satisfaction rating of"very satisfied"for three consecutive years. The Company's management actively communicated with board members,incorporating suggestions from directors of various professional backgrounds to promote the upgrading of its governancesystem. During the reporting period, all directors of the Company faithfully and diligently performed their duties in accordancewith the aforementioned system, actively attended and carefully reviewed various proposals of Board of Directors, andexpressed professional opinions on relevant matters.
In strict accordance with the relevant regulations ofthe Shanghai Stock Exchange and the China SecuritiesRegulatory Commission, the Company has formulatedsystem requirements such as theInformation DisclosureManagement Systemand theInternal Reporting Systemfor Major Information, to truly, accurately, completely,and timely disclose company information and enhancethe value transmission and transparency of informationdisclosure.In 2024, a total of 68 announcement documents coveringvarious types such as cmpany governance, intermediaryreports, and Shareholders' Meetings were disclosed,totaling nearly one million words; the Company was ratedas having the highest rating of "A"in the Shanghai StockExchange's information disclosure evaluation for twoconsecutive years.
The Company formulated theInvestor Relations ManagementRules of China Resources Microelectronics Limitedto standardizeinvestor communication work, set up a dedicated investorrelations email and investor communication hotline, establishedan "Investor Relations"channel on the Company's official website,and held investor open days from time to time to establish effectivecommunication channels with investors. Simultaneously, it activelypromoted the internationalization of investor communication,strengthening in-depth exchanges with international investmentinstitutions and analysts in Hong Kong, Singapore, Europe, theMiddle East, and other regions.In 2024, a total of 171 communication sessions were heldthroughout the year, involving over 1,000 institutions. The Companyresponded to 103 questions raised by investors on the e-interactionplatform, with a response rate of 100%.
Consisted of 11 directors in total, including 1 female director and 4 independent directorsConvened14 Specialized Committee Meetings, 7 Board Meetings, and 1 Shareholders' Meeting
Updated6 governance systems including theIndependent Director Work Rules of China Resources MicroelectronicsLimited,Articles of Association, andShareholders' Meeting Rules of Procedure of China Resources MicroelectronicsLimitedStrengthened the protection mechanism for the rights and interests of small and medium investors, providing investorswith continuous and stable reasonable returns, and distributed a total of RMB 148 million in cash dividends
As of the end of 2024, the Company:
Enhancing Information Disclosure QualityDeepening Investor Relations Management
Board of DirectorsPresident's Office
Meeting
Nomination CommitteeRemuneration and Assessment Committee
China Resources Microelectronics Limited2024 Sustainability Report
Economic ResponsibilityAdvance Toward World-Class Excellence
Awarded the highest ratingof "A"in the SSE informationdisclosure evaluation fortwo consecutive yearsReceived the "Best InnovationPractice"award in the annualinvestor relations data rankingissued by Jinmen FinanceAwarded the "OutstandingInformation Disclosure Unit"bythe Wuxi Listed Companies
Association
Received the "Best Capital MarketCommunication Award"from theCross-border Roadshow Platform for
Listed CompaniesAwarded the "Most ValuableInvestment Award"by Cailian
Press
Honorary Awards
The Company's official website has an "Investor
Relations"channel
Investor Open Day events
CR Micro continues to promote systematic risk management, strengthen the implementation of internal control and supervision systems,improve risk prevention and control capabilities, and effectively prevent and control risks in internal control, auditing, taxation, ESG, andother aspects, providing a solid guarantee for achieving high-quality development strategic goals.
As the highest decision-making agency for internal control system management, the Board ofDirectors is responsible for the establishment, improvement, and effective implementation of theinternal control system. The Legal Compliance, Risk Control, and Compliance Committee, as theleading agency, is responsible for coordinating, organizing, and promoting the implementation ofvarious specific tasks. Each functional department is the responsible entity for the construction andsupervision of the internal control system, implementing internal control and risk managementrelated work according to their functional divisions. Each subsidiary designates an organizationas the leading body for internal control and risk management, with powers and responsibilitiesassigned to each responsible department and individual, forming a management mechanismwith strong leadership, clear responsibilities, clear processes, and standardized order.The Company continuously improvesits internal control system bycomprehensively reviewing internalcontrol systems, formulating plans forestablishment, revision, and abolition,and regularly organizing systemreviews and quarterly implementationplans to achieve a streamlined andhealthy internal control system.Meanwhile, by sorting out thehierarchy of internal control systems,strengthening the penetration andsupervision of subordinate units'systems, constructing a visualmanagement map, establishing asystem organizational chart andmanagement map, and optimizingthe Company's internal controlsystem management structure into areasonable "pyramid"structure.
In accordance with changes inexternal regulatory requirementsand internal managementorganizational adjustments, theCompany comprehensively andsystematically reviews its internalcontrol information systems. Byadding new management modules,supplementing missing items,and deleting content that doesnot align with actual business, theCompany has established andupdated information systems forcorresponding modules, furtherenhancing the level of internalcontrol information construction.
Based on its business characteristics and focusing on the basic elements of internal control, the Companyconducts self-evaluations of internal control on a comprehensive basis, covering 24 domestic and overseassubsidiaries. The evaluation includes important business areas such as procurement management,cybersecurity management, fund management, and fixed asset management.Simultaneously, the Company conducts penetration inspections on the construction and implementation ofinternal controls in important business areas of subsidiaries, carrying out special internal control supervisionevaluations in high-risk areas such as sales pricing management, customer management, procurementsupply chain management, and engineering project management. Rectification suggestions are proposedfor identified issues, and their implementation is promoted.
Improving Internal Control Management
Enhancing Compliance and Risk Control
Int
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rna
l
Control
Sys
tem
Con
stru
ctionIn
te
r
n
a
l
C
o
n
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r
o
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f
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i
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I
nt
erna
l
Control
Evaluation
China Resources Microelectronics Limited2024 Sustainability Report
Economic ResponsibilityAdvance Toward World-Class Excellence
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In 2024, the audit function fully fulfilled its oversight and service responsibilities, strengthenedrisk awareness, established a risk-oriented audit model, focused on high-risk areas such asprocurement, sales, investment, and engineering, and enhanced the pertinence and effectivenessof audits. Simultaneously, it optimized the audit system to improve the overall efficiency of audit.
Optimizing Audit System
Optimizing Audit Leadership Structure
The Company formulated theDecision-Making Checklist for Major Audit Matters of CR Microto further clarify theresponsibilities and operating mechanisms of the Party committee, Board of Directors, and president's office inleading audit.It established an Audit Rectification Leading Group to coordinate the deployment and implementation ofrectification.Improving Audit System
The Company optimized relevant systems such as theInternal Audit Management System of China ResourcesMicroelectronics Limited,Economic Responsibility Audit Implementation Measures of China ResourcesMicroelectronics Limited, andAudit Rectification Management Measures of China Resources MicroelectronicsLimited, and added theAudit Result Application Management Measures of China Resources MicroelectronicsLimited to provide strong guarantees for deepening internal audits.Enhancing Audit Business Competence
The Company promoted certified auditors, achieving a 100% certification rate; enhanced digital audit capabilities,encouraged department personnel to participate in the Group's data analyst intensive training courses, with atraining coverage rate of 56% in 2024, and increased modeling personnel from 1 in 2023 to 5; organizedparticipation in the Group's "Air Classroom"audit training sessions, with a total of 63 participants within the yearto improve auditors' professional capabilities.Collaborative Linkage to Enhance Oversight SynergyThe Audit Department and the Inspection Office's special inspection team jointly conducted multiple auditprojects, promoting the organic integration of "economic check-ups"and "political check-ups", realizing timelycommunication and sharing of information, strengthening information communication and analysis, andeffectively enhancing oversight synergy.
The Company continuously optimizes the comprehensive risk management system and operating norms, constructs a comprehensiverisk management system in line with microelectronics characteristics, continuously tracks changes in major risk levels and risk trends, andprevents the spread and superposition of major risks.Comprehensive Risk Management
The Company formulated systems such as theLegal Risk Management System,
Major Business RiskClassification Monitoring and Incident Reporting Management Measures, andRisk Management Guidelinestoprovide working mechanisms and specific guidelines for comprehensive risk management.Perfecting Risk Institutional Mechanisms
The Company organized headquarters' functional departments, cost centers, and business groups to conductquarterly risk monitoring, scientifically and reasonably set or adjust risk quantitative monitoring indicatorsthat prominently reflect the semiconductor industry and company characteristics, focusing on risk indicators,risk changes, and the implementation of control measures, grasping risk changes and the implementationof risk response plans, and providing written reports to the Legal Compliance, Risk Control, and ComplianceCommittee after in-depth analysis and judgment.
Conducting In-Depth Risk Monitoring
The Company incorporated the Code of Business Conduct into new employee orientation training to enhancenew employees' basic compliance risk awareness; organized sales personnel to participate in training on"How to Respond to Export Control Compliance Risks When Transacting with Customers"to enhance businesspersonnel's understanding of export control rules and improve risk management effectiveness.Strengthening Risk Management Training
The Company established a management model of "pre-event risk identification and response - in-eventrisk monitoring and early warning - post-event risk reporting and handling", explored the establishment ofa "1+4"(1 headquarters + 4 business groups) risk assessment mechanism, and built a multi-level three-dimensional risk profile to better grasp the overall risk picture and its penetration distribution to businessgroups, effectively leveraging the leading role of risk assessment.
Optimizing Risk Assessment Mechanisms
The Company integrated ESG risk management into routine risk management, organized all functionaldepartments and business groups to carry out top-down risk assessment work, involving ESG-related riskssuch as "human resource risks, market risks, health, safety, and environmental risks, procurement and supplychain management risks, and product risks", and formulated response measures based on the comprehensiverisk management system to enhance ESG risk management capabilities.
ESG Risk Management
The Company focused on conducting special risk governance in key areas and projects. For the project riskincident, the Company proposed systematic risk management measures based on comprehensive analysisand judgment from multiple dimensions such as legal, audit, and public opinion to effectively prevent andmitigate risks. For export compliance risks, embedded compliance review nodes in the new customerintroduction system (CRM) to build a compliance review system and reduce the risk of the Company conductingtransactions with non-compliant customers.
Special Governance in Key Sectors
China Resources Microelectronics Limited2024 Sustainability Report
Economic Responsibility
Advance Toward World-Class Excellence
The Company established a tax team and formulated relevant systems such as theCorporateIncome Tax Management Measures of CR Micro,Value-Added Tax Management Measures ofCR Micro,Related-Party Transaction Tax Management System of CR Micro,Tax DeclarationManagement Measures of CR Micro, andTax Registration Management Measures of CR Microtoprovide clear guidelines and constraints for tax management and enhance the standardizationand scientific level of the Company's tax management. Simultaneously, to effectively preventand control tax risks, it formulated the systems such as theInternal Tax Risk Management andExternal Response Management Measureswere formulated, and conducted in-depth supervisionand evaluation in tax, finance, and audit.In 2024, the Company faithfully declared all tax obligations to tax authorities without concealment,omission, misreporting, or tax evasion, actively contributing to national fiscal revenue and localeconomic development.
The Company strictly complies with national laws and regulations on confidentiality, trade secrets, cybersecurity, and data security.Adhering to network zoning and data classification principles, it implements lifecycle data control strategies while continuouslystrengthening trade secret and information security management systems.
In full compliance with theCybersecurity Law of the People's Republic of China, the CompanyestablishedCybersecurity Management Measures,Personnel Cybersecurity ManagementStandards. It formed a Cybersecurity and Informatization Leadership Group with unit headsas primary responsible persons and designated cybersecurity officers as direct supervisors. Itnormalized its cybersecurity operations by organizing regular emergency response drills andanti-phishing tests, conducting cybersecurity classification protection evaluations, networkperimeter consolidation, industrial control system security risk assessments, and cybersecurityinspections for new subsidiaries, thereby continuously enhancing its cybersecurity defensecapabilities. It organized employees to sign cybersecurity responsibility agreements, andconducted cybersecurity training and awareness activities, effectively enhancing the overallcybersecurity awareness of all staff.
Adhering to Lawful Tax Payment
Protecting Information Security
Cybersecurity Management
Conducted customs compliance and risk management
training sessions
Participated in compliance officer training organized by
CR Group
With the goals of "effective protection"and "standardized management", the Company revised
CR Micro's Data Management MeasuresandData Security Management DetailedRules tocontinuously improve the construction of data security management systems. The Company'sIntelligent and Digital Development Committee serves as the decision-making body for datasecurity work, while the Intelligent and Digital Department acts as the lead managementorganization, jointly advancing the protection of its trade secrets, work secrets, and other sensitivedata assets from infringement and ensuring normal business operations.By deploying a new-generation digital certification security platform, establishing a data leakageprevention detection platform, developing the automatic archiving function of the "smart coredatabase"system, promoting the use of office terminal data leakage prevention systems,encrypting software for key personnel terminals, and conducting terminal confidentialityinspections, the Company continuously enhances the data security protection technology ofits commercial secret systems. At the same time, it strengthened data leakage preventionmonitoring, early warning, and inspections, improving incident reporting mechanisms andemergency response plans. The level of data security protection and customer privacy informationprotection was continuously elevated.
Data Security Management
Theoretical Study on Building a
Strong Cyber Nation
Created exhibition boards forCybersecurity Awareness WeekConducted lectures on preventing
telecom and online fraud
Promoted cybersecurity through calligraphy works during Cybersecurity Week
China Resources Microelectronics Limited2024 Sustainability Report
Economic ResponsibilityAdvance Toward World-Class Excellence
Investment in R&D: RMB 1.167 billionR&D intensity (R&D expenditure as a percentage of revenue) reached
11.53%
As of the end of 2024, the Company had4,298 R&D technical personnel, accounting for 39.96% ofthe total workforceLaunched the Fangxin Model Worker and Artisan Talent Innovation StudioChongqing CR Micro Laboratory passed CNAS certification with high qualityThe Company's "Key Technologies and Applications of Power MOS and High-Voltage IntegratedChips"project won the Second Prize of the National S&T Progress AwardThe Company's LX100 secure MCU chip product received the CommercialCryptography ProductCertification Certificateissued by the Commercial Cryptography Testing Center of the State CryptographyAdministration
Won the Wuxi Mayor's Quality Award ("Main Award") for the first timeThe Company successfully passed audits by 732 customersThe Quality Management Department conducted35 quality management audits, identifying243 improvement points
The Company obtained ISO 26262 Functional Safety Management System ASIL D certification
As of the end of 2024, the Company held a total of5,453 patents and patent applications, with161 new patents addedFiled1,980 invention patent applications, with a total of 2,352 authorized and maintainedpatentsCR Shanghua'sMEMS Microphone and Its Preparation Methodand Chongqing CR Micro'sA Super-Junction Power Device and Its Layout Structure and Preparation Methodwon the 25th "China ExcellentPatent Award"from the National Intellectual Property AdministrationEach business unit conducted satisfaction surveys with182 key customers, with all four business unitsachieving comprehensive satisfaction scores above 92 (out of 100)The customer complaint resolution rate reached100%
Our Actions:
Focus on innovation-driven developmentImprove product qualitySupply high-quality serviceOur Performance:
Intellectual property management performance
Customer service performance
Lead Excellence inQuality
A craftsman must sharpen his tools to do his work well. CR Micro takes customerinterests and needs as the starting point and ultimate goal of all its efforts, focusingon technological innovation to cultivate new drivers for developing new qualityproductive forces. By creating high-quality products and improving service systems,the Company refreshes consumers' experiences with excellent quality and service.
Customer Responsibility
Customer ResponsibilityLead Excellence in Quality
R&D and innovation performance
Quality management performance
China Resources Microelectronics Limited2024 Sustainability Report
CR Micro continues to increase R&D investment, strengthening the dual cores of technological innovation and intellectual propertyprotection to stimulate internal driving forces and accelerate the leap of new quality productive forces. This continuously injects fresh androbust new momentum into CR Micro's journey toward innovation leadership and corporate excellence.
Focusing on Innovation-Driven Development
The Company established a Technology Research Institute, with headquarters-level and BG-level R&D institutions under it, to integrateand centrally manage the Company's R&D resources. Headquarters-level R&D institutions focus on the Company's technologicaldevelopment needs for the next 3-10 years, conducting forward-looking technology and product R&D. BG-level R&D institutions arededicated to meeting current market demands, developing technologies and products with R&D cycles of less than 3 years that fulfillmarket competition requirements. Additionally, a S&T Management Department was established to oversee the organization, coordination,and management of its overall R&D efforts.
Improving Innovation Governance
Continuously increase R&D investment, strengthen R&D team building, raise the proportionof patents, develop green and eco-friendly products, and strive to become a world-leadingsupplier of power semiconductor and smart sensor products and solutions.SettingInnovation
Goals
CR Micro Technology Research
Technology Management
Forward-
lookingtechnologiesand products
AdvancedTechnology R&D
Center
MCU, SoCICs, and their
application
solutionsInclude MCU,sensor control
IntegratedCircuit R&DCenterProvide testing,
analysis, and
reliabilityevaluationsupport for theCompany'stechnological
R&D
Comprehensivelaboratory
Packagingand testingtechnologiesInclude QFP,QFN, 3D, IPM,panel-levelpackaging,etc.
PackagingEngineering R&DCenterSystemapplication
solutionsIncludepower supply,smart healthapplicationsolutionsInclude wide-bandgapsemiconductordevices, IPM,etc.
AppliedTechnology R&DCenter
Powerdevicesand theirapplication
solutionsInclude PowerMOS, IGBT,SBD/FRD, etc.
PowerSemiconductor
TechnologyInnovation CenterProcessintegrationtechnologyInclude BCD,MEMS, analog
Processintegrationtechnology R&DCenter
Headquarters-level R&D institutionsBG-level R&D institutions
CR Micro Technology Research
Review ofInnovationGoals
The Company invested RMB 1.167 billion in R&D, with an R&D intensity of 11.53%It developed high-efficiency green technologies and products, continuously providing bettersolutions for power semiconductors, smart sensors, and intelligent control.
2024
The Company and its subsidiaries attach great importance to scientific ethics, ensuring data accuracy in the R&D process and opposingany form of academic misconduct. During product development, conduct thorough assessments of potential environmental, occupationalhealth, and safety impacts from semiconductor design and manufacturing. Additionally, continuously strengthen employee training onscientific ethics, raise ethical awareness, and foster a positive culture of technological ethics.
Improving Innovation SystemAdhering to Technological Ethics
The Company and its subsidiaries actively strengthen technology leadership, promote the establishment of innovation platforms, anddrive innovation to address key challenges in production and process technologies. By the end of 2024, the Company had established 9provincial-level R&D platforms, leveraging them to inspire a culture of innovation and unlock its innovative potential.
Building Innovation Platform
Focusing on the Company's 14th Five-Year Plan strategic vision and prioritizing the three core areas of "power semiconductors, smartsensors, and intelligent control", we will conduct a comprehensive review of technological innovation implementation and futuredevelopment during this period. By promoting the concentration of resources such as capital, talent, and technology in innovationdomains, we aim to enhance the Company's technological innovation management capabilities and overall innovation capacity.
Formulating Innovation Strategies
To sustain growth and excellence in our core powersemiconductor business, we will accelerate themastery of core technologies, strengthen innovationcapabilities and core competitiveness, maintaindomestic leadership in niche markets, and strive toadvance into the global forefront.Simultaneously, we will strengthen strategic planningfor cutting-edge core technologies, increase R&Dinvestment, and improve R&D efficiency to achievebreakthroughs in key technologies across third-generation compound semiconductors, specializedmanufacturing processes, advanced packaging, andrelated fields.
We will accelerate the development of smartsensor business, strengthen the application andcommercialization of reserve technologies, andstrive for productization and industrialization tocreate new business growth points.
Simultaneously, we will drive innovation throughtechnology, build a high-level R&D team, achieveindependent R&D of products, self-controlledtechnologies, and secure and reliable data.
Innovation
Strategy
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Chongqing CR Micro and Agilent Technologies (China) Co., Ltd. jointlyestablished the "Semiconductor Micro-contamination Analysis JointLaboratory". The laboratory will introduce Agilent ICP-MS as a leadinginorganic material analysis technology platform. It also plans to developand expand organic material testing methods focusing on volatile organiccompounds (VOCs) involved in ultra-clean semiconductor laboratoryconstruction, as well as photoresists and organic reagents used insemiconductor manufacturing processes. Leveraging the joint laboratory,the two parties will provide semiconductor training services, aiming toestablish the facility as a professional, comprehensive semiconductor testingdemonstration base in Southwest China and a benchmark for high-quality,ultra-clean, and high-purity testing laboratories essential for semiconductorproduction.
Case StudyStrong Collaboration to Build a High-Quality, Ultra-Clean, High-Purity Testing Laboratory Benchmark
Under the joint efforts of industry, university and research, the technological breakthrough in ferroelectricmemory technology has won China Resources Innovation Award.
Establishing Innovation Studios to Strengthen Skilled Talent Development
On June 27, 2024, CR Micro's Packaging/Testing Business Group officiallylaunched the Fangxin Model Worker and Artisan Talent InnovationStudio. The studio focuses on enhancing maintenance, management,and application capabilities of semiconductor packaging equipment, aswell as technological innovation. It organizes activities such as technicalinnovation projects, skill training, professional exchanges, and mentorshipprograms. Additionally, it leverages the "passing on expertise"role of modelworkers and artisans in technical skills and comprehensive competencies,continuously strengthening the skilled talent team to contribute to the high-quality development of the business group and the Company. The outputachievement project Reducing Core Spare Parts Consumption Costs inDie Cutting was awarded the "Professional Level"honor in China's QualityInnovation and Improvement Achievements Evaluation, while theWarpageCorrection Production Method for Microelectronic Chip Packaging Products
was selected for exhibition at the CR Group Employee/Youth Innovation andEfficiency Achievements Showcase.
Provincial-Level Key
Laboratory (1)
Chongqing Key Laboratory for Reliability Testing of Power Devices(Industry and Information Technology)Provincial-Level TechnologyInnovation Center (1)
Chongqing Power Semiconductor Technology Innovation Center
Provincial-Level Engineering
Research Centers (5)
Jiangsu Provincial ASIC Design Engineering Research CenterJiangsu Provincial Advanced Power Semiconductor PackagingEngineering Research CenterJiangsu Provincial Integrated Circuit Engineering Research CenterJiangsu Provincial Photomask Engineering Research CenterJiangsu Provincial Power Semiconductor Testing & PackagingEngineering Research Center
Provincial-Level Enterprise
Technology Centers (2)
Jiangsu Provincial Enterprise Technology CenterChongqing Municipal Enterprise Technology CenterThe Company attaches great importance to the fostering of innovative technology manpower and explores the deep integration of industry,university and research. Together with Tsinghua University, Fudan University, Southeast University and other well-known universities inChina, the Company carries out SiC/GaO, MEMS, SOI-based BCD process, module packaging and such research projects, builds a number ofjoint research centers and practice bases, and promotes the effective connection between education, talent, industry and innovation chains.
Industry-Research Collaborative Innovation
The Technology Research Institute and Foundry Business Group's Design Service Engineering Center partnered with FudanUniversity in an industry-academia collaboration on the "VFRAM Ferroelectric Memory R&D Project," forming a core teamof master's and PhD researchers. In 2024, the first-gen embedded 32K IP passed three qualification tests, while the 2M IPcircuit achieved improved high-temperature reliability through material and process optimization. The team also advancedthe second-gen VFRAM Bit Cell Test Key architecture, mastering its design and testing principles. These breakthroughswon the China Resources Group 2024 Sci-Tech Innovation Third Prize and the 8th "Integrated Circuit Industry TechnologyInnovation Award.
The Company has established a variety of training and incentive mechanisms, introduced systems such as theMeasures forIncentives for S&T Achievements and Contribution Awards for Technological Development Projects, collected technology projectsfor the Outstanding Scientific and Technological Achievement Award, the Annual Collaborative Innovation Award, and the AnnualOutstanding Patent Award, and appraised outstanding science and technology (S&T) workers through comparison, creating anatmosphere of learning, catching up and surpassing.Meanwhile, the Company also attaches importance to the innovative and creative vitality of female S&T workers, supports andencourages them to undertake major company-level R&D projects, and taps their potential.
Strengthening Innovation Incentives
CR Micro signed a strategic cooperation agreement with
Xiamen University
The Collaborative Innovation Center of Solid-State Lightingand Energy-Saving Electronics of Nanjing University signeda strategic cooperation agreement with CR Micro etc.
CR Micro won the Award of ChinaResources S&T Innovation Achievements of
Year 2023.
The "Key Technologies and Applications ofPower MOS and High-Voltage IntegratedChips"of CR Micro won the second prize of
the State S&T Prizes.
During the Reporting Period,the Company has selectedfive awards for outstandingS&T achievements of Year2024, two awards forcollaborative innovation andfour outstanding patents ofthe year, and further wonone third prize of the ChinaResources S&T InnovationAchievement Awards of Year2023, one excellence awardof the Annual S&T InnovationAchievement Awards of Year2023, and one second prizeof the State S&T Prizes.
Case Study
Case Study
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The Company has established an Innovation Development and Intellectual Property Committee, and designated the Legal ComplianceDepartment for intellectual property management specially. It has formulated normative documents such as theStrategic Planning forIntellectual Property of CR Micro, Measures for Intellectual Property Management, and Measures for Patents Management, promoting thein-depth development of intellectual property protection. Moreover, the Company has investigated IP infringements for R&D, investmentand M&A projects, so as to reduce the risk of IP infringement. The Company has delivered special IP training and held the special sharingsessions for IP layout analysis report, enhancing staff's awareness of IP protection.
Protecting Intellectual Property Rights
Government grants of RMB 1,911,200 for intellectual property cumulatively
5,453 patents and patent applications, 161 new patents2 special skill trainings on intellectual property for middle and senior management, 7 special trainings
on intellectual property for R&D personnel, with a total of500 participants approximately
Subsidiaries such as CR Shanghua, CR Ansheng, SiPLP and Chongqing CR Micro have all passed the Intellectual PropertyManagement System Certification.Two patents, namelyMEMS MicrophoneandIts Preparation Methodby CR Shanghua andA Super-Junction Power Deviceand Its Layout Structure and PreparationMethod by Chongqing CR Micro, have won the 25th China Patent Excellence Awardfrom the National Intellectual Property Administration.
As of the end of 2024, the Company had:
Chongqing CR Micro attaches great importance to IP management, which is treatedas the core driving force for the Company's development constantly, performsstrategic planning for intellectual property actively, and determines the R&Ddirection and focus for patent application beforehand, enhancing its competitiveadvantages in the market. With a high regard for intellectual property managementand effective measures, substantial achievements have been achieved in the fieldof intellectual property: The Company was recognized as the National OutstandingIntellectual Property Enterprise;A Super-Junction Power Device and Its LayoutStructure and Preparation Methodwon the China Patent Excellence Award, layinga solid foundation for the continuous development of the Company and theimprovement of its market competitiveness.
CR Micro held a special training session on intellectual
property
CR Shanghua participated in the sharing session on theexperience in cultivating high-value patents in Jiangsu
Province
In the whole process of R&D, production, processing and delivery, LX100 MCU security chips of CR Micro have successivelypassed the EAL4+ information security certification for IT products from China Cybersecurity Review Technology andCertification Center (CCRC) and ISO27001 information security management system certification by China QualityCertification Center, in the field of safe ecosystem building. In April 2024, LX100 MCU security chips have, after meeting therequirements for the second class of theCryptography Test Criteria for Security IC,passed the security review by and obtainedtheCertificate for Commercial Cryptography Product Certificationfrom the Commercial Cryptography Testing Center, StateCryptography Administration (SCA). This marks that such chips have reached the industry leading level in terms of securitycapabilities and application levels.
The Company strives to tackle problems in key and core technology, focusing on the research and development of products as well asthe transformation of innovative achievements, and has made breakthroughs in a number of core products and technologies, effectivelypromoting the widespread application of achievements in China's microelectronics industry, with high-quality innovative achievements.Promoting Transformation of Achievements
Some innovative achievements of CR MicroVFRAM, the first-generation new ferroelectric memory, has completed the research and development in embeddedlow-power IP and process, built a process platform and achieved technological innovation and mass production,breaking the monopoly of foreign companies in the domestic market.The three-layer MEMS microphone Demo has been made by heterogeneous integration technology. SNR testperformance exceeds 70dB at the most, reaching the world-class product level.LX100 MCU security chips have passed the security review by and obtained the Certificate forCommercialCryptography Product Certificationfrom the Commercial Cryptography Testing Center, State CryptographyAdministration (SCA).Complete an 8-inch medium-voltage (100 ~ 200 V) enhanced P-GaN process platform and produce the first 150V/36 A enhanced device sample, filling the gap in related technology/ product.Complete TOLT advanced roof-cooling packaging platform and put the first product into operation, filling the gap inadvanced packaging technology at the power base of CR Run'an.
Case Study
Case Study
Attach importance to IP management and gain competitive advantages
Strengthen the core competitiveness in chip security with three certificates in hand
China Resources Microelectronics Limited2024 Sustainability Report
Customer ResponsibilityLead Excellence in Quality
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CR Micro adheres to the principle of craftsmanship and quality, and integrates the pursuit of high quality into the building of a modernindustry system. It constantly improves its quality management system, enhances the product quality levels, creates the brand competitiveadvantages, provides all customers with advanced power semiconductor and intelligent sensor products and solutions, and strives to bea supplier trusted by customers.
Improving Product Quality
The Company pays close attention to the lean quality management in strict accordance with theLaw of the People's Republic of Chinaon Product Qualityand other related laws and regulations. The Quality Management Department of the Operation Center makes allarrangements for product quality management, performs its duties from the following aspects: supplier quality management, productionline quality management, product analysis, reliability assessment, customer service guarantee, and quality system control, andimplements whole-process quality management across the product lifecycle, towards the objective of zero defect continuously. Led byinnovation and lean and flanked with automation and big data, establish the "Valid mode for high-quality self-driven growth", adhere tohigh standards, systematic management and overall construction, and achieve continuous improvement of products and services. In2024, the Company and its subordinated business groups did not experience any major responsibility accidents related to the safety andquality of their products and services.
In accordance with industry standards, the Company adheres to high standards, systematic management and overall construction, andhas established a comprehensive quality management system. Incorporate factors such as information security, environmental healthand safety, energy, and environmental substances into the scope of quality management, and establish a quality management system inaccordance with ISO9001, IATF16949, and QC080000.
Quality Management System
QualitymanagementISO9001
Hazardous substanceprocess management
QC080000
Information securitymanagement ISO27001
Environmentalmanagement ISO14001
EnergymanagementISO50001
Qualitymanagement
IATF16949
SONY greenpartnerSony GP
Electrostaticprotection managementESD20.20
Practicing occupationalhealth managementISO45001
Product and service quality management system has been certified by
authoritative certification bodies
Direction of CR Micro's quality management
Quality Management System
Supplier quality
management
Supplier material
managementSupplier qualityaudit
Production line
inspectionProduction line exceptionmanagementProduct shipment qualityControl andmanagement
Product structureParametermonitoringProducteffectivenessanalysis
Assessment andevaluation of newproductsMass productassessment andmonitoring
Assessment ofcustomer qualitydemandsProductcomplaintmanagement
Customer auditSystem auditProduct documentmanagement
Product analysis
The Company seeks third-party agencies to audit and test its quality management capabilities and products every year,and has passed a number of certifications by authorities. In 2024, the Company successfully passed the audits of 732customers, including CATL, BYD, Media, TCL and Xiaomi.External Recognition
Every year, the Quality Management Department will implement the internal quality management audits on "qualitymanagement system", "VDA6.3", "information security", "environmental substances"and other special contents, and askthe responsible departments to draw lessons from them and carry out closed-loop rectification for all problems identified.
35 quality management audits were done in total, identifying 243 pointsto be improved1,032 online checks (126,334 items) were done cumulatively, identifying4,386 problems, with a detection rate of 3.4%21 manufacturing process audits (3,598 items) and 21 product audits(643 items) were done
Internal Audit
External Partner of CR MicroProduction linequality management
Reliabilityassessment
Customer service
guarantee
Quality systemmanagement
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CR Micro has won the "PositiveAward"of the Wuxi Mayor's Quality
Award.
2023 CR Micro has won the Xinwu District Chief's Quality Award
CR Shanghua subordinated to it hassuccessfully applied for the AA-level qualitycredit rating in Jiangsu Province
CR Ansheng always has an insight into the real demands of its customers, offers well-designed and customized solutions,controls product quality strictly, provides careful maintenance and after-sales services, and renders all-round high-qualityservices to facilitate the smooth implementation of projects. Win the Best Support Award of Year 2024 by its customerLEN with its professional and efficient services, and the Excellent Supplier Award and the Best Service Team Award by itscustomer CHIPONE, proving its outstanding service capabilities.
ISO 26262 is a globally recognized automotive functional safety standard and one of the thresholds for electronic componentsuppliers to enter the automotive industry. ASIL D stands for the highest level of this standard.Since June 2023, CR Micro has started to build the functional safety process, set up a professional project team to tacklekey problems, integrated the requirements of ISO 26262 standard for chip development throughout the functional safetylife cycle into the design and development process of automotive-grade chips, combined with the quality system, andformed its unique development process of functional safety. In 2024, the Company passed ASIL D ISO 26262 functionalsafety management system certification and achieved an excellent review result. This was an important milestone in thedevelopment of automotive electronics field, marking a new development phase in layout of automotive electronics.
Each factory closely focuses on achieving the target yield, discusses and puts forward a series of control measures such as "continuousyield increase", "process monitoring and early warning upgrading", "intelligent process data augmentation", "high-risk table control", "BGconnection mechanism for major cases", and "zero-defect management", strengthens the basic management of production lines andoffers each customer with reliable products and services. At the same time, improve the production line inspection mechanism, coveringthe entire production process from procurement, process to shipment. Use AOI, microscope, CD strip width meter and film thicknessgauge etc. to control the product inspection strictly.
Implementing Detection Mechanisms
Wafer AOIChip AOIPackaging AOI
Case Study
Case Study
CR Ansheng has won a number of customer awards by following the customer-oriented principle
CR Micro has passed the highest-level ISO26262 functional safety management system certification.
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The Company adheres to the quality policy of "customer focus, prevention first, environmental protection and persistent improving",creates a quality culture of "customer satisfaction, quality first and total involvement", learns and applies the knowledge of overall qualitymanagement, and enhances the staff's quality awareness.Enhancing Awareness of Quality Control
Create aqualityenvironment
Build a lean
culture
Focus on the theme of the National Quality Month,hold a series of quality activities under the themeof "compete for quality, gather all forces and createbrilliance", including a variety of activities such as qualitymanagement knowledge contest, kings of qualitycompetition, quality team evaluation, and staff skillscompetition, and promote the Quality Month in variousforms such as display board, official Weibo account,desktop screensaver, banner and bulletin board for fullcoverage.
Establish the mechanisms for talents selection, training,identification, assessment and incentives and focuson fostering talents in lean. Carry out lean projectcompetitions, and create a continuous improvementenvironment with all staff involved, from aspects ofquality, cost reduction, efficiency, R&D, management andservice. Actively participate in external competitions suchas the National QC, Jiangsu Province Excellent QualityManagement Group, and China Quality Technology andInnovation Achievement Presentation Competition, andwin 2 professional awards and 3 promotion awards.
Conduct training on ESD, lean and quality tools
Hold the first CR Semicon Skills Contest
Promote the quality culture in the hall
Hold the Kings of Quality Competition
The Company continuously optimizes its customer relationship management system, and has established a customer service systemcomposed of sales, quality and technology service teams, and IT systems, etc., to respond to the customers' demands and feedbacks ina timely, quick and efficient manner and to render all-round, multi-dimensional, efficient and fast high-quality services.Optimizing Service System
High-quality customer service is the foundation for CR Micro to establish and maintain the customer relationships of mutual trust. CRMicro always adheres to the principle of customer first. By providing high-quality products and services and continuously improving after-sales service, it safeguards the rights and interests of various customers, improves the service efficiency and experience, and creates agreater value for each customer.
Supplying High-Quality Service
Offer premium services
Assist in tackling key problems on its
own initiative
Popularize product knowledge
Enrich communication channels
Improve service capacity
Customers can have a one-stop and all-round knowledgeof the current yield, online process capability, on-timedelivery rate, complaint handling progress, engineeringdevelopment progress and other information and statusthat they care about.
Hold the joint conferences for quality problem solutionregularly or irregularly, and help them solve the urgentproblems encountered during production.
Semiconductors are widely used in various fields suchas consumer electronics, automobile, and industrialequipment. In combination with product characteristicsand customer demands, the Company popularizes theproduct knowledge more accurately through industryconferences and exhibitions, to improve its productaccessibility.
Through its official website, WeChat official account,email, E-Service system and hotline service, understandthe differential demands of various customers throughcompliant and systematic process service in a timelymanner and solve their problems in a targeted manner.
Our customer service teams are spread across multiple regions and cities such as the Yangtze River Delta, the Chengdu-Chongqing, the Greater Bay Area, and Taiwan, China. For the purpose of better customer service, the Company providesrelevant training for employees on communication skills, product technology information, engineering analysis and solutionthrough a professional training system, to enhance the professional competence of customer service personnel constantly.
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The Company attaches great importance to the protection of customers' rights and interests, adheres to the "customer-focused"serviceand takes customer demands as the guide. Besides normalizing its product and service quality, the Company also offers lean solutions tovarious customers continuously and safeguard their legitimate rights and interests in the following ways, i.e. solving customer complaintsand implementing responsible marketing.
Protecting Customers' Rights and Interests
Carry out online communication with customers through service window on the Company's official website, customer service hotline,email and E-Service system, and keep offline communication with customers by the service team's reception of visitors, customervisiting, regular engineering quality conference, and irregular joint quality conference etc.Expand communication channels
Strictly abide by relevant laws and regulations, formulate and follow privacy protection policies, attach importance to the security ofdata involving customer privacy, implement strict data classification and management strategies, and conduct life cycle managementof sensitive data. Meanwhile, establish a complete data backup and recovery mechanism to ensure data integrity and availability, aswell as the security of customer information. No customer privacy disclosure occurred throughout the Reporting Period.
Protection of customers' privacy
Implement a 24-hour customer complaint response mechanism. With the aid of advanced failure analysis equipment and acomplete IT system, conduct precise analysis on customer failure samples, clarify the failure mechanism and carry out systematicimprovement tracking. For all problems identified in customer complaints, identify the root causes by making use of quality tools suchas "8D problem solving, 5W2H, fishbone diagram, 5MIE"etc., give timely feedback of handling results, formulate rectification plans,and continuously improve to enhance customer satisfaction. Within the Reporting Period, the resolution rate of customer complaintswas 100%, and three cross-functional seminars for customer complaints resolution with over 100 participants were held to promotethe resolution of customer complaint issues and facilitate reference and improvement.
Handle complaints properly
Strictly abide by the laws and regulations related to marketing practices as well as applicable industry norms, truthfully discloseproduct and service information, and strictly prohibit false or misleading publicity. Implement responsible marketing proactively byenriching the channels for potential risk warning.Implement responsible marketing
Carry out satisfaction survey and improvement in the form of single-item scoring and open-ended questions from the aspect ofproduct quality, factory capacity, technological research and development, customer service and management system. Analyzevarious demands to form special improvement projects, designate dedicated personnel to regularly visit customers and inform themof improvement measures and effects, and continuously improve products and services. During the Reporting Period, all businessgroups of the Company conducted the satisfaction survey on 182 key customers. Four business groups have the overall satisfactionabove 92 scores (out of 100 scores).
Carry out satisfaction survey
Develop the strict product quality inspection and product recall procedures, and establish a complete product quality assessmentmanagement system in terms of abnormal product treatment, customer complaints, product recall and rework, and customercompensation handling. Once a quality hazard is found, inform the customer and initiate the recall procedure immediately. Basedon the severity of a quality issue complained about by the customer, define an emergency customer complaint handling process,establish a notification mechanism for significant unusual events, and quickly analyze the root causes by making use of multiplequality tools, to assure the timely and effective handling and resolution of such issue.During the Reporting Period, no large-scale product recall incidents occurred, nor were there any recalls of sold products due tosafety and health issues.
Product recall and withdrawal
The Company has, as a semiconductor company with integrated operation capacities covering the entire IDM industrial chain includingchip design, mask manufacturing, wafer manufacturing, packaging and testing, incorporated brand building into its development strategy,set up a leading organ for the brand leadership action, formulated theMeasures for Administration of Brand Construction, encouraged thesubordinate business groups to focus on fields like power semiconductor, digital-analog hybrid, intelligent sensor and intelligent controlcontinuously, built a diversified brand matrix in various market segments, and promoted brand building deeply and multi-dimensionally.
Promoting Brand Construction
Power Device Business Group
Integrated Circuit Business Group
Packaging/Testing Business GroupFoundry Business Group
Send a recall noticeIPQA tracking measures
End
Recall products by sales/
CQA
Find out suspected/ non-
conforming product
MRB review
Y
N
Defective product recall procedure of CR Micro
China Resources Microelectronics Limited2024 Sustainability Report
Customer ResponsibilityLead Excellence in Quality
Our Actions:
Improve environmental managementTake actions on green productionResponse to climate change
Comprehensive energy consumption per RMB 10,000 of output value (comparable price) was 0.0704 tonsstandard coal equivalent per RMB 10,000.Comprehensive energy consumption per RMB 10,000 of added value (comparable price) was 0.1339tonsstandard coal equivalent per RMB 10,000.Total power generation of the photovoltaic system and green power purchase amounted to 11,832,400 kWhand CO
emissions reduced by 6,588.28 tons cumulatively.Renewable energy consumption accounted for
1.6%.
External agencies were entrusted to conductISO14064 carbon footprint verification over CR Ansheng, CRShanghua, Dongguan Jiequn and such major carbon emission sources.
Energy consumption performance in 2024
Total CO
emission was 590,980.29 tons.CO
emission per RMB 10,000 of output value (income) (comparable price) was 0.4243 tons per RMB 10,000
CO
emission performance in 2024
VOC emission was 39.262 tons, reduced by 39.06% year over year.
Exhaust emission performance in 2024
Comprehensive utilization of general solid waste reached 7,903.44 tons and disposal of hazardous wastereached 5,817.16 tons.Compliance disposal rate of hazardous waste reached100% for three consecutive years.
Performance of hazardous waste disposal in 2024
CR Shanghua won the "Environmental Contribution Award"of Year 2024 for Environmental ProtectionPartnership Project from Xinhu District Government of Wuxi, and was honored with the title of "AdvancedEnterprise in Energy Conservation and Emission Reduction"by the Ecology and Environment Bureau of XinwuDistrict, Wuxi.Awards for energy conservation and emission reduction
Chongqing CR Micro was awarded the title of "National Green Factory"and CR Shanghua was awarded thetitle of "Municipal Green Factory".Construction of green factories
Our Performance:
Co-Create an Eco-Friendly Ecosystem
CR Micro adheres to the policy of sustainability, positively answers the country's call for energyconservation and emission reduction, incorporates the goal of environmental friendliness intoits development strategy, integrates the concepts of resource conservation, pollution preventionand control, and circular economy into the whole process of production and operation, strictlyobserves the bottom line of ecological environment development, and is committed to bringinglong-term value to all stakeholders.
Environmental Responsibility
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CR Micro has constantly improved the environmental management system, established and improved the environmental protectionmanagement system, strengthened the environmental emergency response capabilities, conducted the ecological environmentprotection publicity and training, low-carbon and energy-saving theme activities, implemented green and low-carbon office practices,and fostered a concept of green development.
Improving Environmental Management
The Company standardizes the environmental protection management, establishes and improves the environment managementsystem, and improves the environment management organization and system in strict accordance with theEnvironmental ProtectionLaw of the People's Republic of China.In 2024, all subordinate companies passed the ISO14001 environmental management systemcertification. There were no major defects in the environmental monitoring plans and risk management measures, and no majorenvironmental incidents occurred. There were no environmental violations or criminal cases.
Environmental Management System
In accordance with the Notice on Implementing the Group's Measures forAdministration ofEcological Environment Risk Grading and Classification, 12 companies subordinated to CR Microwere evaluated in terms of ecological environment risk level, ecological environment protectionmanagement and comprehensive risk level. Eight companies subordinated to CR Micro weregiven Class I and four were given Class II ecological environment risk.
Determination of Environmental Risk Levels
Make environmental contingency plans, covering environmental incidents at workshop, companyand society levels, and connect them with the local government's plans closely to ensure timelyresponse and control after an accident occurs.Carry out environmental protection emergency drills. According to its own environmental riskpoints, each factory shall conduct targeted emergency drills and exercises to promptly identifydeficiencies in emergency rescue and make improvements, thereby enhancing responsecapabilities.In 2024, Wuxi DIS updated and replenished its environmental emergency supplies. Over 20onsite response plan drills and 9 environmental hazard inspections were done in factories R1and R2. CR Ansheng invested RMB 9.6 million to build a new 936 m
emergency storage tankand three initial rainwater collection pools with the total capacity of 99 m
within the factory area.
Emergency Response Plan for Environmental Incidents
Enriching Concept of Environmental Protection
Use low-carbon building materials and carry out material minimization design for the office building. Achievenatural lighting and create an environment-friendly light environment at all sides of the building. Promoteintelligent control of HVAC, lighting system and elevators etc. and improve the comprehensive energyutilization efficiency. Explore and develop the utilization of renewable energy such as solar energy and installphotovoltaic facilities on the roof to provide green energy for daily operation of the office building.Advocate power, water and paper saving as well as green travel in daily office work. Continuous promotepaperless office work, reduce the cost of office consumables, and create a low-carbon and environment-friendly environment for green office.
PromoteGreen Office
Organize staff to learn about energy conservation, carbon reduction and environmental protection policiesin conjunction with "Environment Day"and "Energy Conservation Publicity Week". Release environmentalprotection knowledge on official accounts and official website etc. Carry out environmental protectiontraining multi-dimensionally through various channels. Stimulate the staff's enthusiasm for participating inenergy conservation and emission reduction.
Publicize energyconservation andenvironmentalprotection
Encourage more employees to participate in environmental protection, carry out voluntary tree planting and"Yishanxin"clothing recycling activities, and convey the concept of green culture.Pursuegreen publicwelfare
We attach great importance to the possible negative impacts of our production and operation on theenvironment. Throughout the whole process of project development, construction and daily operation, westrictly abide by theLaw of the People's Republic of China on Environmental Impact Assessmentand otherlaws and regulations on environmental and biodiversity protection, take measures to protect biodiversity,minimize the projects' impacts on the ecological environment, and contribute to achieving harmoniouscoexistence between humans and nature. In 2024, the Company carried out inspections and rectificationsthrough self-examination and self-correction, headquarter supervision, and cross-check repeatedly. A total of112 issues related to ecological environment protection were identified and by the end of the year, 102 issueshad been rectified.
Ecological environmental protection
In response to the call of the Central Committee of the Communist Party of China and the Wuxi Governmentfor the protection of the Yangtze River, we take it as our responsibility to promote the ecological environmentprotection of the Yangtze River Basin, adhere to ecological priority and green development, and contribute tothe high-quality development of the Yangtze River Economic Belt.
Water source protection
Protect theecologicalenvironment
Make energy-saving publicity posters
Hold "close to nature"family activities
Learn about ecological environment protection, energy
conservation and carbon reduction
Carry out training on carbon accounting and carbon
footprint certification
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In strict accordance with theEnergy Conservation Law of the People's Republic of China, Measures for the Administration of IndustrialEnergy Conservation and other such laws, regulations and standards, CR Micro incorporates the concepts of energy conservation, pollutionprevention and circular economy into the whole process of production and operation, attaches importance to the minimization, reuse andrecycling of resources, maximizes the reclamation of wastes and the recycling of renewable resources, and strives to achieve a win-winresult for environment and economic benefits.
Taking Actions on Green Production
As the highest management for water resources governance, the Strategy and SustainabilityCommittee of the Board will make overall plans for water resources management strategy andperformance realization, while the EHS Department and various business groups are speciallyresponsible for the implementation of related tasks, promoting water resources managementfrom top to bottom. Meanwhile, incorporate the relevant indicators of water resourcesmanagement into the performance assessment of affairs managers at various company levelsand the factory level, link water resources management with the salary system, and promotethe achievement of water resources management goals.
Water Resource Management
Organizational Structure of Water Resources Management of CR Micro
There is a water resources management subject under thecommittee.Set goals related to water resources management.Break down the action path for water resources managementaccording to the goals set by the committee and promote theimplementation of water resources management by businessgroups.Implement the water resources management measuresaccording to relevant requirements of the EHS Department.
EHS Department of the
Headquarter
Strategy and SustainabilityCommittee of the Board
EHS Department of each
business group
Water Resource ManagementObjectivesProgress in 2024
Wuxi
Annual water withdrawal should be less than
8.7076 million tons.
The actual water intake was 7.3454 million
tonsChongqing
Annual water conservation should reach
500,000 tons.
Annual water conservation should reach
465,000 tons.Dongguan
Annual water withdrawal should be less than
220,000 tons.
The actual water intake was 202,100 tons
The Company has continuously monitored the current status of water resources in the factory operation area and analyzed the rationalityof water use for factory production and operation, possible influence of water withdrawal, scarcity of water resources and physical risks bymaking use of WRI'sAqueduct Water Risk Atlas, WFF's Water Risk Filter, water risk physical level identification and such external tools, toidentify the water source pressure and water consumption risks of all factories.
Medium and high-risk area: Wuxi BaseLow-risk areas Chongqing and Dongguan factories
The Company seeks for new methods of water withdrawal proactively, replaces fresh water withdrawal by collecting rainwater andcondensate and increasing the reuse rate, and reduces the impacts on water resources and environment.
Water Pressure Identification
Seek for Alternative Water Sources
Monitor result
Based on the target of an annual water withdrawal less than 8.7076 million tons inWuxi, set goals of the annual tap water withdrawal less than 4.1662 million tons,
3.581 million tons and 960,400 tons for 6-in, 8-in and the packaging & testing
groups, respectively.Set separate goals
Establish water usage monitoring points in each manufacturing plant and at eachwastewater discharge outlet, conduct water balance test on a regular basis, andcalculate the discharge volumes of tap water, process water, recycled water,wastewater and domestic water within the factory.Strengthen monitoring
Grasp the situations about water flow direction, rate and recycling, analyze whetherthere is any abnormal water usage, and predict the reasonable allocation of watervolume among various water users.
Assessment and allocation
For 6-in and 8-in groups, make emergency response plans for the interruption ofexternal tap water supply and the deterioration of raw tap water quality; build awater storage tank for emergency water supply and keep various production linesrunning stably.
Emergency response
Rainwater and condensateReclaimed WaterRainwater and condensate are precious water resourcesof nature, but they are also easily affected by climate andseasonality. CR Micro asks various affiliated factoriesto analyze the local climatic characteristics, establishthe rainwater and condensate collection and treatmentsystem, find out new sources for process water, andthereby reduce the amount of fresh water withdrawal.
Execute water reuse projects actively. In combinationwith the characteristics of water usage processes,each factory shall establish the reuse water treatmentsystem in the fields of pure water preparation processand production wastewater discharge etc., increase theinternal water resource use and reduce the fresh waterwithdrawal.
Countermeasures
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The Company has constantly improved the production water management system of each factory, set the annual water use target,made the water-saving work plans, and carried out the water-saving renovation project in all production factories. Each business grouphas established the Water Conservation Management System and Water Conservation Management Control Procedure, compiles a listof water conservation projects every year, and improves the reuse rate of water resources by upgrading the water system equipment,collecting and reusing process water and recycling wastewater. In 2024, the reuse rate of water resources was 92.62%, increased by
1.39% than the last year, and 2.0473 million tons of water was saved.
Improve the Efficiency of Water Use
Specific ActionsResultsRecycling of process water from facilities in the parkReuse of DF membrane of grinding wastewater from facilities in the parkReuse of RO concentrated water from water supply station for facilities in the park
Reuse of acid wastewater from facilities in the parkRecycling of process water from facilities 8ARecycling of process water from facilities 8AUF backwash water from facilities 8AReuse of RO concentrated water from facilities 8ARecycling of RO concentrated water from CR Ansheng facilities
148,800 tons were recycled throughout the year41,300 tons were recycled throughout the year264,500 tons were recycled throughout the year83,700 tons were recycled throughout the year966,100 tons were recycled throughout the year14,500 tons were recycled throughout the year106,400 tons were recycled throughout the year
9.29 tons were recycled throughout the year
22,700 tons were recycled throughout the year
Example of major water-saving projects completed in 2024
Wastewater RecyclingResults
Recycling of RO concentrated water from pure water system
Recycling of cleaning process waterReuse of reclaimed water from common acid wastewater
Recycling of grinding wastewaterUF backwash waterCooling tower and scrubber
301,200 tons of water was saved throughout the year1,207,800 tons of water was saved throughout the year83,700 tons of water was saved throughout the year41,300 tons of water was saved throughout the year143,500 tons of water was saved throughout the year269,800 tons of water was saved throughout the year
In accordance with the Environmental ProtectionLaw of the People's Republic of China, Law of the People's Republic of China on thePrevention and Control of Atmospheric Pollution, Law of the People's Republic of China on the Prevention and Control of Water Pollution,Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastesand other related lawsand regulations, the Company normalizes the configuration and routine operation management of environmental protection facilities,and reduces the exhaust emission, wastewater discharge and wastes release in the process of production and operation. In 2024, allsubordinated companies conducted special environmental protection monitoring on wastewater, waste gas, noise and soil etc. and allmonitoring data conformed to the national and local regulations. No any excessive pollutant emission was identified.Strengthen the wastewater management in strict accordance with various discharge standards. Carry out solid and groundwatermonitoring independently, prepare corresponding monitoring reports, and make sure that wastewater discharge complies with laws,regulations and relevant provisions. Build the plant-wide emergency storage tank and initial rainwater collection system, and preventsewage pollution. Carry out comprehensive wastewater treatment, reuse the flushing water, enhance the cascade utilization of water, andimprove the efficiency of wastewater reuse.
By means of ceaselessly improving the waste gas management and implementing the waste gas treatment improvement projects, installcorresponding purification equipment to handle with acid, alkaline and organic waste gas and dust generated during production. Enhancethe emission management of waste gas pollutants and monitor the concentration of purified gas to assure the compliant emission ofvarious air pollutants.
Reducing Pollution Emissions
Wastewater Management
Emission Reduction of Waste Gas
In the Liangxi Road Park of CR Micro Wuxi, an online fluoride monitor was installed at the total dischargeoutlet of industrial wastewater for real-time monitoring of specific pollutants in the semiconductorindustry and assuring their compliant discharge.Chongqing CR Micro leads the wastewater discharged from the acid and alkaline exhaust scrubbersto the fluorine-containing and ammonia-containing wastewater treatment systems respectively, andthen, discharges it to the general acid-alkaline wastewater system. Meanwhile, a general acid-alkalinewastewater reuse system is established to return a part of treated general acid-alkaline wastewater tothe cooling tower.
Dongguan Jiequn and CR Huajinghave installed VOCs online monitor,power consumption monitoringand video monitoring systemsfor production waste gas, andconnected them to the municipalor provincial department platformin real time.
Chongqing CR Micro has built newwaste gas treatment facilities.After washing and activatedcarbon adsorption, unorganizedwaste gas collected from thehazardous waste storage areawill be emitted up to standards.It has been included in thepollutant discharge permit in thethird quarter of 2014 and annualmonitoring will be done.
Runxi Micro raises the exhaustpipe of waste gas to improve thediffusion effect of pollutants andsets a new exhaust outlet for wastegas from plastic sealing, changingit from unorganized emission tothe organized manner.
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In compliance with the Guidelines for thePrevention and Control of Environmental Pollution by Solid Wastes of CR Micro, carry outthe special investigation and rectification on solid wastes in two rounds, identify the transportation and disposal of hazardous wastesand general solid wastes, and achieve strict control over all types of solid wastes. Hold the solid waste management training and EHSmanagement experience exchange meeting, learn about relevant experience and practices, strengthen the compliant treatment andrecycling of solid wastes, and effectively reduce and prevent problems like heavy metal, soil and groundwater pollution caused byimproper disposal of hazardous wastes. By the end of 2024, the comprehensive utilization of general solid wastes had reached 7,903.44tons and the disposal of hazardous wastes had reached 5,817.16 tons. All general solid wastes and hazardous wastes had been disposedin a legitimate and compliant manner.In 2024, the solid wastes disposal management platform of CR Micro was established, developed from the full-process management ofsludge disposal and gradually expanded to the disposal processes for other general solid wastes and hazardous wastes. CR Shanghua, CRMicro Wuxi and CR Ansheng have achieved process monitoring of sludge disposal through this system and plan to carry out the second-phase development in 2025 and to expand to the full-process monitoring of hazardous waste disposal.
Various subordinated companies are encouraged to establish a complete hazardouswaste management system, maintain the detailed hazardous waste managementledgers, and normalize the collection and storage of hazardous wastes.Seek cooperation with professional agencies for hazardous waste treatment and signthe agreements for compliant disposal with them to assure 100% compliant disposalof hazardous wastes.Build a new dedicated warehouse for general solid wastes and perform strict controlin all aspects from generation, collection, internal transfer, storage, transportation,utilization to treatment of solid wastes.Strengthen the qualification and technical competence review of those agenciesundertaking the disposal of solid wastes, check the introduction of new manufacturersstrictly, and carry out the car-following and on-site audits over the existing partners ona regular basis.
Waste Disposal
The Company proactively promotes the noise prevention and control, and performs strict control over noise generated in the productionpark. Give priority to low-noise equipment and facilities, eliminating noise from the source. Replace or eliminate high-noise equipmentand facilities in a timely manner and strengthen the spot check and maintenance of noise protection facilities, to assure compliant noiseemission.
Noise Prevention and Control
Make theOverall Plan for Green Factory Construction of CR Micro, defining the guidelines, operating principles and objectives, and setup the leading and working groups, to implement the tasks like energy conservation, emission reduction and green factory constructionlevel by level. In 2024, Chongqing CR Micro was awarded the title of "National Green Factory"and CR Shanghua was awarded the title of"Municipal Green Factory".In addition, CR Ansheng and CR Shanghua were included in the list of mandatory cleaner production audit in Jiangsu Province andsuccessfully passed the expert review and acceptance by the Ecology and Environment Bureau.
Build Green Factories
Treatmentand disposalof hazardouswastes
Treatment and
disposal ofnon-hazardous
wastes
In the closed-loop process of product design, manufacturing, use, scrapping and reuse, Chongqing CR Micro alwaysfollows the green concept and ceaselessly delivers safe, environment-friendly and high-quality products with low energyconsumption, low pollutant emissions, low toxicity and hazard, easy recycling and reuse. In 2024, it was awarded the titlesof "National Green Factory"and "Zero Waste Factory in Chongqing".
Focus on green manufacturing and strive to become "green factory"
CR Shanghua has formulated 10 zero-/ low-costand medium-/ high-cost plans for clean productionincludingBOE Release Process Optimization.After implementation, it can save 2,646,424 kWhelectricity,1.65t photoresist,3.768t isopropylalcohol and 42t ammonia solution every year.
CR Ansheng has formulated two clean productionplans, namely "Energy-saving Transformationof Matched Oil Pump for Surface TreatmentEquipment"and "Equipment and SoftwareUpgrading and Transformation for Grinding andScratching Processes". After implementation, itis estimated that 47,088 kWh electricity will besaved annually, the product yield will increase from
96.14% to 96.33%, and material costs amounting
to RMB 439,200 will be reduced every year.
Make rules and regulations to restrain the suppliers' behavior strictly and make the entire supply chain greenfrom auditing, selection, quality control and social responsibility performance.Ask all suppliers to use raw materials and packages free from prohibited hazardous substances in China andto provide the corresponding monitoring reports.Establish the ISO14001 environmental management system, and use low-toxic and low-pollution rawmaterials during the product design stage.The Company uses low-pollution and low-hazard materials for the packaging of finished products, and uses40,000 packing boxes approximately every year.Raw materials and products are moved by new energy trucks mostly and a few fuel vehicles that meet ChinaV emission standards or above.
GreenprocurementGreen rawmaterialsGreendesignGreenpackaging
Greentransportation
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With the increasingly severe consequences of global climate change, everybody agrees that we should mitigate and adapt to climatechange. Deeply recognizing the importance of climate change mitigation for the world and itself, CR Micro has taken a series of measuresunder the climate change response framework according to the disclosure framework and suggestions for tackling climate change in theGuide No.13 for Self-Regulatory Supervision on Listed Companies of the SSE - Compilation of Sustainability Reports, from the followingfour aspects, governance, strategy, risk & opportunity management, indicators and goals, so as to provide better support for its climatechange decision-making and response strategies and continuously enhance its climate change adaptability and toughness.
Response to Climate Change
CR Micro has incorporated the responsibility of climate change management into all levels of the sustainability governance architecture,improved the management system for climate change response, strengthened the organizational guarantee for its carbon emissionmanagement, and promoted the implementation of climate change response strategies level by level.The Strategy and Sustainability Committee will make overall arrangements for energy management, and establish complete and effectiveenergy policies, performance targets and energy management processes and systems. All major carbon emitters subordinated to theCompany have established a working group for carbon peaking and carbon neutrality, given consideration to climate change in corporategovernance system and routine production and operation, and promoted the climate change response in an orderly manner. By the endof 2024, all wafer manufacturer subordinated to the Company had passed the ISO50001 energy management system certification.
Guided by the target of "carbon peaking and carbon neutrality", CR Micro has, as a leading enterprise in the semiconductor industry, beenfully promoting the green and low-carbon development of the full industry chain by ceaselessly optimizing the carbon managementsystem, defining key points for carbon emission management, enhancing the carbon emission management capabilities, creating low-carbon products, implementing carbon emission tasks and deploying clean energy; and moreover, been striving to achieve the goal of"holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit thetemperature increase to 1.5°C above pre-industrial levels"in Paris Agreement.
Governance
Climate change control framework of CR Micro
Strategy
Strategy and Sustainability Committee
Leading Group for Carbon Peaking and CarbonNeutralityMajor carbon emitters subordinated to theCompany have established a working group forcarbon peaking and carbon neutrality in Wuxi,Chongqing, Shenzhen and Dongguan etc.
Decision-making LevelLeadership
Execution Level
Strategic focuses of CR Micro for climate and carbon neutralityOptimize the management system
Develop theCarbon Peaking Action Plan of CR Micro, Carbon Peaking Work Plan of CR Micro in 2024, Measures for theAdministration of Carbon Emission of CR Micro and Energy Conservation, Carbon Reduction and Carbon ManagementProcedures, and define the practical and effective strategic paths and implementation plans for climate change response in ascientific and systematic way.Define the key points for management
The Company will give priority to "promoting energy conservation and carbon reduction throughout all processes, enhancingcarbon emission management capabilities, improving energy recycling and reuse capabilities, enhancing resource conservationcapabilities, promoting green and low-carbon actions of all employees, and fostering carbon neutrality innovation cooperationaction projects"in medium and long term.Create low-carbon productsBesides creation of low-carbon products and increase in their market share, drive the value chain ecosystem to achieve carbonneutrality from design, manufacturing, sales, use and recycling, through the upgrading of green supply chains, research anddevelopment of low-carbon technologies and products, analysis and management of carbon emissions throughout the lifecycle of products.Carbon emission tasks
Carbon footprint
verificationCarbon AssetManagementCarbon footprint
certification
In 2024, CR Ansheng, CR Shanghua, Dongguan Jiequn and other major carbon emitters entrustedthe external agencies to carry out the ISO14064 carbon footprint verification and obtained thecertificates. CR Micro plans to conduct carbon accounting over major emitters in 2026.Two subsidiaries, Chongqing CR Micro and CR Semicon, are incorporated into the local carbonemission trading market for management. In 2024, CR Semicon purchased 1,178t carbonemission quotas shortage and promoted the carbon emission compliance.In response to the market demands from various brand owners and suppliers for the carbonfootprint of products, CR Shanghua has carried out ISO14067 carbon footprint certification for an8-in wafer.
Deploy clean energy
Accelerate the use of green power, strive to increase the use ratio of clean energy, and achieve carbon and emission reductionduring production and operation.
CR Shanghua, CR Ansheng andCR Micro IC have installed thedistributed photovoltaic systemson factory rooftops, carports andother areas, generating a total of1,832,400 kWh electricity in 2024.
Increase the generation andconsumption of photovoltaic power
Purchase green power
Increase the use ratio ofgreen powerThe sum of electric power generatedby photovoltaic systems and greenpower purchased was 11,832,400kWh, cumulatively reducing CO
emissions by 6,588.28 tons,accounting for 1.6%, and offering astrong support to factories to reducecarbon emission intensity.
Purchase 10 million kWh greenpower, further reducing theGHG emissions such as carbondioxide.
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Physical risks
Acute risk
Extreme weather(typhoon, heavyrain, flood, etc.) ornatural disasterscaused by climatechange haveincreased
Premises in Wuxi, Shanghai,Shenzhen and such places arevulnerable to extreme weathersuch as typhoon, which maycause power outage and floodingetc. and interrupt the operationof wafer fabrication plant orlead to work safety incidents,increasing the operation costs.Premises in Wuxi encounterthe risk of drought at mediumto high levels. Drought can leadto a shortage of water supply.In this case, water resourcemanagement will becomestricter, cost for water use will beincreased, and water resourcesupply will become insufficient,raising the operating costs.Production capacity is decreaseddue to extreme weather, suchas transportation difficulties andsupply chain disruptions, leadingto revenue decrease.Global warming will increase therisks of river flood and flash flood,cause damage to the Company'spremises, factory infrastructuresand related facilities andequipment, or lead to an increasein capital costs.
Establish and improve theemergency response plansfor sudden environmentalincidents and productionsafety accidents, andidentify and review possiblephysical risks every year.Establish responsemechanisms andemergency materialreserves in factory areaswith physical risks, andconduct regular emergencydrills to enhance emergencyresponse capabilities.Based on water pressureidentification, carryout water resourcesmanagement, reduce theconsumption of fresh waterresources and improvethe utilization efficiencyof water resources bydiversified water withdrawal,technological innovation,and wastewater reuse etc.
Chronic risk
Sustainable hightemperature andsea level rise causedby climate change
Transformational
risks
Policy andlegal risks
Related nationalpolicies andrequirementschanged in theprocess of achievingthe "carbonpeaking and carbonneutrality"goalsHigher pricing forGHG emissionsStricter emissionreporting obligationsMandatoryrequirements andregulations forexisting productsand servicesLitigation andpenalty risks
National and local laws andregulations and new policies mayimpose stricter requirementsand supervision on factories andproducts, which will increase thecompliance costs from operation.Failure to meet regulatoryrequirements may lead torisks of litigation and penalty,thereby reducing the demand forproducts and services.
Regularly identify changesin new laws and policies,abide by laws, regulationsand standards strictly,improve systems andmanagement mechanisms,and respond to compliancerequirements proactively.Promote the energyconservation and emissionreduction of all projects andthe refined managementof energy, reduce andcontrol pollutant emissionsthroughout the process,meet emission standards,and minimize the impact onenvironment.
Carry out carbon reduction training
Invite T?V S?D to give lectures on the ISO14064 system standards to carbon management personnel of various manufacturers.Explain the latest policy trends in the"carbon peaking and carbon neutrality"market, system standard requirements, calculationof direct and indirect emissions, and other knowledge and skills to enhance the awareness and professional capabilities ofcarbon management personnel.
In response to the country's call for new energy constructionand to accelerate the large-scale application of photovoltaicpower generation in China, Wuxi DIS and China ResourcesEnergy Services Co., Ltd. have collaborated to develop adistributed photovoltaic project on the factory roof andbuild a grid-connected photovoltaic power station with thetotal scale of 1.8969 MWp. It passed the final acceptanceand was successfully connected to the grid on December10th. By the end of 2024, the photovoltaic power stationhad generated 82,339 kWh electric power. It is expectedto generate 2 million kWh electric power annually, savingelectricity charges of RMB 1 million approximately.
Deploy rooftop photovoltaic systems and light up a new path of green power
The Company incorporates climate-related risk identification, assessment and management into its overall risk management process,and performs climate-related physical and transition risk assessment and management in project investment, product design &development, material procurement and business operation. In 2024, identify potential climate change risks and opportunities that mayaffect business and operation, develop a list of climate change risks and opportunities, and achieve the zero-carbon commitment.
Climate Risk and Opportunity Management
Climate change risk matrix
Risk categoryIdentification resultFinancial impactCountermeasures
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Resourceefficiency
Urge various companies tochoose those productionand distribution processes ofhigher efficiency.Use recycled products.Reduce water usage andconsumption.
Improve the efficiency of resourceutilization and reduce theoperating costs.Enhance the production capacity,thereby increasing income.
Carry out the energy-savingtransformation projects forproduction and operation,promote the construction ofintelligent, green and smartfactories, and further improvethe efficiency of resourceutilization.Save water, electricity andpaper, and choose green officeand green operation measures.
Energyefficiency
Urge various companies topay more attention to energyefficiency and drive up thedemand for energy-savingtechnologies and services.The transition of globalenergy structure to cleanenergy offers an opportunityto invest in solar energy andother renewable energysources.
Obtain a return on investment inlow-emission technologies.Reduce operating costs by low-cost emission reduction methods.Reduce GHG emissions and lowerdown the sensitivity to changes incarbon emission cost.More use of low-emission/ cleanenergy in operating activities isconducive to reducing the risk offuture rise in energy price.
Cut the use of traditional fossilenergy and lower the traditionalenergy costs.Set targets for the use ofrenewable power, promote theconstruction of green powerparks and rooftop photovoltaicsystems, expand the purchaseof green power, and increasethe proportion of renewableenergy used in manufacturingand office processes.
Productsand
services
The introduction of "carbonpeaking and carbonneutrality" and the launchof low-carbon products andinnovative solutions give riseto new business models.Clean technology promotesthe research, developmentand innovation of newproducts or services.Under the background ofthe low-carbon economictransformation, the demandsof customers and consumersfor green and low-powerproducts are constantlyincreasing.
Low-carbon products andinnovative solutions of theCompany meet new marketdemands, creating growthpotential for businessperformance.Provide new solutions that meetthe demands to increase revenue.Develop products with lowerpower consumption and higherefficiency and cater to the shift inconsumer preferences, to improveour competitiveness and increaserevenue.
Increase investment in theresearch and development oflow-carbon products, promotetechnological innovationand upgrading, continuouslyenhance the environmentalfriendliness of products,and provide customers withdiversified, reliable and efficientlow-carbon products andsolutions.Use green technologies andgreen raw materials, reducethe generation of hazardoussubstances and minimize theimpacts on environment.
CategoryClimate opportunitiesFinancial impactMeasuresClimate change opportunity matrix
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Risk categoryIdentification resultFinancial impactCountermeasures
Transformationalrisks
Technologyrisks
Low-emissionalternatives to existingproducts and servicesInvestment in newtechnology failedCost for switching to low-emission technologies
New technologies relating tothe clean energy has led to areduction in our existing business,products and services.Research and developmentexpenditure on innovation andalternative technologies hasincreased.Fund input for technologicaldevelopment has increased.
Persist in technologicalinnovation, optimization andupgrading, and continueto make low-carbon andefficient products.Promote the constructionof green factories,enhance productionefficiency, implementenergy conservation andconsumption reductionmeasures, and reduce theunit energy consumption ofproducts.Seek cooperation withthird parties on energyconservation and low-carbon development,enhance the low-carboncapabilities, and reducethe cost of low-carbontechnology transformation.
Market risks
Consumer preferenceschangedCost of raw materialsincreased
Customers and consumersnow pay more attention tothe sustainability of products.The Company’s operationwill be affected if the productsand services provided cannotrespond to the changes in marketenvironment in an effective andtimely manner.The increase in cost of rawmaterials such as silicon wafer,photoresist and packagingmaterials used in the research,development and productionprocesses will lead to a reductionof profits if the product pricecannot be raised accordingly.
Pay close attention tothe variation trend ofcustomers’ consumptionbehaviors and carry outproduct upgrades accordingto the customers demand.Develop the sustainable andgreen supply chains.
Reputation
risks
There are stricterrequirements forenvironmentalinformation disclosureapplicable in the country,region, exchange andcapital market.Failure to respondto the stakeholdersexpectations in a timelymanner increases theirconcerns or leads tonegative feedback.
Poor management of climateresponse actions and inadequatetransparency of informationdisclosure will lead to risks ofcompliance.Failure to respond to thestakeholders’ expectationsleads to a decrease in financingchannels.
Based on the internationallyand domestically recognizedframework, show theclimate change responseactions of the Companyin combination with itspractical situations.Respond to thestakeholders’expectations for low-carbon development anddisclose the Company’sclimate information throughsustainability report andofficial account.
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Market
A sustained sound growthcan be achieved in thesemiconductor industry.Those challenges broughtabout by climate changecan be changed intogrowth drivers throughtechnological innovation,market expansion and policysupport.
New green technologies and greenproducts can help to explore andoccupy new markets, increasingthe potential for performancegrowth.
Develop industry-leading keycore products such as powerdevice and IPM modules, andprovide competitive externalbusiness output models.Focus on automotive powersemiconductor, MCU andsensor products, and providea complete set of solutions formultiple application scenariosof intelligent new energyvehicles.
Adaptability
Invest in renewable energyprojects and take energy-saving measures.Build a green and low-carbon ecosystem togetherwith stakeholders.
Enhance the supply chain reliabilityand operation capacity, strengthencollaboration between upstreamand downstream, and expand therevenue sources of the Company.Assure prudent operation throughnew products and services toincrease revenue.
Improve the efficiency ofresource utilization, reduce thedependability on environment,and enhance its adaptability toclimate change.Carry out technologicalinnovation and upgrading, anddeliver green and low-carbonproducts and solutions.Improve the risk managementcapabilities of the supply chainthrough the life-cycle suppliermanagement platform.
Indicators and Goals
Energy and carbon emission management
Greenhouse gas emission management
GHG emissions of CR Micro in 2024:
Set scientific goalsThe Carbon Peaking Action Plan of CR Micro clearly defines the quantitative objectives for energy consumption andCO
emission reduction, which can be used to track and evaluate the progress of climate actions, effectively supportthe realization of climate strategies and truly ensure the high-quality and sustainability of the Company. In 2025, thecomparable comprehensive energy consumption per RMB 10,000 of output value will decrease by 10% and the comparablecomprehensive energy consumption per RMB 10,000 of added value will decrease by 8%, compared with 2020.
Indicator nameUnitBase in 2020
Goals for 2024Decrease compared with 2020
Goals for 2025Comparable comprehensive energy
consumption per RMB 10,000 of output
value
tce/ 10,000 yuan
0.09358%10%Comparable comprehensive energyconsumption per RMB 10,000 of added
value
tce/ 10,000 yuan
0.18116.4%8%
CO
emission intensitytons/10,000 yuan
0.65428%10%
Achievement of goals
In 2024, three key indicators i.e. comparable comprehensive energy consumption per RMB 10,000 of output value,comparable comprehensive energy consumption per RMB 10,000 of added value, CO
emission intensity, reached 118.14%,
121.00% and 124.58% of the target values respectively. The Company made certain achievements in carbon emission
reduction.
Indicator nameUnitBase in 2020Target valueAchievementComparable comprehensive energyconsumption per RMB 10,000 of
output value
tce/ 10,000 yuan
0.07040.0860118.14%
Comparable comprehensive energyconsumption per RMB 10,000 of
added value
tce/ 10,000 yuan
0.13390.1695121.00%CO
emission intensitytons/10,000 yuan
0.42430.5626124.58%
Unit20242023
Scope 1 GHG EmissionstCO
e166,802.81170,966.29Scope 2 GHG EmissionstCO
e424,177.48385,880.41
China Resources Microelectronics Limited2024 Sustainability ReportCategoryClimate opportunitiesFinancial impactMeasures
Environmental ResponsibilityCo-Create an Eco-Friendly Ecosystem
7271
China Resources Microelectronics Limited2024 Sustainability Report
3,902 new employeesTotal investment in employee training was RMB6,891,469, with 100% trainingcoverage for employees.Female management (direct managers of group departments and directly-affiliated companies)accounts for15%.100% labor contract signing, 100% social insurance coverage and 100% health
check-up coverageInvestment in occupational health and safety was RMB7,861,100 and achieved 0occupational disease accidents/ incidents.
Our Actions:
Employment and benefitsTraining and developmentCare and health
Employee ResponsibilityMake a Remarkable Life
Make a RemarkableLife
CR Micro is committed to creating a fair, transparent, united, harmonious and vibrant workatmosphere, assuring fair employment and legally safeguarding the staff's rights and interests.The Company will conduct a serious of training, offer a number of opportunities for growth, putemployee care into practice, create a colorful office life and promote the virtuous cycle wheretalents lead development and also be attracted by the Company.
Employee Responsibility
Our Performance:
7473
Employment and BenefitsIn strict accordance with the Labor Law of the People's Republic of China, Labor Contract Law of the People's Republic of China and otherrelated laws and regulations, CR Micro strictly follows the legitimate employment, offers fair employment opportunities, optimizes thecompensation and welfare systems, improves the democratic management system, and creates a work atmosphere featuring equalopportunities, sound system and employee participation.Follow the basic principles of equal employment constantly and formulate the Measures for the Management of Employee Recruitment,Measures for the Employment and Management of Disabled Employees and other systems. Establish diversified recruitment channelsof equal opportunities based on the post-fit criterion, and perform a two-way choice system according to the practical situations of theCompany as well as the educational and professional background and the capabilities of the applicants. Strictly prohibit all discriminatoryacts relating to age, gender, region, ethnicity, customs, religion and physical disabilities during recruitment and promotion. Use of childlabor and forced labor is strictly forbidden. Offer equal employment and development opportunities to everyone and enhance theinclusiveness of work atmosphere.In 2024, the number of outsourcing labors did not exceed 10% of total workforce of the Company and complied with the Labor ContractLaw of the People's Republic of China, Interim Provisions on Labor Dispatch and other related laws and regulations. Outsourcing laborswere paid the same as other categories of employees for the same work and their legitimate rights and interests were safeguarded.
Equal and Compliant Employment
MaleFemale
3,868
64%6,888
30 years old and below41 to 50 years old51 years old or above31 to 40 years old
40%4,29219%2,0443%
38%4,046
Master's degree or aboveBachelor's DegreeCollege degreeBelow associate degree
35%3,7236%
33%3,598
26%2,745
Gender structureAge structureEducational Background
3,902new employees
Strengthen communication with the Disabled Persons' Federation of Wuxi, encourage the use of the disabled as a facilitatorrole and promote the recruitment of the disabled in various departments. There are totally46disabled employees.100% labor contract signing, 100%social insurance coverage and 100%health check-up coverage
Conduct an employee satisfaction survey, 80%satisfaction with the canteen and 92.9%satisfaction with thedormitory.
Total number of in-service staff
10,756people
Percentage of female employees
35.96%
As of the end of 2024, the Company had:
36%
The Company makes the compensation structure fairer and more reasonable, offers more benefits, seeks for scientific and preciseperformance evaluation, and creates a comprehensive and multi-dimension benefit system for the staff.
Take employee participation as an important part of promoting scientific and transparent decision-making. Encourage employeesto manage themselves through trade union, participation in meetings, and feedback. Encourage more employees to take part in theintroduction of major policies, optimization of management methods and other decisions relating to them closely. Keep the channels ofdemocratic communication smooth. Encourage the management to conduct adequate two-way communication in daily work and listento the opinions and suggestions of employees. At the end of 2024, the Company held the first workers' congress, further strengtheneddemocratic management and safeguarded the democratic management rights of the staff.
Compensation and Benefits System
Promoting Democratic Construction
At the "New Quality Workplace · Reconstructing Growth"2024 China AnnualBest Employer Awards Ceremony, we were awarded the "Most New-QualitySpirit Employer"prize, proving that our corporate spirit and developmentpotential had been recognized by the industry.
Provide employees with legal benefits such associal insurance, housing provident fund, paidleave, maternity leave and breastfeeding leave.Purchase commercial insurance and offer otheradditional benefits like working meals, commuterbus, heatstroke prevention, health check-up,communication and staff activities.
Formulate the Measures for Management ofCompensation and Benefits. Implement the systemof equal remuneration for men and women workersfor work of equal value. Giving comprehensiveconsideration to three major factors i.e. companybenefits, individual performance, internal andexternal fairness, conduct job evaluation andcompensation analysis carefully and promote thecompensation management in a scientific way.
Properly handle labor disputes and keep thechannel for accepting employee complaintssmooth, including visits, letters, phone calls andemails. Keep the employees' complaints strictlyconfidential, prevent leakage of personal privacyand safeguard the employees' right to appeal.
Optimize the assessment and evaluation system.Assess and evaluate the Company's managementteams, direct managers and employees accordingto different levels and categories, and use theannual assessment results as an important basisfor employee development. Employees may givefeedback and appeal if they experience unfairtreatment during the performance evaluation. In2024, a market-oriented assessment was done overdirect managers from the subordinated companies,and there was no performance feedback or appeal.
Compensation management
Performance evaluationRight to appeal
Welfare
China Resources Microelectronics Limited2024 Sustainability Report
Employee ResponsibilityMake a Remarkable Life
7675
According to the requirements of "rejuvenation, professionalization, marketization and internationalization", CR Micro focuses onemployees' capacity training and talents cultivation, provides employees with clear career prospects and broad space for development,and helps them grow and succeed.
Training and Development
To meet the requirements of strategic development and employee growth,the Company has optimized the post and rank settings and continuouslyimproved the dual-channel system i.e. management and professionaldevelopment channels. It has completed the Rank System of 2024, coveringthe headquarter, business group, cost center and other levels; opened upthe inter-organizational cross-sequence channel for talent development;supported the integrated IDM operation and achieved a win-win result forboth employees and the Company. In 2024, the promotion rate of leadersand employees reached a record high throughout the year, and the retentionrate of employees also reached a record high.
The Company attaches great importance to talent cultivation, and based on the demand for talents and the self-development needsof employees, improves the talent cultivation and development system. Centering on the construction of management and operationtalents, S&T talents, and skilled talents, we will develop distinctive training programs, establish a scientific and efficient all-staff learningand training system, provide employees with fair and diversified training courses covering knowledge, skills, and qualities, and ensure thedevelopment of talent teams.Meanwhile, the Company will encourage employees to keep learning and improving themselves and to enhance their academicqualification and technical capabilities through theAdministrative Measures for Supporting on-the-job Postgraduates or above, Notice onSupporting Employees in Applying for Various Professional and Technical Titles and Vocational Qualifications (Skill Levels).
Smooth Development Channels
Improving Training System
Perform the leadership training program by stages at four levels, i.e. first-linemanagers, middle managers, direct managers from CR Micro and direct managersfrom the Group.By virtue of the learning platforms of the Group and SASAC, conduct the seniormanagement training and appoint the direct managers to join in the seniormanagement training and seminars organized by the Group.Determine key points according to different categories and levels. Lay emphasison the cultivation of young and promising middle management and launch twoflagship training programs, "Sailing"and "Setting sail", to provide talent support forachieving strategic goals.
Cultivation ofmanagement andoperation talentteams
The Company launched the "Setting Sail"Phase II, a middle management training program.
The Company participated in "Future Star", theGroup's boot camp of 2024.
The Company launched the "Sailing"Phase II, amiddle management training program.
Strengthen the cultivation of young S&T talents. Build a team of outstanding engineers whoare good at analyzing and solving problems, as well as a research and development team thatis passionate, has strong execution ability and dares to innovate.Build a channel for S&T talents to enhance their academic qualifications, and create acomprehensive path from high school to junior college, junior college to bachelor's degree,bachelor's degree to master's degree, and master's degree to doctoral degree.Build a platform for technical exchange and sharing. Through the expert forum of theHeadquarter and the engineer forums of business groups, promote cross-departmentaland inter-organizational exchanges and broaden the professional fields of technicalpersonnel.We attach great importance to raising the innovation awareness of all staff. Through theInnovation Workshop project, we provide training in innovative thinking, management,R&D tools to help various S&T employees master innovation tools and methods.
Cultivation of S&T
talent team
Enhance the technical precision of skilled talents and expand their technical breadth. Carryout the multi-skilled worker project, core alliance training course, vocational qualificationcertification, and key position capability improvement project.Help senior employees become multi-skilled workers, enhance the skill variety of front-line employees, and broaden the development paths for skilled employees.Cooperate with local vocational schools and cultivate front-line technical and skilledtalents through internal and external channels.Organize skills competitions and facilitate the standardization and normalization of postoperation skills. Outstanding skilled talents have been awarded the title of "May DayInnovation Expert in Wuxi".
Cultivation of
skilledtalent team
China Resources Microelectronics Limited2024 Sustainability Report
CR Micro dual promotion channels
Employee ResponsibilityMake a Remarkable Life
7877
The Company attaches great importance to employee motivation, optimizes theMeasures for Performance Appraisal and IncentiveManagement of CR Micro, makes the specialized appraisal and incentive plans by category and level, motivates technical R&D talents andkey projects, seeks equity incentives to attract and retain talents, and enhances the enthusiasm and stability of the talent teams.
CR Micro strives for a happy life for its employees and conducts a variety of cultural and sports activities to achieve a balance between theirwork and life. Targeted at the "difficult and urgent"issues of various employees, carry out the employee care practices multi-dimensionallyand put humanistic care into practice. Safeguard the occupational health and benefits of employees, enhance their health awareness andcapacities for prevention of occupational diseases, and increase their sense of happiness, belonging and cohesion.
Improving Incentive Mechanism
Incentive system of CR Micro
Perform the "one-to-one match"between performance and compensation, and further enhance the incentives by improvingthe compensation management mechanism, overall performance and project assessment management system, andrelevant sales and R&D incentive systems.
Performance-based compensation
Formulate theSeveral Policies on Promoting Scientific and Technological Innovation, Measures for Incentives for S&TAchievements, and Management Measures for the Contribution Award of Technology Development Projects, and furtherstimulate the enthusiasm and vitality of employees for innovation and entrepreneurship from three aspects: supporting S&Tinnovation, motivating the expansion of sales source, and supporting strategic expansion.
Strengthen technology incentives
Make the equity incentive plans to motivate the management and backbones to concern about the shareholders' interestsand improve the Company's performance. In the first half of 2024, the first vesting of the Company's first equity incentiveplan was completed, including the filing with the tax/ foreign exchange administration for equity incentives and the unlockingand exercise of rights for a total of 1,126 incentive objects.
Implement equity incentives
Care and Health
The Company organises a variety of cultural and sports activities for employees to createa relaxed and enjoyable working atmosphere. Established a number of clubs, includingrecitation club, e-sports club, ball club, and swimming club, using the trade union base,and conducted a variety of activities such as recitation performance, e-sports competition,billiards match, and swimming competition. Organise activities such as outdoor fishing,retro-style study tour, music festival and the fourth anniversary of the company's listingon the stock exchange, so that employees can enjoy a happy time together.
Conducting Diversified Activities
Organize the "Honor of Kings"competition.
Hold the "Huarun Core"badminton team competition.
Hold the first fun sports meeting.
Carry out the "5km Gallery"hiking activity
along the Liangxi River.
Hold a youth music festival.
Organize a theme activity of reading classics together.
China Resources Microelectronics Limited2024 Sustainability Report
Employee ResponsibilityMake a Remarkable Life
8079
The Company has established the female employee committees at all levels of trade unions. Focusing on "highlighting the strength offemale employees and serving their needs", ceaselessly enhance the care for female employees in terms of career, health and life, and putthe care for women into practice, forming values of caring for, protecting and respecting female employees.
Putting Employee Care into PracticeCaring for female employees
In line with the characteristics of the semiconductor industry, CR Micro has launched the "3+X"initiative to gather thestrength of women and jointly create a happy home. Based on "3"elements (growth, guarantee and care), promote bytaking "X"as the industry characteristics (mainly special co-construction, specialized services, featured activities, andcharacteristic sharing).
Case StudyUnite the strength of women and create a "3+X"happy home together
GrowthCarry out a series of activities under the theme of "Women's Hearts to the Party, Forging Ahead ona New Journey"and build a sharing platform for female S&T workers.Launch the Dream Fulfillment Program to help female employees realize their dreams of attendinguniversity. Encourage female employees to apply for professional titles and patents. Carry outspecial reading activities for female employees.Guarantee
Carry out various legal publicity and consultation activities among female employees.The coverage rate of free commercial insurance for female employees is 100%. Implement a three-year health mutual assistance program for female employees.
CareCarry out the activity of "I Do Substantive Work to Help Female Employees".Promote the construction of the baby care room.Carry out the "breast and cervical cancer screening"for free, with 100% coverage.
Carry out the free medical consultation for femaleemployees together with the Municipal Maternal and Child
Health Hospital.
Hold a Mother's Day Cake DIY Activity.
Specialized services safeguard her happiness
The Company are the first member of the "Anxin Station"in Wuxi, rendering seven types ofservices for female employees, including free medical consultation by expert teams, healthand public welfare salon, and special appointment for expert clinics, and promoting the one-stop direct access to professional health services.Featured activities create her happiness
Organize female employees to carry out parent-child activities such as baking, painting, andMother's Day Cake DIY.Characteristic sharing realizes her sharing
Organize and conduct the "Chip Future"dream fulfillment sharing session.
China Resources Microelectronics Limited2024 Sustainability Report
Special co-construction maintains her health.We have carried out co-construction activities with the Maternal and Child Health Hospital, theTraditional Chinese Medicine Hospital, and Aier Eye Hospital etc., to safeguard the health offemale employees.
Employee ResponsibilityMake a Remarkable Life
8281
Case StudyThe Company has formulated theGuidelines for Employee Care of CR Micro, established a regular employee assistance mechanism, anddelivered frequent consolations for employees' difficulties, high temperature and festivals. In 2024, we held a series of consolations suchas inspiring warmth in winter, delivering coolness in summer, and giving assistance for sick and disadvantaged employees, covering over800 people and more than 130 households.
Assist employees in difficulty.
Carry out the activity "Spring Festival Consolation and Visit"Carry out the activity "Delivering Coolness in Summer".
In accordance with theLaw of the People's Republic of China on the Prevention and Control of Occupational Diseasesand other relatedlaws and regulations, the Company has established the occupational health and safety management system covering the entirebusiness process and all staff. Identify, assess and monitor health and safety hazards and sources and prepare a list of health andsafety control measures for positions exposed to acid mist, acid anhydride, noise and radiation. Make the occupational health records,provide differentiated occupational health check-ups, conduct health check-ups for both new and departing employees, and carry outoccupational health check-ups on a fixed monthly basis throughout the year. Popularize knowledge on the prevention and control ofoccupational diseases and carry out occupational health education and training covering all staff. By the end of 2024, the Company hascompleted the qualification certification of ISO 45001 occupational health and safety management system and achieved the goal of zerooccupational disease accidents/ incidents.
Caring About the Health of Employees
In 2024, the Integrated Circuit Business Group established and improved the occupational health and safety managementsystem, revised the relevant occupational health documents, and protected the physical health of employees throughestablishing a list, identifying occupational hazards and conducting risk assessments, determining risk point controlmeasures, and performing labor protection, to create a safe working environment for employees. During the ReportingPeriod, the goal of "zero"occupational disease accidents/ incidents was achieved, and no positions with potentialoccupational disease hazards were added.
Take multiple measures to promote safety and persevere in protecting health.
The Company organized its employees to participate inthe Wuxi Occupational Health Expert Skills Competition.
Explain to the employees the relevant knowledge about
the standardized use of labor protection supplies.
ListingHazard assessmentControl measuresLabor protectionCreate a list ofpotential occupationalhazards by inspectingthe equipment andpositions that generatenoise and solderingfume.
Assess thoseitems on thelist of potentialoccupationalhazards and identifythe "unacceptable,major andmedium"risks.
Lay downcorrespondingcontrol measures forpotential occupationalhazard risks, with afocus on reviewingthe effectiveness ofcontrol measures formedium and aboverisks, and conductregular supervision andinspection.
Conduct regulartraining onoccupationalhealth knowledge,and complianceinspection ofprocurement,distribution and useof labor protectionsupplies.
China Resources Microelectronics Limited2024 Sustainability Report
Employee ResponsibilityMake a Remarkable Life
8483
The total number of suppliers is 3,591.The proportion of suppliers conducting social impact assessment is100%.The proportion of suppliers conducting environmental impact assessment is100%.The proportion of purchasers who have passed sustainable procurement training within the Companyis100%.The proportion of local suppliers is93%, and the proportion of localized procurement is
86.5%.
Release theResponsible Minerals Statement of CR Micro.Hold the first Supplier Quality Conference of CR Micro.
Our actions:
Promote industry win-win developmentMaintain fair tradesRefine supply chain systems
Our performance:
China Resources Microelectronics Limited2024 Sustainability Report
Partner ResponsibilityCollaborate for Good Business
Collaborate for GoodBusiness
CR Micro adheres to the concept of mutual progress and sharing, deepens mutually beneficialcooperation with industry partners, continuously expands the scope of cooperation, achievescomplementary advantages and resource sharing, jointly creates a favorable industryenvironment of equality, mutual trust, harmony and win-win, and interprets the warmth andvalue of business with practical actions.
Partner Responsibility
8685
CR Micro continuously deepens strategic partnership cooperation and actively explores diversified cooperation models. Focus on themain responsibilities and core business, integrate the resource advantages of the semiconductor industry, and explore new developmentpaths. Participate in the innovative and low-carbon construction of the automotive industry chain, contribute to the development of theautomotive ecosystem, and create a harmonious and win-win industry ecosystem.
Promoting Industry Win-Win Development
The Company regularly participates in and continuously expands and deepens industry exchanges, focusing on professional industryconferences, forums, summits, annual meetings, expos and other market activities. It comprehensively showcases new products andnew technologies, maintains close communication with customers, industry experts and scholars, media, etc., keeps abreast of relevantindustry policies and trends, collaborates with associations, industry bodies, etc. for resource integration, and explores new paths for thefuture development of the industry.
In line with the market demand, the Company strengthens the integration of advantageous resources, continuously enriches the productseries and optimizes the product structure, actively participates in industry exhibitions, focuses on the cutting-edge technologies andapplications in the industry, comprehensively showcases the achievements made in technological innovation, product upgrading andother aspects, and enhances its core competitiveness.
Empowering the Development of Semiconductor Industry
Participate in industry exhibitions
From May 22nd to 24th, 2024, the Company participatedin the 26th China IC Manufacturing Annual Conference andSupply Chain Innovation and Development Conference.During the roundtable forum session, discussions andexchanges were held on the topic how to contribute to thedevelopment of the semiconductor industry by practicingthe conceptof "focusing on path innovation and self-reliance and self-improvement". The Company showcasedthe key core products such as power device modules, IPMmodules, MCUS, MEMS, and power drives.
From July 8th to 10th, 2024, the 2024 MunichShanghai Electronics Show was held. CR Microshowcased its automotive-grade power and driveproducts such as MOSFET, IGBT, and SiC in theautomotive electronics field, photovoltaic inverters,power devices for portable mobile energy storage,and DC drive chips in the new energy field, andproducts such as IPM, MCU, power supplies, driversand sensors in the home appliance application field.
China Resources Microelectronics Limited2024 Sustainability Report
Partner ResponsibilityCollaborate for Good Business
On September 8th, 2024, CR Micro, as a key enterprise in the technology and emerging fields of China Resources Group,made its appearance at the 24th China International Fair for Investment and Trade hosted by the Ministry of Commerceof China. The key displays include 12-in wafers, packaging process display boards, 750V/1200VIGBT modules, highand low voltage MOSFET products, intelligent power module (IPM)/ MCU supporting display solutions, as well as theCompany's automotive-grade automotive electronic products.
On October 16th, 2024, the Company made an appearance at the first "SEMiBAY Bay Chip Exhibition"and delivered aspeech titledUnite for Common Development and Build an Ecological Chain, reviewing the development path of thesemiconductor industry and sharing observations and insights on the current situation of the semiconductor industryin the Guangdong-Hong Kong-Macao Greater Bay Area. Moreover, the Company also set up exhibition stands, featuringmask plates, 8-in/ 12-in wafers, and advanced packaging process display boards, to comprehensively showcase its fullindustrial chain layout.
From November 26th to 30th, 2024, the second Chain Expo was successfully held. CR Micro participated in the themeexhibition of intelligent vehicle chain, focusing on automotive power semiconductors, MCU and sensor products. Itprovided a complete set of solutions for multiple application scenarios of new energy intelligent vehicles, showcasing thestrength of its automotive-grade wafer manufacturing platform and automotive-grade packaging and testing technologycapabilities, as well as a complete automotive-grade quality system and laboratory facilities.
8887
The Company serves as the vice chairman of the China Automotive Chip Standard Testing and Certification Alliance, and promotes thecompilation of industry standards, testing and certification, as well as industrial innovation in the automotive chip sector. Moreover, it hasjoined the Power Branch of the China Automotive Chip Industry Innovation Strategic Alliance as a council member and participated in thecompilation of group standards for power chip. It has become a member of the Automotive-grade Chip Industry Technology InnovationConsortium and a standing director of the China Power Supply Society, actively participating in the industrial chain links of the automotiveecosystem construction.
Contributing to Automotive Ecosystem Construction
By virtue of its leading advantages and technological accumulation in the industry, the Company has participated in the compilation orrevision of national, group and industry standards, encouraged technical personnel to attend discussions and conferences organizedby standardization organizations, and enhanced its contribution and influence in the industry. Meanwhile, deepen mutual learning andcooperation in the ESG field of the industry, participate in the compilation ofCorporate Sustainability Report Directive (CASS-ESG 6.0)– Semiconductor Industry, put forward core issue suggestions, share excellent practice cases, and provide guidance for enterprises toimprove their sustainability performance and disclose sustainability information.
Participate in the compilation of industry standards
CR Micro actively participates in the constructionof the automotive ecosystem and serves as a vicechairman of the China Automotive Chip StandardTesting and Certification Alliance.
CR Micro showcased its automotive-grade products at the18th Beijing International Automotive Exhibition. It has activelydeployed in the automotive electronics field, enhanced theproduct accessibility, and made proactive efforts in promoting the
independent control of China's automotive chip industry.
CR Micro pursues fair, transparent and sustainable business relations. From raw material procurement to product sales, the Companyregulates its own behavior with the bottom line of business ethics to ensure that the rights and obligations of both parties in the transactionare clear and equal. It treats small and medium-sized enterprises equally to maintain a fair trading market environment and promote thehealthy and orderly development of the industry.
Maintaining Fair Trades
The Company has established systems such asthe Specifications for Procurement and Management of Controlled Materials, ConfidentialityManagement System, and Foreign Investment Management System, laying a solid foundation for the implementation of responsibleprocurement. Promote and implement electronic procurement through the China Resources Shouzheng Platform to ensure the opennessand transparency of procurement. Meanwhile, the Company actively promotes the parallel implementation of global procurement andlocal procurement policies. By giving priority to the local materials, it further promotes the development of local industries. In 2024, theelectronic procurement rate was 82% approximately and the centralized procurement rate was around 99%.
Strengthening Transparent Procurement
We have implemented the arrangements of the Group's Party Committee on Party conduct, upholdingintegrity and anti-corruption, established theGuidelines for the Prevention and Control of Integrity Risks inMajor Projects, Guidelines for the Prevention and Control of Integrity Risks in Bidding and Procurement, andGuidelines for the Prevention and Control of Integrity Risks in the Sales Field, and promoted the normalizationand concretization of supervision. Carry out the full-process supervision on major science and technologyprojects before, during and after the events, to ensure the smooth implementation of project construction.Conduct relevant training on the code of business conduct and ethics, standardize the behavior of companyemployees and business partners and promote integrity. Make audit plans covering the operation site andbusiness links, audit multiple key processes of high-risk companies and businesses, and check whetherthere are corrupt behaviors such as seeking personal gain, accepting bribes, misappropriating funds, andillegally occupying company assets.Performance of anti-commercial bribery and anti-corruption training in 2024:
In accordance with theAnti-Monopoly Law of the People's Republic of China and Anti-Unfair CompetitionLaw of the People's Republic of China, improve the anti-unfair competition management system. Restrictthe abuse of market dominant position for competition through supervision and inspection, prohibit allbehaviors that exclude competitors, and refuse to seek competitive advantages through immoral or illegalbusiness practices. Carry out the promotion and implementation of theCode of Business Conduct, organizeemployees to receive training and learning on anti-monopoly and anti-unfair competition, organize thesigning of commitment letters, and enhance employees' compliance awareness in anti-monopoly and anti-unfair competition.Develop theManagement System for the Handling of Letters and Visits and Disciplinary Review of DisciplinaryInspection Institutions and System for Clarifying False Reports and Accusations, and standardize themanagement of all types of complaints and reports. Establish diversified reporting channels, indicatereporting email, hotline and mailing address, and encourage internal and external personnel to promptlyreflect improper matters such as bribery, extortion, fraud and money laundering during the operation. Itis stipulated that staff members are not allowed to disclose information to the person being reported orinvestigated, and the reported information must be strictly kept confidential.
Adhering to Business Ethics
Rules of transparent procurement of CR MicroFollow the principles of "Open, Fair, Just and Good Faith".All suppliers participating in the procurement business of CR Micro must sign the "Transparency Declaration"andclearly specify the complaints and reporting hotlines in the procurement documents.Supplier penalties: Untrustworthy suppliers engaged in collusive bidding, bid rigging, and fraud shall be put on recordthrough the Shouzheng Platform and must not participate in the procurement business of CR Micro during the banperiod.
Total numberPercentage
11100%10100%
Targeted trainee
Board of Directors
Management LevelEmployees10,756100%
Protection ofwhistleblowers
Anti-
monopoly and
faircompetition
Anti-briberyand anti-corruption
China Resources Microelectronics Limited2024 Sustainability Report
Partner ResponsibilityCollaborate for Good Business
9089
In compliance with theLaw of the People's Republic of China on Tendering and Bidding and Regulations on the Implementation ofthe Tendering and Bidding Law of the People's Republic of China, CR Micro has improved the organizational structure of supply chainmanagement, formulated theSupplier Management, Regular Performance Evaluation of Suppliersand other systems, and promoted thefurther upgrading of responsibility management in the industrial chain and value chain. Meanwhile, actively interact and communicatewith suppliers, strengthen the quality control of the supply chain, strictly manage conflict mines, and promote the sustainability of thesupply chain.
Refining Supply Chain Systems
Build the digital and intelligent supply chain of CR Micro. The operation center will take a lead in supply chain management. Bystrengthening procurement, supply, production, sales and quality, it implements the life cycle management of the supply chain. Targetedat win-win result and common growth, assure the stable development of production and operation.
Supplier Management
Supply chain management architecture
Operation CenterSupplierselectionCreate the databaseof potential partners.Collect and importsupplier data.
Suppliercultivation
Supplier review,material feasibility
assessment,qualification
review
Qualityimprovement
Exception managementTraining and guidanceAudit managementRegular evaluation
Businessmanagement
Order managementNegotiation strategyVolume priceallocationPaymentmanagement
Others
Logistics ManagementStrategic meetings, etc.
During the access stage, check the material sources, system certification status,environmental protection, and hazardous chemicals management of new suppliers, itemby item, in accordance with theSupplier Control Procedure and Specification for QualityCertification of New Materials. Carry out due diligence and ask suppliers to sign theIntegrity Agreement and the Supplier's Code of Conduct, to prevent commercial briberyand malicious fraud and regulate the integrity and business conduct of suppliers.Supplier access
mechanism
Carry out regular performance evaluations and evaluation of suppliers from the fouraspects, i.e. quality, business, delivery and service. Give more opportunities to those thatperform well in the assessment, and ask the unqualified suppliers to rectify and follow upfor correction.Supplierassessment and
evaluation
Supplier Exit
Mechanism
Those suppliers who suffer quality, safety, contract performance and service issuesoccurred during production and operation, or have any act of bad faith or breach ofcontract when participating in qualification and capability verification, procurement andcontract performance, will be notified within the Headquarter or blacklisted.
Improve the prevention and control system for supply chain risks. Classify the risks ofsuppliers and adopt classified management, assessment and warning by assessing theproduct categories, delivery performance, status of environmental and quality systemcertification, compliance with local laws and regulations, and disputes over raw materialprocurement, etc. For suppliers at higher risks, establish a list of high-risk materials andenhance the risk response capabilities of the supply chain.
Ask major suppliers to sign theCommitment Letter on Nonuseof Conflict Minerals, Certificate for Nonuse of HazardousSubstances etc.ProcurementDepartment
Promote and ask all suppliers to sign theIntegrity andCompliance Commitment Letter.Legal and ComplianceDepartment
Ask the supplier to sign theSafety Management Agreement.ESG Management
Supplier RiskManagement
Integrate ESG into the life cycle management of suppliers, and promote suppliers toabide by relevant codes of ethics, safety, health and human rights as well as social andenvironmental performance requirements. Incorporate ESG management, responsiblemanagement of the mineral supply chain, green supply chain, carbon management andanti-corruption etc. into the supplier management, and gradually improve the performanceevaluation system for the sustainability of suppliers.Suppliers
ESGManagement
Formulate the Specifications forSupplier Performance Review and Specifications forSupplier Audit, strengthen the quality and safety management of the supply chain,regularly conduct quality audits on suppliers, carry out quality and safety managementtraining, continuously enhance the product quality assurance capabilities of suppliers, andreduce product quality and safety risks brought about by the supply chain. In September2024, the "Unite Core Strength, Together We Can"– Supplier Quality Conference was held,with representatives from 17 suppliers in attendance.
Supply chainproduct quality
management
China Resources Microelectronics Limited2024 Sustainability Report
Partner ResponsibilityCollaborate for Good Business
9291
Supply chaininformationmanagement
The entire process of electronic and systematic management is implemented for the rawmaterials of suppliers from the incoming inspection, feasibility assessment and physicalcertification to the bill of materials of qualified suppliers. Establish a supplier qualitymanagement platform and digital management reports for automotive product suppliers.The system features high efficiency, consistency, integration, and replicability, achievingfull-process quality control of suppliers. And for automotive products, monthly KPI dataachievement tracking and display can be completed.
Supplier quality management platform
Suppliercommunication and
training
Promote mutual learning and progress with suppliers, organize specialized trainingrelating to quality management, and share cases of product quality and safety riskcontrol. Organize specialized training related to environment and society to enhance theresponsibility fulfillment capabilities of suppliers. In 2024, the Company conducted qualityand technical exchanges with 21 suppliers irregularly, shared management methods andcase experiences, and established a win-win relationship based on trust and value.
The Company adheres to the business philosophy of "not using conflict minerals as raw materials"and continuously optimizes itsresponsible minerals management. Develop theResponsible Minerals Statement of CR Micro, committing not to purchase conflict mineralsfrom conflict-affected and high-risk areas. Develop theCode of Supplier's Business Conduct of CR Micro, defining the responsibility ofsuppliers not to use conflict minerals. Suppliers are asked to clearly understand the situation of conflict minerals (gold/ tantalum/ tin/tungsten) and other metals contained in their products, and to conduct due diligence on the source and chain of custody of the mineralswithin this scope, assuring that metal materials used and sold by the suppliers are conflicts free.
Management of Conflict Minerals
On September 21st, CR Micro held its first Supplier Quality Conference with the theme of "Unite Core Strength, TogetherWe Can". Five outstanding suppliers in fields of silicon wafers, target materials, and plastic packaging materials shared theirexperiences in excellent quality management and received the "CR Micro Outstanding Supplier Award". By establishing aquality exchange platform for automotive industry suppliers, this conference has created a new model of cooperation forthe coordinated development of the industrial chain, and setting a new benchmark for supply chain quality collaborationin the industry. It marks a crucial step for CR Micro in deepening its industrial ecosystem layout and enhancing its brandinfluence.
Unite core strength and write a new chapter in supply chain collaboration
The Company conducts supplier training activities.
Supplier's management of conflict mineralsEmployee training on conflict minerals
Suppliers are required to sign thePolicy Statement forOres from Conflict-Affected and High-Risk Areasand theCertificate for Nonuse of Hazardous Substances, and tocommit and prove that their products do not use ores fromconflict-affected and high-risk areas.In 2024, the packaging and testing business group signedtheLetter of Guarantee for Not Using Prohibited/ RestrictedHazardous Substanceswith 77 suppliers, among which 46were subject to investigation conflict minerals, with 100%return.
Train employees to enhance their awareness andunderstanding of conflict minerals.
China Resources Microelectronics Limited2024 Sustainability Report
Case Study
Partner ResponsibilityCollaborate for Good Business
9493
Investment in work safety reached RMB 19.04 million.0 ordinary accident or above occurred, 0 employee death.575 security emergency drills were conducted, with 21,375 participants.
Charitable and public welfare donations reached RMB750,000 and farmer-
assisting consumption reached RMB 500,000 nearly.Organized the conduct of12 "Yishanxin"clothing recycling activities
Our actions:
Tighten safety productionDevote to public welfare and charityBuild a harmonious community together
Our performance:
Work safety performance
Performance of volunteer public welfare
Enhance Social Welfare
People's livelihood constitutes the basis of people's happiness and social harmony. CR Microfirmly fulfills the social responsibilities of a state-owned enterprise, consolidates the bottom lineof work safety, participates in volunteer public welfare activities, and integrates itself into thecommunity construction. It continuously deepens the connection between people's hearts, andkeeps making efforts in strengthening the creation of social value, building a harmonious homeof co-construction and sharing.
Public Responsibility
China Resources Microelectronics Limited2024 Sustainability Report
Public ResponsibilityEnhance Social Welfare
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CR Micro adheres to prioritizing work safety, setting "zero accident, zero injury, and zero pollution"as the goals for annual work safety, andimproving the safety management system. Focus on the investigation and rectification of hidden dangers and promote intrinsic safety.Carry out safety education and training, foster a safety culture, and ensure that the overall work safety of the Company is stable andorderly.
Tightening Safety Production
The Company has established a complete work safety management system, graduallysolidifying the main responsibility for safety management at all levels, deepening theconstruction of work safety standardization, continuously improving the operationalquality and efficiency of the dual prevention mechanism, and steadily laying a solidfoundation for work safety management. In 2024, the investment in work safety reachedRMB 19.04 million, and Chongqing CR Micro passed the re-evaluation for the title of"Second-level Standardized Enterprise for Work Safety".
The Company treats the work safety responsibility system as the core and foundation of EHS work. In accordance with the Law of thePeople's Republic of China on Work Safety, the Company has developed a number of systems including Objectives and ResponsibilitySystem for Work safety Management and Regulations on the Occupational Health and Safety Responsibility of Four-level Enterprises,sorted out and improved the list of work safety responsibilities by post and the list of annual work safety tasks for the first personresponsible for the Company, the person in charge of EHS and other key management. Moreover, the Company also organizes all levelsand all staff to sign the letter of commitment for occupational health and safety responsibilities, ensures the breakdown of work safetymanagement goals and responsibility system level by level, and strives to promote the work safety responsibility system.
Establish a dual prevention mechanism for work safety risk control and potential risk identification. Improve the dual-control informationmanagement system. Display the safety risk classification management information via "three platforms and one window"effectively, inreal time. Promote and enhance the Company's dual-control management level.
Improving Safety Management
Fulfill safety responsibilities
Empower safety with digital intelligence
Dual-control information management system
Dual-controlinformationPublicityplatformSolving theproblem of "dual-control"informationdisclosure by lawis also a symbol ofinformatization in theWork Safety Law.
SafetyInspection
Reportplatform
Address the issuesof "three musts andthree controls"inthe Work SafetyLaw and providenecessary ways fordepartments to fulfilltheir work safetyresponsibilities.
Identification
of hiddenhazardsGovernance
platformAddress the closed-loop governanceissues, promotethe rectification ofhidden dangers byimproving and trackingthe potential safetyhazards, and achieveintrinsic safety.
Dual-controlinformationUpdatewindow
Solve the basicinformationproblems of the"three platforms"byinformation updatingand improving, andform a "PDCA"cycle.
We have been promoting the construction of the "three safety capabilities", improve the emergency response plans, normalize theresponse procedures, effectively control and prevent potential safety hazards and risks during operation, and help achieve "adequaterisk prevention, effective hazard management, timely incident handling, and effective accident elimination". We will also establish andimprove a long-term mechanism for work safety.
Investigating Safety Hazards
Carry out safety riskidentification, formulate a list ofsafety risk identification coveringaspects such as productionequipment, process flow,chemical management, andcleanroom environment, anddispatch safety managementteams and technical experts,etc. to conduct comprehensivesafety risk assessment ofinternal production andoperation on a regular basis.
Risk identification
Abide by those requirements statedin the relevant documents issuedby the national and local safety andemergency response departmentsat all levels, make emergency plansrelated to occupational healthand work safety, and enhance theawareness of safety compliance.Organize relevant emergency drillsto promote training through drillsand achieve prevention throughdrills, comprehensively enhancingthe capacity for emergency responseto unexpected incidents. Forinstance, carry out the identificationand assessment of potential firerisks and the flood control andinspection in stormy weather in theLiangxi Road Industrial Park in Wuxi,and immediately rectify all issuesidentified.
Emergencymanagement
Focus on the key equipmentinstallation, key parts and importantlinks in major areas, and carry out acomprehensive special inspectionand rectification of potential safetyhazards in hazardous chemicals,building construction, dangerousoperations, buildings (structures),fire protection, gas, disasterprevention and mitigation, etc.Conduct a thorough safetyinspection of the production site onthe front line, with a focus on theuse of hazardous chemicals, themanagement of special equipment,the management of dangerousoperations, the managementof related parties, and themanagement of fire safety.
Identification of hidden
hazards
CR Shanghua continuously increases its investment in fire safety, improves the construction of fire protection facilities, andregularly maintains and updates fire-fighting equipment to ensure it can play a role in critical moments. At the same time,actively carry out fire safety training for all staff. Enhance the employees' awareness of fire safety and their emergency responsecapabilities by combining theoretical lectures with practical drills. In November, it was awarded the title of "Advanced Unit ofFire Safety Management"in Wuxi for its outstanding performance in fire safety management.
CR Shanghua was awarded the title of "Advanced Unit of Fire SafetyManagement"in Wuxi.
China Resources Microelectronics Limited2024 Sustainability Report
Public ResponsibilityEnhance Social Welfare
Case Study
9897
Flood control and inspection in stormy weather
Special drill for chemical leakage
Identification of potential hazards of special equipment
Fire alarm evacuation drill
In 2024, the Company set up a leading group for the Work Safety Month, issued theNotice on Work Safety Month and Safety Inspection ofCR Micro in 2024, and held a special meeting to study and deploy related tasks. The Company also encouraged its subordinated to carryout diversified safety-themed activities, promote the management ideas of work safety, enhance the employees' safety awareness, andstrengthen the ideological defense line for work safety.
Creating Safety Culture
Specific practical measuresTheoretical studyOrganize the subordinated to learn about, publicize andimplement the important instructions and comments givenby the President Xi Jinping on work safety through monthlyand quarterly EHS meeting, special meeting and pre-shiftmeeting.
ActivitiesUpload videos for work safety learning, make promotionalbanners and posters for safety-themed activities, hold andparticipate in various EHS knowledge competitions, snapshotsof potential hazards, professional skills competitions, and safetycommitment signing activities, creating a strong atmospherewhere everyone learns about safety.Safety trainingImplement the job responsibilities of employees for worksafety, expand the coverage of training, carry out classifiedand graded training, and strengthen safety education andtraining for dangerous operations such as electric welding,hot work, working at heights, confined spaces and temporaryelectricity use.
Accident warningCompile theCR Micro [2024] No. 1 EHS Warning, deeplydraw lessons from the fire accident at Shanxi Jinko and thecollapse of belt corridor at Hubei Runyang, and strengthenconstruction safety management.
Publicity and implementation of theoretical knowledge on
work safety
Carry out the "Safety Hazard Identification among 100
Pictures"activity
Put up the work safety postersHold an emergency response expert competition
Hang safety slogansCarry out the "Safety Commitment Signing"activity
China Resources Microelectronics Limited2024 Sustainability Report
Public ResponsibilityEnhance Social Welfare
10099
CR Micro has launched internal policies such as theAdministrative Measures for External Donation of CR Micro and AdministrativeMeasures for voluntary Blood Donation of CR Micro, defining the key directions, principles, methods and management approval proceduresfor donation, and improving the operation mechanisms related to public welfare. Encourage employees to actively engage in charitabledonations, carry out the "Yishanxin"clothing recycling and child education assistance activities, and give back to society with our humbleefforts. In 2024, the Company was awarded the "Responsible Whale and Ox Award"as an ESG public welfare pioneer. This award aimsto recognize listed companies that are enthusiastic about social public welfare and charity, integrate the concept of charity into corporateculture construction, and voluntarily fulfill their social responsibilities.
Devoting to Public Welfare and Charity
The Company integrates the rural revitalization into its corporate development strategy. In light of the new situation, new tasks and newrequirements, the Company continuously strengthens overall guidance and organizational promotion. It focuses on multiple fields suchas industry, education and consumption, and applies precise efforts based on local conditions. Through measures such as consumptionassistance, paired construction and material donation, it continuously deepens and expands the rural revitalization. In 2024, the Companyactively participated in the "Rural Revitalization Week"organized by SASAC and the "Unite and Act"of China Resources Group, purchasingagricultural products valued RMB 494,900 in total.The "Yishanxin"public welfare brand is an environment-friendly clothing recycling project initiated by CR Micro and the Trade Union ofWuxi Civil Affairs Bureau jointly, through "Runzhishou", an environmental protection platform of China Resources. Carry out clothingrecycling activities by organizing volunteer service teams to enter shopping malls, schools and communities, promoting the resourceconservation concept of clothing recycling. We are committed to promoting the recycling and reuse of used clothes while making it aneffective way for enterprises to support the "carbon peaking and carbon neutrality"goals and promote the concept of public welfare andenvironmental protection. In 2024, a total of 12 "Yishanxin"clothing recycling activities were carried out, including 7 held inside and 5held with partners, gathering 5.59 tons of used clothing cumulatively.
The Company actively organizes voluntary blood donation activities to help relieve the pressure of the blood bank and contribute tomedical treatment. Through internal publicity channels, widely mobilize and introduce the significant meaning and process of voluntaryblood donation, stimulate the enthusiasm of employees to participate, and support social public welfare undertakings with practicalactions.
Contributing to Rural Revitalization
Conducting Clothing Recycling Project
Organizing Voluntary Blood DonationThe Foundry Business Group launched the "Warmth of
Old Clothes Makes Love Spread"volunteer activity.
The Operation Center launched the "Deep Affection for Old
Clothes, Moving Forward Together"volunteer activity.
CR Micro attaches great importance to communication and exchanges with local communities, actively leverages its resource advantages,deeply integrates into local schools and communities, and conducts a series of activities such as knowledge popularization. It is committedto creating a harmonious and healthy living environment and sharing the fruits of development with the communities.Building a Harmonious Community Together
CR Micro are concentrating on building the "Warm Core"series of ESG brands, including Warm Core Scientific Education, Warm CoreEducation Assistance, Warm Core Elderly Care, and Warm Core Child Protection, etc. The Company focus on imparting knowledge aboutthe semiconductor industry, providing financial aid to students in need, organizing activities in nursing homes and Arbor Day events, tosafeguard the well-being of the people.
Building ESG Brand
To improve the educational quality in poverty-stricken areas, enrich the reading list for children and enable rural children to share high-quality educational resources, the Company actively encourages its subordinate business groups to hold donation and educationalassistance activities. The Foundry Business Group has set up a charity donation point and organized its employees to donate idle items tochildren in remote and poverty-stricken areas. The Design Service Party Branch launched the "Tongxin Zhumeng"book donation activity,together with the "Micro Angel"Public Welfare Service Society of Liangxi District, to support children's education and growth.
Giving Donations to Schools
CR Micro has launched the 2024 "Warm Heart and ChildProtection Project", donating educational assistance funds andmaterials to help children in need complete their studies andconvey positive energy of caring for children's growth.
The Integrated Circuit Business Group visited JiangsuInformation Technology College and carried out a series ofactivities to bring science and technology into the campus.
The Foundry Business Group launched the "TongxinZhumeng"book donation activity, together with the "MicroAngel"Public Welfare Service Society of Liangxi District, and
received over 1,000 books.
The Foundry Business Group entered the kindergarten tolaunch the "Initiating the Classroom with 'Heart', SmartlyDrawing the Future"activity.
The Company has organized voluntary blood donationactivities for many consecutive years, and employeeshave actively participated.
China Resources Microelectronics Limited2024 Sustainability Report
Public ResponsibilityEnhance Social Welfare
102101
Future OutlookIn 2025, CR Micro will obtain the results of its "14th Five-Year Plan"strategy. As a leading power semiconductormanufacturer and a listed company on the STAR Market, CR Micro will continue to perform the full industrial chainIDM business model and achieve business scale leadership in the fields of power semiconductors, intelligentsensors, and intelligent control. Relying on 6+8+12-in wafer manufacturing and advanced packaging and testingresources, it leads in core products and technologies. CR Micro will continue to deepen the introduction, cultivation,retention and utilization of S&T talents, promote talent aggregation and build a talent highland, and take the leadin the introduction of high-level S&T talents. Meanwhile, build the foundation of value investment through high-quality development, improve corporate governance, and achieve efficient management with an outstanding Boardof Directors. Take multiple measures to improve the quality of listed companies, strengthen the transparency ofinformation disclosure, and deepen investor relations management. We will build a platform for shareholders andemployees in a firmer and open way, to realize their value and contribute technological strength to society.
China Resources Microelectronics Limited2024 Sustainability Report
Future Outlook
102101
104103
Annex
Key Performance
China Resources Microelectronics Limited2024 Sustainability Report
Annex
Scope ofresponsibility
IndicatorUnit202220232024
Customerresponsibility
Contract fulfillment rate%100100100
Customer satisfaction%
FBG：93.25FBG：93.26FBG：92.99PDBG：93PDBG：92.64PDBG：93.3ICBG：91.84ICBG：92.62ICBG：92.57ATBG：90ATBG：92ATBG：93Customer complaint handling rate%100100100
Product percent of pass%
6 inches:99.578A：99.608B：99.326C：99.93T1：99.94T2：99.80A3：99.84
6 inches：99.568A：99.698B：99.326C：99.89T1：99.94T2：99.86A3：99.85
6 inches:99.628A：99.718B：99.486C：99.78A3：99.8612A：99.78A1：99.88A2：99.73A5：99.85A6：99.82Product recall rate%----0.012Investment in R&D
RMB
million
9.2111.5411.67Number of R&D personnelPerson1,4131,5971,731Number of international, national orindustrial standards
Units
Sales volume of new products
RMB 100million
31.3526.72 30.29Number of new patents
Units
231193161Major innovation awards111419Number of patents and patentapplications
4,0715,8965,453
Partnerresponsibility
Ratio of suppliers passing quality,environmental and occupationalhealth and safety systemcertifications
%
9.219.8617.6Number of strategic cooperationagreements signed
Copy233535Expenditure on industry-university-research cooperation
RMB10,000
440507722Penalties for law and regulationviolations
Times
Number of major negative publicopinions handled
Case
Proportion of suppliers conductingsocial impact assessment
%100100100Proportion of suppliers conductingenvironmental impact assessment
%100100100Number of suppliersSupplier3,4253,6393,591
Scope ofresponsibility
IndicatorUnit202220232024
Partnerresponsibility
Proportion of local suppliers%----93.12Proportion of localized procurement%----86.5Percentage of internal buyers who have beentrained in sustainable purchasing
%100100100Percentage of products with traceable originof raw materials
%----100
Environmentalresponsibility
Comprehensive energy consumption10,000 tons8.848.619.80Comparable comprehensive energyconsumption per RMB 10,000 of output value
Tons ofstandard coal/RMB 10,000
0.06830.06550.0704Comparable comprehensive energyconsumption per RMB 10,000 of added value
Tons ofstandard coal/RMB 10,000
0.13010.1190 0.1339Investment in energy-efficient and emission-reduction technology upgrading
RMB 100million
0.1300.2680.285Total investment in environmental protection
RMB 100million
0.550.480.63Total water consumption per million RMB ofrevenue
Ton----7.11Carbon dioxide emissionsTon608,812.17556,847.70590,980.29Scope I GHG EmissionstCO
e--170,966166,803Scope 2 GHG EmissionstCO
e--385,880424,177Carbon dioxide emissions per RMB 10,000 ofoutput value
tons/10,000yuan
0.470.420.42Sulfur dioxide emissionsTon0.53880.75980.6592Volatile organic compounds (VOCs)Ton32.0364.4339.26Ammonia nitrogen emissionsTon6.98586.97946.6143COD discharge volumeTon135.318141.269144.336Nitrogen oxides (NOx) emissionsTon4.66224.70255.8053General solid waste generatedTon4,510.75 4,758.66 7,903.44
NoteHazardous waste generatedTon5,700.32 5,470.46 5,817.16
Economicresponsibility
Operating Income
RMB 100
million
100.6099.01101.19Total Profit
RMB 100
million
26.5316.87 7.95Net Profit
RMB 100
million
25.9914.38 6.62Net profits attributable to the owners of theparent company
RMB 100
million
26.1714.79 7.62Total Assets
RMB 100
million
264.58292.15291.07Net assets
RMB 100
million
206.96236.30 242.96Weighted return on net assets%14.047.15 3.47
Note: In 2024, CR Run'an was added into the scope of statistics. Meanwhile, the waste treatment standards of CR Shanghua were raised, resulting in an increase in the amount of wastegenerated.
106105
Scope ofresponsibility
IndicatorUnit202220232024
Economicresponsibility
Return on total assets%11.046.30 2.87Rate of value maintaining and increasing ofstate-owned assets
%117.55107.87100.24Profit/ cost ratio%34.0219.788.66Labor productivity of all staff
RMB 10,000per person
54.8246.46 38.82Total investment in fixed assets
RMB 100million
16.2327.70 23.73Total Taxes
RMB 100
million
5.676.08 4.79Total profits and tax
RMB 100million
30.9920.77 10.78
Employeeresponsibility
Total number of employeesPerson9,47010,25110,756Percentage of contract workers%100100100Social insurance coverage rate%100100100Coverage rate of health check-up%100100100Number of health check-up participants人9,47010,25110,756Percentage of female management(Direct managers of group departments anddirectly-affiliated companies)
%222015Number of disabled employeesPerson313346Employee training coverage%97100100Per capita training investment
RMB 10,000per person
0.070.080.06Total investment in employee trainingYuan/year6,914,1058,460,4346,891,469Employees' satisfaction with canteen%82.568280Employees' satisfaction with dormitory%92.0 92.692.9Help employees in difficulty
Person(household)
18810085Investment in helping employees in difficultyRMB 10,0007.422.998.72Visit and console the families of employees indifficulty
household4795130Investment in visiting and consoling the familiesof employees in difficulty
RMB 10,0003.636.50 4.23Assist the sick employee
Person-times
78131238Investment in assistance to sick employeesRMB 10,0004.546.639.75Educational assistance for children in difficulty
Person-times
087100Investment in educational assistance forchildren in difficulty
RMB 10,00008.710
Scope ofresponsibility
IndicatorUnit202220232024
Publicresponsibility
Number of new employees (total number ofnew employees during the reporting period)
Person2,3432,7663,902Charitable and public welfare expenditure
RMB
10,000
756575Investment in rural revitalization
RMB10,000
02850Number of volunteersPerson9851,1211,261Number of ordinary accidents and aboveTimes000Mortality rate per thousand people‰000Number of fatalities in accidentsPerson000Number of employee deathsPerson000Safety training hoursHours91,609142,549216,806Safety training coverage rate%100100100Investment in safety production
RMB 100million
0.22080.21970.1904The number of security emergency drills
number oftimes
304527575Number of participants in security emergencydrills
Person-
times
9,61215,95521,375Number of full-time safety managementpersonnel
Person637189Number of registered safety engineersPerson333828Number of people suffering from occupationaldiseases
Person000Investment in employee occupational healthand safety
RMB
10,000
894.41718.78786.11
China Resources Microelectronics Limited2024 Sustainability Report
Annex
108107
IndexesShanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 -Sustainability Report (for Trial Implementation)DimensionS/NTopicsChaptersPage
Environment
1Response to climate change
Environmental Responsibility – Respond to
Climate Change
P63-702Pollutant emissions
Environmental Responsibility – Put Green
Production into Practice
P57-623Waste disposal
Ecosystem and biodiversityprotection
Environmental Responsibility – ImproveEnvironmental Management
P55-56
Environmental compliance
management6Energy utilization
Environmental Responsibility – Respond to
Climate Change
P63-707Water resource utilization
Environmental Responsibility – Put Green
Production into Practice
P57-628Circular economy
Social
9Rural revitalization
Public Responsibility – Devote to Public Welfare and
CharityBuild a harmonious community together
P99-10010Contribution to society11Innovation-driven development
Customer Responsibility – Focus on Innovation-
Driven Development
P39-4412Ethics of S&T13Supply Chain Security
Partner Responsibility – Promote Industry Win-
Win Development
P85-87
Equal treatment of small andmedium-sized enterprises
Partner Responsibility – Maintain Fair TradesP87-88
Safety and quality of products and
services
Customer Responsibility – Improve the Quality of
ProductsSupply high-quality service
P45-52
Data security and customer privacy
protection
Economic Responsibility – Enhance Compliance Risk
ControlCustomer Responsibility – Render High-Quality
Service
P32-36P50-5217EmployeesEmployee responsibilityP73-82
Sustainability-relatedgovernance
18Due diligence
Partner Responsibility – Refine Supply Chain
Systems
P89-9219Communications with stakeholdersSustainability ManagementP19-2420Anti-bribery and anti-corruption
Partner Responsibility – Maintain Fair TradesP87-8821Anti-unfair competition
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Address: No. 14 Liangxi Road, Wuxi, Jiangsu ProvincePostal Code:214061Tel.:+86-510-81805891 Fax:+86-510-85872470Official Website：www.crmicro.comYour Information:
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China Resources Microelectronics Limited2024 Sustainability Report
Annex
Rooms 1502-1503, Floor 15, Building 19W, No. 19 Science Park West Avenue, Hong KongTel.: +852-22999188No. 14 Liangxi Road, Wuxi, Jiangsu ProvinceTel.: +86-510-85893998No. 12, Lane 299, Wenshui Road, Shibei Zhihuiyuan, Jing'an District, ShanghaiTel.: +86-21-61471575Website: www.crmicro.comEmail: crmic_hq_zj_gw@crmicro.com
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