Environmental, Social andGovernance (ESG) Report
2024
Goertek Inc.Stock Code: 002241
Contents
About the Report
Chairman’sStatement
Responsibility in CultivatingMomentumfor Growth
Green Smart ManufacturingPracticing High-QualityDevelopment
CraftsmanshipOpeningLinkstothe World
Corporate GovernanceRisk ManagementBusinessEthicsIntellectualProperty ProtectionInformation Security and PrivacyProtection
Addressing Climate ChangeOptimizing Use of ResourceProtectingEcologicalEnvironmentChemicals ManagementCleanTechnologyExploration
Quality FirstLeadingScientificandTechnologicalInnovationPromotingTalent DevelopmentSustainableSupplyChainFulfillingSocialResponsibility
Appendix
About the CompanyESG Management
Aboutthe Report
Chairman’sStatement
Green Smart ManufacturingPracticing High-Quality Development
AppendixAboutthe Company
ESGManagement
Responsibility in CultivatingMomentum for Growth
Craftsmanship OpeningLinks to the World
Reporting ScopeThe reporting scope of this Report includes Goertek Inc. and its subsidiaries. The coverage and calculation methods of the datainvolved in this Report have been marked herein.
Reporting Period
This Report is an annual report, and the Reporting Period is from January 1
st, 2024 to December 31
st
, 2024. Unless otherwisespecified, “this year” in this Report refers to the above Reporting Period. To ensure the coherence of the report, some contentsmay exceed this time period.
Preparation BasisThis Report is prepared in accordance with theSelf-regulatory Guidelines No.1 for Companies Listed on Shenzhen Stock Exchange– Standardized Operation of Companies Listed on the Main Boardissued by the Shenzhen Stock Exchange, and with reference totheSelf-regulatory Guidelines No.17 for Companies Listed on Shenzhen Stock Exchange – Sustainability Report (For TrialImplementation)issued by the Shenzhen Stock Exchange, theGRI Sustainability Reporting Standardsissued by the GlobalSustainability Standards Board (GSSB), the United Nations Sustainable Development Goals (SDGs) and the needs of theCompany’s stakeholders.
Report Access and Feedback
This Report is published in Chinese and English. In case of any discrepancies, the Chinese version shall prevail.To view and download the electronic version of this Report, please visit our official website:
Website: http://www.goertek.com
For any questions or suggestions on this Report, please contact us:
Address: No.268 Dongfang Road, High-Tech Industrial Development District, Weifang, ShandongPostal Code: 261031Telephone: 0536-3055688Email:goertekcsr.list@goertek.com; ir@goertek.com
About the Report
This Report aims to disclose the management and performance of Goertek Inc.（abbreviated as “the Company” “we”）in Environmental, Social and Governance (ESG) and communicate with stakeholders to respond to their needs.
Aboutthe Report
Chairman’sStatement
AppendixAboutthe Company
ESGManagement
Responsibility in CultivatingMomentum for Growth
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Connecting the World with High-Level Openness for Steady DevelopmentFacing the complex and ever-changing global market, we have always connected the world with an open attitude, seized the opportunities in the AI+ metaverse industry, deepenedstrategic major customers, expanded strategic business, improved the level of intelligent manufacturing, and built intelligent factories. We have fully utilized regional advantages, improvedinternational layout, sought benefits from management, promoted comprehensive and continuous improvement, and achieved strong development of business. This year, wedemonstrated strong competitiveness and innovative vitality on the global stage with a higher level of openness.Driving the Future with Technological Innovation for Craftsmanship DevelopmentAs a pioneer in technological innovation, we have always adhered to the concept of "Craftsmanship and Continuous Improvement", focusing on cutting-edge fields, strengtheningtechnological innovation, accelerating the cultivation of new quality productive forces, and promoting industrial upgrading. Through continuous R&D investment and technologicalbreakthroughs, we have provided smarter and more innovative solutions to customers around the world. Our technical strength continues to increase, not only consolidating our position inthe global industrial chain but also making due contributions to the development of the industry.Fulfilling Responsibility with Green and Low Carbon for Sustainable DevelopmentUnder the guidance of the carbon neutrality goal, we have always regarded green development as one of our core strategies and strive to reduce the environmental impact of our productmanufacturing and operational processes. Through a series of measures such as systematically promoting energy-saving and consumption-reducing transformation, increasing theproportion of clean energy use, and optimizing resource utilization efficiency, we have significantly improved the green level of production and operation, injecting strong momentum intoour low-carbon transformation. We insist on high-target traction, with technological innovation and management optimization as the dual-wheel drive, and continue to promote the in-depth practice of green manufacturing, contributing Goertek's strength to building a greener and more sustainable future.
Creating Shared Value through Win-Win Cooperation for Mutual Development
We have always worked with partners, employees, and all walks of life to practice responsible procurement and build a green, safe, and sustainable supply chain. We insist on a people-oriented approach, create a diversified and inclusive working environment, and optimize our welfare system to help our employees develop. We also actively undertake socialresponsibilities, giving back to the local communities and those in need of help, so that technology benefits more people’s lives. By optimizing the human resources system, deployingtalents globally and providing diversified benefits, we further enhance employees' sense of belonging and happiness, and achieve mutual growth between the Company and ouremployees.We have always practiced the core values of “Client Orientation, Employee Development, Trustworthy, Cooperation and Mutual Benefits", driven by innovation and change, and constantlyfulfilled our mission of “A Better Life Enriched by Technology”. In the future, we will continue to work together with all stakeholders to move towards a more sustainable future with an openmind, innovative spirit, green concept and cooperative attitude.
Jiang BinChairman of Goertek Inc.
Chairman’s StatementIn 2024, we kept pace with the global technological wave, with the vision of “TobeaGreat Company", and by firmly implementing the ESG concept, fulfilling our social responsibilities, andpooling the strength of all employees to create value for customers, employees, partners and society. This year, we have continued to be shortlisted for the list of “Brand Finance China500", and have been listed on the All-China Federation of Industry and Commerce’s "China's Top 500 Private Enterprises" for the 11th consecutive year.
Aboutthe Report
Chairman’sStatement
AppendixAboutthe Company
ESGManagement
Responsibility in CultivatingMomentum for Growth
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
About the CompanyCompany OverviewGoertek Inc. is a global innovative technology company. The Company was established in June 2001 and is headquartered inWeifang, Shandong Province. The Company was listed on the Shenzhen Stock Exchange in May 2008 and has been included inthe CSI 300 and SZSE 100 indices.The Company serves leading customers in the global technology and consumer electronics industries, specializes in the R&D,manufacturing and sales of precision components, smart system devices, and high-end manufacturing systems, and providescustomers with vertically integrated product solutions for precision components and smart hardware, as well as related design,development, and manufacturing services. The Company’s main products include precision components such as acoustic, optics,microelectronics, and enclosure parts, as well as smart hardware products such as VR (Virtual Reality), MR (Mixed Reality), AR(Augmented Reality), smart wireless earphones, smart wearables, smart home electronic gaming consoles and accessories, andsmart home products.The Company has a global R&D footprint, with R&D centers in overseas countries such as the United States, Japan, South Korea,and Denmark, as well as in major domestic cities such as Beijing, Weifang, Qingdao, Shanghai, Shenzhen, Nanjing, and Xi'an. Withacoustics, microelectronics, and optics as the main technical directions, the Company provides customers with systematic overallsolutions by integrating cross-domain technologies. Through continuous technological innovation and business expansion, theCompany continuously strengthens core competence in the fields of precision manufacturing and intelligent manufacturing,realizes cooperation and mutual benefits, and grows together with first-class clients globally.
Company Culture
Our cultural slogan is "We Make, We Share, We Thrive". We are committed to the mission of "A Better Life Enriched by Technology",aspire "To be a Great Company", uphold the core values of "Client Orientation, Employee Development, Trustworthy, Cooperationand Mutual Benefits" and the corporate spirits of "Excellence, Proactivity, Pragmatic, Innovation", and adhere to the managementphilosophy of "Craftsmanship and Continuous Improvement", establishing the "Together" cultural model centered around our corevalues and corporate spirits.
Aboutthe Report
Chairman’sStatement
AppendixAboutthe Company
ESGManagement
Responsibility in CultivatingMomentum for Growth
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Company History
2001
Founded
?Listed on the ShenzhenStock Exchange?Set up Goertek USA
Set up Goertek Vietnam,established the firstoverseas manufacturing
base
Won the Nomination Award of theChina Grand Awards for Industry
?Won the Nomination
Award of the 4th ChinaQuality Award?Ranked first in the R&Dlist of Chinese electroniccomponent companiesfor 6 consecutive years
?Selected into the nationalintelligent manufacturingdemonstration factory?Shortlisted as Top 50Forbes China MostInnovative Companies
?Won the iF DESIGNAWARD for the first time?Goeroptics was selectedas the nationalmanufacturing individualchampion enterprise
Won the First Prize ofShandong Provincial
Scientific andTechnological Progress
Award
2008
2013
Comprehensive deployment offour major smart system device
strategies
2017
2019
Entered bluetoothearphone market
2003
Promoted to the top 10of the Chinese
electronicscomponentsindustry
20112018
Goertek global R&D center
starts operations
2020
2021
National Virtual Reality
Innovation Center(Qingdao) officiallyopened
2023
Renamed as “ Goertek Inc.”
2016
2022
2024
Aboutthe Report
Chairman’sStatement
AppendixAbout
the Company
ESGManagement
Responsibility in CultivatingMomentum for Growth
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Company HonorsPictures of Key Awards
Other AwardsAwardcategories
AwardsAwarded by
Governance
China’s Top 500 Private Enterprises in 2024
All-China Federation ofIndustry and CommerceChina’s Top 500 Private Manufacturing Enterprises in 2024
No. 9 among the Top 200 Shandong Private Enterprises in 2024
Shandong Province’sFederation of Industryand Commerce,Shandong Province’sDevelopment andReform Commission,Shandong Province’sDepartment of Scienceand Technology,Shandong Province’sDepartment of HumanResources and SocialSecurity, ShandongProvince’s Department ofAgriculture and RuralAffairs, ShandongProvince’s Department ofCommerce, ShandongProvince’s TaxationBureau, ShandongProvince’s MarketSupervision Bureau
No. 5 among the Top 100 Shandong Private Enterprises
for Innovation in 2024
No. 2 among the Top 100 Shandong Private Enterprises
for Employment in 2024
2024FortuneChina 500Fortune China2024 Hurun China 500Hurun Research InstituteChina’s Top 500 Listed Companies by Market Value21Data News LabTop 20 Hurun China Metaverse Companies with the Greatest Potential 2024Hurun Research Institute
JRJ.comThe 13th “Golden Intelligence Award” hosted by JRJ.com2024 Outstanding Green and Low-Carbon Contribution
Award
China Business Journal2024 Outstanding Performance Enterprise in Energy Digital
and Intelligent Transformation
iF International Forum Design GmbH
iF DESIGN AWARD 2024(Goertek’s Flexible VR Glasses)Shandong Province’s Department of Industry and Information
Technology2024 “Green Factory” Honorary Title
Aboutthe Report
Chairman’sStatement
AppendixAboutthe Company
ESGManagement
Responsibility in CultivatingMomentum for Growth
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Other Awards
Awardcategories
AwardsAwarded by
Technology and
innovation
The China Patent Award
China NationalIntellectual PropertyAdministration
The World's First QTL Certification for Wearing Comfort of
Consumer Electronics Products
SGS
First prize in the Lean session of the 10th Enterprise Improvement CaseCompetition, Second prize in the QCC Quality Improvement session
www.qualityclub.cn
2024 Digital and Reality Integration Development Conference and TOP100
Digital and Reality Integration Enterprises
China EnterprisesEvaluation Association
No. 1 among China’s Top 50 VR Companies in 2024
World Display IndustryInnovation andDevelopment Conference
Awardcategories
AwardsAwarded by
Environmental
Shandong “Provincial Zero Waste Factory”
Shandong Province“Zero Waste City”Construction Task Force
OfficeThird Prize in the Second "Master Cup" High Energy Efficiency Air Conditioning
System Engineering Competition
China Refrigeration AndAir-Conditioning Industry
Association
Social
The eighth batch of national manufacturing individual champion enterprises
（Goertek Optical Technology）
Ministry of Industry andInformation TechnologyThe World’s 50 Most Valuable Electronics & Appliances Brands
Brand FinanceNo. 113 among the China’s Top 500 BrandsChina Best Employer Award 2024 China Best Employers in Qingdao Zhaopin.com“China Vision Valley” Comprehensive Competitiveness Champion Enterprise in
the New Quality Productive Forces List of Visual Intelligence Industry
TMTPost,China Vision Valley2024 Shandong Extraordinary Employer AwardLiepin2024 Campus Recruitment Excellence Practice AwardYonyou
Aboutthe Report
Chairman’sStatement
AppendixAboutthe Company
ESGManagement
Responsibility in CultivatingMomentum for Growth
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
ESG ManagementWe have deeply integrated ESG concepts into our management and operation system, responded to the concerns of clients, employees, investors and other stakeholders on the Company's ESG performance, and continued to drive the sustainability of the Company.
ESG Management StructureAn effective ESG management system strongly supports the Company's sustainable development goals. We are continuously improving our ESG integration and management capabilities by clarifying ESG management concepts, establishing and improving the ESGmanagement structure, and developing ESG management systems.The Company has established a top-down, well arranged, and well-defined ESG management structure, covering three levels: decision-making, management and execution. The Company has formed clear principles, strategies and responsibilities for ESG managementto ensure that the Company’s sustainable development work is standardized and organized, and improve the Company's overall ESG performance.
Responsible for promoting and implementing material ESG issues and reporting regularly on implementationand results
Identifying stakeholder requirements for ESG, supporting the development of ESG work plans, and promoting the practice andcommunication of sustainable developmentSustainable DevelopmentPromotion Office
Working Group onMaterial Issues
Working Group on Business
Undertaking
Management Groups ofSubsidiaries / Platforms
Sustainable Development
Committee
Performing overall decision-making and oversight of sustainable development matters, formulating sustainable development management policies,reviewing, and approving short-term sustainable development policies and medium-term and long-term sustainable development plans
Sustainable Development Management Structure
Aboutthe Report
Chairman’sStatement
AppendixAboutthe Company
ESGManagement
Responsibility in CultivatingMomentum for Growth
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
StakeholdersMain communication and feedback channelsMain issues of concerns
EmployeesEmployee satisfaction surveyEmployee reception dayEmployee proposal systemEmployee seminarsSuggestion boxes
Employee health and safetyEmployee rights and interestsEmployee developmentEmployee care
Partners and mediaExclusive interviewsInformation disclosureSeminars
Innovative R&DBusiness ethicsProduct qualityChemicals management
CommunitiesWelfare activitiesSeminarsCommunity project participation
Public WelfareDischarges managementBusiness ethicsInformation security and privacy
protection
Stakeholder Communications
The Company fully respects and protects the legitimate rights and interests of stakeholders, maintains communication with stakeholders through various channels, and continuously pays attention to and responds to stakeholders' key issues in the Company's operations anddecision-making, jointly promoting the Company's continuous and steady development.StakeholdersMain communication and feedback channelsMain issues of concernsGovernments and
regulators
Work meetingWork reportWork inspection
Waste management
Product qualityEmployee rights and interestsEmployee health and safety
Major shareholders and
investors
Shareholders' meeting
Board of DirectorsInvestor communication meetingBondholder meeting
Product qualityInnovative R&DGreen and low-carbon products
Employee health and safetyRisk management
CustomersCustomer satisfaction surveys
Customer visitSpecial seminars
Product qualityBusiness ethics and compliance
Customer serviceInformation security and privacy
protection
Suppliers and
contractors
Supplier managementIndustry experience sharingTheme trainingCompliance bidding
Sustainable Supply Chain
Product quality Business ethicsInformation security and privacy
protection
Aboutthe Report
Chairman’sStatement
AppendixAboutthe Company
ESGManagement
Responsibility in CultivatingMomentum for Growth
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Materiality to Stakeholders
Materiality AnalysisBased on core business and strategic planning, we analyze the key drivers of oursustainable development and stakeholder concerns, identify material issues, createthe ESG materiality matrix, and take targeted management and action based onthe matrix. We are also actively exploring methods for assessing and analyzing thefinancial importance of ESG issues to better guide sustainable development andinformation disclosure-related work.
Background analysisThe Company has analyzed sustainable development factors that affect theinternal and external environment based on operating status, developmentstrategy and industry characteristics.
Materiality assessment
The Company has assessed the material issues through surveys andinterviews, invited internal and external stakeholders and experts fordiscussion and analysis, and ranked the materiality of the issues according to“Materiality to the Company” and “Materiality to Stakeholders”, forming theMateriality Matrix”
Issue identification
The Company has identified 20 material issues, including 7 environmentalissues, 11 social issues, and 2 governance issues.
VerificationThe Company has verified the materiality assessment and, combined with theCompany's business policies and strategic planning, as well as industry expertadvice, proposed a sustainable development management plan based onthe materiality of the issues to develop and implement action plans andcomplete information disclosure.
Materiality to the Company
High
High
?Care for employees?Public Welfare
?Innovative R&D
?Sustainable supply chain?User friendly product design
?Waste management
?Employee rights and interests?Response to climate change
?Water resources management?Discharges management
?Green and low-carbon products
?Chemicals management
?Employee health and safety
?Energy management and efficiency improvement
?Information security and privacy protection
?Employee development
?Customer service
?Product quality?Business ethics
?Governance?Social?Environmental
?Risk management
Social
5.Employee health and safety
6.Care for employees
7.Information security and
privacy protection
8.User friendly product design
1.Product quality
2.Customer service
3.Employee development
4.Employee rights and
interests
9.Innovative
R&D
10.Sustainable
supply chain
11.Public welfare
Governance
1.Business ethics
2.Risk management
Environmental
5.Water resources
management
6.Waste management
7.Green and low-
carbon products
1.Response to climate change
2.Energy management and
efficiency improvement
3.Chemicals management
4.Discharges management
Classification of Material Issues
GoertekInc.2024MaterialityMatrix
Aboutthe Report
Chairman’sStatement
Responsibility in CultivatingMomentum for Growth
AppendixAboutthe Company
ESGManagement
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Responsibilityin CultivatingMomentum forGrowth
Goertek Inc. is committed to creating a sustainable governance system.The company strictly abides by laws, regulations and listed companymanagement regulations, and has established a governance structure thatis in line with the Company's own strategic planning, production andoperation, and industry characteristics. We continue to strengthen scientificgovernance and improve internal control management, business ethics,intellectual property protection, information security and privacy protection,and other compliance systems to effectively safeguard the interests of themajority of stakeholders.
Related United Nations Sustainable Development Goals（SDGs）
Aboutthe Report
Chairman’sStatement
Responsibility in CultivatingMomentum for Growth
AppendixAboutthe Company
ESGManagement
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Governance Structure
The Company has established governance mechanisms of “Shareholders’ Meeting,Board of Directors, Supervisory Board, and Management” to ensure the integrity ofthe Company's governance structure and mechanism and the efficiency ofoperation.
Shareholders'Meeting
Board ofDirectors
Management
Remunerationand AssessmentCommittee
AuditCommitteeSupervisoryBoard
Shareholders’ MeetingThe Shareholders‘ Meeting is the Company’s highest authority. TheCompany strictly follows relevant laws and regulations, theArticles ofAssociation of Goertek Inc.and theRules of Procedure of Shareholders’General Meetingsto standardize the convening, holding and votingprocedures of shareholders‘ meetings. The Company provides online votingand other methods to enhance the convenience of small and mediumshareholders to participate in Shareholders’ Meetings and fully protect therights of small and medium shareholders. The Company engages lawyers towitness Shareholders‘ Meetings on-site, ensuring that the convening, andholding voting procedures of each Shareholders' Meeting are legal andcompliant, thereby effectively safeguarding the legitimate rights andinterests of the Company and all shareholders.
Board of Directors
As the Company's core business decision-making body, the Board ofDirectors is responsible for the Shareholders' Meeting and implements theresolutions of the Shareholders' Meeting. The Board of Directors strictlyabides by the laws and regulations, theArticles of Associationand theRulesof Procedure of Board of Directors, and performs important duties includingthe establishment of the Company's internal management organization, theappointment and dismissal of senior management, and the formulation ofthe Company's basic management system. Through in-depth discussionsand full communication, the members of the Board of Directors ensure thescientificness, timeliness and efficiency of decision-making, form resolutionson major governance and operating matters of the Company, supervise theimplementation of resolutions, and provide strong support for theCompany's sustainable, healthy and steady development, effectivelysafeguarding the legitimate rights and interests of the Company and allshareholders.
Special Committees of the Board of DirectorsTo enhance the professionalism and independence of the Board of Directors,the Company's Board of Directors has set up two Special Committees: theAudit Committee and the Remuneration and Assessment Committee. Actingin accordance with theArticles of Associationand the authorization of theBoard of Directors, each committee is responsible for key functions such asfinancial auditing, internal control supervision, executive remunerationformulation and performance appraisal, comprehensively supervising andguiding the Company's operations and management, and ensuring thecompliance and efficiency of related matters.
Supervisory BoardAs the Company's supervisory body, the Supervisory Board shall conducteffective supervision of major events, related party transactions, financialstatus, and the performance of directors and managers by the law, andissue review opinions. The Company has further standardized thesupervision process by formulating theRules of Procedure of theSupervisory Boardand other systems to ensure the standardization andeffectiveness of supervision.
Corporate GovernanceGoertek Inc. adheres to the principle of integrity in business operations, strictly abides by theCompany Law of the People‘s Republic of China,theSecurities Law of the People’s Republic of China,theCode of Corporate Governance for Listed Companies,theRulesGoverning the Listing of Stocks on Shenzhen Stock Exchangeand other relevant laws, regulations and normative documents and the requirements of regulatory authorities such as the China Securities Regulatory Commission, establishes and continuously improves thecorporate governance structure to further standardize the Company's operations and enhance the level of corporate governance.
1111
?This year, the Company held 5 Audit Committee meetings and 5
Remuneration and Assessment Committee meetings.?This year, the Company held5 Shareholders’ Meetings, including 4
extraordinary meetings, and reviewed and approved 37 importantproposals.
?This year, the Company held10 Board of Directors’ meetings, reviewed
and approved72 proposals, and the attendance rate of directors was100%
?This year, the Company held 8 Supervisory Board meetings,
reviewed and approved 45 proposals, and the attendance rate of
supervisors was 100%
Aboutthe Report
Chairman’sStatement
Responsibility in CultivatingMomentum for Growth
AppendixAboutthe Company
ESGManagement
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Board of Directors Independence and DiversityThe Company attaches great importance to the independence and diversity of the Board of Directors and believes that board members with diverse backgrounds can more effectively supervise and manage the Company's operations, thereby better protecting the long-term interests of the Company's stakeholders. When electing board members, the Company comprehensively considers factors such as age, gender, educational background, industry experience and professional qualifications to ensure the diversity and professionalism ofthe board member structure, so as to improve the scientificity and comprehensiveness of decision-making.
NamePositionGenderAgeEducationExpertise and SkillsMain Experience
Jiang BinChairmanMale59Master
Electroacoustic Industry Expert,Business Management Expert
Li YouboDirector, PresidentMale48Bachelor
R&D and Manufacturing Expert,Business Management Expert
As the founder of the Company, Jiang Bin has more than 30 years of experience in the electroacoustic industry andprofound experience in corporate management. He has won honors such as national/provincial model worker,leading entrepreneur in the electronic information industry, the highest award in science and technology ofShandong Province, and Qilu Outstanding Talent.Li Youbo has more than 20 years of experience in the
entire process of R&D and Manufacturing of components and
| complete products in the electronic information industry. He has served in various positions such as Engineer, Technical Manager, Head of Business Unit, Vice President, and President. He has rich experience in the electronic information industry and business management. |
Duan HuiluDirector, Vice PresidentMale
BachelorFinance and Accounting Expert
-cycle corporate financial management, covering accounting,
| fund management, financial strategy development and other fields. |
Liu YaochengDirector, Vice PresidentMale52Ph.D.
Strategic Planning Expert,Technology R&D Expert,Investment and M&A Expert
Huang YidongIndependent DirectorFemale60Ph.D.Optoelectronics Technology Expert
| Liu Yaocheng holds a Ph.D. in Materials Science and Engineering and a Master's degree in Electronic Engineering from Stanford University, as well as a Master's degree in Materials Science and Engineering from Tsinghua University. He has held positions at renowned companies such as IBM Semiconductor Research and Development Center, McKinsey & Company, etc. He has served as the head of the Company's strategy and investment department, the Central Research Institute and other departments. He has rich experience in strategic planning, technology R&D, and investment and M&A. |
| Huang Yidong is the Deputy Director of the Academic Committee and Professor of the Department of Electronic Engineering, Tsinghua University. He is also the International Member of the National Academy of Engineering, United States, fellow of the OPTICA, Executive Director of the Chinese Optical Society, Vice Chairman of the China Education Society of Electronics, etc. |
Jiang FuxiuIndependent DirectorMale56Ph.D.
Finance and Accounting Expert,
ESG and Governance Expert
Qiu MinIndependent DirectorMale50Ph.D.Optoelectronics Technology Expert
Jiang Fuxiu is the Professor and Ph.D. Supervisor of the Department of Accounting and Finance, Renmin UniversityBusiness School, and the Director of the ESG Research Center of the National Academy of Development andStrategy, Renmin University of China. He has served as an Independent Director of many listed companies, deeplyinvolved in the construction of corporate compliance governance mechanisms and sustainable development work.Qiu Min holds a Ph.D. in Electromagnetism from the KTH Royal Institute of Technology and Ph.D. in CondensedMatter Physics from Zhejiang University. He is the Vice President of Westlake University, the Dean of School ofEngineering, and Dean of Westlake Institute for Optoelectronics, fellow of the OPTICA, Fellow of the Chinese OpticalSociety, Fellow of the Chinese Society of Optical Engineering, Executive Director of the Chinese Society for OpticalEngineering, and Vice President of the Optical Society of Zhejiang and the Zhejiang Physics Society.
Aboutthe Report
Chairman’sStatement
Responsibility in CultivatingMomentum for Growth
AppendixAboutthe Company
ESGManagement
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Board of Directors and Executive RemunerationThe Company has institutionalized the alignment between executive compensation and sustainability performance by establishing sustainability-related KPIs. The assessment results are directly integrated into the executive remuneration system to ensure theimplementation of relevant management initiatives. Currently, sustainability performance indicators account for an average of over 20% of the total weighting in senior management evaluations, covering critical areas such as energy conservation and green and low-carbon, employment recruitment and cultivation, health and safety.The Company also regards safety issues as important Company-level matters, and lists production safety, information security and customs affairs incidents as red-line behaviors, and as veto items for executives' performance commitments. If such accidents occur, it willseriously affect the annual performance evaluation of executives, further highlighting the important position of safety in corporate governance.
Say on Pay
The Company'sRules of Procedure of Shareholders’ General Meetingsstipulate that the Shareholders' Meeting shall lawfully exercise its authority to determine the remuneration of directors and supervisors, thereby fully safeguarding shareholders' decision-making powerin compensation distribution. In the actual implementation process, the Remuneration and Assessment Committee of the Company's Board of Directors, in accordance with theImplementation Rules for the Remuneration and Assessment Committee, shall be responsible forformulating the directors’ remuneration policies, plans and standards, which will be implemented after the Board of Directors submits them to the Shareholders' Meeting for approval. In addition, the Remuneration and Assessment Committee regularly supervises andassesses the implementation of the remuneration plan. For details of the remuneration of directors, supervisors and senior management for this year, please refer to Section 4 "Corporate Governance" of the2024 Annual Report of Goertek Inc.
About Performance Evaluation and Incentive-Restraint MechanismThe Company has established and continues to optimize fair and transparent performance evaluation standards and incentive and restraint mechanisms for directors, supervisors and senior management in accordance with the Long-term Incentive AssessmentManagement Measures and other regulations. This mechanism is based on the performance evaluation indicators set by the Company, and conducts evaluations by integrating the assessment indicators of each stage and the work performance of relevant personnel.Moreover, depending on the severity of any violations, the Company will recover the amount of long-term incentives cashed out in the current year. The Company is committed to forming a balanced value distribution system to effectively achieve the alignment of theinterests of shareholders, the Company, and the individual interests of the core team.
The Company's Remuneration and Assessment Committee is responsible for formulating the long-term incentive and appraisal management plans, supervises the implementation of the plans and the approval of appraisal results.The Human Resources Department and the Finance Department are responsible for calculating the appraisal data and delivering incentives based on the appraisal results.ManagementStructure
The Company implements performance appraisal mechanisms along with incentive and constraint mechanisms for middle and senior management personnel and key backbones. The appraisal dimensions include personal performanceappraisal and key task completion, and the Company determines specific appraisal dimensions and weights according to the differences in the responsibilities of the incentive targets. If the appraisal target has major violations of regulationsand disciplines such as integrity and honesty or is responsible for major production and operation accidents, the Company has the right to deduct the amount of long-term incentives to be redeemed in that year.
MechanismRequirements
Under the guidance of the Remuneration and Assessment Committee, relevant departments such as human resources are responsible for specific appraisal work, developing performance appraisal reports and submitting them to theCommittee for review, which serve as the basis for calculating long-term incentives.Appraisal
Procedure
Aboutthe Report
Chairman’sStatement
Responsibility in CultivatingMomentum for Growth
AppendixAboutthe Company
ESGManagement
Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Information Disclosure and Investor Relations Management
The Company specifically established a department, equipped with professional teams, and duly performed the disclosure obligations in strict accordance with the provisions of Measures for the Administration of Information Disclosure of Listed Companies, RulesGoverning the Listing of Stocks on Shenzhen Stock Exchange, and Articles of Association, and discloses information as per the law, so as to ensure that the information disclosure is true, accurate, complete, timely, fair, concise, clear, easy to read, free from false statement,misrepresentations and material omissions. All shareholders were given equal access to the information. The Company has continuously improved the Insider Information Management Rules, strengthened the confidentiality of insider information, maintained the fairness ofinformation disclosure, and effectively protected the legitimate rights and interests of investors. The Company has designated Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily, and CNINFO (http://www.cninfo.com.cn) as the informationdisclosure media. In 2024, the Company disclosed a total of 181 announcement documents, to reveal its financial statements, operating information and other significant matters to shareholders and the public in a timely manner, ensuring transparency of information.Shareholder ReturnThe Company has always focused on its core business and actively shared the development achievements with investors while promoting its own long-term and healthy development. The Company strictly abides by the profit distribution policy of laws and regulations andtheArticles of Associationto continuously implement cash dividends. This year, the Company has paid cash dividends three times in total, with a total dividend amount of approximately RMB 850 million; the Company has also successfully implemented a share repurchaseplan, with a repurchase amount of approximately RMB 500 million.Investor Relations Management
To better serve investors, the Company has designated the Board Secretary as the person in charge of investor relationsmanagement, and have equipped a professional team to be responsible for related matters, including receiving shareholder visits,holding annual performance briefings, providing online voting platforms, and participating in strategy meetings. The Company’sofficial website has an investor relations column, and the Company responds to investor questions promptly through variouschannels such as the Shenzhen Stock Exchange Easy Interaction Platform and the investor hotline, ensuring unobstructedcommunication channels and building a fair and efficient communication bridge with investors and the public.
This year,the Company answered more than400 calls from investors, responded to more than300 questions from investors on the Shenzhen Stock Exchange Easy InteractionPlatform.the Company disclosed3 records of investor relations activities, and communicated withinvestors through various means such as telephone conferences, field research, and strategymeetings.
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Chairman’sStatement
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Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Risk ManagementGoertek Inc., adhering to the risk control concept of "effectively controlling risks and maintaining sustainable and healthy operations", builds a risk management framework based on internal control and compliance as the bottom line andimproves the risk management mechanism to enhance the risk awareness and management capabilities of all employees and continuously strengthen the recognition and response capabilities of all employees for risk prevention, effectivelymanaging various risks.
Composed of Business Units, as risk responders andmain responsibilities, independently identify businessrisks and design corresponding risk response plansFirst Line ofDefense
Composed of the Internal Control Department, mainlyresponsible for planning and supervising riskmanagement work, improving the risk managementsystem, identifying new risks, and continuously improvingthe effectiveness of risk controlSecond Lineof Defense
Composed of the Audit Department, mainly responsiblefor independent and objective evaluation of theeffectiveness of risk management and internal control,and continuously improving the risk management systemThird Lineof Defense
Risk Management Framework
The Company continues to improve the internal control management framework torealize the precise implementation of internal control functions of the Company,business group and platform, and to optimize risk identification, assessment andmanagement processes to enhance risk management capabilities. The Companydeeply integrates risk management into all business links through regularcollaborative promotion and refined closed-loop management, effectively reducingand avoiding operating risks. The Company has also established three lines ofdefense: Business Units, the Internal Control Department and the Audit Department,to ensure that the Company is legal and compliant, efficiently operated and assetsecured.
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Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Risk Identification
Effective Response
?ProblemGrouping?RiskDescription
?RiskClassification?RiskNumbering
Scientific Assessment
?Probability ofOccurrence?Degree of
Impact
?Assessment
Dimensions?Rating
Criteria
?Separation of
Duties?Accounting
Control
?Authorization
Approval?PropertyProtection
Continuous Improvement
?Clear
Responsibilities?ProgramDevelopment
?Review
Pull-Through?Improvement
Tracking
Internal Control Management Mechanism
The Company has formulated such policies asRisk Management Handbook, Identification and Management Process of ThreeRisk Elements, Process of Setting and Changing Risk Control Goals, Routine Process of Inspecting Risk Control, Risk ControlSampling Process, Special Improvement Process of Risk Control, further clarifying the processes of risk identification, analysis,processing, inspection, and improvement. Among them, the Company conducts centralized management and priority processingfor major risks to ensure the smooth achievement of the Company's strategic goals by planning and implementing risk mitigationand response measures in advance.The Company continues to deepen the risk internal control management mechanism, and to optimize and upgrade the riskinternal control management policy system, building a comprehensive and multi-level risk prevention and control network toaccurately identify, scientifically evaluate and dynamically monitor various risks throughout the entire operation cycle ofthe Company.The Company complies with the new changes in national policy orientation and market environment and deeply integrates intothe business operation process, creating a comprehensive closed-loop management system covering risk identification, scientificevaluation, effective response, and continuous improvement to identify potential risk factors and forming a list of risk issues.
The Company has established a "three-conference coordination" management system consisting of Professional Lines, BusinessGroups and the Company levels, and regularly holds internal control management exchange meetings to build a communicationpath for immediate escalation of problems and decisions. We focus on basic management optimization, closely monitor internalcontrol processes and potential risk points, and use the conference mechanism to improve decision-making efficiency and solveproblems, promoting flexible allocation of resources and close collaboration among team members
Company(Decision-makingconference)
IssueReporting
DecisionReportingBusiness Groups(Special conference)
Professional lines(Conference for internal control
management exchanges)
The Company has built a trade compliance system since 2020, ensuring business compliance through developing manuals,publishing processes, launching systems, and setting up teams. In 2023-2024, the Company promoted the implementation oftrade compliance requirements in various business departments, strengthened training to enhance compliance awareness,and introduced the Dow Jones database to enhance risk identification capabilities, ensuring the Company's operationalcompliance.
"Compliance builds foundation for a steady development" - Construction of the Company's Trade Compliance System
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Craftsmanship OpeningLinks to the World
Risk Culture BuildingThe Company continues to deepen the construction of the internal control system by optimizing the training content and strengthening the cultural promotion strategy, enhancing the employees' understanding and recognition of the internal control mechanism to ensure theimplementation of risk management measures. This year, the Company continued to carry out a series of training and cultural promotion work to further enhance the Company's internal control management capabilities.
Published 24 issues of internal control journals to create an internal controlatmosphere and enhance internal control awareness for all employeesSelected16 outstanding risk control cases to continuouslycontrol operational risksOrganized12 internal control special activities to promote internal controlinteraction across departments and strengthen training for internal controlknowledge and skills
Training MechanismThe Company integrates internal and external expert resources to invite industry lecturers and implement empowerment training programs for internal control professionalteams, management and front-line business personnel. We have comprehensively updated the content of the ten core courses covering internal control managementcapacity improvement, knowledge popularization and mindset innovation, to systematize the training framework to support the deepening and development of internalcontrol management.Culture Publicity
The Company uses a variety of media, including manuals, official websites, educational videos and professional journals, to fully explain the risk management concept toemployees, widely disseminate internal control management knowledge, continuously deepen employees' understanding and recognition of the internal control system, andcreate a positive internal control culture atmosphere.
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Green Smart ManufacturingPracticing High-Quality Development
Craftsmanship OpeningLinks to the World
Business Ethics
The Company strictly complies with theCivil Code of the People’s Republic of China,theCriminal Law of the People’s Republic ofChina,theAnti-Unfair Competition Law of the People's Republic of China,the Company Law of the People’s Republic of China,theAnti-Monopoly Law of the People’s Republic of China,the Anti-Money Laundering Law of the People's Republic of China, andother relevant laws and regulations of the regions in which we operate, and continues to improve internal policies related tobusiness ethics, includingthe Regulations on Rewards and Punishments for Employee Behaviors, and the Goertek Cadre StandardManual 2.0, etc., to regulate the behavior of the Company's employees and related parties (including suppliers) and jointly build acompliant and honest business environment.Business Ethics Management SystemThe Company has set up a cultural and ethical management structure and a Cultural and Ethical Committee, whose membersinclude the Chairman of the Board (Director of the Committee), senior managers of the Company, heads of all relevantdepartments, and cultural specialists. The Cultural and Ethical Committee is responsible for strengthening cultural ethics educationand publicity, promoting employee exchanges and improving the working atmosphere, and strengthening supervision, aiming tocreate a clean and upright working atmosphere.
Monitors and guides the work related to cultural and ethical construction, including trainingand publicity on cultures and ethics, employee communication and atmosphereimprovement, and regulation and supervision.
Cultural andEthicalCommittee
Sets up 21 working groups, appoints cultural officers, selects working group members of theCompany, and ensures that the work of culture and ideology is effectively undertaken andrealized in each department.Cultural andEthical WorkingGroup
Coordinates the management of cultural and ethicaldevelopment and promotes sector-specific matters.Cultural andEthical Committee
Office
Anti-Corruption and Anti-Bribery Management
The Company has formulated and issued theRegulations on Rewards and Punishments for Employee Behaviorsfor all employees,which puts forward specific behavioral norms for business activities, regulates the behaviors that employees should abide by, andprohibits violations including bribery, corruption and unfair competition, and requires strict implementation at all levels. We havepublicly released a statement on integrity and compliance on our official website, clarifying its "Zero Tolerance" attitude.To continue to consolidate the construction of the anti-corruption and anti-bribery system, the Company has issued supportingmanagement systems such as theGoertek Cadre Standard Manual 2.0. and the Cadre Prevented and Prohibited Behaviors,developed relevant integrity requirements for key areas and key links, and further clarified the standard requirements and rewardand punishment mechanisms for cadre behavior.
All employees are required to sign theIntegrity Commitment, promising to uphold the principles offairness and impartiality in business dealings with all relevant parties and to ensure that the interests of allparties will not be harmed due to the convenience of their positions.
AllEmployees
We attach great importance to the integrity behavior of cadres, regularly organize cadres to receivehonest education, hold integrity oath ceremonies, clarify the content of abiding by business ethics, andfurther enhance the honest work awareness of cadres.CadreGroup
Held 3 anti-corruption publicity meetings for high-risk departments to reiterate anti-corruption policiesand encourage employees to proactively report violations.
High-riskdepartments
Before establishing a partnership with suppliers, customers and third parties, relevant documents such astheIntegrity Agreementmust be signed to require all partners to fulfill the obligations agreed in thecontract during the business cooperation process, strictly abide by the laws and regulations of the placeof operation and the business ethics standards of the industry, and ensure that the Company's business iscarried out on a fair and just basis.
Partners
The number of integrity training
sessions for management staff
More than7,000 people
Signing rate ofIntegrity Commitment100%
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Business Ethics Audit Mechanism
The Company attaches great importance to the business ethics of employees andbusiness-related third parties, and requires all employees to abide by businessethics, comply with market rules and participate in fair competition, and adopts a"Zero Tolerance" attitude towards any illegal, unethical and business-standardbehavior.As for theEmployee Code of Business Conduct, the Integrity Agreement, Regulationson Rewards and Punishments for Employee Behaviors, and other issued standards,the Company regularly benchmarks against the standards issued by internationaland local industries and organizations to organize re-examination and revision,continuously improving internal management systems to enhance the level ofbusiness ethics management.The Company conducts business ethics audits around process conformity,compliance, and risk management, focusing on the business ethics performance ofsubsidiaries, supply chains, and manufacturing. In the process of business ethicsaudits, we pay attention to the compliance of business behavior, deeply explorepotential management problems and risks, and formulate improvement measuresfor the problems found. The executive department of the Company's auditmechanism reports the audit results and corrective measures to the Board ofDirectors and Management and summarizes the problems found to handle themopenly and transparently and make them public to employees through meetings,internal emails and other channels.
Complaint ManagementStrict measures are taken to address any inappropriate behaviors that breach theCompany’s guidelines, including commercial bribery, unauthorized disclosure oftrade secrets, and misappropriation, embezzlement, or theft of the Company'sassets. The Company has established and published reporting channels, andinformed persons can report violations by phone, email, etc. The Company's AuditDepartment reviews and handles business ethics issues at all levels.
Tel:
0536-3050999Address:
Audit Department, No.268 Dongfang Road, High-tech IndustrialDevelopment District, Weifang, Shandong Province, ChinaQR Code:
Fostering a Culture of Business Ethics
The Company attaches great importance to enhancing the business ethics
awareness of all employees and continues to improve the business ethics training
system, and, through on-site training, online video conferences, service account
tweets, and internal communication meetings, to provide employees with integrity
training, including anti-corruption, anti-commercial bribery, anti-embezzlement,
etc.
?The Company held an anti-corruption conference with the theme of "Continuous
Efforts to Fight Corruption and Promote Integrity" to convey expectations andrequirements for integrity operation and integrity management. More than 1,300people participated on site and more than 18,000 people were trained internally.
?The Company strengthened the supervision of employees' business ethics andintegrity education worldwide. For the Vietnam Factory, the Company conducted6 training sessions related to "Integrity Culture Building", covering more than1,000 employees.
?The Company set up an internal forum section "Integrity Goertek" to promote theintegrity and compliance culture and collect employee voices.
The Company also pays attention to suppliers' business ethics culture building,
regularly carries out publicity activities and conveys the Company's philosophy and
complaint channels to suppliers through the official website of the SRM (Supplier
Relationship Management) system, emails and other channels to continuously
improve suppliers' compliance awareness. For local suppliers of the Vietnam
Factory, the Company has planned an exclusive supplier conference to publicize the
Company's anti-corruption and anti-commercial bribery policies to jointly build
upright and uncorrupted partnerships.
The Company strictly adheres to the confidentiality policy regarding reportedmatters, strictly keeps confidential the personal information of the whistleblowerand the reporting materials provided, strictly prohibits anyone from retaliatingagainst the whistleblower in any form, and takes measures to protect thewhistleblower, including concealing the whistleblower's name, contact informationand other private information.The Company has established theAudit Work Management System, which outlinesthe reporting mechanism, whistleblower protection, complaint reward policies,voluntary disclosure policies, and other relevant provisions. Relying on this system,we can effectively identify and thoroughly analyze complaints and appeals, andpromptly verify and handle the reported issues.
Through the "Integrity Goertek" service account, 14 in-depth case analyseswere published, with a total reading volume of more than350,000 times.
Produced 3 warning education videos covering topics such as bribery, theft,and embezzlement by non-state employees, with a total of over5,000 views100% of employees were trained on integrity.
Email:
tousu@goertek.com
Complaint Reward
PolicyRewarding whistleblowers forproviding significant leads
Voluntary Disclosure
PolicyGranting lenient treatment to anyvoluntary disclosure of violationsand breaches of internal rules andregulations of company
Conduct business ethics audits for all operations atleast once every three years
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Intellectual PropertyProtectionGoertek Inc. attaches great importance to the strategic position of intellectualproperty rights in the innovation and development of the Company and regards itas a key factor in maintaining core competitiveness and promoting technologicalinnovation. The Company strictly abides by thePatent Law of the People's Republicof China,theTrademark Law of the People's Republic of China,theCopyright Lawof the People's Republic of China,theAnti-Unfair Competition Law of the People'sRepublic of Chinaand other laws and regulations, and has established a completeintellectual property management system. The Company continues to promoteintellectual property protection and the deep integration of intellectual propertyrights with technological innovation and market expansion to provide continuousimpetus for the high-quality development of the Company.The Company has established the Legal and Intellectual Property ManagementDepartment, which is fully responsible for the coordination and implementation ofintellectual property-related work. Its responsibilities include core work such as newtechnology proposal evaluation, patent application and protection, registration andmanagement of trademarks and copyrights, and intellectual property databasemaintenance. The Company has also established a complete intellectual propertymanagement system, including management policies, rules and regulations, andstrategic planning to ensure that intellectual property protection runs through theentire process of product design and development.At each key stage from product development to sales, the Company systematicallyconducts intellectual property compliance review and risk investigation to ensurethe legality and compliance of procurement, research and development,production, sales and other links, while respecting third-party intellectual propertyrights. In addition, the Company coordinates the intellectual property work of eachsubsidiary through unified standardized management to ensure the consistency andefficiency of the Company's internal intellectual property management, providing asolid guarantee for the Company's innovative development.We continue to strengthen our ability to create, use, protect and manage intellectualproperty rights, and won the title of "National Intellectual Property DemonstrationEnterprise". In the past three years, six patents have won the China Patent SilverAward and Excellence Award, reflecting our comprehensive competitiveadvantages in technological innovation and intellectual property management.
Information Security and Privacy Protection
Goertek Inc. strictly abides by the laws and regulations applicable to the place of operation, such as theCybersecurity Law of the People's Republic of China,theData SecurityLaw of the People's Republic of China,thePersonal Information Protection Law of the People's Republic of China,theEU's General Data Protection Regulation andthePersonalData Protection Law of Vietnam. The Company is committed to building an information security ecosystem with all-staff co-governance, intelligent defense and value co-creationto continuously optimize the information security and privacy protection management system, improve the security operation mechanism, and strengthen personnel training sothat information security and privacy protection become an important cornerstone for the Company's sustainable development.The Company has established an Information Security Management Committee, with the president as the chairman of the committee and the vice president of IT as the deputydirector of the committee, to comprehensively coordinate the strategic planning and implementation of information security. Each business group is equipped with a full-timeinformation security team, which is responsible for promoting the specific implementation of information security policies and regularly reporting work progress to the InformationSecurity Management Committee.
During the Reporting Period, there were a total of17,695 valid patents
Partial screenshot ofInformation Security ManagementManual
Strict Confidentiality
Priceless Information
Shared Responsibility
Proactive Prevention
Information Security
Philosophy
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Information SecurityGoertek Inc. has always implemented the information security philosophy of “Priceless Information, Strict Confidentiality, ProactivePrevention and Shared Responsibility”, and built a top-down information security governance system guided by theInformationSecurity Management Manual, the Provisions for the Operation and Management of the Information Security ManagementCommittee, and the Provisions for the Information Security Risk Managementand other management systems. The Companycomprehensively sorted out the information security risk panorama, established a security technology protection platform byclarifying the information security management policy, management objectives and management process, and effectivelyguaranteed the Company's internal information security. This year, the Company did not have any major data security incidents.The Company attaches great importance to information security risk management and control, strictly follows the ISO 27001information security management system standard, and has established a full-process management mechanism coveringinformation asset identification, risk assessment, review and improvement, incident response and disposal. By formulatingscientific management strategies, the Company ensures the continuous optimization and effective operation of the informationsecurity management system and realizes the closed-loop control of information security risks.
Privacy Protection Management
We strictly abide by the relevant laws and regulations on privacy protection, and effectively protect the privacy rights and interestsof all relevant parties and ourselves. We attach great importance to the protection of clients' and our business secrets, establishinga complete confidential information management system. We have formulated systems such as theInformation Asset IdentificationProcess and the Classified Management System for Confidential Information, conducted systematic impact analysis on customer,individual and enterprise-related information, and implemented classification and grading management, taking correspondingprotection measures for different levels of information to effectively reduce the risk of information leakage. This year, the Companydid not receive any confirmed complaints related to infringement of customer privacy and loss of customer information.The Company strictly protects client business secrets, complies with client confidentiality agreement requirements, and conductsfull-process standardized management of client privacy and project information to prevent leakage, loss or unauthorized access.The Company also requires suppliers to sign relevant confidentiality agreements, and through theSupplier Code of Conductandaudit mechanism, improves the level of information security in the entire chain, reduces the risk of leakage at the supply chain end,and establishes a trustworthy brand image to win the trust of clients and partners.The Company conducts information security inspections every six months. Regarding personal information protection, theCompany has formulated internal policies such as thePersonal Information Protection Management System and the PersonalInformation Security Emergency Planto clarify the management requirements for handling personal information and continues toimprove the privacy protection management system to effectively reduce the risk of data leakage.In 2024, the Company conducted two offline trainings and one online training on personal privacy protection, covering allemployees, and providing all-round protection for the personal privacy of employees and third parties.
Personal Data Protection Training
All factories were certified to theISO 27001 Information Security Management System
As of the end of 2024, the Company has completed encryption processing for25 internal systemsEffectively reducing the risk of leakage of sensitive information of employees and continuouslystrengthening data security protection through technical meansThe Company focuses on improving employees' information security awareness, integrating information security awareness intoemployees' work, and building a normalized learning mechanism, including learning topics such as the importance of commercialconfidentiality, the consequences of violations, and personal privacy protection to improve employees' information securityawareness and effectively train employees to become practitioners and guardians of information security.
Information Security Month Event
“One Lesson” event for information securityawareness education achieving a100%employee training coverage rateThe coverage rate of information securitytraining for newly recruited employees reached100%
Annual employee information security trainingduration>8 hours
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Green SmartManufacturingPracticing High-QualityDevelopment
Goertek Inc. is well aware that a harmonious and stable ecologicalenvironment is the foundation of economic and social development. Weregard green development as one of the key points of future strategicdevelopment, and are committed to minimizing the negative impact ofproduct manufacturing and operation on the environment, to help societyto respond actively to environmental risks and build a lifestyle in harmonywith nature.
Related United Nations Sustainable Development Goals（SDGs）
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Addressing Climate ChangeGoertek Inc. actively responds to the national "3060" dual carbon goals, continues to explore low-carbon development paths, and participates in global climate governance. The Company has incorporated climate change-related risks into theoverall risk management system, and referred to the Task Force on Climate-Related Financial Disclosure (TCFD) disclosure framework to manage climate change-related risks and opportunities. The Company has incorporated climate change-related risks into the overall risk management system and referred opportunities to better respond to the impact of climate change on us.
Governance
The Company's Board of Directors is responsible for overseeing ESG-related matters, including climate change-related risks and opportunities. The Sustainable Development Promotion Office is responsible for the management of climatechange-related risks and opportunities, of which the internal risk control department is responsible for identifying and assessing risks. The ESG-related persons in charge of each business group, functional department and key regional platformare responsible for identifying and managing specific climate change risks and opportunities, and formulating corresponding management systems and response measures for major risks and opportunities identified. The Company has includedclimate-related content in the medium- and long-term performance evaluation indicators of directors and senior executives.
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StrategyTo better address climate change, the Company actively identifies and assesses climate change-related risks basedon internal risk identification results and advice from external industry experts, and takes measures in all aspects ofoperations to respond to related risks.
We are fully aware of the necessity of low-carbon development, actively seize the market opportunities of greendevelopment, and improve our operational efficiency and strengthen high-quality development through our greentransformation. The main climate opportunities we have identified include:
Climate-relatedRisks
sResponse Strategies
Physical RiskChronic Risk
Climate change has led to rising temperatures, increasedfactories energy consumption and cooling costs, andsupply chains are vulnerable to natural disasters,increasing overall operating costs.
?Replace equipment to improveresilience against natural disasters.
Acute Risk
Climate change may bring about extreme weather andgeological disasters including storms, typhoons, floods,earthquakes, mudslides and other events, affecting thenormal operations of factories and transportation.
?Develop emergency plans related tosupply chain guarantees to respondto sudden natural weather eventsand meet the company's production,operation and transportation needs.Transition RiskPolicy Risk
Local low-carbon policies are tightening and regulatoryrequirements are increasing, leading to increasedcorporate management costs. The Company needs toinvest more resources in environmental protection andmeet compliance reviews.
?Actively follow up on national andlocal compliance requirements toformulate, update and implementvarious management measures.
Technical Risk
As the national low-carbon policies are graduallytightened and downstream clients are required to reduceemissions, the Company may need to switch to lower-carbon production technology in the short and mediumterm, which increases the Company's operating costs.
?Continue to reduce the power of
energy-consuming equipment,strengthen the research of recycledmaterials, and vigorously promotethe development and application ofclean technology.Market Risk
Under the influence of climate change, energy pricefluctuations have led to price increases for raw materials,equipment, transportation costs, labor costs, etc.,increasing operating costs.
?Continue to optimize suppliermanagement, expand the scale ofthe supply chain, ensure the stableoperation of the supply chain, andtake climate change risks intoconsideration.Reputation Risk
If business conducts fail to meet stakeholders’ expectationsfor the Company’s green and low-carbon development,the Company’s reputation and image may be affected,thereby affecting the Company’s market performance.
?Establish dedicated communicationchannels with stakeholders tounderstand their needs promptlyand make adjustments andresponses.
Climate-relatedOpportunities
DescriptionsPotential Impacts
Product and Services
By creating low-carbon products, innovatingservice models or increasing technological researchand development, we can respond to marketdemand and comply with policy trends, enhancethe Company's competitiveness and brand value,and focus on meeting the needs of clients,industries and regulations for sustainable solutions.
Potential Impact
?
Develop new revenue sources and reducereliance on traditional high-carbonbusinesses.
| ? |
Promote the popularization of low-carbontechnologies (such as bio-based materials)to reduce carbon emissions throughout thelife cycle.
Enhance consumer trust and brand loyalty.
Market
With the increasing demand for a low-carboneconomy in the downstream market, we canoptimize the Company's strategic positioningthrough policy incentives, new market developmentor asset layout to seize the opportunity of a low-carbon economy in advance, and make full use ofpublic sector support and regional marketdifferences to achieve growth.
??Accelerate the implementation of renewableenergy projects.
?Diversify market risks (such as multi-regionallayout).
?Enhance control over the industrial chain.
?Utilize green investment policies to expandinternational cooperation projects.
Resource Efficiency
Through technological innovation and processoptimization, we can improve the efficiency ofenergy, water, materials and other resources,reduce operating costs and carbon emissionintensity, and build a circular economy model.
?Save operating costs (such as reducingwater bills through water-saving equipment,reducing transportation costs through smartlogistics, etc.).
?Create additional income through wasterecycling.
?Promote the application of newtechnologies.
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Carbon Neutrality Roadmap
Risk ManagementThe Company recognizes that climate change risk is an important factor in corporate risk and has incorporated climate-related risks into the corporate risk management system for unified management. The Company identifies and monitorsclimate-related risks in all aspects of the Company's operations and continuously strengthens climate risk management capabilities. The Company will continue to monitor, evaluate and adjust the management system and response measurescorresponding to climate risks to reduce the impact of climate risks on the Company.
Metrics and GoalsThe Company adheres to the carbon reduction concept of reducing carbon emissions, improving energy efficiency and adopting sustainable production methods to set company-level emission reduction targets and implement refined carbonemission management, contributing to promoting green and low-carbon social development.
GoalsCritical Paths and Initiatives
?The proportion of renewable energy reaches more than 30%?Build a digital energy and carbon management platform to achieve real-timemonitoring andrefined management of energy and carbon data, and promote the reduction of carbonemission intensity and carbon emissionsShort-term goals（2025-2026）
?Strive to achieve the carbon peak within the operational boundaries by 2030 and achieve
carbon neutrality no later than 2050?Continue to improve energy efficiency, expand the proportion of renewable energy use, andcomprehensively promote green production methods to promote the low-carbontransformation of the entire value chainMedium- to long-term goals(2030-2050)
?Increase investment in renewable energy, and increase the proportion of
renewable energy use by building photovoltaic power plants and purchasinggreen electricity?Promote the use of high-efficiency energy-saving equipment
?Develop low-carbon products to reduce carbon emissions throughout the productlife cycle?Promote the circular economy model to improve resource utilization efficiency?Cooperate with suppliers to promote the upstream and downstream supply chaintojointly achieve carbon reduction goals?Establish a green supply chain system, giving priority to low-carbon and
environmentally friendly raw materials and corresponding partners?Promote industrial automation and digital transformation to improve production
efficiency and energy efficiency?Explore the application of cutting-edge technologies such as carbon capture and
carbon storage to help achieve carbon neutrality goals
?Complete the optimization and upgrade of the energy management system to
realize real-time monitoring and analysis of energy consumption data and
optimize energy consumption management?Carry out energy-saving technology transformation to optimize production
processes and reduce energy consumption per unit product
Optimize energystructure
Improve energy
efficiency
Promote greenmanufacturing
Enhance supply chain
management
Technological innovation and
digital transformation
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Carbon Neutrality TrainingThis year, the Company organized a series of carbon neutrality trainings and invited third-party professional institutions to give lectures, deeply analyzing thecore concepts and practical paths of carbon neutrality from multiple dimensions such as carbon neutrality methodology and practical paths, energy-savingand carbon reduction technologies and application scenarios, dual-carbon management strategies and implementation guarantees. By combining theory withpractice, we deepened employees' understanding of the core concepts of carbon neutrality, improved their green and low-carbon management capabilitiesand execution, laid a knowledge foundation and provided talent guarantees for achieving sustainable development.
Since 2017, we have been carrying out ISO 14064 carbon inventory work tounderstand our carbon emissions and continuously track and review theimplementation and completion of the goals. This year, we have completed carbondata inventory for Weifang, Rongcheng, Dongguan and Vietnam factories, coveringsome Scope 3 carbon emissions, and obtained ISO 14064-1 third-party greenhousegas verification statement.We focus on carbon reduction work in Scope 1 and Scope 2 production links,including improving production efficiency, reducing energy consumption ofproduction equipment, and optimizing energy structure, and continue to reducecarbon emissions at the operational level (for details, please refer to the "EnergyManagement" section). We also continue to improve carbon reduction awarenessand management level through carbon emission verification work, employeecarbon emission training and other measures, achieving initial results in achievingdual carbon goals.In the future, we will continue to be guided by dual carbon goals, deepen greentransformation, promote low-carbon development of the entire value chain, andcontribute to addressing climate change and achieving sustainable developmentgoals.
This yearThe Company won the 2024 Outstanding Green and Low-Carbon Contribution Award atthe 13th “Golden Intelligence Award” hosted by JRJ.com
This yearThe proportion of renewable energy use reached
23.5%
Carbon emissions within the operating boundary decreased by
26.8% , compared with 2022.
The energy management system was optimized and upgraded,and energy consumption data was monitored in real-time.
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Energy ManagementThe Company adheres to the energy management policy of “Compliant Energy Use,Efficient Emission Reduction, Full Participation, and Green Development”, activelypromotes energy-saving and consumption-reduction transformation projects,builds energy digitalization platforms, and continuously improves the use ofrenewable energy and energy efficiency.The Company has built a three-level energy management structure includingdecision-making, planning and execution levels to integrate, standardize and guidethe Company's energy management activities and promote the realization of theCompany's energy management goals.
?Responsible for supervising energymanagement-related matters?Review energy-related planning, monitor theimplementation of annual key performanceindicators, and evaluate the achievement ofgoalsDecision-making Level
PlanningLevel
ExecutionLevel
Driven by the efficient energy management system, the Company actively carries
out special transformation of energy conservation and emission reduction:
According to the requirements of theElimination Catalogue of High-Energy Consumption and Outdated Electromechanical Equipment(Products), in the selection of production process systems, auxiliaryproduction systems and ancillary production system processtechnologies and equipment, it is strictly prohibited to select productsthat are explicitly prohibited and eliminated by the state.
According to theMinimum allowable values of energy efficiency andvalues of efficiency grades for motors (GB 18613-2020), for small andmedium-sized motors, low-voltage motors with energy efficiency notless than level 2 are selected, and newly purchased motors must uselevel 1 energy efficiency.
The newly purchased chiller meets the level 1 energy efficiencystandard, and the newly built refrigeration room must be equippedwith a magnetic levitation chiller according to the standard.
80 energy-saving projects were implemented, covering five major
systems: lighting/motor/air compression/HVAC/production processwith a total investment of more than RMB20 million
Annual energy saving: 3,931 tons of standard coalAnnual emission reduction:
17,422 tons of carbon dioxide
equivalent
This year,
Optimizing Use of Resource
The Company has comprehensively improved resource utilization efficiency to promote green and low-carbon development by building an efficient energy management system, promoting water conservation and recycling, and practicing theconcept of circular economy.
?Responsible for setting energy management
goals, improving energy management processes,and providing support and guidance to theexecutive level?Responsible for collecting and analyzingfeedback from the executive level, deeplyexploring energy-saving potential, and providingsolid data support for the Company's energymanagement planning and decision-making?Each business group has an energy
management team responsible for implementingspecific energy-related goals and formulatingphased tasks based on actual production toensure the continuous optimization and efficientoperation of the Company's overall energymanagement
Operation Energy ConsumptionManagement
Based on the ISO 50001 energy management system, the Company has established twomajor improvement directions: "stable and efficient energy supply" and "continuousimprovement of energy-saving management", and formulated management systemssuch as theEnergy Review Management System,theGreen Electricity DemandManagement Process, and theEnergy-Saving Project Management Policy, to carry outall-round management of "energy demand - energy guarantee - energy efficiencycontrol - energy carbon evaluation", to ensure the standardization and effectiveness ofenergy use, improve the efficiency of energy utilization, and provide strong support forachieving sustainable development goals.This year, the Company updated and improved the energy management standards,covering plant energy-saving design, high-efficiency power room construction,production/office energy control and other aspects, to ensure that every link fromsource design to production operation has rules to follow, to achieve the coordinationand optimization of the entire chain of energy management, and to improve the level ofrefined energy management.This year, the Company successfully passed the ISO 50001 - Energy ManagementSystem recertification audit.
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NumberCategoryNumber of projectsAnnual energy saving/Ton of standard coalAnnual carbon reduction/Ton of CO2 equivalent
1Lighting143.4 15.42Motor21529.3 2,369.33Air Compression211,269.2 5,266.74HVAC9429.4 1,919.95Production Process151,699.7 7,850.9
Special TopicDigital Intelligent Control Improves Energy Utilization Efficiency
This year, Goertek Inc. actively carried out several digital control projects through technology upgrades, equipment transformation and intelligent control applications, effectively reducing the loss in the energy production and transmission process, and implemented adynamic on-demand energy supply strategy based on the actual operation of the equipment to effectively improve energy utilization efficiency.The energy-saving results achieved by the Company through various digital control projects are as follows:
?Vietnam Factory high-efficiency refrigeration room: The project design combines high-efficiency equipment, low-resistance pipelines and intelligent control technology. The refrigeration room's year-round energy efficiency ratio farexceeds the leading standard?Vietnam Factory first-level compressed air station: The project adopts the concept of a high-efficiency air compressor room for design and construction, and the compressed air station reaches the first-level energy efficiency level?Weifang Factory refrigeration room automatic control system upgrade: According to the energy efficiency monitoring and classification standards of high-efficiency air conditioning refrigeration room system, the refrigeration room isupgraded and renovated intelligently. After completion, the refrigeration room reaches the first-level energy efficiency level
EnergySupply
?Energy consumption reaches "zero" and the production line automatically cuts off power and gas: by intelligently identifying the status of the production line, it automatically delays the shutdown after the standby state continues for aperiod of time, and accordingly reduces or closes the air pressure of the line to achieve the dual benefits of saving electricity and gas.?Big data automatic adjustment of combined air conditioners: Based on the data collected by the sensor, combined with the presettemperature and humidity values and real-time conditions on site, precise regulation can ensure that thetemperature and humidity of the workshop are constant within the set range while ensuring maximum energy utilization efficiency.?Air-cooling unit & natural cooling intelligent switching: During winter cooling, intelligent switching technology is used to realize automatic switching between air-cooling modules and natural cooling, solving the problem of untimely manual
switching and excessive waste of energy.EnergyDemand
?This year, the Company continued to promote the construction of the energy management system. By the end of 2024, the Company has completed the construction of five factories in Weifang, Qingdao, Rongcheng, Dongguan and
Vietnam, covering a total of 46 energy subsystems and connecting more than 12,000 energy metering instruments. The Company plans to build a Company-level energy-carbon digital management system in 2025, realizing multiple
functions such as energy cockpit, energy efficiency management, energy-saving project management and carbon emission management, promoting efficient use of energy and cost control, and promoting the Company's low-carbon
development.
Continue tobuild an energyand carbondigital systemto promoteefficient use of
energy
Energy-Saving Technological Transformation Results
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In May 2024, the Company focused on the theme of "green transformation and energy conservation" and held an EnergySaving Publicity Week and a National Low Carbon Day special event, covering more than 3,000 employees. Through in-depth work site exploration of energy-saving potential, the Company integrated green and low-carbon concepts into dailywork practices to ensure that energy management work was implemented, effectively promoting the steady progress of theCompany's energy conservation and consumption reduction work.
Carry out special activities for Energy Saving Publicity Week and National Low Carbon Day
Total purchased renewable electricity161,172 MWh
Weifang Goertek Electronics Co., Ltd passed theShandong Province’s “Provincial Green Factory”
Certification
The high-efficiency refrigeration machine room ofGoertek Electroacoustic Park Phase I won the thirdprize in the second "Master Cup" high-energy-efficiency air-conditioning system engineering
competition
Total renewable electricity generated byphotovoltaics52,814 MWhAwarded by China Business Journal“2024 Outstanding Performance Enterprise inEnergy Digital and Intelligent Transformation”
Weifang Factory won the honorary title of"Advanced Energy Saving Unit" of Weifang City
in 2023Weihai Rongcheng Factory was awarded thehonorary title of “Weihai Green Factory” in 2023
Renewable Energy UseThe Company is committed to promoting the application and management of renewable energy in operations, continuouslyincreasing investment in renewable energy facilities in various factories, and actively participating in green electricity markettransactions. The Company also fully utilized the roof space of the park to successfully build a solar photovoltaic power station witha total installed capacity of 51.3 megawatts, and plans to further expand the scale of photovoltaic power generation tocontinuously optimize the energy structure and improve the utilization rate of renewable energy.
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Water resources management system establishment?Establish a sound water resources management system. The Weifang Factory plans to obtain AWS (Alliance for Water
Stewardship) water resources certification in 2025.
Water resource efficiency improvements?Improve water use efficiency by optimizing production processes, equipment modification, water balance testing, etc.
Water resources monitoring analysis?Establish a monitoring system for water consumption and wastewater discharge, and conduct regular data analysis andreporting
Increasing water conservation awareness?Regularly carry out water-saving publicity and training activities to increase water-saving awareness and participation of
all employees
This year, the Company actively carried out relevant work based on water-saving planning and water resources managementgoals, and continued to promote water-saving culture and improve water resource utilization efficiency through measures such asgradually replacing high-water-consuming facilities, upgrading power water management, reusing reclaimed water, andstrengthening water-saving awareness training.
?Monitored the water usage trends of key water equipment by installing additional metering
instruments?Upgraded power water management to increase water concentration and reduce wastewaterdischarge and new water consumption
Key waterequipmentcontrol
?Gradually replaced old and high water-consuming facilities with new water-saving appliances, such
as water-saving toilets, water-saving faucets, automatic sensor flushing devices, etc.?Established a reclaimed water treatment station to treat domestic sewage and reuse it for greening
irrigation and toilet flushing. The water reuse volume in 2024 was 164,000 tons.Domesticwater control
?On the occasion of the 32nd "World Water Day" and the 37th "China Water Week", the Company
actively carried out a series of water-saving publicity activities, distributing learning materials,
organizing the viewing of water-saving videos and other activities, showing typical examples and
valuable experiences of water conservation, and enhancing employees' awareness of water
conservation, water love, water cherishment and water protection.?In May 2024, the Weifang Water Conservation Management Office and eight mainstream media went
deep into the Company to promote water conservation work and filmed promotional videos for our
outstanding water conservation cases.Water savingcampaign
?Water balance tests were conducted in key water-using plants, and the test results showed that the
comprehensive utilization rate of water resources in the plants was high. Meanwhile, as a key water-
using enterprise, the Company participated in the exchange training and summary meeting of the
water balance test project for key water users organized by the government, and through the sharing
of water-saving technologies and recycling experience among enterprises, we stimulated innovation,
promoted the overall improvement of the industry, and promoted the efficient use of water resources
and sustainable development.Waterbalance test
?To achieve efficient and sustainable water resource management, the AWS Standard certification of
Weifang Factory was officially launched this year, demonstrating the Company's commitment and
actions in water resource management. The certification is planned to be completed in 2025.AWS Standardcertification
Water Resource Management Goals
Water Resource ManagementThe Company attaches great importance to water resource management, strictly abides by theWater Law of the People’sRepublic of China,theWater Pollution Prevention and Control Law of the People's Republic of Chinaand other laws andregulations, and formulates internal water resource management systems and water resource management goals, and promoteswater resource management construction by standardizing equipment water use and domestic water use.
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Circular EconomyThe Company practices the concept of circular economy, continues to pay attention to the compliance of waste treatment and develop the circular economy, as well as green and low-carbon products and services that meet market demand, to reduce the impact of wastelandfills on the environment.Waste Management
The Company is committed to reducing waste generation from the source, continuously promoting the comprehensive management of waste harmlessness, resource utilization and reduction, promoting circular economy and green development, strictly following therequirements of laws and regulations such as theLaw of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes,theAdministrative Measures for the Prevention and Control of Environmental Pollution by Electronic Waste,and theAdministrative Measures for Hazardous Waste Transfer, has established a management system with theWaste Management Processas the core. This year, with the support of the information system, the Company has improved the recycling mechanism throughthe informatization of the entire process of waste storage, classified storage and treatment, ensuring 100% compliance in waste disposal.
Non-hazardous Waste Disposal Process
Hazardous Waste Disposal ProcessInbound andRegistration
ClassifiedTemporaryStorage andProtection
OutboundandDisposal
Ledger andReport
TemporaryStorage andTransshipment
Recycling andDisposal
LedgerManagement
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Waste RecyclingThe Company actively practices the concept of circular economy, through innovative green design, selection of environmentallyfriendly materials and creation of a closed-loop resource system, and comprehensively promotes the efficient utilization andrecycling of materials to build a more resilient circular economy system.
Develop Green Design?Established a supplier removable packaging development project to reduce damage to packaging materials
Select Environmental Friendly Material?Prioritize the use of renewable, degradable or low-carbon footprint raw materials to reduce negative impact on the
environment?Promote suppliers to use environmentally friendly materials to ensure resource consumption is reduced from the source
Create a Resource Closed-Loop System?Promote the recycling and reuse of plastics and other materials as well as suppliers’ complete packaging, includingcorrugated boxes, covers, wooden pallets, etc.?Work with consumable suppliers to use recycling technology to replace or reprocess the raw and auxiliary materials usedin some molds to reduce the waste of resources caused by new purchases
This year, the Company actively explored ways to recycle waste and continued to promote the zero-waste landfill project.Through measures such as 100% reuse of workpiece trays and transferring waste to qualified professional processing units,the Company ensured that waste was effectively managed and reduced waste generation from the source.By the end of 2024, the Company had obtained 5 "zero landfill" platinum certifications, covering a production area of 1.2583million square meters, a year-on-year increase of 5.5%. The Company plans to continue to carry out platinum-level zerolandfill certification in 2025 to achieve a 100% waste conversion rate for factories that have obtained zero landfill certification.In the future, the Company will continue to reduce the incineration and landfill of waste, increase the reuse rate of waste, andpromote resource recycling.
Launch zero-landfill projects to expand waste recycling
Zero Waste to Landfill Certification
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Protecting Ecological EnvironmentThe Company implements the management guideline of “Compliance with Laws and Regulations, Pollution Prevention, Health and Safety Protection, full participation, promotion of sustainable development”, and continues to optimize theenvironmental management structure and improve internal management policies and processes to the effective control of environmental risks. The Company has prepared an emergency plan for sudden environmental incidents and filed itunder the requirements of the local environmental protection department. We regularly conduct environmental risk identification and assessment, covering production processes, equipment operation, raw material use and other links. Byintroducing cutting-edge environmental protection technologies and equipment and other measures, the environmental risks brought by pollutant emissions are effectively reduced. This year, the Company did not have any major environmentalincidents or receive any major administrative penalties from relevant departments such as the ecological environment.As of the end of 2024, the Weifang, Rongcheng, Dongguan, and Vietnam factories have obtained ISO 14001 environmental management system certification.
Pollutant Emissions
The Company always maintains a high sense of social responsibility and environmental awareness in wastewater and waste gas management, ensuring that all emissions are legal and compliant, and reducing pollutant emissions by upgradingwastewater and waste gas treatment facilities, strengthening equipment inspections, and adopting low VOCs (Volatile Organic Compounds) content substitutes.
Wastewater Discharge
The Company strictly abides by theWater Pollution Prevention and Control Law of the People's Republic of Chinaand other laws and regulations, by formulating a wastewater management system, standardizing the discharge standards,testing frequency and other requirements of wastewater pollutants and the treatment process to ensure that wastewater pollutants meet the discharge standards and reduce the impact on the environment. The Company's production processdoes not use large-scale industrial water. The main water resource consumption comes from domestic water, and it does not harm the waters in the surrounding environment.Wastewater TypePollutant ComponentsDisposal MethodsDomestic wastewater
COD, BOD, SS, ammonia nitrogen, animal and plant oils, total nitrogen, totalphosphorus, etc.
The Company discharges the wastewater into the urban sewage network after stable treatment in septic tanks and greasetraps. To ensure the stable operation of the facilities, the Company has established an inspection mechanism andcommissioned qualified third-party professional organizations to conduct regular inspections and maintenance.Industrial wastewater
BOD, COD, SS, petroleum, ammonia nitrogen, etc. contained in electroplatingwastewater and dicing wastewater
The Company treats the wastewater at the sewage treatment plant and discharges it into the urban sewage network after it meetsthe standards. The Company has set up online monitoring devices to monitor the status of industrial wastewater in real-time.
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Waste Gas Emissions
The Company strictly complies with theLaw of the People’s Republic of China on the Prevention and Control of AtmosphericPollution, Comprehensive Emission Standards of Regional Air Pollutants in Shandong Provinceand other laws and regulationsapplicable to the location of its operations. We also strictly enforce theIntegrated Emission Standard of Air Pollutants (GB 16297-1996), Technical Specifications for Monitoring Site Setting of Waste Gas from Stationary Pollution Sources (DB37/T3535-2019)andother standards for the waste gas management.
Waste gas management goals:
The Company gradually reduces the emission concentration of VOCs,particulate matter, tin and its compounds to5% below the limit by 2030.
The Company uses high-efficiency treatment processes such as double-stage activated carbon adsorption technology, RTO(Regenerative Thermal Oxidizer) and RCO (Regenerative Catalytic Oxidizer) to treat waste gas emissions such as VOCs,particulate matter, tin and its compounds generated in the production process, focusing on solving the problem of the source ofwaste gas emissions.
Before the operation period, the Company strictlyimplements the national environmental protection"three simultaneous" system for new construction,reconstruction and expansion projects to ensure thatpollution prevention and control facilities weredesigned, constructed and put into use simultaneouslywith the main project.
Waste Gas Compliance Emissions
During the operation period, the Company regularlytests and continuously monitors waste gas emissionsto ensure that the emission of all air pollutantscomplies with relevant legal provisions.
This year,the Company's waste gas emissions reached635,000 cubic meters, andall types of pollutants were 100% compliant.
The Company has launched a clean air project to systematically identify VOCs emission reduction opportunities through on-siteprocess operation identification, raw and auxiliary material sorting, and pollution source investigation. The Company has upgradedthe VOCs treatment facilities and fully adopted low-VOCs substitutes to achieve VOCs emission reduction. In the future, theCompany will continue to optimize process flows and environmental protection facilities to further reduce VOCs emissions.
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Biodiversity
The Company conducts regular ecological assessments on all new projects to ensure that development activities do not infringe on ecologically sensitive areas. Around the factory, the Company plants native tree species to create a habitat for wild animals and plants. In theoffice area, the Company's plant walls and roof gardens provide a haven for birds and insects, helping to balance the ecosystem. At the supply chain level, the Company emphasizes sustainability, works with suppliers to comply with environmental regulations, promotesthe use of environmentally friendly materials and technologies, and leads the supply chain to green transformation.
On March 12, 2024, the Company held an Arbor Day event with the theme of "Participate in green actions and build a better home together", which helped build biodiversity and promoted green ecology and sustainable development.
Carry out green actions and build an eco-homeland
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Chemicals ManagementThe Company is committed to designing and manufacturing healthy and safe products. In all aspects of the chemical life cycle, we strictly abide by the relevant laws and regulations of the international and operating locations, meet the requirements of customers forrestricted substances, conduct testing on chemicals used in all products, and manage chemicals with high standards, in order to reduce, control and avoid the impact of harmful substances on employee health and the environment.The Company strictly abides by theRegulations of the People's Republic of China on the Administration of Controlled Chemicals,theCatalogue of Hazardous Chemicals,theRegulations on the Safety Management of Hazardous Chemicals,theRegulation on theAdministration of Precursor Chemicals, andtheMeasures for the Administration of Hazardous Chemicals Registrationand other laws and regulations applicable to the operating location, organizes an internal professional compliance team to continuously track andidentify its revisions, formulates process documents such as the Chemical Management System, standardizes the management of chemical import, procurement, handling, use, storage, and waste, and ensures the compliance and safety of chemical use.The company continues to pay high attention to restricted substances in chemicals used in manufacturing processes, sorts out customer requirements and compilesRestricted Substances and Requirements for Customer Process Chemicals, and combines the requirementsof RBA (Responsible Business Alliance) to identify and control restricted substances during the chemical import stage. This year, the Company did not have any chemical-related safety accidents.The Company systematically manages each process of chemical management and focuses on the following aspects:
Storage?System Monitoring：
?Set up a chemical storage management system to monitor the inbound and outbound chemicals and the storage
capacity of the warehouse in real time?When the chemical storage capacity exceeds the default value, the system automatically issues an alert?Environmental Detection：
?Equip combustible gas and toxic and harmful gas alarms in chemical storage areas to monitor the concentration of
toxic substances in the environment in real time?Prevent potential harm to employees’ health caused by chemicals through alarm monitoring?Classified Storage：
?Chemicals are stored in different areas according to their hazardous properties.?For flammable and explosive chemicals, explosion-proofstorage areas are set up, and door interlocks, staticelimination devices and combustible gas detectors are configured.?The combustible gas detector is linked to the automatic fire alarm system to monitor the storage of chemicals in realtime and promptly identify and handle safety hazards.?When storing liquid chemicals, secondary anti-leakage trays are equipped to prevent environmental pollution or safetyaccidents caused by chemical leakage.
Application?System Supervision：
?Establish theChemical Receipt and Disposal Registration Systemto supervise the use of chemicals?Set SOP (Standard Operating Procedure) for chemical use to standardize operations?Training and Protection：
?Conduct special training on chemicals every quarter, covering all chemical operators to improve safety awareness andoperational skills?Require strict compliance with SOPs during the use of chemicals, including operators wearing gas masks, corrosion-resistant gloves and other labor protection supplies to ensure personal safety?Supervision and Inspection：
?Closely monitor the use of chemicals in each factory to ensure compliance and safety of chemical use?Regularly conduct safety inspections and control of potential hazards related to chemicals, and sets deadlines for
corrections of non-conformities?Verify the completion of rectifications due to expiration to ensure that rectification measures are implemented in placeand safety hazards are eliminated
In addition, the Company has established process documents such as theEmergency Management System, Chemical Leakage Emergency Plan, and Chemical Leakage Site Response Plan, which clarify the handling process and measures for chemical leakage andemergencies. An emergency response and rescue team has been established to quickly respond to emergencies and take effective measures to minimize risks and losses. At the same time, the Company has formulated an annual emergency drill plan and carried outnormalized emergency drills. Each emergency response and rescue team organizes at least two chemical leakage simulation emergency drills per year to improve accident response capability.
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Hazardous Substance ManagementThe Company strictly manages hazardous substances and complies with relevant domestic and international laws and regulations on hazardous substances and chemicals in electronic and electrical products and sets standards for the management of customers'restricted substances and hazardous substances. We have established management rules such as theGoertek Restricted Substances Specification,theGoertek Green Product Marking Specification,theHazardous Substance Process Management Specification forSuppliers, theIncoming Environmental Testing Monitoring Operation Manual,theProcess Environmental Testing Monitoring Operation Manual,and
theShipping Environmental Testing Monitoring Operation Manual. We conduct hazardous substance testing andmonitoring on all components, raw materials, auxiliary materials, packaging materials and finished products used in the production process.The Company's restricted substances mainly include carcinogens, mutagenic and reproductive toxic substances and other substances that cause serious harm or impact on human health and the environment, as well as substances regulated by laws and regulations. TheCompany gives priority to the management of highly toxic substances (such as SVHCs substances of high concern, CMR carcinogenic, mutagenic and reproductive toxic substances, and PAHs polycyclic aromatic hydrocarbons) according to their harmfulness, and takescorresponding measures to ensure the safety of employees and prevent work-related diseases.
Design?In accordance with laws, regulations and client requirements, the Company integrates green and environmental
protection concepts into product design, does not use hazardous substances prohibited by laws and regulations, andreduces the generation of pollutants to reduce the impact on the environment and health.
Manufacture?The Company's chemical laboratory has passed the ISO/IEC 17025 Laboratory Accreditation. Before the materials enterthe warehouse, they must be tested under theIncoming Environmental Testing Monitoring Operation Manual
?Entrust a third-party professional organization to conduct an independent assessment of our hazardous substances toensure that they meet internal standards and regulatory requirements
Procurement?The Company investigates suppliers’ hazardous substance management capability and conducts on-site audits. Once thesuppliers meet Goertek’s baseline on green products and sign the agreement, the suppliers should be qualified and enterGoertek’s supplier chain.?Suppliers must provide third-party environmental testing reports such as RoHS, halogen, organotin, PAHs, VOCs, MSDS(Material Safety Data Sheet) and evidential technical information to confirm that their materials meet the Company'shazardous substance restriction standards. If the requirements are not met, the material cannot be imported.
Non-conformity Control?Comprehensive processes and rules are in place for handling non-conforming products, including theOperation Manualfor Handling Environmentally Abnormalities and Non-conformities, which stipulates the details of the handling processsuch as environmental abnormality and non-conformity scenarios and definitions, isolation of environmentally non-conforming materials, root cause analysis and corrective actions of abnormality, disposal of environmentally non-conforming materials, and supplier penalties.?Since the establishment of the Company, there has been no accident involving hazardous substances exceeding the
standard.The Company's smart wearables, virtual/augmented reality, smart wireless headphones and other products all cooperate with customers to complete the verification of non-mandatory standards such as no specific hazardous substances, wearing safety, andbiocompatibility.By the end of 2024, the factories in Weifang, Qingdao, Rongcheng, Dongguan, and Vietnam have achieved 100% coverage of IECQ QC 080000 Hazardous Substance Process Management System Certification. Meanwhile, the factories in Weifang, Rongcheng, andVietnam have all passed the Green Partner Certification for specific clients.
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Hazardous Substance Management StandardsThe Company's internal hazardous substance management standards cover the requirements of laws and regulations and are stricter than regulatory requirements, including RoHS, halogen, REACH, CP65, POPs, battery directive, packaging directive, VOCs, etc. Therestricted substances controlled in the standards are divided into prohibited substances and reportable substances. In response to updated laws and regulations, the Company identifies and takes stricter control measures in advance. Regarding RoHS exemption 6(c), wehave reached a consensus with some clients to ban the use of lead-containing copper alloys in watches, bracelets, headphones and other products in advance to ensure that the products meet higher environmental standards.The Company has identified and strictly complied with relevant laws, regulations, standards, and requirements related to hazardous substances, including:
?Administrative Measures on the Restriction of the Use of Hazardous Substances in Electrical andElectronic Products?Limit of Harmful Substances of Industrial Protective Coatings(GB 30981-2020)?Limit of Volatile Organic Compounds Content In Adhesive(GB 33372-2020)?Limits for Volatile Organic Compounds Content in Cleaning Agents(GB 38508-2020)?Limits of Volatile Organic Compounds (VOCs) in Printing Ink(GB 38507-2020)China
?Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and ElectronicEquipment(2011/65/EU)?Directive on Waste Electrical and Electronic Equipment (WEEE)(2012/19/EU)?Amending Directive 94/62/EC on Packaging and Packaging Waste(2018/852/EU)?Regulation Concerning Batteries and Waste Batteries((EU)2023/1542)?EU - Regulation on the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH)((EC) No 1907/2006)?EU - Regulation on Persistent Organic Pollutants (POPs)(2019/1021/EU)?French AGEC Law - Law Regarding a Circular Economy and the Fight Against Waste(No.2020-105)?Swedish Chemical Tax Act on Electrical and Electronic Products (2016:1067)?EC Regulation on Substances that Deplete the Ozone Layer(2037/2000/EC)?EU Biocidal Products Regulation(EU No.528/2012)?EU Timber Regulation(No.995/2010)
EU
?Consumer Product Safety Improvement Act (CPSIA)?Safe Drinking Water and Toxic Enforcement Act(1986)?Canadian Environmental Protection Act (CEPA)(1999)?Toxic Substances Control Act (TSCA)(2016)?Toxics in Packaging Clearhouse (TPCH) Model Legislation(2021)?Washington State Children's Safety Products Act (CSPA)
NorthAmerica
?Chemical Substances Control Law?Japan Printed Circuit Association - Limitation of Chlorine and Bromine Content in Printed Circuit Boards(PCBs)(JPCA-ES-01-1999)
Japan
?Prohibition of Certain Hazardous Substances in Consumer Products (PoHS)(2021)Norway
?International Electrotechnical Commission - Limitation of Halogen Content in Materials for PrintedBoards and Other Interconnecting Structures(IEC 61249-2-21)?Material Declaration for Products of and for the Electrotechnical Industry(IEC 62474-2018)?Montreal Protocol on Substances that Deplete the Ozone Layer?Global Automotive Declarable Substance List (GADSL)?Stockholm Convention
Others
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The Company has established a complete hazardous substance management system and takes the following measures to ensurethat the use of chemicals complies with legal and regulatory requirements and minimize potential risks.
The Company has established a hazardous substance declaration system to review all chemicals toensure that their use does not conflict with applicable laws and regulations. Before chemicals enter andare used, the system verifies whether they are included in the list of banned substances and developscorresponding alternatives, mitigation plans and protective measures.
Hazardous Substance Declaration and Review
All products entering the Company are required to submit hazardous substance declarations, testreports and ingredient information. Before purchasing, the Company strictly reviews relevant materials,and only products that meet regulatory requirements can be put into production, eliminating thepurchase of hazardous substances from the source.
Procurement Front-End Control
All products manufactured by the Company are databased in the system to achieve full life cyclemanagement. When laws and regulations are updated, the system can quickly identify the complianceof existing products to ensure that existing and new products continue to meet the latest regulatoryrequirements.
Product Database and Compliance Management
Elimination and Reduction of Hazardous SubstancesAs the global requirements for product safety and environmental protection continue to increase, in order to ensure that theCompany's products comply with the regulatory requirements of major markets such as the European Union, the United States,Canada, China, South Korea, and Japan, and to enhance the market competitiveness and brand image of the company's products,we continue to pay attention to the updates of laws and regulations on hazardous substances and customer requirements. 100%of the chemicals used have been identified, and based on laws and regulations as the bottom line and in combination with clients'hazardous substance requirements, we independently restrict, reduce and replace hazardous substances, and formulatereduction and elimination plans for chemicals that do not meet control requirements.
The Company seeks environmentally friendly alternative materials, deploys hazardous substance reduction plans in advance, andcontinues to promote the implementation of phase-out plans to systematically carry out hazardous substance management andcontrol work.
Chemical SubstanceHazardous AttributesEffective Date
MOAHCarcinogenic risk, genotoxicity, organ damageMarch 1, 2024
MOSHBioaccumulation, metabolism, and toxicityMarch 1, 2024
2-(2H-benzotriazol-2-yl)-4,6-ditertpentylphenol
Damage to organs, eye, respiratory and skinirritation, environmental hazards
January 27, 2025
Phenyl mercuric acetate
Lipophilic toxicants that mainly invade the nervoussystem
January 27, 2025
(neodecanoato-O)phenylmercury
Acute toxicants, organ damage, environmentalhazards
January 27, 2025
Per- and Polyfluoroalkyl Substances
Carcinogenic risk, endocrine disruption, liverdamage, immune system damage
March 1, 2025
Dechloran(DP)
Liver, pulmonary and reproductive toxicity,potential neurotoxicity and endocrine disruption
March 1, 2024
F、Cl、Br、I and its compounds
Substances containing halogen elements willgenerate harmful gases when burned, causingharm to the human body.
March 1, 2024
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Increasing Awareness of Hazardous Substance ManagementThe Company attaches great importance to the management of hazardous substances and is committed to comprehensively improving the awareness level of employees at all levels of the Company and supply chain partners, and enhancing the management awarenessof all employees and the supply chain.Online Education and Training
All hazardous substances management trainingcourses have been made online to ensure thatinternal and external personnel can obtainrelevant knowledge regularly and conveniently,covering the basic knowledge of hazardoussubstances, the latest legal and regulatoryrequirements, and customer-specific needs.
Hierarchical and Targeted TrainingWe have implemented a hierarchical andtargeted training program for employees withdifferent positions and responsibilities. Newemployees, management and technicalpersonnel, and front-line operators all receivecustomized hazardous substance managementcourses to ensure that employees at all levelscan fully understand the hazardous substancemanagement requirements within their scope ofresponsibility.
Information Transparency and ReleaseThrough billboards, announcements and otherforms, we promptly release the latest legal andregulatory requirements for hazardoussubstance management and customer-specificneeds to all employees, ensuring that everyemployee can keep up with industry trends andcontinuously improve their awareness andcapabilities of hazardous substancemanagement.
Supplier Training and CooperationSupplier training activities are held regularlyevery year to ensure that all suppliers ofcustomized materials, structural parts,packaging materials and auxiliary materials areincluded in the training scope, enhancingsuppliers' understanding and implementationcapabilities of hazardous substancemanagement.
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Clean Technology ExplorationIn the context of global green transformation, the Company closely follows the international clean technology concept and integrates the national policy "green and low-carbon development" task to optimize production processes, reduce energy consumption andgreenhouse gas emissions, and accelerate the green and low-carbon transformation of enterprises. Meanwhile, the Company strengthens collaborative innovation with domestic and overseas partners to promote the application of clean technology in the industry, reducesgreenhouse gas emissions in the manufacturing process of electronic components to further reduce the carbon footprint in global operations and value chains, and creates more high-quality sustainable products for the whole society.The Company has always paid great attention to the research, development and application of clean technology, and continues to promote the research and practice of clean technology in the entire process of product development, procurement, manufacturing, andquality, in order to reduce energy consumption during the product life cycle, as well as greenhouse gas emissions, improve the environmental performance of products, and minimize negative impacts on the environment.
Adhering to the principles of sustainable and ecological design, we optimize material selection andproduct design to improve product sustainability. We promote the use of recycled materials and designproducts that are easy to disassemble to minimize the environmental impact of the products’ entirelife cycle.?For details, please refer to the chapter “Leading scientific and technological innovation”R&DInnovationDriven
We strictly follow green supply chain management, select more environmentally friendly and safermaterials, and continue to improve products’ environmental standards. We work closely with suppliers topromote higher environmental standards throughout the supply chain.
?For details, please refer to the chapter “Green Supply Chain”ProcurementGreen SupplyChain
We develop and apply green production processes to promote the transformation of the manufacturing
process towards cleanliness, automation, and intelligence. We invest in clean energy, advanced
production equipment and technology to reduce resource consumption and waste generation, improving
production efficiency and product quality.
?For details, please refer to the chapter “Optimizing Use of Resource”ManufactureLow-CarbonTechnology
Based on the chemical laboratory accredited by ISO/IEC 17025 and the self-developed SRM
environmental collaboration system, we monitor the environmental performance of green materials,
components, and final products in real time to ensure that products comply with environmental
regulations and clients' clean and low-carbon needs.
?For details, please refer to the chapter “Quality First”QualityEnvironmentMonitoring
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Clean Technology Practices and AchievementsThe Company adheres to customer-oriented values, continues to provide green and low-carbon products and solutions to make breakthroughs in the fields of clean energy use, energy-saving and low-carbon technology development, recycled material application andproduct lightweighting, and broadens the field of clean technology research and development to explore potential market opportunities.Clean Technology CategoryPractice DescriptionPlastic Packaging ReductionThe plastic reduction ratio of packaging materials for some parts and complete products reached 35.7%, reducing the use of plastics.Renewable ResourceTechnology
A project uses PCR (post-consumer recycled) materials in four colors: black, white, blue and purple. The weight of structural materials PCRaccounts for 50%Low-Carbon Product Design
A product shares similar materials or supplier standard materials, reducing new mold openings and fixtures as well as resourceconsumption.Raw Material Recycling
We encouraged customers to use raw materials containing recycled aluminum, switching from 6/7 series aluminum alloys to K series. Afterproduct iterations, 20%-30% recycled aluminum is used, saving more than 90% of resources.
This yearObtained52 patents related to clean technology
Targets to invest more than RMB100 million in clean technology in
2025
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Related United Nations Sustainable Development Goals（SDGs）
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Goertek is committed to "To be a Great Company," upholding the spirit of"Excellence, Proactivity, Pragmatic, Innovation." We continuously improveour products and services, focus on employee growth, promote sustainablesupply chain development, actively fulfill social responsibilities, andconsistently create value for all stakeholders.
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Quality FirstGoertek Inc. regards quality as the cornerstone of corporate development and has formulated the quality policy: Quality Is Lifeline, adhere to a customer-oriented approach, based on the ISO 9000 quality management system, focus on process management, comply withprocedural rules, and engage in continuous improvement across all personnel to provide clients with exceptional products and services.As of the end of 2024, the Company has obtained certifications for a number of international and industry-related quality management systems, including the ISO 9001 Quality Management System, the IATF 16949 Automotive Industry Quality Management System, the ISO13485 Medical Device Quality Management System, the ANSI/ESD S20.20 Electrostatic Discharge Protection Management System, the IECQ QC 080000 Hazardous Substances Process Management System, the IEC 61340-5-1 General Requirements for ElectrostaticProtection of Electronic Devices, and the ISO/IEC 17025 Laboratory Accreditation System.
R&D QualityIn the process of project development, through product design and development and testing and verification, to ensure that the product appearance, hardware/softwarefunction/performance/reliability/laws and regulations to meet the customer's requirements, to achieve zero-defect product design and manufacturability.Engineering QualityIn the process of project development, reliable solutions for achieving mass production are ensured through robust process development, adequate process validation,and comprehensive line acceptance.Material Quality
The quality stability and consistency of the entire life cycle of the material is guaranteed throughout the entire lifecycle via reliable material design, robust supplier control,and precise incoming material control.
Manufacturing QualityImplement production process controls in accordance with process documentation and quality control plans, control the variation of the production factors, to ensure thecontinuity and stability of product production and provide products that meet client requirements.
Basic QualityTo support the improvement of R&D quality, engineering quality, material quality and manufacturing quality, the Company pursues “Do It Right The First Time” andcontinuous improvement, in terms of quality culture construction, quality system construction, quality process and digitalization construction, quality index managementand analysis, quality process evaluation, personnel quality capacity building and continuous improvement, achieving both efficiency and effectiveness.
Product Quality Management
The company regularly reviews and strictly complies with product safety-relatedlaws, regulations, and standards in all global markets where its products are sold,including theProduct Quality Law of the People's Republic of Chinaand theCode ofFederal Regulations in the United States, to ensure compliance with localrequirements. The Company has established internal systems such as theProductQuality Standard Development Process, theProduct Regulatory Compliance ControlProcess, and theProcess Quality Control Process. It has also set up a productcertification standard database to manage and timely update changes in laws,regulations, and standards, ensuring the timeliness and accuracy of information tomeet external market and regulatory requirements. This ensures that every aspectof product design and manufacturing strictly follows established quality standards.Quality Management RequirementsThe Company has established a comprehensive quality management processsystem, including policy regulations such as theBasic Law of Quality Management,which sets specific quality management requirements for all employees acrossvarious business segments such as research and development, engineering,materials, and manufacturing. These requirements cover multiple aspects, includingthe quality management system, management review, organizational management,and performance management. The Company is committed to continuouslyimproving the First Pass Yield (FPY), practicing a "0PPM" (Zero Parts Per Million)defect rate in the market, and achieving a zero customer complaint target for majorproduct quality issues, thereby continuously driving the Company's excellence inquality management.
The Company has specified product quality requirements in terms of research and development quality, engineering quality, material quality, manufacturing quality, and basicquality.
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Process Quality Control
The Company has formulated internal quality management processes and systems such as theProcess Quality ControlProceduresto implement refined and systematic quality control throughout the manufacturing process to ensure that each linkmeets the quality standards. The following control measures are adopted by the Company to ensure product quality:
The Company continuously carries out the investigation of nonconforming products in the process of production and operation,standardizes the process of controlling nonconforming products in the production process by formulatingNonconforming ProductsHandling ProcessandProcess Quality Control Process, and immediately activates the emergency response mechanism for theidentified nonconforming products, and organizes a professional team to review and analyze the situation of the nonconformingproducts, and take effective measures for correction and improvement.
Prior to the product assembly and enclosure closure stage, AOI technology is employed to automaticallyinspect critical risk points affecting product functionality such as screw fastening and B2B (Board-to-Board) connector engagements.First-Article AOIAutomatedInspection
After the product is assembled, an appearance compliance check is performed to ensure that the productappearance is free of defects and meets the design requirements.AppearanceCompliance
Check
Carry out comprehensive product function tests on the finished products to ensure that the productspecifications and performance meet the requirements.ComprehensiveProductFunction Test
For non-conforming items identified during inspection or testing, engineering and technical personnelconduct analyses to confirm the causes of anomalies and develop corrective and preventive measures.Subsequently, quality management personnel are responsible for following up on the implementation ofthese improvement measures to ensure that the issues are effectively resolved, thereby forming a closed-loop management system.
DefectiveProductAnalysis andFollow-up
Safety ComplianceThe Company's Quality Management Headquarters has established a dedicated Product Certification Department responsible forproduct safety and compliance management. This department, comprising a professional product certification team and amanufacturing safety compliance team, coordinates and plans related work across various fields such as research anddevelopment, procurement, manufacturing, quality, and processes. They assess the safety and compliance requirements ofproduct design and manufacturing processes, integrate these requirements into product research and development as well asmanufacturing process management, and confirm compliance during the design and manufacturing stages to ensure that theCompany's project products meet safety and compliance requirements.The Company has established a product safety and compliance management system that covers the entire product life cycle andhas formulated theRegulatory Compliance Control Process. Safety and compliance management measures have been integratedinto relevant processes such as research and development design and manufacturing management.
Establish the Company's material standard library, especially for batteries and other key components, toclarify its safety norms and management requirements, to ensure that all materials are in line with theestablished safety standards before storage.Establishmentof materialstandard library
Battery Safety Management Process
In the product design stage, the certification team needs to determine the safety specificationrequirements of the battery, and strictly screen the materials to ensure that the selected materials canmeet these safety requirements, to protect the safety of the product from the source.Define batteryrequirements
Product design verification and product certification, through a series of rigorous testing standards, toensure that the battery can work stably and safely in practical applications, to meet the establishedperformance and safety indicators.Productvalidation andcertificationtesting
Sampling of incoming battery materials, paying special attention to the safety specification part, to ensurethat each batch of batteries are in line with the design requirements, to avoid potential safety hazardscaused by material problems.IncomingBatteryMaterialsSampling
Conduct occasional sampling and safety specification tests on batteries to ensure that the batteries canstill maintain their safety performance during long-term use, and timely detection and treatment ofpotential safety hazards.UnscheduledRandomInspection
In the production process, automated and visual inspection means are utilized to monitor the use ofbatteries in real time to ensure that batteries are installed and used correctly and safely, and to reducesafety problems caused by human error.Real-timemonitoring ofproduction
process
Design Change Evaluation
ProductDemandEvaluation
DesignDevelopmentProductProjectApproval
PrototypeVerification(Proto)
EngineeringVerificationTest (EVT)
DesignVerificationTest (DVT)
Pilot-run/ProcessVerificationTest (PVT)
MassProduction &Improvement
ComplianceStandardRequirementsIdentification
CertificationSchemeDevelopment
ComplianceDesignRequirements
ProductCompliance
Design
Import
ProductCertification
MassProductionDetermination
First Order
SafetyCompliance
MassProduction
SafetyComplianCompliance
TestRequirementsConfirmation
ComplianceDesign TestVerification
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Service Quality ManagementGoertek Inc. insists on the service concept of “Customer Focus, Quality First”, and all staff members adhere to the principle that “quality is the bottom line of all work”, focusing on listening to, understanding and responding to customers' needs, and aiming to provideexcellent service that exceeds customers' expectations.
Customer Satisfaction SurveyThis year, the Company has updated and improved systems such as the Customer Satisfaction Survey and Analysis Management Process, clarifying the channels for obtaining customer satisfaction information, the analysis process, and the application scenarios. Thisenables the Company to quickly identify weaknesses in internal management and operations and to drive continuous improvement, thereby creating the greatest value for customers.The Company's Customer Management Center initiates at least one customer satisfaction survey annually, covering five major areas: quality, cost, delivery, service, and R&D. This comprehensive and multi-faceted approach collects genuine customer feedback. This year,the Company actively listened to customer ideas and opinions, conducting a total of 199 customer satisfaction surveys. For three consecutive years, the customer satisfaction scores have exceeded the set targets.
Customer Communication
To enhance employees' customer-oriented service awareness, the Company has launched acustomer-oriented implementation transformation project. This initiative encourages each businessgroup to actively learn about customer culture and characteristics, and to organize, summarize,and internalize the mindset and behavioral norms that should be possessed during service delivery.The Company also conducts internal empowerment training to improve the service capabilities ofcustomer-facing personnel and to increase customer satisfaction. Additionally, the Companyencourages each business group to proactively identify areas for improvement in customercommunication and to develop measures for continuous improvement and enhancement of servicequality. The Company has established theCustomer Feedback Management Processto achievefull-process refined management of customer feedback, from collection and analysis to theformulation and implementation of monitoring and improvement plans, in order to continuouslyenhance customer satisfaction.?For customer feedback and opinions related to product quality, the Company has establishedtheProduct Quality Complaint Handling Process. After receiving customer information from themarket, the Company forms an 8D team in response to customer complaints, analyzes thecauses of the problem and its leakage, develops corresponding improvement measures, andconducts spot checks on the implementation of these measures to ensure that issues are quicklyand effectively resolved.?For customer requests for returns, exchanges, and repairs, the Company has established theCustomer Return and Exchange Handling Processto systematically manage the accounting ofreturned goods and the identification of defects, as well as repair processing. By real-timemonitoring of the delivery commitment fulfillment rate for returns and exchanges, return rate,and defect data, the Company ensures that returns and exchanges are completed according tocustomer requirements and provides support for the identification, analysis, and improvement ofquality risks.
Customer Satisfaction Management Optimization Initiative?Full-Chain Review: Conduct a detailed review of the entire customer satisfaction process, including scoring criteria, calculation logic, and business
alignment, to identify areas for further optimization.?Implementation Plan Development: Develop specific implementation plans and solutions for the identified optimization areas to ensure that theoptimization measures are effectively implemented.?Feedback Collection and Improvement: When collecting customer feedback, delve into the root causes behind the feedback to develop moredetailed measures. Ensure that customers are satisfied with the implementation results of the improvement actions. Actively address customerrequests and promote successful improvement cases within the Company, such as sharing through internal service accounts.?Cultural Manual: Continuously increase the training efforts on the cultural manual internally to reinforce a customer-oriented culture and ensure thatall employees understand and practice the customer-centric service philosophy.?Marketing Process Compliance Verification: Conduct in-depth internal communication and promotion of the customer satisfaction managementprocess, focusing on customer satisfaction and customer feedback. Continuously strengthen the improvement and closed-loop management ofcustomer feedback.
This year, to continuously improve customer satisfaction, the Company has carried out the following special projects in line with its commitment to continuousimprovement:
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Quality Culture ConstructionGoertek Inc. has always adhered to the philosophy that “Quality Is Lifeline”, deeply engaged in manufacturing industry and drivenby the original aspiration to create world-class products. With theBasic Law of Quality Managementas the core, the Companyhas built a unique quality culture system, which includes quality philosophies, process management requirements, and key detailsof quality operations, and conducted quality culture construction activities to strengthen the Company's quality culture atmosphereand enhance employees' awareness of pursuing high-quality development.The Company actively carries out a variety of quality culture activities, including visual promotion of quality culture, offline events,quality competitions, and improvement case contests, to create a quality atmosphere in which all employees participate.Meanwhile, the Company has organized employees in China and Vietnam to study theBasic Law of Quality Management, with atotal of more than 75,000 participants. The Company has established the quality "Five Ones" code of conduct, including writingpersonal quality insights, participating in internal and external quality audits, teaching quality courses, leading quality reviews orself-reflection, and communicating with customers about quality, continuously promoting the transformation of quality awarenessinto concrete practice. As of the end of 2024, the Company has completed a total of 108,034 quality behavior practices, effectivelyintegrating quality culture into daily work.
This year, the Company participated in the 10th National Corporate Case Competition organized by theChina Quality Club. The project " Innovative Technology Sharing of Anti-Error, Anti-Omission, and Anti-Mixing in Packaging" won the Second Prize in the QCC Quality Improvement Session, and the project "GProject PCB CNC + CCD (Vision Guidance)" received the "First Prize in the Lean Production Session."300received the Quality "Five Ones" Practice Award
Promotion of Cultural Philosophy?Basic Law of Quality Management?Quality culture visualization atmosphere creation
Featured Cultural Activities?Quality Contest?Quality culture street activities?Quality field group building
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Leading scientific and technological innovationGoertek Inc. adheres to the strategy of innovation-driven development, and always adheres to the development concept of “standard-led, innovation-driven”. Throughcontinuous increase in scientific research investment, expanding the scale of R&D team, accurately identifying various types of innovation scenarios and customizing efficientprocesses, Goertek Inc. has been able to comprehensively support and empower innovative R&D business, and effectively maintain and enhance the Company's corecompetitiveness.Innovation Management SystemThe Company continuously improves its innovation management system and is committed to promoting the standardization, synergization and process of enterprise technologyinnovation research. The Company has set up a technology committee, which is composed of the Company's R&D backbone and technical experts. At the same time, theCompany identifies and cultivates experts in high-precision fields through internal evaluation and training mechanisms, effectively integrates and shares expert resources, andprovides solid support for the enhancement of the Company's technological innovation capability. The Company has set up the Science and Technology Innovation Award, theInnovation Excellence Award and the Innovation New Talent Award to recognize outstanding projects and talents in the fields of strategy, technology and market.
Appraisal Mechanism
The Technology Committee has established aperformance appraisal mechanism combiningKPIs and key tasks, using the appraisal as ahandhold for improving the effectiveness ofscientific and technological innovation, andpromoting the healthy and orderly operation ofeach technical sub-committee to continuouslyproduce scientific and technologicalinnovation results.
Innovative Process Management
The Company attaches importance to R&D innovation and actively responds to
market changes. Through continuous optimization of the innovation management
process system, the Company accurately identifies diversified innovation demand
scenarios, comprehensively considers the ethics of science and technology, and
customizes highly efficient innovation processes, which comprehensively supports
and empowers innovative R&D business, and maintains the core competitiveness of
the Company.
The Company continues to increase the development of new technologies, products
and processes, and build a team of high-end technical talents. During the year, the
Company achieved the following results:
The Company has built a globalized R&D system, with R&D centers in Weifang, Qingdao, Beijing, Shanghai, Nanjing, Xi'an, Shenzhen and other domestic cities, as well as in theUnited States, Denmark, Japan, South Korea and other countries, and through the establishment of national R&D platforms and the strengthening of upstream and downstreamcooperation, the Company has continued to improve the Company's scientific research and innovation capabilities, enhance the Company's leadership in the field of technologyresearch and development, and further promote the industry's innovative development.
Specialized trainingEmpower the technology research anddevelopment team, and enhance the relatedpersonnel's awareness of scientific andtechnological innovation and technologydevelopment capability.
Technical exchangesThrough the establishment of cross-departmental and cross-specialty exchange andseminar mechanisms, and the strengthening ofexchanges and learning with external exchanges,it opens up new ideas for technicians in productR&D, promotes in-depth planning oftechnological R&D, and facilitates the effectivepromotion of scientific and technologicalachievements.
The Company leads the development of the domestic industry, and has led theestablishment of 14 provincial-level and above R&D platforms, including theNational Virtual Reality Innovation Center (Qingdao), the Technology InnovationCenter of the Ministry of Culture and Tourism for Common Virtual RealityTechnology, and the National Engineering Laboratory for VirtualReality/Augmented Reality Technology and Applications.
The Company has established joint R&D centers, joint laboratories and otherinnovation platforms with globally renowned universities, research institutes andupstream and downstream industry partners.
The Company’s R&D spending was RMB 4.57billion,representing
4.53% of the operating income
Won the China Patent Excellence Award issuedby the State Intellectual Property Office (SIPO)
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Technical standardizationGoertek Inc. has accumulated a series of advanced management experience and technological achievements throughindependent innovation and industrial cooperation. It continues to deepen the construction of the enterprise technologystandardization management system, promote the formulation of industry technical standards, and help the sustainabledevelopment of related industry fields.Enterprise technical standardsThrough the establishment of a perfect standardization management system, the Company continuously strengthens thestandardization awareness of all staff members, and achieves a comprehensive improvement from “attaching importance tostandards” to “practicing standards”. The Company implements the strategy of intelligent manufacturing standardization, andcarries the concept of standardization through the whole process of product development and manufacturing resource allocation,and builds an intelligent manufacturing enterprise standard system with testing, process and automation technology as the coreby continuously optimizing the process and collaborating in the allocation of resources.
Development of industry technical standardsThe Company always adheres to the innovation-driven development strategy and is committed to the construction and innovationof industry technical standards, focusing on the technical fields of virtual/augmented reality, wireless audio, acoustics andintelligent manufacturing. By the end of 2024, the Company has led and participated in the formulation of 70 important technicalstandards, including 5 international standards, 25 national standards, 10 industry standards and 30 group standards, focusing onthe general specifications, technical requirements and test methods for complete equipment and key components, which hastransformed the Company's technological innovations into industry standards, and promoted the innovation and improvement oftechnical standards in the field of consumer electronics.This year, Goertek Inc. participated in the new release:
National Standard
GB/T 44220-2024Interfaces for virtual reality devices Positioning devices
GB/T 44465-2024
Specification for virtual/augmented reality content
production process
GB/T 44218-2024
Measurement methods for micro-speakers
Industry Standard2024-0907T-SJAn Objective Evaluation Method for Virtual Reality
Audio Quality
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Technology Industry Synergy
Goertek Inc. has established close strategic partnerships with industry leaders and organizations upstream and downstream ofthe industry chain. Through continuous strengthening of industry cooperation, collaborative development and integration ofcutting-edge software and hardware technologies and rich product resources from various parties, we have achieved win-winsituation in the industry and promoted the sustainable development of science and technology innovation.The Company continues to deepen the cooperation and exchange with top domestic and foreign universities and researchinstitutions, in terms of joint technology research and development, major scientific and technological projects, high-level talentconstruction, etc., with Tsinghua University and other more than 20 well-known universities, think tanks and industry partners, tocarry out industry-university-research cooperation.
Technology and Humanistic Care
The Company has always adhered to the mission of “technology creates health and beauty”, and is committed to integrating“warm” technology into the Company's products to meet the needs of consumers while providing comfort and convenience to thepublic in their daily lives.Technology Serving Human ComfortThe Company is committed to user-friendly innovative design, integrating aesthetics, functionality, and comfort to createoutstanding experiences for users worldwide. This year, Goertek's products have been honored with two international designawards:
iF Design Award 2024, GermanyFlexible VR Glasses won the German iF Design Awardfor the first time for its innovative design and userexperience. The Company's Flexible VR Glasses productfocuses on solving the pain point of bulky andinconvenient to carry VR glasses, and reduces thespace occupied by the product by 40% by adopting thefoldable design realized by the pivot. At the same time,users can directly flip the front island (the main part) tointeract with the real environment, which improves theconvenience of the product and reduces the pressureon the face and eyes caused by wearing the frontisland for a long time. In addition, the product designsand supplements the front island with a front mask airduct, which drives air circulation, reduces the surfacetemperature of the mask, and realizes a good heatdissipation effect.
IDEA Design Awards 2024, USAThe Company's self-developed and designed XR(Extended Reality) device wearing comfort detectionsystem and other four industrial design works in thefield of XR won the 2024 IDEA Design Award for thefirst time in the United States for its innovative designand friendly user experience.This series of products meets the needs of users indifferent scenarios by building a one-stop XR solution,effectively improves the comfort of the products, andprovides consumers with the ultimate auditory andvisual experience.
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Employee Rights
The Company complies with laws and regulations such as theLabor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of China, theLaw of the People's Republic ofChina on the Protection of Minors, theLaw of the People's Republic of China on the Protection of Women's Rights and Interests, theTrade Union Law of the People's Republic of China, and theSpecialProvisions on Labor Protection for Female Employees. In accordance with international standards such as theUniversal Declaration of Human Rightsand theDeclaration on the Protection of HumanRights, the Company has established internal systems including theRegulations on the Prohibition of Child Labor, theRegulations on the Protection of Female and Minor Employees, theRegulations onthe Prohibition of Forced Labor, andthe Attendance and Leave Management Regulationsto implement human rights protection measures and is committed to safeguarding the rights and interests of itsemployees.
Promoting Talent DevelopmentGoertek Inc. attaches great importance to talents and regards them as one of the core competitiveness of the Company. The Company adheres to the concept of "Talent First, Attracting and Nurturing First-class, Making the Best Use of Talent, and Growing Together",and continuously optimizes and improves the talent management system around the protection of employee rights and interests, welfare, personal development, and occupational health and safety. Meanwhile, the Company is committed to actively creating adiversified, fair, inclusive, respectful and safe working environment, aiming to enable each employee to give full play to their potential and achieve common growth of individuals and the Company.
ThemeCommitmentPolicyManagement MeasuresProhibition ofForced Labor
The Company commits to not employing anyform of forced or involuntary labor.
Regulations on the Prohibition of ForcedLabor
By establishing human resource management systems, the Company ensures the standardizationand transparency of employee management. Through training, public notice, and promotionalactivities, the Company ensures that every employee clearly understands the requirements of theentire process from application to resignation. Particularly in the resignation process, employeesare able to freely and conveniently handle their resignation procedures within a reasonable noticeperiod.Minor Employees
The Company commits to not employingchild labor.
Regulations on the Prohibition of Child Labor
The Company adopts a six-step method for checking child labor. In addition to visual inspection,technical verification methods are added to ensure the authenticity and validity of employeeidentification, preventing the accidental employment of child labor. The Company also formulatesremedial measures for child labor and implements its obligations for child protection.Working Hours
The Company commits to ensuring thatemployees' working hours comply with locallegal regulations, and all overtime isvoluntary on the part of employees.
Attendance and Leave ManagementRegulations
The Company sets clear weekly/monthly working hour standards and red lines for consecutiveattendance. It regularly informs employees of their attendance status and establishes a system ofaccountability for managers in cases of unreasonable overtime.Wages andBenefits
The Company commits to ensuring thatemployees are entitled to wages and benefitsin accordance with the law.
Compensation Management System
The Company clarifies the composition of employee salaries and the rules for calculation, ensuringthat employees are able to enjoy benefits and holidays in accordance with the law and receivefair, lawful, and reasonable remuneration and benefits. The Company also regularly conductsexternal salary benchmarking and continues to adjust salaries to ensure that employees'compensation remains relatively competitive.Anti-discrimination,Anti-harassment,and HumaneTreatment
The Company commits to treating allemployees fairly and justly, withoutdiscriminating against employees on thebasis of religion, race, gender, politicalviews, region, skin color, or other factors.
Anti-discrimination, Anti-harassment, andAnti-abuse Management Regulations
By strengthening training and communication through various channels, the Company informsemployees and managers of relevant disciplinary policies and procedures to prevent inhumanebehavior. It standardizes and strictly enforces a reward and punishment system and providesaccessible channels for reporting and appeals.Freedom ofAssociationandCollectiveBargaining
The Company respects the rights of allemployees to voluntarily form and join laborunions, engage in collective bargaining andnegotiations, and participate in peacefulassemblies. It also respects the right ofemployees to refrain from participating insuch activities.
Freedom of Association and CollectiveBargaining Management System
The Company regularly conducts the election of employee representatives to encourage broademployee participation and ensure the selection of representative staff members. TheCompanyhold periodic employee representative conferences to discuss and make decisions on significantissues such as the Company's development plans, production and operations, and employeebenefits, fully promoting democratic management. Additionally, the Company actively organizevarious labor union activities to enrich employees' leisure lives.
To ensure the implementation of the Company's labormanagement system, the Company achievescomprehensive supervision of issues related to employeerights through internal audits, customer audits, and externalthird-party audits (such as RBA).
Internal auditIn accordance with laws and regulations, customerrequirements and industry standards, the Companyconducts regular inspections and random checks onthe implementation of the Company's labor systemfrom time to time.
External Third-Party Audit
The Company engages an external third-partyorganization to conduct systematic audits inaccordance with international industry standards topromote the continuous improvement of theCompany’s labor management.
Customer AuditThe Company responds positively to audits of theCompany's labor management system conducted bycustomers and provides timely feedback andcommunication of audit findings.
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Talent Attraction and RetentionGoertek Inc. actively attracts outstanding talents from diverse backgrounds and fields, and always adheres to the people-oriented philosophy. The Company provides employees with a variety of compensation and welfare guarantees, as well as smooth communicationchannels. It cares about employees' work and life needs, values their opinions, and continuously enhances their sense of belonging and happiness.Employee Recruitment
The Company carries out recruitment work with the principles of fairness and justice. It has established systems such as theRecruitment Management Systemand theSocial Recruitment Implementation Management Rules, which standardize various aspects of therecruitment process, including recruitment principles, needs, plans, talent acquisition, interviews, hiring, and recruitment channel management, to ensure fairness and professionalism. The Company's recruitment principles are as follows:
Public release ofrecruitmentinformation.Any form ofdiscrimination isstrictly prohibited.
Selection of excellenttalents matching thepositions, and strictlyprohibit fraudulentpractices.
The existence ofrelatives, friends,classmates, alumni,fellow countrymen andother relationshipsshould be avoided.Employeesrecommending theabove relationships orspecial relationshipswith the Company'sbusiness must bereported in advance.
Do not employ childlabor or arrangeminor workers toengage in laboroperations prohibitedby laws andregulations.Do not use forced,debt-bonded orcontractually boundemployees orinvoluntary employees.
Candidates shall berecruited and placedin positions based ontheir own wishes andby mutual agreement,and forced labor isprohibited.
Principle of fairness
and impartiality
Principle of meritbased admission
Principle of personnelavoidance principle
Principle of law-abiding principle
Principle of equality,voluntariness, andconsensus
Principle ofconfidentiality of
information
Strictly protect thepersonal informationof the applicants andcomply with theCompany's payrollconfidentiality system.
The Company attaches great importance to talent supply planning and strategy, regularly evaluates market trends, business needs and talent flow, and continues to attract awide range of outstanding talents through various talent recruitment channels, including joint school-enterprise talent training programs, social recruitment, campus recruitment,employee recommendation, internal talent selection and hiring.For campus talent cultivation, the company continues to deepen the integration of industry and education, has established the Goertek Craftsmanship Training Center,collaborating with 16 vocational colleges and 6 undergraduate universities. By the end of 2024, for the rapid development of the new generation information technology industry,over 4,000 skilled vocational talents and over 200 undergraduate engineering and technical talents have been cultivated, with currently over 1,300 people under training.
2024 Campus RecruitmentExcellence Practice Award
Yonyou
2024 Shandong Extraordinary
Employer AwardLiepin
China Best Employer Award 2024China Best Employers in Qingdao
Zhaopin.com
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Employee RemunerationThe Company has formulated internal systems such as the Remuneration Management System and the Employee Welfare Manual to build and continuously improve the remuneration and welfare management system, and to supervise and guide the standardizedoperation of the remuneration and welfare systems of its subsidiaries. Meanwhile, subsidiaries have formulated differentiated remuneration and benefit policies according to their respective operating sites to meet the individual needs of local employees and furtherenhance employee experience.The Company has formulated a compensation and incentive system with a complete structure, sharing, focusing on differences and protection, and highlighting the characteristics of benefits, and has gradually improved the incentive mechanism oriented to highperformance and high incentives, prioritizing the allocation of resources to talents with excellent performance and key position groups, and continuously improving the competitiveness of the compensation of high-contribution and high-potential employees.The Company's performance appraisal system, which covers all employees at home and abroad, continuously optimizes the internal performance appraisal system, and the continuously optimized salary distribution mechanism ensures that salary distribution is closelylinked to individual and team performance, creating a high-performance culture. The Company breaks down strategic objectives, organizational objectives, and individual objectives into layers, forming a closed-loop process from performance objective setting,performance implementation and coaching, performance evaluation and performance feedback. At the same time, the Company adopts a data-driven performance evaluation mechanism to objectively evaluate the performance of employees, and sets up a multi-roundcommunication mechanism to guarantee the fairness of the assessment.
The Company implements employee shareholding and option incentive plans for core business backbones, and through the innovation of equity incentive mechanism, conducts assessment based on the assessment indexes or work performance setat each assessment stage, and continuously improves the formation of a well-balanced value distribution system, so that the core staff can continue to share the growth of the Company's value.Long-termincentivemechanism
For key positions and talents supporting the development of the Company's strategic new business, the Company has implemented special salary adjustment strategies to realize precise talent attraction and retention. The Company continues toraise the salary level of fresh graduates, and implements the “Talent Retention Award” incentive program for high-potential talents and the “Moat (Talent Retention)” incentive program for core engineers to protect the talent pool.Specializedincentivemechanism
During the year, based on the Company's digital transformation needs and the identification of digital transformation positions and employee groups, the Company formulated a competitive compensation system and continued to maintain itsattractiveness by conducting internal compensation analysis and external benchmarking of compensation levels in the same industry and for the same positions. The Company has set up monthly and quarterly performance appraisals for theperformance measurement cycle of operational employees, first-line managers, and technicians, and added new digital assessment points to create a digital performance pilot for the Company.
Employee Long-Term Incentive ProgramThe Company has set up an equity incentive plan for employees, and long-term incentives have become one of the most important means to attract, retain and motivate employees, so as to realize the common development of the enterprise and employees.During the year, the Company's long-term incentive plans that are still in existence, including the “Home No.6” Employee Stock Ownership Plan, “Home No.7” Employee Stock Ownership Plan, 2021 Stock Option Incentive Plan, 2022 Stock Option Incentive Plan, and 2023Stock Option Incentive Plan”, covering more than 6,000 persons in total.
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Employee WelfareThe Company has set up a diversified welfare system characterized by home culture, and is committed to enhancing employees' sense of belonging and happiness. The Company provides diversified welfare programs for all employees, covering eight categories:
comfortable living, caring education, joyful entertainment, heartfelt exclusivity, intimate life, happy vacation, peace of mind medical care, and warm care, and continuously organizes creative and temperature coexisting welfare activities, to comprehensively, multi-leveland three-dimensional protect employees’ welfare.
Peace of mindmedical Care
Warm CareComfortable
Living
JoyfulEntertainment
CaringEducation
HappyVacation
HeartfeltExclusivityIntimate
Life
Eight Categoriesof Benefits50+ Benefit Sub-programs
?The world is a better place because of loveMid-Autumn Reunion Gift + Chinese New Year Gift,Marriage/Childbirth Gift Money/Retirement/Hospitalization, Anniversary, ExpatriateFamily Visit
?Home, love, and careFree Apartment Accommodation, QualityGoertek Community, Inclusive HomePurchase Policy, Employee Home Purchase
Subsidy
?Embrace health, relax themind
Employee/Family PhysicalExamination, EAP Counseling,Medical Center, Acupuncture andPhysical Therapy
?Goertek education, educate
together for good
Priority Enrollment + Discounts forEmployee's Children, SummerVacation Care, Special Courses
?Summer vacation is atreasure, it's good for ourwell-beingPaid annual vacation, Flexibleworking hours, Expatriate Vacation,Warm Vacation Reminders
?Be spontaneous, have funGoertek Spring Festival Gala, CollectiveWedding, Mid-Autumn Gathering, NewYear's Gifts Day, Photography, soccer,badminton, running team, calligraphy
clubs
?Enjoy life, feel the joyPark Shuttle Bus/Customized Bus/IntercityShuttle Bus Goertek Cafeteria, EcologicalFruits and Vegetables
?Special offers for Goertek membersCinema/Gas station/Car group purchase,Discounts on watches, bracelets, headphones,
stereos, and other electronic products
By the end of 2024, the company has met the diversifiedhousing needs of more than2,000 employees
This yearThe Company organized and carried out a total of
Company-level cultural and sports activities,
Delving into the daily lives of employees and showing meticulouscare, the Company has distributed welfare benefits amounting tooverRMB3 million
The Company set up18 interest clubs in response tothe needs of employees, and carried out
120 interest club activities in a variety of forms, with
Set up4 specific care measures for marriage, childbirth,
hospitalization, and retirement
with more than90,000 times of employeeparticipants
more than50,000 times of employee
participation
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Basic welfare rights and interestsThe Company strictly follows the national laws and regulations and the relevantpolicies of the local government to protect the welfare rights and interests ofall employees:
The Company ensures that both domestic and foreignemployees participate in a comprehensive social insurancesystem, including pension, health insurance, work injuryinsurance, unemployment insurance and maternityinsurance.SocialInsurance
The Company contributes to the housing fund foremployees in accordance with national and localregulations and policies.HousingFund
All employees are entitled to local statutory holidays,marriage leave, childcare leave, nursing parent leave, workinjury leave, paid annual leave and sick leave. TheCompany strictly protects all kinds of legal rights andinterests and treatment of female workers, and providesprenatal check-up leave, maternity leave, breastfeedingleave, etc. for female workers.Diversified
VacationArrangement
The Company promotes diversified vacations and flexibleworking systems, and establishes a variety of specialholidays, such as paid welfare leave, expatriate familyleave, paid hourly leave, and paid leave for speciallyrecruited talents, to help employees balance work and life.DiversifiedVacation and
FlexibleWorking System
In 2024, the Company launched the Lunar New Year shopping event, in whichWeifang, Qingdao, Rongcheng and Dongguan factories jointly organized theChinese New Year bazaar, non-heritage handicrafts and parent-childinteractions, with a total of 15,000 employees and their families participatingin the event. By setting up food bazaars, fun games and presenting “Fu”Chinese New Year couplets, the activities relied on traditional Chinese NewYear customs and aimed to create a warm workplace atmosphere, enhancethe fun of family sharing, and improve the sense of belonging and culturalidentity of employees.
新年喜“柿”汇In May 2024, the first Goretek Sports Club Carnival was officially launched,with “Running Together on Fluorescent Nights” as the first activity, whichkicked off in the Zhuo River Scenic Spot. The event attracted more than 700participants, including honorary leaders from various associations,department heads, employee representatives, chairmen of branch laborunions, and many running enthusiasts. The activity aimed to promote ahealthy lifestyle and enhance team cohesion, and jointly create a positivecorporate culture.
Club Carnival - Fluorescent Night Running
The 7th Jia·Yuan Mid-Autumn Festival Street event carries out the Company's“Together” cultural concept in depth, aiming to carry forward the traditionalChinese festival culture and integrate it with an international perspective, andcontribute to the construction of a happy factory. The event brought a fullrange of sensory enjoyment to more than 18,000 employees and theirrelatives through cultural performances, cultural and creative bazaar,interactive experience of science and technology, parent-child games andgourmet street, etc. The atmosphere at the site was warm and cozy.
Interest Clubs
In order to enrich the spare time life of the staff, the Company has set up threemajor categories of 18 interest clubs, which provide a broad space for learningand communication and a stage for displaying individual and team styles.
Diversified Cultural Activities
During traditional festivals and anniversaries, the Company has carefully plannedand successfully held 10 home cultural activities, including New Year's Joyful Festival,Mid-Autumn Festival Street, Fluorescent Night Running, Talent Competition, etc.,which add color and vitality to the life of employees.
New Year's Joyful FestivalJia·Yuan Mid-Autumn Festival Street
?Sports: Basketball, soccer,badminton, table tennis, cycling,running, swimming and other clubsencourage employees to activelyexercise and enjoy the fun of sports.?Hobbies and interests: painting and
calligraphy, travel, reading, chorus,yoga and other clubs to meet thediversified interests of employeesand promote spiritual and culturalcultivation.?Support: Creative Arts, Wing Pioneer,
New Media, matchmaker and otherclubs provide a platform foremployees to improve their skills,innovate and practice, and expandtheir social life.
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From July to August 2024, the Company organized two family visit tours for the families of employees in Vietnam, invitingnearly 100 parents and children of employees to enter the Vietnam Factory, visit the enterprise environment and experiencethe exotic atmosphere in close proximity, which further brought employees, their families and the Company closer andenhanced the welfare experience of the expatriate employees and their families.
The Company jointly set up Weifang Young Talent Dating Union with external organizations, and regularly carried out youthdating activities. In 2024, the Company carried out 13 special activities, with more than 600 participants, reaching nearly 50pairs of dating intentions, and 11 pairs of marriage certificates, which helped the young employees to broaden the scope ofdating, and assisted in the retention of young talents.
Youth Dating, Lighting up the Light of Employees' Happiness
Employee Family CareThe Company is committed to enhancing employees' sense of belonging and happiness by establishing a dating platform for young talents, organizing family visit tours, providing childcare benefits and free medical checkups, which have attracted the active participationof many employees and their families, and jointly created a warm and harmonious working atmosphere.
Affinity connection, building a happy home for employees
The Company attaches importance to the issue of family education of the employees, effectively implements the work ofcaring for employees' children. In the current year, the Company provided hosting service for 101 employees' children,effectively alleviating the problem of unattended employees' children during vacation.
Custodianship service, care for employees' children
The Company attaches importance to the physical health of employees and their families, and provides free medicalcheckups, free re-examinations, and interpretation of medical reports for new and current employees and their families, soas to safeguard employees' body and mind and help them embrace a healthy life in high-quality work.
Health Action, Free Physical Examination Benefits Employees and Their Families
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Leisure and Entertainment ActivitiesThe Company is committed to letting employees have fun in high level work and enriching their lives with sports, reading, science and technology, and art activities.
The Company has carefully planned and equipped various recreational facilities in each park, including fitness equipment,badminton courts, table tennis courts, yoga studios, libraries and spiritual harbors, which provide employees with diversifiedways to relax.In the outdoor area, the Company has also planned with great care to provide a green soccer field, a dynamic basketballcourt, a circular running track and a comprehensive physical training area to satisfy the sports needs of employees inall aspects.With a total area of more than 17,000 square meters, the Company has created a pleasant working environment whereemployees can enjoy their leisure time after work and achieve a perfect work-life balance.
Leisure facilities, advocating a healthy and beautiful lifestyle
This year, the Company launched the pioneering “Starry Night School” program, which elaborately designed 12 diversifiedcourses covering vocal music, dance, fitness and beauty fashion, etc. It attracted the enthusiastic participation of 600employees, which greatly enriched the spare time life of the employees, cultivated a wide range of diverse interests, andpromoted the comprehensive improvement of the overall quality of the individual.
This year, the Company and Weifang Library joined hands to create Goertek Library, aiming to create a strong reading culturefor all employees, stimulate their intrinsic motivation to learn and comprehensively improve their cultural and artistic cultivation,and build a learning organization, with a library collection of more than 22,000 books. In order to enhance the readingexperience, the Company regularly organizes colorful reading activities, aiming at deepening employees' understanding andapplication of knowledge through interaction and communication, and promoting knowledge dissemination.
Starry Night School, Creating a Vibrant Social Circle for Employees
Scholarly Goertek, Building a Learning Organization Together
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Employee CommunicationThe Company attaches great importance to and firmly protects the legitimate rights and interests of all employees, including participation in labor union activities, freedom ofassociation, equal consultation, and the conclusion of collective agreements, etc., and creates an open, inclusive and transparent communication platform.In promoting employee communication, the Company has adopted diversified measures to ensure the smooth flow of information. We have established a three-tier feedbackmechanism as channels for employees to voice their grievances, so that each employee's opinions and suggestions can reach the management quickly and effectively,enhancing communication efficiency and employee participation.The Company has set up a standardized internal complaint handling system and an internal monitoring organization, which implements strict confidentiality and protectionmeasures for employees who have lodged complaints or grievances, and resolutely opposes any form of retaliation. The internal monitoring team will uphold the principle ofobjectivity and fairness, conduct an in-depth assessment of employee feedback, and grasp the actual situation through visits and surveys, employee seminars and other meansto effectively help employees to solve the problems they face.The Company has set up a variety of communication channels and informed employees through various means, advocating a proactive, equal and mutually respectfulcommunication atmosphere. During the year, the closure rate of employee feedback issues was 100%.
?Company-level mailbox: the Company intranet home page set up mailbox plate, employees can make suggestions, for valuable comments or
suggestions, will be given certain rewards or be reproduced and published.?Hotline channel: the Company has set up a service hotline, with dedicated personnel to answer the calls.?On-site feedback: the Company set up a workshop feedback hotline, suggestion box, management personnel contact card, etc.Feedbackchannels
?The feedback process is clarified in the training materials for new employees at the onboarding stage.?Regularly push the feedback channel through the manuscript publicity of the official account.?The workshop prominently posted the feedback channel guide plateApproachto informfeedbackchannels
In accordance with theTrade Union Law of the People's Republic of China, theConstitution of the Chinese Trade Unionand other systems and statutes, the Company has continued to improve the democratic management system centeredon the Employee Congress, and signedGoertek Inc. Collective Contracts and Wage Collective Negotiation Agreements,to effectively safeguard the legitimate rights and interests of the employees and better promote the development of theenterprise. According to the three-year collective contract agreement (2023.7-2026.7), the Company implements themechanism for safeguarding employees' rights and interests through diversified communication channels.
The Company emphasizes employees' evaluation of their work and carries outannual employee satisfaction research through online questionnaires, focusing onaspects closely related to employees, such as food, clothing, housing, transportation,working environment and employee activities. The Company listens carefully to thesuggestions and opinions of the employees, and according to the collectedfeedback, sets up a special improvement team to carry out targeted analysis andimprovement. At the same time, the Company incorporates the results of problemimprovement into the performance appraisal of the relevant departments, andcontinuously tracks and investigates the handling of problems to ensure that theyare solved.At the same time, the Company carries out research on organizational capability,and invites all employees to evaluate the strategy and organizational managementrelated content and their own work experience by issuing a questionnaire with adual perspective of organizational capability and dedication, reflecting the overallhealth and effectiveness of the organization.This year, the Company carried out the Vietnam Factory Cultural Constructionand Transformation Project to summarize and precipitate the experience ofmultinational culture integration and promote the construction of culture in theVietnam Factory. Through 138 in-depth interviews and over 4,000questionnaires, the program identified over 40 explicit and implicit culturaldistinctions between Chinese and Vietnamese practices,and identified the keyissues for improvement.?Developed the “Cross-cultural Communication and Management” course,organized seminars, and established 14 actionable task lists and 13standardized behavioral guidelines for cross-cultural management.?Collaborated with clients on a joint cross-cultural training initiative,resulting in 7 employees earning cross-cultural management certifications.?Established cross-cultural management SOPs and formed the “Cross-cultural Management Handbook” to guide cadres to enhance localizationmanagement competencies among personnel.
Vietnam Factory Cultural Construction and Transformation Program
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Senior Worker
Talent DevelopmentBased on the concept of talent planning, supply, retentionand development, Goertek Inc. carries out diversified jobsettings, builds a scientific and fair talent developmentmanagement system, and helps employees realize self-development.Employee PromotionA fair and transparent promotion system is the basis for thecommon development of the enterprise and talents. TheCompany continues to optimize the promotion system,develops differentiated development strategies foremployees of different levels and departments, and ensuresopen, fair and equitable promotion.The Company adopts a job classification system and builds“management + technical” career development channels toprovide employees with diversified development paths,covering key business lines such as management,technology research and development, system engineers,project management and other cross-fields, ensuring thateach employee has a clear and transparent careerdevelopment blueprint.At the same time, the Company has formulated a clearcareer development path and growth system for directemployees, and encourages employees to realize theirpersonal career growth through continuous learning andskill enhancement.The Company has established a comprehensiveperformance appraisal system, which focuses on hard skills,soft qualities and personal qualities in addition to basicqualifications and performance appraisal, with the aim ofobjectively evaluating the performance of employees. TheCompany attaches great importance to the feedback ofemployees on the results of performance appraisal.Supervisors communicate with employees after theperformance appraisal, listen to their opinions andfeedback, and counsel them to achieve personal growth.For outstanding employees, the Company provides annualpromotion opportunities to promote the professional growthof employees through a series of links such as promotionnomination, qualification review, employee presentation,result approval and employee communication.
Technical PathwayFunctional Pathway
Chief Technician
Technician PromotionPathway
Senior ManagementMid-level Management
Basic levelManagement
Front-line ManagementGrowth Pathway
Front-line workers
Five starFour starThree starTwo starOne star
Direct Employees Promotion Pathway
Management Pathway
Specialist Technician
Senior TechnicianTechnician
Mid-level Worker
Junior Worker
Technical PathwayFunctional Pathway
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Establish a diversified recruitment channel, including external hiring and open competition for all employees, emphasizingthe orientation of actual job requirements, and combining internal and external resources to quickly respond to the talentgap in business development.
Precise EvaluationThrough regular inventory of employees' ability, potential, character and experience, we accurately identify personalqualities, achieve dynamic matching of people and jobs, optimize the internal talent allocation of the organization, andproactively match employees with the most suitable positions and development opportunities.
精准评估Talent Matching
Regular inventory to identify employee
characteristics and match jobsCompetitions for open positions
Position Demand
Two-wayChoice
Internal StaffPositionsLooking for staffs
Staffs lookingfor positions
Staff lookingto switch
ReserveTalents
StaffvoluntaryentryNew projectjobvacancies
Temporarysecondmentrequirements
Daily jobvacancies
Externalassignmentrequirements
All-staff annualinventory
Current CadreInventory
Elite talentsGoertek Wings
Inventory
Reserve Cadre
InventoryReserve ExpertInventory
AbilityPotentialCharacterExperience
Employee Cultivation
Goertek Inc. regards talents as the Company's core strategic resources, and lists “employee development” as one of the Company's core values. It has formed a perfect human resources training and development system, and is committed to creating a first-class platformfor talent training and development as well as self-growth of employees.
Free rotationThe company designs cross-field rotation paths, such as R&D and manufacturing, marketing and procurement rotation, to promote the accumulation of employees' experience in multiple business lines. Design the rotation mechanism of key business segments,strengthen the synergy between function and market, and accelerate the comprehensive ability of talents.
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The Company and business groups work together to coordinate and manage the development of training plans for each business group and supervise the development oftraining, set targets for evaluation of training satisfaction, ensure the orderly development of training, and continue to cultivate high-quality talents for the business.
The Company closely integrates major strategic projects and management priorities with talent training to ensure that the direction of talenttraining is consistent with the Company's strategy.Deepening theintegration ofstrategic businessand talent training
The Company has built a comprehensive talent training foundation system centered on cultural values, new employees, professionalism,leadership, and skilled personnel to help employees receive appropriate support and training at different stages.Building adiversified talenttraining system
By the end of 2024
The Company has developed more than2,300 coursesfor all employees, covering management, professional, technical,cultural and general courses.
Reserve a team of more than2,700 lecturers.Built learning resources under various job qualifications, whichare applicable to the training needs of people and supportvarious training activities.
For technical and frontline managersThe Company has developed a total of18,530
courseware.
Developed646,500 test questions covering general,
cultural and professional courses.
TechnicalTalentTrainingSystem
CultureTrainingSystem
Leadership
TrainingSystem
New EmployeeTraining System
Front-lineWorker TrainingSystem
SpecializedTalent Training
System
GPS TrainingSystem
Elite Talent
TrainingSystem
Learning Map
TrainingSystem
EmployeeDevelopment
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The “Goertek Wings” is the fresh talent thatsupports the company's long-termdevelopment in the future. After more thana decade of accumulation and iteration,the systematic and targeted cultivationand development system has basicallymatured.In 2024, the Company launchedcentralized training for new “GoertekWings”, covering diverse contents such astheoretical lectures, development activitiesand frontline practice, providing a goodfoundation for new employees to adapt toand integrate into the Company, changetheir roles, understand the culture, andquickly get on the job.
Along with the advancement of theCompany's GPS strategy, GPS Academybuilds a “rocket model” for GPS talentcultivation based on the intelligentmanufacturing system, adopts ahierarchical and classified cultivationmodel to guarantee the continuous outputof talent cultivation and support theCompany's digital transformation.GPS Academy focuses on the training ofdigital talents, and plans and carries outprograms such as data analyst and AIapplication engineer. In order to improvethe digitalization and leaning ability of allemployees, GPS Academy plans andcarries out learning programs for allemployees. GPS Academy planned thefirst Data Analyst Competition, in whichmore than 100 teams took the initiative toparticipate, creating a trend of data-driven management learning.
The Company actively encourages all employees toimprove their degrees and vocational skills. TheCompany has established close cooperation withShandong University, Qufu Normal University andother universities to provide employees with a varietyof channels for degree upgrading, customizedlearning courses, and tuition fee concessions forenrolled employees. In 2024, the Company'sequivalent master's degree cooperation programcumulative total of more than 40 students.
Iterative Upgrade of Digital Transformation, Continuously Helping GPS Talent Cultivation
Continuously iterating the training model for new employees recruited from schools, helping new employeesintegrate and grow
Improvement of degrees and vocational skills, empowering staff growth
In 2024, the Company actively promoted theintegration of industry and education. It developedtwo new cooperative institutions and collaboratedwith Weifang Vocational College and ShandongVocational College of Science and Technology toobtain approval for two projects under the "FirstBatch of National Vocational Education On-siteEngineer Special Training Program." It alsoestablished a new characteristic industry college withShandong Chemical Engineering Vocational Collegeand initiated the construction of an Excellent EngineerCollege with Qufu Normal University.Students trained in this model have a strongwillingness to work, are proficient in technical skills,and show positive confidence, which has been highlyrecognized by the employing departments. Theyhave truly achieved the goal of "employmentimmediately after graduation and competenceimmediately after taking up the post."Meanwhile, the Company paid attention to thetraining of skilled talents in Vietnam and added threetraining models for engineers: "local pre-training -short-term training between China and Vietnam -long-term training between China and Vietnam," andestablished the Ban·Mo College for technicians.
Establishment of Goertek Craftsmanship Training Center, School-Enterprise Collaboration in Educational Training
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Employee HonorsThe Company values talent and has established a multi-level honor system with its own characteristics, covering four aspects: innovative breakthrough, strategic contribution, employee development, and cultural heritage. It affirms and recognizes the efforts made byemployees and their achievements.To reward teams and individuals who have made outstanding contributions to the annual business value, the Company holds the "Goertek Innovation and Kaizen Conference" every May to select and recognize innovation and continuous improvement awards. The “GoerAwards" is selected and presented every August to September to recognize cultural heritage awards. This year, the Company has added awards for quality, project management, and market categories to strengthen the leading and driving role of market, projectmanagement, and quality in achieving the Company's strategic management goals. This year, the Company has selected and recognized 8 "Role Model Teams" and 90 "Role Model Individuals."
At the same time, the Company is committed to all-round enhancement of staff's sense of honor, strengthen the sense of honor ceremony, and change honor from pure “information transfer” to a profound “emotional imprint”. The Company elaborately creates exclusiveimmersive recognition activities, and carries out honor penetration ceremonies through online and offline channels, and carries out honor throughout the ceremonial activities and daily work scenes, including setting up exclusive parking spaces for awardees, and sendinghonorary glad tidings to the relatives of the awardees, etc.
InnovativeBreakthrough
StrategicContribution
Employee Development
Cultural Heritage
Strengthening Innovation LeadershipHighlight the leading role of technological and product innovation in the Company's future development, while alsoreinforcing continuous improvement and emphasizing the importance of making steady progress through small,incremental steps. Encourage employees to identify opportunities for improvement in their daily work.
Outstanding Value ContributionLeading in making significant value contributions to the achievement of the Company's strategic andoperational goals, quality improvement, manufacturing optimization, and other areas.
High Performance and Strong Growth?Tilt towards high-growth and high-potential employees to exert the power of role models.?Expand the coverage of awards to exert the traction of honors.
Strong cultural identity practice and influence?Regaining the excellent gene of initiative and pragmatism, and setting up cultural
benchmarks?Motivate employees to make extraordinary performance in ordinary positions
Innovation HonorsKaizen Honors
Excellence in ContributionExcellence in Quality ControlExcellence in Marketing DevelopmentExcellence in Quality ControlExcellence in Client RelationsExcellence in Project Management
Goer Awards
Goertek StarManager StarRising StarCraftsman Star
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At the same time, the Company's employees have received a number of external honorary awards for their performance,covering areas such as professional skills, technological innovation, and leadership.
In January 2025, the Company held “REFRESH - Role Model Power - Goertek 2025 Annual Party” in Weifang Grand Theater,which honored the teams and individuals with outstanding performance in the past year, summarized the work in 2024 andlooked forward to the future development. It also summarized the work in 2024 and looked forward to the futuredevelopment. The annual meeting was held in the form of “main venue + live video + online graphic broadcast”, whichconveyed the Company's guidance and role model power to all employees, and had more than 28,000 viewers in total.
“REFRESH—The Power of Role Model-Goertek 2025 Annual Party”
This year, the Company integrated the devotion and diligence recognition with the Goer Award recognition, strengthenedthe spirit of leading the development of the Company in the new era, and reshaped the spiritual connotation of the GoerAward - entrepreneurs pursuing excellence and pioneering with passion, doers doing things pragmatically with continuousimprovement, and co-venturer being altruistic in sincerity with win-win situation for mutual benefit. The Company held thePomegranate Music Festival for the first time, using a sense of ceremony to inject respect and recognition for the GoerAwards, integrating resources to enhance the value of the Goer Awards and the sense of achievement of the awardees, andpaying tribute to the Goer Awards winners.During the year, more than 1,000 employees were honored for 10 years and 20 years of Zhong Qin, and each departmentcontinued to carry out activities to commemorate employees' one-year, three-year, and five-year of service to pass on thespirit of Zhong Qin.
Pomegranate Music Festival--Goer Awards & Zhong Qin (Devotion & Diligence) Recognition
To facilitate the implementation of the Company's GPS upgrade and respond to the call for innovation from all employees,the Company promoted the spirits of model workers and craftsmen through competitive events, encouraging technicians torespect and enhance their skills. This year, the Company organized the third "Passing on Craftsman Culture, Casting GoertekCraftsmen" Skill Competition. The event featured seven major competition items in two categories: regular and challengeevents, with nearly 3,000 technical personnel participating.
The Third Company-level Skill Competition “Passing on Craftsman Culture, Casting Goertek Craftsmen”
This yearWon 3 national talent honorsWon5 provincial talent honorsWon 77municipal and
district-level talent honors
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The Weifang, Rongcheng, Dongguan, and Vietnam factories have all obtained the ISO 45001Occupational Health and Safety Management System Certification.
Employee Health and SafetyGoertek Inc. adheres to the safety management philosophy of "Safety First, Life First, Prevention and Full Participation",continuously improving management systems and enhancing employees' safety awareness and capabilities, with a commitmentto creating a healthy and safe working environment.Occupational Safety
The Company strictly complies with relevant laws and regulations such as theWork Safety Law of the People's Republic of China,theLaw of the People's Republic of China on the Prevention and Control of Occupational Diseases, and theFire Protection Law ofthe People's Republic of China. It has established standards and procedural documents such as theEnvironmental andOccupational Health and Safety Management Manual, as well as management documents including theSafety ResponsibilitySystem Management Regulations, theHazard Identification and Risk Management Process, theHidden Danger Investigation andManagement System, theSafety Visualization Management Regulations, theHigh-Risk Work Management Regulations, the
Emergency Management Regulations, theFire Management Regulations, theEquipment Safety Management Regulations, andtheSafety Education and Training Management Regulations. The Company continuously optimizes its management system withthe goal of protecting employees' safety and health, safeguarding business achievements, and supporting the Company's long-term development, striving to create a healthy and safe working environment. This year, the Company has had 0 cases ofoccupational diseases.The Company continues to improve its occupational health and safety management system and work safety responsibility system.It has established a Safety Management Committee to oversee safety management, with five subgroups focusing on safety andenvironmental protection, public security, production equipment, special and power equipment, and hygiene and epidemicprevention. Additionally, safety leadership groups are set up in each business group and functional department, and safetymanagement sub-committees are established in each subsidiary and platform.The Company has established a life cycle hidden danger management mechanism, strictly following theHidden DangerInvestigation and Management System. In 2024, more than 7,000 hidden danger investigations were conducted at various levels.Through a three-dimensional risk identification system of "equipment inspection + process evaluation + employee feedback," theCompany closely monitors high-risk scenarios such as chemical leaks, electrical fires, and mechanical injuries, establishing athree-tier risk matrix for high, medium, and low risks and implementing differentiated control strategies.The Company vigorously promotes the optimization of equipment safety management, incorporating a safety review mechanisminto the entire equipment management process, shifting the focus of safety management to the early stages. Risks are identifiedand control measures are established during the initial introduction phase to prevent risks from entering the production stage,thereby enhancing the inherent safety of equipment.
Goertek Inc. was awarded the Weifang 2024 “Outstanding Group for the City's Internal Security andDefense Work”.Weifang Goertek Electronics Co., Ltd. was awarded the Weifang 2024 “Outstanding Group for the City'sInternal Security and Defense Work”.Weifang Goertek Electronics Co., Ltd. was honored as “Advanced Enterprise in Work Safety” in WeifangComprehensive Free Trade Zone for the year of 2024.Rongcheng Goertek Technology Co., Ltd. was honored as “Advanced Unit in Fire Fighting Work” in WeihaiCity for the year 2024.Rongcheng Goertek Technology Co., Ltd. was awarded “Provincial Healthy Enterprise” in ShandongProvince in 2024.
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Safety Accidents Handling Procedure
BusinessGroup/Business Unitwhere accidentsoccurred
Company Safety
ManagementCommittee
Government
RegulatoryAgencies
Affecteddepartment report
in system
Accident Occurred
Accident levelevaluation
Report to governmentregulatory agenciesdepending onaccident level
Establish accidentinvestigation team
General and above accidentMinor accident
Deliver accidentinvestigationhandling advice
General and above accidentMinor accident
Emergency Response Mechanism and Handling
The Company has established a series of systems, including theEHS Accident Management Systemand theAccident Analysis andInvestigation Report Guidelines, which clarify the reporting procedures, investigation processes and handling measures foraccidents, and, meanwhile, implement the environmental, health, and safety (EHS) management responsibilities of managers at alllevels. In the event of an accident, the department where the accident occurred must report it immediately. The Safety Committeewill report to the local government authorities within the stipulated time frame based on the severity of the accident and isresponsible for organizing the establishment of an accident investigation team, ultimately issuing an accident investigation andhandling report.
The Company introduces innovative application of intelligent technology to enhance the essential safety in the work of hiddendanger investigation and accident prevention.
Monitor PPE compliance, personnel violations and electronic fence overruns in real time, deployintelligent temperature control alarm devices in the AGV charging area, and install AI monitoring andequipment interlocks in some of the large-scale manipulator areas, to capture personnel enteringhazardous areas and issue timely commands to them to stop the equipment from operatingAIBehavioralMonitoringSystem
Install acoustic and visual alarms, outline lights and AI collision avoidance system, and implement thedual verification mechanism of “face recognition activation + seat belt detection”IntelligentForkliftRetrofit
Real-time monitoring through the digital platform to visualize safety management data
DigitalManagementPlatform
Visual AI self-monitoring, self-alarming, self-interlocking and self-protection technologies applied toequipment safety protection, realizing the transformation from “employee risk avoidance” to “automaticequipment identification and protection” modeEquipment
SafetyIntelligence
Through the Hidden Danger Investigation and Rectification Tracking System, ensure that safety hazardsare rectified in a timely manner and the rectification closed-loop rate is increased to 100%HiddenDangerInvestigationandRectificationTracking
System
Establish accidentinvestigation team
Deliver accidentinvestigationhandling advice
Submit accidentinvestigationanalysis report
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Safety Culture ConstructionThe Company actively promotes the construction of safety culture and continuously organizes a series of safety activities.
All-Staff Safety Knowledge Quiz: The Company organized a safety knowledge competition withthe theme of “Everyone Speaks of Safety, Everyone Knows How to Respond to Emergencies”, whichwas carried out simultaneously online and offline, with more than 10,000 people participating in thequiz online, and nearly 2,500 people participating in the offline parks, which consolidated thesafety knowledge of the employees and at the same time created a strong safety cultureatmosphere. The quiz activity consolidated employees' safety knowledge and created a strongculture of safety atmosphere at the same time.
119 Fire Safety Month Roadshow Publicity Activity: The Company organized 119 Fire Safety MonthRoadshow Publicity Activity with the theme of “Fire Prevention for All, Life First” in each park, set upfire safety publicity area and fire equipment display area for employees to visit and learn, andpopularized fire prevention, fire escape, primary fire, and fire safety awareness through on-the-spot explanations, demonstrations, presentations, and so on. Through on-site explanation,demonstration and presentation, the Company popularized the fire prevention, fire escape, fireextinguishing and other scenes of fire knowledge, and improved the staff's awareness of fire safety.
Firefighting Competition: The Company held the 7th Volunteer Fire Brigade Skills Competition, inwhich 25 teams from various business groups in Weifang participated in the competition with atotal of more than 100 people. The competition subjects included firefighting with fire extinguishersobstacles and crossing the fire scene, which were closer to the actual combat, enhancingemployees' fire safety awareness and skills.
Public Security Publicity into the Factory Activities : the Company jointly organized legal educationpublicity activities with external organizations to promote the prevention of telecommunicationfraud, the rejection of pornography, gambling and drugs, and the protection of one's own rightsand interests in emergencies and other topics, and through daily broadcasting, video and otherpublicity methods to deepen the impression of the staff and enhance the awareness of law andorder and security.
Safety TrainingThe Company is well aware of the importance of safety training, and requires all departments to conduct regular production safetytraining to popularize production safety knowledge, enhance the quality of employees' safety skills, and cultivate their sensitivity tohidden safety hazards and risks. The Company has carried out special safety training for different groups of people, aiming tocomprehensively enhance the safety awareness and preventive capabilities of employees.
Front-line StaffDevelopprofessionalcompetence insafety operations tomaster safetyoperation skills andimprove the on-sitesafety managementlevel.
ManagementConduct securityleadership trainingfor mid-level andsenior managementso that they can fullyconsider securityfactors during thedecision-makingstage.
ProfessionalProduction SafetyPersonnel
Invite externalequipment safetyexperts to conducttraining in theDivision, explainingthe key points ofequipment safetyand protection interms of riskclassification,protective measures,safety interlocks, andelectronic controllogic. The Companyconducts internaltransfer training toimprove the safetyskills and awarenessof safetyprofessionals.
New Staff
Provide educationon safety knowledgeto help them quicklyintegrate into theCompany's safetyculture.
All-Staff
Conduct monthlytraining on safetytopics, includingtraffic safety,chemical safety,occupational healthand labor protection,special equipmentsafety, fire safety,and food safety, etc.
Cumulative volunteer firefighters training of more than 24,000 participantsby the end of 2024
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The Company organizes the “first lesson” training every year, organizes all the staff to watch the safetypropaganda and education film, and explains the typical accident cases in detail, so as to educate and mobilizeall the staff to effectively overcome the laxity, enhance the safety awareness, and quickly enter into the workstate, and to prevent all kinds of production and safety accidents from occurring.
The “first lesson” training at the start of work
From August to December 2024, the Company continuously conducted the “EHS50” professional training course for safetymanagement professionals to further cultivate high-potential talents in safety management and enhance the comprehensiveability of safety management personnel of business groups and subsidiaries. The course covers safety awareness andmethods, EHS management system, occupational health, fire safety, laws and regulations, and equipment safety. Theworkshop combines practical cases and analysis to guide the participants to think deeply and realize the change from “keepme safe” to “I want to be safe, I can be safe”, and to build up a strong safety defense.
“EHS50” Professional Training Course to Cultivate Safety Management Elites
The Company has built a safety command center data system, integrating security, fire fighting, public order and EHSmanagement data, to anticipate, resolve and track safety developments through system linkage. The Company has introduceda global intelligent fire protection system and installed more than 120 sets of fire water monitoring devices and 20 sets ofelectrical fire monitoring devices in its subsidiaries in many places to monitor real-time water pressure, liquid level and the mainfactors of electrical fires, and set up more than 200 patrol points to ensure fire safety. At the same time, more than 60 firemainframe collectors were installed to realize the networked management of fire alarm information. During the year, theCompany also strengthened security patrol control by analyzing data from previous years, adjusting patrol efforts to enhancethe safety of key areas, and introduced a new type of law-enforcement recorder to improve disposal efficiency.
Security System Informatization Construction
This year, the Company built the first safety experience hall integrating knowledge transfer, practical experience andinteractive communication. The experience hall has 8 experience areas, including safety culture display area, mechanicalinjury, electrical safety, safety protection, hidden danger investigation, fire linkage alarm, local ventilation simulation andsafety marking signboard area, with more than 20 types of somatosensory equipment as well as various types of safetywarning markers, covering common types of risks in the Company. Through simulation of various kinds of imitation scenariosand interactive experience, the hall helps the staffs to better master the basic self-protection skills and improve the SafetyAwareness. At present, new employees in the Company are trained through the safety experience before they start their work.
Safety Experience Hall
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The Company places great importance on the mental health of its employees. To this end, the Company has activelyintroduced an EAP (Employee Assistance Program), collaborating with a leading domestic third-party EAP professionalorganization to jointly build a comprehensive and systematic mental health support platform. The platform offers a widerange of services, including training corporate health managers, implementing crisis prevention and intervention measures,providing professional psychological counseling, conducting psychological assessments, disseminating mental healthknowledge, and offering psychological themed courses. In 2024, the EAP program saw 227 employee consultations and 4mental health themed activities, with a total participation of 33,000 person-times.
"Heartfelt Joy" EAP Program
?Graded Management of Occupational Hazard Positions: Regularly monitor and assess the working environment to ensure it
meets occupational health standards. For positions with occupational hazards, the Company implements clear gradedmanagement, formulates and enforces control measures for occupational hazards based on risk levels, and continuouslyimproves these measures.?Measures to Reduce Occupational Hazards: Actively reduce and minimize occupational hazards through substitution, isolation,ventilation, and automation. For example, in the injection molding workshop, vacuum noise generators have been replacedwith vacuum noise reduction equipment, and magnetic circuit material feeding protection nets have been replaced with noisereduction protection covers to lower noise levels and reduce the number of people exposed to hazards.?Management of Positions and Workers: Annually identify positions with occupational hazards and update theList of Positionsfor Occupational Health Examinationsbased on the findings. Timely optimize and adjust protective measures to ensure theoccupational health and safety of employees. Strictly enforce pre-employment, on-the-job, and post-employment healthexamination systems for employees in hazardous positions, and inform employees of their examination results. Additionally,establish and dynamically update employee occupational health surveillance files to ensure comprehensive and up-to-datemanagement of occupational health.?Protective Equipment Management: Based on theRegulations for the Management of Labor Protective Equipment byEmployersand the Company's graded results for hazardous positions, formulate standards for the provision of personalprotective equipment to ensure that employees are provided with appropriate protective items such as dust masks, earplugs,safety goggles, and protective clothing. Regularly organize training and education to ensure employees correctly use personalprotective equipment. Include the use of personal protective equipment in routine inspections and regularly conduct specialinspections. Also, set up occupational disease prevention facilities and emergency rescue facilities to further safeguardemployee health and safety.?Employee Awareness Training: Regularly provide all employees with training on occupational health and safety to enhancetheir safety awareness and skills, ensuring they can correctly implement safety measures. Conduct specific operational skillstraining based on the characteristics of different positions to ensure employees can correctly use equipment and tools. Teachemployees how to properly respond in emergencies, including fire, chemical spill, and first aid procedures. Train employees onthe correct use and maintenance of personal protective equipment such as dust masks, earplugs, safety goggles, andprotective clothing.
Occupational HealthThe Company values the occupational health and safety of its employees, proactively identifies and effectively controlsoccupational hazards, and focuses on preventive measures. It has established processes and documents such as theOccupationalHealth Management Systemand theLabor Protective Equipment Management Systemto ensure the safety and health ofemployees during work operations.
Occupational diseases: 0 casesOccupational health administrative penalties:
0 cases
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Sustainable Supply ChainGoertek Inc. always adheres to the supply chain management concept of “Agile Resilience, Win-Win Collaboration, Transparency and Professional Leadership”. By integrating ESG principles into every link of our supply chain, we are committed to building a transparent,green, fair and responsible supply chain system. Through green procurement and close collaboration with partners, we consistently respond to challenges while sharing development opportunities. With the spirit of win-win cooperation, we will inject enduring vitality intoour supply chain, promote the harmonious unity of economic value, environmental justice and social welfare, and work together to move towards a sustainable future.
Development and Access EvaluationThe Company has established a new supplier development and introduction review mechanism. According to the accessstandards stipulated in documents such as theSupplier Development and Certification Management Processand theSupplierAnnual and Special Audit Process, strict qualification reviews are conducted for suppliers.
Supply Chain ManagementThe Company has established a series of management systems and procedures, including theSupplier Social Responsibility Codeof Conduct, theSupplier Annual and Special Audit Process, theSupplier Development and Certification Management Process, andtheSupplier Performance Evaluation and Application Process. These aim to set high standards for supplier behavior in areas suchas labor rights and environmental responsibility. The Company conducts closed-loop management of suppliers in three stages:
development and access, graded management, and evaluation and audit.During the reporting period, we added provisions for the introduction and approval of temporary suppliers in theSupplierDevelopment and Certification Management Process. We also required first-tier suppliers to effectively manage their ownsuppliers (i.e., second and third-tier suppliers), further perfecting the Company's supplier management system.This year, the Company optimized the capability requirements for supplier audit personnel. Based on theQualification Matrix forNew Supplier Development and Certification Audit Personnel,in addition to requirements in business and technical dimensions,clear requirements were set for the relevant experience, communication skills, and audit qualifications of supplier audit personnel.They are required to participate in professional training and pass exams or obtain International Organization for Standardizationauditor certificates in areas such as quality management, social responsibility, information security, and hazardous substancemanagement to have the qualifications for new supplier audits and annual audits in the corresponding fields.During the audit process, we communicated and promoted Goertek's standards and requirements for supplier management,product quality, environmental protection, and social responsibility with suppliers in a timely manner. We also required potentialsuppliers to sign a series of documents, including theSupplier Social Responsibility Commitment Letter, theIntegrity andCleanliness Commitment Letter,and theConflict Minerals Commitment Letter. At the same time, it was clarified that suppliers mustobtain at least one certification each in quality management and environmental and social responsibility to be included in the list ofpotential suppliers.
Supplier access threshold
investigation
Baseline investigation of supplier
capability
Audit of management system
Audit supplier managementsystem, including quality system,quality process, socialresponsibility, information security,hazardous substancemanagement, etc.
Mainly investigate suppliers'production equipment, testingequipment, technical processcapability, project managementcapability, quality control andenvironmental protection controlcapability.
Mainly investigatesuppliers‘ industry qualifications,financial risks, organizationalcapabilities, technical capabilities,inspection capabilities,management systems, and otherbasic conditions to supportbusiness operations.
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Supplier GradingManagement Measures
Preferred
?Prioritize participation in project selection, increasing cooperation opportunities.?If performance deteriorates, review for demotion.Selectable
?Eligible for project selection.?Subject to upgrade or demotion based on performance.
Restricted
?Limited participation in new projects.?Subject to upgrade or demotion based on performance.Eliminated
?Ineligible for new projects, with a phase-out plan to exit, reduce supply share, andeventually terminate cooperation within one year.
Graded Supplier ManagementThis year, the Company optimized theSupplier Performance Evaluation and Application Process. After new suppliers areonboarded, the Company dynamically manages suppliers through periodic performance evaluations to ensure product qualityand supply chain stability. A cross-departmental team is formed to evaluate suppliers' performance across dimensions such astechnology, quality, responsiveness, delivery, cost, and social responsibility, assigning them one of four performance grades: A, B,C, or D. The Company continuously tracks suppliers' performance, requiring them to rectify any identified issues and submitrectification reports, which are then verified either online or on-site.The Company refined theSupplier Grading and Classification Management Process, preferentially selecting, optionally selecting,restricting selection, or eliminating suppliers based on their performance levels, resource alignment, and willingness to cooperate.This dynamic management approach differentiates suppliers to maintain an optimal supplier pool.
Supplier Evaluation and AuditThe Company conducts annual supplier audits and special inspections annually, combining online and offline methods. The auditdimensions are consistent with the entry audit dimensions to regularly verify that qualified suppliers continue to meet compliancerequirements. In 2024, the Company continued to promote the application of the SRM system, directly and efficiently connectingwith suppliers through the system to enhance audit work efficiency, ensuring records are traceable and verifiable, and advancingthe systematization and standardization of supplier annual audits and special inspections.This year, the Company optimized theAnnual Supplier Audit Personnel Capability Matrix, setting higher capability requirementsfor those conducting annual supplier Audit Personnel in terms of system management and professional experience.
?Supplier Management Rules Update?SRM System Process Operation?Integrity and Business Ethics?Project Information Security Management andPersonal Privacy Protection?CSR Management and EHS Management
?Conflict Minerals Management?Carbon Emissions and Energy Management?Product Quality Management?Harmful substances management?Other related matters involving synergies
Supplier Training Theme
Supplier Rights ProtectionThe Company places great importance on protecting supplier rights and has no instances of overdue payments to small andmedium-sized enterprises that have been publicly disclosed by the National Enterprise Credit Information Publicity System.Supplier EmpowermentRecognizing that supplier capability is crucial for building a sustainable supply chain, the Company engages in variouscommunication methods such as one-on-one on-site empowerment, quarterly meetings, specialized training, and supplierconferences to jointly identify management risks in the cooperation process and explore improvement directions with suppliers,thereby reducing business risks and continuously enhancing the level of cooperation. In October 2024, the Company held apartners' integrity promotion meeting to advocate the Company's future development direction and policies and called on allpartners to jointly resist corruption. A total of 220 suppliers attended the meeting on-site.
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Responsible Supply ChainGoertek Inc. actively practices the concept of responsible procurement and adheres to the RBA Code of Conduct, committing to building a transparent and fair supply chain cooperation model. The Company has established internal management policies such as the
Supplier Social Responsibility Code of Conduct, theSupplier Development and Certification Process, and theSupplier Risk Management Process. These policies standardize the rules for supplier cooperation and the process of risk identification and assessment. Throughcomprehensive management across the entire process, the Company ensures that suppliers comply with internal and external regulatory requirements in terms of quality, environment, society, and business ethics, thereby continuously enhancing the stability and security ofthe supply chain.
Supplier Entry CSR ManagementThe Company strictly implements supplier access mechanisms such as theSupplier Survey Form, theSupplier Development Requirement Form, and theSupplier Development and Introduction Qualification Threshold. In accordance with theSupplier Development andCertification Management Process, the Company comprehensively evaluates and examines the environmental and social risks, as well as the green environmental management system of both internal and external suppliers through written review and on-site audit. TheCompany signs a series of documents with suppliers who meet the access requirements, including thePurchase Contract, theConfidentiality Agreement, theIntegrity and Cleanliness Agreement, theSocial Responsibility Commitment Letter, and theConflict MineralsAgreement. These actions effectively implement and practice the supply chain management philosophy of "collaborative win-win and transparency," ensuring the stability and sustainability of the supply chain.Employee Rights and Interests
?Prohibition of forced labor?Child and minor labor?Working hours?Wages and benefits?Non-discrimination/non-harassment/humane treatment?Freedom of association andcollective bargaining
Health and Safety?Occupational Health and Safety?Emergency Preparedness?Workplace Injuries and Illnesses?Industrial Hygiene?Physically demanding work?Machine safety guarding?Public Health, Food andAccommodation
?Health and safety communication
Environmental Protection?Environmental Licensing andReporting?Pollution Prevention and Resource
Conservation?Harmful substances?Solid Waste?Exhaust Emissions?Restricted Substances?Water Management?Energy Consumption and GreenhouseGas Emissions
Business Ethics
?Business integrity?No undue advantage?Disclosure of information?Intellectual property rights?Fair dealing, advertising andcompetition?Protection of identity and prohibitionof retaliation?Responsible sourcing of minerals?Privacy
Management System Requirements
?Corporate Commitment?Management accountability andresponsibility?Legal and customer requirements?Risk assessment and risk management?Improvement objectives?Training?Communication?Employee/stakeholder involvementand access to remediation?Audits and Assessments?Corrective Action Process?Documentation and Records?Supplier Responsibility
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In 2024, during the CSR audits conducted on suppliers, no significant violations were found regarding the prohibition of forced labor, child labor, compensation and benefits,environmental permits, hazardous substance management, and occupational health and safety.
Supplier CSR AuditsWe conduct compliance assessments of theSupplier Social Responsibility Code ofConductfor domestic and international raw material and auxiliary materialsuppliers, based on standards and market requirements from internationalorganizations such asRBA,theInternational Labour Organization (ILO)andtheInternational Organization for Standardization(ISO). We also assist suppliers inmaking necessary improvements.Based on risk management needs, the Company follows theSupplier Annual andSpecial Audit Processto develop and implement an annual CSR audit plan. CSRaudits mainly cover five dimensions: employee rights, health and safety,environmental protection, business ethics, and management systems. The Companyrequires suppliers to make timely rectifications for issues identified during the audit.This year, the Company achieved a 100% CSR audit rate for new suppliers and a100% completion rate for the annual CSR audit plan for component and rawmaterial suppliers.This year, Goertek Inc. has implemented online management for relevant auditprocesses. By standardizing the entry of supplier information and providingstandardized templates and procedures, the Company ensures the accuracy andcompleteness of supplier information. At the same time, the Company classifies andgrades suppliers, implementing targeted audits and corresponding managementmeasures for different categories of suppliers.
Supplier self-assessment
Require new suppliers toconduct self-assessmentupon admission
On-site Audit
Sustainable SupplyChain ProfessionalsFacilitate Audits
Process Rectification
Suppliers submit andact on improvementplans
Review and validation
Sustainable supply chainprofessionals promote thefinal review and verificationof supplier rectificationeffectiveness
Supplier CSR Empowerment
The Company values the construction of CSR management capabilities for suppliers in the supply chain, striving to empower upstream partners with its own practical experience.We encourage suppliers to continuously improve their management levels and performance in labor rights, environmental protection, health and safety, and business ethics,helping them enhance their sustainable development management capabilities. In the future, we will strengthen relevant training to help both the Company and its supplierscontinuously improve their sustainable development performance.
The Company's social responsibility audit process follows a closed-loop mechanismof "supplier self-assessment → on-site audit → process rectification → review andvalidation."?Before conducting access audits for new suppliers, the Company requiressuppliers to conduct self-assessments and submit the results, encouraging themto carry out internal reviews to identify shortcomings and manage themindependently to meet our requirements.?For suppliers with minor non-conformities identified during on-site audits, we willurge them to make rectifications based on the severity of the issues and verifythe effectiveness of the rectifications through final review and validation.?For suppliers who repeatedly fail to meet the Company's standards for quality,delivery, price, and service in multiple performance evaluations, or who violateCSR standards such as labor rights, environmental protection, and businessethics, we will reduce our procurement share from these suppliers.
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Green Supply ChainThe Company has formulated supply chain-oriented measures related to carbon emissions, environmental compliance, and hazardous substance management, and strictly complies with the requirements of laws and regulations on green supply chain management,selects more environmentally friendly and safer materials during product design and manufacturing, continuously improves the environmental standards of its products, and makes every effort to promote the green transformation of its supply chain.Supply Chain Environmental Compliance ManagementTo promote suppliers' implementation and maintenance of environmental compliance and enhance environmental compliance across the entire supply chain, the Company has refined its supplier environmental compliance management system. It identifies commonenvironmental management risk sources and uses a database to track suppliers' environmental violation records. While supervising the Company and its suppliers to reduce and eliminate environmental management risk sources, it also urges and guides suppliers toestablish standardized environmental management systems and regularly optimize them.
The Company fully recognizes the importance of energy conservation and emission reduction in the supply chain for achieving its carbon reduction goals. Through supplier training and on-site reviews, the Company continuously practices and promotes therealization of carbon emission reduction management in the supply chain. We encourage suppliers to actively participate in carbon verification and energy management, empower suppliers to improve their carbon emission management level, and earnestly fulfill thecommitment to building a green supply chain.
Supply Chain Carbon Reduction Management
Supply Chain Hazardous Substance ManagementAs a bridge between suppliers and customers, we fully understand that conveying clear raw material management requirements to suppliers is an important prerequisite for providing customers with high-quality and environmentally friendly products. We requiresuppliers to adhere to consistent standards and, on the basis of their compliance, continuously improve their management of hazardous substances and reduce supply chain risks.We continue to refine the environmental management module of the SRM system to systematically manage hazardous substances in the supply chain and support green procurement. The system includes a basic chemical substance database and a database of theCompany's environmental control requirements for various materials, standardizing the submission of environmentally friendly materials by suppliers. We use the system to query and trace the material data and compliance status of substances, and to implementpreemptive control and develop response strategies for new industry or customer requirements regarding the restriction or prohibition of hazardous substances. At the same time, we also promptly share with suppliers the latest relevant laws and regulations, industrytrends, and customer and Company requirements for the management of hazardous substances to ensure that suppliers understand and comply with these requirements and work with us to ensure the efficient and high-quality delivery of products to customersand users.
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In response to situations where it is not possible to understand the source of the raw and auxiliary metal materials used through due diligence, the Company has set up dedicatedstaff to regularly check the compliance status of smelters, determine their country of origin through other forms of investigation, and provide the results of the investigation tocustomers for reference to ensure the transparency of the source of spare parts and components.
Routine Compliance Management
The Company has established systems and processes such as theSupplier Conflict
Minerals Management Process, covering dynamic monitoring of conflict minerals,
risk reduction plans, and corrective actions. The Company periodically reviews
multiple aspects of suppliers, including verifying their industry qualifications,
ensuring the signing of theConflict-Free Minerals Commitment, and addressing
non-conformities identified by the CMRT (Conflict Minerals Reporting Template)
through improvements and corrections. If any non-compliance is detected, the
Company will immediately communicate with the supplier, requesting a detailed
problem description and corrective action documentation. Meanwhile, the supply
chain management department collaborates with business management, sales
management, and other relevant departments to conduct an in-depth evaluation
and analysis of the issue. Should there be any violation of laws and regulations that
is not rectified within the stipulated time frame, the Company will immediately
terminate its business cooperation with the supplier.
Moreover, the Company actively urges suppliers to fulfill their conflict-free minerals
commitment in their daily operations, empowering and deepening suppliers'
awareness of conflict minerals management through relevant supply chain
departments. The supply chain management department regularly conducts
training themed on conflict minerals management, requiring department personnel
to actively promote the Company's policies and convey downstream customer
demands and requirements to suppliers, thereby enhancing communication and
overall performance in conflict minerals management.
Conflict Minerals Management
Goertek Inc. adopts the basic policy of "prohibiting the use of conflict minerals," promoting continuous improvement and optimization of conflict minerals management in thesupply chain, and is committed to providing a solid guarantee for the Company's sustainable development and customer trust. The Company has publicly disclosed theConflict-Free Minerals Policy Statementon its official website to avoid contributing directly or indirectly to illegal armed conflicts, human rights violations, environmental destruction, andunethical business practices."The Company does not accept or use gold, tantalum, tungsten, cobalt, tin, and mica minerals originating from conflict-affected areas in the Democratic Republic of the Congoand its neighboring countries, or from regions controlled by non-state armed groups or illegal armed groups."The Company has incorporated theConflict-Free Minerals Commitmentinto its commercial agreements with suppliers to regulate their behavior. It has also establishedmanagement policies such as theSupply Chain Policyand theSupplier Social Responsibility Code of Conduct, requiring suppliers to conduct responsible mineral due diligence onthe minerals used in their products, proving that the sources, processing, and chain of custody of gold, tantalum, tungsten, cobalt, tin, and other metals in their products meetregulatory or customer requirements.Understanding the importance of supply chain transparency and traceability, the Company is gradually building a comprehensive and detailed supply chain traceability system.This system aims to enhance supply chain transparency while ensuring precise tracking and verification of the sources and flows of minerals used in the supply chain. TheCompany requires all component manufacturers to provide compliance information for any conflict metals used in their products and to provide a list of upstream smelters orrefiners (SORs) recognized by the Responsible Minerals Initiative (RMI), ensuring that their products do not use any 3TG (Tantalum, Tin, Tungsten, and Gold) metals or mineralsthat are not recognized.Based on its business structure, the Company does not directly purchase raw materials from smelters or refiners. Not all products manufactured by the Company involve 3TG,cobalt, mica, or other minerals. For products that do involve these minerals, the Company can achieve 100% traceability of their country of origin, ensuring managementtransparency and traceability.Supply Chain Due Diligence
The Company strictly follows theOECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areasand the RMI due diligencereporting process. It conducts continuous and in-depth due diligence on the metal raw materials and auxiliary materials involved in its business operations, enabling the Companyto clearly understand key information about the sources and chain of custody of conflict minerals.
Require suppliers to complete CMRTs and EMRTs,and require SORs from a list of ResponsibleMinerals Assurance Program (RMAP) certifiedSORs identified by RMI.
The list of SORs collected through the CMRTand EMRT is compared to the RMAP list todetermine if the SORs have been validated asconflict free. the results of the RMAP review arereflected in the list of SORs that have beenvalidated by RMI.
Suppliers that do not obtain RMAP certificationand do not complete the corrective actionrequirements within a limited period of time willbe removed from the supplier pool.
For suppliers involving cobalt and mica, the Company initiated theEMRT investigation with a100% coverage rate, and theresponse rate from suppliers was
90.3%.
This year,The Company identified suppliers involving 3TG and distributedthe CMRT questionnaire to100% of them, achieving a100% response rate from suppliers.
The percentage of suppliers with all smelters andrefiners having carried out RMAP certification was
92.6%.
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Fulfilling Social ResponsibilityGoertek Inc. fulfills its social responsibility with all its heart, devotes itself to the development of social welfare undertakings, and focuses on the theme of “Together” to make efforts in various dimensions, such as community public welfare, employee volunteering, and ruralrevitalization, and gives full play to the advantages of the Company's organization, scientific research and other strengths, so as to fully create a social responsibility system with participation of all people and sustainable development. Let the warmth and power of publicwelfare and charity spread everywhere in the society, and contribute to building a better society.Community WelfareAs a responsible enterprise, Goertek Inc. has always insisted on the deep integration of its own values and social values. This year, the Company continued to carry out “6·25 Public Welfare Day”, scholarships and other public welfare and charitable activities, and deeplyparticipated in national fitness activities such as the Goertek-2024 Weifang Marathon, innovated forms, enriched the content, and actively linked to more social resources, to build a platform for the enterprise's employees and the community to carry out and participate inpublic welfare and charitable and voluntary activities, and to continue to promote the flourishing of community welfare undertakings. Continuously promote the vigorous development of community welfare undertakings. By the end of 2024, the Company had placed morethan 3,400 underprivileged people and 200 unemployed people into employment.
In this year's “6·25 Public Welfare Day”, Goertek Inc. actively fulfilled its social responsibility and showed its corporatecommitment. During the event, the Company collected picture books from all employees, aiming to send knowledge andwarmth to special children groups. At the same time, Goertek Inc. once again donated RMB 200,000 to the “Goertek CharityFund” of Weifang Charity Federation, injecting Goertek's energy into the development of public welfare undertakings. TheCompany sent VR headset, 3D printing pens and other gifts to the children in the auxiliary school to enrich the children'slearning life and further promote the deep integration of science and technology with special education.
Guard the Starlight Together, “6·25 Public Welfare Day” Takes Care of Special Children Groups
In October 2024, the Goertek-2024 Weifang Marathon started with over 15,000 professional marathon runners andenthusiasts participating in the race, and Goertek and Weifang once again joined hands to create “Health and Beauty”.Following the success of the Goertek-The First Weifang Marathon, the Goertek-2024 Weifang Marathon has become acategory A1 event certified by the China Association of Athletics Federations (CAAF), and has officially joined the Good LuckShandong - Marathon City League platform. For this year's race, the Company not only sent out a sincere invitation to morechildren from schools in remote areas, but also joined hands with the race operator to carry out pre-race training campactivities, so as to allow more sports-loving ordinary citizens to participate in depth.
The symphony of sports and technology, Goertek supports “2024 Weifang Marathon”
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In 2024, Goertek Inc. took active steps to build six new “Goertek Growth Stations”, so that more schools in townships could have access to more high-quality science and technology educationresources. Among them, Goertek volunteers supported the western mountainous areas by building three new “Goertek Growth Stations” in Wen County, Longnan, Gansu Province. By the end of2024, the total number of “Goertek Growth Stations” reached 20, benefiting more than 6,000 students and teachers.In order to help enrich the scientific and technological education resources in township schools, the Company's volunteers kept up with the cutting edge of science and technology, and upgradedthe special courses such as AI and XR, making the contents of the courses lively and interesting. The upgraded science and technology courses stimulated the children's strong interest in scienceand technology, and some of them showed enthusiasm and potential for exploration.The Company carefully planned and carried out the “First Lesson at the Beginning of the School Year - Walking with AI” return visit activity, exchanging AI technology with the children, guiding themto look forward to the future world of science and technology, and stimulating the children's vision of science and technology innovation.The Company invited teachers and students from some of the station to participate in the Goertek-2024 Weifang Marathon, campground outdoor development and other study activities, whichenhanced the physical fitness of teachers and students and their teamwork ability, and further enriched the high-quality educational resources in remote rural areas.
“Goertek Growth Station” in the West, AI Draws a Bright FutureVolunteer Activities
Goertek Inc. has always been adhering to the concept ofactively fulfilling its social responsibility, and has beenvigorously encouraging its employees to participate invarious volunteer activities. Every year, the Company carriesout volunteer activities such as “Home Cleaning”, “CivilizationAdvocacy”, “Respecting the Elderly and Helping the Elderly”,etc., giving full play to its role as an exemplary leader andpromoting the normalization of volunteer services. At thesame time, relying on the “China Volunteer Service Network”and the internal innovation platform “Goertek CharityPlatform”, the Company further promotes the systematicand project-oriented operation of public welfare and charityand volunteer activities. By the end of 2024, the Companyhad built 30 public welfare teams, carried out more than 90volunteer services, involving more than 1,500 people and atotal of 2,360 hours of public welfare.In 2024, the Company was awarded the honor of the mostcaring enterprise from 2018 to 2023 by Weifang Civil AffairsBureau and Weifang Charity Federation, and at the sametime, it was listed on the Weifang Charity List and ranked atthe top.Rural RevitalizationGoertek Inc. actively responds to the call to consolidate andexpand the results of poverty alleviation andcomprehensively promotes the revitalization of thecountryside, and through the enterprise's own influence callson employees, stakeholders and people from all walks of lifeto participate in this topic.Starting from 2019, the Company has continued to payattention to the growth of children in rural areas, carried outthe “Goertek·We Make It Together Program”, andconstructed the “Goertek Growth Station”. The Company hasissued a call to all employees to carry out a variety of publicwelfare activities in rural schools with weak educationalresources, and to provide children with AI, XR and otherspecial courses centered on cutting-edge technologies in thefield of science and technology. After the completion of thestation, the Company insisted on carrying out special returnvisits such as “the first lesson of the school year - walkingwith AI”, and continued to invite some teachers and studentsto participate in research and study activities.
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Appendix 1: Key Performance IndicatorsEnvironmental KPIs
Unless otherwise specified, the statistical scope of environmental data is the Weifang, Qingdao, Rongcheng, Dongguan and Vietnam factories.
The statistics cover the Company's factories in Weifang, Rongcheng, Dongguan and Vietnam. The statistics are calculated in accordance with theGuidelines on Accounting Methods and Reporting of Greenhouse Gas Emissions for Enterprises in Other Industrial Sectors, theSixth Assessment Report of the IPCCpublished by the IntergovernmentalPanel on Climate Change (IPCC), and the National Standard of the People's Republic of China, theGeneral Principles for Calculation of Comprehensive Energy Consumption (GB/T 2589-2020).
These statistics cover the Company's factories in Weifang, Rongcheng, Dongguan and Vietnam. The types of energy consumption include natural gas, liquefied petroleum gas, diesel fuel, gasoline, electricity, steam and high temperature water. This statistical data is based on the National Standard of the People's Republic of China theGeneral Rulesfor Calculating Comprehensive Energy Consumption (GB/T 2589-2020),Gasoline for Motor Vehicle Use (GB 17930-2016), diesel fuel inspection report of the plant in Vietnam, and the “Enterprises in Other Sectors of the Industry - Guidelines on Greenhouse Gas Emission Accounting Methods and Reporting”.
Key KPI Indicators2024UnitGreenhouse Gas (GHG) Emission
Total GHG Emission482,085tCO2eDirect GHG emission (Scope 1)37,104tCO2eIndirect GHG emission (Scope 2)444,981tCO2eGHG Emission Intensity per Unit of Business Income
4.78
tCO2e/1 million RMBTotal GHG emission reductions17,422tCO2eGHG emissions reduced through abatement measures
Retrofit equipment9,571tCO2eImprovement of processes7,851tCO2eGHG emissions reduction (Scope 1)
tCO2eGHG emissions (Scope 2)17,167tCO2eEnergy use
Total Energy Consumption908,652MWhEnergy consumption intensity per unit of businessincome
9.00
MWh/1 million RMB
Key KPI Indicators2024UnitConsumption by type of energyTotal direct energy consumption33,904MWhGasoline consumption243,387LiterDiesel consumption29,738LiterNatural gas consumption2,858,339Cubic MeterLiquefied petroleum gas consumption234,920KgTotal Indirect Energy Consumption874,748MWhElectricity817,803MWhPurchased non-renewable electricity603,817MWhPurchased renewable electricity161,172MWhSelf-generated renewable electricity52,814MWhSteam29,990TonsHigh temperature water124,848GJTotal Renewable Energy Consumption213,986MWh
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Key KPI Indicators2024UnitAir Pollutant Emissions
Suspended particles and particulate matter (PM)
0.64
TonsSulfur oxides (SOx)
0.15
TonsNitrogen oxides (NOx)
1.06
TonsVolatile organic compounds (VOCs)
6.98
TonsWater Pollutant Emissions
Ammonia Nitrogen (NH3-N)
1.55
TonsChemical Oxygen Demand (COD)
16.65
TonsTotal Nitrogen (TN)
6.67
TonsTotal phosphorus (TP)
0.001
Tons
Key KPI Indicators2024Unit
Waste GenerationTotal Waste Generation52,886TonsHazardous Waste Generation2,196TonsAmount of non-hazardous waste generated50,690TonsTotal amount of hazardous waste generated per unit of businessrevenue
0.02Ton/1 million RMBTotal amount of non-hazardous waste generated per unit of businessrevenue
0.50Ton/1 million RMBAmount of waste recycled47,482TonsConsumption of renewable resources46,778TonsConsumption of renewable resources as a proportion of totalconsumption of corresponding resources
88%Water WithdrawalTotal water withdrawal from all operating sites
6,090,052Tons
The statistics cover the Company's factories in Weifang, Qingdao, Rongcheng and Dongguan.
The statistics cover the Company's factories in Weifang, Qingdao, Rongcheng and Dongguan.
The statistics are all from third-party facilities/municipalities.
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Indirect employee turnover = number of indirect employees lost during the year / (number of indirect employees at the end of the year + number of indirect employeeslost during the year)
Social KPIs
Key KPI Indicators2024UnitEmployee EmploymentTotal number of employees81,819PersonEmployees by genderMale50,721PersonFemale31,098PersonEmployees by Age Group
Under 30 years old41,233Person30 to 49 years old40,319Person50 years old and above267PersonIndirect employee turnover rate
13.32%
Key KPI Indicators2024Unit
Employee Rights and BenefitsTotal number of employees entitled to parental leave5,293PersonNumber of male employees3,614PersonNumber of female employees1,679PersonTotal number of employees who actually took parental leave4,292PersonNumber of male employees2,858PersonNumber of female employees1,434PersonTotal number of incidents of discrimination0CaseHealth and SafetyAmount invested in employee injury insurance2,39710,000 RMBCoverage rate of workers' compensation insurance100%Amount invested in employee workplace safety liability insurance12.5810,000 RMBPercentage of employees receiving regular performance and career development reviews
Male100%Female100%
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Key KPI Indicators2024UnitTraining & EducationNumber of staff training
2,223TimesTraining hours per person
34.45HoursEmployees by Grade GroupMiddle and Senior Staff112,462HoursBasic level Employees
2,706,143HoursBusiness Ethics Related TrainingTotal hours of business ethics-related training73,179HoursMiddle and Senior Level Employees5,947HoursBasic level employees67,232HoursOf which, total hours of anti-bribery and anti-corruption relatedtraining
37,560HoursMiddle- and high-level employees3,188HoursBasic level employees34,372Hours
Key KPI Indicators2024Unit
R&D InnovationAmount of R&D investment4.569Billion RMBAmount of R&D investment as a percentage of revenue4.53%Number of R&D employees12,568PersonRatio of R&D employees15.36%Number of applications for patents of invention in the reporting period2,236PatentsNumber of patents granted during the reporting period1,387PatentsNumber of active patents in the reporting period17,695PatentsSupplier ManagementTotal number of suppliers with whom the Company has transactions
1,178FirmsDomestic814FirmsOverseas364FirmsSocial WelfareHours of volunteer activities
| 561 | Hours |
This statistic is the number of suppliers involved in the purchase amount in the reporting period of 2024
The statistics are the number of offline training
Training hours per person = (total online training hours + total offline training hours)/total number of employees
This statistic includes the Basic level managers and non-management staff.
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Descriptionof use
Goertek Inc. reported the information in the GRI Indicator Index during the reporting period withreference to the GRI standard.GRI 1 UsedGRI 1:Base 2021
GRIStandardsDisclosureChapter(s) in the Report
GRI 2 Strategy, Policies, and Practices2-22Statement on sustainable development strategyChairman’s Statement2-23Policy commitmentsNo major violations2-25Processes to remediate negative impactsStakeholder CommunicationsGRI 2 Stakeholder Engagement2-29Methods of Stakeholder EngagementStakeholder Communications2-30Collective bargaining agreementsPromoting Talent DevelopmentGRI 3 Material Topics3-1Process for identifying substantive issuesStakeholder Communications3-2List of substantive issuesStakeholder CommunicationsGRI 201 Economic Performance201-1
Direct economic value generated and distributed bythe organization
Goertek Inc. 2024 Annual Report201-2
Financial impact of climate change and other risksand opportunities
Addressing Climate Change201-3
Obligated defined benefit plans and other retirementplans
Promoting Talent DevelopmentGRI 203 Indirect Economic Impacts203-1Infrastructure investments and services supportedFulfilling Social ResponsibilityGRI 205 Anti-corruption205-1
Operational sites where corruption risk assessmentshave been conducted
Business Ethics205-2
Communication and training on anti-corruptionpolicies and procedures
Business Ethics, Social KPIs205-3Corruption incidents identified and actions takenBusiness EthicsGRI 206 Anti-Competitive Behavior206-1
Legal actions for anti-competitive behavior, anti-trust,and monopoly practices
Business Ethics
Appendix 2: GRI Standards Index
GRIStandardsDisclosureChapter(s) in the Report
GRI 2 The Organization and Its Reporting Practice2-1Organizational detailAbout the Report2-2
Entities included in the organization's sustainabilityreport
About the Report2-3Reporting period, frequency and contact pointAbout the ReportGRI 2 Activities and Worker2-6
Activities, value chain and other businessrelationships
About the Report2-7EmployeesAbout the ReportGRI 2 Governance2-9Governance structure and compositionCorporate Governance2-10
Nomination and selection of the highest governancebody
Corporate Governance2-11Chair of the highest governance bodyCorporate Governance2-12
Role of the highest governance body in overseeingthe management of impacts
Corporate Governance2-13Delegation of responsibility for managing impactsCorporate Governance2-15Conflicts of interestStakeholder Communications2-16Communication of key concernsStakeholder Communications2-17
Corporate governance of the highest governancebody
Corporate Governance2-18
Performance assessment of the highest governancebody
Promoting Talent Development2-19Remuneration policiesPromoting Talent Development2-20Process to determine remunerationPromoting Talent Development
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GRIStandardsDisclosureChapter(s) in the ReportGRI 302 Energy302-1Energy consumption within the organizationEnvironmental KPIs302-3Energy intensityEnvironmental KPIs302-4Reduction of energy consumptionOptimizing Use of Resource302-5
Reductions in energy requirements of products andservices
Optimizing Use of Resource, Clean EnergyExplorationGRI 303 Water and Effluents303-1Interactions with water as a shared resourceProtecting Ecological Environment303-2Management of water discharge-related impactsProtecting Ecological Environment303-3Water withdrawal Environmental KPIsGRI 304 Biodiversity304-1
Operational sites owned, leased, managed in, oradjacent to, protected areas and areas of highbiodiversity value outside protected areas
Protecting Ecological Environment304-2
Significant impacts of activities, products and serviceson biodiversity
Protecting Ecological EnvironmentGRI305 Emissions305-1Direct (Scope 1) GHG emissionsAddressing Climate Change, Environmental KPIs305-2Energy Indirect (Scope 2) GHG EmissionsAddressing Climate Change, Environmental KPIs305-4GHG Emission IntensityEnvironmental KPIs305-5GHG Emission ReductionsAddressing Climate Change305-7
Nitrogen oxides (NOx), sulfur oxides (SOx) andother significant gas emissions
Environmental KPIsGRI 306 Waste306-1
Waste Generation and Significant Impacts Relatedto Waste
Protecting Ecological Environment306-2
Management of Significant Impacts Related toWaste
Protecting Ecological Environment306-3Waste GenerationEnvironmental KPIsGRI 308 Supplier Environmental Assessment308-1New suppliers screened using environmental criteriaSustainable Supply Chain308-2
Negative environmental impacts inthe supply chainand actions taken
Sustainable Supply Chain
GRIStandardsDisclosureChapter(s) in the Report
GRI 401 Employment401-1New Hire Rates and Employee Turnover RatesKey Performance Indicators401-2
Benefits offered to full-time employees (excludingtemporary or part-time employees) benefits
Promoting Talent Development401-3Parental leavePromoting Talent DevelopmentGRI 403 Occupational Health and Safety403-1
Occupational Health and Safety ManagementSystem
Employee Health and Safety403-2
Hazard identification, risk assessment and incidentinvestigation
Employee Health and Safety403-3Occupational Health ServicesEmployee Health and Safety403-4Occupational Health and Safety ServicesEmployee Health and Safety403-5Worker OHS trainingEmployee Health and Safety403-6Worker health promotionEmployee Health and Safety403-7
Prevention and mitigation ofOHS impacts directly related tobusiness relationships
Employee Health and Safety403-8Workers covered by OHS management systemsSocial KPIs403-9Work-related injuriesSocial KPIs403-10Work-related health issuesEmployee Health and SafetyGRI 404 Training and Education404-1
Average number of hours of training per employeeper year
Social KPIs404-2
Employee skills enhancement programs andtransition assistance programs
Promoting Talent Development404-3
Percentage of employees receiving regularperformance and career development reviews
Promoting Talent DevelopmentGRI 405: Diversity and Equal Opportunity405-1Diversity in Governance Organizations and EmployeesCorporate GovernanceGRI 406:Anti-discrimination406-1Incidents of discrimination and corrective action takenEmployee Rights, Sustainable Supply Chain
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GRIStandards
DisclosureChapter(s) in the ReportGRI 407 Freedom of Association and Collective Bargaining Rights407-1
Operational Sites and Providers That MayBe at Risk
Talent Attraction and RetentionGRI 408 Child Labor408-1
Sites of Operation and Suppliers at Risk for SignificantIncidents of Child Labor
Employee Rights, Sustainable Supply ChainGRI 409 Forced or Compulsory Labor409-1
Sites and suppliers with significant riskof incidents of forced or compulsorylabor
Employee Rights，Protecting Ecological Environment,
Sustainable Supply ChainGRI 413 Local Communities413-1
Operations with local community involvement,impact assessments and development plans
Community Welfare413-2
Operations with actual or potential significantnegative impacts on local communities
Community Welfare, Sustainable Supply ChainGRI 414 Supplier Social Assessment414-1New suppliers screened using social criteriaSustainable Supply Chain414-2
Negative social impacts of supply chains and actionstaken
Sustainable Supply ChainGRI 416 Customer Health and Safety416-1
Assessment of health and safety impacts on productand service categories
Quality First416-2
Health and safety violations involving products andservices
No such incident occurredGRI 417 Marketing and Labeling417-1
Requirements for product and service informationand labeling
Intellectual Property Protection417-2
Breaches involving product and service informationand labeling
No such incident occurred417-3Breaches involving marketingNo such incident occurredGRI 418 Customer Privacy418-1
Substantiated complaints related toinvasion of customer privacy and lossof customer data
Information Security and Privacy Protection
Appendix 3: Index in accordance with
Shenzhen Stock Exchange’sSelf-regulatory Guidelines No.17 for Companies Listed onShenzhen Stock Exchange – Sustainability Report (For TrialImplementation)
DimensionNo.IssueCorresponding ArticleChapter(s) in the Report
Environmental
1Combating Climate ChangeArticles 21 to 28Addressing Climate Change2Pollutant EmissionsArticle 30Optimizing Use of Resource3Waste treatmentArticle 31Optimizing Use of Resource
Ecosystem and Biodiversity
Conservation
Article 32
Protecting Ecological
Environment
Environmental Compliance
Management
Article 33
Protecting Ecological
Environment6Energy UtilizationArticle 35Optimizing Use of Resource7Water UtilizationArticle 36Optimizing Use of Resource8Circular EconomyArticle 37Optimizing Use of Resource
Social
9Rural RevitalizationArticle 39
Fulfilling Social
Responsibility10Social ContributionArticle 40
Fulfilling Social
Responsibility11Innovation DriveArticle 42
Leading Scientific andTechnological Innovation12Science and Technology EthicsArticle 43
Leading Scientific andTechnological Innovation13Supply Chain SecurityArticle 45Sustainable Supply Chain14Equal Treatment for SMEsArticle 46Sustainable Supply Chain
Product and Service Security
and Quality
Article 47Quality First
Data Security and Customer
Privacy Protection
Article 48
Information Security and
Privacy Protection17EmployeesArticle 50
Promoting Talent
DevelopmentSustainabledevelopment-relatedgovernance
18Due DiligenceArticle 52Sustainable Supply Chain19Stakeholder CommunicationArticle 53ESG Management20Anti-Bribery & CorruptionArticle 55Business Ethics21Anti-Unfair CompetitionArticle 56Business Ethics
Websitehttp://www.goertek.com
AddressNo.268 DongfangRoad,
High-Tech IndustrialDevelopment District,Weifang, Shandong, 261031,
P.R.China
Postal Code261031
Telephone0536-3055688
Emailgoertekcsr.list@goertek.comir@goertek.com